Housebuilder Redrow signalled that it could be ready to enter the takeover market after reporting dampened full-year results this week.

Redrow, which has itself been touted as a takeover or merger target, reported no change in its pre-tax profit since last year, at 拢120.5m. This is a further sign of difficult conditions in the housing market. Margins were also down slightly from 17.5% to 17.1%, although legal completions rose by 1.9% to 4,823 homes. Turnover grew 3.3% to 拢795.7m.

David Arnold, group finance director, said interest rate rises and the credit crunch on mortgage lenders were affecting the housing market. He said: 鈥淭here is evidence that credit market turbulence has dampened consumer demand and the housing market generally.鈥�

However, Arnold said the company was 鈥渨ell placed for the current year鈥� and had strong forward sales. And with competition for land banks at a premium, he hinted that Redrow may enter the acquisitions market.

He said: 鈥淲e are focused on growing Redrow and will look at any transaction, whether it is corporate or an investment.鈥�

Meanwhile, rival Bovis Homes, also touted as a takeover target, sounded another note of caution about the market, despite posting solid interim results for the six months to 30 June. Its pre-tax profit rose 10% to 拢58.4m while turnover was up 3.8% at 拢259.9m. However Malcolm Harris, chief executive, warned that consumers had become cautious since the rate rises, with buyers taking longer to decide whether to purchase a home.

A city analyst said: 鈥淔or both companies, the next six months will be critical, in what may be a wobbly market.鈥�

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