Barratt Redrow PLC

F:3BA

Resilient Results: Barratt Redrow delivered a resilient operational and financial performance in a subdued housing market, completing 7,444 homes and maintaining a strong balance sheet.

Synergy Progress: Nearly all of the GBP 100 million targeted cost synergies from the Redrow integration are confirmed, with GBP 30 million realized in the half and full delivery on track.

Lower Profits & Margins: Adjusted profit before tax was down 13.6% to GBP 200 million due to higher interest costs and lower JV profits; gross margin fell by 200bps to 15%.

Solid Cash & Dividends: The group maintained a solid net cash position, paid GBP 172 million in dividends, and executed GBP 50 million in share buybacks.

Completions & Guidance: Full-year completion guidance for FY '26 is unchanged at 17,200–17,800 homes, with pricing expected to be broadly flat and build cost inflation around 2%.

Market Outlook: Consumer confidence remains weak but has improved since the budget; management remains cautiously optimistic about demand and sees further opportunities from government support.

Outlet Expansion: A major outlet expansion is planned for FY '27, enabled by the existing land bank and synergy sites, targeting 425–435 average outlets.

Cost & Efficiency Focus: Ongoing focus on optimizing capital employed, controlling costs, and leveraging procurement and operational synergies.