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Barratt Redrow PLC on Wednesday reported annual profit ahead of its expectation, but home completions below its outlook as it grapples with a ‘tough market’. The Coalville, Leicestershire-based housebuilder said its pretax profit in the year to June 29 amounted to £273.7 million, which would be a 61% rise from the £170.5 million Barratt Developments reported alone in the year prior, but down by a quarter from £363.2 million when including what the legacy Redrow also achieved. A combination of Barratt and Redrow was sealed in October 2024. Revenue for the year just ended declined 2.0% to £5.58 billion from the £5.69 billion the duo had achieved combined in the year prior, but is up 34% from the £4.17 billion reported by Barratt alone. Barratt Redrow’s posted adjusted pretax profit of £488.3 million, or £591.6 million before purchase price adjustments. Back in July, it predicted an adjusted pretax profit before PPA in line with the consensus of £582.6 million. Total home completions were 16,565, down from 17,972 achieved by Barratt and Redrow together in the prior year, but up from 14,004 from Barratt alone. ‘We have delivered a solid performance in a tough market, with adjusted profits ahead of expectations despite home completions coming in slightly below our guided range. The acquisition of Redrow is transformative for the group, and I am pleased with the progress we have made on delivering synergies ahead of our targets and executing a successful integration, which is now largely complete. I’d like to thank our employees, subcontractors and supply chain partners for the huge contributions they made to our performance this year,’ Chief Executive David Thomas said. ‘While the housing market remains challenging and we anticipate limited growth in FY26, the long-term fundamentals of the sector remain compelling.’ The company lifted its total dividend by 8.6% to 17.6 pence per share from 16.2p. It expects home completions between 17,200 and 17,800 in the new year. The firm added: ‘This also assumes a normal autumn selling season, our current expectation, however the extended period through to the budget and related uncertainties around general taxation and that applicable to housing, has introduced additional risk.’ Looking ahead, CEO Thomas said: ‘While the housing market remains challenging and we anticipate limited growth in FY26, the long-term fundamentals of the sector remain compelling. We have a unique offering, with three distinct leading brands with a strong land position and balance sheet and a clear strategy to deliver long-term, sustainable growth and 22,000 homes a year in the medium-term. In the meantime, it is vital that government policy is focused on reforming the planning system, removing barriers to investment and supporting purchasers, particularly first-time buyers, if the sector is to build the homes the country needs.’ Chief Financial Officer Mike Scott cautioned: ‘Homebuyer confidence does remain fragile, reflecting uncertainties around the wider economy and taxation, and mortgage rates remain elevated compared to recent years but there remains a long-term under-supply of new homes and we continue to see solid mortgage market competition and availability.’ Barratt Redrow shares rose 0.6% to 368.20 pence each on Wednesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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