16th Apr 2025 08:59
(Alliance News) - Barratt Redrow PLC on Wednesday said it remains on track to meet its full-year homebuilding targets, despite a slight decline in forward sales, as it reported a "solid" reservation performance and progress on integrating the Redrow business.
The Leicestershire, England-based housebuilder formed by the 2024 merger of Barratt Developments and Redrow said it expects to deliver between 16,800 and 17,200 total home completions in financial 2025, including around 600 joint venture units. The company's financial year ends on June 30.
Forward sales as of March 30 were valued at GBP3.14 billion, down 1.9% from GBP3.20 billion a year earlier. It is 93% forward sold for the full year, slightly below 95% at the same point in 2024.
Total home completions in the 13 weeks to March 30 rose to 3,717, up from 3,662 a year earlier on an aggregated basis. The private reservation rate excluding build-to-rent and other multi-unit sales edged up to 0.62 per site per week from 0.61.
Chief Executive David Thomas said: "Our customer focus and unique offering across the Barratt, David Wilson and Redrow brands have continued to drive homebuyer demand and performance this quarter, leaving us well placed to deliver housing volumes in line with our full-year guidance."
Barratt Redrow said the integration of Redrow is progressing well, with nine divisional office closures completed or underway and nine planning applications submitted for incremental outlets from the combined land bank. It reiterated its GBP100 million cost savings target from the merger.
The company held net cash of around GBP508 million at the end of March and expects year-end net cash between GBP500 million and GBP600 million. It has bought back GBP17 million worth of shares so far under its GBP50 million share repurchase plan.
Looking ahead, Barratt Redrow said build cost-inflation remains broadly flat for 2025 and is expected to remain low next year. It welcomed the UK government's recent planning reform proposals and reaffirmed its medium-term goal of delivering 22,000 homes per year.
Shares in Barratt Redrow were up 1.0% to 432.16 pence in London on Wednesday morning. The wider FTSE 100 index was down 0.6%.
By Eva Castanedo, Alliance News reporter
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