11th Feb 2026 09:42
(Alliance News) - Barratt Redrow PLC on Wednesday said it had dealt with "a challenging period of uncertainty prior to the budget in late November" as it posted a climb in revenue and housing completions.
The Coalville, Leicestershire-based housebuilder reported a "resilient" first-half performance, with statutory pretax profit rising to GBP156.2 million in the 26 weeks to December 28 from GBP113.4 million reported a year prior.
Adjusted pretax profit before the impact of purchase price allocation adjustments edged down 0.3% to GBP210.2 million from GBP210.8 million on an aggregated basis.
The company declared an interim dividend of 5.0 pence per share, down 9.1% from 5.5p a year prior.
Revenue grew 11% to GBP2.63 billion from GBP2.38 billion aggregated and GBP2.28 billion reported, as housing completions rose 4.7% to 7,444 from 7,107 aggregated.
Barratt Redrow said: "The increase in private home completions reflected the strength in our opening forward order book position despite the reduced level of sales outlets across the period, and our deliberate trading position to drive reservations during the more challenging period of uncertainty prior to the budget in late November 2025. The improvement in affordable completions was in line with our expectations and reflected the stabilised affordable order book entering FY26, an improved funding backdrop for affordable housing providers and our close relationships with several key affordable housing providers for whom we are a partner of choice."
Barratt Redrow said it completed the first tranche of its GBP100 million annual share buyback programme in the first financial half, as it bought back 13.2 million shares at an average price of 379 pence at a total cost of GBP50.4 million, which includes fees. The firm also plans a share buyback of GBP50 million in the second half which ends in June.
Net cash at December 28 totalled GBP173.9 million, down 62% from GBP458.9 million a year earlier.
The net weekly private reservation rate between December 29 and February 1 was 0.59, compared with 0.60 a year prior, while forward sales at February 1 increased to 11,168 homes from 10,903, with a value of GBP3.41 billion.
Barratt Redrow expects full-year 2026 home completions of 17,200 to 17,800, in line with previous guidance, and anticipates adjusted pretax profit for the year to be within the current consensus range.
Average sales outlet movement is expected broadly flat on financial 2025, in line with Barratt Redrow's guidance. For financial 2027, the company said: "The combination of organic outlet growth and the opening of Redrow synergy sales outlets, is expected to create an average sales outlet position of between 425 and 435 active sales outlets, including joint ventures."
Chief Executive David Thomas said: "During the first half we delivered a resilient performance in a subdued market while making strong progress integrating Redrow. As that integration nears completion, our focus is on disciplined execution. We are embedding our proven operating model across the enlarged group, delivering operational excellence, strengthening efficiency, and positioning Barratt Redrow to deliver volume growth, margin progression, and capital returns through the cycle."
He added: "With a strong land bank, solid forward sales and synergy delivery in line with our targets, we are well positioned to deliver sustainable medium-term growth. However, while progress made on planning reform is encouraging, a stable and supportive demand environment is essential to enable increased delivery at scale across the sector."
Barratt Redrow shares fell 5.5% to 367.70 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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