Barratt Redrow on track after stable quarter

(Sharecast News) - Barratt Redrow said in an update on Wednesday that it remained on track to deliver full-year home completions in the range of 16,800 to 17,200, including around 600 joint venture homes, as it reported a stable trading performance in the 13 weeks to 30 March. The FTSE 100 housebuilder also noted encouraging progress in integrating Redrow following last year's merger.

It said its net private reservation rate excluding private rental sector and multi-unit sales rose slightly to 0.62 per active outlet per week, up from 0.61 a year earlier.

Including those bulk sales, the rate was 0.63, down from 0.65, reflecting reduced private rented sector and multi-unit activity in the period.

The group completed 3,717 homes, marginally ahead of the 3,662 delivered a year earlier, bringing year-to-date completions to 10,563.

Forward sales volumes fell 10.1% year-on-year to 10,245 homes, but the value of the private order book rose 3.3% to £2.24bn due to modest price growth and sales mix.

Overall forward sales, including joint ventures, stood at £3.14bn, down from £3.20bn, and the group said it was now 93% forward sold for the 2025 financial year.

The Redrow integration was meanwhile progressing well, the company said, with nine divisional office closures either completed or underway and nine planning applications submitted for incremental sales outlets.

Barratt Redrow said it was targeting £100m in cost synergies from the merger and expects to open 45 additional outlets by the end of the 2028 financial year.

Procurement and system integration efforts were also gathering pace.

The company reported a net cash position of approximately £508m as of 30 March, with its £700m revolving credit facility undrawn.

A £50m share buyback programme began in February, with £17m executed by the end of March.

While macroeconomic uncertainty had increased, the firm said it was encouraged by the UK government's ongoing commitment to supporting housebuilding and reiterated its confidence in delivering sustainable growth.

"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," said chief executive officer David Thomas.

"The operational integration of Barratt and Redrow is nearing completion, and we are making good progress on both cost and revenue synergies.

"In addition to realising the power of our differentiated brands, we are also focused on unlocking the full potential of our enhanced land position."

That had been further supported by the government's proposed planning reforms, Thomas added.

"The fundamentals for our industry remain strong, with a clear need for new homes across all tenures and a national focus on accelerating delivery.

"We have the scale, industry partnerships and unrivalled credentials in quality, service and sustainability required to capture the opportunities ahead and deliver growth."

At 0817 BST, shares in Barratt Redrow were up 1.15% at 432.6p.

Reporting by Josh White for Sharecast.com.