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Barratt Redrow Delivers Solid Trading Performance Amid Integration Progress

Why we think this is good

The trading update from Barratt Redrow plc highlights a solid performance, with the company remaining on track to deliver its full-year guidance. The integration of Barratt and Redrow is progressing well, with cost and revenue synergies being realized. The balance sheet remains strong, and the company has commenced a share buyback programme. However, the overall private reservation rate, including PRS and other multi-unit sales, is slightly lower compared to the prior year. While the fundamentals for the industry remain strong, the macroeconomic uncertainty has increased, which could impact future performance.

Key Points

  • Net private reservation rate, excluding PRS and other MUS, 1.6% higher
  • Net private reservation rate, including PRS and other MUS, 3.1% lower
  • On track to deliver 16,800 to 17,200 total home completions for the full year
  • Redrow integration progressing well, with cost and revenue synergies being realized
  • Balance sheet remains strong, with net cash of around £508m
  • £50m share buyback programme commenced, with £17m completed

Summary

The major housebuilder reports solid trading performance, with progress on the Redrow integration and a strong balance sheet, but faces a slightly lower private reservation rate.

Barratt Redrow plc has delivered a solid trading performance in the latest 13-week period, with the company remaining on track to meet its full-year home completion guidance of between 16,800 and 17,200 homes, including around 600 JV completions. The integration of Barratt and Redrow is progressing well, with nine divisional office closures completed or ongoing, and the wider integration programme on track to deliver the increased target of £100m of cost synergies. The company's balance sheet remains strong, with net cash of around £508m at the end of the period and year-end net cash expected to be between £0.5bn and £0.6bn. Barratt Redrow has also commenced a £50m share buyback programme, with £17m completed in the period. However, the overall private reservation rate, including PRS and other multi-unit sales, is slightly lower compared to the prior year, reflecting lower PRS and MUS activity during this period.

Key Dates

15 July 2025
FY25 full year trading update
GENERAL UPDATE