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Barratt Redrow Reports 14% Underlying Profit Fall, Keeps Full-Year Guidance

Management says hitting guidance now hinges on a stronger spring selling season.

Overview

  • Adjusted pre-tax profit for the half year fell to £199.9 million, even as completions rose 4.7% to 7,444 homes.
  • Statutory pre-tax profit nearly doubled to £156.2 million, reflecting the absence of prior-year Redrow integration charges.
  • The company reaffirmed guidance for 17,200–17,800 completions and adjusted full-year profit of £558m–£617m.
  • Reservation trends signaled softer private demand, with PRS reservations down to 4% and part-exchange up to 23%, though weekly sales per site have ticked up to about 0.59 since January.
  • Integration of Redrow is close to completion with more than £30 million of cost synergies delivered in H1 and a further ~£50 million expected this year, as shares fell and the interim dividend was cut 9–10% to 5p.