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Highlights
- Home Completions Up: 6,846 homes completed in HY24, with adjusted pre-tax profit of £167.1m.
- Stronger Sales Activity: Net private weekly reservation rate rose 33% to 0.60 from 0.45 in the prior period.
- Redrow Integration Progress: £100m in cost synergies expected, with nine divisional office closures completed.
Barratt Redrow plc (LSE:BTRW), the newly merged housebuilding giant, has delivered a strong operational and financial performance in the first half of the 2024/25 financial year. The company completed 6,846 homes, up from 6,171 in the previous period, while achieving an adjusted pre-tax profit of £167.1m.
The private weekly reservation rate surged by 33% to 0.60, indicating stronger demand and buyer confidence. The company credited efficiencies from its Redrow acquisition, with integration progressing well and £100m in cost synergies on track.
Financial Performance & Strategic Growth
- Redrow Transaction Costs: Adjusted items from the merger totalled £49.9m, with no additional building safety remediation charges this period.
- Strong Cash Position: Net cash of £458.9m, despite a £170.5m final dividend payout and £332m investment in land and development.
- Dividend Growth: Interim dividend raised 25% to 5.5p per share, supported by Redrow’s contributions.
- Full-Year Expectations: Adjusted pre-tax profit is forecasted at the upper end of market expectations.
Market Outlook & Forward Sales
- Strong Forward Sales Pipeline: 10,903 homes under forward sales, valued at £3.35bn.
- Full-Year Completions Target: Barratt Redrow aims to deliver 16,800–17,200 homes in FY25, including 600 joint venture completions.
- Spring Market Watch: The second-half performance hinges on market conditions during the upcoming Spring selling season.
