Barratt Redrow plc (LON:BTRW) has announced its 26-week results for the period ended 28 December 2025
Resilient performance; focused on disciplined execution as Redrow integration completes
Commenting on the interim results, David Thomas, Chief Executive of Barratt Redrow plc, 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.
“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.”
Financial highlights
| · | Resilient operational performance delivering 7,444 total home completions, 4.7% ahead of the 7,107 aggregated total home completions in the comparable period. |
| · | Adjusted operating profit, before the impact of PPA adjustments1, at £210.2m, 0.3% below the £210.8m adjusted aggregated operating profit in the comparable period and margin at 8.0% (HY25: 8.9%A and 9.3%R). |
| · | Adjusted profit before tax and the impact of PPA adjustments1 at £199.9m, 13.6% below the £231.4mA adjusted aggregated profit before tax in the comparable period. |
| · | Statutory profit before tax of £156.2m (HY25: £113.4mR and £85.0mA) with a reduced impact from Redrow transaction and integration costs and purchase price allocation adjustments. |
| · | Redrow integration progressing well, delivering in line with the Group’s £100m cost synergy2 target and strong progress on revenue synergy sites through planning. |
| · | Strong balance sheet, with net cash of £173.9m, after dividends and share buybacks. |
Operational highlights
| · | Underlying net private reservation rate of 0.55, compared with 0.54A for the aggregated performance in the comparable period. The overall net private reservation rate of 0.57, compared with 0.59, reflecting fewer private rental sector and other multi-unit reservations in the period. | ||
| · | Continued industry leadership on quality, customer satisfaction, and sustainability: | ||
| – | 115 NHBC Pride in the Job Awards across the combined Group, maintaining our position ahead of any other housebuilder for 21 consecutive years; | ||
| – | Rated ‘5 Stars’ by our customers in the HBF customer satisfaction survey for 16 consecutive years; and | ||
| – | Recognised by CDP as a Climate A List organisation for a fourth successive year | ||
Current trading and outlook
| · | Our net private weekly reservation rate from 29 December 2025 to 1 February 2026 was 0.59 (2025: 0.60), with no contribution from private rental sector and other multi-unit sales in either period. |
| · | Forward sales3 at 1 February 2026 were 11,168 homes (2 February 2025: 10,903 homes) at a value of £3,407.8m (2 February 2025: £3,350.3m) with 7,277 homes of these total forward sales either exchanged or contracted (2 February 2025: 7,702 homes). |
| · | The FY26 out-turn remains dependent on sales activity through the Spring selling season. Based on our forward sold position and solid reservation activity, we expect to deliver total home completions of 17,200-17,800 in FY26, including c. 600 JV completions, in line with previous guidance. |
| · | Full year adjusted profit before tax and the impact of PPA adjustments, but after the reclassification of legacy building safety provision finance charges as adjusted items, is expected to be within the current range of consensus estimates4. |
Notes:
(1) In addition to the Group using a variety of statutory performance measures, alternative performance measures (APMs) are also used. Definitions of APMs and reconciliations to the equivalent statutory measures are detailed in the Glossary and Definitions. During HY26, the Group has reconsidered the presentation of legacy property provision finance charges. These are now presented as an adjusted item. This change has resulted in an increase in adjusted profit before tax in the period of £19.6m. The HY25 comparatives have been restated with an impact of £18.4m, of which £17.1m relates to previously reported legacy property imputed interest finance costs and £1.3m relates to an additional PPA adjustment reflecting completion of the fair value position with respect to Redrow plc. These adjustments apply to reported and aggregated results. The Group continues to include APMs which allow for the assessment of the performance of the combined Group, before the impact of PPA adjustments. Measures before PPA adjustments are presented as if the assets and liabilities recognised, as a result of the acquisition of Redrow plc, had been initially measured at their carrying values in the underlying Redrow financial records, rather than at their fair values in accordance with IFRS. Net cash definition is included in Note 12.
(2) Synergies: Integrating the Barratt David Wilson and Redrow housebuilding operations results in cost reductions in three main areas:
(1) Optimisation of the divisional office structure, reducing the number of divisions from 41 to 32;
(2) Consolidation of central and support functions, including Board, senior management, compliance and third-party costs; and
(3) Harmonisation of purchasing terms and additional rebates related to volume for the enlarged business, focused primarily on direct materials purchases.
(R) Reported denotes a Barratt Redrow plc reported metric based on the reported performance of the Barratt Redrow plc in the comparable reporting period, with metrics for the 26 weeks to 29 December 2024 restated for the final assessment of the fair values of assets and liabilities recognised through the acquisition of Redrow, as detailed above.
(A) Aggregated denotes an aggregated metric based on the reported performance of Barratt Redrow plc in the comparable reporting period from 1 July 2024 to 29 December 2024 including the performance of the legacy Redrow plc group (“Redrow Group”) 1 July 2024 to 21 August 2024, the period prior to acquisition, to provide comparability on operational and financial performance.
Redrow Group data for the period 1 July 2024 to 21 August 2024 is based on Redrow plc’s standalone accounting policies and therefore excludes any impact of policy alignments made since the acquisition. The impact of policy alignment is not material. Aggregated adjusted measures are also presented, prepared on the same basis. The aggregated value comparatives have not been audited or reviewed by Barratt Redrow plc’s auditors. No adjustments relating to legacy property provision finance charges have been made to Redrow plc’s standalone results included in the aggregated comparative for the period 1 July 2024 to 21 August 2024.
(3) Including JVs in which the Group has an interest.
(4) The company compiled consensus range for FY26 adjusted profit before tax on 10 February 2026 was £558m to £617m excluding the impact of purchase price allocation adjustments. This range does not reflect the Group’s reclassification of legacy property provision non-cash finance charges as an adjusted item finance charge.
Note on forward looking statements:
Certain statements in this announcement may be forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Accordingly undue reliance should not be placed on forward looking statements. Unless otherwise required by applicable law, regulation or accounting standards, the Group does not undertake to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.
There will be a results meeting at UBS, 5 Broadgate, London, EC2M 2AT at 8.30am today.
The results presentation will also be webcast live with the Q&A. Please register and access the webcast using the following link:
https://investorbrand.brunswickgroup.com/Barratt-Redrow-plc-HY26-Results/en
An archived version of the results webcast will also be available on our website later this afternoon and further copies of this announcement can be downloaded from the Barratt Redrow plc corporate website at www.barrattredrow.co.uk or by request from the Company Secretary’s office at: Barratt Redrow plc, Barratt Redrow House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.
