Barratt Redrow hailed a “solid” performance as profit beat expectations, despite home completions not reaching forecast levels.
The housebuilder, which was created when Barratt acquired Redrow in August 2024, turned over £5.6bn in the 52 weeks to 29 June 2025, newly published results show.
Revenue for the combined firms was not stated for the comparable period in the prior year, although Barratt’s reached £4.2bn while Redrow’s previous half-year results showed it turned over £756m from 3 July 2023 to 31 December 2023.
Their merger was agreed in February 2024, with the aggregate turnover of the firms previously stated as £7.4bn in the 2023 financial year, with a combined 22,642 homes completed.
Home completions stood at 16,565 in the latest period, down from an aggregate 17,972 in the 2024 financial year. This was described in the results as “slightly lower” than the new-look company had expected.
Pre-tax profit hit £273.7m in the period, compared with Barratt’s £170.5m in the prior year. Redrow’s profit was £84m in the six months to 31 December 2023.
The housebuilder said its adjusted profit before tax figure, before the impact of the acquisition fair value adjustments, was slightly ahead of expectations, at £591.6m compared with an aggregate £585.7m in the prior financial year.
Barratt Redrow chief executive David Thomas said:“We have delivered a solid performance in a tough market, with adjusted profits ahead of expectations despite home completions coming in slightly below our guided range.
“The acquisition of Redrow is transformative for the group, and I am pleased with the progress we have made on delivering synergies ahead of our targets and executing a successful integration, which is now largely complete. I’d like to thank our employees, subcontractors and supply chain partners for the huge contributions they made to our performance this year.”
Thomas said government reforms to the planning system and its focus on housebuilding should have a positive effect in time, but called for it to introduce more support for first-time buyers and use tax and regulation to create a stable environment for investment.
Chair Caroline Silver said that the integration had “progressed well”, with six divisional offices closed and three more in the process of shutting down.
Restructuring, procurement savings and de-duplication of overheads contributed to confirmed savings of £69m, with £20m achieved during the financial year. This puts it on the way to meeting the firm’s target of £100m before its next half-year results, she said.
Net cash stood at £772.6m on 29 June, compared with a combined £1.2bn on 30 June 2024.
As anticipated, its bottom line was hit by safety issues on projects.
Legacy property provisions for Redrow hit £144.5m for the period, with a separate £17.2m recorded as “completed property provisions”.
The developer reported in July that £98m of new liabilities uncovered in the second half of the year to 30 June related to fire safety defects at four buildings completed in 2002 and concrete frame remediation required at five London developments.
Begbies Traynor partner Julie Palmer said the results showed a strong start to life for the combined business.
She added: “An improvement in consumer confidence and demand is vital if the long-awaited recovery in housebuilding is to come sooner rather than later, otherwise, the limited output at some of the sector’s largest players will continue.
“Attention now turns to the Autumn Budget, where uncertainty over potential property tax changes risks dampening activity even further, particularly in London and the South. Barratt Redrow’s scale and resilience mean it is better placed than most to withstand these pressures, but the industry as a whole needs a more supportive backdrop before sustainable growth can return.”
Source: Construction News