Barratt Redrow Shares Jump on Positive H1 and Outlook

Barratt Redrow (LON: BTRW) shares rallied more than 8%  on Tuesday after the UK housebuilder reported a strong half-year and a positive outlook, saying it expects full-year profit at the upper end of market forecasts.

The company completed 6,846 homes in the six months ending 29 December 2024, an 11% increase compared to the previous year. 

Revenue rose 23.2% to £2.28 billion, while adjusted profit before tax climbed 6.4% to £217.5 million before purchase price allocation (PPA) adjustments.

Chief Executive David Thomas highlighted the improving market conditions, stating: “As the economic, political and lending environments have stabilised, there has been some recovery in customer demand and we have seen solid reservation activity since the start of January.”

Thomas added that as a result, they ”now expect our full-year adjusted profit before tax will be towards the upper end of market expectations.”

The integration of Redrow following last year’s merger is said to be progressing well, with the company expecting to exceed its original £100 million cost synergy target. 

The net private weekly reservation rate jumped 33% to 0.60 from 0.45 a year earlier.

Barratt Redrow also announced a 25% increase in its interim dividend to 5.5p per share, and launched a £100 million share buyback programme, starting with £50 million in H2 FY25.

The company reaffirmed its commitment to delivering 16,800-17,200 home completions in FY25, citing a strong forward sales position of 10,903 homes worth £3.35 billion.

Despite ongoing market uncertainties, the company said it remains confident in its ability to meet UK housing demand, driven by its scale, financial strength, and land bank depth.