Barratt Redrow (BTRW) Trading Update summary

Trading performance and market environment

• Private reservation rate of 0.62 was slightly ahead of last year, with overall reservation rate 3% lower due to timing of multi-unit sales; net private reservation rate rose 1.6% to 0.62, indicating stable demand.

• Private order book increased by 3% in the quarter, with private home order book value up 3.3% to £2,243.1m despite a 3.5% volume decline.

• 93% of FY25 completions are forward sold, with total forward sales at £3,138.6m for 10,245 homes.

• Affordable housing reservations remain subdued, but the private market is stable.

• Cancellation rates and mortgage approval conditions remain stable, with downvaluations at record lows.

Integration, cost, and synergy progress

• Redrow integration is progressing well, with divisional office rationalization and system migration on track; nine divisional office closures and nine planning applications for synergy sites.

• Procurement teams are harmonizing buying terms to unlock cost synergies, targeting £100 million per annum; procurement programme gaining momentum.

• Transition of Redrow onto Barratt systems to begin soon, aiming for 45 incremental sales outlets by FY28.

• Most procurement synergies are yet to be realized and will take time to impact the P&L.

• Revenue synergies are developing, with planning applications submitted for 9 of 45 targeted incremental outlets.

Land, build costs, and financial position

• Land availability is strong, with over 15,300 approvals across 82 sites year-to-date; 7,574 plots on 37 sites approved in the period.

• Build cost inflation is expected to be flat for FY 2024/25 and 1%-2% for FY 2026, with labor inflation outpacing materials.

• Net cash at year-end is expected to be between £500 million and £600 million; net cash of approximately £508m at 30 March 2025.

• £17m of a £50m share buyback completed; remaining buyback to finish by 29 June 2025.

• FY 2025 completions are expected between 16,800 and 17,200 homes, including around 600 joint venture completions.