REG - Barratt Redrow PLC - Barratt Redrow Third Quarter Trading Update

Barratt RedrowAnnouncement

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RNS Number : 4770A  Barratt Redrow PLC  15 April 2026

 

15 April 2026

Barratt Redrow plc

Solid third quarter performance

 

Barratt Redrow plc (the 'Group') is today issuing a trading update in respect
of the 13-week period from 29 December 2025 to 29 March 2026 (the 'period').
Comparatives are to the prior year equivalent period (referenced as '2025')
unless otherwise stated.

 

David Thomas, Chief Executive of Barratt Redrow plc commented:

"Barratt Redrow had a solid third quarter, with a resilient reservation rate
underpinned by good customer demand. Despite heightened macroeconomic
uncertainty, we expect the Middle East conflict to have limited impact on FY26
performance, given our strong forward sales position and advanced build
programme.  We are therefore on track to deliver total housing completions(1)
and adjusted profit before tax(2) in line with consensus expectations(3).

 

"Looking ahead, we have a proven track record of navigating uncertainty and
remain confident in our financial strength and ability to adapt to changing
market conditions. We will continue to closely monitor developments while
maintaining a disciplined approach to capital allocation, selective land
investment and rigorous cost control."

 

Highlights

 ·    Net private reservation rate, excluding private rental sector ('PRS')
 and other multi-unit sales ('MUS') reservations, 3.2% higher at 0.64 compared
 to 0.62 in the comparable period.
 ·    Net private reservation rate including PRS and other MUS reservations
 at 0.67, 6.3% higher compared to 0.63, reflecting additional PRS and MUS
 activity during this period.
 ·    On track to deliver total home completions of between 17,200 and
 17,800 (including c.600 JV) home completions for the full year.
 ·    94%(4) forward sold for FY26 (2025: 96%) with total forward sales
 (including JVs) at 29 March 2026 at £3,539.2m (30 March 2025: £3,138.6m).
 ·    Retained five-star homebuilder status for the 17(th) consecutive year
 - an unparalleled industry record.
 ·   Year-end net cash now expected to be between £550m and £650m, c.
 £150m ahead of our previous guidance reflecting the timing of legacy building
 remediation payments and reduced land investment.
 ·   The second £50m tranche of our £100m share buyback programme started
 on 5 January 2026, with £33.3m deployed on share buybacks through to 29 March
 2026.

Trading

Reservation rates

The Group's private reservation performance continued to be resilient over the
period. Our net private reservation rate, excluding PRS and other MUS, is
slightly ahead of last year at 0.64 reservations per active sales outlet per
week (2025: 0.62). Sales incentive levels were in line with HY26 and have
supported reservation rates during the period.

Our overall private reservation rate at 0.67 (2025: 0.63) included an
increased contribution of 0.03 (2025: 0.01) from PRS and other MUS
reservations in the period.

Sales outlets

In line with our FY26 guidance, we operated from an average of 408 outlets
(2025: 419) in the period, including 9 JV outlets (2025: 10) and we continue
to expect to operate from c. 405 average sales outlets, including JVs,
throughout FY26.

We launched 32 new sales outlets in the period, including our first two
synergy sales outlets with both Barratt Homes and David Wilson Homes outlets
added to the Redrow site at Curborough Fields, Lichfield. With our first
synergy sales outlets now open, we are ahead of schedule and now on track to
open a further 6 such outlets by the year end, 22 in FY27, with the balance of
15 sales outlets scheduled to launch in FY28.

In the year to date we have launched 97 sales outlets and we remain on track
to operate from between 425 and 435 average sales outlets, including JVs, in
FY27.

We also now have detailed planning consent on 94% of plots expected to deliver
home completions in FY27 (2025: 95% of plots expected to deliver home
completions in FY26).

Home completions and order book

In the period we delivered 3,274 (2025: 3,717) total home completions
(including JVs of 57; 2025: 81) bringing total home completions in the
financial year to date to 10,718 homes (2025: 10,824(5)). The lower level of
completions in the period reflected a particularly strong comparable quarter
in FY25 ahead of the end of Stamp Duty relief.

As a result of increased construction work in progress at the end of the
period, and our scheduled build activity through the balance of FY26, we
remain on track to deliver total home completions for the full year in line
with guidance.

Total forward sales (including JVs) at 29 March 2026 were 11.2% higher at
11,395 homes (30 March 2025: 10,245). The value of our total forward sales at
29 March 2026 was £3,539.2m (30 March 2025: £3,138.6m).

Our private home order book at 5,643 homes (30 March 2025: 5,503) was 2.5%
higher in terms of volume relative to the position a year ago. It was 1.7%
ahead in value terms at £2,281.5m (30 March 2025: £2,243.1m), reflecting the
mix of homes and the impact of underlying deflation.

With the strength of the private order book entering the second half, along
with the solid private reservation rate in the third quarter, we are now
94%(4) forward sold for FY26 (2025: 96%).

 

 

Build cost inflation

At our interim results in February, we guided towards c. 2% build cost
inflation overall for FY26, with an anticipated rate of c. 3% in the second
half. We are maintaining this guidance for FY26 however we recognise that
higher energy costs are likely to be reflected in increased building material
costs in FY27.  We will have better visibility on build cost inflation for
FY27 with our next trading update in mid-July.

Our enhanced purchasing scale in the market, our excellent relationships
developed with our supply chain partners over many years, and our discipline
on costs, means we are well placed to secure both our building material needs
and the most competitive pricing.

In addition, our ability to switch from traditional to timber frame
construction, through Oregon our timber frame business, provides us with
further flexibility should we see significant movements in our traditional
construction input costs.

Leadership in quality and sustainability

The high standard of build quality across our sites has again been recognised
by our customers who have awarded Barratt Redrow the maximum 5 Star rating in
the HBF customer satisfaction survey for the 17(th) successive year, an
unmatched achievement across our industry.  Our three brands are all rated
'Excellent' on Trustpilot.

Redrow integration progress

Since the start of FY26 the Group has been operating from 32 housebuilding
divisions, in line with guidance provided at the time of the acquisition, and
the IT integration will complete this month.

Our £100m target in respect of cost synergies has now been confirmed. We
delivered £20m of cost synergies in FY25 and we remain on track to deliver an
additional £50m of incremental synergies in FY26, with the balance of £30m
being delivered by the end of December 2027.

This good progress on cost synergies will be further complemented by our
highly disciplined approach to costs as we continue to drive supply chain
efficiencies and further improve our overhead efficiency.

Land

During the period, we approved 2,465 plots for purchase across 14 sites (2025:
7,574 plots across 37 sites), bringing our total approvals for the financial
year to date to 4,010 plots across 29 sites (2025: 15,301 across 82 sites).

This reduced level of land approvals is in line with our disciplined approach
to land purchasing, which is underpinned by the strength of our existing land
bank.  Our long term goal, which we reiterated in our HY26 results, is to
optimise our existing land bank by moving towards a target of 3.5 years of
owned land bank plots and 1.0 year of controlled land.  At the same time, we
also saw fewer attractive opportunities in the market over the period.

Now, with a less certain backdrop, given recent geopolitical events and their
likely impact on mortgage rates and build cost inflation, we are being even
more selective.

In this context, we now anticipate total land approvals for the financial year
will be between 7,000 and 9,000 plots, below our previous guidance range of
between 10,000 and 12,000 plots and land spend of between £700m and £800m,
from our previous guidance range of between £800m and £900m.

Balance sheet and liquidity

The Group remains financially strong. We anticipate strong operating cash flow
generation in the balance of FY26 as elevated work in progress is converted
into cash through increased home completions. With lower cash investment on
land and the timing of legacy building remediation payments, year-end net cash
is now expected to be between £550m and £650m, above our previous guidance
of between £400m and £500m.

Our share buyback is ongoing, with 9.7 million Barratt Redrow shares acquired
by the Group in the period, for a total consideration of c.£33.3m.  This
brings the cumulative buyback activity to 22.9 million shares to date in FY26
for consideration of £83.7m, with the balance to be completed prior to the
end of June 2026.

Outlook

Following our solid third quarter performance, and with sales rates remaining
resilient, we are reiterating our unchanged guidance for FY26 total home
completions of between 17,200 and 17,800 (including c.600 JV) homes and we are
on track to deliver adjusted profit before tax(2) in line with consensus
expectations(3).

The ongoing conflict in the Middle East is contributing to increased economic
uncertainty, including the potential for a more prolonged higher interest rate
environment and renewed cost pressures. While we currently expect any direct
impact on FY26 to be limited, visibility beyond the current financial year
remains more uncertain.

In this context, we are closely monitoring developments while maintaining a
disciplined approach to capital allocation, land investment and cost control,
ensuring we retain the flexibility to adapt to changing market conditions.

Our three complementary brands, strong financial position and high-quality
landbank position us well to navigate the current environment and support
sustainable growth and shareholder returns.

Notes:

 1.   Including joint ventures (JVs). Unless otherwise stated all figures
 quoted exclude JVs.
 2.  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 of our HY26 results statement. 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.
 3.   The company compiled consensus for FY26 adjusted profit before tax
 before the impact of purchase price allocation adjustments but after the
 reclassification of legacy building safety provision non-cash finance charges
 as adjusted items was £568m on 14 April 2026 with a high of £586m and a low
 of £534m.  The company compiled consensus for total home completions
 including JVs is 17,416 with a high of 17,589 and a low of 16,998. The company
 compiled consensus is based on 13 analysts who have provided updated forecasts
 since the HY26 results.
 4.   Based on mid-point of FY26 total home completion guidance after
 deducting 600 JV home completions and assuming c. 20% affordable home
 completions within the wholly owned completions mix.
 5.   Based on aggregated performance of Barratt Redrow plc from 1 July 2024
 to 30 March 2025

 

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.

 

Conference call for analysts and investors

David Thomas, Chief Executive, Mike Roberts, Chief Operating Officer and John
Messenger, Group Investor Relations Director, will be hosting a conference
call at 08:30am today, Wednesday 15 April 2026, to discuss this Trading
Update.

To access the conference call:

Please register through the following: Link
(https://event.loopup.com/SelfRegistration/registration.aspx?booking=heFfpkDd3RmBGNdqdnb4kXn8YRQ5AUZN3wRyq9YUq4s=&b=2389e96d-457b-46a8-bebb-fec356d5b031)

A recording of the conference call and question and answer session will be
available on our website later today.

For further information, please contact:

 Barratt Redrow plc                                                            07867 201 763
 John Messenger, Group Investor Relations Director
 Media enquiries                                                               01530 278 278
 Tim Collins, Group Corporate Affairs Director
 Brunswick                                                                     020 7404 5959

 Rosie Oddy / Peter Hesse

 

www.barrattredrow.co.uk (http://www.barrattredrow.co.uk)

Barratt Redrow plc LEI: 2138006R85VEOF5YNK29

Financial reporting calendar

The Group's next scheduled announcement of financial information is the FY26
full year trading update on Tuesday 15 July 2026.

Appendices

                                          FY26             FY25
                                          29 Dec - 29 Mar  30 Dec - 30 Mar  Change
 1. Net Private Reservation Rate          0.67             0.63             6.3%
 - of which PRS and other MUS             0.03             0.01             200.0%
 - excluding PRS and other MUS            0.64             0.62             3.2%

 Average active sales outlets  (ex JVs)   399              409              (2.4%)
 Average active sales outlets (inc. JVs)  408              419              (2.6%)

 

 

                   29 March 2026     30 March 2025     Variance (%)
 2. Forward sales  £m       Homes    £m       Homes    £m       Homes
 Private           2,281.5  5,643    2,243.1  5,503    1.7%     2.5%
 Affordable        956.5    4,889    745.1    4,355    28.4%    12.3%
 Wholly Owned      3,238.0  10,532   2,988.2  9,858    8.4%     6.8%
 JV                301.2    863      150.4    387      100.3%   123.0%
 Total             3,539.2  11,395   3,138.6  10,245   12.8%    11.2%

 

 

 

                        Current Year      Prior Year        Variance (%)
 3. Forward sales roll  Private  Total    Private  Total    Private  Total
 December(3)            4,746    10,440   5,296    10,076   (10.4%)  3.6%
 Reservations           3,470    4,229    3,359    3,886    3.3%     8.8%
 Completions            (2,573)  (3,274)  (3,152)  (3,717)  (18.4%)  (11.9%)
 March(4)               5,643    11,395   5,503    10,245   2.5%     11.2%

 

Note 3: At 28 December 2025 and 29 December 2024 respectively.

Note 4: At 29 March 2026 and 30 March 2025 respectively.

 

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