REG - Barratt Redrow PLC - Full year results for the period end 29 June 2025
Today 07:00
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RNS Number : 6054Z Barratt Redrow PLC 17 September 2025
Full year results for the 52-week period ended 29 June 2025
Resilient performance; strengthened foundations for growth
Commenting on the full year results David Thomas, Chief Executive of Barratt
Redrow plc 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.
"While the housing market remains challenging and we anticipate limited growth
in FY26, the long-term fundamentals of the sector remain compelling. We have a
unique offering, with three distinct leading brands with a strong land
position and balance sheet and a clear strategy to deliver long-term,
sustainable growth and 22,000 homes a year in the medium-term. In the
meantime, it is vital that government policy is focused on reforming the
planning system, removing barriers to investment and supporting purchasers,
particularly first-time buyers, if the sector is to build the homes the
country needs."
£m unless otherwise stated (1, 2) 52 weeks ended 29 June 2025 Impact of purchase price allocation ('PPA') 52 weeks ended 29 June 2025 Year ended Variance vs FY24
before PPA 30 June 2024(R)
Total home completions (3) 16,565 - 16,565 14,004 18.3%
Revenue 5,578.3 - 5,578.3 4,168.2 33.8%
Alternative performance measures:(4)
Adjusted gross profit 875.2 95.1 970.3 689.0 27.0%
Adjusted profit before tax 488.3 103.3 591.6 385.0 26.8%
Adjusted gross margin 15.7% 170 bps 17.4% 16.5% (80 bps)
Adjusted operating margin 9.0% 170 bps 10.7% 9.0% -
Adjusted basic earnings per share 25.5p 5.3p 30.8p 28.3p (9.9%)
Statutory performance measures:
Gross profit 784.8 509.5 54.0%
Profit before tax 273.7 170.5 60.5%
Gross margin 14.1% 12.2% 190 bps
Operating margin 5.1% 4.2% 90 bps
Basic earnings per share 13.6p 11.8p 15.3%
ROCE 9.0% 9.5% (50 bps)
Net cash 772.6 868.5 (11.0%)
Dividend per share 17.6p 16.2p 8.6%
Tangible net asset value per share 437p 452p (3.3%)
Notes:
1 Refer to Glossary for definition of key financial metrics.
R = Reported and denotes a Barratt Developments PLC group ("Barratt Group")
reported metric based on the reported performance of the Barratt Group in the
comparable reporting period.
A = Aggregated and denotes an aggregated metric based on the reported
performance of the Barratt Group in the comparable reporting period 1 July
2023 to 30 June 2024 and includes the performance of the legacy Redrow plc
group ("Redrow Group") from 24 August 2023 to 30 June 2024, the equivalent
period of ownership, to provide comparability on operational and financial
performance. Redrow Group data is based on Redrow plc's standalone accounting
policies and therefore excludes any impact of policy alignments made since the
acquisition. Aggregated adjusted measures are also presented and prepared on
this basis. The aggregated value comparatives have not been audited or
reviewed by Barratt Redrow plc's auditors.
2 Unless otherwise stated, all numbers quoted exclude JVs.
3 Including JVs in which the Group has an interest.
4 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. In this period, new APMs have been introduced to
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.
5 Bloomberg consensus for FY25 adjusted profit before tax before the impact of
PPA adjustments on 16 September 2025 was £582.8m with a range of £580m to
£584m, excluding the impact of purchase price adjustments.
Financial highlights
· Resilient operational performance, delivering 16,565 total home completions(3)
(FY24: 14,004(R) and 17,972(A)).
· Net private weekly reservation rate ahead by 16.4% at 0.64 compared to 0.55(A)
aggregated performance for Barratt and Redrow in the comparable period (FY24:
0.58(R)).
· Adjusted profit before tax and before Redrow purchase price allocation ('PPA')
adjustments, at £591.6m (FY24: £385.0m(R) and £585.7m(A)) ahead of market
expectations((5)), reflecting some margin improvement and cost synergies
crystallised ahead of initial estimates. Reported profit before tax £273.7m
(FY24: £170.5m(R)).
· Adjusted item charges of £214.6m (FY24: £214.5m(R), £222.5m(A)) reflected
legacy property charges of £92.6m, Redrow acquisition transaction costs of
£36.2m, acquisition related reorganisation and restructuring costs of £56.8m
and CMA commitment costs of £29.0m.
· Performance underpinned by our strong balance sheet position with net cash at
29 June 2025 at £772.6m (30 June 2024: £868.5m(R) and £1,164.5m(A)).
· Confirmed annual cost synergies of £69m against our target of at least
£100m, resulting in a £20m reduction in costs through the income statement
in FY25 profit and a further incremental cost reduction of £45m expected in
FY26.
· Proposed dividend for FY25 increased by 8.6% to 17.6 pence per share (FY24:
16.2 pence), £50m share buyback programme completed in 2H FY25 and £100m
share buyback programme ongoing for FY26.
Operational highlights
· Redrow integration well progressed with six divisional offices closed and
three in the process of closing across the Group, and IT integration in six
divisions making up most of the remaining processes to complete.
· Continued industry leadership on quality, customer satisfaction and
sustainability:
- 115 NHBC Pride in the Job Awards across the combined Group, consistently ahead
of any other housebuilder for 21 years;
- Rated '5 Stars' by our customers in the HBF customer satisfaction survey for
the 16(th) year in a row; and
- Barratt recognised as the leading national sustainable housebuilder by
NextGeneration for the eleventh consecutive year.
· Important new joint ventures established with the launch of:
- The MADE Partnership with Homes England and Lloyds Banking Group; and
- The West London Partnership with Places for London, the property arm of
Transport for London, encompassing the development of more than 4,000 homes in
the coming decade in West London.
Current trading and outlook
· Our net private weekly reservation rate from 30 June 2025 to 24 August 2025
was 0.55 (2024: 0.56A), with no private rental sector or other multi-unit
sales (2024: 0.03A) in the period.
· Forward sales(3) as at 24 August 2025 were 10,350 homes (25 August 2024:
10,398A) at a value of £3,140.9m (25 August 2024: £3,020.0mA) with 7,048
homes of these total forward sales either exchanged or contracted (25 August
2024: 7,451A).
· Based on the solid reservation activity seen since the start of the new year
and assuming no material change to market conditions because of economic or
political changes in the coming months, we expect to deliver total home
completions of between 17,200 and 17,800 in FY26 (including c. 600 JV
completions). This also assumes a normal autumn selling season, our current
expectation, however the extended period through to the Budget and related
uncertainties around general taxation and that applicable to housing, has
introduced additional risk.
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
click here
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to register for the FY25 results webcast.
An archived version of the results webcast will also be available on our
website on 18 September 2025 and further copies of this announcement can be
downloaded from the Barratt Redrow plc corporate website at
www.barrattredrow.co.uk (http://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.
For further information, please contact:
Analyst / investor enquiries
Mike Scott, Chief Financial Officer 01530 278 278
John Messenger, Group Investor Relations Director 07867 201 763
Media enquiries
Tim Collins, Group Corporate Affairs Director 01530 278 278
Brunswick
Rosie Oddy / Peter Hesse 020 7404 5959
Barratt Redrow plc LEI: 2138006R85VEOF5YNK29
The Group's next scheduled announcement will be the Barratt Redrow plc AGM
along with a trading update on 5 November 2025.
Barratt Redrow plc final dividend DRIP:
A Dividend Reinvestment Plan ("DRIP") is provided by Equiniti Financial
Services Limited. The DRIP enables the Company's shareholders to elect to have
their cash dividend payments used to purchase the Company's shares. More
information can be found at www.shareview.co.uk/info/drip
(http://www.shareview.co.uk/info/drip) . The closing date for DRIP elections
is 24 October 2025.
Chair's Statement
Establishing the foundations for growth
Introduction
This year has been an important and exciting one in our history. In August
2024 we acquired Redrow plc and received CMA clearance in October 2024,
allowing us to begin the integration process. For colleagues across both
businesses this brought opportunities and some understandable uncertainty as
we have worked to combine the two businesses. I have been impressed by the
adaptability and resilience shown by our people in navigating the changes to
the business created by the combination, whilst ensuring that we continue to
deliver the quality and service our customers expect, alongside driving a
solid financial performance. At our capital markets event in February, we
brought together Barratt Redrow's management team, sell-side analysts and
other key stakeholders to set out what differentiates us from our competitors,
our key strengths as a combined business and our ambitions for the medium
term.
In FY25 we also saw a new Government elected with a specific focus on driving
economic growth through reform of the planning system and tackling the UK's
housing crisis. Whilst the Government's supply-side policy changes have been
broadly positive, they will take time to make a practical difference. The
overall business environment has not seen the stability or support needed to
underpin investment and growth, and consumer confidence and home buying demand
have remained subdued, hampering the industry's ability to increase volumes.
In addition, there are increasing regulatory and procedural burdens that too
often cause delays and increase costs. Nonetheless, we will continue to do
what we can to work with the Government to improve conditions for homebuyers
and home builders so that we can build the homes the country needs and drive
increased economic growth.
Our performance
Despite being a year of much change, combined with a continued challenging
market backdrop, we have once again produced a solid financial performance and
our teams have ensured that we continue to lead the industry on build quality,
customer service and sustainability, as demonstrated by accreditation from our
customers and independent third parties.
Over the past 12 months:
· We were awarded the Home Builders Federation (HBF) 5-star status for the 16th
year in a row, the only national housebuilder to have achieved this record;
· Our site managers secured 115 NHBC Pride in the Job awards, again more than
any other housebuilder, for a record 21st year; and
· We retained our position as the only UK housebuilder on the CDP Climate Change
A List for Leadership.
The operational side of our business continues to deliver industry-leading
performance reflecting management's focus on getting things right for our
customers, partners, employees and stakeholders. This is not restricted to
current customers but also governs our approach to legacy issues, where our
Building Safety Unit is dedicated to identifying safety-related remediation
that is needed at historic developments and then designing and delivering
solutions for residents and leaseholders. While it will take some time to
complete our work in this area, at Barratt Redrow doing the right thing is
non-negotiable and we remain committed to our building safety obligations.
Redrow integration
Combining two large businesses is not without its challenges, but colleagues
across Barratt Redrow have engaged positively in the process, resulting in
significant progress on the integration of Redrow and in unlocking the
synergies we had identified
To position the business for further profitable growth, we had to make some
difficult decisions around our divisional structure. As planned when the deal
was announced, six divisional offices have been closed and three are in the
process of closing and our Group support functions are now being combined. I
would like to thank all our colleagues for their continued professionalism
through this period and for their continued support over the coming 12-18
months.
As well as divisional office closures and restructuring of our Group support
functions, procurement savings and de-duplication of overheads have also
contributed to confirmed cost synergies of £69m at the end of the financial
year, well on the way to our ultimate cost synergies target which we increased
from £90m to at least £100m at the time of our half-year results.
Good progress is also being made on revenue synergies, with 16 planning
applications submitted in respect of the 45 identified incremental sales
outlets and five approvals received as at the 29 June 2025.
Positioned for growth
The combination of our financial strength, land portfolio and brand offering
differentiates Barratt Redrow and puts us in a strong position to deliver
future growth. We held net cash of £772.6m at our financial year end, we
secure attractive land opportunities through our market leading position
across diversified land channels, and we build and sell our homes through
three high-quality, differentiated brands covering the majority of the market.
This sits alongside our newly formed divisional network. Collectively this
places Barratt Redrow in a very strong position to grow towards our
medium-term target of 22,000 total home completions a year.
UK Competition and Markets Authority (CMA) investigation
In July 2025 we announced that we, along with six other UK housebuilders, have
offered voluntary commitments to the CMA as part of its ongoing investigation
into the housebuilding sector, with a view to resolving the investigation
expeditiously. The offer of voluntary commitments does not constitute an
admission of any wrongdoing by us and nothing in the commitments may be
construed as implying that we agree with any concerns expressed by the CMA
during its investigation.
The proposed commitments include the seven housebuilders making a collective
payment of £100m to the Government to be disbursed to the affordable homes
programmes in England, Scotland, Wales and Northern Ireland. Our share of
the payment (which is for both Barratt and Redrow businesses combined as
Barratt Redrow plc) is expected to be £29m.
We welcomed the CMA's consultation on the voluntary commitments, which
concluded at the end of July 2025, and will continue to work constructively
with the CMA throughout the process.
Shareholder returns
The Board declared an interim dividend for FY25 of 5.5 pence per share (FY24:
interim dividend of 4.4 pence per share) and is pleased to recommend a final
FY25 dividend of 12.1 pence per share (FY24: final dividend of 11.8 pence per
share) in line with our dividend policy of 1.75 times adjusted earnings per
share. Subject to shareholder approval, the final dividend will be paid on 14
November 2025 to shareholders on the register at the close of business on 10
October 2025. The total proposed dividend for FY25, including the interim
dividend, is 17.6 pence per share (FY24: 16.2 pence per share).
The Board regularly reviews its approach to capital allocation. As such, in
February we announced a change to our shareholder returns policy, introducing
a share buyback programme with the intention of buying back at least £100m of
shares annually from FY26. As part of that programme, an initial £50m tranche
was executed in the second half of FY25. In addition, our dividend policy will
move from 1.75 times to 2.0 times adjusted earnings per share dividend cover
(calculated before purchase price allocation accounting charges). The Board
believes this capital allocation policy will deliver an attractive dividend
and allow the Group to balance investment in sustaining and growing the Group
with enhancing future shareholder returns through a predictable but also
scalable buyback programme, dependent on market conditions and opportunities.
The Board believes that the combined dividend and share buyback commitment
represents the right balance of shareholder returns.
Sustainability
We remain the UK's leading national sustainable homebuilder, and we are
committed to finding new and innovative ways to improve our developments for
nature, communities and our customers. Both the legacy Barratt and Redrow
businesses have a strong track record of delivering sustainability initiatives
and, separately, each had committed to the Science Based Targets initiative
approved targets to achieve net zero. We are working on a revised combined
transition plan to ensure that we continue to lead the industry on the journey
to net zero.
Board changes
Over the year, we have announced several changes to the composition of the
Board and our committees.
We welcomed Nicky Dulieu and Geeta Nanda to the Barratt Redrow Board in
October 2024 as Non-Executive Directors, having previously been on the Board
of Redrow plc.
In March 2025, we announced that after 47 years of dedicated service, our
Chief Operating Officer and Deputy Group Chief Executive Steven Boyes would
step down from the Board on 6 September 2025. Steven has made a huge
contribution to the business throughout his tenure, is highly respected within
the business and across the industry and everyone at Barratt Redrow wishes
Steven a long and happy retirement.
After a successful career with Redrow, Matthew Pratt stepped down as Redrow
Chief Executive and as a Director of Barratt Redrow plc with effect from the
close of business on 30 June 2025, we wish him well for the future.
With effect from 1 August 2025, we refreshed the composition of the SHE
Committee with Nigel Webb taking over from Chris Weston as its Chair and
elevated the Sustainability Committee to a Board Committee, appointing Geeta
Nanda as its Chair.
After nine years' service, Jock Lennox will be stepping down from the Board on
5 November 2025. Jock has been instrumental in reshaping our approach to risk
management, internal controls and assurance, and in steering the Audit and
Risk Committee and as Senior Independent Director (SID), the Board through
many strategic decisions, most recently the acquisition of Redrow plc. Jasi
Halai will take over from Jock as Chair of the Audit and Risk Committee and
Nicky Dulieu will become our SID.
Looking ahead
As we move into FY26, affordability, uncertainty in the macroeconomic
environment and weak consumer confidence remain challenges. While we have seen
some welcome reductions in mortgage rates over the course of the year, the
cost of living remains high and affordability remains a key constraint,
particularly for first-time buyers. We continue to invest in self-help
measures, such as our part-exchange offer and incentives for key workers, to
support customers seeking to buy our homes.
We welcomed the Government's Spending Review announcement of a 10-year £39bn
new Affordable Homes Programme. This provides a significant step-up in funding
and a long-term commitment to the affordable housing sector, which should
support improving demand from affordable housing providers for the affordable
homes we build throughout the country. However, to drive rapid and sustained
private development growth across the housebuilding industry, Government
should consider demand-side support for first-time buyers, a feature of the
housing market for many decades.
Looking to the future, the absence of first-time buyer support risks the
acceleration of ever-increasing inter-generational and social inequality,
where parental savings and financial support will increasingly dictate the
ability of so many to access the stability and security of home ownership.
On the supply-side, the Government's welcome reforms of the planning system
will take time to feed through into practical improvements on the ground. In
the meantime, it is vital that Government remains committed to tackling our
housing crisis, supporting the industry to build the homes the country needs
and focused on creating an environment which encourages the sustained
investment in the land, people and materials to do so.
FY25 marked the start of a new chapter in our long history. As Barratt Redrow
we are well positioned and ready to focus on what we can control and
capitalise on improving market conditions. Our three complementary brands
cover a large proportion of the market and will enable us to drive the
delivery of increased volumes. The talent in our Company is second to none and
I look forward to meeting even more of our colleagues this coming year.
Finally, the Board and I would like to take this opportunity to thank all our
colleagues, subcontractors and supply chain partners for their ongoing support
and partnership.
Caroline Silver
Chair
16 September 2025
Chief Executive's Statement
Delivering the homes the country needs
Introduction
We delivered a solid financial performance in FY25, whilst making good
progress against our strategic priorities. Despite continued challenges around
mortgage affordability and cost of living pressures, reduced volatility in
mortgage rates, a broadening range of mortgage products available, easing
inflation trends and a more balanced economic backdrop supported demand in
FY25, as reflected in our solid reservation rates.
The Redrow acquisition, completed in August 2024, was a transformative
milestone - bringing a complementary premium brand, high-quality land assets
and significant opportunities to unlock both cost and revenue synergies. The
acquisition strengthens our market position and underpins our confidence in
delivering our medium-term target of 22,000 total home completions per year.
Together, we are uniquely placed to drive growth, enhance shareholder value
and continue to deliver the homes the UK needs. I would like to thank our
teams throughout the business and our wider supply chain partners for their
continued professionalism and dedication as we capture the exciting
opportunities ahead for Barratt Redrow.
Performance summary
In FY25 we delivered total home completions of 16,565 (FY24: 14,004(R);
17,972(A)) including completions from Redrow since the acquisition in August
2024. Whilst this was slightly lower than the guided volume range, we
delivered adjusted profit before tax and before the impact of Redrow
acquisition fair value adjustments, slightly ahead of expectations at £591.6m
(FY24: £385.0m(R); £585.7m(A)). Our reported profit after tax was £186.4m
(FY24: £114.1m(R); £249.5m(A)).
We continue to maintain a strong balance sheet with year-end net cash of
£772.6m (FY24: £868.5m(R); £1,164.5m(A)) after the payment of dividends,
the share buyback and legacy property-related spend.
ROCE reduced to 9.0% (FY24: 9.5%(R)) reflecting the increase in capital
employed through the Redrow acquisition, as well as the negative impact of
acquisition fair value adjustments on reported profitability.
For more information on our financial performance and on the additional
accounting impacts of the Redrow acquisition, please refer to the Chief
Financial Officer's Statement.
Acquisition of Redrow
In August 2024 we completed our acquisition of Redrow plc, creating a business
which can deliver 22,000 homes per annum through three high quality brands at
a range of price points. We are delighted to have added Redrow's talented
teams to our own employee base. By using the Redrow brand to complement our
two existing homebuilding brands - Barratt Homes, including Barratt London,
and David Wilson Homes - we plan to grow the business over the medium-term by
initially creating incremental sales outlets from our combined land bank at
acquisition, and leveraging our market-leading brands and resulting
development scale and capabilities, to secure a wider portfolio of attractive
land opportunities using our leading position across all land sourcing
channels. The ethos of Redrow is closely aligned to Barratt and David Wilson
with a focus on delivering high-quality homes and excellent customer service,
underpinned by creating sustainable communities where people aspire to live.
Redrow integration
In line with our plans, six divisional offices have been closed and three are
in the process of closing, with operational leadership aligned from 1 July
2025. During FY26, Barratt Redrow will operate from 32 housebuilding divisions
across the country with the capacity to deliver 22,000 homes per annum in the
medium-term.
The integration and synergy activities across our head office functions have
also progressed well during the year. The restructuring of head office teams
is well-advanced and is expected to complete in Q1 FY26. We are also making
good progress in rationalising head office overhead costs. The transition of
the Redrow business onto Barratt systems began in April 2025 and will be
completed during FY26. Finally, our procurement programme continued to gain
momentum through FY25 as we moved to both harmonise buying terms and ensure
the purchasing scale of Barratt Redrow is optimised, unlocking the targeted
synergies.
As a result of this hard work, we had confirmed c. £69m of cost synergies at
the year end and we are well on the way to achieving an upgraded cost synergy
target of at least £100m. Cost synergies of £20m were crystallised within
FY25 performance, ahead of our October 2024 target of c. £10m. We now
anticipate around £45m of incremental cost synergies will be crystallised in
FY26. Total Redrow-related reorganisation and restructuring costs are expected
to be £90m to £95m with £56.8m incurred as an adjusting item in FY25 and
the balance of c. £33m to £38m anticipated in FY26.
With respect to revenue synergies, we submitted 16 planning applications for
incremental sales outlets from the combined Barratt Redrow land bank, and we
were pleased to have already secured planning approval on 5 of these in FY25.
Since the year end a further 9 planning applications have been submitted and 4
additional planning approvals secured. With progress to date, we remain
confident in delivering 45 incremental sales outlet openings by the end of
FY28.
Strong fundamentals for growth
At our capital markets event in February 2025, we outlined why we believe the
UK housing market has strong fundamentals for growth, and why we are the
best-positioned national homebuilder to capitalise on this opportunity.
Following the acquisition of Redrow, and the strong progress we have made on
integration, we have a clear strategy to leverage our position as an
exceptional UK homebuilder to deliver growth and maximise shareholder returns.
With our unrivalled record on quality, service and sustainability, in addition
to our robust financial position and long-standing partnerships, we are
well-placed to significantly increase volumes, with a clear target to deliver
around 22,000 homes per year in the medium-term. We are confident that the
strength of our three leading and differentiated brands, our nationwide
footprint, our strong land pipeline and our deep operational experience and
expertise, place us in a very strong position to deliver against this
ambition. During the year, we have also taken further strategic actions to
underpin our ability to deliver this volume growth, including:
· expanding our timber frame production capacity, which typically reduces build
time by seven to eight weeks whilst reducing local site labour dependency;
· continuing to innovate and test new products to increase efficiency and
provide resilience in the build process, such as the Mauer façade system; and
· right sizing our divisional office network, ensuring we have the right teams
in the right geographic locations to meet our ambitions.
We welcomed the proposed planning reforms introduced by the new Government in
the autumn of 2024. However, these reforms are not yet fully enacted and
therefore their impact on improving planning outcomes in our divisional
businesses has been slower than we anticipated. We remain confident in our
ability to grow our sales outlet numbers to between 475 and 525 in the
medium-term, which will allow us to deliver our medium-term volume guidance of
22,000 home completions per year.
Strategic priorities
As we enter this new era as Barratt Redrow, we have clear strategic priorities
to deliver our goals for the business in the short, medium and long-term.
These are summarised below:
Delivering a best-in-class customer offering:
· deliver excellent customer service at all stages in the home buying process,
from contact through our website to after-care support when our customers have
moved into their new home;
· provide a broad and customer-led choice of homes by way of brand, geographic
location, style and layout design and price points; and,
· maintain the best build quality in the industry.
Driving operational efficiency through differentiated brands:
· increase the number of sales outlets we operate from and the efficiency with
which we develop our land pipeline;
· deliver the cost synergies from the Redrow acquisition and further
efficiencies through centralisation of our support functions; and,
· evolve the standardisation of our house types to improve both our build
efficiency and the adoption and use of modern methods of construction.
Using capital effectively to drive growth:
· create new opportunities for growth through disciplined land acquisition and
the development of alternative land channels;
· invest in our operations to support our sustainable growth over the medium to
long-term, most notably in timber frame manufacturing; and,
· return capital to shareholders which is surplus to the Group's requirements,
through an ongoing dividend based on 2.0 times dividend cover and a share
buyback programme of at least £100m annually.
Leading the industry in sustainability:
· create the sustainable homes and developments that our customers and
communities demand and deserve;
· ensure we remain the partner of choice for stakeholders seeking to deliver a
path to sustainable growth; and,
· deliver a net zero transition plan for Barratt Redrow, following the Redrow
acquisition, which recognises both the challenges and opportunities ahead.
Charitable giving and the Barratt Redrow Foundation
Core to our purpose is building strong communities, a key part of that is
supporting existing communities, local charities and good causes and providing
the opportunities for our employees to volunteer and raise money for causes
close to their hearts.
The Barratt Foundation was launched in 2021 and on 1 July 2025 became the
Barratt Redrow Foundation, expanding its charitable programmes to include our
Redrow colleagues and communities. We now look forward to expanding the
positive impact we can have on charities and good causes as an enlarged Group,
with greater employee involvement and the opportunities for additional
fundraising, volunteering and support for communities across the country.
In FY25 we donated £6.7m (FY24: £6.4m(R)) through the Barratt Foundation and
employee fundraising across the enlarged Group.
Responsible development
Keeping people safe
Our first priority is to keep our employees, our subcontractors and our
customers safe. During FY25, our injury incidence rate, across Barratt
Redrow's combined operations, decreased to 272 (FY24: 302(R)) per 100,000
workers whilst we maintained our SHE audit compliance at 97% (FY24: 97%(R)).
We remain focused on improving our site-based processes and procedures,
challenging unsafe behaviours and building on our health and safety
performance through on-site induction training and safety awareness for all
personnel, while also developing our site managers' vigilance to health and
safety risks on site.
Building safety
Our approach to assessing and rectifying historical building safety issues has
been consistent. We take our responsibilities seriously and are working as
fast as we can to assess relevant buildings, where necessary design
appropriate remediation strategies and work with all relevant stakeholders -
including residents, building owners, principal accountable persons, local
authorities and the Building Safety Regulator - to expedite that remediation
as efficiently as possible.
Through our dedicated Building Safety Unit, we ensure remediation has the
appropriate focus within our business and our use of high-quality fire
engineers and peer reviews of proposed solutions, as well as the diligence of
our site teams, means that we have a high degree of visibility around
remediation progress and expected costs.
During FY25 additional legacy property related costs were recognised. These
costs related to:
· the fair value of Redrow's building safety provision, which was recognised at
£184.3m at the date of acquisition and was included in the Group's interim
results to 29 December 2024;
· charges relating to legacy property provisions, including revaluations, which
totalled £106.2m and which, after recoveries from third parties of £15.8m
and associated legal costs of £2.2m, resulted in an adjusted item charge of
£92.6m; and
· new issues identified in the Redrow portfolio post-acquisition with respect to
reinforced concrete frame design and construction and, after investigation,
testing and quantification in the second half of FY25, a revision to the
Redrow opening balance sheet fair value of £131.8m, recognised through an
additional reinforced concrete frame provision of £105.2m and an adjustment
to inventories of £26.6m.
We also continue, where possible, to actively seek to recover costs from third
parties in respect of issues around fire safety and reinforced concrete
frames. In May 2025, the Group won a landmark Supreme Court case which
clarified the responsibility of companies in the supply chain for remediating
defects in developments they were involved in. This ruling made it clear that
all parts of the industry need to take responsibility and that developers
shouldn't be penalised for proactively taking action to support leaseholders
and residents in advance of litigation. In the judgement, the Supreme Court
noted that we had been "pro-active in investigating, identifying and remedying
building safety defects".
To read more about the judgement, please follow this link:
https://supremecourt.uk/cases/uksc-2023-0110
Current trading and future outlook
While we delivered a solid trading performance during FY25, private homebuyer
confidence remains fragile given the continuing affordability challenges they
face, particularly around deposit requirements, and general concerns on
employment, future taxation policy and mortgage rates, which remain elevated
when compared to recent years, notwithstanding increased mortgage market
competition and mortgage availability.
We remain encouraged by the Government's focus on housebuilding and its
reforms to the planning system which, in time, should have a significant
positive effect. However, to see housebuilding volumes accelerate and reach
the numbers needed to tackle our housing crisis, Government needs to also
address demand-side constraints on homebuyers, both institutional and private,
which will ultimately drive housebuilding activity. In the meantime, it is
vital that Government policy, in particular around taxation and regulation, is
focused on creating a positive and stable environment for business and
investment.
As planning policy reforms are implemented at a local, practical level, we are
in a uniquely strong position to take advantage of any improvements in the
economic environment and accelerate volume delivery through our three leading
brands, and we remain confident in our medium-term ambition to deliver 22,000
high-quality homes a year.
We entered FY26 with a solid forward sales position and at 24 August 2025 we
are 45% forward sold with respect to private wholly owned home completions for
FY26 (25 August 2024 for FY25: 42%(R), 45%(A)), with 48% of the private order
book exchanged (25 August 2024: 52%(R), 50%(A)).
Our overall net private reservation rate through to 24 August 2025 has
slightly reduced to 0.55 (FY25: 0.58(R), 0.56(A)) due to the lack of
reservations into the private rental sector and other multi-unit sales (FY25:
0.03(R&A)). Since the start of FY26 however, our current year reservation
rate, excluding PRS and other multi-unit sales, has remained resilient at
0.55, 3.8% ahead of the comparable period last year.
The composition of our forward sales on 24 August 2025 and the order book
movement since 29 June 2025 are included in the following tables, along with
the aggregated performance of Barratt and Redrow in the comparable period in
2024:
24 August 2025 25 August 2024 Variance %
£m Homes £m Homes £m Homes
Private 2,139.1 5,403 2,109.1 5,476 1.4% (1.3%)
Affordable 806.7 4,398 759.8 4,523 6.2% (2.8%)
Wholly owned 2,945.8 9,801 2,868.9 9,999 2.7% (2.0%)
JV 195.1 549 151.1 399 29.1% 37.6%
Total 3,140.9 10,350 3,020.0 10,398 4.0% (0.5%)
Current year Prior year(A) Variance %
Private Total(3) Private Total(3) Private Total(3)
29 June 2025 / 30 June 2024 4,781 9,835 4,505 9,426 6.1% 4.3%
Reservations 1,716 1,750 1,903 2,074 (9.8%) (15.6%)
Completions (1,094) (1,235) (932) (1,102) 17.4% 12.1%
24 August 2025 / 25 August 2024 5,403 10,350 5,476 10,398 (1.3%) (0.5%)
Based on the trading year to date, with broadly stable sales rate and average
sales outlets, along with private rental sector reservations expected over the
year ahead, we continue to anticipate total home completions, including JVs,
will be in a range of 17,200 to 17,800 in FY26, including c. 600 completions
from our JVs, whilst ensuring we maintain our industry-leading standards of
build quality and customer service. This also assumes a normal autumn selling
season, which is our current expectation, however the extended period through
to the Budget, now scheduled for 26 November 2025, and related uncertainties
around general taxation and that applicable to housing, has introduced
additional risk. We also currently estimate that between 40% and 45% of our
total home completions will be delivered in the first half of FY26.
We are executing the integration of Redrow at pace, we have a strong balance
sheet and a solid forward sales position, and we believe we are well
positioned as we move forward in FY26.
David Thomas
Chief Executive
16 September 2025
Notes:
R. Reported denotes a Barratt Developments PLC Group (Barratt Group) reported
metric based on the standalone performance of the Barratt Group in the
comparable reporting period.
A. Aggregated denotes an aggregated metric based on the reported performance
of the Barratt Group in the comparable reporting period 1 July 2023 to 30 June
2024 and includes the performance of the legacy Redrow plc Group (Redrow
Group) from 24 August 2023 to 30 June 2024, to provide comparability on
operational and financial performance.
Redrow Group data is based on Redrow plc's standalone accounting policies and
therefore excludes any impact of policy alignments made since the acquisition.
Aggregated adjusted measures are also prepared and presented on the same
basis.
The aggregated value comparatives have not been audited or reviewed by Barratt
Redrow plc's auditor.
Our four strategic priorities for growth
1. Delivering a best-in-class customer offering
Two of our values are "we do it for our customers" and "we do it right". This
underpins the way we operate and the decisions we make. When buying a Barratt,
David Wilson or Redrow home, customers put their trust and faith in our
unrivalled track record of delivering quality homes with the service to match.
Maintaining this record is the right thing to do. That is why we made it our
first strategic priority.
To ensure we stay up to date with customers' wants and needs, we have an
established customer insight programme. Over the past three years, the
programme has generated 34,200 interactions, involving over 2,800 of our own
customers and 31,400 of those in the market to buy a new home. Using a mix of
quantitative and qualitative research, this programme helps us understand
customer needs and preferences, particularly in relation to the price, quality
and overall offer of our homes, services and brands.
It supports business decisions, and its objectives include delivering
high-quality data to promote a clear understanding of customer needs, ensuring
the customer voice is embedded and recognised in every part of our business.
Customer choice
All our customers have their own unique situations, requirements and budgets.
That is why we aim to give our customers choices wherever possible.
This choice starts right at the beginning of the home buying process. With our
three, differentiated brands, our customers are given an unparalleled range of
house types to choose from. In general, we see first-time buyers and young
families opting for Barratt Homes, mover-uppers and growing families choosing
David Wilson Homes, and downsizers and premium purchasers selecting Redrow.
In addition to its standard house types, Redrow also offers a "Lifestyle"
range. This range sees three-bed homes built on the footprint of four-bed
homes. Each bedroom has its own ensuite, and the added bedroom space is
particularly popular with downsizers.
Once a home has been picked, customers have the choice of our buying schemes.
From part-exchange to the Own New Rate Reducer, to schemes for key workers and
armed forces personnel, we have a scheme to suit every buyer and help them
make their purchase.
Once a customer has reserved their home, next comes the exciting part -
personalising their space. Customers have the choice to upgrade a wide variety
of fixtures and fittings including flooring, kitchens and wardrobes, depending
on build stage.
Build performance and quality
In common with our commitments around customer service, our build quality has
an unrivalled track record. At the 2024 NHBC awards, 111 of our site managers
won Pride in the Job awards, 29 went on to win "Seals of Excellence" and, of
those 29, three were regional winners. To win a Pride in the Job award is a
great achievement and we are very proud of all our site managers.
In 2025, for a record 21 consecutive years, our site managers have won more
NHBC Pride in the Job awards than any other homebuilder, with 115 awards.
The NHBC also monitors Reportable Items (RIs). RIs are any defects found
during any inspection. For a sixth consecutive year Barratt legacy operations
registered the lowest RIs at 0.12 (FY24: 0.13) per NHBC inspection amongst the
major housebuilders. Over the same period Redrow operations registered RIs of
0.23 per inspection, a considerable improvement on the previous FY24
performance at 0.29.
We don't just build to regulations we are constantly looking at the overall
quality of our developments and ways to enhance the environment where we
develop. Since completing the acquisition of Redrow, we have begun refreshing
our placemaking vision. We intend to lead the industry, drawing on and
expanding on the existing placemaking frameworks "Great Places" and the
"Redrow 8". It will be customer centred and focused on integrating the
business' three brands seamlessly with a view to optimising sales, as well as
providing confidence to stakeholders that we will deliver high-quality new
homes and ever more sustainable communities.
Customer service
Our customer service record is unrivalled. For 16 consecutive years our
customers, through the HBF's Customer Satisfaction Survey, have awarded us a 5
Star rating for customer satisfaction. No other homebuilder comes close to
this record. Being a 5 Star builder means that over 90% of our customers would
recommend us to a friend. Our latest rating is 96%.
The customer journey starts long before we hand over the keys. The process of
buying a home is often deemed a stressful one, so we do what we can to make it
easier and gather feedback from customers to improve the experience.
For example, we are continuously using customer feedback to improve our sales
centres, our house type portfolio and our incentives and buying schemes.
2. Driving operational efficiency through differentiated brands
Our operating margin and return on capital employed, amongst other metrics,
have been impacted in recent years due to declining volumes, the increased use
of sales incentives and significant inflation in building material costs. As
we look to grow our volumes, we're committed to establishing new and improved
ways of running the business more efficiently.
Multi-branding
Since the acquisition of David Wilson Homes in 2007, Barratt Homes and David
Wilson Homes have successfully delivered hundreds of dual-branded
developments. With the addition of the Redrow brand we can continue to enhance
this strategy.
Multi-branding developments can significantly reduce the time on a development
as Build and Sales teams work on different areas of the development in
parallel. This enhances asset turn and improves return on capital employed.
Our competitive position with respect to larger land development opportunities
is also enhanced. As Barratt Redrow we can draw together the optimisation of
our three brands and skills from across the enlarged Group. This also allows
us to compete for larger land opportunities where competition is often more
limited and where competitive bidders are frequently operating as joint
ventures or reliant on introducing other homebuilders to such developments.
Competing bidders for these larger developments frequently face front-end
risks around securing a trusted, adequately funded and reliable partner in the
bidding process, as well as subsequent risks around the mix of homes and pace
of development and home sales each partner is seeking to generate, which can
create development conflict and unforeseen competitive pressures.
Our experience of dual branding sites also helped us to identify the
opportunities to replot a significant number of Barratt and Redrow
developments and create additional sales outlets. The process of amending
planning permissions for these 45 additional sales outlets (defined as
"revenue synergy sales outlets") is well underway, with 16 applications
submitted at 29 June 2025. In H2 FY27 we expect to see the first completions
from these incremental sales outlets.
Cost synergies
As well as revenue synergies, the acquisition will also deliver at least
£100m of cost synergies, £10m more than originally expected. These synergies
come from procurement-related savings, right-sizing the divisional office
structure and the consolidation of central and support functions. Cost
synergies of £20m were delivered in FY25, around double the figure initially
forecast, and we anticipate further cost synergies of around £45m will be
unlocked in FY26.
When we announced the acquisition of Redrow in February 2024, we indicated
that nine divisional offices would be closed following the completion of the
acquisition. CMA clearance was granted in October 2024, and at the end of the
financial year, six divisional offices have been closed and three are in the
process of closing. We have also announced further consultations on head
office functions to ensure roles are not being duplicated as the businesses
integrate.
The Board rationalisation is now complete, and much of the other PLC and
third-party cost savings have now also been realised.
Other efficiency savings
Outside of the acquisition we have continued to analyse our business processes
and look for efficiency and productivity savings. In FY25 we centralised our
HR function, creating a shared service centre. We also centralised our
divisional payment teams into a single shared service centre to help us
achieve greater consistency, control and efficiency in our payment procedures.
3. Using capital effectively to drive growth
We are committed to maintaining a strong balance sheet. As such, we are
diligent and careful with the way in which we allocate our capital.
Our priority is to identify and purchase the right land to replace the land we
are developing. This is then augmented by acquiring land for expansion
supporting our growth ambitions.
Next, we consider other areas within the business where investment, either
organically or through acquisition, can deliver improvement in the Group's
long-term performance. This may be to enhance our product offer, to unlock
productivity improvements or to address supply chain weaknesses, as well as
meeting innovation and regulatory challenges, or changing market dynamics.
Finally, capital which, after careful Board consideration, is not required can
be returned to our shareholders. We continually assess market conditions to
ensure capital is returned in the most appropriate way - which is why in
February we announced a change to our shareholder returns policy.
Land
Sourcing the right land, in the right locations, at the right price is crucial
for our business. That is why, over time, we have developed multiple land
channels.
Planning and ownership or control status 29 June 30 June
2025
2024
Plots with detailed planning consent 59,645 40,030
Plots with outline planning consent 24,072 15,239
Plots with resolution to grant and other 3,994 2,363
Owned and unconditional land bank (plots) 87,711 57,632
Conditionally contracted land bank (plots) 12,293 8,607
Total owned and controlled land bank (plots) 100,004 66,239
Number of years supply 6.2 4.9
JVs owned and controlled land bank (plots) 8,651 4,631
Strategic land bank (acres) 22,258 16,865
Strategic land bank (plots) 145,043 106,516
Promotional land bank (plots) 113,940 105,359
Land bank carrying value (£m) 5,104.9 3,233.6
First, our divisional land teams are experts in identifying, bidding on and
progressing immediate land opportunities, in their local area, which will
deliver the right homes for the local customer base.
Second, divisions are also able to add to, and draw from, our extensive
strategic land bank. We approved 12,972 plots across 42 planned future sites
to add to our strategic land portfolio during the year (FY24: 4,477(R) plots
and 30 (R) sites). We also converted 5,860 strategic land plots (FY24: 3,723
(R) plots and 3,851(A) plots) into our owned and controlled current land bank
during FY25.
Third, through Gladman, the country's largest land promoter, which operates at
arm's length as a standalone business within Barratt Redrow, we have a
presence in the promotional land sector. Gladman's current portfolio consists
of 113,940 promotional land plots (30 June 2024: 105,359 plots). During FY25,
Gladman secured 10,837 plots (FY24: 9,239 plots) through new promotional
agreements with landowners and, following a number of successful planning
applications, achieved planning consents on 4,524 plots (FY24: 2,804 plots).
Gladman generated revenue of £38.6m (FY24: £13.1m) and an operating profit,
before amortisation of intangible assets, of £8.5m (FY24: £0.2m) in FY25.
The Government's continued planning policy reforms will, we believe, be of
significant benefit to Gladman over the coming years as there remains a
general supply-demand imbalance for new housing across the country and housing
numbers need to be met.
Finally, and most recently, we have formed the MADE Partnership alongside
Homes England and Lloyds Banking Group. We are pleased to be working in joint
venture with these two organisations and have already secured two large sites
since the formation of the Partnership in September 2024 - the 2,000- home
Godley Green Garden Village in Greater Manchester and the 1,500-home Handforth
Garden Village in Cheshire. Barratt Redrow will build on a portion of the
site, while providing other homebuilders with the opportunity to also build on
already serviced land. The MADE Partnership's land holdings are held in joint
venture and are therefore not included in our consolidated land bank details
tabled earlier.
The significant increase in our land bank during FY25 reflected the
acquisition of Redrow which saw 26,149 plots added to our owned land bank at
the date of acquisition.
Throughout FY25 we also approved 22,530 plots across 108 sites (FY24:
12,439(R) plots across 58(R) sites) for future purchase and we invested
£862.5m (FY24: £674.3m(R)) in land acquisitions and the settlement of land
creditors.
At 29 June 2025 the estimated average selling price of plots in our owned land
bank was £366,000 (30 June 2024: 328,000R) and the estimated gross margin in
our land bank, based on the current estimated average sales prices and build
costs at 29 June 2025 was 19.2% (30 June 2024: 18.6%).
We continue to target a regionally balanced land bank portfolio in the medium
term with 3.5 years of owned land and a further 1.0 year of controlled land.
As at 29 June 2025 our land bank comprised 5.4 years of owned land (30 June
2024: 4.3(R) years and 4.7 (A) years) and 0.8 years of controlled land (30
June 2024: 0.6(R) years and 0.6 (A) years).
Our land bank is also commercially strong with respect to its planning status
with 68.0% of our owned and unconditional land bank plots at 29 June 2025
having detailed planning consent (30 June 2024: 69.5%(R) and 70.8% (A)).
During FY25, recognising the fundamental resource constraints on local
authorities and the delay between the announcement and implementation of
Government planning policy reforms, we successfully secured planning consents
on 14,551 plots across 78 developments (FY24: 9,026(R) and plots across 54(R)
developments). As well as progressing planning applications at a local level,
we received nine decisions via planning appeal, with six allowed and three
dismissed. Of the three dismissed, we are actively submitting a revised
planning application on two, addressing the reasons for dismissal, which we
expect to be successful.
Whilst Government planning policy is clear, we still experience many local
authorities delaying or refusing planning applications due to local electorate
pressures. As a result, we may continue to incur significant time delays,
scheduling disruption and additional legal costs to deliver a successful
planning decision on appeal. We welcome plans to introduce a National Scheme
of Delegation which should see schemes, where the principle of development has
already been established, benefit from greater certainty of planning decision
success and minimise avoidable appeals.
To enhance our capital efficiency, we plan to increase the proportionate use
of land creditors on new land purchases, where this meets the requirements and
circumstances of land vendors. This will facilitate the replacement and medium
to longer-term growth of our land bank, while aligning capital outflows more
closely with the development programmes planned for the land acquired.
Investment opportunities
To ensure we maintain and build our competitive advantage and lead the
industry, we are continually looking at areas that will benefit from
incremental investment either in land supply, such as the MADE Partnership JV,
in additional supply chain integration, as exemplified by our initial
acquisition and subsequent expansion in timber frame manufacturing, or through
more investment to secure access to innovative and emerging building products.
Following the acquisition of Oregon Timber Frame in June 2019, the decision
was made to build a second production facility in Derby, built by Wilson
Bowden Developments, which completed in FY24. In FY25 a further £24m has been
invested in further expanding the capability and capacity of the original
production facility located in Selkirk and we anticipate our timber frame
capacity will grow to more than 9,000 homes over the coming three years.
While the cost of building a timber frame home can currently marginally exceed
that of a traditional brick and block constructed home, depending on
geographic location and local labour costs, the reduced build time combined
with increased reliability of supply and the reduced embodied carbon make
increasing our timber frame home production an attractive proposition.
Additionally, using timber frame alleviates a level of future risk around
on-site labour availability and cost. Vertically integrating and expanding
this part of our supply chain will continue to provide benefits for Barratt
Redrow in the years to come.
We are committed to leading the industry through access to land, our build
processes and the adoption of MMC and ensuring we have access to and
understanding of the latest innovations available to the homebuilding
industry.
Shareholder returns
In February 2025 we announced a rebalancing of our shareholder returns policy.
In FY24 and FY25 we have had a dividend cover policy based on 1.75 times
adjusted earnings, before PPA charges associated with the Redrow acquisition.
From FY26 this dividend cover policy will move to 2.0 times adjusted earnings
before PPA charges, along with a commitment to a share buyback of at least
£100m annually.
We believe this will provide the best value to shareholders, while maintaining
our disciplined approach to capital allocation.
Notwithstanding these changes, effective from FY26, we decided to accelerate
the buyback programme into the second half of FY25. Between February and the
end of June we bought back 11.3m shares at a cost of £50.3m.
4. Leading the industry in sustainability
As the leading national sustainable housebuilder, we design and build homes
and communities that are resilient to climate change and are low carbon both
in construction and in use. We were the first national housebuilder to set
science-based carbon emissions targets and we are proud to lead the industry
in this regard. Our strong reputation in the sector is highlighted by our
award-winning developments, national and local socio-economic contributions,
collaboration with our supply chain and across the industry, research and
innovation and our investment in skills.
Nature
Waste reduction and resource efficiency remain priorities within the Group,
alongside carbon reduction across homes, operations and the supply chain. We
focus on innovation, collaboration and high-quality design, supported by
better data and reporting.
We are replacing diesel with hydrotreated vegetable oil on sites, have
trialled a hydrogen telehandler, and are exploring electric plant. To improve
our operational water consumption data, SMART meters are now mandatory for all
new site compounds. We have a track record of delivering cost reductions on
site by driving down operational waste. We reduced construction waste per
100m(2) of house build equivalent area by 44.7% from FY20 to FY24, and we will
apply the learnings from this to continue to reduce waste across the newly
combined Group.
Biodiversity net gain was delivered across all regions ahead of 2024
legislation, with planning permissions in FY25 expected to achieve an 18% net
gain for area habitats, 42% for hedgerow habitats and 23% for river habitats.
Across the Group, 4,273 nature interventions such as bat boxes and nesting
bricks have been installed.
To meet the growing demand for housing in the UK, we adopt MMC to accelerate
build times, reduce waste and carbon emissions, and address shortages in both
materials and skilled labour. From January 2025, timber frame construction
became the standard approach across all Barratt house types, enhancing
efficiency while delivering average life cycle embodied carbon savings of 5
tonnes per home.
We also play a leading role in the Future Homes Hub, working with Government,
housebuilders, supply chain and financial partners to meet climate and
environmental challenges for new homes.
Places
We know that our customers want places that offer sustainable living, are
attractive and well designed, benefit their health and wellbeing and have a
strong sense of community with excellent local links.
The timing of the combined Group and the new Government's priorities for
planning and placemaking have provided us with an excellent opportunity to
develop a new industry-leading placemaking vision. This will address the
requirements of key policy documents and emerging guidance, while drawing and
expanding on the existing placemaking frameworks of both Barratt and Redrow.
The new placemaking vision will be customer centred and focused on integrating
the business' three brands seamlessly with a view to optimising sales, as well
as providing confidence to stakeholders that we will deliver high-quality new
communities.
We are committed to embedding accessible, inclusive and imaginative
opportunities for play in every new community we create. In partnership with
our charity partner Whizz Kidz, we have now launched our Inclusive Play
Manual, providing guidance on delivering accessible and inclusive play
environments.
We continue to promote the benefits of green mortgages, recognising the
running cost advantages of new build homes. We work with lenders and
government both directly and via the Future Homes Hub to align priorities and
promote enhancements to new build lending criteria, processes and products.
People
We believe that everyone has the right to be respected and treated fairly at
work. We do the right thing, nurturing diverse talent and prioritising the
health and safety and wellbeing of our people and partners.
Our graduate and trade apprenticeships have seen an increase in female and
ethnic minority background representation across the year, and we launched our
first female-focused cohorts for Bricklaying and Carpentry Level 2
apprenticeships. We offer several training and support programmes including
our Catalyst and Spotlight courses, both of which are aimed at minority groups
within the business - women and ethnic minorities respectively.
We began our human rights supply chain risk assessment and improved monitoring
and reporting of labour exploitation on our sites. See www.barrattredrow.co.uk
for our modern slavery statement.
Benchmarks and awards
We continue to demonstrate excellent performance in external benchmarks. We
maintained our position as the only UK housebuilder on the CDP Climate Change
A List for Leadership, one of fewer than 500 companies worldwide, and we were
listed in the second edition of the TIME "World's Most Sustainable Companies"
Special Report - the only housebuilder to be named.
Chief Financial Officer's Review
Solid financial performance
Introduction
Against a challenging market backdrop, we have delivered a solid financial
performance this year. While Group total home completions came in slightly
below our previous guidance, primarily due to the impact of fewer
international and investor completions than expected in London, we delivered
adjusted profit before tax slightly ahead of market expectations. This mainly
reflected the better than anticipated delivery of cost synergies, at £20m,
relative to our initial estimate of c. £10m in October 2024.
We are already seeing tangible benefits from the Redrow acquisition with good
progress on integration activities: our new divisional management structure is
in place, six divisional offices have been closed and three are in the process
of closing and we are delivering cost synergies ahead of schedule with our
plans for revenue synergies progressing well.
Our strong balance sheet and disciplined approach to capital allocation
allowed us to announce an annual share buyback programme of at least £100m
from FY26, with a £50m tranche of that programme executed in the second half
of FY25.
Results for the 52 weeks to 29 June 2025
To help improve the comparability of the enlarged Group's performance since
the acquisition of Redrow plc on 21 August 2024, in this report we have
presented, in addition to comparative numbers as reported for the prior
financial year, unaudited metrics on an aggregated basis, which includes the
performance of the legacy Redrow plc group (the "Redrow Group") from 24 August
2023 to 30 June 2024, excluding accounting policy and purchase price
allocation adjustments. Purchase price allocation adjustments relate to the
unwind through the income statement of fair value adjustments made to the
balance sheet of Redrow plc when it was acquired by the Group under IFRS 3
Business Combinations.
Year ended 30 June 2024
Metric 52 weeks to 29 June 2025 Aggregated performance including Redrow plc from 24 August 2023(A) Reported performance (excluding Redrow plc)
Total home completions 16,565 17,972 14,004
Revenue (£m) 5,578.3 5,689.9 4,168.2
Adjusted gross profit (£m) 875.2 973.2 689.0
Reported gross profit (£m) 784.8 793.7 509.5
Adjusted profit before tax (£m) 488.3 585.7 385.0
Reported profit before tax (£m) 273.7 363.2 170.5
Home reservation activity
Our net private reservation rate per sales outlet per week increased by 16.4%
to 0.64 when compared with the aggregated performance of 0.55(A) for Barratt
and Redrow in the comparable period (FY24: 0.58(R)). This included a
contribution of 0.08 (FY24: 0.08(R); 0.06(A)) from reservations into the
private rental sector ('PRS') and other multi-unit sales.
As well as our ongoing strategic partnership with Lloyds Living, reservation
activity was complemented by sales to a growing portfolio of PRS partners.
Overall, we successfully secured 1,693 (FY24: 1,452(R)) private reservations
through PRS-related activity and the strength of our relationships with
Registered Providers and other multi-unit investors, which supported total
private completions in FY25 and our future order book for completions in FY26
and FY27.
We saw some improvement in mortgage market competition and availability but
underlying private sales activity has remained relatively flat, driven by the
uncertain economic backdrop and the ongoing affordability challenges faced by
homebuyers. The London housing market has been particularly challenging with
weak demand from both domestic and international homebuyers. Across the Group,
the improved reservation rate during the first half was broadly maintained
through the second half of the year while pricing and incentive levels across
the two periods remained similar.
Home completions
Total home completions (including JVs) reduced by 7.8%(C) to 16,565 from
17,972 in FY24 (FY24: 14,004(R)). While home completions declined 12.0%(C) in
the first half, the stronger order book entering the second half and solid
reservation rates meant that second half volume was 4.7%(C) lower year on
year. As noted above, in Q4 we saw lower than expected completions at several
of our sites in London, primarily driven by international customers and PRS
investors, a large proportion of which are expected to complete in FY26.
Income statement
Group revenue was £5,578.3m in FY25 (FY24: £4,168.2m(R); £5,689.9m(A)),
from Group total home completions at 16,565 (FY24: 14,004(R); 17,972(A)).
The average selling price (ASP) of our wholly owned completions increased by
6.3%(C) to £343.8k (FY24: £306.8k(R); £323.4k(A)), with affordable homes'
ASP increasing to £177.1k (FY24: £165.3k(R); £176.0k(A)) and accounting for
18.1% (FY24: 20.8%(R); 23.8%(A)) of wholly owned completions. Our private ASP
increased by 3.0%(C) to £380.6k (FY24: £343.9k(R), £369.5k(A)), largely due
to changes in product and geographic mix.
Adjusted gross profit reduced by 10.1%(C) to £875.2m (FY24: £689.0m(R);
£973.2m(A)). We experienced a 140 basis point decline in adjusted gross
margin in the period to 29 June 2025, compared to the FY24 adjusted aggregated
performance. This reflected the impact of home completion volume gearing, with
house prices and build costs broadly stable at a combined Group level, as well
as the purchase price allocation and accounting policy alignment impacts on
Redrow's adjusted gross profitability.
The purchase price allocation impact in FY25 reduced adjusted gross profit by
£95.1m with a further reduction of an estimated £25m in relation to the
impact of alignment of accounting policies. These adjustments, along with the
operational gearing impact of lower home completions in the period, resulted
in adjusted gross margin of 15.7% (FY24: 16.5%(R); 17.1%(A)). Adjusted gross
margin before the impact of purchase price allocation adjustments was 17.4%
(FY24: 16.5%(R); 17.1%(A)).
Incorporating net adjusting item charges in cost of sales of £90.4m, relating
to legacy property costs (FY24: £179.5m(R&A) charge), resulted in
reported gross profit of £784.8m and a reported gross margin of 14.1% (FY24:
12.2%(R); 13.9%(A)).
Administrative expenses before adjusting items were £379.0m (FY24:
£314.5m(R); £396.5m(A)) and included:
· the consolidation of Redrow's administrative expenses from 21 August 2024;
· Group-wide inflationary salary increases at an average of c. 3%;
· estimated synergies in relation to central and divisional administrative
expenses of £16m; and
· an increase in sundry income to £18.5m, when compared with £14.8m in
FY24(R&A).
After deducting administrative expenses before adjusting items and a net gain
of £3.9m on part-exchange activities (FY24: £2.1m(R&A)), the Group
delivered an adjusted profit from operations of £500.1m (FY24: £376.6m(R);
£578.8m(A)), with an adjusted operating margin of 9.0% (FY24: 9.0%(R);
10.2%(A)).
To help the understanding of underlying margin performance across the year,
the following reconciliation is provided detailing the main components of
margin movements in the period:
The Barratt Redrow adjusted operating margin was stable at 9.0% in FY25 (FY24:
9.0%(R)) with several moving parts:
· Completion volumes: the decline in wholly owned completions created a 120 bps
negative impact.
· Net inflation: modest sales price improvements combined with broadly flat
build cost inflation produced a 110 bps positive impact.
· Completed developments provision: after reflecting the increasingly extended
time periods being experienced in relation to the adoption of roads and public
space by local authorities on completed developments, lower year on year
charges in the period created an 80 bps positive margin impact.
· Redrow, mix and other items: Redrow's standalone performance, along with
changes in sales mix, profitability on part-exchange properties and a policy
amendment in relation to land options drove the remaining net 70 bps positive
margin impact.
· Synergies: the estimated crystallisation of cost synergies of £20m had a 30
bps positive impact.
The adjusted operating margin was also then finally impacted by IFRS 3
purchase price allocation adjustments which reduced adjusted operating profit
by £95.3m and the Group adjusted operating margin by a 170 bps.
Adjusted items
Adjusted items recognised within reported operating profit in FY25 were
£214.6m (FY24: £201.9m(R); £209.9m(A)) and consisted of:
- costs incurred in respect of legacy properties of £106.2m gross and £90.4m
after recoveries from third parties (FY24: £180.0m(R&A) gross;
£179.5m(R&A) net) along with associated legal fees of £2.2m;
- costs in relation to the Redrow acquisition of £36.2m (FY24: £22.4m(R);
£30.4m(A));
- reorganisation and restructuring costs to unlock cost synergies of an
estimated £56.8m (FY24: £nil(R&A)); and
- CMA voluntary commitments costs of £29.0m (FY24: £nil(R&A)).
After adjusted items, the reported operating profit was £285.5m (FY24:
£174.7m(R); £368.9m(A)) and the reported operating margin for the period was
5.1% (FY24: 4.2%(R); 6.5%(A)).
Net finance charges were £29.0m (FY24: £6.5m(R); £8.0m(A)). This reflected
a reduced benefit from interest received on cash on deposit, with finance
income reducing to £35.6m (FY24: £47.2m(R)), as well as an increase in
finance costs to £64.6m (FY24: £53.7m(R)).
The step up in finance costs reflected non-cash interest costs which included:
· The imputed interest charged with respect to land creditors, at £17.5m (FY24:
£10.7m(R)) reflected higher average land creditors during the year; and
· An increased imputed finance charge from unwinding the discount attached to
legacy property provisions of £33.6m (FY24: £29.5m(R)), reflecting the
increase in legacy property provisions at the start of the financial year and
provisions acquired through the acquisition of Redrow.
We now anticipate FY26 net finance costs will be around £50m, comprising
c. £5m of net cash finance income and c. £55m of non-cash finance charges,
reflecting both a further reduction in cash deposits and the legacy property
provision position at the year-end.
The Group's reported share of JV profit was £17.2m (FY24: £2.3m(R&A))
with no adjusting charges associated with legacy properties (FY24:
£12.6m(R&A) charge); as a result, the adjusted share of JV profit was
£17.2m (FY24: £14.9m(R&A)).
Adjusted profit before tax was £488.3m (FY24: £385.0m(R); £585.7m(A)) and,
after adjusted items, profit before tax was £273.7m (FY24: £170.5m(R);
£363.2m(A)). Adjusted profit before tax and the impact of PPA adjustments,
totalling £103.3m, was £591.6m.
The Group recognised £87.3m of total tax charges (FY24: £56.4m(R)) at an
effective rate of 31.9% (FY24: 33.1%(R)), with the tax rate impacted by the
absence of tax deductibility with respect to Redrow transaction costs reported
in adjusted items. The expected tax rate for the Group in FY26 is 29% on
adjusted profit before tax, including Residential Property Developer Tax of
4%.
Adjusted basic earnings per share reduced to 25.5 pence per share (FY24: 28.3
pence(R) per share). The step up in adjusted pre-tax profitability was offset
by the increase in average shares in issue, following the acquisition of
Redrow, and resulted in a 9.9% reduction in adjusted earnings per share.
Adjusted basic earnings per share before the impact of PPA adjustments was
30.8 pence per share. This measure is also used in determining our dividend
per share for FY25 and based on dividend cover of 1.75 times, resulted in a
full year dividend of 17.6 pence per share (FY24: 16.2(R) pence per share).
Basic earnings per share increased by 15.3% to 13.6 pence per share (FY24:
11.8 pence(R) per share).
The Group's ROCE declined to 9.0% (FY24: 9.5%(R)) due to operational leverage
and the impact of £95.3m of PPA adjustments which reduced adjusted operating
profit. The Group's ROCE before the impact of PPA adjustments equated to
10.7%.
Acquisition of Redrow plc
The Group completed the acquisition of Redrow plc on 21 August 2024. The fair
value of the consideration paid of £2,528.9m included a premium of £557.8m
to the book value of the net tangible assets of the Redrow Group at the date
of completion. As required by IFRS 3: 'Business Combinations', the
identifiable assets and liabilities of Redrow have been recognised on the
Group Balance Sheet at their fair value at the acquisition date.
The fair values were provisional as at the half year and have been revised
during the second half as our assessment of building safety and inventories
was completed. The most significant adjustment to the fair value related to a
review of Redrow's portfolio of reinforced concrete frame buildings. As a
result of this review and the total revision to legacy property provisions and
inventories fair values of £131.8m on pre-tax basis and £93.6m on a post-tax
basis, goodwill has increased to £321.9m. The excess of the consideration
over the net tangible assets acquired at £557.8m is recorded as goodwill
(£321.9m) and intangible assets (£235.9m).
The final net assets and liabilities recognised as a result of the acquisition
are detailed in note 9. Fair value adjustments to the Redrow book value of
assets and liabilities, after reclassification of balances to align with their
presentation in the Barratt Group financial statements, are shown in the next
table:
Redrow plc - fair value adjustments Explanatory note Fair value adjustment £m
£m
Inventories
- Land options 1(a) 71.3
- Land not in development 1(b) (60.5)
- Land and work in progress in development 1(c) 120.4
Provisions
Legacy property provisions 2(a) (144.5)
Completed development provisions 2(b) (17.2)
Intangible assets
Brand 3(a) 231.8
Customer order book 3(b) 4.1
Other items including tax liabilities and other creditors 35.5
Deferred tax on adjustments above 4 (93.7)
Goodwill 5 321.9
Total adjustment to net assets acquired 469.1
Explanatory notes
1. The market value of land options on which planning has progressed; land not in
development; and land and work in progress in development were adjusted to
fair value.
(a) In relation to land options held by Redrow, progression on planning resulted
in an increase in their carrying value of £71.3m.
(b) Land not yet under development was adjusted to reflect recent market
conditions, resulting in a reduction in carrying value of £60.5m.
(c) Land and work in progress in development was valued to reflect its current
stage of development. This resulted in an increase in carrying value of
£120.4m.
2. Redrow's provisions have been adjusted to fair value.
(a) Redrow legacy property provisions were increased. This reflected the
requirement under IFRS 3 to bring contingent liabilities onto the balance
sheet, as well as the additional provision required in relation to reinforced
concrete frame issues identified in the second half of FY25. After the impact
of discounting there was a net increase in the provision carrying value of
£144.5m.
(b) The reappraisal of the Redrow completed development provision resulted in a
£17.2m increase in the provision.
3. In relation to intangible asset recognition.
(a) The fair value of the Redrow brand is £231.8m and based on the assumption
that the brand will be maintained into the future, the brand will not be
amortised.
(b) The Redrow order book had a fair value uplift of £4.1m reflecting the
embedded margin at the date of acquisition.
4. All adjustments are anticipated to be subject to the Group's effective tax
rate at 29% and a deferred tax liability of £93.7m has been recognised in the
balance sheet at acquisition and will be released as these various PPA
adjustments impact the income statement over the coming years.
5. The remaining balance of the premium to net asset value of £321.9m was
recognised as goodwill.
We expect these fair value adjustments to largely unwind through the income
statement over a period of 24 months from the balance sheet at acquisition.
The reduction in reported profit before tax was £103.3m in FY25 and the
reduction in reported profit before tax is anticipated will be c. £20m in
FY26 with no further material impacts on profit before tax expected in
subsequent years.
In addition to the fair value adjustments above, the Redrow results for the
period have been consolidated under Barratt Group accounting policies, in
particular the recognition of development-wide costs to complete. This
increased cost of sales in FY25 by an estimated £25m when compared to
Redrow's previous accounting policies.
Building safety
We continue to make progress with the assessment and remediation of buildings
covered under the Building Safety Self-Remediation Terms and Contract, to
which the Group became a signatory on 13 March 2023. The Group is now also
responsible for the legacy Redrow portfolio. The fair value of Redrow's fire
safety provision was recognised at £184.3m at the date of acquisition and
included in the Group's interim results to 29 December 2024.
During FY25 additional legacy property related costs were recognised. These
costs related to:
· charges relating to legacy property provisions, including revaluations, which
totalled £106.2m and which, after recoveries from third parties of £15.8m
and associated legal costs of £2.2m, resulted in an adjusted item charge of
£92.6m; and
· new issues identified post-acquisition with respect to reinforced concrete
frame design and construction and, after investigation, testing and
quantification in the second half of FY25, a revision to the Redrow opening
balance sheet fair value of £131.8m.
Remediation cost estimates for the EWS portfolio remained broadly stable
during the period with an increase of £15.8m in respect of minor cost
increases, offset by a small revaluation of the provision to its present
value. However, additional costs of £93.1m were recognised in the second half
in relation to two specific developments:
· In our Southern region, we identified fire safety-related issues at a
development involving four buildings which were completed in 2002. The
remediation and associated costs with respect to these buildings, having
reviewed their particular design and build characteristics, are estimated to
be £76.4m.
· Additional costs of £16.7m were recognised relating to newly identified
issues at a large development in London which was already part of our EWS
portfolio and provision.
Of the 278 buildings remaining in our 'under review' portfolio, 263 are the
responsibility of our dedicated Building Safety Unit, while the remaining 15
are being remediated through the Government's Building Safety Fund (superseded
by the Cladding Safety Scheme ('CSS') from 1 September 2025). As well as our
"under review" portfolio of buildings we hold responsibility for a further 464
buildings which are not under active review. This "inactive" portfolio has
been appraised for issues relating to external wall systems through a number
of channels including communications with building owners, managing agents and
principal accountable persons as well as external inspections, and direct
communications from residents. Based on these measures, we do not believe
buildings in the inactive portfolio to require any remediation other than that
already provided at the balance sheet date.
To help understand the Group's portfolio in the context of MHCLG reporting of
remediation progress in England, the table below details movements in our
"under review" portfolio across FY25 as well as a reconciliation to the total
buildings where we hold developer responsibility.
Buildings 11m -18m Buildings above 18m Total buildings
Portfolio under review at 1 July 2024 116 146 262
Redrow portfolio additions 10 17 27
Additional buildings identified for review 9 10 19
Buildings remediated or no remediation required (15) (15) (30)
Portfolio under review at 29 June 2025 120 158 278
Residual portfolio under review in England only 243
Inactive portfolio in England 464
Completed remediation in England 128
Total buildings in England per MHCLG definitions 835
Reinforced concrete frames
Following the Redrow acquisition, notwithstanding the absence of any issues
identified during the acquisition process, we commenced a full review of
Redrow's portfolio of reinforced concrete frame buildings, leveraging our
experience gained on these issues over recent years and our commitment to
building safety.
These investigations have identified that remediation works may be required at
up to four Redrow developments in London. Based on our initial estimates, we
have revised the fair values of inventories and legacy property provisions, at
the acquisition date by £131.8m, respectively £26.6m as an adjustment to
inventories and £105.2m as an addition to provisions, which resulted in a net
adjustment to goodwill after tax of £96.3m.
At the year end the portfolio of reinforced concrete frame buildings, across
both Barratt and historical Redrow developments, totalled 165 buildings of
which 75 have been identified as not requiring remediation; 17 have had
remediation works completed; 22 are currently under review; and 51 have had
remediation issues identified and are at various stages in the remediation
process.
Given the design specific nature of remediation works with respect to
reinforced concrete frames and our work and reviews of the design input from
specific design engineers, we anticipate that no further buildings will come
into scope looking forward.
Legacy properties - impacts in FY25
During FY25 we spent £100.6m (FY24: £91.5m(R)) on the remediation of legacy
properties involving both EWS and reinforced concrete frame buildings
remediation works.
At 29 June 2025, provisions relating to building safety were £886.4m and in
relation to reinforced concrete frame buildings were £187.4m. In total the
Group legacy property provision is £1,073.8m and we expect to incur cash
costs of approximately £250m during FY26.
Whilst charges for legacy property-related remediation costs reflect our
current best estimates of the extent and future costs of work required, we may
have to update these figures as assessments and work progress.
Cash flow
Net cash decreased to £772.6m at 29 June 2025 (30 June 2024: £868.5m(R);
£1,164.5m(A)). The main components of the change in net cash position were:
· a £29.3m net cash inflow from operating activities (FY24: £96.2m(R) cash
inflow);
· a £195.8m net cash inflow from investing activities (FY24: inflow of
£12.0m(R)), with Redrow cash balances at the point of acquisition of £194.3m
being the most notable impact; and
· a £320.8m net cash outflow from financing activities (FY24: outflow of
£308.6m(R)), principally reflecting dividends paid of £249.3m (FY24:
£270.6m(R)) and share buyback costs of £50.3m, including stamp duty charges
(FY24: £nil).
The major driver of the decline in net cash inflow from operating activities
to £29.3m in the period was the net cash outflow from working capital and
provisions of £136.8m (FY24: £12.0m outflow) and net interest and tax
payments, which increased to £139.3m (FY24: £73.7m payments) as a result of
the Redrow acquisition.
The net £136.8m outflow (FY24: £12.0m(R) outflow) with respect to working
capital and provisions included:
· investment of £265.5m (FY24: £38.0m(R)) with respect to inventories which
included additional net land investment of £180.6m and additional
part-exchange property costs carried of £38.9m;
· an £89.3m increase (FY24: £87.2m(R) decrease) in payables, which included
land creditor balances increasing by £167.4m (FY24: £33.9m(R) reduction) and
a decrease in trade and other payables of £85.0m (FY24: £53.3m(R)
reduction); and
· a £40.5m increase in provisions (FY24: £132.8m(R) increase) created in large
part by the additional legacy building safety charges incurred in FY25. During
FY25, we spent £100.6m (FY24: £91.5m(R)) on the remediation of legacy
properties.
Balance sheet
Our balance sheet remains strong despite the scale of the Redrow acquisition,
and the purchase price allocation adjustments required by IFRS 3, detailed
earlier.
The Group's net assets at 29 June 2025 were £7,873.0m (30 June 2024:
£5,439.1m(R); £7,522.1m(A)) after the payment of dividends totalling
£249.3m (30 June 2024: £270.6m(R)) and £50.3m incurred on the share
buyback, including stamp duty charges. Looking at the assets and liabilities
which make up our balance sheet:
· Goodwill increased to £1,174.8m (30 June 2024: £852.9m(R&A)), reflecting
goodwill of £321.9m recognised on the acquisition of Redrow.
· Intangible assets, which include brands, customer contracts and contract
relationships, increased to £408.4m (30 June 2024: £184.5m(R&A)) with
the recognition of intangible assets of £235.9m with respect to the Redrow
acquisition and amortisation charges of £14.5m (FY24: £10.4m(R)).
· The total investment in our land bank increased by £1,871.3m to £5,104.9m
(30 June 2024: £3,233.6m(R), £4,751.6m(A)) with the underlying increase in
land investment, excluding the impact of the Redrow acquisition, equating to
£180.6m.
· Construction work in progress was tightly controlled and increased to
£2,979.0m (30 June 2024: £1,829.4m(R); £2,928.4m(A)) with underlying
construction work in progress, excluding the Redrow acquisition impact,
increasing by £32.7m.
· Investment in land promotion activity at Gladman was once again tightly
controlled with a £0.9m increase in promotional agreement work in progress to
£112.4m (30 June 2024: £111.5m(R&A)).
· Part-exchange properties and other inventories increased to £144.3m (30 June
2024: £103.7m(R&A)) reflecting the importance of part exchange for many
of our customers, as well as the initial introduction of our comprehensive
part-exchange schemes to Redrow sales outlets. Part-exchange inventory was
however carefully controlled with 371 of the total holdings of 549
part-exchanged homes sold at the year end (30 June 2024: 309 sold of total
holdings of 429 homes(R)).
· At 29 June 2025, the Group held net cash balances of £772.6m (30 June 2024:
£868.5m(R); £1,164.5m(A)).
Looking at the key liabilities on our balance sheet:
· Reflecting the acquisition of Redrow and the reduced level of building
activity across the year, trade and other payables, excluding land creditors,
reduced on a comparable basis to £1,131.1m (FY24: £754.3m(R);
£1,289.3m(A)).
· With our return to the land market, creating momentum in active land approvals
and increased land purchases, we have sought to secure land on deferred terms
which align our cash spending commitments with the scheduling of development
and home completions. As a result, our land creditors at 29 June 2025
increased to £809.4m (30 June 2024: £472.8m(R); £633.8m(A)) and equated to
15.9% (30 June 2024: 14.6%(R); 13.3%(A)) of the owned land bank.
· During FY26, £437.3m of land creditors will fall due for payment (30 June
2024, during FY25: £307.8m(R); £424.8m(A)). Land creditors due beyond 28
June 2026 totalled £372.1m at 29 June 2025 (30 June 2024: £165.0m(R);
£209.0m(A) due beyond 30 June 2025).
· Provisions increased to £1,371.3m at 29 June 2025 (30 June 2024: £921.2m(R);
£1,100.2m(A)) and included £1,073.8m (30 June 2024: £730.3m(R),
£903.3m(A)) of provisions to cover future costs in connection with building
safety and reinforced concrete frames (see note 13 of the financial statements
for further detail).
Net tangible assets at 29 June 2025 were £6,289.8m and 437 pence per share
(30 June 2024: £4,401.7m(R); 452 pence per share(R)). Land, net of land
creditors and work in progress, totalled £7,274.5m and 505 pence per share at
29 June 2025 (30 June 2024: £4,590.2m(R); 471 pence per share(R)).
Operating framework, capital allocation and returns to shareholders
During the year the Board reviewed the Group's capital allocation framework
considering the Group's business plan, medium-term targets, capital structure
and shareholder feedback. It is vital that our operating framework and
capital structure continue to deliver a stable and solid foundation for the
Group, with shareholders' funds and land creditors funding the longer-term
land requirements of our business and term loans and bank debt funding the
shorter-term requirements for working capital. The Board also decided to
rebalance capital returns between ordinary dividends and share buybacks.
Following Board approval, the Group announced in February 2025 with the half
year results:
· an objective to increase land creditor funding of the Group's land investment
to between 20% and 25% over the medium term;
· an annual share buyback programme of at least £100m per annum from FY26, with
an initial buyback of £50m during the second half of FY25; and
· a refinement to dividend cover, which will move to 2.0 times cover based on
adjusted earnings before purchase price allocation adjustments in FY26 from
1.75 times cover which applied previously.
In pursuing this clear framework, we will seek to ensure that the Group
remains in a strong financial position through the cycle, ready to take both
operational and financial decisions which protect shareholder value as well as
allowing us to take advantage of a market recovery or organic investment
opportunities in the future.
Our operating framework remains unchanged from that disclosed at our HY25
results, and our performance against targets at 29 June 2025 and the
aggregated business at 30 June 2024 are summarised below.
Operating framework Position at 29 June 2025 At 30 June 2024(A)
Land bank c. 3.5 years owned and 5.4 years owned and 0.8 years controlled 4.7 years owned and 0.6 years controlled
c. 1.0 year controlled
Land creditors Increase usage to 20-25% of the land bank over the medium term 15.9% 13.3%
Net cash Target average net cash over the financial year FY25: average net cash of £466.8m FY24: average net cash of £732.3m(R*)
Year-end net cash £772.6m £1,164.5m
Total indebtedness Minimal year-end net indebtedness in the medium term Total net indebtedness of £36.8m Total net surplus of £530.7m
Treasury Appropriate financing facilities £700m Revolving Credit Facility extended to November 2029 and £700m Revolving Credit Facility extended to November 2028 and £200m US
Private Placement Notes maturing August 2027
£200m US Private Placement Notes maturing August 2027
Dividend policy Dividend cover of 2.0x adjusted earnings per share FY25: total ordinary dividend of 17.6 pence per share FY24: total ordinary dividend of 16.2 pence per share**
Note: * Average net cash based on Barratt Developments PLC reported in FY24.
** Dividend reflects the dividend per share declared in respect of each
Barratt Developments PLC share.
Treasury
The Board sets and approves the Treasury Policy and senior management controls
day-to-day operations. The Group's Treasury Policy seeks to maintain an
appropriate capital structure and provide the right platform for the business
to manage both operating risks and opportunities.
Cash management and relationships with our banking partners are co-ordinated
centrally by Group Treasury. During the year, we agreed the final one-year
extension to our £700m Revolving Credit Facility (RCF) with our lenders,
extending its term to November 2029. Our £200m US Private Placement Notes
remain in place and are repayable in August 2027.
Tax
The Group does not enter into business transactions for the sole purpose of
reducing potential tax liabilities. The Group's tax strategy is to only use
any available reliefs and exemptions, which have been set out in current tax
legislation, to minimise the Group's tax liabilities.
The effective rate of corporation tax, including RPDT, for the 52-week period
ended 29 June 2025 was 31.9% (FY24: 33.1%(R)) which, reflecting the impact of
the non-deductible Redrow transaction expenses, was above the standard
effective rate of tax of 29% (inclusive of RPDT at 4%) (FY24: 29% inclusive of
RPDT at 4%).
Pensions
Defined contribution pension arrangements are in place for all current
employees. Defined contribution scheme charges for qualifying employees
totalled £32.5m (FY24: £21.2m(R)). Pension contributions are based upon a
fixed percentage of each qualifying employee's pay and once paid, the Group
has no further obligations under these schemes. The Redrow group of companies
also operates the Redrow Staff Pension Scheme which, in part, comprised a
defined benefit pension plan. This scheme was closed to new entrants from July
2006 and closed to future accrual from 1 March 2012. The Group made no
contributions to this scheme in FY25 and does not expect to make contributions
in FY26. At 29 June 2025 a scheme surplus of £4.2m has been recognised in the
Group Balance Sheet.
Guidance for FY26
Total home completions c. 17,200-17,800 total home completions including c. 600 JV completions
Affordable mix expected to be c. 20%
Average sales outlet movement Broadly flat on FY25
(inc. JVs)
Build cost inflation c. 1-2% including estimated procurement-based cost synergies
PPA impacts on adjusted profit before tax c. £20m charge
Adjusted administrative expenses c. £400m (including amortisation of intangible assets of c. £10m and
estimated incremental cost synergies of c. £30m)
Synergy savings Incremental c. £45m within adjusted profit before tax (£65m cumulative)
Interest charges c. £50m interest charge for the year
(c. £5m cash credit, c. £55m non-cash charges)
Land approvals Expect to replace plots utilised in the year
Land cash spend c. £0.8bn - £0.9bn
Land creditors 15% - 16%
Building Safety spend c. £250m
Year-end net cash c. £0.4bn - £0.5bn
Taxation Tax rate on adjusted earnings anticipated at 29%, reflecting current
corporation tax rate and 4% RPDT
Ordinary dividend cover 2.0x ordinary dividend cover based on adjusted earnings per share and
excluding purchase price allocation (PPA) fair value adjustments
Well positioned for FY26
We have a strong balance sheet, a solid forward sales position, and we are
executing the integration of Redrow at pace, which stands us in a strong
position as we enter FY26.
Homebuyer confidence does remain fragile, reflecting uncertainties around the
wider economy and taxation, and mortgage rates remain elevated compared to
recent years but there remains a long-term under-supply of new homes and we
continue to see solid mortgage market competition and availability.
Our teams are focused on securing our targeted cost synergies, progressing
incremental sales outlets through planning to enhance our sales outlet
position in FY27 and FY28 and ensuring we optimise our land buying, as well as
our build and sales programmes, to offer the greatest choices to our customers
whilst driving efficiency in our use of capital and value for all our
stakeholders.
Mike Scott
Chief Financial Officer
16 September 2025
Notes:
R. Reported and denotes a Barratt Developments PLC Group (Barratt Group)
reported metric based on the standalone performance of the Barratt Group in
the comparable reporting period.
A. Aggregated and denotes an aggregated metric based on the reported
performance of the Barratt Group in the comparable reporting period 1 July
2023 to 30 June 2024 and includes the performance of the legacy Redrow plc
group (Redrow Group) from 24 August 2023 to 30 June 2024, to provide
comparability on operational and financial performance. Redrow Group data is
based on Redrow plc's standalone accounting policies and therefore excludes
any impact of policy alignments made since the acquisition. 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 auditor.
C. Percentage change identified references the change compared with the
aggregated comparator.
Consolidated Income Statement and Statement of Comprehensive Income
52 weeks ended 29 June 2025
Continuing operations Notes 52 weeks ended 29 June Year ended 30 June
2025 2024
£m
£m
Revenue 2 5,578.3 4,168.2
Cost of sales (4,793.5) (3,658.7)
Gross profit 784.8 509.5
Administrative expenses (503.2) (336.9)
Part-exchange income 402.5 333.7
Part-exchange expenses (398.6) (331.6)
Operating profit 3 285.5 174.7
Finance income 5 35.6 47.2
Finance costs 5 (64.6) (53.7)
Net finance costs 5 (29.0) (6.5)
Share of post-tax profit from joint ventures 17.2 2.3
Profit before tax 273.7 170.5
Tax 6 (87.3) (56.4)
Profit for the period, all of which is attributable to the owners of the 186.4 114.1
Company
Other comprehensive expense
Items that will not be reclassified to profit and loss:
Remeasurement of employment benefit obligations and assets (0.7) -
Tax on remeasurements 0.2 -
Other comprehensive expense for the period (0.5) -
Total comprehensive income for the period all of which is attributable to the 185.9 114.1
owners of the Company
Earnings per share from continuing operations
Basic 7 13.6p 11.8p
Diluted 7 13.3p 11.6p
Adjusted items:
Gross profit Operating profit Share of post-tax profit from joint ventures Profit before tax
52 weeks ended 29 June Year ended 30 June 52 weeks ended 29 June Year ended 30 June 52 weeks ended 29 June Year ended 30 June 52 weeks ended 29 June Year ended 30 June
2025 2024 2025 2024 2025 2024 2025 2024
£m £m £m £m £m £m £m £m
Notes
Reported profit 784.8 509.5 285.5 174.7 17.2 2.3 273.7 170.5
Cost associated with legacy properties 4 106.2 180.0 106.2 180.0 - 12.6 106.2 192.6
Legacy property recoveries 4 (15.8) (0.5) (15.8) (0.5) - - (15.8) (0.5)
Costs incurred in respect of the acquisition of Redrow plc 4 - - 36.2 22.4 - - 36.2 22.4
Reorganisation and restructuring costs 4 - - 56.8 - - - 56.8 -
CMA commitment 4 - - 29.0 - - - 29.0 -
Legal fees 4 - - 2.2 - - - 2.2 -
Adjusted profit 875.2 689.0 500.1 376.6 17.2 14.9 488.3 385.0
Statement of Changes in Shareholders' Equity
Group
Share Share Merger Own Share-based Group retained Total Non- controlling interests Total
capital (note 14)
premium
reserve
shares reserve (note 16)
payments £m
earnings due to shareholders of the Company
Group retained
£m
equity
£m £m £m £m £m
earnings due to shareholders of the Company £m
£m
Capital redemption reserve (note 15)
£m
At 1 July 2023 97.4 253.5 1,109.0 4.8 (23.2) 20.8 4,133.6 4,131.2 0.5 5,596.4
Profit for the year being total comprehensive income recognised for the year - - - - - - 114.1 114.1 - 114.1
ended 30 June 2024
Dividend payments (note 8) - - - - - - (270.6) (270.6) - (270.6)
Distributions to non-controlling interests - - - - - - - - (0.4) (0.4)
Share-based payments - - - - - 19.9 - 19.9 - 19.9
Purchase of own shares by EBT - - - - (23.3) - - (23.3) - (23.3)
Transfers in respect of share options - - - - 9.6 (12.1) 4.7 2.2 - 2.2
Tax on share-based payments - - - - - 0.8 - 0.8 - 0.8
At 30 June 2024 97.4 253.5 1,109.0 4.8 (36.9) 29.4 3,981.8 3,974.3 0.1 5,439.1
Profit for the 52 weeks ended 29 June 2025 - - - - - - 186.4 186.4 - 186.4
Remeasurement of employment benefit obligations and assets - - - - - - (0.7) (0.7) - (0.7)
Tax on remeasurements - - - - - - 0.2 0.2 - 0.2
Total comprehensive income recognised for the 52 weeks ended 29 June 2025 - - - - - - 185.9 185.9 - 185.9
Dividend payments (note 8) - - - - - - (249.3) (249.3) - (249.3)
Issue of share capital 1.1 - - - (1.1) - - (1.1) - -
Share capital issued as consideration for the acquisition of Redrow plc 46.6 - 2,482.0 - - - - - - 2,528.6
Buyback and cancellation of shares (1.1) - - 1.1 (0.5) - (49.8) (50.3) - (50.3)
Share-based payments - - - - - 19.2 - 19.2 - 19.2
Transfers in respect of share options - - - - 11.8 (17.5) 4.9 (0.8) - (0.8)
Tax on share-based payments - - - - - 0.6 - 0.6 - 0.6
At 29 June 2025 144.0 253.5 3,591.0 5.9 (26.7) 31.7 3,873.5 3,878.5 0.1 7,873.0
Balance sheet
At 29 June 2025
Group
Notes 29 June 2025 30 June 2024
£m £m
Assets
Non-current assets
Goodwill 10 1,174.8 852.9
Other intangible assets 10 408.4 184.5
Investments in jointly controlled entities 193.2 158.5
Property, plant and equipment 86.4 57.5
Right-of-use assets 47.0 41.2
Retirement benefit surplus 4.2 -
Trade and other receivables 5.0 3.4
1,919.0 1,298.0
Current assets
Inventories 11 8,340.6 5,278.2
Trade and other receivables 241.1 201.9
Current tax assets 79.5 31.8
Cash and cash equivalents 12 969.6 1,065.3
9,630.8 6,577.2
Total assets 11,549.8 7,875.2
Liabilities
Non-current liabilities
Loans and borrowings 12 (200.0) (200.0)
Trade and other payables (382.5) (172.0)
Lease liabilities (37.5) (29.4)
Deferred tax liabilities (109.8) (45.0)
Provisions 13 (588.1) (543.2)
(1,317.9) (989.6)
Current liabilities
Trade and other payables (1,558.0) (1,055.1)
Lease liabilities (17.7) (13.4)
Provisions 13 (783.2) (378.0)
(2,358.9) (1,446.5)
Total liabilities (3,676.8) (2,436.1)
Net assets 7,873.0 5,439.1
Equity
Share capital 14 144.0 97.4
Share premium 253.5 253.5
Merger reserve 15 3,591.0 1,109.0
Capital redemption reserve 15 5.9 4.8
Total retained earnings 3,878.5 3,974.3
Equity attributable to the owners of the Company 7,872.9 5,439.0
Non-controlling interests 0.1 0.1
Total equity 7,873.0 5,439.1
Cash Flow Statement
52 weeks ended 29 June 2025
Group
Notes 52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Net cash inflow from operating activities 29.3 96.2
Investing activities:
Purchase of property, plant and equipment (18.1) (7.2)
Proceeds from the disposal of property, plant and equipment 1.5 0.3
Purchase of intangible assets 10 (2.5) -
Cash acquired on acquisition of subsidiary 9 194.3 -
Payments increasing amounts invested in jointly controlled entities (47.8) (38.3)
Repayment of amounts invested in jointly controlled entities 24.2 4.8
Distributions received from jointly controlled entities 6.1 7.1
Interest received 38.1 45.3
Net cash inflow from investing activities 195.8 12.0
Financing activities:
Dividends paid to equity holders of the Company 8 (249.3) (270.6)
Distribution made to non-controlling interest - (0.4)
Purchase of own shares for the EBT - (23.3)
Buyback of own shares (50.3) -
Payment of dividend equivalents (1.1) (0.5)
Share issue costs on acquisition of subsidiary 9 (0.3) -
Proceeds from the exercise of Sharesave options 0.3 2.7
Repayment of lease liabilities (20.1) (16.5)
Net cash outflow from financing activities (320.8) (308.6)
Net decrease in cash, cash equivalents and bank overdrafts (95.7) (200.4)
Cash, cash equivalents and bank overdrafts at the beginning of the period 1,065.3 1,265.7
Cash, cash equivalents and bank overdrafts at the end of the period 12 969.6 1,065.3
Group
Reconciliation of operating profit to cash flow from operating activities Notes 52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Operating profit 285.5 174.7
Depreciation of property, plant and equipment 9.0 7.5
Profit on disposal of property, plant and equipment (0.5) -
Depreciation of right-of-use assets 18.4 15.2
Leased asset remeasurements 1.2 -
Amortisation of intangible assets 14.5 10.4
Impairment/(reversal of impairment) of inventories 12.4 (2.2)
Share-based payments expense 19.2 19.9
Defined benefit pension scheme administration costs 0.5 -
Imputed interest on long-term payables(1) 5 (51.1) (40.2)
Imputed interest on lease arrangements(1) (2.5) (1.8)
Amortisation of facility fees 5 (1.2) (1.6)
Total non-cash items 19.9 7.2
Increase in inventories (265.5) (38.0)
Increase in receivables (1.1) (19.6)
Increase/(decrease) in payables(1) 89.3 (87.2)
Increase in provisions 40.5 132.8
Total movements in working capital and provisions (136.8) (12.0)
Interest paid (9.9) (10.1)
Tax paid (129.4) (63.6)
Net cash inflow from operating activities 29.3 96.2
(1) The working capital movements in land payables, provisions and leases
include non-cash movements due to imputed interest. Imputed interest is
included within non-cash items in the statement above.
1. Basis of preparation
Cautionary statement
The Chairman's Statement and Chief Executive's Statement commentary contained
in this Annual Results Announcement, including the principal risks and
uncertainties (note 22), have been prepared by the Directors in good faith,
based on the information available to them up to the time of their approval of
this report, solely for the Company's shareholders as a body, so as to assist
them in assessing the Group's strategies and the potential for those
strategies to succeed. Accordingly, they should not be relied on by any other
party or for any other purpose and the Company hereby disclaims any liability
to any such other party, or for reliance on such information for any such
other purpose.
This Annual Results Announcement has been prepared in respect of the Group as
a whole and accordingly matters identified as being significant or material
are so identified in the context of Barratt Redrow plc and its subsidiary
undertakings in the consolidation taken as a whole.
Basis of preparation
Whilst the financial information included in this Annual Results Announcement
has been prepared in accordance with UK adopted IAS in conformity with the
requirements of the Companies Act 2006 and in accordance with UK adopted IFRS,
this announcement does not itself contain sufficient information to comply
with those standards. Full Financial Statements that comply with those
standards are included in the 2025 Annual Report and Accounts, which will be
made available at www.barrattredrow.co.uk during October 2025.
The financial information set out in this announcement does not constitute the
Company's statutory accounts, within the meaning of section 430 of the
Companies Act 2006, for the 52 week period ended 29 June 2025 or the year
ended 30 June 2024, but is derived from those accounts.
The accounting policies adopted are consistent with those followed in the
preparation of the Group's 2025 Annual Report and Accounts which have not
changed from those adopted in the Group's 2024 Annual Report and Accounts
except as disclosed below in the 'Application of accounting standards' section
of this note.
This Annual Results Announcement has been prepared under the historical cost
convention as modified by the revaluation of share-based payments. Following
the acquisition of Redrow plc (now Redrow Limited) on 21 August 2024 by
Barratt Developments PLC (now Barratt Redrow plc), Barratt Developments PLC
was renamed Barratt Redrow plc and the use of 26/52 week accounting reference
dates was adopted. Throughout these Financial Statements the current period is
the 52 weeks ended 29 June 2025 and the comparative period is the year ended
30 June 2024.
Statutory accounts for the year ended 30 June 2024 have been delivered to the
Registrar of Companies and those for the 52 week period ended 29 June 2025
will be delivered following the Company's annual general meeting. The auditors
have reported on those accounts; their reports were unqualified and did not
contain statements under section 498(2) or (3) of the Companies Act 2006.
The auditors have consented to the publication of this Annual Results
Announcement as required by Listing Rule 6.5.1 having completed their
procedures under APB bulletin 2008/2.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of Financial Statements in conformity with UK adopted IFRS
requires the use of estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the Financial Statements and
the reported amounts of revenues and expenses during the reporting period.
Although these estimates are based on the Directors' best knowledge of the
amounts, actual results may ultimately differ from those estimates. The
Directors have made no individual critical accounting judgements that have had
a significant impact upon the Financial Statements, apart from those involving
estimations.
The most significant estimates made by the Directors in these Financial
Statements, which are the key sources of estimation uncertainty that may have
a significant risk of causing a material difference to the carrying value of
assets and liabilities within the next financial period, are:
Legacy property provisions
Building safety
On 13 March 2023, the Group signed the Self-Remediation Terms and Contract,
codifying the commitments previously made under the Building Safety Pledge to
undertake, or to fund, remediation or mitigation works on external wall
systems (EWS) on all buildings of 11 metres or above in England and Wales that
it has developed or refurbished in the 30 years preceding the date of the
Building Safety Pledge, and to reimburse the Government's Building Safety Fund
wherever it has contributed to such activities. The Group has provided for the
cost of fulfilling this commitment, as well as assisting with remedial work
identified at a limited number of other legacy properties where it has a legal
liability to do so, where relevant build issues have been identified, or where
it is considered probable that such build issues exist.
As a result of the acquisition of Redrow plc on 21 August 2024, the Group's
obligations under the Self-Remediation Terms and Contract now include the
relevant buildings developed or refurbished by the Redrow group of companies.
The remediation of these buildings is now being managed with the benefit of
the experience of the combined Group and the fair value of the obligations at
the acquisition date included within provisions. In accordance with IFRS 3, as
described in note 9, this includes the fair value of possible remediation
works on properties for which there is currently no confirmation of works
being required and which are deemed to be low risk, and consequently, in
accordance with IAS 37, no liability was previously recognised in the
financial statements of Redrow plc or its subsidiaries.
At the Redrow acquisition date, 27 buildings with a height of over 11 metres
were under active review by Redrow under the Self-Remediation Contract.
Responsibility for these buildings was assumed by the Group on acquisition.
Following contact from building owners regarding potential issues, a net
further 18 buildings with a height of over 11 metres were added to the Group
scope of works in the period, including one in the Redrow portfolio.
30 June 2024 Responsibility assumed through the acquisition of Redrow Review confirmed no remediation, or remediation completed 29 June 2025
Identified for review
Under review:
Buildings above 18 metres 146 17 10 (15) 158
Buildings between 11 and 18 metres 116 10 9 (15) 120
Total buildings 262 27 19 (30) 278
Developments 92 12 11 (13) 102
At 29 June 2025, of the 278 buildings in the portfolio under review in the
combined Group, 192 were at tender or site mobilisation or were in the process
of being remediated (30 June 2024: 262 buildings, of which 137 were at tender
or site mobilisation or were in the process of being remediated).
As part of the ongoing works to remediate building safety issues, it has been
identified that additional work on four buildings at one development in our
Southern region is required to improve the fire protection of the internal
structure. Additional costs have also been recognised for the remediation of
newly identified issues at a large development in London that was already part
of our building safety provision. An additional £93.1m has been provided at
the reporting date for these two developments, based on the current estimate
of remediation cost.
At 30 June 2024, the Group held £14.8m in relation to completed developments
and £18.8m in relation to reinforced concrete frames in respect of the above
two developments. All work at these developments is being undertaken under a
single remediation programme and therefore all related amounts have been
reclassified to be shown together in the building safety provision.
A further £15.8m has been provided in respect of minor cost increases across
the rest of the portfolio.
The Group continues to review all of its current and legacy buildings where it
has used EWS or cladding solutions, assessing the action required in line with
the latest updates to Government guidance, as it applies, to multi-storey and
multi-occupied residential buildings. All our buildings, including those
incorporating EWS or cladding solutions, were signed off by approved
inspectors as compliant with the relevant Building Regulations at the time of
completion.
Management expect the majority of the works to be completed within four years.
Estimated future costs are discounted to their present value using the yield
for a UK gilt with maturity approximating the duration of the remediation
programme. This is a complex area requiring significant estimates with respect
to the estimates for the number of buildings affected, the individual
remediation requirements of each building and the costs associated with that
remediation (see also note 17).
The investigation of the works required at some of the buildings is at an
early stage and work at others is ongoing. Therefore, it is possible that the
scope of works required could change. If government legislation and regulation
further evolve, or if the estimated timing of work is affected by building
owner engagement or contractor availability, these estimates could change.
In relation to the Group's obligations under the Scottish Safer Buildings
Accord, signed on 31 May 2023, and the Housing (Cladding Remediation)
(Scotland) Act, passed on 21 June 2024, the external wall provision is
recorded on the basis that the standard of remediation required in Scotland is
consistent with England and Wales. This will be determined when the final
contract with the Scottish Government is signed (see note 17).
The estimates are based on key assumptions that will be updated as work and
time progress. The sensitivity of the provision held at the balance sheet date
to the following possible movements in key assumptions is as follows:
Increase/(decrease) in provisions at 29 June 2025
£m
Sensitivity
5% increase in estimated cost 44.3
5% increase in the number of buildings 46.3
100 bps increase in discount rate (11.9)
Margin recognition - In order to determine the profit that the Group is able
to recognise on its developments in a specific period, the Group allocates
site-wide development costs between homes built in the current period and in
future periods. The Group also has to estimate costs to complete on such
developments and make estimates relating to future sales price margins on
those developments and homes, considering expected future sales price and
build cost inflation. In making these assessments there is, inherently, a
degree of uncertainty.
The Group's site valuation process determines the forecast profit margin for
each site. The valuation process acts as a method of allocating land costs and
construction work in progress costs of a development to each individual plot
and drives the recognition of costs in the Income Statement as each plot is
sold. Any changes in the forecast profit margin of a site from changes in
sales prices or costs to complete are recognised across all homes sold in both
the current period and future periods. This ensures that the forecast site
margin achieved on each individual home is equal for all current year
completions and future plots across the development.
Management has performed a sensitivity analysis to assess the impact of a
change in estimated future costs or forecast selling prices for developments
on which sales were recognised in the period. A 2% increase in the forecast
costs to complete would increase site-cost allocation in cost of sales in 2025
by £31.7m, resulting in a reduction in gross margin of 60 bps. A 3% decrease
in forecast private sales prices would increase site-cost allocation in cost
of sales in 2025 by £57.0m, resulting in a reduction in gross margin of 110
bps.
Going concern
In determining the appropriate basis of preparation of the Financial
Statements, the Directors are required to consider whether the Group can
continue to meet its liabilities and other obligations for the foreseeable
future.
The Group's business activities, together with factors that the Directors
consider are likely to affect its development, financial performance and
financial position, are set out in the Chief Executive's statement. The
material financial and operational risks and uncertainties that may affect the
Group's performance and their mitigation are outlined in note 22 to these
Financial Statements, and financial risks including liquidity, market, credit
and capital risks are outlined in note 19.
At 29 June 2025, the Group held cash of £969.6m and total loans and
borrowings of £200.0m, consisting of £200.0m Sterling USPP notes maturing in
August 2027. These balances, set against prepaid facility fees, comprise the
Group's net cash of £772.6m, presented in note 12.
Should further funding be required, the Group has a committed £700m revolving
credit facility (RCF), subject to compliance with certain financial covenants,
that matures in November 2029.
As such, in consideration of its net current assets of £7.3bn, the Directors
are satisfied that the Group has sufficient liquidity to meet its current
liabilities and working capital requirements.
The Group's financial forecasts reflect the outcomes that the Directors
consider most likely, based on the information available at the date of
signing these Financial Statements.
To assess the Group's resilience to more adverse outcomes, its forecast
performance was sensitised to reflect a series of scenarios based on the
Group's principal risks and the downside prospects for the UK economy and
housing market presented in the latest available external economic forecasts.
This exercise included a reasonable worst-case scenario in which the Group's
principal risks manifest in aggregate to a severe but plausible level. This
assumed that average selling prices fall by 10%, sales volumes fall by 15% and
construction costs increase by 2% above the base forecasts, in addition to the
implementation of a building safety levy and increased carbon pricing costs.
The effects were modelled over the 12 months from the date of signing of these
Financial Statements, alongside reasonable mitigation that the Group would
expect to undertake in such circumstances, primarily a reduction in investment
in inventories in line with the fall in expected sales and a 50% reduction in
uncommitted land spend. In all scenarios, including the reasonable worst case,
the Group is able to comply with its financial covenants, operate within its
current facilities and meet its liabilities as they fall due.
Furthermore, reverse stress testing was performed to determine the market
conditions in which the Group would cease to be able to operate under its
current facilities within 12 months from the date of signing these Financial
Statements. Based on past experience and current economic forecasts, the
Directors consider the possibility of this outcome to be remote and have
identified mitigation that would be adopted in such circumstances.
Accordingly, the Directors consider there to be no material uncertainties that
may cast significant doubt on the Group's ability to continue to operate as a
going concern. They have formed a judgement that, at the time of approving the
Financial Statements, there is a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future, being at least 12 months from the date of signing of these Financial
Statements. For this reason, they continue to adopt the going concern basis in
the preparation of these Financial Statements.
Application of accounting standards
During the 52 weeks ended 29 June 2025, the Group has applied accounting
policies and methods of computation consistent with those applied in the prior
year. In addition, accounting policies have been applied in respect of:
· The defined benefit scheme (acquired through the acquisition of Redrow plc );
and
· land options - costs incurred in respect of options to purchase land are held
within inventories at the lower of cost and net realisable value and are
reviewed for impairment at each reporting date.
During the period, the Group has adopted the following new and revised
standards and interpretations which have had no material impact on the
Financial Statements:
· Amendments to IAS 1: 'Classification of Liabilities';
· Amendments to IAS 1: 'Non-current Liabilities with Covenants'
· Amendments to IFRS 16: 'Lease Liability in a Sale and Leaseback Arrangement';
and
· Amendments to IAS 7 and IFRS 7: 'Supplier Finance Arrangements'.
2. Revenue
An analysis of the Group's continuing revenue is as follows:
Residential completions(1) Revenue
52 weeks ended 29 June Year ended 30 June 52 weeks ended 29 June Year ended 30 June
2025 2024 2025 2024
Number
Number
£m
£m
Revenue from private residential sales 12,251 9,618 4,729.2 3,369.7
Revenue from sales to the private rental sector 878 1,048 267.8 298.8
Revenue from affordable residential sales 2,898 2,802 513.3 463.1
Revenue from commercial sales n/a n/a 27.1 21.9
Revenue from planning promotion agreements n/a n/a 38.6 12.9
Sundry revenue n/a n/a 2.3 1.8
16,027 13,468 5,578.3 4,168.2
(1) Residential completions exclude JV completions of 538 homes (2024: 536) in
which the Group has an interest.
3. Operating profit
Operating profit includes all of the revenue and costs derived from the
Group's operating businesses. Operating profit excludes finance costs,
finance income, the Group's share of profits or losses from JVs and tax.
The Group's principal activity is housebuilding. On 21 August 2024, the Group
acquired Redrow plc, another housebuilding business. Since the acquisition,
significant progress has been made in integrating the Redrow business into the
Group's existing housebuilding operation. Financial information is reported to
the Board as the chief operating decision maker on an integrated basis and
decisions regarding resource allocation are made with reference to the
housebuilding business as a whole. Accordingly, housebuilding is considered to
be one operating segment.
None of the other business activities undertaken by the Group are presented
separately to the Board, either individually or in aggregate. These other
business activities in aggregate account for less than 10% of the Group's
revenue, profit and total assets. Therefore, no segmental information is
presented in these Financial Statements.
4. Adjusted items
52 weeks ended 29 June Year ended 30 June
2025 2024
£m
£m
Costs incurred in respect of legacy properties 106.2 180.0
Amounts in respect of legacy properties recovered from third parties (15.8) (0.5)
Adjusted items in cost of sales 90.4 179.5
Costs incurred in respect of the acquisition of Redrow plc 36.2 22.4
Reorganisation and restructuring costs 56.8 -
CMA commitment 29.0 -
Legal fees in respect of recovery above 2.2 -
Adjusted items in administrative expenses 124.2 22.4
Costs incurred in respect of legacy properties by joint ventures - 12.6
Total adjusted items 214.6 214.5
Costs incurred in respect of legacy properties
The adjusted costs in the period, associated with Group legacy properties,
comprise additions to provisions of £108.9m, revaluation of £2.7m and
reimbursements of costs from suppliers recognised directly in the Income
Statement of £15.8m. Further details of movements in provisions are provided
in note 13.
Adjusted items in administrative expenses
On 21 August 2024, the Group acquired 100% of the share capital of Redrow plc
(Redrow) in an all share transaction. Direct costs incurred in respect of the
acquisition are presented as adjusted items.
Following the acquisition of Redrow, the Directors continue to review the
Group's operations in order to most effectively integrate the Redrow business
and to best position the combined Group to realise the synergies of the
combination and achieve its objectives. As a result, the Group has undertaken
certain reorganisation and restructuring activities, for which the aggregate
direct costs are expected to be material. The incremental costs incurred are
presented as adjusted items.
CMA commitment
In July 2025 we announced that we, along with six other UK housebuilders, had
proposed voluntary binding commitments as part of the CMA's ongoing
investigation into the housebuilding sector. The commitment will see us pay
c. £29m towards future affordable housing provision and we have recognised
this payment as an adjusting item in FY25. Our proposed voluntary commitment
did not constitute an admission of any wrongdoing and we welcome the CMA's
consultation on these commitments and will continue to work constructively
with the CMA to enable the investigation to be closed in a timely manner.
5. Net finance costs
Recognised in the Consolidated Income Statement:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m
£m
Finance income
Finance income on short-term bank deposits (31.9) (44.9)
Finance income related to employee benefits (0.2) -
Other interest receivable (3.5) (2.3)
(35.6) (47.2)
Finance costs
Interest on loans and borrowings 9.2 9.4
Imputed interest on long-term payables 51.1 40.2
Finance charge on leased assets 2.5 1.8
Amortisation of facility fees 1.2 1.6
Other interest payable 0.6 0.7
64.6 53.7
Net finance costs 29.0 6.5
The weighted average interest rates (excluding fees) paid in the period were
as follows:
Group
52 weeks ended 29 June Year ended 30 June
2025 2024
%
%
USPP notes 2.8 2.8
6. Tax
All profits of the Group are subject to UK tax.
The current period tax charge has been provided for, by the Group, at a
standard effective rate, comprising corporation tax and RPDT, of 29.0% (2024:
29.0%). The closing deferred tax assets and liabilities have been provided in
these Financial Statements at a rate of 25.0% to 29.0%, depending on whether
RPDT is applicable to the relevant taxable profit (2024: 25.0% to 29.0%), on
the temporary differences giving rise to these assets and liabilities.
Tax recognised in the Income Statement
The tax expense represents the sum of the tax currently payable and deferred
tax.
Analysis of the tax charge for the period
52 weeks ended 29 June Year ended 30 June
2025 2024
£m
£m
Current tax:
UK corporation tax on profits for the period 105.4 54.8
RPDT for the period 14.4 6.1
Adjustment in respect of previous years (3.2) 3.2
116.6 64.1
Deferred tax:
Origination and reversal of temporary differences (32.3) (6.1)
Adjustment in respect of previous years 3.0 (1.6)
(29.3) (7.7)
Tax charge for the period 87.3 56.4
Factors affecting the tax charge for the period
The tax rate assessed for the period is higher (2024: higher) than the
standard effective rate of tax in the UK of 29.0% (inclusive of corporation
tax and RPDT) (2024: 29.0%). The differences are explained below:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m
£m
Profit before tax 273.7 170.5
Profit before tax multiplied by the standard rate of tax of 29.0% (inclusive 79.4 49.4
of corporation tax and RPDT) (2024: 29.0%)
Effects of:
Other items including non-deductible expenses and non-taxable income 11.6 8.0
Additional tax relief for land remediation costs (3.5) (2.6)
Adjustment in respect of previous years (0.2) 1.6
Tax charge for the period 87.3 56.4
Tax recognised in equity
In addition to the amount charged to the Consolidated Income Statement, a net
current and deferred tax credit of £0.8m (2024: £0.8m credit) was recognised
directly in equity.
7. Earnings per share
The earnings per share from continuing operations were as follows:
52 weeks ended 29 June Year ended 30 June
2025 2024
pence
pence
Basic earnings per share 13.6 11.8
Diluted earnings per share 13.3 11.6
Adjusted basic earnings per share 25.5 28.3
Adjusted diluted earnings per share 25.0 27.8
Basic earnings per share is calculated by dividing the profit for the period
attributable to ordinary shareholders of the Company by the weighted average
number of ordinary shares in issue during the period, excluding those held by
the EBT that do not attract dividend equivalents and which are treated as
cancelled.
Diluted earnings per share is calculated by dividing the profit for the period
attributable to ordinary shareholders of the Company by the weighted average
number of ordinary shares in issue adjusted to assume conversion of all
potentially dilutive share options from the start of the period.
Adjusted basic and adjusted diluted earnings per share exclude the impact of
adjusted items and any associated net tax amounts.
52 weeks ended 29 June Year ended 30 June
2025 2024
Profit attributable to ordinary shareholders of the Company (£m) 186.4 114.1
Adjusted items (£m) 214.6 214.5
Tax on adjusted items (£m) (51.7) (54.4)
Adjusted profit attributable to ordinary shareholders of the Company (£m) 349.3 274.2
Weighted average number of shares in issue (million) 1,379.3 974.6
Weighted average number of shares in EBT on which dividends were waived (7.8) (5.8)
(million)
Weighted average number of shares for basic earnings per share (million) 1,371.5 968.8
Weighted average number of shares in issue (million) 1,379.3 974.6
Adjustment to assume conversion of all potentially dilutive shares (million) 18.9 12.5
Weighted average number of shares for diluted earnings per share (million) 1,398.2 987.1
(1) During the period the Company issued 465,663,607 shares as consideration
for the acquisition of Redrow plc and 10,840,048 shares to the EBT to satisfy
Redrow share option schemes. The majority of these shares were issued on 23
August 2024. Following approval on 11 February 2025 the Company purchased
11,270,807 of its own shares in the market, of which 11,162,743 had been
cancelled at the balance sheet date (see note 15).
8. Dividends
52 weeks ended 29 June Year ended 30 June
2025 2024
£m
£m
Amounts recognised as distributions to equity shareholders in the period:
Final dividend for the year ended 30 June 2024 of 11.8p (2023: 23.5p) per 170.5 228.0
share
Interim dividend for the 52 weeks ended 29 June 2025 of 5.5p (year ended 30 78.8 42.6
June 2024: 4.4p) per share
Total dividends distributed to equity shareholders in the period 249.3 270.6
52 weeks ended 29 June Year ended 30 June
2025 2024
£m
£m
Proposed final dividend for the 52 weeks ended 29 June 2025 of 12.1p (year 172.6 170.2
ended 30 June 2024: 11.8p) per share(1)
(1) The cost of the proposed dividend is calculated based upon the number of
shares ranking for dividend at the balance sheet date.
The proposed dividend is payable to all shareholders on the register of
members on 10 October 2025 (other than shares held by the Barratt and Redrow
EBTs on which dividends have been waived).
9. Business combinations
Acquisition of Redrow plc
On 21 August 2024, the Group acquired 100% of the share capital of Redrow plc
in an all share transaction. In accordance with standard practice, the
Competition and Markets Authority (CMA) issued an Initial Enforcement Order
(IEO) requiring the Barratt and Redrow businesses to continue to operate
independently until the CMA had formally accepted the undertakings proposed by
the parties in response to its limited concerns. The CMA accepted these
undertakings and lifted the IEO on 4 October 2024. Management reviewed the
terms of the IEO and concluded that under its terms, the Group Directors were
able to direct the relevant activities of Redrow plc to influence future
returns. The date on which the Group obtained control of Redrow plc was
therefore deemed to be 21 August 2024.
Redrow plc was the parent company of a group of companies involved in UK
housebuilding. The acquisition has been accounted for using the acquisition
method of accounting. The acquisition brings together two housebuilding
businesses with complementary cultures to create a strong brand portfolio that
will offer customers a wider range of house types and accelerate delivery. It
also allows the realisation of significant cost synergies from procurement
savings and a rationalisation of divisional and central costs. Details of the
purchase consideration, net assets acquired and the resulting goodwill are as
follows:
£m
Fair value of shares issued 2,528.6
Share issue costs 0.3
Total purchase consideration 2,528.9
On 23 August 2024, the Company issued 476,309,120 new ordinary shares of 10
pence nominal value to shareholders of Redrow plc. Of these, 10,840,048 were
issued in replacement of shares in Redrow plc held by the Redrow Employee
Benefit Trust, which are excluded from the purchase consideration. Costs of
£0.3m directly attributable to the share issue have been recognised in
equity. The issue of a further 256,258 new ordinary shares of 10 pence nominal
value (of which 194,535 had been issued at 29 June 2025) was accrued as
purchase consideration in respect of share-based payment awards that vested on
the change of control of Redrow plc. The total fair value of the shares issued
and accrued in respect of the purchase consideration was £2,528.6m which was
determined using the closing Barratt Developments PLC share price of 543 pence
at 21 August 2024. The non-statutory premium of £2,482.0m arising on the
shares issued and accrued as consideration for the acquisition has been
credited to the merger reserve in accordance with Section 612 of the Companies
Act 2006. The closing Barratt Developments PLC share price on 6 February
2024, the last business day prior to the announcement of the offer, was 530
pence.
The assets and liabilities acquired have been recognised at their acquisition
date fair values. The carrying values below are presented after
reclassification to align with Group accounting policy.
Net assets and liabilities recognised as a result of the acquisition Carrying value in the consolidated financial records of Redrow plc at Adjustment to fair value Fair value at
21 August 2024
21 August 2024
£m
£m £m
Intangible assets - 235.9 235.9
Tangible fixed assets 18.8 2.0 20.8
Right-of-use assets 8.9 - 8.9
Pension scheme surplus 5.2 - 5.2
Inventories 2,678.1 131.2 2,809.3
Trade and other receivables 45.9 (2.2) 43.7
Cash 194.3 - 194.3
Trade and other payables (634.8) 3.8 (631.0)
Provisions (247.9) (161.7) (409.6)
Lease liabilities (9.2) - (9.2)
Corporation tax asset 1.7 31.9 33.6
Deferred tax liability (1.2) (93.7) (94.9)
Net identifiable assets acquired 2,059.8 147.2 2,207.0
Goodwill (note 10) - 321.9 321.9
Net assets acquired 2,059.8 469.1 2,528.9
The intangible assets acquired comprise the Redrow brand (£231.8m), valued
using a relief-from-royalty method assuming an indefinite useful life, and
customer contracts (£4.1m), valued using a multi-period excess earnings
method and amortised as those contracts are completed. In concluding that a
brand has an indefinite useful life, management consider the Group's current
and future expected strategy. The continued use of the Barratt Homes, David
Wilson Homes and Redrow brands, including the offer of multiple brands on
single sites is a key pillar in the Group's strategy to drive future growth.
A fair value uplift of £131.2m has been recognised on inventories which is
expected to substantially unwind within two years. In determining the fair
value of inventories, management has made judgements in determining the price
that would be received or paid by a market participant at the date of
acquisition. This includes the profit that would be expected to be earned from
land interests and partially completed developments, which has been determined
with reference to market conditions and industry margins. The fair value
adjustment comprises a £71.3m increase in respect of option agreements to
purchase land, a £120.4m increase in respect of live developments, and a
£60.5m decrease in respect of land on which residential development has not
yet started.
The Group holds a provision for the remediation of reinforced concrete frames
on developments designed by two engineering firms whose work has previously
been found to be defective. One of these firms have also been involved in the
design of certain developments constructed by the Redrow group and initial
investigations have determined that it is probable that remediation will be
required to buildings on four of these developments. Based on the current best
estimate of the remediation cost, an adjustment of £26.6m was made to the
fair value of inventories in respect of works required on live developments,
which is included in the fair value adjustment to inventories described above,
and a provision of £105.2m has been recognised as an assumed liability at
acquisition in respect of legacy properties (note 13).
Under IFRS 3, any possible present obligation arising from past events that is
assumed in a business combination, for which the fair value can be reliably
measured, must be recognised as a liability, regardless of whether an outflow
of economic benefits is probable. As a result, the Group has recognised
liabilities in respect of possible remediation works relating to external wall
systems on properties constructed by the Redrow group that have not previously
been recognised in the financial statements of Redrow plc or its subsidiaries.
These amounts reflect the possibility of issues being identified on properties
for which there is currently no confirmation of works being required and are
deemed to be low risk. Being of the same nature and subject to similar
uncertainties over the amount and timing of future outflows, the liabilities
are presented within legacy property provisions (note 13).
Included within provisions at the acquisition date is £114.1m in respect of
costs in relation to completed developments. The majority of such liabilities
were presented in the financial statements of Redrow plc within trade and
other payables but are presented as provisions here to align with the Group's
accounting policy.
The gross contractual amounts receivable for the trade and other receivables
acquired were £22.7m and the best estimate at the acquisition date of the
contractual cash flows not expected to be collected was £5.7m.
Goodwill represents the value of intangible assets that do not qualify for
separate recognition under accounting standards and is attributable to the
anticipated profitability of the individual sites acquired, the complementary
geographic fit and the anticipated operating synergies from the combination.
Subsequent to the acquisition, 2,778,450 share options held by Redrow
employees under the Redrow plc Save As You Earn share option scheme (Redrow
SAYE) were converted to options over shares in Barratt Redrow plc. These
schemes are accounted for as remuneration for post‑acquisition services
provided to the Group.
The acquisition was achieved through a share-for-share exchange with no cash
consideration payable to the former shareholders of Redrow plc and no cash
received for the share issue. The Group's cash inflow in respect of the
acquisition is as follows:
52 weeks ended 29 June
2025
£m
Investing activities:
Cash balances acquired 194.3
Financing activities:
Share issue costs (0.3)
Net inflow of cash 194.0
Included within trade and other payables at the acquisition date was an
accrual for £18.9m of costs incurred in respect of the acquisition by Redrow
plc prior to completion. These costs were subsequently paid and are included
within the net cash inflow from operating activities in the Group Cash Flow
Statement, but not included in the Group Income Statement.
Revenue of £1,538.0m, an adjusted profit before tax of £106.0m, and a profit
before tax of £96.0m are recognised in the Consolidated Income Statement in
respect of Redrow.
If the acquisition had occurred on 1 July 2024, consolidated pro-forma
revenue, adjusted profit before tax, and profit before tax for the period
ended 29 June 2025, based on Redrow's results for the period before tax,
adjusted for intercompany transactions and after alignment with Group
accounting policies, would have been £5,679.4m, £460.0m and £245.4m
respectively.
In the current period, acquisition costs of £36.2m are included in
administrative expenses in the Consolidated Income Statement and in operating
cash flows in the Group Cash Flow Statement. In addition, acquisition costs
of £22.4m were incurred and included in administrative costs in the
Consolidated Income Statement in the year ended 30 June 2024.
Following the acquisition, the Directors continue to review the Group's
operations to most effectively integrate the Redrow business and to best
position the combined Group to realise the synergies of the combination and
achieve its objectives. As a result, the Group has undertaken certain
reorganisation and restructuring activities, for which the aggregate direct
costs are material. The incremental costs incurred are presented as adjusted
items (see note 4).
10. Goodwill and other intangible assets
Goodwill
Group
Goodwill 29 June 2025 30 June 2024
£m £m
Cost
At 1 July 877.4 877.4
On acquisitions in the period 321.9 -
At end of period 1,199.3 877.4
Accumulated impairment losses
At beginning and end of period 24.5 24.5
Carrying amount
At balance sheet date 1,174.8 852.9
During the period, the Group acquired all of the share capital of Redrow plc
(note 9). Goodwill of £321.9m arising on the acquisition has been capitalised
and allocated to the Group's housebuilding business.
The Group's goodwill relating to the acquisition of Wilson Bowden Limited in
2007 has a carrying value of £792.2m and goodwill relating to the 2019
acquisition of Oregon Timber Frame Limited has a carrying value of £13.7m,
both relating to the housebuilding business.
In addition, the Group has goodwill of £47.0m relating to the Group's land
promotion business, following the 2022 acquisition of Gladman Developments
Limited.
Other intangible assets
The Group has capitalised, as intangible assets, brands and customer contracts
that have been acquired, and purchased manufacturing rights.
Group
Other intangible assets Brands Customer contracts Purchased manufacturing rights Total
29 June 2025 £m 30 June 2024 29 June 2025 £m 30 June 2024 29 June 2025 £m 30 June 2024 29 June 2025 £m 30 June 2024
£m £m £m £m
Cost
At beginning of period 118.7 118.7 98.9 98.9 - - 217.6 217.6
Purchased in the period - - - - 2.5 - 2.5 -
Acquired in the period through the acquisition of Redrow plc (note 9) 231.8 - 4.1 - - - 235.9 -
At end of period 350.5 118.7 103.0 98.9 2.5 - 456.0 217.6
Amortisation
At start of period 9.2 8.7 23.9 14.0 - - 33.1 22.7
Amortisation in the period 0.5 0.5 14.0 9.9 - - 14.5 10.4
At end of period 9.7 9.2 37.9 23.9 - - 47.6 33.1
Carrying amount
At balance sheet date 340.8 109.5 65.1 75.0 2.5 - 408.4 184.5
The Group does not amortise the David Wilson Homes housebuilding brand
acquired with Wilson Bowden valued at £100.0m, or the Redrow brand valued at
£231.8m as the Directors consider that these brands have an indefinite useful
economic life due to the Group intending to hold and support the brands for an
indefinite period, and there are no factors that would prevent it from doing
so.
In 2022, the Group acquired brands valued at £10.8m and customer contracts
valued at £98.9m with Gladman Developments Limited. The customer contracts
are amortised on a straight-line basis over the expected useful life of the
contracts of ten years; the brands acquired are amortised on a straight-line
basis over a 20-year period.
Manufacturing rights were purchased for £2.5m during the period.
Impairment of goodwill and indefinite life brands
The Group conducts an annual impairment review of goodwill and its indefinite
life brands, David Wilson Homes and Redrow.
Goodwill and indefinite life brands allocated to housebuilding
An impairment review was performed at 30 April 2025 by comparing the value in
use of the housebuilding business to the carrying value of its tangible and
indefinite life intangible assets and allocated goodwill.
The value in use was determined by discounting the expected future cash flows
of the housebuilding business. The cash flows until the end of June 2028,
being the three year period aligned to the Group's budgeting cycle, were
determined using the Group's approved detailed business plan and the cash
flows for FY29 and FY30 were derived from the Group's growth plan to deliver
22,000 total home completions in the medium term. The cash flows for
subsequent 52 week periods were extrapolated in perpetuity using an estimated
growth rate of 2.1% (2024: 2.1%) in line with the historical long-term growth
rate of the UK economy.
The key assumptions for the value in use calculation for the housebuilding
business were:
· expected changes in selling prices for completed houses and the related impact
on operating margin: these are determined on a site-by-site basis in the
Group's approved business plan dependent upon local market conditions and
product type;
· sales volumes: these are determined on a site-by-site basis in the Group's
approved business plan dependent upon local market conditions, land
availability and planning permissions;
· expected changes in site costs to complete: these are determined on a
site-by-site basis in the Group's approved business plan dependent upon the
expected costs of completing all aspects of each individual development; and
· discount rate: this is a pre-tax rate reflecting the average capital structure
of similar market participants, risks appropriate to the housebuilding
business and current market assessments of the time value of money. A rate of
12.2% (2024: 14.2%) is considered by the Directors to be the appropriate
pre-tax discount rate.
The result of the value in use exercise concluded that the recoverable value
of goodwill and intangible assets allocated to the housebuilding business
exceeded its carrying value by £1,422.3m (2024: £819.7m) and there has been
no impairment.
Goodwill allocated to land promotion
An impairment review was performed at 29 June 2025 by comparing the value in
use of the land promotion business to the carrying value of its tangible and
intangible assets and allocated goodwill.
The value in use was determined by discounting the expected future cash flows
of the land promotion business. The operating cycle for the land promotion
business extends over a longer period than the housebuilding business, with
land sales completing at the point in an economic cycle that generates the
most profit. Inventories held at the current date may generate cash inflows in
the medium to long term and, as a result, management's forecasts extend up to
ten years from the reporting date. It is therefore appropriate to consider
projections over a longer period in the value in use calculation. Cash flows
until the end of June 2034 were determined using the business' approved
forecast, dependent upon expected site permissions and best estimates for
targeted site sales, anticipated spend and overhead inflation. Due to the
sensitivity of cash flows of the land promotion business to the economic
cycle, the cash flows for 52 week periods subsequent to 2034 were based on
average sales receipts from the final 52 week periods of the forecast,
adjusted for expected increases in cost, extrapolated in perpetuity using an
estimated growth rate of 2.1% (2024: 2.1%) in line with the historical
long-term growth rate of the UK economy.
The key assumptions for the value in use calculation were the expected sales
values achieved under land promotion agreements, based on current market
values for similar land, costs required to fulfil customer contracts, and the
discount rate of 12.2% (2024: 13.2%), being a pre-tax rate reflecting the
risks appropriate to the land promotion business and current market
assessments of the time value of money.
The result of the value in use exercise concluded that the recoverable amount
of goodwill allocated to the land promotion business exceeded its carrying
value by £108.0m (2024: £52.6m) and there has been no impairment. An
increase in the discount rate of 430 bps would reduce the headroom of the
recoverable amount over the carrying value to £nil.
11. Inventories
Group
29 June 2025 30 June 2024
£m £m
Land held for development 5,104.9 3,233.6
Construction work in progress 2,979.0 1,829.4
Promotion agreements work in progress 112.4 111.5
Part-exchange properties and other inventories 144.3 103.7
8,340.6 5,278.2
Nature and carrying value of inventories
The Group's principal activity is housebuilding. The majority of sales are not
contracted prior to the development commencing. Accordingly, the Group has in
its Balance Sheet at 29 June 2025 current assets that are not covered by a
forward sale. The Group's internal controls are designed to identify any
developments where the balance sheet value of land and work in progress is
more than the projected lower of cost or net realisable value. During the
year, the Group has conducted six-monthly reviews of the net realisable value
of specific sites identified as at high risk of impairment, based upon a
number of criteria including sites with low profit margins and sites with no
forecast completions. Where the estimated net realisable value of a site was
less than its current carrying value, the Group has impaired the land and work
in progress value.
During the period, due to performance variations, changes in assumptions and
changes to viability on individual sites, there were gross impairment charges
of £20.6m (2024: £9.2m) and gross impairment reversals of £8.2m (2024:
£11.4m), resulting in a net impairment charge of £12.4m (2024: £2.2m
reversal) included within operating profit.
The key estimates in these reviews are those used to estimate the realisable
value of a site, which is determined by forecast sales rates, expected sales
prices and estimated costs to complete.
The Directors consider all inventories to be current in nature, as they are
expected to be realised within the Group's normal operational although the
Group's operational cycle. There is no fixed time period for the normal
operating cycle as it differs for each site, however the cycle typically spans
from the purchase of land to the sale of the final plot.
Land held for development includes £113.4m of costs incurred in respect of
options to purchase land (2024: £11.7m). During the period, £72.5m of
costs in respect of options to purchase land were recognised at their
acquisition-date fair value as a result of the acquisition of Redrow plc.
Expensed inventories
The value of inventories expensed in the 52 week period ended 29 June 2025 and
included in cost of sales was £4,426.3m (2024: £3,241.6m).
12. Net cash
Net cash is defined as cash and cash equivalents, bank overdrafts,
interest-bearing borrowings and prepaid fees. Net cash at the balance sheet
date is shown below:
Group
29 June 2025 30 June 2024
£m £m
Cash and cash equivalents(1) 969.6 1,065.3
Drawn debt
Borrowings:
Sterling US private placement notes (200.0) (200.0)
Total borrowings, being total drawn debt (200.0) (200.0)
Prepaid fees 3.0 3.2
Net cash 772.6 868.5
Total borrowings at the balance sheet date are analysed as:
Non-current borrowings (200.0) (200.0)
Total borrowings, being total drawn debt (200.0) (200.0)
(1) The Group had cash equivalents at 29 June 2025 of £459.8m (2024:
£690.9m) which are included within cash and cash equivalents above.
Movement in net cash is analysed as follows:
Group
52 weeks ended 29 June 2025 Year ended
£m
30 June 2024
£m
Cash acquired on acquisition of Redrow 194.3 -
Other movements in cash and cash equivalents in the period (290.0) (203.8)
Net decrease in cash and cash equivalents (95.7) (203.8)
Repayment/(drawdown) of borrowings:
Loans and borrowings repayments - 3.4
Other movements in borrowings:
Movement in prepaid fees (0.2) (0.5)
Movement in net cash in the period (95.9) (200.9)
Opening net cash 868.5 1,069.4
Closing net cash 772.6 868.5
Cash and cash equivalents
Cash and cash equivalents are held at floating interest rates linked to the UK
bank rate and money market rates as applicable. Cash and cash equivalents
comprise cash held by the Group and short-term bank deposits with an original
maturity of three months or less from inception and are subject to an
insignificant risk of changes in value. In accordance with the Group's policy,
all deposits are held with entities with credit ratings of A+ of higher.
Cash, cash equivalents and bank overdrafts, as presented in the Cash Flow
Statement, are analysed as follows:
Group
29 June 2025 30 June 2024
£m £m
Cash and cash equivalents 969.6 1,065.3
Bank overdrafts including loans and borrowings - -
Cash, cash equivalents and bank overdrafts 969.6 1,065.3
Borrowings and facilities
All debt facilities at 29 June 2025 are unsecured.
The principal features of the Group's committed debt facilities at 29 June
2025 and 30 June 2024 were as follows:
Amount drawn
Facility 29 June 2025 30 June 2024 Maturity
Committed facilities:
RCF £700.0m - - 16 November 2029
Fixed rate Sterling USPP notes £200.0m £200.0m £200.0m 22 August 2027
The Group has various bank overdraft facilities and uncommitted borrowing
facilities that are subject to floating interest rates linked to SONIA and
money market rates as applicable. However, these were not utilised in the
current period or prior year.
Weighted average interest rates are disclosed in note 5.
13. Provisions
Group
Costs in relation to completed developments Legacy properties - building safety Legacy properties - reinforced concrete frames Other provisions £m Total
£m £m £m
£m
At 1 July 2024 190.9 628.1 102.2 - 921.2
Amounts reclassified (14.8) 33.6 (18.8) - -
Fair value of provisions assumed in the acquisition of Redrow 114.1 184.3 105.2 6.0 409.6
Net additions to provisions in the period 22.7 108.9 - 0.1 131.7
Sites reclassified to completed developments 48.1 - - - 48.1
Revaluation - (1.9) (0.8) - (2.7)
Imputed interest - 26.9 6.7 - 33.6
Utilisation in the period (69.6) (93.5) (7.1) - (170.2)
At 29 June 2025 291.4 886.4 187.4 6.1 1,371.3
Group
29 June 2025 30 June 2024
£m £m
Current 783.2 378.0
Non-current 588.1 543.2
1,371.3 921.2
Costs in relation to completed developments
Following the legal completion and handover to customers of all units on a
site, the Group may retain obligations which are not settled for a number of
years. These include costs in relation to the adoption of roads or public open
space by local authorities, other contractual obligations to third parties
and, in certain cases, the costs of remedial works where defects have been
identified.
Whilst a proportion of this cost will not be realised within 12 months, the
Group has an obligation to complete the works immediately should it be
requested to do so. The balance in total is therefore considered to be current
in nature. All outstanding issues on completed developments are resolved as
soon as is practicable.
Legacy property provisions
Further information on the building safety provision is provided in note 1.
Reinforced concrete frames
The Group holds a provision for the remediation of reinforced concrete frames
on developments designed by two engineering firms whose work has previously
been found to be defective.
The engineering firms involved in the above developments have been determined
to also have been involved in the design of certain developments constructed
by the Redrow group. Initial investigations have identified similar issues to
those seen at the legacy Barratt buildings at four Redrow developments. Based
on a high-level assessment of the probable cost of remediation, a provision of
£105.2m has been included within the liabilities assumed through the
acquisition of Redrow.
For all developments where additional amounts have been provided at the
reporting date, further analysis must be undertaken to determine both the
exact locations within the developments which will need to be remediated and
the nature of the work to be performed in each case, which may result in
revisions to the estimated costs and time frame of delivery.
Management expect the majority of the works to completed within three years.
Management has made estimates as to the future costs, the extent of the
remedial works required and the costs of providing alternative accommodation
to any residents affected by the remedial works. These Financial Statements
have been prepared based on currently available information, including known
costs and quotations where possible. However, the extent, cost and timing of
remedial work may change as work progresses.
14. Share capital
Ordinary share capital
Allotted and issued ordinary shares 29 June 2025 30 June 2024
£m £m
10p each fully paid: 1,439,933,173 (2024: 974,592,261) ordinary shares 144.0 97.4
Options over the Company's shares granted during the period 52 weeks ended 29 June 2025 Year ended 30 June 2024
Number Number
LTPP 5,227,111 4,497,287
Sharesave 3,662,634 2,549,465
DBP 838,130 107,057
ELTIP 868,110 1,972,714
10,595,985 9,126,523
Allotment/cancellation of shares during the period 52 weeks ended 29 June 2025 Year ended 30 June 2024
Number Number
At 1 July 974,592,261 974,584,613
Buyback and cancellation of shares in the period (11,162,743) -
Issued to Redrow plc shareholders as consideration for the acquisition of 465,663,607 -
Redrow
Issued to the EBT to satisfy legacy Redrow share option schemes 10,840,048 -
Issued to satisfy exercises under Sharesave schemes - 7,648
At balance sheet date 1,439,933,173 974,592,261
15. Capital redemption and merger reserves
During the period the Company purchased 11,162,743 of its own shares in the
market which were cancelled during the period. The nominal value of these
shares was transferred to the capital redemption reserve. A further 108,064
shares were purchased in the period and cancelled after the balance sheet
date.
52 weeks ended 29 June 2025 Year ended 30 June 2024
£m £m
At 1 July 4.8 4.8
Amounts transferred in respect of own shares purchased and cancelled 1.1 -
At balance sheet date 5.9 4.8
The merger reserve comprises the non-statutory premium arising on shares
issued as consideration for the acquisition of subsidiaries where merger
relief under Section 612 of the Companies Act 2006 applies.
During the current 52 week period, on 21 August 2024, the Group acquired 100%
of the share capital of Redrow plc in an all share transaction. The
non-statutory premium of £2,482.0m arising on the shares issued and accrued
as consideration for the acquisition has been credited to the merger reserve
(see note 9).
16. Own shares reserve
The own shares reserve represents the cost of shares in Barratt Redrow plc
(formerly Barratt Developments PLC) purchased in the market or issued by the
Company and held by the Barratt EBT and the Redrow EBT on behalf of the
Company in order to satisfy options and awards that have been granted by the
Company or were granted by Redrow plc prior to its acquisition by the Company
on 21 August 2024. In the current year the own shares reserve also holds
108,064 shares purchased by the Company as part of the share buyback programme
which were cancelled on 30 June 2025.
Number of shares Cost of shares Market value (at 473.9p (2024: 472.2p) per share)
29 June 2025 Number 30 June 2024 29 June 2025 £m 30 June 2024 29 June 2025 £m 30 June 2024
Number £m £m
EBT shares 13,716,260 8,063,747 26.2 36.9 65.0 38.1
Shares purchased by the Company awaiting cancellation 108,064 - 0.5 - 0.5 -
Total own shares 13,824,324 8,063,747 26.7 36.9 65.5 38.1
The Barratt EBT and the Redrow EBT have agreed to waive all or any future
right to dividend payments on shares held within the Barratt EBT and the
Redrow EBT and these shares do not count in the calculation of the weighted
average number of shares used to calculate EPS until such time as they are
vested to the relevant employee.
The Barratt EBT purchased no shares in the market (2024: 5,000,000 shares).
The Barratt EBT disposed of 2,335,538 shares which were used to satisfy the
vesting of the ELTIP, the DBP and the LTPP schemes (2024: 1,351,813 shares
used to satisfy the vesting of the ELTIP and the LTPP schemes). A further
70,838 shares were used in the period in settlement of exercises under
Sharesave schemes (2024: 583,042).
During the period the Company issued 10,840,048 shares to the Redrow EBT in
exchange for the shares held in Redrow plc. The Redrow EBT disposed of
2,430,661 shares which were used to satisfy the early vesting of the Redrow
LTIP and DBP schemes on acquisition. A further 321,920 shares were used in the
period in settlement of exercises under Redrow SAYE schemes and 28,578 shares
were used in settlement of early exercises under the LTPP Redrow Transition
Award.
17. Contingent liabilities
Contingent liabilities related to subsidiaries
Certain subsidiary undertakings have commitments for the purchase of trading
stock entered into in the normal course of business.
In the normal course of business, the Group has given counter-indemnities in
respect of performance bonds and financial guarantees. At 29 June 2025 the
bonds and guarantees amount to £626.8m (2024: £419.9m) and, at the date of
approval of these Financial Statements, the possibility of cash outflow is
immaterial and no provision is required.
Building safety
As disclosed in note 1, on 13 March 2023, the Group signed the
Self-Remediation Terms and Contract, codifying the commitments previously made
under the Building Safety Pledge. The Group is currently undertaking a review
of all of its current and legacy buildings where it has used EWS or cladding
solutions. Approved inspectors signed off all of our buildings, including the
EWS or cladding used, as compliant with the relevant building regulations at
the time of completion.
At 29 June 2025, the Group held provisions of £886.4m (2024: £628.1m) in
relation to building safety, based on management's best estimate of the cost
and timing of remediation of in-scope buildings. It is possible that as
remediation work proceeds, additional remedial works will be required which do
not relate to EWS or cladding solutions. Such works may not have been
identified from the reviews and physical inspections undertaken to date and
may only be identified when detailed remediation work is in progress.
Therefore, the nature, timing and extent of any such costs were unknown at the
balance sheet date.
It is also possible that the number of buildings requiring remediation may
increase. This could occur because buildings which hold valid EWS1
certificates are found to require remediation or because investigatory works
identify remediation not previously identified.
In addition, we recognise that the retrospective review of building materials
and fire safety matters continues to evolve. These Financial Statements have
been prepared based on currently available information and regulatory
guidance. However, these estimates may be updated if government legislation
and regulation further evolve.
On 31 May 2023 the Group signed the Scottish Safer Buildings Accord,
committing to resolve life-critical fire safety defects in multi-occupancy
residential domestic or part-domestic buildings, over 11 metres in Scotland,
built by us as a developer in the period of 30 years to 1 June 2022. This
Accord is not legally binding, but we are committed to working in good faith
with the Scottish Government to agree a legal form contract. The Group has
undertaken preliminary cost assessments at multi-occupancy buildings over 11
metres in Scotland at which fire safety defects have been identified. The
Group's EWS provision at 29 June 2025 reflects the outcome of these
assessments, based on the assumption that the standard of remediation required
in Scotland is consistent with that in England and Wales. The Housing
(Cladding Remediation) (Scotland) Act 2024, which became law on 21 June 2024,
has provided a framework on which the remediation programme in Scotland can be
based but requires secondary legislation and further contractual agreement
with developers to determine the details. The estimated cost may vary
depending on the final form of the developer remediation contract agreed with
the Scottish Government.
In November 2024, an investigation by the Institution of Fire Engineers
concluded that one of its members had failed to maintain professional
standards and terminated his membership. The firm at which the individual
worked has provided fire risk assessments on a number of buildings which the
Group has developed. Impact assessments for affected buildings are ongoing and
there has been nothing to suggest that a change to the provision is required
at the reporting date.
During the prior year, warranty providers received claims under warranties for
building safety matters on three developments historically delivered by the
Group. Further investigation is required to determine whether the nature and
extent of any remediation work are incremental to that already expected and we
expect this process to be completed during FY26.
Reinforced concrete frames
As disclosed in note 13, the Group is undertaking remediation at developments
designed by certain engineering firms or associated companies. The Financial
Statements have been prepared based on currently available information;
however, the detailed review is ongoing and the extent and cost of any
remedial work may change as this work progresses.
We are actively seeking to recover costs from third parties in respect of
building safety and reinforced concrete frames; however, there is no certainty
regarding the extent of any financial recovery.
Contingent liabilities related to JVs
The Group has given counter-indemnities in respect of performance bonds and
financial guarantees to its JVs totalling £11.9m at 29 June 2025 (2024:
£5.0m).
The Group has also given a number of performance guarantees in respect of the
obligations of its JVs, requiring the Group to complete development agreement
contractual obligations in the event that the JVs do not perform as required
under the terms of the related contracts. At 29 June 2025, the probability of
any loss to the Group resulting from these guarantees is considered to
be remote.
Contingent liabilities related to legal claims
Provision is made for the Directors' best estimates of all known material
legal claims and all legal actions in progress. The Group takes legal advice
as to the likelihood of success of claims and actions and no provision is made
(other than for legal costs) where the Directors consider, based on such
advice, that claims or actions are unlikely to succeed, or a sufficiently
reliable estimate of the potential obligations cannot be made.
18. Related party transactions
Directors of Barratt Developments PLC and remuneration of key personnel
The Board and certain members of senior management are related parties within
the definition of IAS 24 (Revised): 'Related Party Disclosures' and the Board
members are related parties within the definition of Chapter 11 of the UK
Listing Rules. There is no difference between transactions with key personnel
of the Company and transactions with key personnel of the Group.
Disclosures related to the remuneration of key personnel as defined in IAS 24
will be provided in note 5 of the 2025 Annual Report and Accounts.
There have been no related party transactions during the period that require
disclosure under Section 4.2.8 (R) of the Disclosure and Transparency Rules.
Transactions between the Company and its subsidiaries
The Company has entered into transactions with its subsidiary undertakings in
respect of funding and Group services which include management accounting and
audit, sales and marketing, IT, company secretarial, architects and
purchasing. Recharges are made to the subsidiaries based on their utilisation
of these services. In addition, the Company has disposed of its investments in
two of its subsidiaries (BDW Trading Limited and Redrow Limited) to another
Group undertaking, Barratt Redrow Holdings Limited. Both disposals were
non-cash transactions. The disposal of BDW Trading Limited was at its carrying
value, resulting in nil gain/loss on disposal.
Company
52 weeks ended 29 June 2025 Year ended 30 June 2024
£m £m
Transactions between the Company and its subsidiaries and a former JV during
the period:
Charges in respect of management and other services provided to subsidiaries 160.2 158.0
Profit on disposal of investment in Redrow to another Group undertaking 63.4 -
Net interest received/(paid) by the Company on net loans to/(from) 3.8 (16.9)
subsidiaries
Dividends received from subsidiary undertakings 8.0 516.0
Balances at period end:
Amounts due by the Company to subsidiary undertakings (100.2) (91.3)
Amounts due to the Company from subsidiary undertakings 5,713.5 245.1
The Company and its subsidiaries have entered into counter-indemnities in the
normal course of business in respect of performance bonds.
Transactions between the Group and its JVs
The Group has entered into transactions with its JVs as follows:
Group
52 weeks ended 29 June 2025 Year ended 30 June 2024
£m £m
Transactions between the Group and its JVs during the period:
Charges in respect of development management and other services provided to 11.9 10.3
JVs
Net interest charges in respect of funding provided to JVs 2.7 2.1
Dividends received from JVs 6.1 7.1
Balances at period end:
Funding loans and interest due from JVs net of impairment 78.0 86.3
Other amounts due from JVs 29.2 27.8
Loans and other amounts due to JVs (0.8) (0.6)
In addition, one of the Group's subsidiaries, BDW Trading Limited, contracts
with a number of the Group's JVs to provide construction services.
The Group's contingent liabilities relating to its JVs are disclosed in note
17.
19. Financial risk management
The Group's approach to risk management and the principal operational risks of
the business are detailed in note 22.
The Group's operations and financing arrangements expose it to a variety of
financial risks, of which the most material are: liquidity risk, the
availability of funding at reasonable margins, credit risk and interest rates.
There is a regular, detailed system for the reporting and forecasting of cash
flows from operations to senior management including Executive Directors to
ensure that liquidity risks are promptly identified and appropriate mitigating
actions are taken by the Treasury department. These forecasts are further
stress-tested at a Group level on a regular basis to ensure that adequate
headroom within facilities and banking covenants is maintained. In addition,
the Group has a risk management programme that seeks to limit the adverse
effects of the other risks on its financial performance.
The Board approves treasury policies and certain day-to-day treasury
activities have been delegated to a centralised Treasury Operating Committee,
which in turn regularly reports to the Board. The Treasury department
implements guidelines that are established by the Board and the Treasury
Operating Committee.
Liquidity risk
Liquidity risk is the risk that the Group will be unable to meet its
liabilities as they fall due. The Group actively maintains a mixture of
long-term and medium-term committed facilities that are designed to ensure
that the Group has sufficient available funds for operations.
The Group's borrowings are typically cyclical throughout the financial year
and peak in April to May and October to November of each year, due to seasonal
trends in income. Accordingly, the Group maintains sufficient facility
headroom to cover these requirements. On a normal operating basis, the Group
has a policy of maintaining a minimum headroom of £150.0m. The Group
identifies and takes appropriate actions based on its regular, detailed system
for the reporting and forecasting of cash flows from its operations. The
Group's drawn debt, excluding fees, represented 22.2% (2024: 22.2%) of
available committed facilities at 29 June 2025. In addition, the Group had
£969.6m (2024: £1,065.3m) of cash and cash equivalents.
The Group was in compliance with its financial covenants at 29 June 2025. The
Group's resilience to its principal risks has been modelled, together with
possible mitigating actions, over a three-year period. At the date of approval
of the Financial Statements, the Group's internal forecasts indicate that it
will be able to operate within its current facilities and remain in compliance
with these covenants for the foreseeable future, being at least 12 months from
the date of signing these Financial Statements.
One of the Group's objectives is to minimise refinancing risk. The Group has a
policy that the average maturity of its committed bank facilities and private
placement notes is a minimum of two years with a target of two to three years.
At 29 June 2025, the average maturity of the Group's committed facilities was
3.9 years (2024: 4.1 years).
The Group maintains certain committed floating rate facilities with banks to
ensure sufficient liquidity for its operations. The undrawn committed
facilities available to the Group, in respect of which all conditions
precedent had been met, were as follows:
Group
Expiry date 29 June 2025 30 June 2024
£m £m
In more than two years but not more than five years 700.0 700.0
In addition, the Group had undrawn, uncommitted overdraft facilities available
at 29 June 2025 of £39.5m (2024: £37.0m).
Market risk (price risk)
Interest rate risk
The Group has both interest-bearing assets and interest-bearing liabilities.
Floating rate borrowings expose the Group to cash flow interest rate risk, and
fixed rate borrowings expose the Group to fair value interest rate risk.
The Group has a conservative treasury risk management strategy and the Group's
interest rates are set using fixed rate debt instruments.
Due to the level of the Group's interest cover ratio, and in accordance with
the Group's policy to hedge a proportion of the forecast RCF drawings based on
the Group's three-year plan, no interest rate hedges are currently required.
The exposure of the Group's financial liabilities to interest rate risk is as
follows:
Group Floating rate financial liabilities Fixed rate financial liabilities Non-interest bearing financial liabilities Total
£m £m £m £m
29 June 2025
Financial liability exposure to interest rate risk - 200.0 1,714.4 1,914.4
30 June 2024
Financial liability exposure to interest rate risk - 200.0 1,068.7 1,268.7
The Group retained a strong cash position throughout the year and, therefore,
the Group did not draw on its RCF during the year and the use of other
facilities was minimal. No interest was paid by the Group on floating rate
borrowings in 2025 or 2024.
Sterling USPP notes of £200.0m were issued on 22 August 2017 with a fixed
coupon of 2.77% and a ten-year maturity. These fixed rate notes expose the
Group and Company to fair value interest rate risk.
Sensitivity analysis
In the 52 week period ended 29 June 2025, if UK interest rates had been 0.5%
higher/lower (considered to be a reasonably possible change based on forecast
Bank of England interest rates) and all other variables were held constant,
the Group's pre-tax profit would increase/decrease by £2.6m, the Group's
post-tax profit would increase/decrease by £1.9m and, as such, the Group's
equity would increase/decrease by £1.9m.
Credit risk
In the majority of cases, the Group receives cash on legal completion for
private sales and receives advance stage payments from registered providers
for affordable housing. The Group has £969.6m (2024: £1,065.3m) on deposit
or in current accounts with 13 (2024: 14) financial institutions. Other than
this, neither the Group nor the Company has a significant concentration of
credit risk, as their exposure is spread over a large number of counterparties
and customers.
The Group manages credit risk through its credit policy. This limits its
exposure to financial institutions with high credit ratings, as set by
international credit rating agencies, and determines the maximum permissible
exposure to any single counterparty.
The maximum exposure to any counterparty at 29 June 2025 was £214.8m (2024:
£141.2m) of cash on deposit with a financial institution. The carrying amount
of financial assets recorded in these Financial Statements, net of any
allowance for losses, represents the Group's maximum exposure to credit risk.
Capital risk management (cash flow risk)
The Group's objectives when managing capital are to safeguard its ability to
continue as a going concern in order to provide returns for shareholders and
meet its liabilities as they fall due while maintaining an appropriate capital
structure.
The Group manages its share capital as equity, as set out in the Statement of
Changes in Shareholders' Equity, and its bank borrowings (being overdrafts and
bank loans) and its private placement notes as other financial liabilities.
The Group is subject to the prevailing conditions of the UK economy and the
quantum of the Group's earnings is dependent upon the level of UK house
prices. UK house prices are determined by the UK economy and economic
conditions, employment levels, interest rates, consumer confidence, mortgage
availability and competitor pricing. The Group's approach to the management of
the principal operational risks of the business is detailed in note 22.
Other methods by which the Group can manage its short-term and long-term
capital structure include: adjusting the level of dividend payments to
shareholders (assuming the Company is paying a dividend); issuing new share
capital; arranging debt to meet liability payments; and selling assets to
reduce debt.
20. Post balance sheet events
On 15 July 2025 the Company announced that it will implement a programme to
repurchase ordinary shares up to a value of £100m in total, excluding
expenses, to be completed no later than 30 June 2026.
As part of this programme, on 15 July 2025 the Company issued instructions to
Barclays Bank PLC to purchase up to £50m of shares by no later than 31
December 2025. The purpose of this repurchase is to reduce the capital of the
Company and the Company intends that the purchased shares will be cancelled.
21. Statutory accounts
The financial statements for the 52 weeks ended 29 June 2025 have been
approved by the Directors and prepared in accordance with UK adopted IAS in
conformity with the requirements of the Companies Act 2006 and UK adopted
IFRS.
Barratt Redrow plc's 2025 Annual Report and Accounts will be made available to
shareholders and published on its website www.barrattredrow.co.uk in October
2025. The financial information set out herein does not constitute the
Company's statutory accounts for the 52 weeks ended 29 June 2025 (as defined
in Sections 434 and 436 of the Companies Act 2006) but is derived from the
2025 Annual Report and Accounts and the accounts contained therein. Statutory
accounts for 2025 will be delivered to the Registrar of Companies prior to the
Company's Annual General Meeting, which will be held on 5 November 2025. The
auditor has reported on these accounts; their report was unqualified and did
not contain statements under Section 498 (2) or (3) of the Companies Act 2006.
The comparative figures for the year ended 30 June 2024 are not the Company's
statutory accounts for the financial year but are derived from those accounts
which have been reported on by the Company's auditor and which were delivered
to the Registrar of Companies. The 2024 report of the auditor is unqualified
and does not contain statements under Section 498 (2) or (3) of the Companies
Act 2006.
Whilst the financial information included in this Annual Results Announcement
has been prepared in accordance with UK adopted IFRS, this announcement does
not itself contain sufficient information to comply with IFRS as adopted for
use in the UK.
22. Risk management
In pursuing our strategic priorities to create value for stakeholders, we are
exposed to risk in many areas of our business that continually evolve.
Managing our risks responsibly is key to delivering our strategy in a way that
creates value for our customers, shareholders, employees and partners.
Risk management controls are integrated into all levels of our business and
across all operations, including at site, divisional, regional and Group
level. The Board and Executive set a clear tone at the top regarding the
importance of risk management controls and have set out clear responsibilities
as part of our enterprise risk management policies.
Emerging risks are often characterised by a high degree of uncertainty and
unpredictability, making them challenging to identify, assess and manage. They
may not have historical data or precedents to guide us, and their impacts can
be both far‑reaching and complex. Therefore, as part of our emerging risk
and horizon scanning process we identify risks through a range of methods.
Primarily, we conduct internal reviews of emerging risks through our risk
workshops. During FY25, we also employed the support of third parties to
challenge us on our understanding of the key risks and to provide expert
analysis on areas we may not have considered through our internal processes.
They also support on horizon scanning, enabling us to look ahead. Our emerging
risk reviews are broken down into four discrete areas:
· Strategic;
· Regulatory;
· Technology; and
· Political and economic
During FY25 we have performed significant deep dives in collaboration with our
external partners over UK infrastructure, specifically water scarcity and
global political risks. The Executive and Board continue to review and access
emerging risks on an ongoing basis as well as formally on a six‑monthly
basis.
The risks which the Group faces could have a material adverse effect on the
implementation of the Group's strategy, business, financial performance,
shareholder value and returns, and reputation. Changes in the economic or
trading environment can affect the likelihood and potential impact of risks,
and may create new and emerging risks. Our principal risks are based on a
three‑year horizon, which is aligned to our forecast and business planning.
Throughout FY25 the risk management process has been integrated across the
wider Barratt Redrow Group and an aligned methodology adopted. As part of the
Group's risk management framework all regions and key Group functions
conducted risk workshops to review and identify their current risks and any
potential emerging risks. These workshops presented a robust "bottom up"
challenge to the risks identified at an Executive level as part of the
Executive Risk Committee.
As well as quantitative measures, we also assess qualitative impacts such as
reputational damage. The Group manages the impact of reputational damage as a
consequence of not actively managing our key risks; therefore the principal
risks and corresponding mitigation actions are carefully considered to
minimise our risk of reputational damage.
We have seen an increase in both the frequency of geopolitical uncertainty and
the speed that related risks materialise during FY25. We are aware that
despite being a UK business with a high proportion of suppliers being UK
based, we are not immune to the global political and economic environment and
the effects it has on areas such as the UK market or our supply chain. We have
engaged with third‑party risk experts to support us in considering how we
may respond proportionately to ensure our business is resilient. In addition
to increasing the risk levels we have merged our political risk with our
economic risk due to the direct relationship between these two risks.
We are positive on the outlook for land and planning permissions due to the
positive actions taken by the Government. Although reforms are in the early
stages, we feel the likelihood of the risk materialising and having a material
impact has reduced.
We welcome the Government's ambitious commitment to build 1.5 million homes,
which supports our plan to expand our volumes. We recognise that increased
volumes will put pressure on the labour market, and therefore we have
increased the velocity of the attracting and retaining high‑calibre
employees risk so that we ensure we can meet the demands of a growing market.
We have amended our broader information technology risk to be more specific to
cybersecurity risk and increased the risk levels. Given the current climate
and cyber attacks, this risk is an evolving risk, and the impacts on data,
operations and financial transactions if there is a breach, and the
implications for organisations, are increasing. Therefore, we recognise this
and are committed to ensuring we keep up to date with mitigating actions.
We have reduced our residual risk rating for high rise and complex structures.
As a Group we have enhanced and implement a number of processes, controls and
mitigations to prevent the risk of current and future builds being subjected
to the costs and remediation works that the house building industry has faced
over high rise structures.
The Board has completed its assessment of the Group's principal and emerging
risks, including those that could threaten its business model, future
performance, solvency or liquidity.
The current risk profile is within our tolerance range as the Group is willing
to accept a moderate level of operational risk to deliver financial returns.
There may be instances where these risks could have an adverse impact on the
Group - either financially or operationally. To ensure the Group's business
model remains resilient over the medium and long term, the Group has modelled
these scenarios alongside achievable mitigating actions. The results are
presented in the Viability Statement of the Group's Annual Report.
The Group has identified ten principal risks that it considers has a potential
impact and/or likelihood that could significantly affect the Group's
achievement of its strategic priorities and objectives.
Risk A B C D E
Political and economic environment
Land and planning
Government regulation
Construction quality and innovation
High-rise and complex structures
Risk level High risk High risk High risk Low risk High risk
Change from previous year Increase Decrease Increase No change Decrease
Risk appetite Cautious Cautious Averse Cautious Averse
Risk velocity Rapid Moderate Moderate Moderate Moderate
Risk description Significant changes in the UK macroeconomic environment, major geopolitical Lack of developable land due to delays in planning approval, failure of a The housebuilding industry is subject to increasingly complex legislation and Failure to achieve excellence in housebuilding construction and product Failure to build high‑rise and complex structures in line with building
events, or unpredictable unforeseen events may lead to falling demand, clear and consistent Government policy or insufficient consented land and regulations, Government intervention and policy changes, for example building quality, through insufficient quality assurance programmes or inability to regulations, or remediate existing legacy quality issues effectively, could
tightened mortgage availability, lack of funding for housing associations, strategic land options at appropriate cost and quality could affect our regulation, legal, NHQC, CMA and environmental regulation. Deviation from develop, evaluate and implement new and innovative construction methods or be result in remediation delays, reputational damage, increased cash outflow or
reduced new build demand due to increased demand in the second hand property ability to grow sales volumes and/or meet our margin and site ROCE hurdle current regulations or failure to implement the required changes effectively a market leader with changes in technology advancement, could increase costs, future remediation liabilities.
market, or reduced purchaser liquidity, especially in the first‑time buyer rates. within our processes could lead to financial penalties, damage to the Group's expose the Group to future remediation liabilities, and result in poor product
market. These events can cause rapid, severe and prolonged market disruptions reputation or increased costs due to inefficient processes. quality and reputational damage.
beyond normal cyclical patterns. The resultant decline in affordability for
both private and rental customers could lead to reduced sales volumes,
diminished profitability, and in severe scenarios operational continuity,
potentially compromising the Company's ability to deliver planned developments
and meet strategic objectives.
Responsibility Executive Committee Land Committee Executive Committee Operations Committee Operations Committee
Response/ mitigation • Disciplined operating with appropriate capital structure and strong • Land acquisitions subject to formal appraisal and approval by Land • Policies and procedures covering relevant regulation/ legislation. • Continuous review of design and materials, which are evaluated by • Use of qualified engineers through an approved panel including structural
balance sheet. Development Leadership Group (LDLG).
technical experts including the NHBC, to ensure compliance with all engineer peer review process.
• Compulsory employee compliance training. regulations.
• Financial stress testing and impact analysis performed by Group finance. • Strategic land investments subject to review by Gladman Developments.
• Third-party liability insurance.
• Second line functions responsible for monitoring policies, training and • Monitoring and improving the environmental and sustainability impact of
• Continual monitoring of macroeconomy, housing market data and key risk • Group/regional/ divisional review of owned/committed land vs strategic controls. construction methods and materials. • Detailed build programmes supported by robust quality assurance and a
indicators by the Board and Executive Committee. requirements.
dedicated Building Safety Unit (BSU) which conducts remediation work.
• Reporting of non‑compliance via whistleblowing hotline and bi‑annual • Implementation of modern methods of construction by Design and Technical
• Business continuity and crisis management procedures in place to mitigate • Six‑monthly review by LDLG of strategic land portfolio. Control Self‑Assessment. teams. • BSU undertakes independent reviews and investigations of legacy buildings.
impact of significant one‑off global or local economic, and/or political
events. • Planning Performance Agreements with some select planning authorities. • Consultation, engagement and membership of relevant industry • Detailed build programmes supported by robust quality assurance. • Assumptions on the estimated financial costs for remediation have been
groups/liaison with Government agencies.
tested and challenged robustly.
• Group Land and Planning Director reviews and approves planning appeals.
• Regular meetings with key external stakeholders: Government, regulatory
bodies, land agents, promoters and landowners.
Key risk indicators Internal: Sales compared to detailed consents, number of active outlets achievable with Compliance training completion level, compliance with Group policies. Recommend score, total home completions, gross margin, operating margin, NHBC Independent Design Check (IDC) observations, NHBC average RI and BRIs.
Gross and operating margins, PBT, ROCE, EPS, TSR, sales rate per outlet. current land bank, planning applications decided within budgeted timescales. average RI and BRIs.
External:
CPI, mortgage approvals, mortgage affordability, new housebuilding site
starts.
Risk F G H I J
Supply chain resilience
Safety, health and environment
Attracting and retaining high-calibre employees
Cyber security
Redrow integration
Risk level Medium risk Medium risk Medium risk High risk Medium risk
Change from previous year No change No change No change Increase No change
Risk appetite Cautious Averse Opportunistic Cautious Cautious
Risk velocity Moderate Rapid Moderate Rapid Moderate
Risk description Not adequately responding to shortages or increased costs of materials and Health, safety or environmental incidents or compliance breaches that fail to Increasing competition for skills may mean we are unable to recruit/retain the A successful cyberattack breaching any of the Group's key systems, Without careful management, there is a risk that our objectives to maximise
skilled labour, or the failure of a key supplier in the current economic protect or adversely impact employees, subcontractors, customers and site best people. Having sufficient skilled employees is critical to delivery of particularly those for financial and customer information or surveying and shareholder value by successfully integrating the two businesses to generate
environment, may lead to increased costs and delays in construction. visitors, undermining our responsibilities and objectives to be a safe and the Group's strategy of volume growth whilst maintaining excellence in our valuation, could restrict operations, cause financial losses, regulatory fines revenue growth opportunities, and achieve operational and cost synergies, are
responsible business for all of our stakeholders, all of the time. other strategic priorities. and reputational damage or disrupt progress in delivering strategic not achieved.
priorities.
Responsibility Operations Committee Safety, Health and Environment Operations Committee Executive Committee Executive Risk Committee Executive Committee
Response/ Mitigation • Centralised team procures materials from UK suppliers. • Clear roles and responsibilities for SHE. • Remuneration benchmarking against competitors (within and outside the • 24x7 Security Operations Centre, tooling and log alerting. • Identify, monitor and report via Integration Programme Board to Barratt
industry).
Redrow Executive.
• Multi‑supply (anti‑sole supply policy) for key labour and material • SHE management system and SHE policies and procedures.
• Regular external review/penetration testing to reduce risk of successful
supplies.
• Comprehensive recruitment and onboarding processes. cyberattack, and internal audits when we require specialists. • Internal Integration Management Office.
• Employee and subcontractor relevant and appropriate SHE training.
• Contingency plans for key suppliers against supplier failure.
• Apprenticeships, graduate development, training academies and development • Group‑wide IT security policies. • Support from integration partners PwC.
• Monthly operational Divisional Board reporting on SHE performance. programmes.
• Formal tendering policies, procedures and controls.
• Adoption and testing NIST control framework with Board oversight and • Formal project management via PMO with go/no‑go decisions.
• Second line team of SHE compliance managers provides support and guidance. • Group‑wide succession planning and personal development plans for all maturity targets.
• New supplier due diligence checks on supplier appropriateness and product
employees.
quality. • Board level SHE Committee and SHE Operations Committee review and monitor
• Cybersecurity insurance policy.
compliance. • Company values relaunched and embedded.
• Build programme and material planning forecasting to ensure availability.
• Mandatory IT security training for all employees annually.
• Annual employee engagement survey and regular pulse surveys to measure
• Supplier performance monitoring by Group Procurement. satisfaction.
• Monitoring employee turnover, absence statistics and independent feedback
from exit interviews.
Key risk indicators Supplier audit risk scores, supplier concentration. Safety, health and environment (SHE) audit compliance, reportable injuries and Employee engagement score, retention and attrition numbers, leavers rate for Phishing click rate, mean time to resolve, number of incidents, number of Synergies achieved, timeframes on progress.
waste per tonne. those employed <12 months, demographic and age. events.
Statement of Directors' Responsibilities
The responsibility statement set out below has been prepared in connection
with (and will be set out in) the Annual Report and Accounts of the Company
for the 52 weeks ended 29 June 2025, which will be available to shareholders
and published on the Company's website www.barrattredrow.co.uk in October
2025.
Financial Statements and accounting records
The Directors are responsible for preparing the Annual Report and Accounts
including the Directors' remuneration report and the Financial Statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors are required to prepare the Group
Financial Statements in accordance with UK adopted IAS in conformity with the
requirements of the Companies Act 2006 and UK adopted IFRS. The Directors have
also elected to prepare the Parent Company Financial Statements in accordance
with UK adopted IAS in conformity with the requirements of the Companies Act
2006.
Under company law, the Directors must not approve the Financial Statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Company and the Group and of the profit or loss of the Company
and the Group for that period.
IAS 1 requires that financial statements present fairly for each financial
year the relevant entity's financial position, financial performance and cash
flows. This requires the faithful representation of the effects of
transactions, other events and conditions in accordance with the definitions
and recognition criteria for assets, liabilities, income and expenses set out
in the IASB's 'Framework for the preparation and presentation of financial
statements'. In virtually all circumstances, a fair presentation will be
achieved by compliance with all applicable UK adopted IFRS. Directors are also
required to:
· properly select and apply accounting policies;
· present information, including accounting policies, in a manner that provides
relevant, reliable, comparable and understandable information;
· provide additional disclosures when compliance with the specific requirements
in IFRS are insufficient to enable users to understand the impact of
particular transactions, other events and conditions on the entity's financial
position and financial performance; and
· make an assessment of the Company's and the Group's (as the case may be)
ability to continue as a going concern.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's and the Group's transactions on
an individual and consolidated basis and disclose with reasonable accuracy at
any time the financial position of the Company and the Group and enable them
to ensure that the Financial Statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Company and the
Group and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website.
Legislation in the UK governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Fair, balanced and understandable
The Board considers, on the advice of the Audit Committee, that the Annual
Report and Accounts, taken as a whole, is fair, balanced and understandable,
and provides the information necessary for shareholders to assess the
Company's and the Group's position, performance, business model and strategy.
Directors' responsibility statement
The Directors confirm that, to the best of each person's knowledge:
a) the Group Financial Statements in the Annual Report and Accounts, which
have been prepared in accordance with UK adopted IAS in conformity with the
requirements of the Companies Act 2006 and UK adopted IFRS, and those of the
Parent Company, which have been prepared in accordance with UK adopted IAS in
conformity with the requirements of the Companies Act 2006, give a true and
fair view of the assets, liabilities, financial position and profit or loss
of the Company and Group taken as a whole; and
b) the Annual Report and Accounts includes a fair review of the development
and performance of the business and the position of the Company and the Group
taken as a whole, together with a description of the principal risks and
uncertainties they face.
By order of the Board
David Thomas
Chief Executive
16 September 2025
Definitions of alternative performance measures and reconciliation to IFRS
(unaudited)
The Group uses a number of APMs that are not defined within IFRS. The
Directors use these APMs, along with IFRS measures, to assess the operational
performance of the Group as detailed in the Strategic report in the Annual
Report and Accounts. These APMs may not be directly comparable with similarly
titled measures reported by other companies and they are not intended to be a
substitute for, or superior to, IFRS measures.
In this period, following the acquisition of Redrow plc, new APMs have been
introduced to allow for the assessment of the performance of the combined
Group by removing the impact of acquisition accounting adjustments that are
not reflected in historical comparative information and will not be reflected
in future performance after the associated assets and liabilities are
realised.
Definitions of adjusted items are presented in note 4 and adjusted performance
measures are reconciled to IFRS measures in the table following the
Consolidated Income Statement and Statement of Comprehensive Income.
Definitions and reconciliations of the other financial APMs used to IFRS
measures are included below:
Adjusted gross profit before the impact of purchase price allocation (PPA)
adjustments is defined as adjusted gross profit 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.
Fair value adjustments to inventories unwind through the Income Statement,
affecting reported results as follows:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Adjusted gross profit per table following Consolidated Income Statement and 875.2 689.0
Statement of Comprehensive Income
Impact on gross profit of the initial measurement of Redrow assets and 95.1 -
liabilities at fair value at the acquisition date
Adjusted gross profit before the impact of PPA adjustments 970.3 689.0
Adjusted administrative expenses are defined as administrative expenses less
total adjusted items in administrative expenses as defined in note 4:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Administrative expenses per Consolidated Income Statement and Statement of 503.2 336.9
Comprehensive Income
Adjusted items in administrative expenses per note 4 (124.2) (22.4)
Adjusted administrative expenses 379.0 314.5
Adjusted operating profit before the impact of PPA adjustments is defined as
adjusted operating profit 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:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Adjusted operating profit per table following Consolidated Income Statement 500.1 376.6
and Statement of Comprehensive Income
Impact on operating profit of the initial measurement of Redrow assets and 95.3 -
liabilities at fair value at the acquisition date
Adjusted operating profit before the impact of PPA adjustments 595.4 376.6
Adjusted profit before tax and the impact of PPA adjustments is defined as
adjusted profit before tax 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:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Adjusted profit before tax per table following Consolidated Income Statement 488.3 385.0
and Statement of Comprehensive Income
Impact on profit before tax of the initial measurement of Redrow assets and 103.3 -
liabilities at fair value at the acquisition date
Adjusted profit before tax and the impact of PPA adjustments 591.6 385.0
Adjusted profit before tax and the impact of integration is defined as
adjusted profit before tax and the impact of PPA adjustments, less the impact
of cost synergies and accounting policy alignment resulting from the
integration of Redrow into the Group:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Adjusted profit before tax and the impact of PPA adjustments per table above 591.6 385.0
Impact of cost synergies and accounting policy alignment arising from the (1.8) -
integration of Redrow into the Group
Adjusted profit before tax and the impact of integration 589.8 385.0
Gross margin is defined as gross profit divided by revenue:
52 weeks ended 29 June Year ended 30 June
2025 2024
Revenue per Consolidated Income Statement and Statement of Comprehensive 5,578.3 4,168.2
Income (£m)
Gross profit per Consolidated Income Statement and Statement of Comprehensive 784.8 509.5
Income (£m)
Gross margin 14.1% 12.2%
Adjusted gross margin is defined as adjusted gross profit divided by revenue:
52 weeks ended 29 June Year ended 30 June
2025 2024
Revenue per Consolidated Income Statement and Statement of Comprehensive 5,578.3 4,168.2
Income (£m)
Adjusted gross profit per table following Consolidated Income Statement and 875.2 689.0
Statement of Comprehensive Income (£m)
Adjusted gross margin 15.7% 16.5%
Adjusted gross margin before the impact of PPA adjustments is defined as
adjusted gross profit before the impact of PPA adjustments divided by revenue:
52 weeks ended 29 June Year ended 30 June
2025 2024
Revenue per Consolidated Income Statement and Statement of Comprehensive 5,578.3 4,168.2
Income (£m)
Adjusted gross profit before the impact of PPA adjustments per table above 970.3 689.0
(£m)
Adjusted gross profit before the impact of PPA adjustments 17.4% 16.5%
Operating margin is defined as operating profit divided by revenue:
52 weeks ended 29 June Year ended 30 June
2025 2024
Revenue per Consolidated Income Statement and Statement of Comprehensive 5,578.3 4,168.2
Income (£m)
Operating profit per Consolidated Income Statement and Statement of 285.5 174.7
Comprehensive Income (£m)
Operating margin 5.1% 4.2%
Adjusted operating margin is defined as adjusted operating profit divided by
revenue:
52 weeks ended 29 June Year ended 30 June
2025 2024
Revenue per Consolidated Income Statement and Statement of Comprehensive 5,578.3 4,168.2
Income (£m)
Adjusted operating profit per table following Consolidated Income Statement 500.1 376.6
and Statement of Comprehensive Income (£m)
Adjusted operating margin 9.0% 9.0%
Adjusted earnings for adjusted basic earnings per share and adjusted diluted
earnings per share are calculated by excluding adjusted items and any
associated net tax amounts from profit attributable to ordinary shareholders
of the Company:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Profit attributable to ordinary shareholders of the Company per Consolidated 186.4 114.1
Income Statement and Statement of Comprehensive Income
Net cost associated with legacy properties (including legal fees) per note 4 92.6 179.5
Costs incurred in respect of the acquisition of Redrow plc per note 4 36.2 22.4
Reorganisation and restructuring costs per note 4 56.8 -
CMA commitment per note 4 29.0 -
Cost associated with JV legacy properties per note 4 - 12.6
Tax impact of adjusted items (51.7) (54.4)
Adjusted earnings 349.3 274.2
Adjusted earnings before PPA adjustments is defined as adjusted earnings
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:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Adjusted earnings per table above 349.3 274.2
Impact on profit before tax of the initial measurement of Redrow assets and 103.3 -
liabilities at fair value at the acquisition date
Impact on tax charge of the initial measurement of Redrow assets and (30.0) -
liabilities at fair value at the acquisition date
Adjusted earnings before PPA adjustments 422.6 274.2
Adjusted earnings before PPA adjustments per share is calculated by dividing
adjusted earnings before PPA adjustments by the weighted average number of
shares for basic earnings per share (note 7).
ROCE is calculated as earnings before amortisation, interest, tax, operating
charges relating to the defined benefit scheme and operating adjusted items
for the period, divided by average net assets adjusted for goodwill and
intangibles, tax, cash, loans and borrowings, retirement benefit
assets/obligations and provisions in relation to legacy properties:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Operating profit per Consolidated Income Statement and Statement of 285.5 174.7
Comprehensive Income
Amortisation of intangible assets 14.5 10.4
Defined benefit scheme administrative expenses 0.5 -
Net cost associated with legacy properties (including legal fees) per note 4 92.6 179.5
Costs incurred in respect of the acquisition of Redrow plc per note 4 36.2 22.4
Reorganisation and restructuring costs per note 4 56.8 -
CMA commitment per note 4 29.0 -
Share of post-tax profit from JVs and associates per Consolidated Income 17.2 2.3
Statement and Statement of Comprehensive Income
Adjusted cost related to JV legacy properties per note 4 - 12.6
Earnings before amortisation, interest, tax and adjusted items 532.3 401.9
29 June 2025 29 December 2024(1) 30 June 2024 31 December 2023 30 June 2023
£m
£m
£m
£m
£m
Group net assets per Consolidated Balance Sheet 7,873.0 7,879.3 5,439.1 5,439.6 5,596.4
Less (per Consolidated Balance Sheet):
Other intangible assets (408.4) (413.6) (184.5) (189.7) (194.9)
Goodwill (1,174.8) (1,174.8) (852.9) (852.9) (852.9)
Current tax (assets) (79.5) (85.9) (31.8) (27.3) (31.1)
Deferred tax liabilities 109.8 128.9 45.0 50.4 53.5
Retirement benefit assets (4.2) (5.0) - - -
Cash and cash equivalents (969.6) (655.3) (1,065.3) (949.9) (1,269.1)
Loans and borrowings 200.0 200.0 200.0 200.3 203.4
Provisions in relation to legacy properties 1,073.8 991.8 730.3 646.0 612.3
Prepaid fees per note 12 (3.0) (3.6) (3.2) (3.8) (3.7)
Capital employed 6,617.1 6,861.8 4,276.7 4,312.7 4,113.9
Three point average capital employed 5,918.5 4,234.4
1 The balance sheet at 29 December 2024 has been retrospectively adjusted to
reflect new information obtained about circumstances that existed at the date
of acquisition of Redrow plc, as required under IFRS 3.
52 weeks ended 29 June Year ended 30 June
2025 2024
Earnings before amortisation, interest, tax and adjusted items per table above 532.3 401.9
(£m)
Three point average capital employed per table above (£m) 5,918.5 4,234.4
ROCE 9.0% 9.5%
ROCE before the impact of PPA adjustments is calculated as ROCE (above) with
both capital employed and earnings before amortisation, interest, tax and
adjusted items 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:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Earnings before amortisation, interest, tax and adjusted items per table above 532.3 401.9
Impact on earnings before amortisation, interest, tax and adjusted items of 95.3 -
the initial measurement of Redrow assets and liabilities at fair value at the
acquisition date
Earnings before amortisation, interest, tax, adjusted items and PPA 627.6 401.9
adjustments
29 June 2025 29 December 2024 30 June 2024 31 December 2023 30 June
£m
£m
£m
£m
2023
£m
Capital employed per ROCE table above 6,617.1 6,861.8 4,276.7 4,312.7 4,113.9
Impact on capital employed of the initial measurement of Redrow assets and (26.6) (71.5) - - -
liabilities at fair value at the acquisition date
Capital employed before PPA adjustments 6,590.5 6,790.3 4,276.7 4,312.7 4,113.9
Three point average capital employed before PPA adjustments 5,885.8 4,234.4
52 weeks ended 29 June Year ended 30 June
2025 2024
Earnings before amortisation, interest, tax, adjusted items and PPA 627.6 401.9
adjustments per table above (£m)
Three point average capital employed before PPA adjustments per table above 5,885.8 4,234.4
(£m)
ROCE before the impact of PPA adjustments 10.7% 9.5%
Underlying ROCE is calculated as ROCE before the impact of PPA adjustments
with earnings before amortisation, interest, tax, adjusted items and PPA
adjustments also amended to remove the impact of cost synergies and accounting
policy alignment resulting from the integration of Redrow into the Group, and
capital employed before PPA adjustments amended to remove land payables:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Earnings before amortisation, interest, tax, adjusted items and PPA 532.3 401.9
adjustments per table above (£m)
Impact on operating profit tax of the initial measurement of Redrow assets and 95.3 -
liabilities at fair value at the acquisition date
Earnings before amortisation, interest, tax, adjusted items and the impact of 627.6 401.9
integration
29 June 2025 29 December 2024 30 June 2024 31 December 2023 30 June 2023
£m
£m
£m
£m
£m
Capital employed before PPA adjustments per table above 6,590.5 6,790.3 4,276.7 4,312.7 4,113.9
Less land payables 809.4 594.6 472.8 367.2 506.7
Capital employed before PPA adjustments and land payables 7,399.9 7,384.9 4,749.5 4,679.9 4,620.6
Three point average capital employed before PPA adjustments and land payables 6,511.4 4,683.3
52 weeks ended 29 June Year ended 30 June
2025 2024
Earnings before amortisation, interest, tax, adjusted items and the impact of 627.6 401.9
integration per table above (£m)
Three point average capital employed adjusted before PPA and land payables per 6,511.4 4,683.3
table above (£m)
Underlying ROCE 9.6% 8.6%
Average work in progress is used for the purpose of determining the Executive
Directors' annual bonus. It is calculated as the three point annual average of
construction work in progress and part exchange properties held by the Group,
excluding construction work in progress and part exchange properties held by
operations acquired through business combinations in the period:
29 June 2025 29 December 2024 30 June 2024 31 December 2023 30 June 2023
£m
£m
£m
£m
£m
Construction work in progress per note 11 2,979.0 3,257.2 1,829.4 2,003.3 1,907.1
Part exchange properties 131.7 109.0 103.7 100.3 93.3
Less construction work in progress held by operations acquired though business (1,028.4) (1,149.5) - - -
combinations in the period
Less part exchange properties held by operations acquired though business - - - - -
combinations in the period
Work in progress excluding operations acquired through business combinations 2,082.3 2,216.7 1,933.1 2,103.6 2,000.4
Average work in progress 2,077.4 2,012.4
Net cash is defined in note 12.
Total indebtedness is defined as net (cash)/debt and land payables:
52 weeks ended 29 June Year ended 30 June
2025 2024
£m £m
Net cash per note 12 (772.6) (868.5)
Land payables 809.4 472.8
Total indebtedness 36.8 (395.7)
TSR is a measure of the performance of the Group's share price over a period
of three financial years. It combines share price appreciation and dividends
paid to show the total return to the shareholders expressed as a percentage.
Tangible net asset value is defined as net assets less goodwill and other
intangible assets.
Tangible net asset value per share is defined as tangible nest asset value
divided by the total number of ordinary shares in issue at the reporting date.
52 weeks ended 29 June Year ended 30 June
2025 2024
Net assets per the Consolidated Balance Sheet (£m) 7,873.0 5,439.1
Less goodwill per the Consolidated Balance Sheet (£m) (1,174.8) (852.9)
Other intangible assets per the Consolidated Balance Sheet (£m) (408.4) (184.5)
Tangible net asset value (£m) 6,289.8 4,401.7
Number of ordinary shares in issue 1,439,933,173 974,592,261
Tangible net asset value per share (pence) 437 452
Aggregated comparative information (unaudited)
In addition to the above alternative performance measures, this results
announcement includes aggregated performance measures for the year ended 30
June 2024. These measures are included to present comparative information to
the Group's results for the current period to aid understanding of its
relative performance. No adjustments are made to align accounting policy. The
aggregated value comparatives have not been audited or reviewed by Barratt
Redrow plc's auditors.
Aggregated profit measures for the year ended 30 June 2024 are defined as the
results for the year ended 30 June 2024 plus the consolidated result for
Redrow plc and its subsidiaries for the period from 24 August 2023 to 30 June
2024, being the period of equivalent length to the period for which the
results of Redrow are consolidated into the Group's results for the 52 weeks
ended 29 June 2025.
The consolidated Redrow results for the period from 24 August 2023 to 30 June
2024 have been extracted without adjustment from consolidated management
information for the Redrow plc Group and prepared under the accounting
policies for the Redrow Plc Group as disclosed in its annual report for the 52
weeks ended 30 June 2024.
Year ended 30 June 2024 Consolidated Redrow results 24 August 2023 to 30 June 2024 Aggregated year ended 30 June 2024 Adjusted items for the year ended 30 June Adjusted items in consolidated Redrow results 24 August 2023 to 30 June 2024 Aggregated adjusted year ended 30 June 2024
£m
£m
£m
£m 2024 £m
£m
Revenue 4,168.2 1,521.7 5,689.9 - - 5,689.9
Gross profit 509.5 284.2 793.7 179.5 - 973.2
Administrative expenses (336.9) (89.9) (426.8) 22.4 8.0 (396.4)
Operating profit 174.7 194.2 368.9 201.9 8.0 578.8
Profit before tax 170.5 192.7 363.2 214.5 8.0 585.7
Profit for the year 114.1 135.4 249.5 160.1 8.0 417.6
Aggregated (adjusted) gross margin is defined as aggregated (adjusted) gross
profit divided by aggregated revenue and aggregated (adjusted) operating
margin is defined as aggregated (adjusted) operating profit divided by
aggregated revenue:
Aggregated year ended Aggregated adjusted year ended
30 June 2024
30 June 2024
Revenue (£m) 5,689.9 5,689.9
Gross profit (£m) 793.7 973.2
Gross margin 13.9% 17.1%
Operating profit (£m) 368.9 578.8
Operating margin 6.5% 10.2%
Aggregated net cash is defined as net cash plus consolidated net cash for
Redrow plc and its subsidiaries. Aggregated land payables is defined as land
payables plus consolidated land payables for Redrow plc and its subsidiaries.
Aggregated total indebtedness is defined as aggregated net cash plus
aggregated land payables.
The consolidated Redrow results for the period from 24 August 2023 to 30 June
2024 have been extracted without adjustment from consolidated management
information for the Redrow plc group and prepared under the accounting
policies for the Redrow plc group as disclosed in its annual report for the
period ended 30 June 2024. The Net cash definition used for the consolidated
Redrow group at 30 June 2023 is consistent with that disclosed in note 12.
30 June 2024 Consolidated Redrow at Aggregated
£m
30 June 2024
30 June 2024
£m £m
Net cash (868.5) (296.0) (1,164.5)
Land payables 472.8 161.0 633.8
Total indebtedness (395.7) (135.0) (530.7)
Glossary
Active outlet A site with at least one plot for sale
AGM Annual General Meeting
APM Alternative performance measure
ASP Average selling price
the Barratt group Barratt Developments PLC and its subsidiary undertakings prior to the
acquisition of Redrow plc
Barratt Redrow Barratt Redrow plc and its subsidiary undertakings
BRIs Builders' Reportable Items
Building Regulations The requirements relating to the erection and extension of buildings under UK
Law
Capital Employed Average net assets adjusted for goodwill and intangibles, tax, cash, loans and
borrowings, prepaid fees, provisions in respect of legacy properties and
derivative financial instruments
CDP Charity that runs the global system for disclosure of environmental impacts
for investors, companies, cities, states and regions
CMA Competition and Markets Authority
the combined group The new group of companies comprising the Barratt group as defined above, and
Redrow plc and its subsidiaries
the Company Barratt Redrow plc (formerly Barratt Developments PLC)
Cost 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
DBP Deferred Bonus Plan
EBT Employee Benefit Trust
ELTIP Employee Long Term Incentive Plan
EPC Energy Performance Certificate
EPS Earnings per share
EWS External Wall System
the Foundation The Barratt Redrow Foundation (formerly The Barratt Developments PLC
Charitable Foundation)
Future Homes Hub Non-profit organisation through which the housebuilding sector and associated
entities collaborate to deliver the Future Homes Delivery Plan, a roadmap to
achieve sustainable homes, places and construction methods.
FY For FY24 and earlier, refers to the financial year ended 30 June. For FY25,
refers to the 52 weeks ended 29 June 2025
the Group Barratt Redrow plc and its subsidiary undertakings
HBF Home Builders Federation
IAS International Accounting Standards
IASB International Accounting Standards Board
IEO Initial Enforcement Order
IFRS International Financial Reporting Standards
IIR Injury incidence rate
JVs Joint ventures
KPI Key performance indicator
LTPP Long Term Performance Plan
MHCLG Ministry of Housing, Communities and Local Government
Net tangible assets Group net assets less other intangible assets and goodwill
NHBC National House Building Council
Own New Rate Reducer Customer scheme available on selected new build homes through which the
housebuilder provides an incentive to a mortgage lender to secure the customer
reduced mortgage interest rates for an initial fixed period.
PPA Purchase price allocation - the accounting requirement under IFRS 3 to measure
the asset acquired and liabilities assumed through a business combination at
their acquisition-date fair values.
PRS Private rented sector
RCF Revolving Credit Facility
Revenue synergies Incremental sales through the introduction of additional sales outlets to
create multi-branded sites, and cost savings from reducing the time-based
costs associated with each development
Revenue synergy sales outlets Additional sales outlets planned to be opened on developments which were in
the Barratt Redrow land portfolio at acquisition and through which revenue
synergies will be achieved
RIs Reportable items - defects found during NHBC inspections
RPDT Residential Property Developer Tax
Sharesave Savings-Related Share Option Scheme
SHE Safety, Health and the Environment
SID Senior Independent Director
Site ROCE Site operating profit (site trading profit less allocated administrative
overheads) divided by average investment in site land and work in progress
SONIA Sterling Overnight Interest Average
Synergies target The annual reduction in pre-tax costs targeted to be achieved by actions to
unlock synergies, assuming no change in the underlying business capacity
Total home completions Unless otherwise stated, total completions quoted include JVs
USPP US Private Placement
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. END FR FZGMLZVNGKZZRecent news on Barratt Redrow
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