Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • In FY25, BTRW reported 16,565 home completions, with private reservation rates up 16.4% year on year.
  • BTRW’s adjusted profit before tax rose to £591.6m, ahead of expectations, supported by early cost synergies.
  • Dividend increased by 8.6% to 17.6p per share, alongside ongoing share buyback programmes.

Barratt Redrow Plc (LSE:BTRW) announced its results for the financial year ended 29 June 2025 (FY25), reporting a resilient operational and financial performance. Total home completions reached 16,565, compared with 14,004 reported and 17,972 aggregated in the previous year.

The Group’s net private weekly reservation rate increased by 16.4% to 0.64, compared with an aggregated rate of 0.55 in FY24. Adjusted profit before tax, excluding Redrow purchase price allocation adjustments, stood at £591.6m (FY24: £385.0m reported; £585.7m aggregated), coming in ahead of market expectations. Reported profit before tax was £273.7m, up from £170.5m in the prior year.

Costs, Synergies and Balance Sheet Position

Adjusted item charges amounted to £214.6m, broadly consistent with the prior year, reflecting legacy property charges of £92.6m, acquisition transaction costs of £36.2m, restructuring costs of £56.8m, and CMA commitment costs of £29.0m.

The Group ended the year with a net cash balance of £772.6m (30 June 2024: £868.5m reported; £1,164.5m aggregated). Annualised cost synergies of £69m were confirmed against a target of at least £100m. Of this, £20m was realised in FY25, with an incremental £45m reduction expected in FY26.

A proposed dividend of 17.6 pence per share was announced, an 8.6% increase from 16.2p last year. A £50m share buyback programme was completed in the second half of FY25, with a further £100m buyback underway for FY26.

Operational Progress and Industry Recognition

Integration of Redrow is progressing, with six divisional offices closed and IT integration completed across six divisions. Three further office closures are underway.

The Group’s achievements:

  • Winning 115 NHBC Pride in the Job Awards, more than any other housebuilder for 21 consecutive years.
  • Achieving a ‘5 Star’ rating in the HBF customer satisfaction survey for the 16th year running.
  • Recognition as the UK’s most sustainable national housebuilder by NextGeneration for the eleventh consecutive year.

Strategic Partnerships and Future Outlook

New joint ventures were launched during the year, including:

  • The MADE Partnership with Homes England and Lloyds Banking Group.
  • The West London Partnership with Places for London, involving development of more than 4,000 homes over the next decade.

From 30 June to 24 August 2025, the net private weekly reservation rate was 0.55, broadly in line with 0.56 aggregated last year. Forward sales as of 24 August 2025 stood at 10,350 homes, valued at £3.14bn, compared with 10,398 homes valued at £3.02bn a year earlier.

Subject to stable market conditions and a normal autumn selling season, Barratt Redrow expects total completions of between 17,200 and 17,800 in FY26, including approximately 600 homes through joint ventures. However, management acknowledged that uncertainty around taxation and housing policies in the forthcoming Budget presents additional risks.