Housebuilder gears up for merger with steady results
Housebuilder Barratt Developments has potentially released its final trading update before merging with Redrow, showing positive results as it prepares for the next phase of its journey.
The results show that adjusted profit before tax is expected to slightly exceed previous forecasts. Legacy property charges of around £192m have been recognised as adjusted items, including a first-half charge of £61.9m and about £130m in the second half for previously disclosed legacy property issues.
The company completed 14,004 homes in FY24, slightly down from 17,206 in FY23, including joint ventures (JVs). As of June 30, 2024, forward sales totalled 7,239 homes valued at £1,912.3m meeting expectations.
Barratt also reported a strong balance sheet with year-end net cash of around £865m, positioning it well as land market activity increases.
David Thomas, the chief executive, said: “During another year of economic and political uncertainty, we have delivered a strong operational performance, reflecting the exceptional work of our employees, subcontractors and suppliers, and their commitment to delivering high-quality homes that people want to live in.
“Whilst we continue to navigate a challenging macroeconomic backdrop, we are delivering industry-leading build quality, sustainability and customer service. Combined with the strength of our balance sheet, this has ensured we remain resilient and responsive through the cycle.
“Looking ahead, we are pleased that the proposed combination with Redrow was strongly supported by both sets of shareholders in the Spring and, subject to the CMA’s approval, we look forward to bringing together two businesses to create an exceptional UK housebuilder ensuring we are well-positioned for the future.”
