Barratt Redrow reshuffles top team
Barratt Redrow, the Coalville-based housebuilding giant has revealed that Matthew Pratt will be stepping down from the board and his position as Redrow chief executive on 30 June. He will remain available to the company until 31 December.
The move follows the operational integration of Barratt and Redrow nearing completion.
With Pratt stepping down and, as previously announced, Steven Boyes retiring on 6 September, the executive directors on the board from that point will be David Thomas as chief executive officer and Mike Scott as chief financial Officer.
Thomas said: “Following a successful 22 year career at Redrow plc, including five years as CEO prior to the combination, Matthew has had a key role in the smooth and effective integration of Barratt and Redrow. I would like to thank him for his valuable contribution to the combined business.”
Pratt added: “It has been a privilege to work alongside such talented and committed colleagues, and I am deeply grateful for their role in shaping Redrow into one of the UK’s leading housebuilders. As we approach the final stages of operational integration, I am immensely proud to have contributed to the coming together of these two exceptional businesses. I wish Barratt Redrow every success as it embarks on this exciting new chapter.”
Meanwhile, Mike Roberts, currently regional managing director of Barratt Redrow’s northern region, has been appointed as chief operating officer-designate and member of the Barratt Redrow Executive Committee.
Julie Palmer, partner at Begbies Traynor, said: “At a time when many smaller operators are struggling, the newly merged behemoth appears to have the scale and expertise to remain well insulated from the worst of these headwinds.
“Should Trump’s tariffs come into play, they have the potential to create a disinflationary environment for the UK, potentially leading to further cuts to interest rates that could be a boon for the housebuilding sector, and Barratt Redrow in particular.
“Importantly, the Government remains committed to its lofty targets for new houses, but there’s a lot to do, not to mention skill shortages across the construction industry.
“So, while there’s plenty of positives for one of the UK’s largest housebuilders, it may find itself playing the long game before it reaps the benefits of this government’s ambitions.”
Russ Mould, investment director at Manchester-based investment platform, AJ Bell, said: “Today’s update from Barratt Redrow will offer some reassurance to investors concerned about the impact on the housebuilding sector of tariff uncertainty and the recent end to the stamp duty holiday.
“Demand remains resilient for the company’s homes and there are signs of a modest uptick in selling prices. The benefits of the Barratt and Redrow combination are beginning to shine through, too, with the company expecting to be able to keep a lid on cost inflation thanks to its increased scale. Notably, rivals are already seeing costs tick higher.
“The integration process is nearing completion without having encountered any significant hiccups, no mean feat given the size of the transaction.”
He added:“Recent developments have also increased the chances the Bank of England will pull the trigger on rate cuts sooner rather than later and this should help stoke demand as mortgages become more affordable.
“While the uncertain economic backdrop could put some buyers off, the supply and demand dynamics in the UK housing market remain supportive.
“Barratt Redrow also benefits from a strong balance sheet which gives it strong foundations to withstand any future market uncertainty.”
