Barclays Redrow upgraded its forecasts after saying demand for homes is recovering amid mortgage pressures

The company said the Redrow integration is progressing well with nine divisional office closures completed or announced across both businesses and wider integration programme now on track to deliver £100m of cost synergies.

As such it is updating its medium term guidance and targets for the combined group which delivered adjusted gross profit of £338.7m compared to £295.9m from Barratt on a reported basis in HY24.

The company declared a 25% increase in the interim dividend to 5.5p (HY24: 4.4p). This includes four months’ contribution of Redrow profits.

The combined group delivered 6,846 total home completions (including JVs of 272), a decline of 12% on the aggregated 7,777 home completions in HY24. However, the weekly reservation rate is up by 33%.

Full year adjusted profit before tax is now expected to be at the upper end of market expectations

David Thomas, chief executive of Barratt Redrow, said: “The integration of Redrow is progressing well and we are on track to deliver at least £100m of cost synergies, £10m ahead of the original target.

“As the economic, political and lending environments have stabilised, there has been some recovery in customer demand and we have seen solid reservation activity since the start of January, building a strong forward sales position.

“As a result, we now expect our full year adjusted profit before tax will be towards the upper end of market expectations.”

He added: “Whilst the housing market remains sensitive to the wider economy and mortgage rates and availability, there remains a significant shortage of homes in the UK.”

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