Barratt reiterates guidance despite 'subdued' market
Barratt Developments Plc Redrow reiterated full-year guidance on Wednesday, despite subdued market conditions, following a "resilient" first half.
The housebuilder - which acquired rival Redrow 16 months ago - said it had delivered 7,444 total home completions in the 26 weeks to 28 December, a 4.7% increase on the same period a year previously.
Adjusted aggregated operating profits, prior to the impact of purchase price allocation (PPA) adjustments, were largely flat, dipping 0.3% to £210.2m.
Looking to current trading, and Barratt acknowledged that the full-year outturn was dependent on sales activity during the key Spring selling season. However, it added that based on its current forward sold position and "solid" reservation activity, full-year total home completions were slated to come in between 17,200 and 17,800, in line with previous guidance.
Adjusted pre-tax profits before the impact of PPA adjustments were also on course to meet consensus expectations.
David Thomas, chief executive, said: "We delivered a resilient performance in a subdued market, while making strong progress integrating Redrow.
"With a strong land bank, solid forward sales and synergy delivery in line with our targets, we are well positioned to deliver sustainable medium-term growth.
"However, while progress made on planning reforming is encouraging, a stable and supportive demand environment is essential to enable increased delivery at scale across the sector."
The housing sector received a fillip in 2024, after the current Labour government's manifesto promised to radically overhaul the UK's planning system and bolster home building. However, housebuilders have continued to be buffeted by weak consumer demand, historically high interest rates and a spike in uncertainty in the run up to last autumn's Budget.
Interim statutory pre-tax profits were £156.2m at Barratt Redrow, compared to an aggregated £85m or £113.4m on a reported basis a year previously. Aggregated revenues rose 10.5% to £2.6bn.
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