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4h ago

Barratt Redrow Shares Drop 9% After Completing Fewer Homes and Revealing £248m Liabilities

Forecasting up to 17,800 completions next year, the builder urges a government mortgage guarantee to revive weak London demand

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Barratt sold 16,565 homes in the year to the end of June – in April it said it expected to sell between 16,800 and 17,200 in that period

Overview

  • Barratt Redrow delivered 16,565 homes in the year to June 29, missing its target range of 16,800–17,200 completions.
  • The group’s shares fell 9.4% to 377.4p as it warned lower completions would hit profits.
  • It revealed £248m of additional legacy liabilities from last year’s Redrow acquisition, including £98m for fire safety and concrete frame issues.
  • Despite these charges, adjusted pre-tax profit is expected to meet market forecasts and the housebuilder ended the year with £772m of net cash.
  • The company forecasts 17,200–17,800 completions next year, maintains a 22,000-home medium-term target and is calling for a government mortgage guarantee scheme to support demand.