Barratt Redrow: Profit Surges Post-Merger with Redrow
Deal News | Feb 12, 2025 | EIN
Barratt Redrow has reported double-digit growth in both profit and housebuilding following Barratt's acquisition of Redrow. In the six months ending on December 29, the company saw a 10.4% increase in home completions and a 23.2% rise in revenue, bringing it to £2.28 billion. Consequently, Barratt Redrow's shares increased in early trades and have surged by 16.39% over the last month. The merger, which received formal approval last September, is projected to generate cost savings of £100 million, exceeding expectations. Barratt Redrow aims to construct 22,000 homes annually, positioning itself as one of the UK's leading housebuilders. Gross profit rose by 42% to £338 million, although earnings per share fell by 18.3% due to increased average shares in issue post-acquisition. The UK faces a substantial housing deficit, placing Barratt Redrow in a favorable position to meet the high demand and capitalize on the housing market.
Sectors
- Real Estate
- Construction
Geography
- United Kingdom – The article highlights the UK's housing market and how Barratt Redrow's operations and strategic goals are focused in this geographic region.
Industry
- Real Estate – The article focuses on the housebuilding activities of Barratt Redrow, which is a well-known player in the real estate sector, highlighting its growth and future plans in this industry.
- Construction – Barratt Redrow's main activity centers around housebuilding and property development, key components of the construction industry. Their strategic plans and growth are crucial to the sector.
Financials
- 6,864 – Home completions in the six months ended December 29.
- £2.28 billion – Revenue for the six months ended December 29.
- £100 million – Expected cost savings from the merger, exceeding prior expectations.
- 338 million – Gross profit reported by Barratt Redrow.
- 5.8p – Earnings per share following the acquisition of Redrow.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Barratt Redrow | Target Company | Company | A major housebuilding firm recently formed by Barratt's acquisition of Redrow, aiming to be a leader in the UK housing market. |
| David Thomas | Chief Executive | Person | As the Chief Executive of Barratt Redrow, he provides insights into the company's strategic direction and performance outcomes. |
| Centre for Cities | Source | Charity | Provides data on the UK's housing deficit, influencing the strategic narrative of Barratt Redrow's growth potential. |
| Nationwide Affordability Survey | Source | Other | Provides insights into housing affordability trends in the UK, contextualizing the market challenges Barratt Redrow addresses. |