Half Year 2026 Barratt Redrow PLC Earnings Call Transcript
Key Points
- Barratt Redrow PLC (BTDPF) reported a resilient performance despite a subdued market, maintaining a solid balance sheet and financial robustness.
- The successful integration of Redrow is near completion, with nearly all of the GBP100 million target synergies confirmed.
- The company delivered 7,444 homes, in line with their plans, and achieved a 4.9% increase in the average selling price.
- Barratt Redrow PLC (BTDPF) received high ratings for customer service, including a 5-star rating in the HBF survey and excellent Trustpilot scores.
- The company is well-positioned for future growth with a strong land bank of 5.6 years and plans to optimize capital employed and fine-tune costs.
- Adjusted profit before tax was down 13.6% to GBP200 million due to higher net interest costs and lower joint venture profits.
- The private forward order book was 10% lower at the half-year stage, reflecting a reduced reservation rate and lower numbers of sales outlets.
- The adjusted gross margin decreased by 200 basis points to 15%, impacted by flat pricing and increased use of noncash sales incentives.
- The market environment remains challenging with low consumer confidence and affordability constraints, particularly for first-time buyers.
- Building safety provisions remain significant, with a total legacy property provision of over GBP1 billion, indicating ongoing financial commitments.
So I'm going to make a start. Good morning, everyone. Thanks for coming along to see us this morning, and welcome to Barratt Redrow's Interim Results Presentation for FY26. This morning, I'm joined by Mike Roberts, our Chief Operating Officer, who will provide an update on our operational performance; John Messenger, our Investor Relations Director, who will update on our financial performance. And after John, I will then update on the market, current trading, synergies and also set out how well positioned we are for the future.
First of all, I would like to take you through some of our key messages. Barratt Redrow's performance over the half was resilient, both operationally and financially. And that is despite what has been a generally subdued market. While the consumer did benefit from two interest rate cuts and mortgage availability improved, consumer confidence clearly remained low.
Speculation ahead of the November budget caused many to postpone decision-making. But we have maintained our
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