FX.co ★ Barratt Redrow Reports Growth In Private Reservations; Sees 16,600 - 17,200 Home Completions In FY25

Barratt Redrow Plc, the combined entity of Barratt Developments PLC and Redrow plc, released a trading update on Wednesday, indicating an increase in net private reservations per average week.

The integrated forward order book, taking into account Barratt's standalone order book at the onset of fiscal year 2025 and Redrow's from August 22 post-acquisition, tallied at 10,619 homes as of October 13, compared to 12,201 homes last year. The value of this order book stands at £3.17 billion, slightly down from last year's £3.32 billion.

Looking forward, the company's guidance for Barratt's standalone operations remains unchanged. However, with the addition of Redrow's order book and performance since August 22, Barratt Redrow anticipates completing between 16,600 and 17,200 homes in fiscal 2025, which includes approximately 600 home completions from joint ventures.

In its first trading update as a unified group covering the period from July 1 to October 13, Barratt Redrow reported combined net private reservations per average week at 280, surpassing last year's figure of 237. Net private reservations per active outlet per average week reached 0.67, marking a 36.7% rise from the previous year's pro forma equivalent of 0.49.

During this period, the company operated from an average of 419 sales outlets, compared to 488 the previous year. Barratt's standalone private reservation rate also saw an increase, climbing 31.9% to 0.62 from last year's 0.47.

On a standalone measure, Barratt recorded net private reservations per week at 189, up from 172 last year. Total forward sales, including joint ventures, totaled 8,172 homes valued at £2.26 billion as of October 13, as opposed to 9,284 homes valued at £2.39 billion the prior year. The company will transition to a 52-week reporting cycle following Redrow plc's acquisition.

Regarding future prospects, the company commented, "While customer demand remains sensitive to broader economic factors, we are observing a stabilization in market conditions, with better mortgage availability and affordability. Although it will take time for customer confidence to fully rebound from the economic challenges of the past two years, we are optimistic about the strong trading performance observed in recent weeks."