15 July 2026
If you are covering Barratt Redrow's latest financial results, please find below a comment from Oli Creasey, head of property research at Quilter Cheviot:
"Barratt Redrow’s full year trading statement showed it managed 17,667 completions in the year, which is towards the top end of previous guidance, and up 5% year-on-year. Almost all of the volume increase in its year has come in the affordable housing segment, with the private reservation rate almost unchanged year-on-year. Profit before tax is expected to be around £560m, in-line with market expectations.
"The outlook for next year is relatively modest, with management guiding to approximately 1.5% volume growth, driven largely by an increase in sales outlets rather than the sales rate. House price inflation is expected to be "minimal", but build cost inflation is likely to be 3-4% - lower than some analysts had feared at the height of the Iran conflict, but still enough to put pressure on next year's gross margins.
"Of particular interest today is the announcement of a £400m return of cash to shareholders over the course of the next year, primarily through share buybacks. In cash terms that represents a 14% increase in total cash returns, but with a significant change in the mix. Previously, the majority of capital was returned as an ordinary dividend, with the company recently completing a £100m buyback programme run the course of last year. For full year 2027, just £14m will be paid as a dividend with the vast majority deployed as share buybacks. Management notes that the shares are trading at a nearly 40% discount to tangible book value and see this as the best option in terms of getting value for money."
