Full year results for the 52-week period ended 29 June 2025

Resilient performance; strengthened foundations for growth

Commenting on the full year results David Thomas, Chief Executive of Barratt Redrow plc said:

"We have delivered a solid performance in a tough market, with adjusted profits ahead of expectations despite home completions coming in slightly below our guided range. The acquisition of Redrow is transformative for the Group, and I am pleased with the progress we have made on delivering synergies ahead of our targets and executing a successful integration, which is now largely complete. I'd like to thank our employees, subcontractors and supply chain partners for the huge contributions they made to our performance this year.

"While the housing market remains challenging and we anticipate limited growth in FY26, the long-term fundamentals of the sector remain compelling. We have a unique offering, with three distinct leading brands with a strong land position and balance sheet and a clear strategy to deliver long-term, sustainable growth and 22,000 homes a year in the medium-term. In the meantime, it is vital that government policy is focused on reforming the planning system, removing barriers to investment and supporting purchasers, particularly first-time buyers, if the sector is to build the homes the country needs."

£m unless otherwise stated 1, 2	52 weeks ended 29 June 2025	Impact of purchase price allocation ('PPA')	52 weeks ended 29 June 2025 before PPA	Year ended 30 June 2024R	Variance vs FY24
Total home completions 3	16,565	-	16,565	14,004	18.3%
Revenue	5,578.3	-	5,578.3	4,168.2	33.8%
Alternative performance measures:4
Adjusted gross profit	875.2	95.1	970.3	689.0	27.0%
Adjusted profit before tax	488.3	103.3	591.6	385.0	26.8%
Adjusted gross margin	15.7%	170 bps	17.4%	16.5%	(80 bps)
Adjusted operating margin	9.0%	170 bps	10.7%	9.0%	-
Adjusted basic earnings per share	25.5p	5.3p	30.8p	28.3p	(9.9%)
Statutory performance measures:
Gross profit	784.8			509.5	54.0%
Profit before tax	273.7			170.5	60.5%
Gross margin	14.1%			12.2%	190 bps
Operating margin	5.1%			4.2%	90 bps
Basic earnings per share	13.6p			11.8p	15.3%
ROCE	9.0%			9.5%	(50 bps)
Net cash	772.6			868.5	(11.0%)
Dividend per share	17.6p			16.2p	8.6%
Tangible net asset value per share	437p			452p	(3.3%)

Notes:

1 Refer to Glossary for definition of key financial metrics.

R = Reported and denotes a Barratt Developments PLC group ("Barratt Group") reported metric based on the reported performance of the Barratt Group in the comparable reporting period.

A = Aggregated and denotes an aggregated metric based on the reported performance of the Barratt Group in the comparable reporting period 1 July 2023 to 30 June 2024 and includes the performance of the legacy Redrow plc group ("Redrow Group") from 24 August 2023 to 30 June 2024, the equivalent period of ownership, to provide comparability on operational and financial performance. Redrow Group data is based on Redrow plc's standalone accounting policies and therefore excludes any impact of policy alignments made since the acquisition. Aggregated adjusted measures are also presented and prepared on this basis. The aggregated value comparatives have not been audited or reviewed by Barratt Redrow plc's auditors.

2 Unless otherwise stated, all numbers quoted exclude JVs.   

3 Including JVs in which the Group has an interest.

4 In addition to the Group using a variety of statutory performance measures, alternative performance measures (APMs) are also used. Definitions of APMs and reconciliations to the equivalent statutory measures are detailed in the Glossary and Definitions. In this period, new APMs have been introduced to allow for the assessment of the performance of the combined Group, before the impact of PPA adjustments. Measures before PPA adjustments are presented as if the assets and liabilities recognised, as a result of the acquisition of Redrow plc, had been initially measured at their carrying values in the underlying Redrow financial records, rather than at their fair values in accordance with IFRS. Net cash definition is included in Note 12.

5 Bloomberg consensus for FY25 adjusted profit before tax before the impact of PPA adjustments on 16 September 2025 was £582.8m with a range of £580m to £584m, excluding the impact of purchase price adjustments.

 

Financial highlights

·	Resilient operational performance, delivering 16,565 total home completions3 (FY24: 14,004R and 17,972A).
·	Net private weekly reservation rate ahead by 16.4% at 0.64 compared to 0.55A aggregated performance for Barratt and Redrow in the comparable period (FY24: 0.58R).
·	Adjusted profit before tax and before Redrow purchase price allocation ('PPA') adjustments, at £591.6m (FY24: £385.0mR and £585.7mA) ahead of market expectations(5), reflecting some margin improvement and cost synergies crystallised ahead of initial estimates. Reported profit before tax £273.7m (FY24: £170.5mR).
·	Adjusted item charges of £214.6m (FY24: £214.5mR, £222.5mA) reflected legacy property charges of £92.6m, Redrow acquisition transaction costs of £36.2m, acquisition related reorganisation and restructuring costs of £56.8m and CMA commitment costs of £29.0m.
·	Performance underpinned by our strong balance sheet position with net cash at 29 June 2025 at £772.6m (30 June 2024: £868.5mR and £1,164.5mA).
·	Confirmed annual cost synergies of £69m against our target of at least £100m, resulting in a £20m reduction in costs through the income statement in FY25 profit and a further incremental cost reduction of £45m expected in FY26.
·	Proposed dividend for FY25 increased by 8.6% to 17.6 pence per share (FY24: 16.2 pence), £50m share buyback programme completed in 2H FY25 and £100m share buyback programme ongoing for FY26.

Operational highlights

·	Redrow integration well progressed with six divisional offices closed and three in the process of closing across the Group, and IT integration in six divisions making up most of the remaining processes to complete.
·	Continued industry leadership on quality, customer satisfaction and sustainability:
	-	115 NHBC Pride in the Job Awards across the combined Group, consistently ahead of any other housebuilder for 21 years;
	-	Rated '5 Stars' by our customers in the HBF customer satisfaction survey for the 16th year in a row; and
	-	Barratt recognised as the leading national sustainable housebuilder by NextGeneration for the eleventh consecutive year.
·	Important new joint ventures established with the launch of:
	-	The MADE Partnership with Homes England and Lloyds Banking Group; and
	-	The West London Partnership with Places for London, the property arm of Transport for London, encompassing the development of more than 4,000 homes in the coming decade in West London.

Current trading and outlook

·	Our net private weekly reservation rate from 30 June 2025 to 24 August 2025 was 0.55 (2024: 0.56A), with no private rental sector or other multi-unit sales (2024: 0.03A) in the period.
·	Forward sales3 as at 24 August 2025 were 10,350 homes (25 August 2024: 10,398A) at a value of £3,140.9m (25 August 2024: £3,020.0mA) with 7,048 homes of these total forward sales either exchanged or contracted (25 August 2024: 7,451A).
·	Based on the solid reservation activity seen since the start of the new year and assuming no material change to market conditions because of economic or political changes in the coming months, we expect to deliver total home completions of between 17,200 and 17,800 in FY26 (including c. 600 JV completions). This also assumes a normal autumn selling season, our current expectation, however the extended period through to the Budget and related uncertainties around general taxation and that applicable to housing, has introduced additional risk.

 

Note on forward looking statements

Certain statements in this announcement may be forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Accordingly undue reliance should not be placed on forward looking statements. Unless otherwise required by applicable law, regulation or accounting standards, the Group does not undertake to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.

 

 

There will be a results meeting at UBS, 5 Broadgate, London, EC2M 2AT at 8.30am today.

 

The results presentation will also be webcast live with the Q&A. Please click here to register for the FY25 results webcast.

 

An archived version of the results webcast will also be available on our website on 18 September 2025 and further copies of this announcement can be downloaded from the Barratt Redrow plc corporate website at www.barrattredrow.co.uk or by request from the Company Secretary's office at: Barratt Redrow plc, Barratt Redrow House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.

For further information, please contact:

Analyst / investor enquiries

Mike Scott, Chief Financial Officer	01530 278 278
John Messenger, Group Investor Relations Director	07867 201 763

 

Media enquiries

Tim Collins, Group Corporate Affairs Director

01530 278 278

 

Brunswick

Rosie Oddy / Peter Hesse

020 7404 5959

 

Barratt Redrow plc LEI: 2138006R85VEOF5YNK29

 

The Group's next scheduled announcement will be the Barratt Redrow plc AGM along with a trading update on 5 November 2025.

 

Barratt Redrow plc final dividend DRIP:

A Dividend Reinvestment Plan ("DRIP") is provided by Equiniti Financial Services Limited. The DRIP enables the Company's shareholders to elect to have their cash dividend payments used to purchase the Company's shares. More information can be found at www.shareview.co.uk/info/drip. The closing date for DRIP elections is 24 October 2025.

 

Chair's Statement

Establishing the foundations for growth

Introduction

This year has been an important and exciting one in our history. In August 2024 we acquired Redrow plc and received CMA clearance in October 2024, allowing us to begin the integration process. For colleagues across both businesses this brought opportunities and some understandable uncertainty as we have worked to combine the two businesses. I have been impressed by the adaptability and resilience shown by our people in navigating the changes to the business created by the combination, whilst ensuring that we continue to deliver the quality and service our customers expect, alongside driving a solid financial performance. At our capital markets event in February, we brought together Barratt Redrow's management team, sell-side analysts and other key stakeholders to set out what differentiates us from our competitors, our key strengths as a combined business and our ambitions for the medium term.

In FY25 we also saw a new Government elected with a specific focus on driving economic growth through reform of the planning system and tackling the UK's housing crisis. Whilst the Government's supply-side policy changes have been broadly positive, they will take time to make a practical difference. The overall business environment has not seen the stability or support needed to underpin investment and growth, and consumer confidence and home buying demand have remained subdued, hampering the industry's ability to increase volumes. In addition, there are increasing regulatory and procedural burdens that too often cause delays and increase costs.  Nonetheless, we will continue to do what we can to work with the Government to improve conditions for homebuyers and home builders so that we can build the homes the country needs and drive increased economic growth.

Our performance

Despite being a year of much change, combined with a continued challenging market backdrop, we have once again produced a solid financial performance and our teams have ensured that we continue to lead the industry on build quality, customer service and sustainability, as demonstrated by accreditation from our customers and independent third parties.

Over the past 12 months:

·	We were awarded the Home Builders Federation (HBF) 5-star status for the 16th year in a row, the only national housebuilder to have achieved this record;
·	Our site managers secured 115 NHBC Pride in the Job awards, again more than any other housebuilder, for a record 21st year; and
·	We retained our position as the only UK housebuilder on the CDP Climate Change A List for Leadership.

The operational side of our business continues to deliver industry-leading performance reflecting management's focus on getting things right for our customers, partners, employees and stakeholders. This is not restricted to current customers but also governs our approach to legacy issues, where our Building Safety Unit is dedicated to identifying safety-related remediation that is needed at historic developments and then designing and delivering solutions for residents and leaseholders. While it will take some time to complete our work in this area, at Barratt Redrow doing the right thing is non-negotiable and we remain committed to our building safety obligations.

Redrow integration

Combining two large businesses is not without its challenges, but colleagues across Barratt Redrow have engaged positively in the process, resulting in significant progress on the integration of Redrow and in unlocking the synergies we had identified

To position the business for further profitable growth, we had to make some difficult decisions around our divisional structure. As planned when the deal was announced, six divisional offices have been closed and three are in the process of closing and our Group support functions are now being combined. I would like to thank all our colleagues for their continued professionalism through this period and for their continued support over the coming 12-18 months.

As well as divisional office closures and restructuring of our Group support functions, procurement savings and de-duplication of overheads have also contributed to confirmed cost synergies of £69m at the end of the financial year, well on the way to our ultimate cost synergies target which we increased from £90m to at least £100m at the time of our half-year results.

Good progress is also being made on revenue synergies, with 16 planning applications submitted in respect of the 45 identified incremental sales outlets and five approvals received as at the 29 June 2025.

Positioned for growth

The combination of our financial strength, land portfolio and brand offering differentiates Barratt Redrow and puts us in a strong position to deliver future growth. We held net cash of £772.6m at our financial year end, we secure attractive land opportunities through our market leading position across diversified land channels, and we build and sell our homes through three high-quality, differentiated brands covering the majority of the market. This sits alongside our newly formed divisional network. Collectively this places Barratt Redrow in a very strong position to grow towards our medium-term target of 22,000 total home completions a year.

UK Competition and Markets Authority (CMA) investigation

In July 2025 we announced that we, along with six other UK housebuilders, have offered voluntary commitments to the CMA as part of its ongoing investigation into the housebuilding sector, with a view to resolving the investigation expeditiously. The offer of voluntary commitments does not constitute an admission of any wrongdoing by us and nothing in the commitments may be construed as implying that we agree with any concerns expressed by the CMA during its investigation.

The proposed commitments include the seven housebuilders making a collective payment of £100m to the Government to be disbursed to the affordable homes programmes in England, Scotland, Wales and Northern Ireland. Our share of the payment (which is for both Barratt and Redrow businesses combined as Barratt Redrow plc) is expected to be £29m. 

We welcomed the CMA's consultation on the voluntary commitments, which concluded at the end of July 2025, and will continue to work constructively with the CMA throughout the process.

Shareholder returns

The Board declared an interim dividend for FY25 of 5.5 pence per share (FY24: interim dividend of 4.4 pence per share) and is pleased to recommend a final FY25 dividend of 12.1 pence per share (FY24: final dividend of 11.8 pence per share) in line with our dividend policy of 1.75 times adjusted earnings per share. Subject to shareholder approval, the final dividend will be paid on 14 November 2025 to shareholders on the register at the close of business on 10 October 2025. The total proposed dividend for FY25, including the interim dividend, is 17.6 pence per share (FY24: 16.2 pence per share).

The Board regularly reviews its approach to capital allocation. As such, in February we announced a change to our shareholder returns policy, introducing a share buyback programme with the intention of buying back at least £100m of shares annually from FY26. As part of that programme, an initial £50m tranche was executed in the second half of FY25. In addition, our dividend policy will move from 1.75 times to 2.0 times adjusted earnings per share dividend cover (calculated before purchase price allocation accounting charges). The Board believes this capital allocation policy will deliver an attractive dividend and allow the Group to balance investment in sustaining and growing the Group with enhancing future shareholder returns through a predictable but also scalable buyback programme, dependent on market conditions and opportunities. The Board believes that the combined dividend and share buyback commitment represents the right balance of shareholder returns.

Sustainability

We remain the UK's leading national sustainable homebuilder, and we are committed to finding new and innovative ways to improve our developments for nature, communities and our customers. Both the legacy Barratt and Redrow businesses have a strong track record of delivering sustainability initiatives and, separately, each had committed to the Science Based Targets initiative approved targets to achieve net zero. We are working on a revised combined transition plan to ensure that we continue to lead the industry on the journey to net zero.

Board changes

Over the year, we have announced several changes to the composition of the Board and our committees.

We welcomed Nicky Dulieu and Geeta Nanda to the Barratt Redrow Board in October 2024 as Non-Executive Directors, having previously been on the Board of Redrow plc.

In March 2025, we announced that after 47 years of dedicated service, our Chief Operating Officer and Deputy Group Chief Executive Steven Boyes would step down from the Board on 6 September 2025. Steven has made a huge contribution to the business throughout his tenure, is highly respected within the business and across the industry and everyone at Barratt Redrow wishes Steven a long and happy retirement.

After a successful career with Redrow, Matthew Pratt stepped down as Redrow Chief Executive and as a Director of Barratt Redrow plc with effect from the close of business on 30 June 2025, we wish him well for the future.

With effect from 1 August 2025, we refreshed the composition of the SHE Committee with Nigel Webb taking over from Chris Weston as its Chair and elevated the Sustainability Committee to a Board Committee, appointing Geeta Nanda as its Chair.

After nine years' service, Jock Lennox will be stepping down from the Board on 5 November 2025. Jock has been instrumental in reshaping our approach to risk management, internal controls and assurance, and in steering the Audit and Risk Committee and as Senior Independent Director (SID), the Board through many strategic decisions, most recently the acquisition of Redrow plc. Jasi Halai will take over from Jock as Chair of the Audit and Risk Committee and Nicky Dulieu will become our SID.

Looking ahead

As we move into FY26, affordability, uncertainty in the macroeconomic environment and weak consumer confidence remain challenges. While we have seen some welcome reductions in mortgage rates over the course of the year, the cost of living remains high and affordability remains a key constraint, particularly for first-time buyers. We continue to invest in self-help measures, such as our part-exchange offer and incentives for key workers, to support customers seeking to buy our homes.

We welcomed the Government's Spending Review announcement of a 10-year £39bn new Affordable Homes Programme. This provides a significant step-up in funding and a long-term commitment to the affordable housing sector, which should support improving demand from affordable housing providers for the affordable homes we build throughout the country. However, to drive rapid and sustained private development growth across the housebuilding industry, Government should consider demand-side support for first-time buyers, a feature of the housing market for many decades.

Looking to the future, the absence of first-time buyer support risks the acceleration of ever-increasing inter-generational and social inequality, where parental savings and financial support will increasingly dictate the ability of so many to access the stability and security of home ownership. 

On the supply-side, the Government's welcome reforms of the planning system will take time to feed through into practical improvements on the ground. In the meantime, it is vital that Government remains committed to tackling our housing crisis, supporting the industry to build the homes the country needs and focused on creating an environment which encourages the sustained investment in the land, people and materials to do so.

FY25 marked the start of a new chapter in our long history. As Barratt Redrow we are well positioned and ready to focus on what we can control and capitalise on improving market conditions. Our three complementary brands cover a large proportion of the market and will enable us to drive the delivery of increased volumes. The talent in our Company is second to none and I look forward to meeting even more of our colleagues this coming year.

Finally, the Board and I would like to take this opportunity to thank all our colleagues, subcontractors and supply chain partners for their ongoing support and partnership.

 

Caroline Silver

Chair

16 September 2025

 

 

Chief Executive's Statement

Delivering the homes the country needs

Introduction

We delivered a solid financial performance in FY25, whilst making good progress against our strategic priorities. Despite continued challenges around mortgage affordability and cost of living pressures, reduced volatility in mortgage rates, a broadening range of mortgage products available, easing inflation trends and a more balanced economic backdrop supported demand in FY25, as reflected in our solid reservation rates.

The Redrow acquisition, completed in August 2024, was a transformative milestone - bringing a complementary premium brand, high-quality land assets and significant opportunities to unlock both cost and revenue synergies. The acquisition strengthens our market position and underpins our confidence in delivering our medium-term target of 22,000 total home completions per year. Together, we are uniquely placed to drive growth, enhance shareholder value and continue to deliver the homes the UK needs. I would like to thank our teams throughout the business and our wider supply chain partners for their continued professionalism and dedication as we capture the exciting opportunities ahead for Barratt Redrow.

Performance summary

In FY25 we delivered total home completions of 16,565 (FY24: 14,004^R; 17,972^A) including completions from Redrow since the acquisition in August 2024. Whilst this was slightly lower than the guided volume range, we delivered adjusted profit before tax and before the impact of Redrow acquisition fair value adjustments, slightly ahead of expectations at £591.6m (FY24: £385.0m^R; £585.7m^A). Our reported profit after tax was £186.4m (FY24: £114.1m^R; £249.5m^A).

We continue to maintain a strong balance sheet with year-end net cash of £772.6m (FY24: £868.5m^R; £1,164.5m^A) after the payment of dividends, the share buyback and legacy property-related spend.

ROCE reduced to 9.0% (FY24: 9.5%^R) reflecting the increase in capital employed through the Redrow acquisition, as well as the negative impact of acquisition fair value adjustments on reported profitability.

For more information on our financial performance and on the additional accounting impacts of the Redrow acquisition, please refer to the Chief Financial Officer's Statement.

Acquisition of Redrow

In August 2024 we completed our acquisition of Redrow plc, creating a business which can deliver 22,000 homes per annum through three high quality brands at a range of price points. We are delighted to have added Redrow's talented teams to our own employee base.  By using the Redrow brand to complement our two existing homebuilding brands - Barratt Homes, including Barratt London, and David Wilson Homes - we plan to grow the business over the medium-term by initially creating incremental sales outlets from our combined land bank at acquisition, and leveraging our market-leading brands and resulting development scale and capabilities, to secure a wider portfolio of attractive land opportunities using our leading position across all land sourcing channels. The ethos of Redrow is closely aligned to Barratt and David Wilson with a focus on delivering high-quality homes and excellent customer service, underpinned by creating sustainable communities where people aspire to live.

Redrow integration

In line with our plans, six divisional offices have been closed and three are in the process of closing, with operational leadership aligned from 1 July 2025. During FY26, Barratt Redrow will operate from 32 housebuilding divisions across the country with the capacity to deliver 22,000 homes per annum in the medium-term.

The integration and synergy activities across our head office functions have also progressed well during the year. The restructuring of head office teams is well-advanced and is expected to complete in Q1 FY26. We are also making good progress in rationalising head office overhead costs. The transition of the Redrow business onto Barratt systems began in April 2025 and will be completed during FY26. Finally, our procurement programme continued to gain momentum through FY25 as we moved to both harmonise buying terms and ensure the purchasing scale of Barratt Redrow is optimised, unlocking the targeted synergies.

As a result of this hard work, we had confirmed c. £69m of cost synergies at the year end and we are well on the way to achieving an upgraded cost synergy target of at least £100m. Cost synergies of £20m were crystallised within FY25 performance, ahead of our October 2024 target of c. £10m. We now anticipate around £45m of incremental cost synergies will be crystallised in FY26. Total Redrow-related reorganisation and restructuring costs are expected to be £90m to £95m with £56.8m incurred as an adjusting item in FY25 and the balance of c. £33m to £38m anticipated in FY26.

With respect to revenue synergies, we submitted 16 planning applications for incremental sales outlets from the combined Barratt Redrow land bank, and we were pleased to have already secured planning approval on 5 of these in FY25. Since the year end a further 9 planning applications have been submitted and 4 additional planning approvals secured. With progress to date, we remain confident in delivering 45 incremental sales outlet openings by the end of FY28.

Strong fundamentals for growth

At our capital markets event in February 2025, we outlined why we believe the UK housing market has strong fundamentals for growth, and why we are the best-positioned national homebuilder to capitalise on this opportunity.

Following the acquisition of Redrow, and the strong progress we have made on integration, we have a clear strategy to leverage our position as an exceptional UK homebuilder to deliver growth and maximise shareholder returns. With our unrivalled record on quality, service and sustainability, in addition to our robust financial position and long-standing partnerships, we are well-placed to significantly increase volumes, with a clear target to deliver around 22,000 homes per year in the medium-term. We are confident that the strength of our three leading and differentiated brands, our nationwide footprint, our strong land pipeline and our deep operational experience and expertise, place us in a very strong position to deliver against this ambition. During the year, we have also taken further strategic actions to underpin our ability to deliver this volume growth, including:

·	expanding our timber frame production capacity, which typically reduces build time by seven to eight weeks whilst reducing local site labour dependency;
·	continuing to innovate and test new products to increase efficiency and provide resilience in the build process, such as the Mauer façade system; and
·	right sizing our divisional office network, ensuring we have the right teams in the right geographic locations to meet our ambitions.

We welcomed the proposed planning reforms introduced by the new Government in the autumn of 2024. However, these reforms are not yet fully enacted and therefore their impact on improving planning outcomes in our divisional businesses has been slower than we anticipated. We remain confident in our ability to grow our sales outlet numbers to between 475 and 525 in the medium-term, which will allow us to deliver our medium-term volume guidance of 22,000 home completions per year.

Strategic priorities

As we enter this new era as Barratt Redrow, we have clear strategic priorities to deliver our goals for the business in the short, medium and long-term. These are summarised below:

Delivering a best-in-class customer offering:

·	deliver excellent customer service at all stages in the home buying process, from contact through our website to after-care support when our customers have moved into their new home;
·	provide a broad and customer-led choice of homes by way of brand, geographic location, style and layout design and price points; and,
·	maintain the best build quality in the industry.

Driving operational efficiency through differentiated brands:

·	increase the number of sales outlets we operate from and the efficiency with which we develop our land pipeline;
·	deliver the cost synergies from the Redrow acquisition and further efficiencies through centralisation of our support functions; and,
·	evolve the standardisation of our house types to improve both our build efficiency and the adoption and use of modern methods of construction.

Using capital effectively to drive growth:

·	create new opportunities for growth through disciplined land acquisition and the development of alternative land channels;
·	invest in our operations to support our sustainable growth over the medium to long-term, most notably in timber frame manufacturing; and,
·	return capital to shareholders which is surplus to the Group's requirements, through an ongoing dividend based on 2.0 times dividend cover and a share buyback programme of at least £100m annually.

Leading the industry in sustainability:

·	create the sustainable homes and developments that our customers and communities demand and deserve;
·	ensure we remain the partner of choice for stakeholders seeking to deliver a path to sustainable growth; and,
·	deliver a net zero transition plan for Barratt Redrow, following the Redrow acquisition, which recognises both the challenges and opportunities ahead.

Charitable giving and the Barratt Redrow Foundation

Core to our purpose is building strong communities, a key part of that is supporting existing communities, local charities and good causes and providing the opportunities for our employees to volunteer and raise money for causes close to their hearts.

The Barratt Foundation was launched in 2021 and on 1 July 2025 became the Barratt Redrow Foundation, expanding its charitable programmes to include our Redrow colleagues and communities. We now look forward to expanding the positive impact we can have on charities and good causes as an enlarged Group, with greater employee involvement and the opportunities for additional fundraising, volunteering and support for communities across the country.

In FY25 we donated £6.7m (FY24: £6.4m^R) through the Barratt Foundation and employee fundraising across the enlarged Group.

Responsible development

Keeping people safe

Our first priority is to keep our employees, our subcontractors and our customers safe. During FY25, our injury incidence rate, across Barratt Redrow's combined operations, decreased to 272 (FY24: 302^R) per 100,000 workers whilst we maintained our SHE audit compliance at 97% (FY24: 97%^R).

We remain focused on improving our site-based processes and procedures, challenging unsafe behaviours and building on our health and safety performance through on-site induction training and safety awareness for all personnel, while also developing our site managers' vigilance to health and safety risks on site.

Building safety

Our approach to assessing and rectifying historical building safety issues has been consistent. We take our responsibilities seriously and are working as fast as we can to assess relevant buildings, where necessary design appropriate remediation strategies and work with all relevant stakeholders - including residents, building owners, principal accountable persons, local authorities and the Building Safety Regulator - to expedite that remediation as efficiently as possible.

Through our dedicated Building Safety Unit, we ensure remediation has the appropriate focus within our business and our use of high-quality fire engineers and peer reviews of proposed solutions, as well as the diligence of our site teams, means that we have a high degree of visibility around remediation progress and expected costs.

During FY25 additional legacy property related costs were recognised. These costs related to:

·	the fair value of Redrow's building safety provision, which was recognised at £184.3m at the date of acquisition and was included in the Group's interim results to 29 December 2024;
·	charges relating to legacy property provisions, including revaluations, which totalled £106.2m and which, after recoveries from third parties of £15.8m and associated legal costs of £2.2m, resulted in an adjusted item charge of £92.6m; and
·	new issues identified in the Redrow portfolio post-acquisition with respect to reinforced concrete frame design and construction and, after investigation, testing and quantification in the second half of FY25, a revision to the Redrow opening balance sheet fair value of £131.8m, recognised through an additional reinforced concrete frame provision of £105.2m and an adjustment to inventories of £26.6m.

We also continue, where possible, to actively seek to recover costs from third parties in respect of issues around fire safety and reinforced concrete frames. In May 2025, the Group won a landmark Supreme Court case which clarified the responsibility of companies in the supply chain for remediating defects in developments they were involved in. This ruling made it clear that all parts of the industry need to take responsibility and that developers shouldn't be penalised for proactively taking action to support leaseholders and residents in advance of litigation. In the judgement, the Supreme Court noted that we had been "pro-active in investigating, identifying and remedying building safety defects".

To read more about the judgement, please follow this link: https://supremecourt.uk/cases/uksc-2023-0110

Current trading and future outlook

While we delivered a solid trading performance during FY25, private homebuyer confidence remains fragile given the continuing affordability challenges they face, particularly around deposit requirements, and general concerns on employment, future taxation policy and mortgage rates, which remain elevated when compared to recent years, notwithstanding increased mortgage market competition and mortgage availability.   

We remain encouraged by the Government's focus on housebuilding and its reforms to the planning system which, in time, should have a significant positive effect. However, to see housebuilding volumes accelerate and reach the numbers needed to tackle our housing crisis, Government needs to also address demand-side constraints on homebuyers, both institutional and private, which will ultimately drive housebuilding activity. In the meantime, it is vital that Government policy, in particular around taxation and regulation, is focused on creating a positive and stable environment for business and investment.

As planning policy reforms are implemented at a local, practical level, we are in a uniquely strong position to take advantage of any improvements in the economic environment and accelerate volume delivery through our three leading brands, and we remain confident in our medium-term ambition to deliver 22,000 high-quality homes a year.

We entered FY26 with a solid forward sales position and at 24 August 2025 we are 45% forward sold with respect to private wholly owned home completions for FY26 (25 August 2024 for FY25: 42%^R, 45%^A), with 48% of the private order book exchanged (25 August 2024: 52%^R, 50%^A).

Our overall net private reservation rate through to 24 August 2025 has slightly reduced to 0.55 (FY25: 0.58^R, 0.56^A) due to the lack of reservations into the private rental sector and other multi-unit sales (FY25: 0.03^R&A). Since the start of FY26 however, our current year reservation rate, excluding PRS and other multi-unit sales, has remained resilient at 0.55, 3.8% ahead of the comparable period last year.

The composition of our forward sales on 24 August 2025 and the order book movement since 29 June 2025 are included in the following tables, along with the aggregated performance of Barratt and Redrow in the comparable period in 2024:

	24 August 2025		25 August 2024		Variance %
	£m	Homes	£m	Homes	£m	Homes
Private	2,139.1	5,403	2,109.1	5,476	1.4%	(1.3%)
Affordable	806.7	4,398	759.8	4,523	6.2%	(2.8%)
Wholly owned	2,945.8	9,801	2,868.9	9,999	2.7%	(2.0%)
JV	195.1	549	151.1	399	29.1%	37.6%
Total	3,140.9	10,350	3,020.0	10,398	4.0%	(0.5%)

 

	Current year		Prior yearA		Variance %
	Private	Total3	Private	Total3	Private	Total3
29 June 2025 / 30 June 2024	4,781	9,835	4,505	9,426	6.1%	4.3%
Reservations	1,716	1,750	1,903	2,074	(9.8%)	(15.6%)
Completions	(1,094)	(1,235)	(932)	(1,102)	17.4%	12.1%
24 August 2025 / 25 August 2024	5,403	10,350	5,476	10,398	(1.3%)	(0.5%)

 

Based on the trading year to date, with broadly stable sales rate and average sales outlets, along with private rental sector reservations expected over the year ahead, we continue to anticipate total home completions, including JVs, will be in a range of 17,200 to 17,800 in FY26, including c. 600 completions from our JVs, whilst ensuring we maintain our industry-leading standards of build quality and customer service. This also assumes a normal autumn selling season, which is our current expectation, however the extended period through to the Budget, now scheduled for 26 November 2025, and related uncertainties around general taxation and that applicable to housing, has introduced additional risk. We also currently estimate that between 40% and 45% of our total home completions will be delivered in the first half of FY26.

We are executing the integration of Redrow at pace, we have a strong balance sheet and a solid forward sales position, and we believe we are well positioned as we move forward in FY26.

 

David Thomas

Chief Executive

16 September 2025

 

Notes:

R. Reported denotes a Barratt Developments PLC Group (Barratt Group) reported metric based on the standalone performance of the Barratt Group in the comparable reporting period.

A. Aggregated denotes an aggregated metric based on the reported performance of the Barratt Group in the comparable reporting period 1 July 2023 to 30 June 2024 and includes the performance of the legacy Redrow plc Group (Redrow Group) from 24 August 2023 to 30 June 2024, to provide comparability on operational and financial performance.

Redrow Group data is based on Redrow plc's standalone accounting policies and therefore excludes any impact of policy alignments made since the acquisition. Aggregated adjusted measures are also prepared and presented on the same basis.

The aggregated value comparatives have not been audited or reviewed by Barratt Redrow plc's auditor.

 

 

Our four strategic priorities for growth

 

1.   Delivering a best-in-class customer offering

Two of our values are "we do it for our customers" and "we do it right". This underpins the way we operate and the decisions we make. When buying a Barratt, David Wilson or Redrow home, customers put their trust and faith in our unrivalled track record of delivering quality homes with the service to match. Maintaining this record is the right thing to do. That is why we made it our first strategic priority.

To ensure we stay up to date with customers' wants and needs, we have an established customer insight programme. Over the past three years, the programme has generated 34,200 interactions, involving over 2,800 of our own customers and 31,400 of those in the market to buy a new home. Using a mix of quantitative and qualitative research, this programme helps us understand customer needs and preferences, particularly in relation to the price, quality and overall offer of our homes, services and brands.

It supports business decisions, and its objectives include delivering high-quality data to promote a clear understanding of customer needs, ensuring the customer voice is embedded and recognised in every part of our business.

Customer choice

All our customers have their own unique situations, requirements and budgets. That is why we aim to give our customers choices wherever possible.

This choice starts right at the beginning of the home buying process. With our three, differentiated brands, our customers are given an unparalleled range of house types to choose from. In general, we see first-time buyers and young families opting for Barratt Homes, mover-uppers and growing families choosing David Wilson Homes, and downsizers and premium purchasers selecting Redrow.

In addition to its standard house types, Redrow also offers a "Lifestyle" range. This range sees three-bed homes built on the footprint of four-bed homes. Each bedroom has its own ensuite, and the added bedroom space is particularly popular with downsizers.

Once a home has been picked, customers have the choice of our buying schemes. From part-exchange to the Own New Rate Reducer, to schemes for key workers and armed forces personnel, we have a scheme to suit every buyer and help them make their purchase.

Once a customer has reserved their home, next comes the exciting part - personalising their space. Customers have the choice to upgrade a wide variety of fixtures and fittings including flooring, kitchens and wardrobes, depending on build stage.

Build performance and quality

In common with our commitments around customer service, our build quality has an unrivalled track record. At the 2024 NHBC awards, 111 of our site managers won Pride in the Job awards, 29 went on to win "Seals of Excellence" and, of those 29, three were regional winners. To win a Pride in the Job award is a great achievement and we are very proud of all our site managers.

In 2025, for a record 21 consecutive years, our site managers have won more NHBC Pride in the Job awards than any other homebuilder, with 115 awards.

The NHBC also monitors Reportable Items (RIs). RIs are any defects found during any inspection. For a sixth consecutive year Barratt legacy operations registered the lowest RIs at 0.12 (FY24: 0.13) per NHBC inspection amongst the major housebuilders. Over the same period Redrow operations registered RIs of 0.23 per inspection, a considerable improvement on the previous FY24 performance at 0.29.

We don't just build to regulations we are constantly looking at the overall quality of our developments and ways to enhance the environment where we develop. Since completing the acquisition of Redrow, we have begun refreshing our placemaking vision. We intend to lead the industry, drawing on and expanding on the existing placemaking frameworks "Great Places" and the "Redrow 8". It will be customer centred and focused on integrating the business' three brands seamlessly with a view to optimising sales, as well as providing confidence to stakeholders that we will deliver high-quality new homes and ever more sustainable communities.

Customer service

Our customer service record is unrivalled. For 16 consecutive years our customers, through the HBF's Customer Satisfaction Survey, have awarded us a 5 Star rating for customer satisfaction. No other homebuilder comes close to this record. Being a 5 Star builder means that over 90% of our customers would recommend us to a friend. Our latest rating is 96%.

The customer journey starts long before we hand over the keys. The process of buying a home is often deemed a stressful one, so we do what we can to make it easier and gather feedback from customers to improve the experience.

For example, we are continuously using customer feedback to improve our sales centres, our house type portfolio and our incentives and buying schemes.

 

2.   Driving operational efficiency through differentiated brands

Our operating margin and return on capital employed, amongst other metrics, have been impacted in recent years due to declining volumes, the increased use of sales incentives and significant inflation in building material costs. As we look to grow our volumes, we're committed to establishing new and improved ways of running the business more efficiently.

Multi-branding

Since the acquisition of David Wilson Homes in 2007, Barratt Homes and David Wilson Homes have successfully delivered hundreds of dual-branded developments. With the addition of the Redrow brand we can continue to enhance this strategy.

Multi-branding developments can significantly reduce the time on a development as Build and Sales teams work on different areas of the development in parallel. This enhances asset turn and improves return on capital employed.

Our competitive position with respect to larger land development opportunities is also enhanced. As Barratt Redrow we can draw together the optimisation of our three brands and skills from across the enlarged Group. This also allows us to compete for larger land opportunities where competition is often more limited and where competitive bidders are frequently operating as joint ventures or reliant on introducing other homebuilders to such developments. Competing bidders for these larger developments frequently face front-end risks around securing a trusted, adequately funded and reliable partner in the bidding process, as well as subsequent risks around the mix of homes and pace of development and home sales each partner is seeking to generate, which can create development conflict and unforeseen competitive pressures.

Our experience of dual branding sites also helped us to identify the opportunities to replot a significant number of Barratt and Redrow developments and create additional sales outlets. The process of amending planning permissions for these 45 additional sales outlets (defined as "revenue synergy sales outlets") is well underway, with 16 applications submitted at 29 June 2025. In H2 FY27 we expect to see the first completions from these incremental sales outlets.

Cost synergies

As well as revenue synergies, the acquisition will also deliver at least £100m of cost synergies, £10m more than originally expected. These synergies come from procurement-related savings, right-sizing the divisional office structure and the consolidation of central and support functions. Cost synergies of £20m were delivered in FY25, around double the figure initially forecast, and we anticipate further cost synergies of around £45m will be unlocked in FY26.

When we announced the acquisition of Redrow in February 2024, we indicated that nine divisional offices would be closed following the completion of the acquisition. CMA clearance was granted in October 2024, and at the end of the financial year, six divisional offices have been closed and three are in the process of closing. We have also announced further consultations on head office functions to ensure roles are not being duplicated as the businesses integrate.

The Board rationalisation is now complete, and much of the other PLC and third-party cost savings have now also been realised.

Other efficiency savings

Outside of the acquisition we have continued to analyse our business processes and look for efficiency and productivity savings. In FY25 we centralised our HR function, creating a shared service centre. We also centralised our divisional payment teams into a single shared service centre to help us achieve greater consistency, control and efficiency in our payment procedures.

 

 

3.   Using capital effectively to drive growth

We are committed to maintaining a strong balance sheet. As such, we are diligent and careful with the way in which we allocate our capital.

Our priority is to identify and purchase the right land to replace the land we are developing. This is then augmented by acquiring land for expansion supporting our growth ambitions.

Next, we consider other areas within the business where investment, either organically or through acquisition, can deliver improvement in the Group's long-term performance. This may be to enhance our product offer, to unlock productivity improvements or to address supply chain weaknesses, as well as meeting innovation and regulatory challenges, or changing market dynamics.

Finally, capital which, after careful Board consideration, is not required can be returned to our shareholders. We continually assess market conditions to ensure capital is returned in the most appropriate way - which is why in February we announced a change to our shareholder returns policy.

Land

Sourcing the right land, in the right locations, at the right price is crucial for our business. That is why, over time, we have developed multiple land channels.

Planning and ownership or control status	29 June 2025	30 June 2024
Plots with detailed planning consent	59,645	40,030
Plots with outline planning consent	24,072	15,239
Plots with resolution to grant and other	3,994	2,363
Owned and unconditional land bank (plots)	87,711	57,632
Conditionally contracted land bank (plots)	12,293	8,607
Total owned and controlled land bank (plots)	100,004	66,239
Number of years supply	6.2	4.9
JVs owned and controlled land bank (plots)	8,651	4,631
Strategic land bank (acres)	22,258	16,865
Strategic land bank (plots)	145,043	106,516
Promotional land bank (plots)	113,940	105,359
Land bank carrying value (£m)	5,104.9	3,233.6

 

First, our divisional land teams are experts in identifying, bidding on and progressing immediate land opportunities, in their local area, which will deliver the right homes for the local customer base.

Second, divisions are also able to add to, and draw from, our extensive strategic land bank. We approved 12,972 plots across 42 planned future sites to add to our strategic land portfolio during the year (FY24: 4,477^R plots and 30 ^R sites). We also converted 5,860 strategic land plots (FY24: 3,723 ^R plots and 3,851^A plots) into our owned and controlled current land bank during FY25.

Third, through Gladman, the country's largest land promoter, which operates at arm's length as a standalone business within Barratt Redrow, we have a presence in the promotional land sector. Gladman's current portfolio consists of 113,940 promotional land plots (30 June 2024: 105,359 plots). During FY25, Gladman secured 10,837 plots (FY24: 9,239 plots) through new promotional agreements with landowners and, following a number of successful planning applications, achieved planning consents on 4,524 plots (FY24: 2,804 plots). Gladman generated revenue of £38.6m (FY24: £13.1m) and an operating profit, before amortisation of intangible assets, of £8.5m (FY24: £0.2m) in FY25. The Government's continued planning policy reforms will, we believe, be of significant benefit to Gladman over the coming years as there remains a general supply-demand imbalance for new housing across the country and housing numbers need to be met.

Finally, and most recently, we have formed the MADE Partnership alongside Homes England and Lloyds Banking Group. We are pleased to be working in joint venture with these two organisations and have already secured two large sites since the formation of the Partnership in September 2024 - the 2,000- home Godley Green Garden Village in Greater Manchester and the 1,500-home Handforth Garden Village in Cheshire. Barratt Redrow will build on a portion of the site, while providing other homebuilders with the opportunity to also build on already serviced land. The MADE Partnership's land holdings are held in joint venture and are therefore not included in our consolidated land bank details tabled earlier.

The significant increase in our land bank during FY25 reflected the acquisition of Redrow which saw 26,149 plots added to our owned land bank at the date of acquisition.

Throughout FY25 we also approved 22,530 plots across 108 sites (FY24: 12,439^R plots across 58^R sites) for future purchase and we invested £862.5m (FY24: £674.3m^R) in land acquisitions and the settlement of land creditors.

At 29 June 2025 the estimated average selling price of plots in our owned land bank was £366,000 (30 June 2024: 328,000R) and the estimated gross margin in our land bank, based on the current estimated average sales prices and build costs at 29 June 2025 was 19.2% (30 June 2024: 18.6%).

We continue to target a regionally balanced land bank portfolio in the medium term with 3.5 years of owned land and a further 1.0 year of controlled land. As at 29 June 2025 our land bank comprised 5.4 years of owned land (30 June 2024: 4.3^R years and 4.7 ^A years) and 0.8 years of controlled land (30 June 2024: 0.6^R years and 0.6 ^A years).

Our land bank is also commercially strong with respect to its planning status with 68.0% of our owned and unconditional land bank plots at 29 June 2025 having detailed planning consent (30 June 2024: 69.5%^R and 70.8% ^A).

During FY25, recognising the fundamental resource constraints on local authorities and the delay between the announcement and implementation of Government planning policy reforms, we successfully secured planning consents on 14,551 plots across 78 developments (FY24: 9,026^R and plots across 54^R developments). As well as progressing planning applications at a local level, we received nine decisions via planning appeal, with six allowed and three dismissed. Of the three dismissed, we are actively submitting a revised planning application on two, addressing the reasons for dismissal, which we expect to be successful.

Whilst Government planning policy is clear, we still experience many local authorities delaying or refusing planning applications due to local electorate pressures. As a result, we may continue to incur significant time delays, scheduling disruption and additional legal costs to deliver a successful planning decision on appeal. We welcome plans to introduce a National Scheme of Delegation which should see schemes, where the principle of development has already been established, benefit from greater certainty of planning decision success and minimise avoidable appeals.

To enhance our capital efficiency, we plan to increase the proportionate use of land creditors on new land purchases, where this meets the requirements and circumstances of land vendors. This will facilitate the replacement and medium to longer-term growth of our land bank, while aligning capital outflows more closely with the development programmes planned for the land acquired.

Investment opportunities

To ensure we maintain and build our competitive advantage and lead the industry, we are continually looking at areas that will benefit from incremental investment either in land supply, such as the MADE Partnership JV, in additional supply chain integration, as exemplified by our initial acquisition and subsequent expansion in timber frame manufacturing, or through more investment to secure access to innovative and emerging building products.

Following the acquisition of Oregon Timber Frame in June 2019, the decision was made to build a second production facility in Derby, built by Wilson Bowden Developments, which completed in FY24. In FY25 a further £24m has been invested in further expanding the capability and capacity of the original production facility located in Selkirk and we anticipate our timber frame capacity will grow to more than 9,000 homes over the coming three years.

While the cost of building a timber frame home can currently marginally exceed that of a traditional brick and block constructed home, depending on geographic location and local labour costs, the reduced build time combined with increased reliability of supply and the reduced embodied carbon make increasing our timber frame home production an attractive proposition. Additionally, using timber frame alleviates a level of future risk around on-site labour availability and cost. Vertically integrating and expanding this part of our supply chain will continue to provide benefits for Barratt Redrow in the years to come.

We are committed to leading the industry through access to land, our build processes and the adoption of MMC and ensuring we have access to and understanding of the latest innovations available to the homebuilding industry.

 

Shareholder returns

In February 2025 we announced a rebalancing of our shareholder returns policy. In FY24 and FY25 we have had a dividend cover policy based on 1.75 times adjusted earnings, before PPA charges associated with the Redrow acquisition. From FY26 this dividend cover policy will move to 2.0 times adjusted earnings before PPA charges, along with a commitment to a share buyback of at least £100m annually.

We believe this will provide the best value to shareholders, while maintaining our disciplined approach to capital allocation.

Notwithstanding these changes, effective from FY26, we decided to accelerate the buyback programme into the second half of FY25. Between February and the end of June we bought back 11.3m shares at a cost of £50.3m.

 

4.   Leading the industry in sustainability

As the leading national sustainable housebuilder, we design and build homes and communities that are resilient to climate change and are low carbon both in construction and in use. We were the first national housebuilder to set science-based carbon emissions targets and we are proud to lead the industry in this regard. Our strong reputation in the sector is highlighted by our award-winning developments, national and local socio-economic contributions, collaboration with our supply chain and across the industry, research and innovation and our investment in skills.

Nature

Waste reduction and resource efficiency remain priorities within the Group, alongside carbon reduction across homes, operations and the supply chain. We focus on innovation, collaboration and high-quality design, supported by better data and reporting.

We are replacing diesel with hydrotreated vegetable oil on sites, have trialled a hydrogen telehandler, and are exploring electric plant. To improve our operational water consumption data, SMART meters are now mandatory for all new site compounds. We have a track record of delivering cost reductions on site by driving down operational waste. We reduced construction waste per 100m² of house build equivalent area by 44.7% from FY20 to FY24, and we will apply the learnings from this to continue to reduce waste across the newly combined Group.

Biodiversity net gain was delivered across all regions ahead of 2024 legislation, with planning permissions in FY25 expected to achieve an 18% net gain for area habitats, 42% for hedgerow habitats and 23% for river habitats. Across the Group, 4,273 nature interventions such as bat boxes and nesting bricks have been installed.

To meet the growing demand for housing in the UK, we adopt MMC to accelerate build times, reduce waste and carbon emissions, and address shortages in both materials and skilled labour. From January 2025, timber frame construction became the standard approach across all Barratt house types, enhancing efficiency while delivering average life cycle embodied carbon savings of 5 tonnes per home.

We also play a leading role in the Future Homes Hub, working with Government, housebuilders, supply chain and financial partners to meet climate and environmental challenges for new homes.

Places

We know that our customers want places that offer sustainable living, are attractive and well designed, benefit their health and wellbeing and have a strong sense of community with excellent local links.

The timing of the combined Group and the new Government's priorities for planning and placemaking have provided us with an excellent opportunity to develop a new industry-leading placemaking vision. This will address the requirements of key policy documents and emerging guidance, while drawing and expanding on the existing placemaking frameworks of both Barratt and Redrow.

The new placemaking vision will be customer centred and focused on integrating the business' three brands seamlessly with a view to optimising sales, as well as providing confidence to stakeholders that we will deliver high-quality new communities.

We are committed to embedding accessible, inclusive and imaginative opportunities for play in every new community we create. In partnership with our charity partner Whizz Kidz, we have now launched our Inclusive Play Manual, providing guidance on delivering accessible and inclusive play environments.

We continue to promote the benefits of green mortgages, recognising the running cost advantages of new build homes. We work with lenders and government both directly and via the Future Homes Hub to align priorities and promote enhancements to new build lending criteria, processes and products.

People

We believe that everyone has the right to be respected and treated fairly at work. We do the right thing, nurturing diverse talent and prioritising the health and safety and wellbeing of our people and partners.

Our graduate and trade apprenticeships have seen an increase in female and ethnic minority background representation across the year, and we launched our first female-focused cohorts for Bricklaying and Carpentry Level 2 apprenticeships. We offer several training and support programmes including our Catalyst and Spotlight courses, both of which are aimed at minority groups within the business - women and ethnic minorities respectively.

We began our human rights supply chain risk assessment and improved monitoring and reporting of labour exploitation on our sites. See www.barrattredrow.co.uk for our modern slavery statement. 

Benchmarks and awards

We continue to demonstrate excellent performance in external benchmarks. We maintained our position as the only UK housebuilder on the CDP Climate Change A List for Leadership, one of fewer than 500 companies worldwide, and we were listed in the second edition of the TIME "World's Most Sustainable Companies" Special Report - the only housebuilder to be named.

 

 

Chief Financial Officer's Review

Solid financial performance

Introduction

Against a challenging market backdrop, we have delivered a solid financial performance this year. While Group total home completions came in slightly below our previous guidance, primarily due to the impact of fewer international and investor completions than expected in London, we delivered adjusted profit before tax slightly ahead of market expectations. This mainly reflected the better than anticipated delivery of cost synergies, at £20m, relative to our initial estimate of c. £10m in October 2024.

We are already seeing tangible benefits from the Redrow acquisition with good progress on integration activities: our new divisional management structure is in place, six divisional offices have been closed and three are in the process of closing and we are delivering cost synergies ahead of schedule with our plans for revenue synergies progressing well.

Our strong balance sheet and disciplined approach to capital allocation allowed us to announce an annual share buyback programme of at least £100m from FY26, with a £50m tranche of that programme executed in the second half of FY25.

Results for the 52 weeks to 29 June 2025

To help improve the comparability of the enlarged Group's performance since the acquisition of Redrow plc on 21 August 2024, in this report we have presented, in addition to comparative numbers as reported for the prior financial year, unaudited metrics on an aggregated basis, which includes the performance of the legacy Redrow plc group (the "Redrow Group") from 24 August 2023 to 30 June 2024, excluding accounting policy and purchase price allocation adjustments. Purchase price allocation adjustments relate to the unwind through the income statement of fair value adjustments made to the balance sheet of Redrow plc when it was acquired by the Group under IFRS 3 Business Combinations.

		Year ended 30 June 2024
Metric	52 weeks to 29 June 2025	Aggregated performance including Redrow plc from 24 August 2023A	Reported performance (excluding Redrow plc)
Total home completions	16,565	17,972	14,004
Revenue (£m)	5,578.3	5,689.9	4,168.2
Adjusted gross profit (£m)	875.2	973.2	689.0
Reported gross profit (£m)	784.8	793.7	509.5
Adjusted profit before tax (£m)	488.3	585.7	385.0
Reported profit before tax (£m)	273.7	363.2	170.5

Home reservation activity

Our net private reservation rate per sales outlet per week increased by 16.4% to 0.64 when compared with the aggregated performance of 0.55^A for Barratt and Redrow in the comparable period (FY24: 0.58^R). This included a contribution of 0.08 (FY24: 0.08^R; 0.06^A) from reservations into the private rental sector ('PRS') and other multi-unit sales.

As well as our ongoing strategic partnership with Lloyds Living, reservation activity was complemented by sales to a growing portfolio of PRS partners. Overall, we successfully secured 1,693 (FY24: 1,452^R) private reservations through PRS-related activity and the strength of our relationships with Registered Providers and other multi-unit investors, which supported total private completions in FY25 and our future order book for completions in FY26 and FY27.

We saw some improvement in mortgage market competition and availability but underlying private sales activity has remained relatively flat, driven by the uncertain economic backdrop and the ongoing affordability challenges faced by homebuyers. The London housing market has been particularly challenging with weak demand from both domestic and international homebuyers. Across the Group, the improved reservation rate during the first half was broadly maintained through the second half of the year while pricing and incentive levels across the two periods remained similar.

Home completions

Total home completions (including JVs) reduced by 7.8%^C to 16,565 from 17,972 in FY24 (FY24: 14,004^R). While home completions declined 12.0%^C in the first half, the stronger order book entering the second half and solid reservation rates meant that second half volume was 4.7%^C lower year on year. As noted above, in Q4 we saw lower than expected completions at several of our sites in London, primarily driven by international customers and PRS investors, a large proportion of which are expected to complete in FY26.

Income statement

Group revenue was £5,578.3m in FY25 (FY24: £4,168.2m^R; £5,689.9m^A), from Group total home completions at 16,565 (FY24: 14,004^R; 17,972^A). 

The average selling price (ASP) of our wholly owned completions increased by 6.3%^C to £343.8k (FY24: £306.8k^R; £323.4k^A), with affordable homes' ASP increasing to £177.1k (FY24: £165.3k^R; £176.0k^A) and accounting for 18.1% (FY24: 20.8%^R; 23.8%^A) of wholly owned completions. Our private ASP increased by 3.0%^C to £380.6k (FY24: £343.9k^R, £369.5k^A), largely due to changes in product and geographic mix.

Adjusted gross profit reduced by 10.1%^C to £875.2m (FY24: £689.0m^R; £973.2m^A). We experienced a 140 basis point decline in adjusted gross margin in the period to 29 June 2025, compared to the FY24 adjusted aggregated performance. This reflected the impact of home completion volume gearing, with house prices and build costs broadly stable at a combined Group level, as well as the purchase price allocation and accounting policy alignment impacts on Redrow's adjusted gross profitability.

The purchase price allocation impact in FY25 reduced adjusted gross profit by £95.1m with a further reduction of an estimated £25m in relation to the impact of alignment of accounting policies. These adjustments, along with the operational gearing impact of lower home completions in the period, resulted in adjusted gross margin of 15.7% (FY24: 16.5%^R; 17.1%^A). Adjusted gross margin before the impact of purchase price allocation adjustments was 17.4% (FY24: 16.5%^R; 17.1%^A).

Incorporating net adjusting item charges in cost of sales of £90.4m, relating to legacy property costs (FY24: £179.5m^R&A charge), resulted in reported gross profit of £784.8m and a reported gross margin of 14.1% (FY24: 12.2%^R; 13.9%^A).

Administrative expenses before adjusting items were £379.0m (FY24: £314.5m^R; £396.5m^A) and included:

·	the consolidation of Redrow's administrative expenses from 21 August 2024;
·	Group-wide inflationary salary increases at an average of c. 3%;
·	estimated synergies in relation to central and divisional administrative expenses of £16m; and
·	an increase in sundry income to £18.5m, when compared with £14.8m in FY24R&A.

After deducting administrative expenses before adjusting items and a net gain of £3.9m on part-exchange activities (FY24: £2.1m^R&A), the Group delivered an adjusted profit from operations of £500.1m (FY24: £376.6m^R; £578.8m^A), with an adjusted operating margin of 9.0% (FY24: 9.0%^R; 10.2%^A).

To help the understanding of underlying margin performance across the year, the following reconciliation is provided detailing the main components of margin movements in the period:

The Barratt Redrow adjusted operating margin was stable at 9.0% in FY25 (FY24: 9.0%^R) with several moving parts:

·	Completion volumes: the decline in wholly owned completions created a 120 bps negative impact.
·	Net inflation: modest sales price improvements combined with broadly flat build cost inflation produced a 110 bps positive impact.
·	Completed developments provision: after reflecting the increasingly extended time periods being experienced in relation to the adoption of roads and public space by local authorities on completed developments, lower year on year charges in the period created an 80 bps positive margin impact.
·	Redrow, mix and other items: Redrow's standalone performance, along with changes in sales mix, profitability on part-exchange properties and a policy amendment in relation to land options drove the remaining net 70 bps positive margin impact.
·	Synergies: the estimated crystallisation of cost synergies of £20m had a 30 bps positive impact.

The adjusted operating margin was also then finally impacted by IFRS 3 purchase price allocation adjustments which reduced adjusted operating profit by £95.3m and the Group adjusted operating margin by a 170 bps.

Adjusted items

Adjusted items recognised within reported operating profit in FY25 were £214.6m (FY24: £201.9m^R; £209.9m^A) and consisted of:

-	costs incurred in respect of legacy properties of £106.2m gross and £90.4m after recoveries from third parties (FY24: £180.0mR&A gross; £179.5mR&A net) along with associated legal fees of £2.2m;
-	costs in relation to the Redrow acquisition of £36.2m (FY24: £22.4mR; £30.4mA);
-	reorganisation and restructuring costs to unlock cost synergies of an estimated £56.8m (FY24: £nilR&A); and
-	CMA voluntary commitments costs of £29.0m (FY24: £nilR&A).

After adjusted items, the reported operating profit was £285.5m (FY24: £174.7m^R; £368.9m^A) and the reported operating margin for the period was 5.1% (FY24: 4.2%^R; 6.5%^A).

Net finance charges were £29.0m (FY24: £6.5m^R; £8.0m^A). This reflected a reduced benefit from interest received on cash on deposit, with finance income reducing to £35.6m (FY24: £47.2m^R), as well as an increase in finance costs to £64.6m (FY24: £53.7m^R).

The step up in finance costs reflected non-cash interest costs which included:

·	The imputed interest charged with respect to land creditors, at £17.5m (FY24: £10.7mR) reflected higher average land creditors during the year; and
·	An increased imputed finance charge from unwinding the discount attached to legacy property provisions of £33.6m (FY24: £29.5mR), reflecting the increase in legacy property provisions at the start of the financial year and provisions acquired through the acquisition of Redrow.

We now anticipate FY26 net finance costs will be around £50m, ‎comprising c. £5m of net cash finance income and c. £55m of non-cash finance charges, reflecting both a further reduction in cash deposits and the legacy property provision position at the year-end.

The Group's reported share of JV profit was £17.2m (FY24: £2.3m^R&A) with no adjusting charges associated with legacy properties (FY24: £12.6m^R&A charge); as a result, the adjusted share of JV profit was £17.2m (FY24: £14.9m^R&A).

Adjusted profit before tax was £488.3m (FY24: £385.0m^R; £585.7m^A) and, after adjusted items, profit before tax was £273.7m (FY24: £170.5m^R; £363.2m^A). Adjusted profit before tax and the impact of PPA adjustments, totalling £103.3m, was £591.6m.

The Group recognised £87.3m of total tax charges (FY24: £56.4m^R) at an effective rate of 31.9% (FY24: 33.1%^R), with the tax rate impacted by the absence of tax deductibility with respect to Redrow transaction costs reported in adjusted items. The expected tax rate for the Group in FY26 is 29% on adjusted profit before tax, including Residential Property Developer Tax of 4%.

Adjusted basic earnings per share reduced to 25.5 pence per share (FY24: 28.3 pence^R per share). The step up in adjusted pre-tax profitability was offset by the increase in average shares in issue, following the acquisition of Redrow, and resulted in a 9.9% reduction in adjusted earnings per share.

Adjusted basic earnings per share before the impact of PPA adjustments was 30.8 pence per share. This measure is also used in determining our dividend per share for FY25 and based on dividend cover of 1.75 times, resulted in a full year dividend of 17.6 pence per share (FY24: 16.2^R pence per share).

Basic earnings per share increased by 15.3% to 13.6 pence per share (FY24: 11.8 pence^R per share).

The Group's ROCE declined to 9.0% (FY24: 9.5%^R) due to operational leverage and the impact of £95.3m of PPA adjustments which reduced adjusted operating profit. The Group's ROCE before the impact of PPA adjustments equated to 10.7%.

Acquisition of Redrow plc

The Group completed the acquisition of Redrow plc on 21 August 2024. The fair value of the consideration paid of £2,528.9m included a premium of £557.8m to the book value of the net tangible assets of the Redrow Group at the date of completion. As required by IFRS 3: 'Business Combinations', the identifiable assets and liabilities of Redrow have been recognised on the Group Balance Sheet at their fair value at the acquisition date.

The fair values were provisional as at the half year and have been revised during the second half as our assessment of building safety and inventories was completed. The most significant adjustment to the fair value related to a review of Redrow's portfolio of reinforced concrete frame buildings. As a result of this review and the total revision to legacy property provisions and inventories fair values of £131.8m on pre-tax basis and £93.6m on a post-tax basis, goodwill has increased to £321.9m. The excess of the consideration over the net tangible assets acquired at £557.8m is recorded as goodwill (£321.9m) and intangible assets (£235.9m).

The final net assets and liabilities recognised as a result of the acquisition are detailed in note 9. Fair value adjustments to the Redrow book value of assets and liabilities, after reclassification of balances to align with their presentation in the Barratt Group financial statements, are shown in the next table:

 

Redrow plc - fair value adjustments £m	Explanatory note	Fair value adjustment £m
Inventories
- Land options	1(a)	71.3
- Land not in development	1(b)	(60.5)
- Land and work in progress in development	1(c)	120.4
Provisions
Legacy property provisions	2(a)	(144.5)
Completed development provisions	2(b)	(17.2)
Intangible assets
Brand	3(a)	231.8
Customer order book	3(b)	4.1
Other items including tax liabilities and other creditors		35.5
Deferred tax on adjustments above	4	(93.7)
Goodwill	5	321.9
Total adjustment to net assets acquired		469.1

 

Explanatory notes

1.	The market value of land options on which planning has progressed; land not in development; and land and work in progress in development were adjusted to fair value.
	(a)	In relation to land options held by Redrow, progression on planning resulted in an increase in their carrying value of £71.3m.
	(b)	Land not yet under development was adjusted to reflect recent market conditions, resulting in a reduction in carrying value of £60.5m.
	(c)	Land and work in progress in development was valued to reflect its current stage of development. This resulted in an increase in carrying value of £120.4m.
2.	Redrow's provisions have been adjusted to fair value.
	(a)	Redrow legacy property provisions were increased. This reflected the requirement under IFRS 3 to bring contingent liabilities onto the balance sheet, as well as the additional provision required in relation to reinforced concrete frame issues identified in the second half of FY25. After the impact of discounting there was a net increase in the provision carrying value of £144.5m.
	(b)	The reappraisal of the Redrow completed development provision resulted in a £17.2m increase in the provision.
3.	In relation to intangible asset recognition.
	(a)	The fair value of the Redrow brand is £231.8m and based on the assumption that the brand will be maintained into the future, the brand will not be amortised.
	(b)	The Redrow order book had a fair value uplift of £4.1m reflecting the embedded margin at the date of acquisition.
4.	All adjustments are anticipated to be subject to the Group's effective tax rate at 29% and a deferred tax liability of £93.7m has been recognised in the balance sheet at acquisition and will be released as these various PPA adjustments impact the income statement over the coming years.
5.	The remaining balance of the premium to net asset value of £321.9m was recognised as goodwill.

We expect these fair value adjustments to largely unwind through the income statement over a period of 24 months from the balance sheet at acquisition. The reduction in reported profit before tax was £103.3m in FY25 and the reduction in reported profit before tax is anticipated will be c. £20m in FY26 with no further material impacts on profit before tax expected in subsequent years.

In addition to the fair value adjustments above, the Redrow results for the period have been consolidated under Barratt Group accounting policies, in particular the recognition of development-wide costs to complete. This increased cost of sales in FY25 by an estimated £25m when compared to Redrow's previous accounting policies.

Building safety

We continue to make progress with the assessment and remediation of buildings covered under the Building Safety Self-Remediation Terms and Contract, to which the Group became a signatory on 13 March 2023. The Group is now also responsible for the legacy Redrow portfolio. The fair value of Redrow's fire safety provision was recognised at £184.3m at the date of acquisition and included in the Group's interim results to 29 December 2024.

During FY25 additional legacy property related costs were recognised. These costs related to:

·	charges relating to legacy property provisions, including revaluations, which totalled £106.2m and which, after recoveries from third parties of £15.8m and associated legal costs of £2.2m, resulted in an adjusted item charge of £92.6m; and
·	new issues identified post-acquisition with respect to reinforced concrete frame design and construction and, after investigation, testing and quantification in the second half of FY25, a revision to the Redrow opening balance sheet fair value of £131.8m.

Remediation cost estimates for the EWS portfolio remained broadly stable during the period with an increase of £15.8m in respect of minor cost increases, offset by a small revaluation of the provision to its present value. However, additional costs of £93.1m were recognised in the second half in relation to two specific developments:

·	In our Southern region, we identified fire safety-related issues at a development involving four buildings which were completed in 2002. The remediation and associated costs with respect to these buildings, having reviewed their particular design and build characteristics, are estimated to be £76.4m.
·	Additional costs of £16.7m were recognised relating to newly identified issues at a large development in London which was already part of our EWS portfolio and provision.

Of the 278 buildings remaining in our 'under review' portfolio, 263 are the responsibility of our dedicated Building Safety Unit, while the remaining 15 are being remediated through the Government's Building Safety Fund (superseded by the Cladding Safety Scheme ('CSS') from 1 September 2025). As well as our "under review" portfolio of buildings we hold responsibility for a further 464 buildings which are not under active review. This "inactive" portfolio has been appraised for issues relating to external wall systems through a number of channels including communications with building owners, managing agents and principal accountable persons as well as external inspections, and direct communications from residents. Based on these measures, we do not believe buildings in the inactive portfolio to require any remediation other than that already provided at the balance sheet date.

To help understand the Group's portfolio in the context of MHCLG reporting of remediation progress in England, the table below details movements in our "under review" portfolio across FY25 as well as a reconciliation to the total buildings where we hold developer responsibility.

	Buildings 11m -18m	Buildings above 18m	Total buildings
Portfolio under review at 1 July 2024	116	146	262
Redrow portfolio additions	10	17	27
Additional buildings identified for review	9	10	19
Buildings remediated or no remediation required	(15)	(15)	(30)
Portfolio under review at 29 June 2025	120	158	278
Residual portfolio under review in England only			243
Inactive portfolio in England			464
Completed remediation in England			128
Total buildings in England per MHCLG definitions			835

 

Reinforced concrete frames

Following the Redrow acquisition, notwithstanding the absence of any issues identified during the acquisition process, we commenced a full review of Redrow's portfolio of reinforced concrete frame buildings, leveraging our experience gained on these issues over recent years and our commitment to building safety.

These investigations have identified that remediation works may be required at up to four Redrow developments in London. Based on our initial estimates, we have revised the fair values of inventories and legacy property provisions, at the acquisition date by £131.8m, respectively £26.6m as an adjustment to inventories and £105.2m as an addition to provisions, which resulted in a net adjustment to goodwill after tax of £96.3m.

At the year end the portfolio of reinforced concrete frame buildings, across both Barratt and historical Redrow developments, totalled 165 buildings of which 75 have been identified as not requiring remediation; 17 have had remediation works completed; 22 are currently under review; and 51 have had remediation issues identified and are at various stages in the remediation process.

Given the design specific nature of remediation works with respect to reinforced concrete frames and our work and reviews of the design input from specific design engineers, we anticipate that no further buildings will come into scope looking forward.   

Legacy properties - impacts in FY25

During FY25 we spent £100.6m (FY24: £91.5m^R) on the remediation of legacy properties involving both EWS and reinforced concrete frame buildings remediation works.

At 29 June 2025, provisions relating to building safety were £886.4m and in relation to reinforced concrete frame buildings were £187.4m. In total the Group legacy property provision is £1,073.8m and we expect to incur cash costs of approximately £250m during FY26.

Whilst charges for legacy property-related remediation costs reflect our current best estimates of the extent and future costs of work required, we may have to update these figures as assessments and work progress.

Cash flow

Net cash decreased to £772.6m at 29 June 2025 (30 June 2024: £868.5m^R; £1,164.5m^A). The main components of the change in net cash position were:

·	a £29.3m net cash inflow from operating activities (FY24: £96.2mR cash inflow);
·	a £195.8m net cash inflow from investing activities (FY24: inflow of £12.0mR), with Redrow cash balances at the point of acquisition of £194.3m being the most notable impact; and
·	a £320.8m net cash outflow from financing activities (FY24: outflow of £308.6mR), principally reflecting dividends paid of £249.3m (FY24: £270.6mR) and share buyback costs of £50.3m, including stamp duty charges (FY24: £nil).

The major driver of the decline in net cash inflow from operating activities to £29.3m in the period was the net cash outflow from working capital and provisions of £136.8m (FY24: £12.0m outflow) and net interest and tax payments, which increased to £139.3m (FY24: £73.7m payments) as a result of the Redrow acquisition.

The net £136.8m outflow (FY24: £12.0m^R outflow) with respect to working capital and provisions included:

·	investment of £265.5m (FY24: £38.0mR) with respect to inventories which included additional net land investment of £180.6m and additional part-exchange property costs carried of £38.9m;
·	an £89.3m increase (FY24: £87.2mR decrease) in payables, which included land creditor balances increasing by £167.4m (FY24: £33.9mR reduction) and a decrease in trade and other payables of £85.0m (FY24: £53.3mR reduction); and
·	a £40.5m increase in provisions (FY24: £132.8mR increase) created in large part by the additional legacy building safety charges incurred in FY25. During FY25, we spent £100.6m (FY24: £91.5mR) on the remediation of legacy properties.

Balance sheet

Our balance sheet remains strong despite the scale of the Redrow acquisition, and the purchase price allocation adjustments required by IFRS 3, detailed earlier.

The Group's net assets at 29 June 2025 were £7,873.0m (30 June 2024: £5,439.1m^R; £7,522.1m^A) after the payment of dividends totalling £249.3m (30 June 2024: £270.6m^R) and £50.3m incurred on the share buyback, including stamp duty charges. Looking at the assets and liabilities which make up our balance sheet:

·	Goodwill increased to £1,174.8m (30 June 2024: £852.9mR&A), reflecting goodwill of £321.9m recognised on the acquisition of Redrow.
·	Intangible assets, which include brands, customer contracts and contract relationships, increased to £408.4m (30 June 2024: £184.5mR&A) with the recognition of intangible assets of £235.9m with respect to the Redrow acquisition and amortisation charges of £14.5m (FY24: £10.4mR).
·	The total investment in our land bank increased by £1,871.3m to £5,104.9m (30 June 2024: £3,233.6mR, £4,751.6mA) with the underlying increase in land investment, excluding the impact of the Redrow acquisition, equating to £180.6m.
·	Construction work in progress was tightly controlled and increased to £2,979.0m (30 June 2024: £1,829.4mR; £2,928.4mA) with underlying construction work in progress, excluding the Redrow acquisition impact, increasing by £32.7m.
·	Investment in land promotion activity at Gladman was once again tightly controlled with a £0.9m increase in promotional agreement work in progress to £112.4m (30 June 2024: £111.5mR&A).
·	Part-exchange properties and other inventories increased to £144.3m (30 June 2024: £103.7mR&A) reflecting the importance of part exchange for many of our customers, as well as the initial introduction of our comprehensive part-exchange schemes to Redrow sales outlets. Part-exchange inventory was however carefully controlled with 371 of the total holdings of 549 part-exchanged homes sold at the year end (30 June 2024: 309 sold of total holdings of 429 homesR).
·	At 29 June 2025, the Group held net cash balances of £772.6m (30 June 2024: £868.5mR; £1,164.5mA).

Looking at the key liabilities on our balance sheet:

·	Reflecting the acquisition of Redrow and the reduced level of building activity across the year, trade and other payables, excluding land creditors, reduced on a comparable basis to £1,131.1m (FY24: £754.3mR; £1,289.3mA).
·	With our return to the land market, creating momentum in active land approvals and increased land purchases, we have sought to secure land on deferred terms which align our cash spending commitments with the scheduling of development and home completions. As a result, our land creditors at 29 June 2025 increased to £809.4m (30 June 2024: £472.8mR; £633.8mA) and equated to 15.9% (30 June 2024: 14.6%R; 13.3%A) of the owned land bank.
·	During FY26, £437.3m of land creditors will fall due for payment (30 June 2024, during FY25: £307.8mR; £424.8mA). Land creditors due beyond 28 June 2026 totalled £372.1m at 29 June 2025 (30 June 2024: £165.0mR; £209.0mA due beyond 30 June 2025).
·	Provisions increased to £1,371.3m at 29 June 2025 (30 June 2024: £921.2mR; £1,100.2mA) and included £1,073.8m (30 June 2024: £730.3mR, £903.3mA) of provisions to cover future costs in connection with building safety and reinforced concrete frames (see note 13 of the financial statements for further detail).

Net tangible assets at 29 June 2025 were £6,289.8m and 437 pence per share (30 June 2024: £4,401.7m^R; 452 pence per share^R). Land, net of land creditors and work in progress, totalled £7,274.5m and 505 pence per share at 29 June 2025 (30 June 2024: £4,590.2m^R; 471 pence per share^R).

Operating framework, capital allocation and returns to shareholders

During the year the Board reviewed the Group's capital allocation framework considering the Group's business plan, medium-term targets, capital structure and shareholder feedback.  It is vital that our operating framework and capital structure continue to deliver a stable and solid foundation for the Group, with shareholders' funds and land creditors funding the longer-term land requirements of our business and term loans and bank debt funding the shorter-term requirements for working capital. The Board also decided to rebalance capital returns between ordinary dividends and share buybacks.

Following Board approval, the Group announced in February 2025 with the half year results:

·	an objective to increase land creditor funding of the Group's land investment to between 20% and 25% over the medium term;
·	an annual share buyback programme of at least £100m per annum from FY26, with an initial buyback of £50m during the second half of FY25; and
·	a refinement to dividend cover, which will move to 2.0 times cover based on adjusted earnings before purchase price allocation adjustments in FY26 from 1.75 times cover which applied previously.

In pursuing this clear framework, we will seek to ensure that the Group remains in a strong financial position through the cycle, ready to take both operational and financial decisions which protect shareholder value as well as allowing us to take advantage of a market recovery or organic investment opportunities in the future.

Our operating framework remains unchanged from that disclosed at our HY25 results, and our performance against targets at 29 June 2025 and the aggregated business at 30 June 2024 are summarised below.

 

	Operating framework	Position at 29 June 2025	At 30 June 2024A
Land bank	c. 3.5 years owned and c. 1.0 year controlled	5.4 years owned and 0.8 years controlled	4.7 years owned and 0.6 years controlled
Land creditors	Increase usage to 20-25% of the land bank over the medium term	15.9%	13.3%
Net cash	Target average net cash over the financial year	FY25: average net cash of £466.8m	FY24: average net cash of £732.3mR*
	Year-end net cash	£772.6m	£1,164.5m
Total indebtedness	Minimal year-end net indebtedness in the medium term	Total net indebtedness of £36.8m	Total net surplus of £530.7m
Treasury	Appropriate financing facilities	£700m Revolving Credit Facility extended to November 2029 and £200m US Private Placement Notes maturing August 2027	£700m Revolving Credit Facility extended to November 2028 and £200m US Private Placement Notes maturing August 2027
Dividend policy	Dividend cover of 2.0x adjusted earnings per share	FY25: total ordinary dividend of 17.6 pence per share	FY24: total ordinary dividend of 16.2 pence per share**

Note: * Average net cash based on Barratt Developments PLC reported in FY24.  

** Dividend reflects the dividend per share declared in respect of each Barratt Developments PLC share.

Treasury

The Board sets and approves the Treasury Policy and senior management controls day-to-day operations. The Group's Treasury Policy seeks to maintain an appropriate capital structure and provide the right platform for the business to manage both operating risks and opportunities.

Cash management and relationships with our banking partners are co-ordinated centrally by Group Treasury. During the year, we agreed the final one-year extension to our £700m Revolving Credit Facility (RCF) with our lenders, extending its term to November 2029. Our £200m US Private Placement Notes remain in place and are repayable in August 2027.

Tax

The Group does not enter into business transactions for the sole purpose of reducing potential tax liabilities. The Group's tax strategy is to only use any available reliefs and exemptions, which have been set out in current tax legislation, to minimise the Group's tax liabilities.

The effective rate of corporation tax, including RPDT, for the 52-week period ended 29 June 2025 was 31.9% (FY24: 33.1%^R) which, reflecting the impact of the non-deductible Redrow transaction expenses, was above the standard effective rate of tax of 29% (inclusive of RPDT at 4%) (FY24: 29% inclusive of RPDT at 4%).

Pensions

Defined contribution pension arrangements are in place for all current employees. Defined contribution scheme charges for qualifying employees totalled £32.5m (FY24: £21.2m^R). Pension contributions are based upon a fixed percentage of each qualifying employee's pay and once paid, the Group has no further obligations under these schemes. The Redrow group of companies also operates the Redrow Staff Pension Scheme which, in part, comprised a defined benefit pension plan. This scheme was closed to new entrants from July 2006 and closed to future accrual from 1 March 2012. The Group made no contributions to this scheme in FY25 and does not expect to make contributions in FY26. At 29 June 2025 a scheme surplus of £4.2m has been recognised in the Group Balance Sheet.

 

Guidance for FY26

Total home completions	c. 17,200-17,800 total home completions including c. 600 JV completions Affordable mix expected to be c. 20%
Average sales outlet movement (inc. JVs)	Broadly flat on FY25
Build cost inflation	c. 1-2% including estimated procurement-based cost synergies
PPA impacts on adjusted profit before tax	c. £20m charge
Adjusted administrative expenses	c. £400m (including amortisation of intangible assets of c. £10m and estimated incremental cost synergies of c. £30m)
Synergy savings	Incremental c. £45m within adjusted profit before tax (£65m cumulative)
Interest charges	c. £50m interest charge for the year (c. £5m cash credit, c. £55m non-cash charges)
Land approvals	Expect to replace plots utilised in the year
Land cash spend	c. £0.8bn - £0.9bn
Land creditors	15% - 16%
Building Safety spend	c. £250m
Year-end net cash	c. £0.4bn - £0.5bn
Taxation	Tax rate on adjusted earnings anticipated at 29%, reflecting current corporation tax rate and 4% RPDT
Ordinary dividend cover	2.0x ordinary dividend cover based on adjusted earnings per share and excluding purchase price allocation (PPA) fair value adjustments

 

Well positioned for FY26

We have a strong balance sheet, a solid forward sales position, and we are executing the integration of Redrow at pace, which stands us in a strong position as we enter FY26.

Homebuyer confidence does remain fragile, reflecting uncertainties around the wider economy and taxation, and mortgage rates remain elevated compared to recent years but there remains a long-term under-supply of new homes and we continue to see solid mortgage market competition and availability.

Our teams are focused on securing our targeted cost synergies, progressing incremental sales outlets through planning to enhance our sales outlet position in FY27 and FY28 and ensuring we optimise our land buying, as well as our build and sales programmes, to offer the greatest choices to our customers whilst driving efficiency in our use of capital and value for all our stakeholders.

 

Mike Scott

Chief Financial Officer

16 September 2025

 

 

Notes:

R. Reported and denotes a Barratt Developments PLC Group (Barratt Group) reported metric based on the standalone performance of the Barratt Group in the comparable reporting period.

A. Aggregated and denotes an aggregated metric based on the reported performance of the Barratt Group in the comparable reporting period 1 July 2023 to 30 June 2024 and includes the performance of the legacy Redrow plc group (Redrow Group) from 24 August 2023 to 30 June 2024, to provide comparability on operational and financial performance. Redrow Group data is based on Redrow plc's standalone accounting policies and therefore excludes any impact of policy alignments made since the acquisition. Aggregated adjusted measures are also presented, prepared on the same basis. The aggregated value comparatives have not been audited or reviewed by Barratt Redrow plc's auditor.

C. Percentage change identified references the change compared with the aggregated comparator.

 

 

Consolidated Income Statement and Statement of Comprehensive Income

52 weeks ended 29 June 2025

Continuing operations	Notes	52 weeks ended 29 June 2025 £m	Year ended 30 June 2024 £m
Revenue	2	5,578.3	4,168.2
Cost of sales		(4,793.5)	(3,658.7)
Gross profit		784.8	509.5
Administrative expenses		(503.2)	(336.9)
Part-exchange income		402.5	333.7
Part-exchange expenses		(398.6)	(331.6)
Operating profit	3	285.5	174.7
Finance income	5	35.6	47.2
Finance costs	5	(64.6)	(53.7)
Net finance costs	5	(29.0)	(6.5)
Share of post-tax profit from joint ventures		17.2	2.3
Profit before tax		273.7	170.5
Tax	6	(87.3)	(56.4)
Profit for the period, all of which is attributable to the owners of the Company		186.4	114.1
Other comprehensive expense
Items that will not be reclassified to profit and loss:
Remeasurement of employment benefit obligations and assets		(0.7)	-
Tax on remeasurements		0.2	-
Other comprehensive expense for the period		(0.5)	-
Total comprehensive income for the period all of which is attributable to the owners of the Company		185.9	114.1
Earnings per share from continuing operations
Basic	7	13.6p	11.8p
Diluted	7	13.3p	11.6p

 

Adjusted items:

		Gross profit		Operating profit		Share of post-tax profit from joint ventures		Profit before tax
		52 weeks ended     29 June 2025 £m	Year ended     30 June 2024 £m	52 weeks ended    29 June 2025 £m	Year ended     30 June 2024 £m	52 weeks ended    29 June 2025 £m	Year ended     30 June 2024 £m	52 weeks ended    29 June 2025 £m	Year ended     30 June 2024 £m
	Notes
Reported profit		784.8	509.5	285.5	174.7	17.2	2.3	273.7	170.5
Cost associated with legacy properties	4	106.2	180.0	106.2	180.0	-	12.6	106.2	192.6
Legacy property recoveries	4	(15.8)	(0.5)	(15.8)	(0.5)	-	-	(15.8)	(0.5)
Costs incurred in respect of the acquisition of Redrow plc	4	-	-	36.2	22.4	-	-	36.2	22.4
Reorganisation and restructuring costs	4	-	-	56.8	-	-	-	56.8	-
CMA commitment	4	-	-	29.0	-	-	-	29.0	-
Legal fees	4	-	-	2.2	-	-	-	2.2	-
Adjusted profit		875.2	689.0	500.1	376.6	17.2	14.9	488.3	385.0

 

Statement of Changes in Shareholders' Equity

Group

	Share capital (note 14) £m	Share premium £m	Merger reserve £m	Capital redemption reserve (note 15) £m	Own shares reserve (note 16) £m	Share-based payments £m	Group retained earnings due to shareholders of the Company £m	Total Group retained earnings due to shareholders of the Company £m	Non- controlling interests £m	Total equity £m
At 1 July 2023	97.4	253.5	1,109.0	4.8	(23.2)	20.8	4,133.6	4,131.2	0.5	5,596.4
Profit for the year being total comprehensive income recognised for the year ended 30 June 2024	-	-	-	-	-	-	114.1	114.1	-	114.1
Dividend payments (note 8)	-	-	-	-	-	-	(270.6)	(270.6)	-	(270.6)
Distributions to non-controlling interests	-	-	-	-	-	-	-	-	(0.4)	(0.4)
Share-based payments	-	-	-	-	-	19.9	-	19.9	-	19.9
Purchase of own shares by EBT	-	-	-	-	(23.3)	-	-	(23.3)	-	(23.3)
Transfers in respect of share options	-	-	-	-	9.6	(12.1)	4.7	2.2	-	2.2
Tax on share-based payments	-	-	-	-	-	0.8	-	0.8	-	0.8
At 30 June 2024	97.4	253.5	1,109.0	4.8	(36.9)	29.4	3,981.8	3,974.3	0.1	5,439.1
Profit for the 52 weeks ended 29 June 2025	-	-	-	-	-	-	186.4	186.4	-	186.4
Remeasurement of employment benefit obligations and assets	-	-	-	-	-	-	(0.7)	(0.7)	-	(0.7)
Tax on remeasurements	-	-	-	-	-	-	0.2	0.2	-	0.2
Total comprehensive income recognised for the 52 weeks ended 29 June 2025	-	-	-	-	-	-	185.9	185.9	-	185.9
Dividend payments (note 8)	-	-	-	-	-	-	(249.3)	(249.3)	-	(249.3)
Issue of share capital	1.1	-	-	-	(1.1)	-	-	(1.1)	-	-
Share capital issued as consideration for the acquisition of Redrow plc	46.6	-	2,482.0	-	-	-	-	-	-	2,528.6
Buyback and cancellation of shares	(1.1)	-	-	1.1	(0.5)	-	(49.8)	(50.3)	-	(50.3)
Share-based payments	-	-	-	-	-	19.2	-	19.2	-	19.2
Transfers in respect of share options	-	-	-	-	11.8	(17.5)	4.9	(0.8)	-	(0.8)
Tax on share-based payments	-	-	-	-	-	0.6	-	0.6	-	0.6
At 29 June 2025	144.0	253.5	3,591.0	5.9	(26.7)	31.7	3,873.5	3,878.5	0.1	7,873.0

 

Balance sheet

At 29 June 2025

		Group
	Notes		29 June 2025 £m	30 June                     2024 £m
Assets
Non-current assets
Goodwill	10		1,174.8	852.9
Other intangible assets	10		408.4	184.5
Investments in jointly controlled entities			193.2	158.5
Property, plant and equipment			86.4	57.5
Right-of-use assets			47.0	41.2
Retirement benefit surplus			4.2	-
Trade and other receivables			5.0	3.4
			1,919.0	1,298.0
Current assets
Inventories	11		8,340.6	5,278.2
Trade and other receivables			241.1	201.9
Current tax assets			79.5	31.8
Cash and cash equivalents	12		969.6	1,065.3
			9,630.8	6,577.2
Total assets			11,549.8	7,875.2
Liabilities
Non-current liabilities
Loans and borrowings	12		(200.0)	(200.0)
Trade and other payables			(382.5)	(172.0)
Lease liabilities			(37.5)	(29.4)
Deferred tax liabilities			(109.8)	(45.0)
Provisions	13		(588.1)	(543.2)
			(1,317.9)	(989.6)
Current liabilities
Trade and other payables			(1,558.0)	(1,055.1)
Lease liabilities			(17.7)	(13.4)
Provisions	13		(783.2)	(378.0)
			(2,358.9)	(1,446.5)
Total liabilities			(3,676.8)	(2,436.1)
Net assets			7,873.0	5,439.1
Equity
Share capital	14		144.0	97.4
Share premium			253.5	253.5
Merger reserve	15		3,591.0	1,109.0
Capital redemption reserve	15		5.9	4.8
Total retained earnings			3,878.5	3,974.3
Equity attributable to the owners of the Company			7,872.9	5,439.0
Non-controlling interests			0.1	0.1
Total equity			7,873.0	5,439.1

 

 

Cash Flow Statement

52 weeks ended 29 June 2025

		Group
	Notes	52 weeks ended 29 June  2025 £m	Year ended     30 June  2024 £m
Net cash inflow from operating activities		29.3	96.2
Investing activities:
Purchase of property, plant and equipment		(18.1)	(7.2)
Proceeds from the disposal of property, plant and equipment		1.5	0.3
Purchase of intangible assets	10	(2.5)	-
Cash acquired on acquisition of subsidiary	9	194.3	-
Payments increasing amounts invested in jointly controlled entities		(47.8)	(38.3)
Repayment of amounts invested in jointly controlled entities		24.2	4.8
Distributions received from jointly controlled entities		6.1	7.1
Interest received		38.1	45.3
Net cash inflow from investing activities		195.8	12.0
Financing activities:
Dividends paid to equity holders of the Company	8	(249.3)	(270.6)
Distribution made to non-controlling interest		-	(0.4)
Purchase of own shares for the EBT		-	(23.3)
Buyback of own shares		(50.3)	-
Payment of dividend equivalents		(1.1)	(0.5)
Share issue costs on acquisition of subsidiary	9	(0.3)	-
Proceeds from the exercise of Sharesave options		0.3	2.7
Repayment of lease liabilities		(20.1)	(16.5)
Net cash outflow from financing activities		(320.8)	(308.6)
Net decrease in cash, cash equivalents and bank overdrafts		(95.7)	(200.4)
Cash, cash equivalents and bank overdrafts at the beginning of the period		1,065.3	1,265.7
Cash, cash equivalents and bank overdrafts at the end of the period	12	969.6	1,065.3

 

 

		Group
Reconciliation of operating profit to cash flow from operating activities	Notes	52 weeks ended 29 June  2025 £m	Year ended     30 June  2024 £m
Operating profit		285.5	174.7
Depreciation of property, plant and equipment		9.0	7.5
Profit on disposal of property, plant and equipment		(0.5)	-
Depreciation of right-of-use assets		18.4	15.2
Leased asset remeasurements		1.2	-
Amortisation of intangible assets		14.5	10.4
Impairment/(reversal of impairment) of inventories		12.4	(2.2)
Share-based payments expense		19.2	19.9
Defined benefit pension scheme administration costs		0.5	-
Imputed interest on long-term payables1	5	(51.1)	(40.2)
Imputed interest on lease arrangements1		(2.5)	(1.8)
Amortisation of facility fees	5	(1.2)	(1.6)
Total non-cash items		19.9	7.2
Increase in inventories		(265.5)	(38.0)
Increase in receivables		(1.1)	(19.6)
Increase/(decrease) in payables1		89.3	(87.2)
Increase in provisions		40.5	132.8
Total movements in working capital and provisions		(136.8)	(12.0)
Interest paid		(9.9)	(10.1)
Tax paid		(129.4)	(63.6)
Net cash inflow from operating activities		29.3	96.2

¹ The working capital movements in land payables, provisions and leases include non-cash movements due to imputed interest. Imputed interest is included within non-cash items in the statement above.

1. Basis of preparation

Cautionary statement

The Chairman's Statement and Chief Executive's Statement commentary contained in this Annual Results Announcement, including the principal risks and uncertainties (note 22), have been prepared by the Directors in good faith, based on the information available to them up to the time of their approval of this report, solely for the Company's shareholders as a body, so as to assist them in assessing the Group's strategies and the potential for those strategies to succeed. Accordingly, they should not be relied on by any other party or for any other purpose and the Company hereby disclaims any liability to any such other party, or for reliance on such information for any such other purpose.

This Annual Results Announcement has been prepared in respect of the Group as a whole and accordingly matters identified as being significant or material are so identified in the context of Barratt Redrow plc and its subsidiary undertakings in the consolidation taken as a whole.

Basis of preparation

Whilst the financial information included in this Annual Results Announcement has been prepared in accordance with UK adopted IAS in conformity with the requirements of the Companies Act 2006 and in accordance with UK adopted IFRS, this announcement does not itself contain sufficient information to comply with those standards. Full Financial Statements that comply with those standards are included in the 2025 Annual Report and Accounts, which will be made available at www.barrattredrow.co.uk during October 2025.

The financial information set out in this announcement does not constitute the Company's statutory accounts, within the meaning of section 430 of the Companies Act 2006, for the 52 week period ended 29 June 2025 or the year ended 30 June 2024, but is derived from those accounts.

The accounting policies adopted are consistent with those followed in the preparation of the Group's 2025 Annual Report and Accounts which have not changed from those adopted in the Group's 2024 Annual Report and Accounts except as disclosed below in the 'Application of accounting standards' section of this note.

This Annual Results Announcement has been prepared under the historical cost convention as modified by the revaluation of share-based payments. Following the acquisition of Redrow plc (now Redrow Limited) on 21 August 2024 by Barratt Developments PLC (now Barratt Redrow plc), Barratt Developments PLC was renamed Barratt Redrow plc and the use of 26/52 week accounting reference dates was adopted. Throughout these Financial Statements the current period is the 52 weeks ended 29 June 2025 and the comparative period is the year ended 30 June 2024.

Statutory accounts for the year ended 30 June 2024 have been delivered to the Registrar of Companies and those for the 52 week period ended 29 June 2025 will be delivered following the Company's annual general meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

The auditors have consented to the publication of this Annual Results Announcement as required by Listing Rule 6.5.1 having completed their procedures under APB bulletin 2008/2.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of Financial Statements in conformity with UK adopted IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the Directors' best knowledge of the amounts, actual results may ultimately differ from those estimates. The Directors have made no individual critical accounting judgements that have had a significant impact upon the Financial Statements, apart from those involving estimations.

The most significant estimates made by the Directors in these Financial Statements, which are the key sources of estimation uncertainty that may have a significant risk of causing a material difference to the carrying value of assets and liabilities within the next financial period, are:

Legacy property provisions

Building safety

On 13 March 2023, the Group signed the Self-Remediation Terms and Contract, codifying the commitments previously made under the Building Safety Pledge to undertake, or to fund, remediation or mitigation works on external wall systems (EWS) on all buildings of 11 metres or above in England and Wales that it has developed or refurbished in the 30 years preceding the date of the Building Safety Pledge, and to reimburse the Government's Building Safety Fund wherever it has contributed to such activities. The Group has provided for the cost of fulfilling this commitment, as well as assisting with remedial work identified at a limited number of other legacy properties where it has a legal liability to do so, where relevant build issues have been identified, or where it is considered probable that such build issues exist.

As a result of the acquisition of Redrow plc on 21 August 2024, the Group's obligations under the Self-Remediation Terms and Contract now include the relevant buildings developed or refurbished by the Redrow group of companies. The remediation of these buildings is now being managed with the benefit of the experience of the combined Group and the fair value of the obligations at the acquisition date included within provisions. In accordance with IFRS 3, as described in note 9, this includes the fair value of possible remediation works on properties for which there is currently no confirmation of works being required and which are deemed to be low risk, and consequently, in accordance with IAS 37, no liability was previously recognised in the financial statements of Redrow plc or its subsidiaries.

At the Redrow acquisition date, 27 buildings with a height of over 11 metres were under active review by Redrow under the Self-Remediation Contract. Responsibility for these buildings was assumed by the Group on acquisition. Following contact from building owners regarding potential issues, a net further 18 buildings with a height of over 11 metres were added to the Group scope of works in the period, including one in the Redrow portfolio. 

	30 June 2024	Responsibility assumed through the acquisition of Redrow	Identified for review	Review confirmed no remediation, or remediation completed	29 June 2025
Under review:
Buildings above 18 metres	146	17	10	(15)	158
Buildings between 11 and 18 metres	116	10	9	(15)	120
Total buildings	262	27	19	(30)	278
Developments	92	12	11	(13)	102

At 29 June 2025, of the 278 buildings in the portfolio under review in the combined Group, 192 were at tender or site mobilisation or were in the process of being remediated (30 June 2024: 262 buildings, of which 137 were at tender or site mobilisation or were in the process of being remediated).

As part of the ongoing works to remediate building safety issues, it has been identified that additional work on four buildings at one development in our Southern region is required to improve the fire protection of the internal structure. Additional costs have also been recognised for the remediation of newly identified issues at a large development in London that was already part of our building safety provision. An additional £93.1m has been provided at the reporting date for these two developments, based on the current estimate of remediation cost.

At 30 June 2024, the Group held £14.8m in relation to completed developments and £18.8m in relation to reinforced concrete frames in respect of the above two developments. All work at these developments is being undertaken under a single remediation programme and therefore all related amounts have been reclassified to be shown together in the building safety provision.

A further £15.8m has been provided in respect of minor cost increases across the rest of the portfolio.

The Group continues to review all of its current and legacy buildings where it has used EWS or cladding solutions, assessing the action required in line with the latest updates to Government guidance, as it applies, to multi-storey and multi-occupied residential buildings. All our buildings, including those incorporating EWS or cladding solutions, were signed off by approved inspectors as compliant with the relevant Building Regulations at the time of completion.

Management expect the majority of the works to be completed within four years. Estimated future costs are discounted to their present value using the yield for a UK gilt with maturity approximating the duration of the remediation programme. This is a complex area requiring significant estimates with respect to the estimates for the number of buildings affected, the individual remediation requirements of each building and the costs associated with that remediation (see also note 17).

The investigation of the works required at some of the buildings is at an early stage and work at others is ongoing. Therefore, it is possible that the scope of works required could change. If government legislation and regulation further evolve, or if the estimated timing of work is affected by building owner engagement or contractor availability, these estimates could change.

In relation to the Group's obligations under the Scottish Safer Buildings Accord, signed on 31 May 2023, and the Housing (Cladding Remediation) (Scotland) Act, passed on 21 June 2024, the external wall provision is recorded on the basis that the standard of remediation required in Scotland is consistent with England and Wales. This will be determined when the final contract with the Scottish Government is signed (see note 17).

The estimates are based on key assumptions that will be updated as work and time progress. The sensitivity of the provision held at the balance sheet date to the following possible movements in key assumptions is as follows:

		Increase/(decrease) in provisions at 29 June 2025 £m
Sensitivity
5% increase in estimated cost		44.3
5% increase in the number of buildings		46.3
100 bps increase in discount rate		(11.9)

Margin recognition - In order to determine the profit that the Group is able to recognise on its developments in a specific period, the Group allocates site-wide development costs between homes built in the current period and in future periods. The Group also has to estimate costs to complete on such developments and make estimates relating to future sales price margins on those developments and homes, considering expected future sales price and build cost inflation. In making these assessments there is, inherently, a degree of uncertainty.

The Group's site valuation process determines the forecast profit margin for each site. The valuation process acts as a method of allocating land costs and construction work in progress costs of a development to each individual plot and drives the recognition of costs in the Income Statement as each plot is sold. Any changes in the forecast profit margin of a site from changes in sales prices or costs to complete are recognised across all homes sold in both the current period and future periods. This ensures that the forecast site margin achieved on each individual home is equal for all current year completions and future plots across the development.

Management has performed a sensitivity analysis to assess the impact of a change in estimated future costs or forecast selling prices for developments on which sales were recognised in the period. A 2% increase in the forecast costs to complete would increase site-cost allocation in cost of sales in 2025 by £31.7m, resulting in a reduction in gross margin of 60 bps. A 3% decrease in forecast private sales prices would increase site-cost allocation in cost of sales in 2025 by £57.0m, resulting in a reduction in gross margin of 110 bps.

Going concern

In determining the appropriate basis of preparation of the Financial Statements, the Directors are required to consider whether the Group can continue to meet its liabilities and other obligations for the foreseeable future.

The Group's business activities, together with factors that the Directors consider are likely to affect its development, financial performance and financial position, are set out in the Chief Executive's statement. The material financial and operational risks and uncertainties that may affect the Group's performance and their mitigation are outlined in note 22 to these Financial Statements, and financial risks including liquidity, market, credit and capital risks are outlined in note 19.

At 29 June 2025, the Group held cash of £969.6m and total loans and borrowings of £200.0m, consisting of £200.0m Sterling USPP notes maturing in August 2027. These balances, set against prepaid facility fees, comprise the Group's net cash of £772.6m, presented in note 12.

Should further funding be required, the Group has a committed £700m revolving credit facility (RCF), subject to compliance with certain financial covenants, that matures in November 2029.

As such, in consideration of its net current assets of £7.3bn, the Directors are satisfied that the Group has sufficient liquidity to meet its current liabilities and working capital requirements.

The Group's financial forecasts reflect the outcomes that the Directors consider most likely, based on the information available at the date of signing these Financial Statements.

To assess the Group's resilience to more adverse outcomes, its forecast performance was sensitised to reflect a series of scenarios based on the Group's principal risks and the downside prospects for the UK economy and housing market presented in the latest available external economic forecasts.

This exercise included a reasonable worst-case scenario in which the Group's principal risks manifest in aggregate to a severe but plausible level. This assumed that average selling prices fall by 10%, sales volumes fall by 15% and construction costs increase by 2% above the base forecasts, in addition to the implementation of a building safety levy and increased carbon pricing costs.

The effects were modelled over the 12 months from the date of signing of these Financial Statements, alongside reasonable mitigation that the Group would expect to undertake in such circumstances, primarily a reduction in investment in inventories in line with the fall in expected sales and a 50% reduction in uncommitted land spend. In all scenarios, including the reasonable worst case, the Group is able to comply with its financial covenants, operate within its current facilities and meet its liabilities as they fall due.

Furthermore, reverse stress testing was performed to determine the market conditions in which the Group would cease to be able to operate under its current facilities within 12 months from the date of signing these Financial Statements. Based on past experience and current economic forecasts, the Directors consider the possibility of this outcome to be remote and have identified mitigation that would be adopted in such circumstances.

Accordingly, the Directors consider there to be no material uncertainties that may cast significant doubt on the Group's ability to continue to operate as a going concern. They have formed a judgement that, at the time of approving the Financial Statements, there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of signing of these Financial Statements. For this reason, they continue to adopt the going concern basis in the preparation of these Financial Statements.

Application of accounting standards

During the 52 weeks ended 29 June 2025, the Group has applied accounting policies and methods of computation consistent with those applied in the prior year. In addition, accounting policies have been applied in respect of:

·	The defined benefit scheme (acquired through the acquisition of Redrow plc ); and
·	land options - costs incurred in respect of options to purchase land are held within inventories at the lower of cost and net realisable value and are reviewed for impairment at each reporting date.

During the period, the Group has adopted the following new and revised standards and interpretations which have had no material impact on the Financial Statements:

·	Amendments to IAS 1: 'Classification of Liabilities';
·	Amendments to IAS 1: 'Non-current Liabilities with Covenants'
·	Amendments to IFRS 16: 'Lease Liability in a Sale and Leaseback Arrangement'; and
·	Amendments to IAS 7 and IFRS 7: 'Supplier Finance Arrangements'.

 

2. Revenue

An analysis of the Group's continuing revenue is as follows:

	Residential completions1			Revenue
	52 weeks ended 29 June  2025 Number	Year ended      30 June  2024 Number	52 weeks ended 29 June  2025 £m	Year ended      30 June  2024 £m
Revenue from private residential sales	12,251	9,618	4,729.2	3,369.7
Revenue from sales to the private rental sector	878	1,048	267.8	298.8
Revenue from affordable residential sales	2,898	2,802	513.3	463.1
Revenue from commercial sales	n/a	n/a	27.1	21.9
Revenue from planning promotion agreements	n/a	n/a	38.6	12.9
Sundry revenue	n/a	n/a	2.3	1.8
	16,027	13,468	5,578.3	4,168.2

¹ Residential completions exclude JV completions of 538 homes (2024: 536) in which the Group has an interest.

 

3. Operating profit

Operating profit includes all of the revenue and costs derived from the Group's operating businesses. Operating profit  excludes finance costs, finance income, the Group's share of profits or losses from JVs and tax.

The Group's principal activity is housebuilding. On 21 August 2024, the Group acquired Redrow plc, another housebuilding business. Since the acquisition, significant progress has been made in integrating the Redrow business into the Group's existing housebuilding operation. Financial information is reported to the Board as the chief operating decision maker on an integrated basis and decisions regarding resource allocation are made with reference to the housebuilding business as a whole. Accordingly, housebuilding is considered to be one operating segment.

None of the other business activities undertaken by the Group are presented separately to the Board, either individually or in aggregate. These other business activities in aggregate account for less than 10% of the Group's revenue, profit and total assets. Therefore, no segmental information is presented in these Financial Statements.

 

4. Adjusted items

		52 weeks ended       29 June  2025 £m	Year ended      30 June  2024 £m
Costs incurred in respect of legacy properties		106.2	180.0
Amounts in respect of legacy properties recovered from third parties		(15.8)	(0.5)
Adjusted items in cost of sales		90.4	179.5
Costs incurred in respect of the acquisition of Redrow plc		36.2	22.4
Reorganisation and restructuring costs		56.8	-
CMA commitment		29.0	-
Legal fees in respect of recovery above		2.2	-
Adjusted items in administrative expenses		124.2	22.4
Costs incurred in respect of legacy properties by joint ventures		-	12.6
Total adjusted items		214.6	214.5

Costs incurred in respect of legacy properties

The adjusted costs in the period, associated with Group legacy properties, comprise additions to provisions of £108.9m, revaluation of £2.7m and reimbursements of costs from suppliers recognised directly in the Income Statement of £15.8m. Further details of movements in provisions are provided in note 13.

Adjusted items in administrative expenses

On 21 August 2024, the Group acquired 100% of the share capital of Redrow plc (Redrow) in an all share transaction. Direct costs incurred in respect of the acquisition are presented as adjusted items.

Following the acquisition of Redrow, the Directors continue to review the Group's operations in order to most effectively integrate the Redrow business and to best position the combined Group to realise the synergies of the combination and achieve its objectives. As a result, the Group has undertaken certain reorganisation and restructuring activities, for which the aggregate direct costs are expected to be material. The incremental costs incurred are presented as adjusted items.

CMA commitment

In July 2025 we announced that we, along with six other UK housebuilders, had proposed voluntary binding commitments as part of the CMA's ongoing investigation into the housebuilding sector. The commitment will see us pay c. £29m towards future affordable housing provision and we have recognised this payment as an adjusting item in FY25. Our proposed voluntary commitment did not constitute an admission of any wrongdoing and we welcome the CMA's consultation on these commitments and will continue to work constructively with the CMA to enable the investigation to be closed in a timely manner.

 

5. Net finance costs

Recognised in the Consolidated Income Statement:

		52 weeks ended       29 June  2025 £m	Year ended      30 June  2024 £m
Finance income
Finance income on short-term bank deposits		(31.9)	(44.9)
Finance income related to employee benefits		(0.2)	-
Other interest receivable		(3.5)	(2.3)
		(35.6)	(47.2)
Finance costs
Interest on loans and borrowings		9.2	9.4
Imputed interest on long-term payables		51.1	40.2
Finance charge on leased assets		2.5	1.8
Amortisation of facility fees		1.2	1.6
Other interest payable		0.6	0.7
		64.6	53.7
Net finance costs		29.0	6.5

The weighted average interest rates (excluding fees) paid in the period were as follows:

		Group
	52 weeks ended       29 June  2025 %	Year ended      30 June  2024 %
USPP notes	2.8	2.8

 

6. Tax

All profits of the Group are subject to UK tax.

The current period tax charge has been provided for, by the Group, at a standard effective rate, comprising corporation tax and RPDT, of 29.0% (2024: 29.0%). The closing deferred tax assets and liabilities have been provided in these Financial Statements at a rate of 25.0% to 29.0%, depending on whether RPDT is applicable to the relevant taxable profit (2024: 25.0% to 29.0%), on the temporary differences giving rise to these assets and liabilities.

Tax recognised in the Income Statement

The tax expense represents the sum of the tax currently payable and deferred tax.

Analysis of the tax charge for the period

	52 weeks ended             29 June  2025 £m	Year ended      30 June  2024 £m
Current tax:
UK corporation tax on profits for the period	105.4	54.8
RPDT for the period	14.4	6.1
Adjustment in respect of previous years	(3.2)	3.2
	116.6	64.1
Deferred tax:
Origination and reversal of temporary differences	(32.3)	(6.1)
Adjustment in respect of previous years	3.0	(1.6)
	(29.3)	(7.7)
Tax charge for the period	87.3	56.4

Factors affecting the tax charge for the period

The tax rate assessed for the period is higher (2024: higher) than the standard effective rate of tax in the UK of 29.0% (inclusive of corporation tax and RPDT) (2024: 29.0%). The differences are explained below:

	52 weeks ended             29 June  2025 £m	Year ended      30 June  2024 £m
Profit before tax	273.7	170.5
Profit before tax multiplied by the standard rate of tax of 29.0% (inclusive of corporation tax and RPDT) (2024: 29.0%)	79.4	49.4
Effects of:
Other items including non-deductible expenses and non-taxable income	11.6	8.0
Additional tax relief for land remediation costs	(3.5)	(2.6)
Adjustment in respect of previous years	(0.2)	1.6
Tax charge for the period	87.3	56.4

Tax recognised in equity

In addition to the amount charged to the Consolidated Income Statement, a net current and deferred tax credit of £0.8m (2024: £0.8m credit) was recognised directly in equity.

 

7. Earnings per share

The earnings per share from continuing operations were as follows:

	52 weeks ended             29 June  2025 pence	Year ended      30 June  2024 pence
Basic earnings per share	13.6	11.8
Diluted earnings per share	13.3	11.6
Adjusted basic earnings per share	25.5	28.3
Adjusted diluted earnings per share	25.0	27.8

 

Basic earnings per share is calculated by dividing the profit for the period attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares in issue during the period, excluding those held by the EBT that do not attract dividend equivalents and which are treated as cancelled.

Diluted earnings per share is calculated by dividing the profit for the period attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares in issue adjusted to assume conversion of all potentially dilutive share options from the start of the period.

Adjusted basic and adjusted diluted earnings per share exclude the impact of adjusted items and any associated net tax amounts.

	52 weeks ended             29 June  2025	Year ended      30 June  2024
Profit attributable to ordinary shareholders of the Company (£m)	186.4	114.1
Adjusted items (£m)	214.6	214.5
Tax on adjusted items (£m)	(51.7)	(54.4)
Adjusted profit attributable to ordinary shareholders of the Company (£m)	349.3	274.2
Weighted average number of shares in issue (million)	1,379.3	974.6
Weighted average number of shares in EBT on which dividends were waived (million)	(7.8)	(5.8)
Weighted average number of shares for basic earnings per share (million)	1,371.5	968.8
Weighted average number of shares in issue (million)	1,379.3	974.6
Adjustment to assume conversion of all potentially dilutive shares (million)	18.9	12.5
Weighted average number of shares for diluted earnings per share (million)	1,398.2	987.1

¹ During the period the Company issued 465,663,607 shares as consideration for the acquisition of Redrow plc and 10,840,048 shares to the EBT to satisfy Redrow share option schemes. The majority of these shares were issued on 23 August 2024. Following approval on 11 February 2025 the Company purchased 11,270,807 of its own shares in the market, of which 11,162,743 had been cancelled at the balance sheet date (see note 15).

 

8. Dividends

	52 weeks ended             29 June  2025 £m	Year ended      30 June  2024 £m
Amounts recognised as distributions to equity shareholders in the period:
Final dividend for the year ended 30 June 2024 of 11.8p (2023: 23.5p) per share	170.5	228.0
Interim dividend for the 52 weeks ended 29 June 2025 of 5.5p (year ended 30 June 2024: 4.4p) per share	78.8	42.6
Total dividends distributed to equity shareholders in the period	249.3	270.6

 

	52 weeks ended             29 June  2025 £m	Year ended      30 June  2024 £m
Proposed final dividend for the 52 weeks ended 29 June 2025 of 12.1p (year ended 30 June 2024: 11.8p) per share1	172.6	170.2

¹ The cost of the proposed dividend is calculated based upon the number of shares ranking for dividend at the balance sheet date.

The proposed dividend is payable to all shareholders on the register of members on 10 October 2025 (other than shares held by the Barratt and Redrow EBTs on which dividends have been waived).

 

9. Business combinations

Acquisition of Redrow plc

On 21 August 2024, the Group acquired 100% of the share capital of Redrow plc in an all share transaction. In accordance with standard practice, the Competition and Markets Authority (CMA) issued an Initial Enforcement Order (IEO) requiring the Barratt and Redrow businesses to continue to operate independently until the CMA had formally accepted the undertakings proposed by the parties in response to its limited concerns. The CMA accepted these undertakings and lifted the IEO on 4 October 2024. Management reviewed the terms of the IEO and concluded that under its terms, the Group Directors were able to direct the relevant activities of Redrow plc to influence future returns. The date on which the Group obtained control of Redrow plc was therefore deemed to be 21 August 2024.

Redrow plc was the parent company of a group of companies involved in UK housebuilding. The acquisition has been accounted for using the acquisition method of accounting. The acquisition brings together two housebuilding businesses with complementary cultures to create a strong brand portfolio that will offer customers a wider range of house types and accelerate delivery. It also allows the realisation of significant cost synergies from procurement savings and a rationalisation of divisional and central costs. Details of the purchase consideration, net assets acquired and the resulting goodwill are as follows:

	£m
Fair value of shares issued	2,528.6
Share issue costs	0.3
Total purchase consideration	2,528.9

On 23 August 2024, the Company issued 476,309,120 new ordinary shares of 10 pence nominal value to shareholders of Redrow plc. Of these, 10,840,048 were issued in replacement of shares in Redrow plc held by the Redrow Employee Benefit Trust, which are excluded from the purchase consideration. Costs of £0.3m directly attributable to the share issue have been recognised in equity. The issue of a further 256,258 new ordinary shares of 10 pence nominal value (of which 194,535 had been issued at 29 June 2025) was accrued as purchase consideration in respect of share-based payment awards that vested on the change of control of Redrow plc. The total fair value of the shares issued and accrued in respect of the purchase consideration was £2,528.6m which was determined using the closing Barratt Developments PLC share price of 543 pence at 21 August 2024. The non-statutory premium of £2,482.0m arising on the shares issued and accrued as consideration for the acquisition has been credited to the merger reserve in accordance with Section 612 of the Companies Act 2006. The closing Barratt Developments PLC share price on 6 February 2024, the last business day prior to the announcement of the offer, was 530 pence.

The assets and liabilities acquired have been recognised at their acquisition date fair values. The carrying values below are presented after reclassification to align with Group accounting policy.

Net assets and liabilities recognised as a result of the acquisition	Carrying value in the consolidated financial records of Redrow plc at 21 August 2024 £m	Adjustment to fair value £m	Fair value at 21 August 2024 £m
Intangible assets	-	235.9	235.9
Tangible fixed assets	18.8	2.0	20.8
Right-of-use assets	8.9	-	8.9
Pension scheme surplus	5.2	-	5.2
Inventories	2,678.1	131.2	2,809.3
Trade and other receivables	45.9	(2.2)	43.7
Cash	194.3	-	194.3
Trade and other payables	(634.8)	3.8	(631.0)
Provisions	(247.9)	(161.7)	(409.6)
Lease liabilities	(9.2)	-	(9.2)
Corporation tax asset	1.7	31.9	33.6
Deferred tax liability	(1.2)	(93.7)	(94.9)
Net identifiable assets acquired	2,059.8	147.2	2,207.0
Goodwill (note 10)	-	321.9	321.9
Net assets acquired	2,059.8	469.1	2,528.9

The intangible assets acquired comprise the Redrow brand (£231.8m), valued using a relief-from-royalty method assuming an indefinite useful life, and customer contracts (£4.1m), valued using a multi-period excess earnings method and amortised as those contracts are completed. In concluding that a brand has an indefinite useful life, management consider the Group's current and future expected strategy. The continued use of the Barratt Homes, David Wilson Homes and Redrow brands, including the offer of multiple brands on single sites is a key pillar in the Group's strategy to drive future growth.

A fair value uplift of £131.2m has been recognised on inventories which is expected to substantially unwind within two years. In determining the fair value of inventories, management has made judgements in determining the price that would be received or paid by a market participant at the date of acquisition. This includes the profit that would be expected to be earned from land interests and partially completed developments, which has been determined with reference to market conditions and industry margins. The fair value adjustment comprises a £71.3m increase in respect of option agreements to purchase land, a £120.4m increase in respect of live developments, and a £60.5m decrease in respect of land on which residential development has not yet started.

The Group holds a provision for the remediation of reinforced concrete frames on developments designed by two engineering firms whose work has previously been found to be defective. One of these firms have also been involved in the design of certain developments constructed by the Redrow group and initial investigations have determined that it is probable that remediation will be required to buildings on four of these developments. Based on the current best estimate of the remediation cost, an adjustment of £26.6m was made to the fair value of inventories in respect of works required on live developments, which is included in the fair value adjustment to inventories described above, and a provision of £105.2m has been recognised as an assumed liability at acquisition in respect of legacy properties (note 13).

Under IFRS 3, any possible present obligation arising from past events that is assumed in a business combination, for which the fair value can be reliably measured, must be recognised as a liability, regardless of whether an outflow of economic benefits is probable. As a result, the Group has recognised liabilities in respect of possible remediation works relating to external wall systems on properties constructed by the Redrow group that have not previously been recognised in the financial statements of Redrow plc or its subsidiaries. These amounts reflect the possibility of issues being identified on properties for which there is currently no confirmation of works being required and are deemed to be low risk. Being of the same nature and subject to similar uncertainties over the amount and timing of future outflows, the liabilities are presented within legacy property provisions (note 13).

Included within provisions at the acquisition date is £114.1m in respect of costs in relation to completed developments. The majority of such liabilities were presented in the financial statements of Redrow plc within trade and other payables but are presented as provisions here to align with the Group's accounting policy.

The gross contractual amounts receivable for the trade and other receivables acquired were £22.7m and the best estimate at the acquisition date of the contractual cash flows not expected to be collected was £5.7m.

Goodwill represents the value of intangible assets that do not qualify for separate recognition under accounting standards and is attributable to the anticipated profitability of the individual sites acquired, the complementary geographic fit and the anticipated operating synergies from the combination.

Subsequent to the acquisition, 2,778,450 share options held by Redrow employees under the Redrow plc Save As You Earn share option scheme (Redrow SAYE) were converted to options over shares in Barratt Redrow plc. These schemes are accounted for as remuneration for post‑acquisition services provided to the Group.

The acquisition was achieved through a share-for-share exchange with no cash consideration payable to the former shareholders of Redrow plc and no cash received for the share issue. The Group's cash inflow in respect of the acquisition is as follows:

	52 weeks ended             29 June  2025 £m
Investing activities:
Cash balances acquired	194.3
Financing activities:
Share issue costs	(0.3)
Net inflow of cash	194.0

Included within trade and other payables at the acquisition date was an accrual for £18.9m of costs incurred in respect of the acquisition by Redrow plc prior to completion. These costs were subsequently paid and are included within the net cash inflow from operating activities in the Group Cash Flow Statement, but not included in the Group Income Statement.

Revenue of £1,538.0m, an adjusted profit before tax of £106.0m, and a profit before tax of £96.0m are recognised in the Consolidated Income Statement in respect of Redrow.

If the acquisition had occurred on 1 July 2024, consolidated pro-forma revenue, adjusted profit before tax, and profit before tax for the period ended 29 June 2025, based on Redrow's results for the period before tax, adjusted for intercompany transactions and after alignment with Group accounting policies, would have been £5,679.4m, £460.0m and £245.4m respectively.

In the current period, acquisition costs of £36.2m are included in administrative expenses in the Consolidated Income Statement and in operating cash flows in the Group Cash Flow Statement. In addition, acquisition costs of £22.4m were incurred and included in administrative costs in the Consolidated Income Statement in the year ended 30 June 2024.

Following the acquisition, the Directors continue to review the Group's operations to most effectively integrate the Redrow business and to best position the combined Group to realise the synergies of the combination and achieve its objectives. As a result, the Group has undertaken certain reorganisation and restructuring activities, for which the aggregate direct costs are material. The incremental costs incurred are presented as adjusted items (see note 4).

 

10. Goodwill and other intangible assets

Goodwill

		Group
Goodwill	29 June 2025 £m	30 June 2024 £m
Cost
At 1 July	877.4	877.4
On acquisitions in the period	321.9	-
At end of period	1,199.3	877.4
Accumulated impairment losses
At beginning and end of period	24.5	24.5
Carrying amount
At balance sheet date	1,174.8	852.9

During the period, the Group acquired all of the share capital of Redrow plc (note 9). Goodwill of £321.9m arising on the acquisition has been capitalised and allocated to the Group's housebuilding business.

The Group's goodwill relating to the acquisition of Wilson Bowden Limited in 2007 has a carrying value of £792.2m and goodwill relating to the 2019 acquisition of Oregon Timber Frame Limited has a carrying value of £13.7m, both relating to the housebuilding business.

In addition, the Group has goodwill of £47.0m relating to the Group's land promotion business, following the 2022 acquisition of Gladman Developments Limited.

Other intangible assets

The Group has capitalised, as intangible assets, brands and customer contracts that have been acquired, and purchased manufacturing rights.

								Group
Other intangible assets		Brands	Customer contracts		Purchased manufacturing rights			Total
	29 June 2025  £m	30 June 2024 £m	29 June 2025  £m	30 June 2024 £m	29 June 2025  £m	30 June 2024 £m	29 June 2025  £m	30 June 2024 £m
Cost
At beginning of period	118.7	118.7	98.9	98.9	-	-	217.6	217.6
Purchased in the period	-	-	-	-	2.5	-	2.5	-
Acquired in the period through the acquisition of Redrow plc (note 9)	231.8	-	4.1	-	-	-	235.9	-
At end of period	350.5	118.7	103.0	98.9	2.5	-	456.0	217.6
Amortisation
At start of period	9.2	8.7	23.9	14.0	-	-	33.1	22.7
Amortisation in the period	0.5	0.5	14.0	9.9	-	-	14.5	10.4
At end of period	9.7	9.2	37.9	23.9	-	-	47.6	33.1
Carrying amount
At balance sheet date	340.8	109.5	65.1	75.0	2.5	-	408.4	184.5

The Group does not amortise the David Wilson Homes housebuilding brand acquired with Wilson Bowden valued at £100.0m, or the Redrow brand valued at £231.8m as the Directors consider that these brands have an indefinite useful economic life due to the Group intending to hold and support the brands for an indefinite period, and there are no factors that would prevent it from doing so.

In 2022, the Group acquired brands valued at £10.8m and customer contracts valued at £98.9m with Gladman Developments Limited. The customer contracts are amortised on a straight-line basis over the expected useful life of the contracts of ten years; the brands acquired are amortised on a straight-line basis over a 20-year period.

Manufacturing rights were purchased for £2.5m during the period.

Impairment of goodwill and indefinite life brands

The Group conducts an annual impairment review of goodwill and its indefinite life brands, David Wilson Homes and Redrow.

Goodwill and indefinite life brands allocated to housebuilding

An impairment review was performed at 30 April 2025 by comparing the value in use of the housebuilding business to the carrying value of its tangible and indefinite life intangible assets and allocated goodwill.

The value in use was determined by discounting the expected future cash flows of the housebuilding business. The cash flows until the end of June 2028, being the three year period aligned to the Group's budgeting cycle, were determined using the Group's approved detailed business plan and the cash flows for FY29 and FY30 were derived from the Group's growth plan to deliver 22,000 total home completions in the medium term. The cash flows for subsequent 52 week periods were extrapolated in perpetuity using an estimated growth rate of 2.1% (2024: 2.1%) in line with the historical long-term growth rate of the UK economy.

The key assumptions for the value in use calculation for the housebuilding business were:

·	expected changes in selling prices for completed houses and the related impact on operating margin: these are determined on a site-by-site basis in the Group's approved business plan dependent upon local market conditions and product type;
·	sales volumes: these are determined on a site-by-site basis in the Group's approved business plan dependent upon local market conditions, land availability and planning permissions;
·	expected changes in site costs to complete: these are determined on a site-by-site basis in the Group's approved business plan dependent upon the expected costs of completing all aspects of each individual development; and
·	discount rate: this is a pre-tax rate reflecting the average capital structure of similar market participants, risks appropriate to the housebuilding business and current market assessments of the time value of money. A rate of 12.2% (2024: 14.2%) is considered by the Directors to be the appropriate pre-tax discount rate.

 

The result of the value in use exercise concluded that the recoverable value of goodwill and intangible assets allocated to the housebuilding business exceeded its carrying value by £1,422.3m (2024: £819.7m) and there has been no impairment.

Goodwill allocated to land promotion

An impairment review was performed at 29 June 2025 by comparing the value in use of the land promotion business to the carrying value of its tangible and intangible assets and allocated goodwill.

The value in use was determined by discounting the expected future cash flows of the land promotion business. The operating cycle for the land promotion business extends over a longer period than the housebuilding business, with land sales completing at the point in an economic cycle that generates the most profit. Inventories held at the current date may generate cash inflows in the medium to long term and, as a result, management's forecasts extend up to ten years from the reporting date. It is therefore appropriate to consider projections over a longer period in the value in use calculation. Cash flows until the end of June 2034 were determined using the business' approved forecast, dependent upon expected site permissions and best estimates for targeted site sales, anticipated spend and overhead inflation. Due to the sensitivity of cash flows of the land promotion business to the economic cycle, the cash flows for 52 week periods subsequent to 2034 were based on average sales receipts from the final 52 week periods of the forecast, adjusted for expected increases in cost, extrapolated in perpetuity using an estimated growth rate of 2.1% (2024: 2.1%) in line with the historical long-term growth rate of the UK economy.

The key assumptions for the value in use calculation were the expected sales values achieved under land promotion agreements, based on current market values for similar land, costs required to fulfil customer contracts, and the discount rate of 12.2% (2024: 13.2%), being a pre-tax rate reflecting the risks appropriate to the land promotion business and current market assessments of the time value of money.

The result of the value in use exercise concluded that the recoverable amount of goodwill allocated to the land promotion business exceeded its carrying value by £108.0m (2024: £52.6m) and there has been no impairment. An increase in the discount rate of 430 bps would reduce the headroom of the recoverable amount over the carrying value to £nil.

 

11. Inventories

	Group
	29 June 2025 £m	30 June 2024 £m
Land held for development	5,104.9	3,233.6
Construction work in progress	2,979.0	1,829.4
Promotion agreements work in progress	112.4	111.5
Part-exchange properties and other inventories	144.3	103.7
	8,340.6	5,278.2

Nature and carrying value of inventories

The Group's principal activity is housebuilding. The majority of sales are not contracted prior to the development commencing. Accordingly, the Group has in its Balance Sheet at 29 June 2025 current assets that are not covered by a forward sale. The Group's internal controls are designed to identify any developments where the balance sheet value of land and work in progress is more than the projected lower of cost or net realisable value. During the year, the Group has conducted six-monthly reviews of the net realisable value of specific sites identified as at high risk of impairment, based upon a number of criteria including sites with low profit margins and sites with no forecast completions. Where the estimated net realisable value of a site was less than its current carrying value, the Group has impaired the land and work in progress value.

During the period, due to performance variations, changes in assumptions and changes to viability on individual sites, there were gross impairment charges of £20.6m (2024: £9.2m) and gross impairment reversals of £8.2m (2024: £11.4m), resulting in a net impairment charge of £12.4m (2024: £2.2m reversal) included within operating profit.

The key estimates in these reviews are those used to estimate the realisable value of a site, which is determined by forecast sales rates, expected sales prices and estimated costs to complete.

The Directors consider all inventories to be current in nature, as they are expected to be realised within the Group's normal operational although the Group's operational cycle. There is no fixed time period for the normal operating cycle as it differs for each site, however the cycle typically spans from the purchase of land to the sale of the final plot.

Land held for development includes £113.4m of costs incurred in respect of options to purchase land (2024: £11.7m).  During the period, £72.5m of costs in respect of options to purchase land were recognised at their acquisition-date fair value as a result of the acquisition of Redrow plc.

Expensed inventories

The value of inventories expensed in the 52 week period ended 29 June 2025 and included in cost of sales was £4,426.3m (2024: £3,241.6m).

 

12. Net cash

Net cash is defined as cash and cash equivalents, bank overdrafts, interest-bearing borrowings and prepaid fees. Net cash at the balance sheet date is shown below:

Group
		29 June       2025 £m	30 June       2024 £m
Cash and cash equivalents1		969.6	1,065.3
Drawn debt
Borrowings:
Sterling US private placement notes		(200.0)	(200.0)
Total borrowings, being total drawn debt		(200.0)	(200.0)
Prepaid fees		3.0	3.2
Net cash		772.6	868.5
Total borrowings at the balance sheet date are analysed as:
Non-current borrowings		(200.0)	(200.0)
Total borrowings, being total drawn debt		(200.0)	(200.0)

¹ The Group had cash equivalents at 29 June 2025 of £459.8m (2024: £690.9m) which are included within cash and cash equivalents above.

 

Movement in net cash is analysed as follows:

	Group
	52 weeks ended 29 June 2025 £m	Year ended 30 June 2024 £m
Cash acquired on acquisition of Redrow	194.3	-
Other movements in cash and cash equivalents in the period	(290.0)	(203.8)
Net decrease in cash and cash equivalents	(95.7)	(203.8)
Repayment/(drawdown) of borrowings:
Loans and borrowings repayments	-	3.4
Other movements in borrowings:
Movement in prepaid fees	(0.2)	(0.5)
Movement in net cash in the period	(95.9)	(200.9)
Opening net cash	868.5	1,069.4
Closing net cash	772.6	868.5

 

Cash and cash equivalents

Cash and cash equivalents are held at floating interest rates linked to the UK bank rate and money market rates as applicable. Cash and cash equivalents comprise cash held by the Group and short-term bank deposits with an original maturity of three months or less from inception and are subject to an insignificant risk of changes in value. In accordance with the Group's policy, all deposits are held with entities with credit ratings of A+ of higher.

Cash, cash equivalents and bank overdrafts, as presented in the Cash Flow Statement, are analysed as follows:

	Group
	29 June       2025 £m	30 June      2024 £m
Cash and cash equivalents	969.6	1,065.3
Bank overdrafts including loans and borrowings	-	-
Cash, cash equivalents and bank overdrafts	969.6	1,065.3

Borrowings and facilities

All debt facilities at 29 June 2025 are unsecured.

The principal features of the Group's committed debt facilities at 29 June 2025 and 30 June 2024 were as follows:

		Amount drawn
	Facility	29 June 2025	30 June 2024	Maturity
Committed facilities:
RCF	£700.0m	-	-	16 November 2029
Fixed rate Sterling USPP notes	£200.0m	£200.0m	£200.0m	22 August 2027

The Group has various bank overdraft facilities and uncommitted borrowing facilities that are subject to floating interest rates linked to SONIA and money market rates as applicable. However, these were not utilised in the current period or prior year.

Weighted average interest rates are disclosed in note 5.

 

13. Provisions

					Group
	Costs in relation to completed developments £m	Legacy properties - building safety £m	Legacy properties - reinforced concrete frames £m	Other provisions    £m	Total £m
At 1 July 2024	190.9	628.1	102.2	-	921.2
Amounts reclassified	(14.8)	33.6	(18.8)	-	-
Fair value of provisions assumed in the acquisition of Redrow	114.1	184.3	105.2	6.0	409.6
Net additions to provisions in the period	22.7	108.9	-	0.1	131.7
Sites reclassified to completed developments	48.1	-	-	-	48.1
Revaluation	-	(1.9)	(0.8)	-	(2.7)
Imputed interest	-	26.9	6.7	-	33.6
Utilisation in the period	(69.6)	(93.5)	(7.1)	-	(170.2)
At 29 June 2025	291.4	886.4	187.4	6.1	1,371.3

 

	Group
	29 June          2025 £m	30 June      2024  £m
Current	783.2	378.0
Non-current	588.1	543.2
	1,371.3	921.2

Costs in relation to completed developments

Following the legal completion and handover to customers of all units on a site, the Group may retain obligations which are not settled for a number of years. These include costs in relation to the adoption of roads or public open space by local authorities, other contractual obligations to third parties and, in certain cases, the costs of remedial works where defects have been identified.

Whilst a proportion of this cost will not be realised within 12 months, the Group has an obligation to complete the works immediately should it be requested to do so. The balance in total is therefore considered to be current in nature. All outstanding issues on completed developments are resolved as soon as is practicable.

Legacy property provisions

Further information on the building safety provision is provided in note 1.

Reinforced concrete frames

The Group holds a provision for the remediation of reinforced concrete frames on developments designed by two engineering firms whose work has previously been found to be defective.

The engineering firms involved in the above developments have been determined to also have been involved in the design of certain developments constructed by the Redrow group. Initial investigations have identified similar issues to those seen at the legacy Barratt buildings at four Redrow developments. Based on a high-level assessment of the probable cost of remediation, a provision of £105.2m has been included within the liabilities assumed through the acquisition of Redrow.

For all developments where additional amounts have been provided at the reporting date, further analysis must be undertaken to determine both the exact locations within the developments which will need to be remediated and the nature of the work to be performed in each case, which may result in revisions to the estimated costs and time frame of delivery.

Management expect the majority of the works to completed within three years. Management has made estimates as to the future costs, the extent of the remedial works required and the costs of providing alternative accommodation to any residents affected by the remedial works. These Financial Statements have been prepared based on currently available information, including known costs and quotations where possible. However, the extent, cost and timing of remedial work may change as work progresses.

 

14. Share capital

Ordinary share capital

Allotted and issued ordinary shares	29 June        2025 £m	30 June     2024 £m
10p each fully paid: 1,439,933,173 (2024: 974,592,261) ordinary shares	144.0	97.4

 

Options over the Company's shares granted during the period	52 weeks ended 29 June        2025 Number	Year ended   30 June         2024 Number
LTPP	5,227,111	4,497,287
Sharesave	3,662,634	2,549,465
DBP	838,130	107,057
ELTIP	868,110	1,972,714
	10,595,985	9,126,523
Allotment/cancellation of shares during the period	52 weeks ended 29 June        2025 Number	Year ended   30 June         2024 Number
At 1 July	974,592,261	974,584,613
Buyback and cancellation of shares in the period	(11,162,743)	-
Issued to Redrow plc shareholders as consideration for the acquisition of Redrow	465,663,607	-
Issued to the EBT to satisfy legacy Redrow share option schemes	10,840,048	-
Issued to satisfy exercises under Sharesave schemes	-	7,648
At balance sheet date	1,439,933,173	974,592,261

 

15. Capital redemption and merger reserves

During the period the Company purchased 11,162,743 of its own shares in the market which were cancelled during the period. The nominal value of these shares was transferred to the capital redemption reserve. A further 108,064 shares were purchased in the period and cancelled after the balance sheet date.

	52 weeks ended 29 June        2025 £m	Year ended   30 June         2024 £m
At 1 July	4.8	4.8
Amounts transferred in respect of own shares purchased and cancelled	1.1	-
At balance sheet date	5.9	4.8

The merger reserve comprises the non-statutory premium arising on shares issued as consideration for the acquisition of subsidiaries where merger relief under Section 612 of the Companies Act 2006 applies.

During the current 52 week period, on 21 August 2024, the Group acquired 100% of the share capital of Redrow plc in an all share transaction. The non-statutory premium of £2,482.0m arising on the shares issued and accrued as consideration for the acquisition has been credited to the merger reserve (see note 9).

 

16. Own shares reserve

The own shares reserve represents the cost of shares in Barratt Redrow plc (formerly Barratt Developments PLC) purchased in the market or issued by the Company and held by the Barratt EBT and the Redrow EBT on behalf of the Company in order to satisfy options and awards that have been granted by the Company or were granted by Redrow plc prior to its acquisition by the Company on 21 August 2024. In the current year the own shares reserve also holds 108,064 shares purchased by the Company as part of the share buyback programme which were cancelled on 30 June 2025.

	Number of shares		Cost of shares		Market value (at 473.9p (2024: 472.2p) per share)
	29 June 2025  Number	30 June 2024 Number	29 June 2025  £m	30 June 2024 £m	29 June 2025    £m	30 June 2024 £m
EBT shares	13,716,260	8,063,747	26.2	36.9	65.0	38.1
Shares purchased by the Company awaiting cancellation	108,064	-	0.5	-	0.5	-
Total own shares	13,824,324	8,063,747	26.7	36.9	65.5	38.1

The Barratt EBT and the Redrow EBT have agreed to waive all or any future right to dividend payments on shares held within the Barratt EBT and the Redrow EBT and these shares do not count in the calculation of the weighted average number of shares used to calculate EPS until such time as they are vested to the relevant employee.

The Barratt EBT purchased no shares in the market (2024: 5,000,000 shares). The Barratt EBT disposed of 2,335,538 shares which were used to satisfy the vesting of the ELTIP, the DBP and the LTPP schemes (2024: 1,351,813 shares used to satisfy the vesting of the ELTIP and the LTPP schemes). A further 70,838 shares were used in the period in settlement of exercises under Sharesave schemes (2024: 583,042).

During the period the Company issued 10,840,048 shares to the Redrow EBT in exchange for the shares held in Redrow plc. The Redrow EBT disposed of 2,430,661 shares which were used to satisfy the early vesting of the Redrow LTIP and DBP schemes on acquisition. A further 321,920 shares were used in the period in settlement of exercises under Redrow SAYE schemes and 28,578 shares were used in settlement of early exercises under the LTPP Redrow Transition Award.

 

17. Contingent liabilities

Contingent liabilities related to subsidiaries

Certain subsidiary undertakings have commitments for the purchase of trading stock entered into in the normal course of business.

In the normal course of business, the Group has given counter-indemnities in respect of performance bonds and financial guarantees. At 29 June 2025 the bonds and guarantees amount to £626.8m (2024: £419.9m) and, at the date of approval of these Financial Statements, the possibility of cash outflow is immaterial and no provision is required.

Building safety

As disclosed in note 1, on 13 March 2023, the Group signed the Self-Remediation Terms and Contract, codifying the commitments previously made under the Building Safety Pledge. The Group is currently undertaking a review of all of its current and legacy buildings where it has used EWS or cladding solutions. Approved inspectors signed off all of our buildings, including the EWS or cladding used, as compliant with the relevant building regulations at the time of completion.

At 29 June 2025, the Group held provisions of £886.4m (2024: £628.1m) in relation to building safety, based on management's best estimate of the cost and timing of remediation of in-scope buildings. It is possible that as remediation work proceeds, additional remedial works will be required which do not relate to EWS or cladding solutions. Such works may not have been identified from the reviews and physical inspections undertaken to date and may only be identified when detailed remediation work is in progress. Therefore, the nature, timing and extent of any such costs were unknown at the balance sheet date.

It is also possible that the number of buildings requiring remediation may increase. This could occur because buildings which hold valid EWS1 certificates are found to require remediation or because investigatory works identify remediation not previously identified.

In addition, we recognise that the retrospective review of building materials and fire safety matters continues to evolve. These Financial Statements have been prepared based on currently available information and regulatory guidance. However, these estimates may be updated if government legislation and regulation further evolve.

On 31 May 2023 the Group signed the Scottish Safer Buildings Accord, committing to resolve life-critical fire safety defects in multi-occupancy residential domestic or part-domestic buildings, over 11 metres in Scotland, built by us as a developer in the period of 30 years to 1 June 2022. This Accord is not legally binding, but we are committed to working in good faith with the Scottish Government to agree a legal form contract. The Group has undertaken preliminary cost assessments at multi-occupancy buildings over 11 metres in Scotland at which fire safety defects have been identified. The Group's EWS provision at 29 June 2025 reflects the outcome of these assessments, based on the assumption that the standard of remediation required in Scotland is consistent with that in England and Wales. The Housing (Cladding Remediation) (Scotland) Act 2024, which became law on 21 June 2024, has provided a framework on which the remediation programme in Scotland can be based but requires secondary legislation and further contractual agreement with developers to determine the details. The estimated cost may vary depending on the final form of the developer remediation contract agreed with the Scottish Government.

In November 2024, an investigation by the Institution of Fire Engineers concluded that one of its members had failed to maintain professional standards and terminated his membership. The firm at which the individual worked has provided fire risk assessments on a number of buildings which the Group has developed. Impact assessments for affected buildings are ongoing and there has been nothing to suggest that a change to the provision is required at the reporting date.

During the prior year, warranty providers received claims under warranties for building safety matters on three developments historically delivered by the Group. Further investigation is required to determine whether the nature and extent of any remediation work are incremental to that already expected and we expect this process to be completed during FY26.

Reinforced concrete frames

As disclosed in note 13, the Group is undertaking remediation at developments designed by certain engineering firms or associated companies. The Financial Statements have been prepared based on currently available information; however, the detailed review is ongoing and the extent and cost of any remedial work may change as this work progresses.

We are actively seeking to recover costs from third parties in respect of building safety and reinforced concrete frames; however, there is no certainty regarding the extent of any financial recovery.

Contingent liabilities related to JVs

The Group has given counter-indemnities in respect of performance bonds and financial guarantees to its JVs totalling £11.9m at 29 June 2025 (2024: £5.0m).

The Group has also given a number of performance guarantees in respect of the obligations of its JVs, requiring the Group to complete development agreement contractual obligations in the event that the JVs do not perform as required under the terms of the related contracts. At 29 June 2025, the probability of any loss to the Group resulting from these guarantees is considered to be remote.

Contingent liabilities related to legal claims

Provision is made for the Directors' best estimates of all known material legal claims and all legal actions in progress. The Group takes legal advice as to the likelihood of success of claims and actions and no provision is made (other than for legal costs) where the Directors consider, based on such advice, that claims or actions are unlikely to succeed, or a sufficiently reliable estimate of the potential obligations cannot be made.

 

18. Related party transactions

Directors of Barratt Developments PLC and remuneration of key personnel

The Board and certain members of senior management are related parties within the definition of IAS 24 (Revised): 'Related Party Disclosures' and the Board members are related parties within the definition of Chapter 11 of the UK Listing Rules. There is no difference between transactions with key personnel of the Company and transactions with key personnel of the Group.

Disclosures related to the remuneration of key personnel as defined in IAS 24 will be provided in note 5 of the 2025 Annual Report and Accounts.

There have been no related party transactions during the period that require disclosure under Section 4.2.8 (R) of the Disclosure and Transparency Rules.

Transactions between the Company and its subsidiaries

The Company has entered into transactions with its subsidiary undertakings in respect of funding and Group services which include management accounting and audit, sales and marketing, IT, company secretarial, architects and purchasing. Recharges are made to the subsidiaries based on their utilisation of these services. In addition, the Company has disposed of its investments in two of its subsidiaries (BDW Trading Limited and Redrow Limited) to another Group undertaking, Barratt Redrow Holdings Limited. Both disposals were non-cash transactions. The disposal of BDW Trading Limited was at its carrying value, resulting in nil gain/loss on disposal.

		Company
	52 weeks ended 29 June        2025 £m	Year ended   30 June         2024 £m
Transactions between the Company and its subsidiaries and a former JV during the period:
Charges in respect of management and other services provided to subsidiaries	160.2	158.0
Profit on disposal of investment in Redrow to another Group undertaking	63.4	-
Net interest received/(paid) by the Company on net loans to/(from) subsidiaries	3.8	(16.9)
Dividends received from subsidiary undertakings	8.0	516.0
Balances at period end:
Amounts due by the Company to subsidiary undertakings	(100.2)	(91.3)
Amounts due to the Company from subsidiary undertakings	5,713.5	245.1

 

The Company and its subsidiaries have entered into counter-indemnities in the normal course of business in respect of performance bonds.

Transactions between the Group and its JVs

The Group has entered into transactions with its JVs as follows:

		Group
	52 weeks ended 29 June        2025 £m	Year ended   30 June         2024 £m
Transactions between the Group and its JVs during the period:
Charges in respect of development management and other services provided to JVs	11.9	10.3
Net interest charges in respect of funding provided to JVs	2.7	2.1
Dividends received from JVs	6.1	7.1
Balances at period end:
Funding loans and interest due from JVs net of impairment	78.0	86.3
Other amounts due from JVs	29.2	27.8
Loans and other amounts due to JVs	(0.8)	(0.6)

In addition, one of the Group's subsidiaries, BDW Trading Limited, contracts with a number of the Group's JVs to provide construction services.

The Group's contingent liabilities relating to its JVs are disclosed in note 17.

 

19. Financial risk management

The Group's approach to risk management and the principal operational risks of the business are detailed in note 22.

The Group's operations and financing arrangements expose it to a variety of financial risks, of which the most material are: liquidity risk, the availability of funding at reasonable margins, credit risk and interest rates. There is a regular, detailed system for the reporting and forecasting of cash flows from operations to senior management including Executive Directors to ensure that liquidity risks are promptly identified and appropriate mitigating actions are taken by the Treasury department. These forecasts are further stress-tested at a Group level on a regular basis to ensure that adequate headroom within facilities and banking covenants is maintained. In addition, the Group has a risk management programme that seeks to limit the adverse effects of the other risks on its financial performance.

The Board approves treasury policies and certain day-to-day treasury activities have been delegated to a centralised Treasury Operating Committee, which in turn regularly reports to the Board. The Treasury department implements guidelines that are established by the Board and the Treasury Operating Committee.

Liquidity risk

Liquidity risk is the risk that the Group will be unable to meet its liabilities as they fall due. The Group actively maintains a mixture of long-term and medium-term committed facilities that are designed to ensure that the Group has sufficient available funds for operations.

The Group's borrowings are typically cyclical throughout the financial year and peak in April to May and October to November of each year, due to seasonal trends in income. Accordingly, the Group maintains sufficient facility headroom to cover these requirements. On a normal operating basis, the Group has a policy of maintaining a minimum headroom of £150.0m. The Group identifies and takes appropriate actions based on its regular, detailed system for the reporting and forecasting of cash flows from its operations. The Group's drawn debt, excluding fees, represented 22.2% (2024: 22.2%) of available committed facilities at 29 June 2025. In addition, the Group had £969.6m (2024: £1,065.3m) of cash and cash equivalents.

The Group was in compliance with its financial covenants at 29 June 2025. The Group's resilience to its principal risks has been modelled, together with possible mitigating actions, over a three-year period. At the date of approval of the Financial Statements, the Group's internal forecasts indicate that it will be able to operate within its current facilities and remain in compliance with these covenants for the foreseeable future, being at least 12 months from the date of signing these Financial Statements.

One of the Group's objectives is to minimise refinancing risk. The Group has a policy that the average maturity of its committed bank facilities and private placement notes is a minimum of two years with a target of two to three years. At 29 June 2025, the average maturity of the Group's committed facilities was 3.9 years (2024: 4.1 years).

The Group maintains certain committed floating rate facilities with banks to ensure sufficient liquidity for its operations. The undrawn committed facilities available to the Group, in respect of which all conditions precedent had been met, were as follows:

	Group
Expiry date	29 June 2025 £m	30 June 2024 £m
In more than two years but not more than five years	700.0	700.0

In addition, the Group had undrawn, uncommitted overdraft facilities available at 29 June 2025 of £39.5m (2024: £37.0m).

Market risk (price risk)

Interest rate risk

The Group has both interest-bearing assets and interest-bearing liabilities. Floating rate borrowings expose the Group to cash flow interest rate risk, and fixed rate borrowings expose the Group to fair value interest rate risk.

The Group has a conservative treasury risk management strategy and the Group's interest rates are set using fixed rate debt instruments.

Due to the level of the Group's interest cover ratio, and in accordance with the Group's policy to hedge a proportion of the forecast RCF drawings based on the Group's three-year plan, no interest rate hedges are currently required.

The exposure of the Group's financial liabilities to interest rate risk is as follows:

Group	Floating rate financial liabilities £m	Fixed rate financial liabilities £m	Non-interest bearing financial liabilities £m	Total £m
29 June 2025
Financial liability exposure to interest rate risk	-	200.0	1,714.4	1,914.4
30 June 2024
Financial liability exposure to interest rate risk	-	200.0	1,068.7	1,268.7

The Group retained a strong cash position throughout the year and, therefore, the Group did not draw on its RCF during the year and the use of other facilities was minimal. No interest was paid by the Group on floating rate borrowings in 2025 or 2024.

Sterling USPP notes of £200.0m were issued on 22 August 2017 with a fixed coupon of 2.77% and a ten-year maturity. These fixed rate notes expose the Group and Company to fair value interest rate risk.

Sensitivity analysis

In the 52 week period ended 29 June 2025, if UK interest rates had been 0.5% higher/lower (considered to be a reasonably possible change based on forecast Bank of England interest rates) and all other variables were held constant, the Group's pre-tax profit would increase/decrease by £2.6m, the Group's post-tax profit would increase/decrease by £1.9m and, as such, the Group's equity would increase/decrease by £1.9m.

Credit risk

In the majority of cases, the Group receives cash on legal completion for private sales and receives advance stage payments from registered providers for affordable housing. The Group has £969.6m (2024: £1,065.3m) on deposit or in current accounts with 13 (2024: 14) financial institutions. Other than this, neither the Group nor the Company has a significant concentration of credit risk, as their exposure is spread over a large number of counterparties and customers.

The Group manages credit risk through its credit policy. This limits its exposure to financial institutions with high credit ratings, as set by international credit rating agencies, and determines the maximum permissible exposure to any single counterparty.

The maximum exposure to any counterparty at 29 June 2025 was £214.8m (2024: £141.2m) of cash on deposit with a financial institution. The carrying amount of financial assets recorded in these Financial Statements, net of any allowance for losses, represents the Group's maximum exposure to credit risk.

Capital risk management (cash flow risk)

The Group's objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide returns for shareholders and meet its liabilities as they fall due while maintaining an appropriate capital structure.

The Group manages its share capital as equity, as set out in the Statement of Changes in Shareholders' Equity, and its bank borrowings (being overdrafts and bank loans) and its private placement notes as other financial liabilities. The Group is subject to the prevailing conditions of the UK economy and the quantum of the Group's earnings is dependent upon the level of UK house prices. UK house prices are determined by the UK economy and economic conditions, employment levels, interest rates, consumer confidence, mortgage availability and competitor pricing. The Group's approach to the management of the principal operational risks of the business is detailed in note 22.

Other methods by which the Group can manage its short-term and long-term capital structure include: adjusting the level of dividend payments to shareholders (assuming the Company is paying a dividend); issuing new share capital; arranging debt to meet liability payments; and selling assets to reduce debt.

 

20. Post balance sheet events

On 15 July 2025 the Company announced that it will implement a programme to repurchase ordinary shares up to a value of £100m in total, excluding expenses, to be completed no later than 30 June 2026.

As part of this programme, on 15 July 2025 the Company issued instructions to Barclays Bank PLC to purchase up to £50m of shares by no later than 31 December 2025. The purpose of this repurchase is to reduce the capital of the Company and the Company intends that the purchased shares will be cancelled.

 

21. Statutory accounts

The financial statements for the 52 weeks ended 29 June 2025 have been approved by the Directors and prepared in accordance with UK adopted IAS in conformity with the requirements of the Companies Act 2006 and UK adopted IFRS.

Barratt Redrow plc's 2025 Annual Report and Accounts will be made available to shareholders and published on its website www.barrattredrow.co.uk in October 2025. The financial information set out herein does not constitute the Company's statutory accounts for the 52 weeks ended 29 June 2025 (as defined in Sections 434 and 436 of the Companies Act 2006) but is derived from the 2025 Annual Report and Accounts and the accounts contained therein. Statutory accounts for 2025 will be delivered to the Registrar of Companies prior to the Company's Annual General Meeting, which will be held on 5 November 2025. The auditor has reported on these accounts; their report was unqualified and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.

The comparative figures for the year ended 30 June 2024 are not the Company's statutory accounts for the financial year but are derived from those accounts which have been reported on by the Company's auditor and which were delivered to the Registrar of Companies. The 2024 report of the auditor is unqualified and does not contain statements under Section 498 (2) or (3) of the Companies Act 2006.

Whilst the financial information included in this Annual Results Announcement has been prepared in accordance with UK adopted IFRS, this announcement does not itself contain sufficient information to comply with IFRS as adopted for use in the UK.

 

22. Risk management

In pursuing our strategic priorities to create value for stakeholders, we are exposed to risk in many areas of our business that continually evolve. Managing our risks responsibly is key to delivering our strategy in a way that creates value for our customers, shareholders, employees and partners.

Risk management controls are integrated into all levels of our business and across all operations, including at site, divisional, regional and Group level. The Board and Executive set a clear tone at the top regarding the importance of risk management controls and have set out clear responsibilities as part of our enterprise risk management policies.

Emerging risks are often characterised by a high degree of uncertainty and unpredictability, making them challenging to identify, assess and manage. They may not have historical data or precedents to guide us, and their impacts can be both far‑reaching and complex. Therefore, as part of our emerging risk and horizon scanning process we identify risks through a range of methods. Primarily, we conduct internal reviews of emerging risks through our risk workshops. During FY25, we also employed the support of third parties to challenge us on our understanding of the key risks and to provide expert analysis on areas we may not have considered through our internal processes. They also support on horizon scanning, enabling us to look ahead. Our emerging risk reviews are broken down into four discrete areas:

·	Strategic;
·	Regulatory;
·	Technology; and
·	Political and economic

During FY25 we have performed significant deep dives in collaboration with our external partners over UK infrastructure, specifically water scarcity and global political risks. The Executive and Board continue to review and access emerging risks on an ongoing basis as well as formally on a six‑monthly basis.

The risks which the Group faces could have a material adverse effect on the implementation of the Group's strategy, business, financial performance, shareholder value and returns, and reputation. Changes in the economic or trading environment can affect the likelihood and potential impact of risks, and may create new and emerging risks. Our principal risks are based on a three‑year horizon, which is aligned to our forecast and business planning.

Throughout FY25 the risk management process has been integrated across the wider Barratt Redrow Group and an aligned methodology adopted. As part of the Group's risk management framework all regions and key Group functions conducted risk workshops to review and identify their current risks and any potential emerging risks. These workshops presented a robust "bottom up" challenge to the risks identified at an Executive level as part of the Executive Risk Committee.

As well as quantitative measures, we also assess qualitative impacts such as reputational damage. The Group manages the impact of reputational damage as a consequence of not actively managing our key risks; therefore the principal risks and corresponding mitigation actions are carefully considered to minimise our risk of reputational damage.

We have seen an increase in both the frequency of geopolitical uncertainty and the speed that related risks materialise during FY25. We are aware that despite being a UK business with a high proportion of suppliers being UK based, we are not immune to the global political and economic environment and the effects it has on areas such as the UK market or our supply chain. We have engaged with third‑party risk experts to support us in considering how we may respond proportionately to ensure our business is resilient. In addition to increasing the risk levels we have merged our political risk with our economic risk due to the direct relationship between these two risks.

We are positive on the outlook for land and planning permissions due to the positive actions taken by the Government. Although reforms are in the early stages, we feel the likelihood of the risk materialising and having a material impact has reduced.

We welcome the Government's ambitious commitment to build 1.5 million homes, which supports our plan to expand our volumes. We recognise that increased volumes will put pressure on the labour market, and therefore we have increased the velocity of the attracting and retaining high‑calibre employees risk so that we ensure we can meet the demands of a growing market.

We have amended our broader information technology risk to be more specific to cybersecurity risk and increased the risk levels. Given the current climate and cyber attacks, this risk is an evolving risk, and the impacts on data, operations and financial transactions if there is a breach, and the implications for organisations, are increasing. Therefore, we recognise this and are committed to ensuring we keep up to date with mitigating actions.

We have reduced our residual risk rating for high rise and complex structures. As a Group we have enhanced and implement a number of processes, controls and mitigations to prevent the risk of current and future builds being subjected to the costs and remediation works that the house building industry has faced over high rise structures.

The Board has completed its assessment of the Group's principal and emerging risks, including those that could threaten its business model, future performance, solvency or liquidity.

The current risk profile is within our tolerance range as the Group is willing to accept a moderate level of operational risk to deliver financial returns.

There may be instances where these risks could have an adverse impact on the Group - either financially or operationally. To ensure the Group's business model remains resilient over the medium and long term, the Group has modelled these scenarios alongside achievable mitigating actions. The results are presented in the Viability Statement of the Group's Annual Report.

The Group has identified ten principal risks that it considers has a potential impact and/or likelihood that could significantly affect the Group's achievement of its strategic priorities and objectives.

Risk	A Political and economic environment	B Land and planning	C Government regulation	D Construction quality and innovation	E High-rise and complex structures
Risk level	High risk	High risk	High risk	Low risk	High risk
Change from previous year	Increase	Decrease	Increase	No change	Decrease
Risk appetite	Cautious	Cautious	Averse	Cautious	Averse
Risk velocity	Rapid	Moderate	Moderate	Moderate	Moderate
Risk description	Significant changes in the UK macroeconomic environment, major geopolitical events, or unpredictable unforeseen events may lead to falling demand, tightened mortgage availability, lack of funding for housing associations, reduced new build demand due to increased demand in the second hand property market, or reduced purchaser liquidity, especially in the first‑time buyer market. These events can cause rapid, severe and prolonged market disruptions beyond normal cyclical patterns. The resultant decline in affordability for both private and rental customers could lead to reduced sales volumes, diminished profitability, and in severe scenarios operational continuity, potentially compromising the Company's ability to deliver planned developments and meet strategic objectives.	Lack of developable land due to delays in planning approval, failure of a clear and consistent Government policy or insufficient consented land and strategic land options at appropriate cost and quality could affect our ability to grow sales volumes and/or meet our margin and site ROCE hurdle rates.	The housebuilding industry is subject to increasingly complex legislation and regulations, Government intervention and policy changes, for example building regulation, legal, NHQC, CMA and environmental regulation. Deviation from current regulations or failure to implement the required changes effectively within our processes could lead to financial penalties, damage to the Group's reputation or increased costs due to inefficient processes.	Failure to achieve excellence in housebuilding construction and product quality, through insufficient quality assurance programmes or inability to develop, evaluate and implement new and innovative construction methods or be a market leader with changes in technology advancement, could increase costs, expose the Group to future remediation liabilities, and result in poor product quality and reputational damage.	Failure to build high‑rise and complex structures in line with building regulations, or remediate existing legacy quality issues effectively, could result in remediation delays, reputational damage, increased cash outflow or future remediation liabilities.
Responsibility	Executive Committee	Land Committee	Executive Committee	Operations Committee	Operations Committee
Response/ mitigation	• Disciplined operating with appropriate capital structure and strong balance sheet. • Financial stress testing and impact analysis performed by Group finance. • Continual monitoring of macroeconomy, housing market data and key risk indicators by the Board and Executive Committee. • Business continuity and crisis management procedures in place to mitigate impact of significant one‑off global or local economic, and/or political events.	• Land acquisitions subject to formal appraisal and approval by Land Development Leadership Group (LDLG). • Strategic land investments subject to review by Gladman Developments. • Group/regional/ divisional review of owned/committed land vs strategic requirements. • Six‑monthly review by LDLG of strategic land portfolio. • Planning Performance Agreements with some select planning authorities. • Group Land and Planning Director reviews and approves planning appeals. • Regular meetings with key external stakeholders: Government, regulatory bodies, land agents, promoters and landowners.	• Policies and procedures covering relevant regulation/ legislation. • Compulsory employee compliance training. • Second line functions responsible for monitoring policies, training and controls. • Reporting of non‑compliance via whistleblowing hotline and bi‑annual Control Self‑Assessment. • Consultation, engagement and membership of relevant industry groups/liaison with Government agencies.	• Continuous review of design and materials, which are evaluated by technical experts including the NHBC, to ensure compliance with all regulations. • Monitoring and improving the environmental and sustainability impact of construction methods and materials. • Implementation of modern methods of construction by Design and Technical teams. • Detailed build programmes supported by robust quality assurance.	• Use of qualified engineers through an approved panel including structural engineer peer review process. • Third-party liability insurance. • Detailed build programmes supported by robust quality assurance and  a dedicated Building Safety Unit (BSU) which conducts remediation work. • BSU undertakes independent reviews and investigations of legacy buildings. • Assumptions on the estimated financial costs for remediation have been tested and challenged robustly.
Key risk indicators	Internal: Gross and operating margins, PBT, ROCE, EPS, TSR, sales rate per outlet. External: CPI, mortgage approvals, mortgage affordability, new housebuilding site starts.	Sales compared to detailed consents, number of active outlets achievable with current land bank, planning applications decided within budgeted timescales.	Compliance training completion level, compliance with Group policies.	Recommend score, total home completions, gross margin, operating margin, NHBC average RI and BRIs.	Independent Design Check (IDC) observations, NHBC average RI and BRIs.

 

 

 

 

Risk	F Supply chain resilience	G Safety, health and environment	H Attracting and retaining high-calibre employees	I Cyber security	J Redrow integration
Risk level	Medium risk	Medium risk	Medium risk	High risk	Medium risk
Change from previous year	No change	No change	No change	Increase	No change
Risk appetite	Cautious	Averse	Opportunistic	Cautious	Cautious
Risk velocity	Moderate	Rapid	Moderate	Rapid	Moderate
Risk description	Not adequately responding to shortages or increased costs of materials and skilled labour, or the failure of a key supplier in the current economic environment, may lead to increased costs and delays in construction.	Health, safety or environmental incidents or compliance breaches that fail to protect or adversely impact employees, subcontractors, customers and site visitors, undermining our responsibilities and objectives to be a safe and responsible business for all of our stakeholders, all of the time.	Increasing competition for skills may mean we are unable to recruit/retain the best people. Having sufficient skilled employees is critical to delivery of the Group's strategy of volume growth whilst maintaining excellence in our other strategic priorities.	A successful cyberattack breaching any of the Group's key systems, particularly those for financial and customer information or surveying and valuation, could restrict operations, cause financial losses, regulatory fines and reputational damage or disrupt progress in delivering strategic priorities.	Without careful management, there is a risk that our objectives to maximise shareholder value by successfully integrating the two businesses to generate revenue growth opportunities, and achieve operational and cost synergies, are not achieved.
Responsibility	Operations Committee	Safety, Health and Environment Operations Committee	Executive Committee	Executive Risk Committee	Executive Committee
Response/ Mitigation	• Centralised team procures materials from UK suppliers. • Multi‑supply (anti‑sole supply policy) for key labour and material supplies. • Contingency plans for key suppliers against supplier failure. • Formal tendering policies, procedures and controls. • New supplier due diligence checks on supplier appropriateness and product quality. • Build programme and material planning forecasting to ensure availability. • Supplier performance monitoring by Group Procurement.	• Clear roles and responsibilities for SHE. • SHE management system and SHE policies and procedures. • Employee and subcontractor relevant and appropriate SHE training. • Monthly operational Divisional Board reporting on SHE performance. • Second line team of SHE compliance managers provides support and guidance. • Board level SHE Committee and SHE Operations Committee review and monitor compliance.	• Remuneration benchmarking against competitors (within and outside the industry). • Comprehensive recruitment and onboarding processes. • Apprenticeships, graduate development, training academies and development programmes. • Group‑wide succession planning and personal development plans for all employees. • Company values relaunched and embedded. • Annual employee engagement survey and regular pulse surveys to measure satisfaction. • Monitoring employee turnover, absence statistics and independent feedback from exit interviews.	• 24x7 Security Operations Centre, tooling and log alerting. • Regular external review/penetration testing to reduce risk of successful cyberattack, and internal audits when we require specialists. • Group‑wide IT security policies. • Adoption and testing NIST control framework with Board oversight and maturity targets. • Cybersecurity insurance policy. • Mandatory IT security training for all employees annually.	• Identify, monitor and report via Integration Programme Board to Barratt Redrow Executive. • Internal Integration Management Office. • Support from integration partners PwC. • Formal project management via PMO with go/no‑go decisions.
Key risk indicators	Supplier audit risk scores, supplier concentration.	Safety, health and environment (SHE) audit compliance, reportable injuries and waste per tonne.	Employee engagement score, retention and attrition numbers, leavers rate for those employed <12 months, demographic and age.	Phishing click rate, mean time to resolve, number of incidents, number of events.	Synergies achieved, timeframes on progress.

 

 

Statement of Directors' Responsibilities

The responsibility statement set out below has been prepared in connection with (and will be set out in) the Annual Report and Accounts of the Company for the 52 weeks ended 29 June 2025, which will be available to shareholders and published on the Company's website www.barrattredrow.co.uk in October 2025.

Financial Statements and accounting records

The Directors are responsible for preparing the Annual Report and Accounts including the Directors' remuneration report and the Financial Statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors are required to prepare the Group Financial Statements in accordance with UK adopted IAS in conformity with the requirements of the Companies Act 2006 and UK adopted IFRS. The Directors have also elected to prepare the Parent Company Financial Statements in accordance with UK adopted IAS in conformity with the requirements of the Companies Act 2006.

Under company law, the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Company and the Group for that period.

IAS 1 requires that financial statements present fairly for each financial year the relevant entity's financial position, financial performance and cash flows. This requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the IASB's 'Framework for the preparation and presentation of financial statements'. In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable UK adopted IFRS. Directors are also required to:

·	properly select and apply accounting policies;
·	present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
·	provide additional disclosures when compliance with the specific requirements in IFRS are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
·	make an assessment of the Company's and the Group's (as the case may be) ability to continue as a going concern.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions on an individual and consolidated basis and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Fair, balanced and understandable

The Board considers, on the advice of the Audit Committee, that the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable, and provides the information necessary for shareholders to assess the Company's and the Group's position, performance, business model and strategy.

Directors' responsibility statement

The Directors confirm that, to the best of each person's knowledge:

a) the Group Financial Statements in the Annual Report and Accounts, which have been prepared in accordance with UK adopted IAS in conformity with the requirements of the Companies Act 2006 and UK adopted IFRS, and those of the Parent Company, which have been prepared in accordance with UK adopted IAS in conformity with the requirements of the Companies Act 2006, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and Group taken as a whole; and

b) the Annual Report and Accounts includes a fair review of the development and performance of the business and the position of the Company and the Group taken as a whole, together with a description of the principal risks and uncertainties they face.

By order of the Board

David Thomas                                      

Chief Executive                                   
16 September 2025

 

 

Definitions of alternative performance measures and reconciliation to IFRS (unaudited)

The Group uses a number of APMs that are not defined within IFRS. The Directors use these APMs, along with IFRS measures, to assess the operational performance of the Group as detailed in the Strategic report in the Annual Report and Accounts. These APMs may not be directly comparable with similarly titled measures reported by other companies and they are not intended to be a substitute for, or superior to, IFRS measures.

In this period, following the acquisition of Redrow plc, new APMs have been introduced to allow for the assessment of the performance of the combined Group by removing the impact of acquisition accounting adjustments that are not reflected in historical comparative information and will not be reflected in future performance after the associated assets and liabilities are realised.

Definitions of adjusted items are presented in note 4 and adjusted performance measures are reconciled to IFRS measures in the table following the Consolidated Income Statement and Statement of Comprehensive Income. Definitions and reconciliations of the other financial APMs used to IFRS measures are included below:

Adjusted gross profit before the impact of purchase price allocation (PPA) adjustments is defined as adjusted gross profit presented as if the assets and liabilities recognised as a result of the acquisition of Redrow plc had been initially measured at their carrying values in the underlying Redrow financial records, rather than at their fair values in accordance with IFRS 3. Fair value adjustments to inventories unwind through the Income Statement, affecting reported results as follows:

	52 weeks ended 29 June 2025 £m	Year ended       30 June 2024 £m
Adjusted gross profit per table following Consolidated Income Statement and Statement of Comprehensive Income	875.2	689.0
Impact on gross profit of the initial measurement of Redrow assets and liabilities at fair value at the acquisition date	95.1	-
Adjusted gross profit before the impact of PPA adjustments	970.3	689.0

 

Adjusted administrative expenses are defined as administrative expenses less total adjusted items in administrative expenses as defined in note 4:

	52 weeks ended 29 June 2025 £m	Year ended       30 June 2024 £m
Administrative expenses per Consolidated Income Statement and Statement of Comprehensive Income	503.2	336.9
Adjusted items in administrative expenses per note 4	(124.2)	(22.4)
Adjusted administrative expenses	379.0	314.5

 

Adjusted operating profit before the impact of PPA adjustments is defined as adjusted operating profit presented as if the assets and liabilities recognised as a result of the acquisition of Redrow plc had been initially measured at their carrying values in the underlying Redrow financial records, rather than at their fair values in accordance with IFRS 3:

	52 weeks ended 29 June 2025 £m	Year ended       30 June 2024 £m
Adjusted operating profit per table following Consolidated Income Statement and Statement of Comprehensive Income	500.1	376.6
Impact on operating profit of the initial measurement of Redrow assets and liabilities at fair value at the acquisition date	95.3	-
Adjusted operating profit before the impact of PPA adjustments	595.4	376.6

 

Adjusted profit before tax and the impact of PPA adjustments is defined as adjusted profit before tax presented as if the assets and liabilities recognised as a result of the acquisition of Redrow plc had been initially measured at their carrying values in the underlying Redrow financial records, rather than at their fair values in accordance with IFRS 3:

	52 weeks ended 29 June 2025 £m	Year ended       30 June 2024 £m
Adjusted profit before tax per table following Consolidated Income Statement and Statement of Comprehensive Income	488.3	385.0
Impact on profit before tax of the initial measurement of Redrow assets and liabilities at fair value at the acquisition date	103.3	-
Adjusted profit before tax and the impact of PPA adjustments	591.6	385.0

 

Adjusted profit before tax and the impact of integration is defined as adjusted profit before tax and the impact of PPA adjustments, less the impact of cost synergies and accounting policy alignment resulting from the integration of Redrow into the Group:

	52 weeks ended 29 June 2025 £m	Year ended       30 June 2024 £m
Adjusted profit before tax and the impact of PPA adjustments per table above	591.6	385.0
Impact of cost synergies and accounting policy alignment arising from the integration of Redrow into the Group	(1.8)	-
Adjusted profit before tax and the impact of integration	589.8	385.0

 

Gross margin is defined as gross profit divided by revenue:

	52 weeks ended 29 June 2025	Year ended       30 June 2024
Revenue per Consolidated Income Statement and Statement of Comprehensive Income (£m)	5,578.3	4,168.2
Gross profit per Consolidated Income Statement and Statement of Comprehensive Income (£m)	784.8	509.5
Gross margin	14.1%	12.2%

 

Adjusted gross margin is defined as adjusted gross profit divided by revenue:

	52 weeks ended 29 June 2025	Year ended       30 June 2024
Revenue per Consolidated Income Statement and Statement of Comprehensive Income (£m)	5,578.3	4,168.2
Adjusted gross profit per table following Consolidated Income Statement and Statement of Comprehensive Income (£m)	875.2	689.0
Adjusted gross margin	15.7%	16.5%

 

Adjusted gross margin before the impact of PPA adjustments is defined as adjusted gross profit before the impact of PPA adjustments divided by revenue:

	52 weeks ended 29 June 2025	Year ended       30 June 2024
Revenue per Consolidated Income Statement and Statement of Comprehensive Income (£m)	5,578.3	4,168.2
Adjusted gross profit before the impact of PPA adjustments per table above (£m)	970.3	689.0
Adjusted gross profit before the impact of PPA adjustments	17.4%	16.5%

Operating margin is defined as operating profit divided by revenue:

	52 weeks ended 29 June 2025	Year ended       30 June 2024
Revenue per Consolidated Income Statement and Statement of Comprehensive Income (£m)	5,578.3	4,168.2
Operating profit per Consolidated Income Statement and Statement of Comprehensive Income (£m)	285.5	174.7
Operating margin	5.1%	4.2%

 

Adjusted operating margin is defined as adjusted operating profit divided by revenue:

	52 weeks ended 29 June 2025	Year ended       30 June 2024
Revenue per Consolidated Income Statement and Statement of Comprehensive Income (£m)	5,578.3	4,168.2
Adjusted operating profit per table following Consolidated Income Statement and Statement of Comprehensive Income (£m)	500.1	376.6
Adjusted operating margin	9.0%	9.0%

 

Adjusted earnings for adjusted basic earnings per share and adjusted diluted earnings per share are calculated by excluding adjusted items and any associated net tax amounts from profit attributable to ordinary shareholders of the Company:

	52 weeks ended 29 June 2025 £m	Year ended       30 June 2024 £m
Profit attributable to ordinary shareholders of the Company per Consolidated Income Statement and Statement of Comprehensive Income	186.4	114.1
Net cost associated with legacy properties (including legal fees) per note 4	92.6	179.5
Costs incurred in respect of the acquisition of Redrow plc per note 4	36.2	22.4
Reorganisation and restructuring costs per note 4	56.8	-
CMA commitment per note 4	29.0	-
Cost associated with JV legacy properties per note 4	-	12.6
Tax impact of adjusted items	(51.7)	(54.4)
Adjusted earnings	349.3	274.2

 

Adjusted earnings before PPA adjustments is defined as adjusted earnings presented as if the assets and liabilities recognised as a result of the acquisition of Redrow plc had been initially measured at their carrying values in the underlying Redrow financial records, rather than at their fair values in accordance with IFRS 3:

	52 weeks ended 29 June 2025 £m	Year ended       30 June 2024 £m
Adjusted earnings per table above	349.3	274.2
Impact on profit before tax of the initial measurement of Redrow assets and liabilities at fair value at the acquisition date	103.3	-
Impact on tax charge of the initial measurement of Redrow assets and liabilities at fair value at the acquisition date	(30.0)	-
Adjusted earnings before PPA adjustments	422.6	274.2

 

Adjusted earnings before PPA adjustments per share is calculated by dividing adjusted earnings before PPA adjustments by the weighted average number of shares for basic earnings per share (note 7).

ROCE is calculated as earnings before amortisation, interest, tax, operating charges relating to the defined benefit scheme and operating adjusted items for the period, divided by average net assets adjusted for goodwill and intangibles, tax, cash, loans and borrowings, retirement benefit assets/obligations and provisions in relation to legacy properties:

	52 weeks ended 29 June 2025 £m	Year ended       30 June 2024 £m
Operating profit per Consolidated Income Statement and Statement of Comprehensive Income	285.5	174.7
Amortisation of intangible assets	14.5	10.4
Defined benefit scheme administrative expenses	0.5	-
Net cost associated with legacy properties (including legal fees) per note 4	92.6	179.5
Costs incurred in respect of the acquisition of Redrow plc per note 4	36.2	22.4
Reorganisation and restructuring costs per note 4	56.8	-
CMA commitment per note 4	29.0	-
Share of post-tax profit from JVs and associates per Consolidated Income Statement and Statement of Comprehensive Income	17.2	2.3
Adjusted cost related to JV legacy properties per note 4	-	12.6
Earnings before amortisation, interest, tax and adjusted items	532.3	401.9

 

	29 June 2025 £m	29 December 20241 £m	30 June  2024 £m	31 December 2023 £m	30 June 2023 £m
Group net assets per Consolidated Balance Sheet	7,873.0	7,879.3	5,439.1	5,439.6	5,596.4
Less (per Consolidated Balance Sheet):
Other intangible assets	(408.4)	(413.6)	(184.5)	(189.7)	(194.9)
Goodwill	(1,174.8)	(1,174.8)	(852.9)	(852.9)	(852.9)
Current tax (assets)	(79.5)	(85.9)	(31.8)	(27.3)	(31.1)
Deferred tax liabilities	109.8	128.9	45.0	50.4	53.5
Retirement benefit assets	(4.2)	(5.0)	-	-	-
Cash and cash equivalents	(969.6)	(655.3)	(1,065.3)	(949.9)	(1,269.1)
Loans and borrowings	200.0	200.0	200.0	200.3	203.4
Provisions in relation to legacy properties	1,073.8	991.8	730.3	646.0	612.3
Prepaid fees per note 12	(3.0)	(3.6)	(3.2)	(3.8)	(3.7)
Capital employed	6,617.1	6,861.8	4,276.7	4,312.7	4,113.9
Three point average capital employed	5,918.5		4,234.4

1 The balance sheet at 29 December 2024 has been retrospectively adjusted to reflect new information obtained about circumstances that existed at the date of acquisition of Redrow plc, as required under IFRS 3.

 

	52 weeks ended 29 June 2025	Year ended       30 June 2024
Earnings before amortisation, interest, tax and adjusted items per table above (£m)	532.3	401.9
Three point average capital employed per table above (£m)	5,918.5	4,234.4
ROCE	9.0%	9.5%

 

ROCE before the impact of PPA adjustments is calculated as ROCE (above) with both capital employed and earnings before amortisation, interest, tax and adjusted items presented as if the assets and liabilities recognised as a result of the acquisition of Redrow plc had been initially measured at their carrying values in the underlying Redrow financial records, rather than at their fair values in accordance with IFRS 3:

	52 weeks ended 29 June 2025 £m	Year ended       30 June 2024 £m
Earnings before amortisation, interest, tax and adjusted items per table above	532.3	401.9
Impact on earnings before amortisation, interest, tax and adjusted items of the initial measurement of Redrow assets and liabilities at fair value at the acquisition date	95.3	-
Earnings before amortisation, interest, tax, adjusted items and PPA adjustments	627.6	401.9

 

	29 June 2025 £m	29 December 2024 £m	30 June  2024 £m	31 December 2023 £m	30 June 2023 £m
Capital employed per ROCE table above	6,617.1	6,861.8	4,276.7	4,312.7	4,113.9
Impact on capital employed of the initial measurement of Redrow assets and liabilities at fair value at the acquisition date	(26.6)	(71.5)	-	-	-
Capital employed before PPA adjustments	6,590.5	6,790.3	4,276.7	4,312.7	4,113.9
Three point average capital employed before PPA adjustments	5,885.8		4,234.4

 

	52 weeks ended 29 June 2025	Year ended       30 June 2024
Earnings before amortisation, interest, tax, adjusted items and PPA adjustments per table above (£m)	627.6	401.9
Three point average capital employed before PPA adjustments per table above (£m)	5,885.8	4,234.4
ROCE before the impact of PPA adjustments	10.7%	9.5%

 

Underlying ROCE is calculated as ROCE before the impact of PPA adjustments with earnings before amortisation, interest, tax, adjusted items and PPA adjustments also amended to remove the impact of cost synergies and accounting policy alignment resulting from the integration of Redrow into the Group, and capital employed before PPA adjustments amended to remove land payables:

	52 weeks ended 29 June 2025 £m	Year ended       30 June 2024 £m
Earnings before amortisation, interest, tax, adjusted items and PPA adjustments per table above (£m)	532.3	401.9
Impact on operating profit tax of the initial measurement of Redrow assets and liabilities at fair value at the acquisition date	95.3	-
Earnings before amortisation, interest, tax, adjusted items and the impact of integration	627.6	401.9

 

 

 

 

 

	29 June 2025 £m	29 December 2024 £m	30 June  2024 £m	31 December 2023 £m	30 June  2023 £m
Capital employed before PPA adjustments per table above	6,590.5	6,790.3	4,276.7	4,312.7	4,113.9
Less land payables	809.4	594.6	472.8	367.2	506.7
Capital employed before PPA adjustments and land payables	7,399.9	7,384.9	4,749.5	4,679.9	4,620.6
Three point average capital employed before PPA adjustments and land payables	6,511.4		4,683.3

 

	52 weeks ended 29 June 2025	Year ended       30 June 2024
Earnings before amortisation, interest, tax, adjusted items and the impact of integration per table above (£m)	627.6	401.9
Three point average capital employed adjusted before PPA and land payables per table above (£m)	6,511.4	4,683.3
Underlying ROCE	9.6%	8.6%

 

Average work in progress is used for the purpose of determining the Executive Directors' annual bonus. It is calculated as the three point annual average of construction work in progress and part exchange properties held by the Group, excluding construction work in progress and part exchange properties held by operations acquired through business combinations in the period:

	29 June  2025 £m	29 December 2024 £m	30 June  2024 £m	31 December 2023 £m	30 June  2023 £m
Construction work in progress per note 11	2,979.0	3,257.2	1,829.4	2,003.3	1,907.1
Part exchange properties	131.7	109.0	103.7	100.3	93.3
Less construction work in progress held by operations acquired though business combinations in the period	(1,028.4)	(1,149.5)	-	-	-
Less part exchange properties held by operations acquired though business combinations in the period	-	-	-	-	-
Work in progress excluding operations acquired through business combinations	2,082.3	2,216.7	1,933.1	2,103.6	2,000.4
Average work in progress	2,077.4		2,012.4

 

Net cash is defined in note 12.

Total indebtedness is defined as net (cash)/debt and land payables:

	52 weeks ended 29 June 2025 £m	Year ended       30 June 2024 £m
Net cash per note 12	(772.6)	(868.5)
Land payables	809.4	472.8
Total indebtedness	36.8	(395.7)

TSR is a measure of the performance of the Group's share price over a period of three financial years. It combines share price appreciation and dividends paid to show the total return to the shareholders expressed as a percentage.

 

Tangible net asset value is defined as net assets less goodwill and other intangible assets.

Tangible net asset value per share is defined as tangible nest asset value divided by the total number of ordinary shares in issue at the reporting date.

	52 weeks ended 29 June 2025	Year ended       30 June 2024
Net assets per the Consolidated Balance Sheet (£m)	7,873.0	5,439.1
Less goodwill per the Consolidated Balance Sheet (£m)	(1,174.8)	(852.9)
Other intangible assets per the Consolidated Balance Sheet (£m)	(408.4)	(184.5)
Tangible net asset value (£m)	6,289.8	4,401.7
Number of ordinary shares in issue	1,439,933,173	974,592,261
Tangible net asset value per share (pence)	437	452

 

 

Aggregated comparative information (unaudited)

In addition to the above alternative performance measures, this results announcement includes aggregated performance measures for the year ended 30 June 2024. These measures are included to present comparative information to the Group's results for the current period to aid understanding of its relative performance. No adjustments are made to align accounting policy. The aggregated value comparatives have not been audited or reviewed by Barratt Redrow plc's auditors.

Aggregated profit measures for the year ended 30 June 2024 are defined as the results for the year ended 30 June 2024 plus the consolidated result for Redrow plc and its subsidiaries for the period from 24 August 2023 to 30 June 2024, being the period of equivalent length to the period for which the results of Redrow are consolidated into the Group's results for the 52 weeks ended 29 June 2025.

The consolidated Redrow results for the period from 24 August 2023 to 30 June 2024 have been extracted without adjustment from consolidated management information for the Redrow plc Group and prepared under the accounting policies for the Redrow Plc Group as disclosed in its annual report for the 52 weeks ended 30 June 2024.

	Year ended 30 June 2024 £m	Consolidated Redrow results 24 August 2023 to 30 June 2024 £m	Aggregated year ended 30 June 2024 £m	Adjusted items for the year ended 30 June 2024 £m	Adjusted items in consolidated Redrow results 24 August 2023 to 30 June 2024 £m	Aggregated adjusted year ended 30 June 2024 £m
Revenue	4,168.2	1,521.7	5,689.9	-	-	5,689.9
Gross profit	509.5	284.2	793.7	179.5	-	973.2
Administrative expenses	(336.9)	(89.9)	(426.8)	22.4	8.0	(396.4)
Operating profit	174.7	194.2	368.9	201.9	8.0	578.8
Profit before tax	170.5	192.7	363.2	214.5	8.0	585.7
Profit for the year	114.1	135.4	249.5	160.1	8.0	417.6

 

Aggregated (adjusted) gross margin is defined as aggregated (adjusted) gross profit divided by aggregated revenue and aggregated (adjusted) operating margin is defined as aggregated (adjusted) operating profit divided by aggregated revenue:

	Aggregated year ended 30 June 2024	Aggregated adjusted year ended 30 June 2024
Revenue (£m)	5,689.9	5,689.9
Gross profit (£m)	793.7	973.2
Gross margin	13.9%	17.1%
Operating profit (£m)	368.9	578.8
Operating margin	6.5%	10.2%

 

Aggregated net cash is defined as net cash plus consolidated net cash for Redrow plc and its subsidiaries. Aggregated land payables is defined as land payables plus consolidated land payables for Redrow plc and its subsidiaries. Aggregated total indebtedness is defined as aggregated net cash plus aggregated land payables.

The consolidated Redrow results for the period from 24 August 2023 to 30 June 2024 have been extracted without adjustment from consolidated management information for the Redrow plc group and prepared under the accounting policies for the Redrow plc group as disclosed in its annual report for the period ended 30 June 2024. The Net cash definition used for the consolidated Redrow group at 30 June 2023 is consistent with that disclosed in note 12.

	30 June 2024 £m	Consolidated Redrow at 30 June 2024 £m	Aggregated 30 June 2024 £m
Net cash	(868.5)	(296.0)	(1,164.5)
Land payables	472.8	161.0	633.8
Total indebtedness	(395.7)	(135.0)	(530.7)

Glossary

Active outlet	A site with at least one plot for sale
AGM	Annual General Meeting
APM	Alternative performance measure
ASP	Average selling price
the Barratt group	Barratt Developments PLC and its subsidiary undertakings prior to the acquisition of Redrow plc
Barratt Redrow	Barratt Redrow plc and its subsidiary undertakings
BRIs	Builders' Reportable Items
Building Regulations	The requirements relating to the erection and extension of buildings under UK Law
Capital Employed	Average net assets adjusted for goodwill and intangibles, tax, cash, loans and borrowings, prepaid fees, provisions in respect of legacy properties and derivative financial instruments
CDP	Charity that runs the global system for disclosure of environmental impacts for investors, companies, cities, states and regions
CMA	Competition and Markets Authority
the combined group	The new group of companies comprising the Barratt group as defined above, and Redrow plc and its subsidiaries
the Company	Barratt Redrow plc (formerly Barratt Developments PLC)
Cost synergies	Integrating the Barratt David Wilson and Redrow housebuilding operations results in cost reductions in three main areas: 1) Optimisation of the divisional office structure, reducing the number of divisions from 41 to 32; 2) Consolidation of central and support functions, including Board, senior management, compliance and third-party costs; and 3) Harmonisation of purchasing terms and additional rebates related to volume for the enlarged business, focused primarily on direct materials purchases
DBP	Deferred Bonus Plan
EBT	Employee Benefit Trust
ELTIP	Employee Long Term Incentive Plan
EPC	Energy Performance Certificate
EPS	Earnings per share
EWS	External Wall System
the Foundation	The Barratt Redrow Foundation (formerly The Barratt Developments PLC Charitable Foundation)
Future Homes Hub	Non-profit organisation through which the housebuilding sector and associated entities collaborate to deliver the Future Homes Delivery Plan, a roadmap to achieve sustainable homes, places and construction methods.
FY	For FY24 and earlier, refers to the financial year ended 30 June. For FY25, refers to the 52 weeks ended 29 June 2025
the Group	Barratt Redrow plc and its subsidiary undertakings
HBF	Home Builders Federation
IAS	International Accounting Standards
IASB	International Accounting Standards Board
IEO	Initial Enforcement Order
IFRS	International Financial Reporting Standards
IIR	Injury incidence rate
JVs	Joint ventures
KPI	Key performance indicator
LTPP	Long Term Performance Plan
MHCLG	Ministry of Housing, Communities and Local Government
Net tangible assets	Group net assets less other intangible assets and goodwill
NHBC	National House Building Council
Own New Rate Reducer	Customer scheme available on selected new build homes through which the housebuilder provides an incentive to a mortgage lender to secure the customer reduced mortgage interest rates for an initial fixed period.
PPA	Purchase price allocation - the accounting requirement under IFRS 3 to measure the asset acquired and liabilities assumed through a business combination at their acquisition-date fair values.
PRS	Private rented sector
RCF	Revolving Credit Facility
Revenue synergies	Incremental sales through the introduction of additional sales outlets to create multi-branded sites, and cost savings from reducing the time-based costs associated with each development
Revenue synergy sales outlets	Additional sales outlets planned to be opened on developments which were in the Barratt Redrow land portfolio at acquisition and through which revenue synergies will be achieved
RIs	Reportable items - defects found during NHBC inspections
RPDT	Residential Property Developer Tax
Sharesave	Savings-Related Share Option Scheme
SHE	Safety, Health and the Environment
SID	Senior Independent Director
Site ROCE	Site operating profit (site trading profit less allocated administrative overheads) divided by average investment in site land and work in progress
SONIA	Sterling Overnight Interest Average
Synergies target	The annual reduction in pre-tax costs targeted to be achieved by actions to unlock synergies, assuming no change in the underlying business capacity
Total home completions	Unless otherwise stated, total completions quoted include JVs
USPP	US Private Placement