Barratt Redrow Full Year 2026 Results

                                                                 

16 September 2026

BARRATT REDROW plc

 

52-week results for the period ended 28 June 2026

 

Solid performance; positioned to grow

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

"In a tough market, we have driven a strong operational and financial performance, delivering 17,667 homes, ahead of last year, and adjusted profit before tax in line with market expectations. Alongside the delivery of planned synergies, the successful integration of Redrow has created a more efficient and agile business. Looking ahead, whilst the wider economic backdrop remains uncertain, we are focused on maximising the strength of our three differentiated brands, maintaining our disciplined approach to costs and capital allocation, and continuing to deliver for customers, communities and, as evidenced by the capital return announced in July, we have a clear commitment to delivering for our shareholders.

 

"It has been an enormous privilege to lead Barratt Redrow over the past decade. I would like to thank our talented and dedicated colleagues across the business whose hard work, commitment and professionalism have helped build the successful and resilient company we are today. I wish them every success for the future."

 

Barratt Redrow plc1 £m (unless otherwise stated)	FY26	FY25 aggregatedA,1	Change (%)	FY25 reportedR,1
Total completions (homes)	17,667	16,826	5.0%	16,565
Revenue	6,055.0	5,679.4	6.6%	5,578.3
Adjusted gross profit before the impact of PPA adjustments	926.6	989.0	(6.3%)	970.3
Adjusted gross profit margin before the impact of PPA adjustments (%)	15.3%	17.4%	(210 bps)	17.4%
Statutory gross profit	820.5	803.5	2.1%	784.8
Statutory gross profit margin (%)	13.6	14.1	(50 bps)	14.1
Adjusted operating profit before the impact of PPA adjustments	598.1	594.4	0.6%	595.4
Adjusted operating profit margin before the impact of PPA adjustments (%)	9.9%	10.5%	(60 bps)	10.7%
Statutory operating profit	444.3	256.8		285.5
Statutory operating profit margin (%)	7.3%	4.5%		5.1%
Adjusted profit before tax and the impact of PPA adjustments	572.8	616.5	(7.1%)	617.2
Statutory profit before tax	363.5	245.3	48.2%	273.7
Adjusted earnings per share before the impact of PPA adjustments (pence)	28.5			32.1
Basic earnings per share (pence)	17.1			13.6
Net cash	772.8			772.6
ROCE (%) before the impact of PPA adjustments	9.2%			10.7%
ROCE (%)	8.4%			9.0%
Tangible assets per share (pence)	439.8			436.8
Share buyback	100.0			50.0

Financial highlights

·  Solid operational performance delivering 17,667 total home completions, 5.0% ahead of the 16,826 aggregated total home completions in FY25 and towards the top of our guidance range.

·    Adjusted operating profit, before the impact of PPA adjustments¹, at £598.1m, 0.6% ahead of the £594.4m adjusted aggregated operating profit in FY25 with a margin at 9.9% (FY25: 10.5%^A and 10.7%^R).

·   Adjusted profit before tax and the impact of PPA adjustments¹ at £572.8m, 7.1% below the £616.5m^A adjusted aggregated profit before tax in FY25 (FY25: £617.2m^R).

·   Statutory profit before tax of £363.5m (FY25: £245.3m^A and £273.7m^R) with a reduced impact from Redrow transaction and integration costs and purchase price allocation adjustments.

·     Strong balance sheet, with net cash² of £772.8m, after dividends of £242.2m and share buybacks of £100m.

·     Capital return of £400m for FY27 announced on 15 July 2026 including a share buyback of c. £386m, with 17.5m shares repurchased for a total cost of £53.5m as at 6 September 2026.

 

Operational highlights

·   Underlying net private reservation rate of 0.56, compared with 0.55^A for the aggregated performance in FY25. The overall net private reservation rate was 0.64, compared with 0.63, with a 0.08 contribution from PRS and other multi-unit sales (FY25: 0.08^A&R).

·   Redrow integration complete with £73m cost synergies delivered in FY26 and the Group's £100m cost synergy³ target confirmed. Strong progress on revenue synergy sites with 12 sites opened in FY26.

·    Continued industry leadership on quality, customer satisfaction, and sustainability:

-     122 NHBC Pride in the Job awards across the combined Group, maintaining our position ahead of any other housebuilder for 22 consecutive years;

-     Rated 5-Star in the HBF customer satisfaction survey for 17 consecutive years; and

-     Recognised by CDP as a Climate A List organisation for a fourth successive year.

 

Current trading and outlook

·    Our net private weekly reservation rate from 29 June 2026 to 6 September 2026 was 0.62 (FY26: 0.55), including a 0.09 contribution from private rental sector and other multi-unit sales (FY26: nil).

·    Forward sales⁴ at 6 September 2026 were 11,200 homes (7 September 2025: 10,593 homes) at a value of £3,337.6m (7 September 2025: £3,220.4m) with 7,121 homes either exchanged or contracted (7 September 2025: 7,167 homes).

·    FY27 guidance for total home completions adjusted to 17,500-17,900, from previous guidance at 17,700-18,200 (both including c. 600 JV completions), reflecting continued planning delays and a consequent reduction to expected sales outlet openings with c. 405 average sales outlets now anticipated, from c. 415 previously.

Notes:

(1)  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. During FY26, the Group reconsidered the presentation of legacy property provision finance charges. These are now presented as an adjusted item. This change has resulted in an increase in adjusted profit before tax in the period of £40.5m. The FY25 comparatives have been restated with an impact of £33.6m. These adjustments apply to reported and aggregated results. The Group continues to include APMs which allow for the assessment of the performance of the combined Group, before the impact of PPA adjustments. Profit measures presented as before PPA exclude the impact on the income statement of fair value adjustments recognised under IFRS 3 as a result of the acquisition of Redrow plc.

(2)  Net cash definition is included in Note 11.

(3)  Synergies: Integrating the Barratt David Wilson and Redrow housebuilding operations results in cost reductions in three main areas:

(a) Optimisation of the divisional office structure, reducing the number of divisions from 41 to 32;

(b) Consolidation of central and support functions, including Board, senior management, compliance and third-party costs; and

(c) Harmonisation of purchasing terms and additional rebates related to volume for the enlarged business, focused primarily on direct materials purchases.

(4)  Including JVs in which the Group has an interest.

(R) Reported denotes a Barratt Redrow plc reported metric based on the reported performance of Barratt Redrow plc in the comparable reporting period, with metrics for the 52 weeks to 29 June 2025 including the final assessment of the fair values of assets and liabilities recognised through the acquisition of Redrow.

(A) Aggregated denotes an aggregated metric based on the reported performance of Barratt Redrow plc in the comparable reporting period from 1 July 2024 to 29 June 2025 including the performance of the legacy Redrow plc group ("Redrow Group") from 1 July 2024 to 21 August 2024, the period prior to acquisition, to provide comparability on operational and financial performance. Redrow Group data for the period 1 July 2024 to 21 August 2024 is based on Redrow plc's standalone accounting policies and therefore excludes any impact of policy alignments made since the acquisition. The impact of policy alignment is not material. 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 auditors. No adjustments relating to legacy property provision finance charges have been made to Redrow plc's standalone results included in the aggregated comparative for the period 1 July 2024 to 21 August 2024.  Further information can be found in the APM section on pages 58 to 61.

 

 

Note on forward-looking statements:

 

This announcement contains certain forward-looking statements with respect to Barratt Redrow's expectations and plans, strategy, management objectives, future developments and performance, costs, revenues and other trend information. All statements other than historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations, and all forward-looking statements are subject to assumptions, risk and uncertainty. Many of these assumptions, risks and uncertainties relate to factors that are beyond Barratt Redrow's ability to control or estimate precisely, and which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements made by or on behalf of Barratt Redrow are based upon the knowledge and information available to Directors on the date of this announcement. Accordingly, no assurance can be given that any particular expectation will be met, and you are cautioned not to place undue reliance on the forward-looking statements. Additionally, 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. The information contained in this announcement is provided as at the date of this announcement and is subject to change without notice. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), Barratt Redrow does not undertake to update forward-looking statements, including to reflect any new information or changes in events, conditions or circumstances on which any such statement is based. Past share performance cannot be relied on as a guide to future performance. Nothing in this announcement should be construed as a profit estimate or profit forecast. Neither the content of Barratt Redrow's website nor any other website accessible by hyperlinks from Barratt Redrow's website are incorporated in, or form part of, this announcement.

 

Results presentation:

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 and access the webcast. 

An archived version of the results webcast will also be available on our website later this afternoon 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

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 Wednesday 4 November 2026.

 

 

Chair's statement

Introduction

Against a challenging backdrop, we have proactively managed our business to maintain sales momentum and effectively controlled our costs to deliver an overall solid performance that was in line with market expectations.

Whilst we have seen continued improvements in mortgage product availability, consumer sentiment remained subdued throughout the year. In the first half this reflected uncertainty around government policy towards home ownership and taxation, ahead of the Budget in late November.

 

A more positive start to 2026, with Budget uncertainties removed and interest rate cuts back on the agenda, was sharply reversed by the start of the Middle East conflict at the end of February. These events, and the corresponding risks around energy costs, disruption to supply chains and inflation, saw a significant shift in interest rate expectations, making homebuyers more cautious and increasing ongoing affordability challenges in the UK housing market.

 

Our performance

In this context, we were pleased to have delivered 17,667 total home completions, including joint ventures, and adjusted profit before tax and before the impact of PPA adjustments of £572.8m (FY25: £617.2m). Statutory profit before tax for FY26 was £363.5m (FY25: £273.7m).

 

This solid performance reflected the proactive approach taken to managing our business, including the careful use of sales incentives to maintain volumes, and the rigorous management of our cost base. Land spend was targeted and highly selective and as such, substantially reduced on the prior year.

 

The rigorous management of our cost base resulted in a significant reduction in our administrative expenses, helping to mitigate gross margin pressure and support our strong net cash position at the year-end of £772.8m.  Taking account of the Company's future financial obligations including payments in respect of land creditors and building safety remediation spend, we are well placed to undertake a £400m capital return in FY27.

 

Throughout the year, our teams have remained focused on our build quality, customer service and sustainability performance, which have each been endorsed by accreditation from our customers and independent third-party assessments. During the year:

 

·   122 of our site managers were recognised by the NHBC Pride in the Job awards for build quality and site management in June 2026, more than any other housebuilder for the 22^nd consecutive year, and our best performance in these awards; 

·    We were awarded a maximum 5-Star rating in the HBF customer satisfaction survey, for the 17^th successive year, an unparalleled record in the industry; and

·    We again retained our position on the CDP Climate Change Corporate A List for Leadership.

 

These industry-leading indicators of build quality, customer service and sustainability, have underpinned our solid performance, despite the challenging market.

 

Redrow integration

I am pleased that the operational integration of Redrow was completed during the year. The divisional office network, the restructuring of Group support functions and IT integration have all been completed and total expected cost synergies of £100m have been confirmed.

 

We delivered incremental cost synergies of £53m in the year, ahead of our original plan. As a result, we have now delivered £73m of our target of £100m synergies per annum with the remaining £27m to be largely delivered in FY27. The outstanding cost savings are predominantly procurement-related synergies, and any outstanding synergies will be delivered in HY28, which is slightly ahead of the schedule set out at acquisition.

 

We have also accelerated the progress of our revenue synergies, opening 12 synergy sales outlets, in FY26, ahead of the original timetable. These outlets added one or more new brands to existing developments. Early performance from these developments has been encouraging, reinforcing our belief that bringing together our three complementary brands enhances customer choice and supports sales performance.

 

The Group is on track to launch an additional 18 synergy sales outlets in FY27 and at least 15 in FY28, in line with our target to deliver at least 45 additional sales outlets from the Barratt and Redrow land bank portfolios at acquisition.

 

Shareholder returns

The Board regularly reviews the Group's capital allocation framework to ensure it supports our long-term strategy, balancing disciplined investment in the business with maintaining balance sheet strength and financial flexibility. Over the last ten years, we have returned nearly £3.5bn to shareholders through a combination of ordinary dividends, share buybacks and special dividends.

Given the strength of our business and our balance sheet, but the very material discount at which our shares have recently traded relative to tangible net asset value, the Board saw an opportunity to optimise shareholder returns through additional share buyback activity.

 

The Board also concluded that 50% remains the correct proportion of adjusted net income to be returned to shareholders annually. This recurring element of shareholder return will now be distributed primarily by way of a share buyback and will be supplemented by additional share buyback activity.

For FY27, the Board has therefore announced a total capital return of £400m. Approximately £386m will be returned through a share buyback programme, which commenced on 15 July 2026; £53.5m has been returned as at 6 September 2026. The remaining c. £14m will be returned through a nominal 1.0 pence final FY26 dividend.

In FY28 and beyond it is the Board's intention that this policy will be to return 50% of adjusted net income plus at least £100m of additional share buyback.

 

Building safety

We are committed to progressing solutions as quickly as we are able and have a dedicated Building Safety team which is responsible for identifying required remediation works at our historic developments and ensuring that proposed and completed works meet with the approval of the Building Safety Regulator. We understand that for the residents the process of remediation is challenging and we remain committed to providing the most appropriate solutions as promptly as possible.

 

Sustainability

We are committed to building sustainably, protecting and enhancing the things that matter to us most as a business: our people, the places we create, and the natural world in which we operate. Following the integration of our businesses, we revalidated our sustainability targets with the Science Based Targets initiative, demonstrating our continued commitment to best practice. We also worked closely with suppliers to enhance the robustness of our data through more detailed quantity-based analysis, and we launched a new Human Rights Policy, further strengthening our approach to responsible business practices.

  

Board changes

We have a high-calibre Board, combining operational expertise with extensive listed company, financial and governance experience, providing strong leadership and oversight as we continue to deliver our strategy.

In August 2026, we were pleased to welcome Rebecca Napier as Chief Financial Officer and Executive Director, following the departure of Mike Scott. As previously announced, Dean Banks will join the Group as Chief Executive on 21 September 2026, succeeding David Thomas on his retirement.

David was appointed Group Finance Director in July 2009 and stewarded the Group's financial recovery following the global financial crisis and UK housing market collapse. David was appointed Group CEO in July 2015 and has made a huge contribution throughout his tenure, which has seen Barratt Redrow build an exceptionally strong business with an industry-leading reputation for customer service and build quality and the creation of tens of thousands of high-quality sustainable homes and developments across the country. The Board and everyone at Barratt Redrow wish David a long and happy retirement.

Jock Lennox stepped down as a Non-Executive Director in November 2025, with Nicky Dulieu succeeding him as Senior Independent Director and Jasi Halai becoming Chair of the Audit and Risk Committee.

I am confident that the strength and breadth of experience across the Board leave us well positioned to support the Group through its next phase of development.

 

Looking ahead

Your Board and management team have proactively managed our business through a year of challenging market conditions, which remain ongoing.

Whilst recent planning reforms should, in time, boost housing delivery, alone they will not be enough. The Government must also take action to support demand, particularly for first-time buyers. It is only by reducing barriers to home ownership and addressing the increasing regulatory and tax burdens that are constraining housebuilding viability across many parts of the country, that the Government will be able to unlock increased levels of housing delivery, including affordable housing, to start to tackle the housing crisis, create jobs and drive economic growth across the country.

Performance in the year ahead will continue to be influenced by the broader macro-economic environment. Higher mortgage rates and affordability pressures will continue to impact customer confidence, but mortgage availability remains competitive and our experience on the ground is that demand from committed home buyers remains resilient. Undoubtedly, there will be challenges and opportunities ahead, but we have a proven and resilient business and have demonstrated our ability to adapt quickly.

Finally, I and the Board would like to extend our thanks to all our colleagues at Barratt Redrow for their continued dedication and commitment and our supply chain partners and subcontractors for their continued partnership and support.

 

Caroline Silver

15 September 2026

 

 

Chief Executive's statement

Performance summary

We were pleased to deliver total home completions of 17,667 homes in FY26 (FY25: 16,826^A; 16,565^R), an increase of 5% and at the upper end of market expectations. Adjusted profit before tax, and before the impact of PPA adjustments was in line with market expectations at £572.8m (FY25: £616.5m^A; £617.2m^R), with statutory profit before tax of £363.5m (FY25: £273.7m).

We have maintained a strong balance sheet with year-end net cash of £772.8m (FY25: £772.6m) after the payment of dividends, the FY26 £100m share buyback and increased legacy property-related spend.

ROCE, before PPA adjustments, reduced to 9.2% (FY25: 10.7%) reflecting the lower level of profitability and the full annualised impact on capital employed of the Redrow acquisition. After PPA adjustments, ROCE reduced to 8.4% for FY26 (FY25: 9.0%).

For more information on our performance, please refer to the Financial review.

Strong fundamentals for growth

We believe the long-term fundamentals underpinning the UK housing market are strong, and that we are one of the best-positioned national homebuilders to capitalise on this opportunity.

We have an unparalleled record of quality and customer service; we have three, industry-leading brands which build high-quality, well-designed homes in great locations. Our brands, across different price points and private and affordable tenures, mean we can meet the widest range of customer aspirations and needs. We have multiple land acquisition channels so we see the best opportunities in the market, a timber frame manufacturing capacity which we can scale up for home delivery growth and a strong balance sheet, so we can take advantage of land and planning opportunities as they arise.

We welcomed the planning reforms proposed by the Government in 2024, although these reforms took longer to be enacted than hoped. The Planning and Infrastructure Act, which became law in December 2025, and the revised National Planning Policy Framework, published in August 2026, will further improve the planning environment but the benefits have yet to be realised on the ground. In addition, we have continued to see the volume of housing-related regulation proliferate, posing further challenges for our industry.

 

Strategic priorities 

We have four clear strategic priorities which govern the way we manage our business in the short, medium and long term. These are set out below, with full progress against each detailed in the following pages:

·    Delivering a best-in-class customer offering;

·    Driving operational efficiency through differentiated brands;

·    Using capital effectively; and

·    Leading the industry in sustainability.

Post year end, we announced an update to our capital allocation framework, to prioritise share buybacks as our preferred method of returning capital to shareholders. This is set out in the section on "Using capital effectively".

 

Responsible development

Keeping people safe

Our first priority is to keep our employees, subcontractors and customers safe. During FY26, our injury incidence rate, across all of Barratt Redrow's operations including our timber frame and internal furniture operations, reduced to 261 (FY25: 272^R) per 100,000 workers whilst we maintained our SHE audit compliance at 97% (FY25: 97%).

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, remains a key focus for all our divisions. At the front line of our site-based operations we are placing increased emphasis on developing our site managers' vigilance to health and safety risks on site and actions which can be taken to remove or mitigate risks.

Building safety

We are working effectively to complete building assessments and design appropriate remediation strategies which meet the Building Safety Regulator's approval. Our dedicated Building Safety Unit ensures these works are prioritised within our business. The diligence of our site teams, our use of highly qualified fire engineers and peer reviews of proposed solutions, means that we have a good visibility around remediation progress and expected costs.

During the year, additional legacy property provision charges totalling £96.8m (FY25: £106.2m) have been recognised as adjusting items with an additional charge in relation to JV legacy property provisions of £15.0m (FY25: £nil).

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 and we recovered £38.4m (FY25: £15.8m) prior to legal fees on these and future recoveries of £15.1m (FY25: £2.2m).

More details around legacy property provisions and recoveries from third parties are included in the Financial review.

 

Charitable giving and the Barratt Redrow Foundation

Core to our purpose is building strong communities, and we recognise we have a role to play in the communities in which we operate both as a business and through the actions and activities of our employees.

The Barratt Foundation was launched in 2021 and in July 2025 the Foundation became the Barratt Redrow Foundation, expanding its charitable programmes to cover over 7,700 colleagues across the enlarged Group.

The Foundation celebrated its fifth anniversary in January 2026 and, in recognition of this milestone, commissioned a short film, "5 Lives for 5 Years", which brings to life the real stories of young people whose lives have been transformed through the work of our charity partners.

The Foundation's charitable giving programmes are accessible to all Barratt Redrow colleagues creating a wide range of fundraising activities and volunteering opportunities for colleagues throughout the Group's operations.

In FY26 we donated £7.1m (FY25: £6.7m) through the Barratt Redrow Foundation and employee fundraising across the Group.

 

Current trading and outlook

Against an uncertain macro-economic backdrop, we enter FY27 with a solid forward sales position.

As at 6 September 2026 we are 45% forward sold with respect to private wholly owned home completions for FY27 (7 September 2025 for FY26: 48%), with 38% of the private order book exchanged (7 September 2025: 48%).

Since the start of FY27 our current year reservation rate, excluding PRS and other multi-unit sales, has been 0.53, compared with 0.55 in the comparable period, evidencing the continuing affordability challenges faced by potential homebuyers.

Our overall net private reservation rate per outlet per week through to 6 September 2026 was supported by a 0.09 (FY26: nil) contribution from reservations into the PRS and other multi-unit sales, increasing to 0.62 (FY26: 0.55).

The composition of our forward sales at 6 September 2026 and the order book movement since 28 June 2026 are included in the following tables, along with the position in the comparable period in 2025:

 

	6 September 2026		7 September 2025		Variance %
	£m	Homes	£m	Homes	£m	Homes
Private	2,187.6	5,820	2,205.0	5,580	(0.8%)	4.3%
Affordable	950.4	4,819	823.5	4,469	15.4%	7.8%
Wholly owned	3,138.0	10,639	3,028.5	10,049	3.6%	5.9%
JV	199.6	561	191.9	544	4.0%	3.1%
Total	3,337.6	11,200	3,220.4	10,593	3.6%	5.7%

 

	Current Year		Prior Year		Variance %
	Private	Total	Private	Total	Private	Total3
28 / 29 June	4,570	9,728	4,781	9,835	(4.4%)	(1.1%)
Reservations	2,460	2,804	2,135	2,263	15.2%	23.9%
Completions	(1,210)	(1,332)	(1,336)	(1,505)	(9.4%)	(11.5%)
6 / 7 September	5,820	11,200	5,580	10,593	4.3%	5.7%

 

Based on current market conditions and trading year to date, we anticipate total home completions, including JVs, will now be in a range of 17,500 to 17,900 in FY27, including c. 600 completions from our JVs.  We also currently estimate that  c. 40% of our completions will be delivered in the first half of FY27.

To really accelerate housing delivery across the industry, the Government must take action to support demand, particularly for first-time buyers. By removing barriers to home ownership and addressing the increasing regulatory and tax burdens which constrain our industry, it will drive housing supply, to tackle the housing crisis, create jobs and support economic growth. The reform of the planning system, whilst welcome, is alone, not sufficient.

Notwithstanding this backdrop, Barratt Redrow is well placed for the future: our business model is resilient, our balance sheet is strong, and we have three complementary, industry-leading brands which are performing well. We are focused on further improving our cost base efficiency and we have additional opportunities to optimise our capital employed to enhance returns for shareholders.

 

David Thomas

Chief Executive

15 September 2026

 

Notes:

(R) Reported denotes a Barratt Redrow plc reported metric based on the reported performance of Barratt Redrow plc in the comparable reporting period, with metrics for the 52 weeks to 29 June 2025 including the final assessment of the fair values of assets and liabilities recognised through the acquisition of Redrow.

 

(A) Aggregated denotes an aggregated metric based on the reported performance of Barratt Redrow plc in the comparable reporting period from 1 July 2024 to 29 June 2025 including the performance of the legacy Redrow plc Group (Redrow Group) from 1 July 2024 to 21 August 2024, the period prior to acquisition, to provide comparability on operational and financial performance.

Redrow Group data for the period 1 July 2024 to 21 August 2024 is based on Redrow plc's standalone accounting policies and therefore excludes any impact of policy alignments made since the acquisition. The impact of policy alignment is not material. Aggregated adjusted measures are also presented and prepared on the same basis. The aggregated value comparatives have not been audited or reviewed by Barratt Redrow plc's auditor. No adjustments relating to legacy property provision finance charges have been made to Redrow plc's standalone results included in the aggregated comparative for the period 1 July 2024 to 21 August 2024. Further information can be found in the APM section on pages 58 to 61.

 

 

Our strategic priorities

We have identified four clear strategic priorities to drive performance across our business and deliver attractive shareholder returns. We monitor and report our progress against these annually.

1.   Delivering a best-in-class customer offering

Offering industry-leading home choices, build quality and customer service. Each of our brands and their house type ranges offers a variety of sizes, architectural features and choices around internal finishes.

 

How we do it

·    Offer differentiated house types and styles across our three brands to maximise customer appeal.

·     Prioritise build quality and customer service across the group; our HBF 5-Star customer satisfaction rating is a KPI.

·    Link Executive Director remuneration to our quality and service performance and ensure this is cascaded throughout the group.

·    Survey customers and potential customers on a broad range of housing topics.

·    Listen to and act upon customer feedback.

·    Offer mortgage qualification and access assistance.

·    Offer a range of customer assistance programmes.

Progress

·    Maintained our HBF 5-Star rating.

·    Our latest rolling annual recommended score (Q1 2026) of 94.1% for Barratt Redrow is amongst the highest for the UK national housebuilders.

·    Across our developments nationwide, our site managers secured 122 Pride in the Job awards, more than any other housebuilder for 22 consecutive years.

·    Delivered an improvement in the NHBC Reportable Items per inspection of new build properties for defects with a rate of 0.14 for the combined group (FY25: 0.12 for Barratt, 0.23 for Redrow).

·    26,320 interactions including engagement with 450 customers and 25,870 in-market consumers through our customer insight programmes in FY26.

·   Our customers used a variety of assistance programmes in the year, including part-exchange, a key worker deposit contribution scheme and 'Deposit Unlock', a scheme targeted at first-time buyers.

 

2.   Driving operational efficiency through our differentiated brands

Leveraging our three brands to create additional sales outlets, growth in home completions and housing revenues to deliver faster asset turn and improve our return on capital.

 

How we do it

·    Capitalise on our brand portfolio through multi-branded sites

o  Deliver 45 synergy sales outlets from the Redrow acquisition through multi-branding.

o  Accelerate overall private home reservation volumes across larger development opportunities, using our three brands to improve asset turn and return on capital.

·    Deliver cost and purchasing synergies from the Redrow acquisition.

·    Drive efficiency in our build programmes by streamlining standard house types and further adoption of MMC where appropriate.

·    Manage site infrastructure, build and reservation rates to optimise work in progress.

Progress

·    12 synergy sales outlets opened in FY26 with a further 18 expected to open in FY27 and the remaining 15 in FY28.

·   Encouraging performance at Lichfield, our first triple-branded site, with overall private home reservations ahead following the addition of Barratt Homes and David Wilson Homes.

·    £73m of the £100m target synergies have now been delivered, with the balance being primarily procurement synergies to be delivered before the end of December 2027.

·    Operational integration of Redrow complete.

·    Streamlining of Barratt Homes and David Wilson Homes house type designs completed, expected to launch in FY27, incorporating the Future Home Standard.

·    35% of homes completed in the year used MMC.

 

3.   Using capital effectively

Balancing disciplined investment in our business to drive operational performance and improve return on capital, whilst maintaining a strong balance sheet and delivering attractive shareholder returns.

Optimising shareholder returns by prioritising share buybacks but maintaining a flexible approach, to reflect the changing macro environment and the views of our shareholders.

 

How we do it

·     Regularly assess our capital allocation framework, taking into account our balance sheet position, requirements of the business, the views of our shareholders and market conditions.

·     Disciplined investment in our land bank, utilising our diverse land channels to access high-quality opportunities on competitive terms.

·    Appropriate use of land creditors, reflecting the pace of land acquisitions and development timeframes.

·     Investing in joint ventures (JVs) to gain access to larger development opportunities and leverage our residential development expertise with the skills of our JV partners.

·     Invest in our business to unlock operational efficiencies and new product improvements notably around off-site manufacturing capabilities.

Progress:

·    £342.2m returned to shareholders in FY26 with a £400.0m capital return announced for FY27.

·    £626.8m invested into land in the year (FY25: £862.5m), a reduction on the prior year, demonstrating our disciplined approach to land acquisition.

·    Land creditors equated to 15.3% of our year-end balance sheet land bank investment (FY25: 15.9%).

·    Progressing JV partnerships, with good progress at Godley Green in the MADE Partnership, where work is expected to start on site in early 2027, and initial investment into Gilston Garden Village, a JV with Places for People.

·    New product development and testing of the Mauer engineered façade, modular bathrooms and other multi-use pods which are constructed off-site, enabling us to deliver faster and more efficient build, to support asset turn.

4.   Leading the industry in sustainability

A commitment to building sustainably, protecting and enhancing the things that matter most to our stakeholders: our people, the places we create, and the natural world in which we operate.

How we do it:

·     Anticipate and respond to evolving customer expectations and deliver what sustainable living means to them.

·     Demonstrate sector leadership by working with government and industry bodies to help shape a UK policy landscape that enables sustainable growth.

·     Foster innovation and supply chain resilience through collaboration and long-term partnerships.

·     Build and maintain relationships with key stakeholders, such as NGOs, suppliers, landowners, financial institutions and lenders, to share knowledge and collaborate effectively.

·     Continuously promote a diverse and inclusive workforce that reflects the communities we serve.

·    Establish a clear and resilient pathway to net zero that aligns with our growth ambitions.

Progress:

·   Surveyed over 9,970 customers on their attitudes and experiences in relation to a wide range of topics including water efficiency and water use, the use of low-carbon technologies and the role that nature plays in their lives in FY26.

·  Responding to customer demand for credible, consistent sustainability information, which is aligned to regulatory requirements

·   We continue to provide representation, insight and messaging to support engagement with government and industry stakeholders, including the Zero Carbon Council, Future Homes Hub and DEFRA consultations, ensuring Barratt Redrow's voice is present in key forums.

·    Engaged 27 suppliers on their carbon data and its quality to allow more accurate quantity-based assessment by the Group.

·    We have a revised carbon transition plan as a combined Group with new validated carbon reduction targets.

·    The overall Group mean gender pay gap was 5.0% and our median gap was 4.9%, both lower than the average UK-wide figures of 13.4% and 12.8% respectively.

 

Our strategic priorities in action

1.   Delivering a best-in-class customer offering

Our customers are at the heart of what we do. As well as a strategic priority, our "Customer Focus" is a key differentiator and "Do it for our customers" is one of the values that underpins our business.

This reflects our conviction that our success is ultimately driven by our reputation for delivering high-quality homes for all our customers, with best-in-class customer service.

Understanding the customer

We have established a comprehensive customer insight programme that provides a deep understanding of the evolving needs of our customers and those in the market, informing decision-making across the business.

Over the past three years, this programme has generated over 51,310 interactions, including engagement with more than 850 of our own customers and c. 50,470 in-market consumers.

Using a combination of quantitative and qualitative research, including large-scale surveys, focus groups and ongoing tracking studies, we generate insights into the critical decision-drivers for home buyers, including price, quality, and overall running costs. Key takeaways from this work show the rise in importance of energy efficiency and lower operating costs, the value placed on community, proximity to nature and schools, and the growing number of buyers who are purchasing homes as an investment for their children.

In addition, we conduct bespoke pieces of research into specific parts of our business. This year, this has included surveys of over 2,000 consumers providing insights on the importance of nature and our placemaking activities. We also ran a focus group on the Mauer engineered façade system and our ongoing research has informed the development of our forthcoming house type range.

Delivering choice

Our three brands are tailored to different parts of the market, with Barratt Homes providing a high quality, value offer, often aimed at first-time buyers, David Wilson catering for those taking the next step on the property ladder, and Redrow being a premium product, which is popular with downsizers.

Within these brands we have a wide range of house types, with key differentiators including architectural elevations, internal floor areas and room configurations. This enables us to provide the broadest offer of any major housebuilder. Buyers can further personalise their space with a range of kitchens, flooring and wardrobes.

We provide our customers with a range of financing options, including part-exchange which we offer to existing homeowners, where the value of their property, typically up to 80% of the new home value can be used to finance a new home purchase. We also provide specific schemes for key workers and armed forces personnel. 

Build performance and quality

Our team takes pride in delivering homes to the highest standards.  This year, we were delighted that 122 of our site managers won Pride in the Job awards, more than any other housebuilder for 22 years in a row. 

Throughout FY26 Barratt Redrow once again maintained an industry-leading position amongst the major housebuilders, with the Group registering Reportable Items (RIs) per NHBC inspection at 0.14 (FY25: 0.12 for Barratt David Wilson, 0.23 for Redrow).

Reflecting our focus on strong communities, we look beyond the individual homes we are delivering to the wider built environment and this year launched new frameworks for both Placemaking and Inclusive Play.

Customer service

We are extremely proud of our track record in achieving exceptional customer satisfaction.  This is recognised by external benchmarks including the HBF Star awards scheme, where customers are surveyed on quality and service, eight weeks and nine months post purchase; the survey became more challenging this year, with the required customer rating increasing from "recommend" to "very satisfied".  Barratt Redrow gained a 5-Star award for the 17^th successive year and ranked amongst the highest of the major housebuilders.   HBF's most recent customer satisfaction survey (Q1 2026) found that 94.1% of Barratt Redrow homebuyers are "very satisfied". 

This year we introduced new on-site technology to create a more engaging, interactive and personalised customer experience across our physical sales locations. We also launched a new customer portal, "My Home", which will enable customers across the Redrow brand to log and track our response to any issues that they encounter once moved in; this is now being rolled out across the wider Group. This provides a valuable feedback mechanism, helping us to improve our quality and service.

 

2.   Driving operational efficiency through differentiated brands

Our multi-brand approach is one of our key differentiators and an important driver of operational efficiency. Whilst the operating environment has been challenging, with Redrow now fully integrated, we have more options at our disposal to drive efficiency going forward.

Multi-branding

Our positive experience of dual-branding sites over nearly 20 years was an important rationale for the Redrow acquisition.  With multi-branded developments, we can work on different parts of a development in parallel, to reach a wider customer base and enable us to turn our investment in land faster. We expect this benefit to outweigh the cost we incur in opening an additional outlet on the development site, ultimately improving our return on capital employed. 

A multi-branded approach also means we are well placed when competing for larger sites. Operators without this advantage typically have to work in joint venture, or in the expectation of selling some of the land to other homebuilders, which can create conflict around financing, the allocation of plots, the mix of homes and the pace of sales through competition from the homebuilder introduced onto the same development.

With the Redrow acquisition, we immediately identified 45 opportunities across our combined developments to add additional sales outlets to deliver revenue synergies. As at 28 June 2026, planning applications had been submitted in respect of 38 of these, of which 24 had been approved with the remainder awaiting decision.  This supports our outlet opening programme, with 12 new outlets opened in FY26 and a further 18 planned in FY27. The balance of 15 synergy outlets are expected to open in FY28.

Average sales outlets in FY27 are now however expected to remain stable at c. 405, held back by continuing planning delays and the lack of on the ground improvement in the planning system.

Cost synergies

Our upgraded guidance in February 2025 was to deliver £100m of cost synergies from the Redrow acquisition. £20m were achieved and benefitted financial performance in FY25 with a further £53m delivered in FY26, leaving a balance of £27m. Of this, c. £19m relates to procurement synergies where the benefit of savings takes time to be reflected in the site margin and therefore will not be fully realised until the end of December 2027.

Other efficiency and cost saving initiatives

As well as securing synergies from the Redrow acquisition we are also maintaining a highly disciplined approach to managing our ongoing cost base. During FY26 this has involved a freeze on recruitment, other than essential role replacement, as well as other costs.

The combination of Redrow cost synergies and our disciplined approach to costs has resulted in a reduction in our adjusted administrative expenses of £68.7m when compared to our annualised expenses of £398.5m in FY25, and a reduction of £89.7m when compared to combined standalone Barratt Developments and Redrow administrative expenses of £419.5m in FY24. In FY26, we benefitted from some one-off items which will not repeat in FY27 and are guiding towards adjusted administrative expenses of c. £360m.

 

3.   Using capital effectively

Our broader capital allocation priorities are to balance disciplined investment in our business to drive operational performance and improve return on capital, whilst maintaining a strong balance sheet and delivering attractive shareholder returns. 

Investing in the business - land

During FY26 we deliberately moderated our future land investment commitments. Over the year, we approved 3,029 plots for purchase across 27 sites, compared to initial guidance of between 10,000 and 12,000 plots prior to the conflict in the Middle East. Accordingly, investment in land purchases and the settlement of land creditors was lower at £626.8m (FY25: £862.5m).

Whilst land is the key input for our business, we benefit from an already strong land bank which began the year at 6.2 years' supply (comprising 5.4 years of owned and 0.8 years of controlled land) and ended the year at 5.2 years' supply (comprising 4.5 years of owned and 0.7 years of controlled land).

This decision to moderate land approvals reflected increased uncertainty, primarily around build cost inflation. Land values are based on the residual value once all costs associated with developing the site can be reasonably estimated; if these costs increase ahead of expectations at acquisition and are not offset by increased sales prices, the implied margin across the site falls. Conversely, if costs increase at below our expectations at acquisition, or are offset by better than anticipated selling prices, the implied margin across the site increases. Reflecting both rising build costs in the second half of the year and the uncertainty as to the ultimate impact on homebuying demand of the Middle East conflict, we became more selective in our land buying.

In addition, our longer-term target is to operate with a shorter overall land bank of 4.5 years, comprising 3.5 years of owned land with further one year of controlled land, which is a more efficient use of our capital and beneficial to our ROCE.

Planning and ownership or control status	28 June 2026	29 June 2025
Plots with detailed planning consent	54,430	59,645
Plots with outline planning consent	20,394	24,072
Plots with resolution to grant and other	1,623	3,994
Owned and unconditional land bank (plots)	76,447	87,711
Conditionally contracted land bank (plots)	12,148	12,293
Total owned and controlled land bank (plots)	88,595	100,004
Number of years' supply	5.2	6.2
JVs owned and controlled land bank (plots)	14,903	8,651
Strategic land bank (acres)	24,825	22,258
Strategic land bank (plots)	144,059	145,043
Promotional land bank (plots)	113,551	113,940
Land bank carrying value (£m)	4,641.3	5,104.9

 

Our approach to land investment is supported by the diversity of our land channels, providing access to some of the most attractive opportunities in the market.

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

Second, where there is demand, divisions can draw upon land from our strategic land bank, which is land typically acquired through an option agreement, and hence at a discount to the prevailing market rate, enhancing our gross margin. 2,415 strategic land plots (FY25: 5,860) were converted into our owned and controlled land bank during the year and 8,777 plots across 51 planned future sites were approved (FY25: 12,972 plots across 42 sites). 

Third, Gladman, the country's largest land promoter, operates as a standalone business within Barratt Redrow, providing access to further land opportunities. During FY26, Gladman secured 1,500 net plots (FY25: 10,837 net plots) through new promotional agreements with landowners and, following several successful planning applications, achieved planning consents on 2,922 plots (FY25: 4,524 plots).

Finally, the MADE Partnership, a master development joint venture between Barratt Redrow, Homes England and Lloyds Banking Group, was established in September 2024 with plans to deliver more than 18,000 new homes across six developments in the UK. The first of these, Godley Green Garden Village in Greater Manchester, is expected to start on site in early 2027. The MADE Partnership's land holdings are held in a joint venture and are therefore not included in our consolidated land bank details tabled earlier.

At 28 June 2026 the estimated average selling price of plots in our owned land bank was £369,000 (29 June 2025: £366,000) and the estimated gross margin in our land bank, based on the current estimated average sales prices and build costs at 28 June 2026 was 17.3% (29 June 2025: 19.2%; 28 December 2025: 18.9%). 

Our land bank is also commercially strong with respect to its planning status with 71.2% of our owned and unconditional land bank plots at 28 June 2026 having detailed planning consent (29 June 2025: 68.0%). During the year, we successfully secured planning consents on 11,982 plots across 76 developments (FY25: 14,551 plots across 78 developments). As well as progressing planning applications at a local level, we received six decisions via planning appeal, with five allowed and one dismissed. 

Land creditors financed 15.3% of the Group's land investment at 28 June 2026 (29 June 2025: 15.9%). Our medium-term goal is to increase this to between 20% and 25%, improving our return on capital, although with another year of moderate land investment in FY27, we do not expect this ratio to increase in the short term. 

Investing in the business - MMC

To ensure we maintain and build our competitive advantage, we are continually evaluating opportunities which drive efficiency and which mean we are delivering the most modern and sustainable product we can.

Our timber frame manufacturing capacity was established initially with the acquisition of Oregon Timber Frame, in Selkirk, in June 2019 and expanded through investment in new capacity at our plant near Derby. In FY26 5,558 home completions were constructed using timber frame. 

This year we have also invested in Mauer, an innovative engineered façade system, which helps address several of our key challenges, including material and labour shortages. The product is a printed brick pattern, laid on a fibre cement board, with less than half the embodied carbon of bricks. We have completed small scale trials and installed the product on show homes at our Hollygate Green scheme in Cotgrave, Nottinghamshire. 

This ability to deliver faster and more efficiently supports our plans to improve our asset turn and capital employed.

Balance sheet

Maintaining a strong financial position and liquidity is a key priority, given the seasonal and cyclical nature of housebuilding, which can give rise to volatility in cash flows. 

Furthermore, our balance sheet position fluctuates through the year reflecting our build and sales cycles, as we invest in housebuilding work in progress and subsequently, receive the cash flows from home completions. 

Typically, our year-end net cash position is very strong, at £772.8m for FY26 (FY25: £772.6m), supported in FY26 by our reduced investment in land as well as the timing of legacy building remediation spend.  However, average daily net cash for the year was lower at £121.8m (FY25: £466.8m). It is our intention, notwithstanding our shareholder return commitments by way of share buybacks, to continue to operate with minimal year-end total indebtedness in the medium term (see Operating Framework in Financial Review).

Capital and returns

For FY26, our stated policy was to pay a dividend equivalent to 50% of adjusted earnings before PPA charges associated with the Redrow acquisition, and to supplement this with a share buyback of at least £100m. The share buyback was completed on 8 May 2026. 

As set out in our trading update on 15 July 2026, the Board has reviewed the Group's capital allocation framework to ensure it continued to support our long-term strategy, whilst also taking account of the views of our shareholders and the evolving macro-economic environment. 

In view of the material discount to tangible net assets at which our shares have traded, particularly since the outbreak of the conflict in the Middle East, the Board decided there was an opportunity to optimise shareholder returns through additional share buyback activity. This decision also reflects the overall strength of the business and its balance sheet. 

The Board remained of the view that 50% was the correct proportion of adjusted net income to be returned to shareholders annually. This will now be delivered primarily through a share buyback (save for a 1 pence nominal ordinary dividend to satisfy the investment mandates of some shareholders), and will be supplemented by an additional share buyback, the quantum of which has taken into consideration the following:

·    the investment in land and work in progress required to meet our pipeline of additional sales outlets, delivering both closing outlet replacement and growth in FY27 and FY28;

·     our balance sheet position, and in particular the seasonal nature of our business; and

·   our ongoing financial obligations being principally land creditors and our legacy building safety remediation obligations, which are expected to aggregate to a cash outflow of c. £640m in FY27 and c. £645m in FY28.

Accordingly, on 15 July 2026, the Group announced a total capital return of £400m for FY27. Based on our FY26 results now reported, this FY27 shareholder return of £400m comprises:

·    £131.8m equating to residual payout of 50% of FY26 adjusted net earnings before PPA impacts (including the 1 pence nominal ordinary); and

·    £268.2m comprising 50% of HY27 estimated net earnings and additional capital, including the previous and ongoing commitment to a share buyback of at least £100m annually.

In FY28 it is the Board's intention to return 50% of adjusted net income, supplemented by at least £100m of additional share buyback.

4.   Leading the industry in sustainability

We are committed to building sustainably, protecting and enhancing the things that matter most to our stakeholders: our people, the places we create, and the natural world in which we operate.

Nature

We recognise that our business depends on, and impacts nature across its value chain, and we are committed to understanding these interactions and taking steps to address them. Species Enhancement Plans focus on locally vulnerable species which we are developing with the support of the RSPB. We are also delivering specific "homes for nature" plans, in line with the initiative, integrating nest bricks, boxes and hedgehog highways, as well as additional features, such as bat roosts, insect bricks and hibernacula, on 24 developments during the year. We supported continued development of the Future Homes Hub sustainability metrics and the Homes for Nature reporting process as a signatory of this key commitment.

To help inform the development of our strategy we spoke to over 2,000 in-market consumers on the importance of nature and also gathered insight from another 2,000 members of the public on ways they engage with nature, and which nature-related features are valued. 85% of consumers consider nature an important factor when purchasing a home.

We are also now measuring water efficiency on our site compounds with the introduction of mandatory smart metering for all new developments. Beyond our sites, we know water is a wider issue, and we continue to review value chain water-related risks and opportunities, recognising the fundamental link between climate, biodiversity and water resources and how this will shape our ongoing work to develop a water resilience strategy.

Reducing waste continues to be a key priority. We adopt best practice measures across our programme of works and waste targets are included in construction team bonuses. We aim to increase re-use and alternative treatment routes and recognise the need for industry-wide action and collaboration on waste reduction. We use a leading materials reuse platform to facilitate re-use and trading of soils and aggregates across sites and the wider construction industry.

We continue to influence emissions outside our direct control, particularly across our value chain, working with suppliers to capture accurate emissions data and by selecting low-carbon materials.

More broadly, the combination of tightening regulation, pressure to accelerate the transition to low-carbon living and customer affordability constraints is a challenge, but one we are responding to well. Encouragingly, our annual market and consumer trackers continue to indicate that the appetite for energy-efficient homes remains high and increasing and the introduction of the Future Homes Standard will see emissions from homes in use reduce, and this aligns with our science-based target.

We work closely with government and industry bodies to help shape the regulatory environment and in April 2026, Bukky Bird, our Group Sustainability Director, was appointed co-chair of the new Embodied Carbon and Resource Efficiency Board at the Future Homes Hub.

We continue to make good progress on our net zero transition plan, which we further updated this year. The plan sets out our strategy to deliver our net zero ambitions, in line with the best practice guidance set out by the Transition Plan Taskforce.

We have made significant progress and delivered emission reductions across the business in our operations, which are down 70.8% cumulatively since 2021, driven by a combination of good practice and by adopting low-carbon or renewable initiatives. These include replacing 87% of diesel used on site with hydrotreated vegetable oil (HVO), improving site fuel efficiencies, establishing early grid connections, switching company cars from petrol or diesel to electric and hybrid, and procuring renewable electricity.

Through our successful partnership with the RSPB, we are creating new opportunities to protect nature within Barratt Redrow developments and communities. This includes reviewing opportunities for nature friendly features around the country and rolling out Species Enhancement Plans. These plans, tailored for specific developments, will support species most in need in that area. The partnership will also continue to enable us to engage and inspire customers to act for nature as well as advocate for nature-friendly business practices and policies across the industry.

Places

We aim to embed measurable wellbeing, resilience, and placemaking outcomes into our developments through the integration of nature, enhanced accessibility, active travel, and high-quality, customer-focused design. This includes strengthening the connection between nature and health within the design of our developments.

"Great Places", our new placemaking framework launched this year and builds on the Government's Building for a Healthy Life code and is informed by customer insight and feedback.

We are committed to embedding accessible, inclusive and imaginative opportunities for play into every new community we create. All play spaces on developments submitted for planning must now be inclusive, guided by our Inclusive Play Manual which we developed in partnership with Whizz Kidz.

People

We strive to build a diverse, respectful and inclusive culture where everyone can achieve their potential. We have established a framework of policies and initiatives to ensure that we are supporting talent, recruiting from a diverse range of backgrounds, and that health, safety and wellbeing are prioritised for our people and our partners.

To encourage young people of all backgrounds to consider careers in housebuilding we work with partners such as the School Outreach Company and Careermap across primary and secondary schools and colleges. Our graduate scheme is market leading and we have four degree apprenticeship programmes with Sheffield Hallam University. As at 28 June 2026, our apprenticeship and degree programmes supported 526 participants (29 June 2025: 465 participants).

Human rights and modern slavery

We are committed to respecting human rights and preventing modern slavery across our operations and value chain, in line with the UK Modern Slavery Act 2015, the UN Guiding Principles on Business and Human Rights, and OECD due diligence guidance. We recognise the elevated risks within construction supply chains and our responsibility to identify, mitigate and address them.

Operating solely in the UK, we are supported by a complex supply chain of materials suppliers and subcontractors. During the year, we strengthened our risk-based human rights due diligence programme covering governance, supply chain engagement and operational controls.

Oversight is provided by the Board Sustainability Committee and a cross-functional Human Rights Steering Committee, with accountability embedded across Executive, divisional and site-level roles. During the year, we published our Human Rights Approach, setting out how we uphold labour standards and human rights across our value chain.

On our sites, we have assessed human rights risks as highest where sub-contract and agency labour is used, particularly in lower skilled roles and where workers may be vulnerable due to temporary employment, migration status or language barriers. Within our materials supply chain, risks are greatest in globally sourced and complex product categories where visibility beyond Tier 1 suppliers is limited.

During FY26, we prioritised higher-risk labour and materials categories for enhanced due diligence, including self-assessment questionnaires, strengthened tender requirements and targeted engagement in areas such as solar photovoltaics, electronics and waste management. This work identified both good practice and opportunities to improve visibility beyond Tier 1 suppliers.

We further strengthened on-site labour controls through multilingual inductions, independent confidential worker interviews and a review of labour agency assurance measures. As a committed Living Wage Employer, we continue to promote fair work practices across our operations.

Training and awareness programmes for employees, suppliers and subcontractors continued to expand during the year. Whilst human rights risks cannot be eliminated entirely, we remain focused on continuous improvement, transparency and effective action to protect workers and uphold human rights across our value chain.

Trusted sustainability communications

Regulatory scrutiny, for example the Green Claims Code and customer demand for credible, consistent sustainability information remains a priority. Our Sales and Marketing sustainability toolkit provides simpler, more consistent sustainability communications aligned with regulatory requirements and reinforces our ability to both demonstrate compliance and build trust with our customers.

Accredited living wage employer

We are an accredited Living Wage Employer, and we promote the payment of the real Living Wage within our UK supply chain through our standard subcontractor terms and conditions. Where we find instances of non-compliance, we require this to be rectified. For those working in jurisdictions other than the UK, our expectation, set out within our contract, is that local statutory minimum wage terms are met. 

Benchmarks and awards

We continue to demonstrate excellent performance in external benchmarks. We have been recognised for the quality and transparency of our climate and environmental disclosures, achieving an A rating from CDP for climate change for the fourth consecutive year and an A for our Supplier Engagement Assessment.

MSCI continues to be a priority benchmark for the Group, and we have maintained our status as a 'Leader' under their ESG rating, whilst we have been identified as a 2026 ESG Leader by Sustainalytics. We are also pleased to be once again listed in TIME Magazine's 'World's Most Sustainable Companies 2026'.

 

Financial review

 

Introduction

This year, in a tough market, the Group adjusted its trading stance to prioritise reservation activity to maintain volumes, which, at 17,667, were towards the top end of guidance. We have delivered an adjusted profit before tax and before the impact of PPA adjustments of £572.8m, in line with market expectations. Statutory profit before tax for FY26 was £363.5m (FY25: £273.7m).

This performance also reflected our commitment to driving cost efficiencies across the business, as well as the clear progress made on delivering cost synergies following the Redrow acquisition.

The integration of Redrow completed in the year and we launched 12 synergy sales outlets, ahead of our original plans and despite the planning system showing no evidence of improvement on the ground.

Our strong financial performance, focus on cash generation and continuing balance sheet strength have allowed the Board to announce an update to our capital return programme, building on our ordinary dividend payments and £100m share buyback executed in FY26. This enhanced capital return programme of £400m across FY27 will see approximately £386m deployed on share buyback activity and approximately £14m returned to shareholders by way of ordinary dividends through the financial year to 4 July 2027.

 

Results for the 52 weeks to 28 June 2026

Home reservation activity

Our net private reservation rate per outlet per week improved to 0.64 when compared with the aggregated performance of 0.63^A for Barratt and Redrow in the comparable period (FY25: 0.64^R). This included a contribution of 0.08 (FY25: 0.08^A and 0.08^R) from reservations into the private rental sector (PRS) and other multi-unit sales.

PRS reservation activity included sales to a growing portfolio of PRS partners as well as our ongoing relationship with Lloyds Living. We successfully secured 1,630 (FY25: 1,699^A; 1,693^R) private reservations to a combination of PRS partners, Registered Providers (RPs) and other multi-unit investors. These reservations support our order book for private completions in FY27 and thereafter.

We operated from an average of 405 (FY25: 423^A; 405^R) sales outlets during FY26 (including 9 JVs (FY25: 10^A&R)) and at 28 June 2026 we were operating from 411 (29 June 2025: 407) sales outlets including 9 JVs (29 June 2025: 10).

Private reservation activity was subdued in the first quarter of FY26, reflecting weak consumer confidence and growing speculation that the 2025 Budget would introduce changes in housing-related taxation. This uncertainty weighed on homebuyer demand, requiring a higher level of incentives to support reservation momentum until the end of the calendar year. With a more optimistic start to the second half, incentives were initially, and selectively, withdrawn, but the conflict in the Middle East and ensuing macro uncertainty reignited inflation concerns, driving interest rates higher and this again required the reintroduction of additional incentives to support our reservation rate. Incentives stayed at this level through the remainder of FY26. 

 

Part-exchange, which provides customers with greater certainty and a smoother home move experience, has been a particularly powerful sales tool this year, accounting for 21% of private reservations (FY25: 14%^{A & R}).

 

Based on current market conditions, we anticipate that sales incentives will remain elevated in FY27, unless there is an improvement in consumer sentiment and the wider trading environment.

 

 

Home completions and ASPs

The Group's completion mix by both volume and average sales prices (ASPs) are detailed in the following tables comparing completions and ASPs in FY26 to the completions and ASPs in FY25 on both an aggregated and reported basis.

Total home completions (including JVs) increased by 5.0% to 17,667 with Group wholly owned completions also up 5.0% to 17,101 homes. Affordable completions were also ahead due to the timing of contract deliveries.

 

Barratt Redrow plc1	FY26	Aggregated FY25	Change (%)	Reported FY25
Home completions
Underlying private	12,029	12,019	0.1%	11,824
PRS	1,055	878	20.2%	878
Other MUS	243	428	(43.2%)	427
Total private	13,327	13,325	0.0%	13,129
Affordable	3,774	2,963	27.4%	2,898
Wholly owned	17,101	16,288	5.0%	16,027
% affordable	22.1%	18.2%	390 bps	18.1%
JV	566	538	5.2%	538
Total	17,667	16,826	5.0%	16,565

 

The ASP of our wholly owned completions increased by 2.2% to £351.7k, with our private ASP up by 3.3% to £394.1k. This increase was driven by geographic and product mix, with a greater contribution from regions with a higher ASP and an increase in average unit size delivered. The underlying ASP pricing movement, excluding the impacts of size, geographic and product mix, was estimated at just under a 1% decline in FY26.

 

Barratt Redrow plc1	FY26	Aggregated FY25	Change	Reported FY25
ASP (£'000)
Underlying private	402.4	389.7	3.3%	388.9
PRS	328.2	305.0	7.6%	305.0
Other MUS	269.6	307.0	(12.2%)	307.1
Total private	394.1	381.5	3.3%	380.6
Affordable	202.1	176.8	14.3%	177.1
Wholly owned	351.7	344.2	2.2%	343.8
JV	367.6	388.6	(5.4%)	388.6

 

 

Income statement

Gross profitability: 

Group revenue increased by 6.6% to £6,055.0m in FY26 (FY25: £5,679.4m^A; £5,578.3m^R).

Adjusted gross profit before the impact of PPA adjustments reduced by 6.3% to £926.6m (FY25: £989.0m^A; £970.3m^R). We experienced a 210 basis point decline in the adjusted gross profit margin before PPA adjustments to 15.3% (FY25: 17.4%^A&R). This was impacted by lower underlying pricing, increased non-financial sales incentives and build cost inflation in the year.

The purchase price allocation impact in FY26 reduced adjusted gross profit by £47.7m (FY25: £95.1m^A&R). This adjustment resulted in adjusted gross profit of £878.9m (FY25: £893.9m^A; £875.2m^R) and an adjusted gross margin of 14.5% (FY25: 15.7%^A&R).

Incorporating net adjusting item charges in cost of sales of £58.4m, relating to legacy property costs and recoveries (FY25: £90.4m^A&R charge), resulted in statutory gross profit of £820.5m (FY25: £803.5m^A; £784.8^Rm) and a reported gross margin of 13.6% (FY25: 14.1%^A&R).

We delivered good progress on procurement synergy savings, adding £16.0m incrementally to gross profits in FY26. Our contribution margin was c. 25.1% (FY25: c. 26.8%^R) after land and direct build costs.

 

Barratt Redrow plc(1) £m (unless otherwise stated)	FY26	Aggregated FY25	Change (%)	Reported    FY25
Adjusted gross profit before the impact of PPA adjustments	926.6	989.0	(6.3%)	970.3
Adjusted gross margin before the impact of PPA adjustments (%)	15.3%	17.4%	(210 bps)	17.4%
PPA adjustment related charges in cost of sales	(47.7)	(95.1)	(49.8%)	(95.1)
Adjusted gross profit	878.9	893.9	(1.7%)	875.2
Adjusted items income / (charges)	(58.4)	(90.4)	35.4%	(90.4)
Statutory gross profit	820.5	803.5	2.1%	784.8
Statutory gross profit margin (%)	13.6%	14.1%	(50 bps)	14.1%

 

Operating profitability:

Administrative expenses, before adjusting items and purchase price allocation adjustments, were £329.8m (FY25: £398.5m^A; £378.8m^R), a notable reduction on the prior year, reflecting our ongoing focus on costs. Administrative expenses included:

·     the full year impact of consolidation of Redrow's administrative expenses of £19.7m;

·     underlying cost inflation, including salary increases of c. 3.0%, of £9.5m, as well as the impact of additional employers' NIC costs of £6.5m;

·     Redrow-related incremental cost synergy savings in relation to central and divisional administrative expenses of £37.0m (FY25: £16.0m^R&A);

·     an increase in sundry income of £0.8m;

·     a reduction in employee incentive award costs of £15.3m;

·     additional cost reduction actions, totalling c. £14.3m, most notably a freeze in recruitment; and

·    £10.1m of one-off items relating to the re-measurement of cost accruals and £7.2m reflecting lower-than-normal levels of internal project activity as internal resources were focused on completing the Redrow integration. In FY27, internal project activity is expected to return to a more typical level similar to FY25.

 

After deducting administrative expenses before adjusting items and a net profit of £1.3m on part-exchange activities (FY25: £3.9m^R&A net profit), the Group delivered:

·    an adjusted profit from operations, before PPA adjustments, of £598.1m (FY25: £594.4m^A; £595.4m^R), with an adjusted operating margin before PPA adjustments of 9.9% (FY25: 10.5%^A; 10.7%^R);

·    an adjusted profit from operations after PPA adjustments of £550.3m (FY25: £499.1m^A; £500.1m^R), with an adjusted operating margin of 9.1% (FY25: 8.8%^A; 9.0%^R).

 

 

Barratt Redrow plc(1) £m (unless otherwise stated)	FY26	Aggregated FY25	Change (%)	Reported    FY25
Adjusted gross profit before the impact of PPA adjustments	926.6	989.0	(6.3%)	970.3
Adjusted administrative expenses before the impact of PPA adjustments	(329.8)	(398.5)	(17.2%)	(378.8)
Profit from the sale of part-exchange properties	1.3	3.9	(66.7%)	3.9
Adjusted operating profit before the impact of PPA adjustments	598.1	594.4	0.6%	595.4
Adjusted operating profit before the impact of PPA adjustments margin (%)	9.9%	10.5%	(60 bps)	10.7%
PPA adjustments recognised in adjusted operating profit	(47.8)	(95.3)	(49.8%)	(95.3)
Adjusted operating profit	550.3	499.1	10.3%	500.1
Adjusted operating profit margin (%)	9.1%	8.8%	30 bps	9.0%
Adjusted items recognised in reported operating profit	(106.0)	(242.3)	56.3%	(214.6)
Statutory operating profit	444.3	256.8	73.0%	285.5
Statutory operating profit margin (%)	7.3%	4.5%	280 bps	5.1%

The adjusted operating profit margin before the impact of PPA adjustments reduced by 60 bps to 9.9% (FY25: 10.5%^A). The change in the adjusted operating profit margin, before the impact of PPA adjustments in the year, reflected several factors:

·    completion volumes: the increase in wholly owned completions of 5.0%, or 813 homes, created a 20 bps positive impact;

·    net inflation and incentives: modest sales price deflation, combined with increased sales incentives and build cost inflation of c. 2%, produced a 200 bps negative impact;

·    completed developments provision: modest changes to this provision in the year created a 20 bps negative margin impact;

·    Redrow acquisition-related synergies: the crystallisation of incremental cost synergies of £53m included within cost of goods sold and administrative expenses had a 90 bps positive impact;

·    other administrative expenses: underlying inflation with respect to our administrative expenses, actions on cost discipline, a reduction in employee incentive award costs, and one-off items identified above, as well as increased sundry income, resulted in a 60 bps positive margin impact; and

·    mix and other items: changes in sales mix, a quieter year for Gladman reflecting reduced promotional land sales activity, and the movement in profitability on part-exchange activities created a 10 bps negative margin impact.

The adjusted operating margin then included:

·    Purchase price allocation (PPA) adjustments: the impact of PPA adjustments at adjusted operating profits totalled £47.8m, an 80 bps impact on margin, and resulted in the adjusted operating profit margin at 9.1%.

Adjusted items recognised within operating profit:

Adjusted items recognised in operating profit in FY26 of £106.0m (FY25: £242.3m^A; £214.6m^R) consisted of:

Within cost of sales:

·    costs incurred in respect of legacy properties of £96.8m (FY25: £106.2m^R&A);

·    recoveries from sub-contractors and suppliers with respect to legacy properties of £38.4m (FY25: £15.8m^A&R).

Within administrative expenses:

·    reorganisation and restructuring costs to unlock cost synergies of £32.5m (FY25: £56.8m^R); and

·    legal fees in the pursuit of legacy property-related recoveries from third parties of £15.1m (FY25: £2.2m^A&R).

After adjusted items, the statutory operating profit was £444.3m (FY25: £256.8m^A; £285.5m^R) and the statutory operating margin for the year was 7.3% (FY25: 4.5%^A; 5.1%^R).

Profit before tax:

The Group incurred £31.5m of net adjusted finance costs (FY25: restated £4.9m^A finance income; restated £4.6m^R finance income). This reflected a reduction in interest received on cash on deposit, with adjusted finance income reducing to £18.2m (FY25: £35.9m^A; £35.6m^R) and a more significant increase in adjusted finance costs to £49.7m (FY25: restated £31.0m^A&R), reflecting an increase in the imputed interest rate applicable to new land creditors and the use of the Group's revolving credit facility for part of the year.

We now anticipate FY27 adjusted net finance costs will be around £43m, reflecting a further reduction in cash deposits and, once again, the use of the Group's revolving credit facilities.

The adjusted item finance charge of £40.5m (FY25: restated £33.6m^A&R) relates to the imputed non-cash charge with respect to the unwinding of the discount attached to legacy property provisions. The FY25 restatement reflects the presentation of legacy property provision finance charges as an adjusted item. We expect this adjusted item finance charge will be stable in FY27 at c. £40m.

The Group's adjusted share of JV profit was £6.2m (FY25: £17.2m^A&R) with an adjusting charge associated with legacy JV properties of £15.0m (FY25: £nil charge) and, as a result, the reported share of JV results was a loss of £8.8m (FY25: £17.2m^A&R profit).

Adjusted profit before tax and before the impact of PPA adjustments was £572.8m (FY25: £616.5m^A; £617.2m^R).

After deducting PPA adjustments of £47.8m (FY25: £95.3m^A&R) adjusted profit before tax was £525.0m (FY25: restated £521.2m^A, restated £521.9m^R).

After adjusted items, statutory profit before tax was £363.5m (FY25: £245.3m^A; £273.7m^R).

 

Barratt Redrow plc (1) £m (unless otherwise stated)	FY26	Aggregated FY25	Change (%)	Reported    FY25
Adjusted operating profit before the impact of PPA adjustments	598.1	594.4	0.6%	595.4
Adjusted finance (charges) / income	(31.5)	4.9	n.a.	4.6
Adjusted JV income	6.2	17.2	(64.0%)	17.2
Adjusted profit before tax and the impact of PPA adjustments	572.8	616.5	(7.1%)	617.2
PPA adjustment charges recognised in adjusted profit before tax	(47.8)	(95.3)	(49.8%)	(95.3)
Adjusted profit before tax	525.0	521.2	0.7%	521.9
Adjusted item charges recognised in operating profit	(106.0)	(242.3)	56.3%	(214.6)
Adjusted item charges recognised in finance costs	(40.5)	(33.6)	(20.5%)	(33.6)
Adjusted item charges recognised in JV income	(15.0)	0.0	n.a.	0.0
Statutory profit before tax	363.5	245.3	48.2%	273.7

 

The Group recognised £120.3m of total tax charges (FY25: £87.3m^R) at an effective rate of 33.1% (FY25: 31.9%^R). The FY26 effective tax rate was impacted by the revised tax treatment of the CMA commitment charged in FY25. The FY25 effective tax rate was impacted by the absence of tax deductibility with respect to Redrow transaction costs.

The expected tax rate for the Group in FY27 is 29% on adjusted profit before tax, including Residential Property Developer Tax of 4%.

Adjusted basic earnings per share, before the impact of PPA adjustments, was 28.5 pence per share (FY25: 32.1 pence^R).

Adjusted basic earnings per share, after PPA adjustments, reduced to 26.1 pence per share (FY25: 27.2 pence^R per share).

Basic earnings per share increased by 25.7% to 17.1 pence per share (FY25: 13.6 pence ^R).

The Group's ROCE declined to 8.4% (FY25: 9.0%^R) reflecting the full annualised impact of the Redrow acquisition on average capital employed, ongoing PPA adjustments and the impact of lower profitability. The Group's ROCE before the impact of PPA adjustments was 9.2% (FY25: 10.7%).

Legacy properties

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 in March 2023.

During the year additional legacy property charges totalling £96.8m (FY25: £106.2m) have been recognised as adjusting items covering issues identified and quantified in the second half of the year.

Building safety

Remediation work estimates for the Building Safety portfolio remained broadly stable during FY26. However, additional costs of £103.1m were recognised in relation to general cost increases of £42.4m and an increase in of £60.7m with respect to two specific developments:

·    In our Southern region, we identified further fire safety-related remediation costs at a development identified in FY25, involving four buildings which were completed in 2002.

·    Additional costs have also been recognised relating to issues identified at a development in London (already within our Building Safety portfolio and provision) where additional fire safety and refurbishment-related remediation costs have now been recognised.

Of the 270 buildings remaining in our "under review" portfolio, 258 are the responsibility of our dedicated Building Safety Unit; of the remaining 12, 7 are currently being remediated through the Government's Building Safety Fund with 5 completed.

As well as our "under review" portfolio of buildings we hold responsibility for a further 522 buildings, which are not under active review. This "inactive" portfolio has been appraised for issues relating to external wall systems and fire safety through communications with building owners, managing agents and principal accountable persons, as well as external inspections (where complete building surveys and access are not within our control), monitoring apartment purchase and sales activity, and evidencing EWS1 certification and direct communications from residents.

Reinforced concrete frames

During FY26 further investigative works and non-linear testing of several developments in London resulted in a release of previous provision of £47.0m. During the period one building already in the portfolio has been identified as requiring additional remediation. This resulted in an additional provision of £46.1m. As a result of the changes with respect to these two developments, as well as adjustments to build cost inflation and scheduling of remediation, there was a net £8.2m provision release in the year.   

At the year end, the portfolio of reinforced concrete frame buildings, across both Barratt and Redrow developments, totalled 164 buildings, of which 76 have been identified as not requiring remediation; 17 have had remediation works completed; 18 are currently under review; and 53 have had remediation issues identified and are at various stages in the remediation process. 

Legacy properties - impacts in FY26

As a result of the movements set out above, our total provision with respect to legacy properties ended the year at £1,074.5m (29 June 2025: £1,073.9m). The breakdown between our Building safety and Reinforced concrete frame provisions and the movement in the year is set out below.

£m	Building safety	Reinforced concrete frames	Total
At 29 June 2025	886.4	187.4	1,073.8
Reclassification	17.2	-	17.2
Additions	103.1	46.1	149.2
Releases	-	(47.0)	(47.0)
Revaluation	1.9	(7.3)	(5.4)
Net adjusted item charge	105.0	(8.2)	96.8
Imputed interest	33.1	7.4	40.5
Utilisation	(143.6)	(10.2)	(153.8)
At 29 June 2026	898.1	176.4	1,074.5

 

We remain focused on fulfilling our remediation obligations but with the safety of our homeowners always paramount. 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 was stable at £772.8m at 28 June 2026 (29 June 2025: £772.6m). The main components of the net movement in the year-end position were:

•    a £436.4m net cash inflow from operating activities (FY25: £29.3m net cash inflow);

•    a £58.6m net cash outflow from investing activities (FY25: inflow of £195.8m); and

•    a £376.5m net cash outflow from financing activities (FY25: outflow of £320.8m), principally reflecting dividends paid of £242.2m (FY25: £249.3m) and share buyback costs of £101.2m, including stamp duty charges (FY25: £50.3m).

The constituents of the increase in net cash inflow from operating activities to £436.4m in the year (FY25: £29.3m) were the significant improvement in reported operating profit at £444.3m (FY25: £285.5m) combined with a net cash inflow from working capital and provisions of £74.7m (FY25: £136.8m outflow) and net interest and tax payments, which in combination, reduced to £100.3m (FY25: £139.3m).

The net £74.7m inflow (FY25: £136.8m outflow) with respect to working capital and provisions included:

•    reduced investment of £433.8m (FY25: increased investment of £265.5m^R) with respect to inventories with a reduction in land investment of £463.6m, a reduction in construction work in progress of £106.4m and additional part-exchange and other inventories of £83.9m;

•    a £300.3m decrease (FY25: £89.3m increase) in payables, with land creditor balances decreasing by £98.0m (FY25: £167.4m increase) and a decrease in trade and other payables of £203.3m (FY25: £85.0m reduction); and

•    a £13.0m decrease in provisions (FY25: £40.5m increase) as building safety spend exceeded the additional legacy building safety charges incurred in FY26. During FY26, we spent £153.8m (FY25: £100.6m) on the remediation of legacy properties.

Balance sheet

The Group's net assets at 28 June 2026 were £7,776.5m (29 June 2025: £7,873.0m^R) after the payment of dividends totalling £242.2m in FY26 (FY25: £249.3m^R) and £101.2m (FY25: £50.3m) incurred on share buybacks, including stamp duty charges. Looking at the assets and liabilities which make up our balance sheet:

·    goodwill was unchanged at £1,174.8m (29 June 2025: £1,174.8m^R);

·    intangible assets, which include brands, customer contracts and contract relationships, reduced to £398.7m (29 June 2025: £408.4m^R) after investment in façade manufacturing rights and amortisation charges of £11.2m (FY25: £14.5m^R);

·    total investment in our land bank reduced to £4,641.3m (29 June 2025: £5,104.9m^R);

·    construction work in progress reduced to £2,872.6m (29 June 2025: £2,979.0m) reflecting tight control notwithstanding increased sales outlet opening investment;

·    investment in land promotion activity at Gladman grew by £15.0m to £127.4m (29 June 2025: £112.4m^R), reflecting increased promotional agreement work in progress;

·    part-exchange properties and other inventories increased to £228.2m (29 June 2025: £144.3m^R). The increased use of part-exchange by our customers, and the adoption of part-exchange across Redrow's sales outlets were the primary drivers of this increase. Part-exchange inventory was carefully controlled with 573 of the total holdings of 852 part-exchanged homes reserved for sale at the year end; and

·    at 28 June 2026 the Group held net cash balances of £772.8m (29 June 2025: £772.6m^R).

 

Looking at the key liabilities on our balance sheet:

·    trade and other payables at 28 June 2026, excluding land creditors, reduced to £927.8m (29 June 2025: £1,131.1m); 

·    land creditors at 28 June 2026 reduced to £711.4m (29 June 2025: £809.4m) and equated to 15.3% (29 June 2025: 15.9%) of our land bank investment reflecting the slowing in land approvals and subsequent land acquisition.

·    during FY27, £336.3m of land creditors at 28 June 2026 will fall due for payment (29 June 2025, during FY26: £437.3m). Land creditors due beyond 4 July 2027 totalled £375.1m at 28 June 2026 (29 June 2025: £372.1m due beyond 28 June 2026).

·    provisions on the balance sheet increased to £1,358.3m at 28 June 2026 (29 June 2025: £1,371.3m) and included £1,074.5m (29 June 2025: £1,073.8m) provided to cover future costs in connection with legacy property remediation of external wall systems and reinforced concrete frames.

·    our minimal year-end total net indebtedness target was met with a net surplus of £61.4m at 28 June 2026 (29 June 2025: £36.8m net indebtedness).

Net tangible assets at 28 June 2026 were £6,203.0m and 439.8 pence per share (29 June 2025: £6,289.7m and 436.8 pence per share). Land, net of land creditors and work in progress, totalled £6,802.5m and 482.3 pence per share at 28 June 2026 (29 June 2025: £7,274.5m and 505.2 pence per share).

Operating framework, capital allocation and returns to shareholders

Our operating framework and our performance against targets at 28 June 2026 and 29 June 2025 are summarised below.

 

	Operating framework	Barratt Redrow position at 28 June 2026	Barratt Redrow position at 29 June 2025
Land bankA	c. 4.5 years, consisting of c. 3.5 years owned and c. 1.0 year controlled	5.2 years consisting of 4.5 years owned and 0.7 years controlled	6.2 years consisting of 5.4 years owned and 0.8 years controlled
Land creditors	Target 20 - 25% of the land bank over the medium term	15.3%	15.9%
Net cash	Modest average net cash over the financial year	FY26: average net cash of £121.8m	FY25: average net cash of £466.8m
	Year-end net cash	£772.8m net cash	£772.6m net cash
Total indebtedness (net cash and land creditors)	Minimal year-end total indebtedness in the medium term	Total net surplus of £61.4m	Total net indebtedness of £36.8m
Treasury	Appropriate financing facilities	£700m RCF expiring November 2029 £200m USPP maturing August 2027	£700m RCF expiring November 2029 £200m USPP maturing August 2027
Dividend policy	Ordinary dividend of 1 pence per share annually	FY26 total proposed ordinary dividend of 6.0 pence per share (5.0 pence interim and 1.0 pence proposed final dividend)	FY25 total ordinary dividend of 17.6 pence per share (5.5 pence interim and 12.1 pence final dividend)
Capital returns	50% of adjusted net income (less the ordinary dividend above) distributed as a share buyback, plus a supplementary buyback of at least £100m	Share buyback of £100m in FY26	Share buyback of £50m in FY25

 

(A) Land supply is calculated as total owned (owned land and land subject to unconditional contracts) and controlled (land subject to conditional contracts) land bank plots divided by wholly owned completions in the last 52 weeks.

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 base for the business to manage both operating risks and opportunities.

Cash management and relationships with our banking partners are coordinated centrally by Group Treasury.

After the year end, on 30 July 2026 we amended and extended our RCF with our existing syndicate of ten banks. Our amended RCF, reflecting the increased scale of the Group following the Redrow acquisition, provides committed facilities of £900m and has been extended to 30 July 2031 with potential extension to July 2033 subject to lender approval. Our £200m US Private Placement note remains in place and will remain in place until August 2027.

Tax

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 Group does not enter into business transactions for the sole purpose of reducing potential tax liabilities. The rate of corporation tax, including RPDT, for the year ended 28 June 2026 was 33.1% (FY25: 31.9%^R).

Class action

On 24 June 2026 an application to commence proposed collective action was filed in the Competition Appeal Tribunal, against seven housebuilders, including Barratt Redrow, alleging that exchanges of competitively sensitive information reduced competition and led to higher prices for certain purchasers of new build homes, in breach of UK competition law.

The claim follows the Competition and Markets Authority's (CMA) investigation into information-sharing practices in the sector, which closed on 30 October 2025 following the CMA's acceptance of binding commitments from the housebuilders. The CMA did not make any decision that the Competition Act 1998 had been infringed, and the acceptance of commitments did not involve an admission of wrongdoing by the housebuilders. The proposed collective action remains at an early stage.

Pensions

Defined contribution pension arrangements are in place for all current employees. Defined contribution scheme charges for qualifying employees totalled £33.6m (FY25: £32.5m). 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 acquisition of Redrow plc included the Redrow Staff Pension Scheme which, in part, comprised a defined benefit pension plan. The Trustees of the Scheme entered into a bulk annuity buy-in contract with the insurer, Standard Life, on 27 January 2023. The buy-in did not change the obligations of Redrow Limited (formerly Redrow plc) in relation to the Scheme but reduced the future funding risk.

On 6 October 2025 the insurer assumed responsibility for the previously bought-in benefits of the Scheme members through a buy-out. This transaction has resulted in the discharge of substantially all of the Scheme liabilities from the Group and surplus net assets of £3.2m remain in the scheme.

Guidance for FY27

Key elements with respect to our anticipated financial performance in FY27 are summarised in the following table.

Total home completions	c. 17,500 - 17,900 total home completions including c. 600 JV completions. Affordable housing mix expected to be c. 20%. H1:H2 completion split c.40%: 60%
Average sales outlets (inc. JVs)	c. 405
Build cost inflation	c. 3-4% including procurement-based cost synergies of c. £14m
Adjusted administrative expenses	c. £360m (including amortisation of intangible asset charges of c. £12m and incremental cost synergies of c. £8m)
Synergy cost savings	Incremental c. £22m within adjusted profit before tax (£95m cumulative)
Adjusted share of JV profits	c. £7m
Adjusted finance charge	c. £43m adjusted finance charge
Legacy property provision finance charge	c. £40m finance charge recognised as an adjusted item
Land approvals	6,000 - 8,000 plots subject to market conditions & land opportunities
Land cash spend	c. £800m - £900m
Land creditor settlements (included in land cash spend)	c. £340m
Legacy property-related provision spend	c. £300m
Year-end net cash	c. £400m - £500m
Taxation	Tax rate on adjusted earnings anticipated at 29%, reflecting current corporation tax rate at 25% and 4% RPDT
Ordinary dividend	Final FY26 dividend of 1.0 pence per share
Additional shareholder returns	Share buyback of c. £386m to be completed by 2 July 2027

 

 

 

Notes:

(R) Reported denotes a Barratt Redrow plc reported metric based on the reported performance of Barratt Redrow plc in the comparable reporting period, with metrics for the 52 weeks to 29 June 2025 including the final assessment of the fair values of assets and liabilities recognised through the acquisition of Redrow.

(A) Aggregated denotes an aggregated metric based on the reported performance of Barratt Redrow plc in the comparable reporting period from 1 July 2024 to 29 June 2025 including the performance of the legacy Redrow plc group ("Redrow Group") from 1 July 2024 to 21 August 2024, the period prior to acquisition, to provide comparability on operational and financial performance.

Redrow Group data for the period 1 July 2024 to 21 August 2024 is based on Redrow plc's standalone accounting policies and therefore excludes any impact of policy alignments made since the acquisition. The impact of policy alignment is not material. 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 auditors. No adjustments relating to legacy property provision finance charges have been made to Redrow plc's standalone results included in the aggregated comparative for the period 1 July 2024 to 21 August 2024.

Further information can be found in the APM section on pages 58 to 61.

Consolidated Income Statement and Statement of Comprehensive Income

52 weeks ended 28 June 2026

 

Continuing operations	Notes	52 weeks  ended  28 June 2026 £m	52 weeks ended  29 June 2025 £m
Revenue	2	6,055.0	5,578.3
Cost of sales		(5,234.5)	(4,793.5)
Gross profit		820.5	784.8
Administrative expenses	3	(377.5)	(503.2)
Part-exchange income		580.7	402.5
Part-exchange expenses		(579.4)	(398.6)
Operating profit	3	444.3	285.5
Finance income	5	18.2	35.6
Finance costs	5	(90.2)	(64.6)
Net finance costs	5	(72.0)	(29.0)
Share of post-tax (loss)/profit from joint ventures		(8.8)	17.2
Profit before tax		363.5	273.7
Tax	6	(120.3)	(87.3)
Profit for the period, all of which is attributable to the owners of the Company		243.2	186.4
Other comprehensive income/(expense)
Items that will not be reclassified to profit and loss:
Remeasurement of employment benefit obligations and assets		1.0	(0.7)
Tax on remeasurements		(0.3)	0.2
Other comprehensive income/(expense) for the period		0.7	(0.5)
Total comprehensive income for the period all of which is attributable to the owners of the Company		243.9	185.9
Earnings per share from continuing operations
Basic	7	17.1p	13.6p
Diluted	7	16.8p	13.3p

 

Adjusted items:

		Gross profit			Operating profit			Share of post-tax profit from joint ventures			Profit before tax
	Notes	52 weeks ended 28 June 2026  £m	52 weeks ended 29 June 2025  £m		52 weeks ended 28 June 2026  £m	52 weeks ended 29 June 2025  £m		52 weeks ended 28 June 2026  £m	52 weeks ended 29 June 2025  £m		52 weeks ended 28 June 2026  £m	52 weeks ended 29 June 2025  £m
Reported profit		820.5	784.8		444.3	285.5		(8.8)	17.2		363.5	273.7
Cost associated with legacy properties	4	96.8	106.2		96.8	106.2		15.0	-		111.8	106.2
Legacy property recoveries	4	(38.4)	(15.8)		(38.4)	(15.8)		-	-		(38.4)	(15.8)
Costs incurred in respect of the acquisition of Redrow plc	4	-	-		-	36.2		-	-		-	36.2
Reorganisation and restructuring costs	4	-	-		32.5	56.8		-	-		32.5	56.8
CMA commitment	4	-	-		-	29.0		-	-		-	29.0
Legal fees in respect of legacy property recoveries	4	-	-		15.1	2.2		-	-		15.1	2.2
Imputed interest in respect of legacy properties1	4	-	-		-	-		-	-		40.5	33.6
Adjusted profit		878.9	875.2		550.3	500.1		6.2	17.2		525.0	521.9

¹ Adjusted profit for the 52 weeks ended 29 June 2025 has been re-presented to show imputed interest in respect of legacy properties as an adjusted item. See note 4 for further information.