Interim results show decline in performance for both housebuilders
Rival housebuilders Barratt and Redrow have both reported reduced revenue and profit on the day a merger between the two was announced.
Barratt, , posted income of 拢1.85bn in the half year to December 2023, a third down on the same period the year prior.
Pre-tax profit was also down 81% from 拢502m to 拢95m, partly owing to adjusted items relating to costs associated with legacy properties, which were estimated to have cost 拢62m.
Barratt said its full year outturn would depend on 鈥渉ow the market evolves鈥� through the spring but said it expected total completions between 13,500 and 14,000.
鈥淪ince the start of January, we have seen early signs of improvement in both reservation rates and buyer sentiment, helped by expectations of lower interest rates and the introduction of more competitive mortgage rates,鈥� said Barratt chief executive David Thomas.
Redrow, the smaller of the pair, also saw its revenue cut to 拢756m in the half year to December 2023, compared with 拢1.03bn in the same period the previous year.
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Its pre-tax profit dropped to 拢84m from 拢198m. For the full year, the firm is anticipating revenue between 拢1.65bn and 拢1.7bn and underlying pre-tax profit of between 拢180m and 拢200m.
Matthew Pratt, group chief executive at Redrow, said recent improvements in mortgage approvals and reduced mortgage rates had 鈥渋mproved homebuyer confidence and raised the prospects of a return to a more stable sales market鈥�.
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