Barratt Redrow outlined its growth plans today in its first trading update as a combined group.
Created by the merger of homebuilders Barrett and Redrow, the combined group has laid out plans to build 22,000 homes a year in the medium term. That would make it one of the UK’s largest house builders.
In its update this morning, the company said the merger was officially completed on 21 August 2024 after the group reached an agreement with the Competition and Markets Authority.
The integration of the two groups is well underway, with at least £90m of cost synergies expected and revenue synergies expected from the 45 sales outlets currently operating.
Total home completions in the current year are projected at between 16,600 and 17,200 and the private reservation rate was 0.67 between 22 August to 13 October, 36.7 per cent ahead of the pro-forma equivalent last year of 0.49.
David Thomas, chief executive of Barrett Redrow, commented: “Whilst customer demand continues to be sensitive to the wider economy, we are beginning to see more stable market conditions with increased mortgage availability and affordability.
“It will take some time for customer confidence to fully recover from the macroeconomic headwinds faced over the past two years, but we are encouraged by the solid trading we have experienced over recent weeks.”
The boss continued: “This is an exciting new chapter for our business. Barratt Redrow is uniquely well-positioned to meet the need for new homes of all tenures across the country. We have superior scale, with a differentiated multi brand offering that can be deployed across our strong combined land portfolio.
“We begin this journey with a strong balance sheet, a solid forward sales position and the ability to add significant value through cost and revenue synergies. We look forward with confidence to delivering a smooth and efficient integration process, and to capturing the enhanced growth opportunities ahead of us.”