Recently merged Barratt Redrow has increased revenues and profits, with the housebuilder now claiming it is on track to deliver 22,000 homes per year.
Revenue for the six months to 29 December 2024 climbed 25 per cent to £2.3 billion from £1.9 billion in the same period the year previous.
The house builder generated a 23 per cent increase in pre-tax profit from £95.2 million in H2 2023 to £117.2 million in H2 2024.
This came as Barratt Redrow saw an 10.9 per cent increase in total home completions over the period to 6,846, compared to 6,171 the year previous.
The house builder also saw an increase in construction work in progress of £285.6 million.
Over the period, the house builder established joint venture The West London Partnership with Places for London, to develop more than 4,000 homes in the coming decade.
It also established the MADE Partnership with Homes England and Lloyds Banking Group, to develop from 1,000 to more than 10,000 homes.
In October last year, the Competition and Markets Authority cleared the £2.5 billion merger between Barratt Developments and Redrow.
Following the acquisition of Redrow, the group has updated its medium term guidance and targets, now expecting to deliver around 22,000 homes per year.
David Thomas, chief executive of Barratt Redrow, plc said: “I am pleased with the performance we have achieved in the first half of the year, continuing to deliver outstanding homes to customers across the country and further building on our unrivalled reputation for quality, service and sustainability.
“The integration of Redrow is progressing well and we are on track to deliver at least £100 million of cost synergies, £10 million ahead of the original target.
“As the economic, political and lending environments have stabilised, there has been some recovery in customer demand and we have seen solid reservation activity since the start of January, building a strong forward sales position.
“Whilst the housing market remains sensitive to the wider economy and mortgage rates and availability, there remains a significant shortage of homes in the UK.
“With our scale and track record of delivery, Barratt Redrow is uniquely well-positioned to meet this underlying demand and drive continued growth for the benefit of all stakeholders.”
Julie Palmer, partner at Begbies Traynor, said: “Positive results in the face of economic headwinds and homebuyer affordability issues mean Barratt Redrow’s results will stand out as it seeks to demonstrate the value a merger can bring to shareholders and consumers.
“With its eyes on Government initiatives to boost the housing supply in the long run, and its ambitions to become one of the most prolific housebuilders, it is making positive sounds.
“However, these ambitions will mean that it will be watched closely by all as the UK looks to its biggest housebuilders to make up for a historic housing short fall.”
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