Barratt Redrow aims for 22,000 homes and £90m cost savings

Barratt Redrow has issued its first trading update as a combined group including details of the integration of the businesses. The group is expecting to make £90 million of savings in bringing the two housebuilders together, with £33 million of the saving coming from the closure of nine divisional offices across the country with activities re-aligned across 32 divisions. Collective consultation on five potential divisional closures was announced this week. In addition, procurement related savings will be targeted at £34 million (38% of the £90 million target). “Synergies will be centred on optimising procurement for Redrow's business whilst working with our supply chain partners to unlock additional procurement savings,” the firm says.

Trading in the period from July 1 2024 to October 13 2024 saw Barratt’s standalone private reservation rate up 31.9% to 0.62 (FY24: 0.47). Barratt Redrow’s private reservation rate from August 22 to October 13 was 0.67, 36.7% ahead of the pro-forma equivalent in FY24 of 0.49.

Total home completions for Barratt Redrow are expected to be between 16,600 and 17,200 for FY25. The firm says: “The acquisition of Redrow gives us clear opportunities to deliver more homes with greater customer choice over the years …