In its first interim results since its £2.5 billion merger in the summer, the housebuilder said its adjusted profit before tax will now be towards £588 million, ahead of the consensus figure of £542m.

For the six months to 29 December 2024, Barratt Redrow recorded a 23% growth in pre-tax profit, finishing the period with £117m, up from £95m year-on-year. The housebuilder’s turnover also increased by 11% to £2.2bn.

The firm also reported that its cost-saving measures were exceeding expectations and was set to save £100m, £10m ahead of the original target. In October 2024, Barratt Redrow announced that nine divisional offices would be closed as part of the merger, with the company operating from 32 divisions going forward.

During the six months, the housebuilder saw house completions rise by 11%, up to 6,846 homes from Barratt’s 6,171 the previous year. However, the aggregated figure built by the two separate housebuilders for the previous half-year stood at 7,777.

In the trading update, Barratt Redrow said that it had updated its medium-term targets, expecting to deliver around 22,000 homes per year, with its operating margin improving to close to 15%. For this full year, the interim results state that the housebuilder expects to build between 16,800 and 17,200 homes.

David Thomas, chief executive of Barratt Redrow, 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 £100m of cost synergies, £10m 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. As a result, we now expect our full-year adjusted profit before tax will be towards the upper end of market expectations.”

“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.”

Alison Condie, Barratt Redrow’s regional managing director for Scotland, 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 £100m of cost synergies, £10m 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. As a result, we now expect our full year adjusted profit before tax will be towards the upper end of market expectations.

“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.”