Barratt Redrow has published its first trading update which details the newly-formed company’s plan to close nine divisional offices across the country.
The company said that it expects to save £90million with the merger of the two housebuilders, £33 million of which will come from the divisional office closures. Going forward, Barratt Redrow will operate across 32 divisions.
The trading update also said that the company has set a target of 22,000 homes in the medium term, building on the 16,600 – 17,200 predicted for FY25.
Barratt Redrow said: “The acquisition of Redrow gives us clear opportunities to deliver more homes with greater customer choice over the years ahead. With our ambition to return to 22,000 total home completions in the medium term, increasing revenue is a key operational driver for the group.”
Interim trading figures for the period from July 1 to October 13 2024 saw Barratt’s private reservation increase by almost 32% to 0.62, while Barratt Redrow’s private reservation rate between August 22 and October 13 2024 stood at 0.67, almost 37% above the pro-forma equivalent in FY24.
David Thomas, chief executive of Barratt Redrow, said: “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. 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.”
The statement also outlined the company’s plans to expand through dual and triple branding, (Barratt, Redrow and David Wilson Homes), which could see it create 30 incremental sales outlets by FY27 and 45 by FY28.
