Barratt Redrow Lowers 2027 Home Completion Forecast Amid Planning Hurdles
Company Update and Market Context
Reduced Home Completions Target
Sept 16 (Reuters) - Barratt Redrow, Britain's largest homebuilder, trimmed its home completions target for fiscal 2027 on Wednesday, citing planning delays and fewer sales outlet openings.
Impact of Planning Reforms and Government Support
"Whilst recent planning reforms should, in time, boost housing delivery, alone they will not be enough," Barratt Redrow said in a statement, urging the government to support demand, particularly for first-time buyers.
Financial Performance and Strategic Adjustments
Land Spending and Approval Targets
Barratt Redrow has been cutting its land spending and approval targets, anticipating higher costs from rising energy prices linked to the Middle East conflict, while homebuyers remain cautious ahead of October's budget.
Profit Results and Margin Pressures
The company reported adjusted pre-tax profit of £572.8 million for the year ended June 28, ahead of market expectations of £540.30 million, according to LSEG data, though down 7.1% from a year earlier as sales incentives and build cost inflation squeezed margins.
Revised Guidance for 2027
The company said it now expected to deliver between 17,500 and 17,900 homes in the year ending June 2027, down from earlier guidance of 17,700 to 18,200, and lowered its average sales outlet expectation to about 405 from 415.
(Reporting by Ankita Bora and Raechel Thankam Job in Bengaluru; Editing by Subhranshu Sahu)
