Slide 1: HY25 Results Presentation
Fernwood Village Fernwood David Wilson HY25 Results Presentation Half year ended 29 December 2024 12 February 2025
Slide 2: David Thomas, Chief Executive Officer
Centurion Village Leyland Barratt David Thomas Chief Executive Officer Barratt Redrow PLC Half Year 2025 Results 2
Slide 3: Overview – HY25 performance
Overview – HY25 performance • Good operational performance Barratt Barratt Redrow reported • Adjusted PBT reflected lower completion HY25 HY24 Change volumes and purchase price accounting fair value impacts (£50.4m) Total home completions (inc JVs) 6,846 6,171 10.9% • ROCE impacted by decline in pro
Slide 4: Overview – Current trading
Overview – Current trading Barratt & Redrow • Private reservation rate reflects Barratt Redrow Aggregated continuation of more stable market 2HY25 2HY24 conditions to date to date Change • Sales outlet growth expected from Net private reservation rate1 0.60 0.60 - Q4 onwards - of which PRS and Other
Slide 5: Barratt Redrow – priorities through H2 FY25
Barratt Redrow – priorities through H2 FY25 • Sales rate recovery in the half year, reflecting more stable market conditions and improved mortgage availability and affordability • Customer demand remains sensitive to the wider economy • We are now focused on delivering the benefits of Barratt Redrow
Slide 6: Mike Scott, Chief Financial Officer
Arden Fields Bulkington Redrow Mike Scott Chief Financial Officer Barratt Redrow PLC Half Year 2025 Results 6
Slide 7: Summarised performance
Summarised performance Barratt Barratt Redrow Reported £m (unless otherwise stated) HY25 HY24 Change Revenue 2,280.8 1,850.8 23.2% Adjusted gross profit 338.7 295.9 14.5% Adjusted gross margin % 14.9% 16.0% 110 bps Gross profit 338.7 238.5 42.0% Gross margin % 14.9% 12.9% 200 bps Adjusted operating
Slide 8: Understanding our trading performance
Understanding our trading performance Barratt & Redrow Aggregated • Table summarises underlying performance excluding PPA & Both periods exclude purchase price Barratt Redrow accounting policy excluding PPA alignment adjustments £m (unless otherwise stated) HY25 HY24 Change HY24 includes Redrow from
Slide 9: Redrow purchase price allocation
Redrow purchase price allocation Fair value • Two key fair value adjustments plus recognition of intangible assets £m (unless otherwise stated) adjustment • Inventories: Inventories Land and work in progress in development 93.0 £93m land and WIP uplift reflecting value added to sites in progress; La
Slide 10: Adjusted operating margin bridge
Adjusted operating margin bridge 140 bps (50 bps) (210 bps) (150 bps) 60 bps Redrow 9.3% 60 bps Mix / other 8.4% 30 bps Gladman Completed PPA Volume Net inflation adjustments 7.2% impact development provision HY24 HY25 HY25 Adjusted Barratt Reported Adjusted Barratt Redrow Adjusted before PPA adjust
Slide 11: Administrative expenses and adjusted items
Administrative expenses and adjusted items Barratt Barratt Redrow Reported • Adjusted administrative expense increase included: £m HY25 HY24 Average annual salary increase of c. 3% Sundry income (7.4) (9.3) Reduced IT development costs Employee performance pay 32.7 29.6 Redrow administrative expense
Slide 12: Building safety provisions
Building safety provisions • No new provisions across the Barratt portfolio Reinforced • Acquisition of Redrow resulted in recognition of £184.3m of External wall concrete £m systems frames Total provisions, including fair value uplift At 30 June 2024 628.1 102.2 730.3 • Portfolio under review at 29
Slide 13: Cash flow
Cash flow 335.0 (395.6) £m (46.2) Utilised in 14.4 114.0 (55.4) cost of sales Cash Other Net land land spend movements Net cash interest and tax (86.9) Profit from operations Other (46.5) non-cash and working capital Building safety Redrow provision acquisition utilisation net cash impact (21.8) Div
Slide 14: Our land bank and estimated gross margin
Our land bank and estimated gross margin • Blended land bank gross margin estimated at c. 18.3% 29 December 2024 owned land bank plots by gross margin1 Barratt landbank in line with the FY24 year end No. of owned land bank plots Share of owned land bank plots blended gross margin at c. 18.7% 30,000
Slide 15: Guidance for FY25
Guidance for FY25 Completions c. 16,800 – 17,200 total home completions, including c. 600 JV completions Affordable mix expected to be in the high teens Average sales outlet movement (inc JV) c. 9% lower Build cost inflation Broadly flat PPA impacts on adjusted profit from operations c. £80m - £90m
Slide 16: Summary
Summary • Good performance in the first half and increasingly confident in full year delivery • Underpinned by robust demand and stabilised inflation • Focused on delivering cost synergies and increasing outlet numbers • Confidence in delivery underlined: Increased expectations for FY25 adjusted pro
Slide 17: Steven Boyes, Chief Operating Officer
Whittle Gardens Gloucester Barratt Steven Boyes Chief Operating Officer Barratt Redrow PLC Half Year 2025 Results 17
Slide 18: Sales performance
Sales performance Barratt Barratt Redrow Barratt Redrow1 Aggregated2 Reported3 HY25 HY24 Change HY24 • Sales rate recovery in the half year, reflecting Average net private reservations per active outlet per week more stable market conditions and improved Wholly owned 0.60 0.45 33.3% 0.48 mortgage av
Slide 19: Private reservation analysis
Private reservation analysis • We continue to grow and diversify our portfolio of 10% 12% PRS partners • Part-exchange reduction from Barratt reported 15% 15% HY24 reflects limited use within Redrow, PX stock management remains carefully controlled PRS & Other Multi-Unit Sales 10% 12% • First time b
Slide 20: Completions and pricing performance
Completions and pricing performance Barratt Barratt Redrow Barratt Redrow1 Aggregated2 Reported3 HY25 HY24 Change HY24 • Home completion volumes reflected: Home completions (units) Recovery in sales rates, offset by lower Underlying Private 5,090 5,103 0.3% 4,008 order book position and reduced sale
Slide 21: Land bank
Land bank Barratt Barratt Redrow Barratt Redrow Aggregated Reported 29 Dec 30 Jun 30 Jun • Approvals ahead of replacement level in HY25 2024 2024 2024 • Our land bank remains strong at 5.6 years Land bank plots of supply With detailed planning consent 57,653 58,724 40,030 With outline planning conse
Slide 22: Q&A
Kings Gate Abingdon David Wilson Q&A
Slide 23: Appendices
Hop Field Place Hampshire Redrow Appendices Barratt Redrow PLC Half Year 2025 Results 23
Slide 24: Appendices - Index
Appendices - Index PAGE PAGE 25 Definitions 41 Balance sheet 26 Understanding our trading performance in detail 42 Administrative expenses analysis 27 Adjusted operating margin bridge with Redrow detailed 43 Net interest charge analysis 28 HY25 - forward order book 44 Land bank analysis 29 HY25 - fo
Slide 25: Definitions
Definitions Active outlet is a site with at least one home for sale ASP is average selling price Average net cash (debt) is calculated on average daily closing position in period CMA is Competition and Markets Authority Contribution is surplus of revenue for a unit over the direct costs (land and bu
Slide 26: Understanding our trading performance in detail
Understanding our trading performance in detail Barratt Redrow Accounting policy Barratt Redrow Barratt & Redrow HY25 (pre PPA & AP) Barratt Redrow PPA impacts (before PPA) (AP) before PPA & AP Aggregated vs HY24 £m unless stated HY25 HY25 HY25 alignment alignment HY24 (pre PPA & AP) Barratt home co
Slide 27: Adjusted operating margin bridge with Redrow detailed
Adjusted operating margin bridge with Redrow detailed (180 bps) Volume (100 bps) (130 bps) (250 bps) 14.5% impact Net Mix / inflation 10.4% other Accounting 7.9% policy Redrow Standalone alignment 24 Aug to 22 Aug to 22 Aug to 31 Dec 23 29 Dec 24 29 Dec 24 Adjusted Adjusted pre Adjusted post policy
Slide 28: Forward order book
HY25 Forward order book Barratt Redrow 15.0 Barratt Redrow 31 December 2023 29 December 2024 Aggregated Change £m Homes £m Homes £m Homes Private 2,131.3 5,296 1,764.6 4,677 20.8% 13.2% Affordable 735.9 4,384 942.0 5,648 21.9% 22.4% Wholly owned 2,867.2 9,680 2,706.6 10,325 5.9% 6.2% JV 151.2 396 16
Slide 29: Forward sales roll
HY25 Forward sales roll Barratt Redrow Barratt Redrow HY25 HY25 HY25 Private Total 1 Private Total 1 Private Total 30 June 2024 3,386 7,239 1,119 2,187 Reservations 1,152 1,260 435 436 Completions (568) (668) (196) (261) 21 August 2024 5,328 10,193 3,970 7,831 1,358 2,362 Reservations 4,909 6,061 3,
Slide 30: Current trading
Current trading Forward order book Barratt Redrow 15.0 Barratt Redrow 4 February 2024 2 February 2025 Aggregated Change £m Homes £m Homes £m Homes Private 2,459.0 6,126 2,065.3 5,511 19.1% 11.2% Affordable 733.2 4,365 896.6 5,467 18.2% 20.2% Wholly owned 3,192.2 10,491 2,961.9 10,978 7.8% 4.4% JV 15
Slide 31: Current trading
Current trading Forward sales roll Forward sales roll 2HY25 to date 2HY24 Aggregated Change Private Total 1 Private Total 1 Private Total 1 29 December 2024/ 5,296 10,076 4,677 10,778 13.2% 6.5% 31 December 2023 Reservations 1,237 1,295 1,306 1,414 5.3% 8.4% Completions (407) (468) (472) (732) 13.8%
Slide 32: Mortgage affordability and mortgage lending
Mortgage affordability and mortgage lending Halifax Mortgage Affordability Index 1 Average 2-year fixed rate mortgage pricing Mortgage costs as a proportion of earnings 75% and 90% LTVs January 2021 - December 20242 60% 8.0% Standard 75% LTV mortgage product 3 Standard 90% LTV mortgage product 55% H
Slide 33: Private monthly reservation rates
Private monthly reservation rates Sensitivity to available mortgage rates Barratt Redrow monthly private reservation rate vs Mortgage rate available at 85% LTV (5 lender average) Barratt Reported and Barratt Redrow private reservations rate 2-year fixed rate ex PRS & other MUS1 85% LTV - 5-lender av
Slide 34: Site based construction activity
Site based construction activity Average weekly output Average weekly build equivalent unit production (homes) 400 396 384 350 372 365 365 364 363 361 352 350 350 343 341 337 333 331 331 300 324 323 322 317 312 311 306 303 302 299 298 298 296 282 278 250 263 263 257 251 249 240 200 150 100 50 0 Q1 Q
Slide 35: Construction output, customer service and build quality
Construction output, customer service and build quality HY25 HY24 Performance metrics • Average construction output in line with completion delivery Average construction output per week Barratt 252 251 for FY25 and plans to grow completion volumes in FY26 (equivalent homes) Redrow 71 75 • HBF 5 star
Slide 36: Private completions
Private completions Volume and ASP HY25 HY24 Homes ASP Homes ASP Barratt 4,414 £343.7k 4,780 £344.4k Redrow 1 1,095 £481.5k 1,095 £479.4k Scotland Barratt Redrow 5,509 £371.1k 5,875 £369.6k Homes: 649 (HY24: 650) ASP: £317.6k (HY24: £320.4k) Northern Homes: 984 (HY24: 1,191) ASP: £300.6k (HY24: £281
Slide 37: Home completions analysis
Home completions analysis Product type 2% 2% 34% 38% 5 & 6 bedroom homes 4 bedroom homes 3 bedroom homes 1 & 2 bedroom homes 39% 38% Apartments (non-London) Apartments (London) 12% 10% 2% 9% 11% 3% HY25 HY24 Barratt Redrow Barratt Reported Barratt Redrow PLC Half Year 2025 Results 37
Slide 38: Full income statement
Full income statement Barratt Redrow Barratt Reported £m (unless otherwise stated) HY25 HY24 Change Revenue 2,280.8 1,850.8 23.2% Cost of Sales (1,942.1) (1,612.3) 20.5% Gross profit 338.7 238.5 42.0% Gross margin % 14.9% 12.9% 200 bps Analysed as: Adjusted gross profit 338.7 295.9 14.5% Adjusted gr
Slide 39: PPA cost adjustments
PPA cost adjustments Future P&L estimated impacts HY25 FY25E FY26E PPA impact HY25 and estimated impacts FY25 - FY261 PPA estimated impact on operating profits (£47.9m) (£80-90m) (£10-20m) PPA estimated impact on finance charges (£2.5m) c. (£5m) c. (£5m) Total PPA estimated impact at adjusted PBT (£
Slide 40: Calendarised income statement
Calendarised income statement Barratt Redrow1 Barratt Reported 12 months 12 months £m (unless otherwise stated) to Dec 24 to Dec 23 Change Revenue 4,598.2 4,388.3 4.8% Cost of Sales (3,988.5) (3,805.2) 4.8% Gross profit 609.7 583.1 4.6% Gross margin % 13.3% 13.3% - Adjusted gross margin % 15.9% 17.7
Slide 41: Balance sheet
Balance sheet Barratt Redrow Barratt Reported Barratt Reported £m 29 December 2024 30 June 2024 31 December 2023 Goodwill and intangible assets 1,525.5 1,037.4 1,042.6 Investment in jointly controlled entities 170.4 158.5 144.3 Gross land bank 4,879.4 3,233.6 2,979.1 Land creditors (594.6) (472.8) (
Slide 42: Administrative expenses analysis
Administrative expenses analysis Barratt Redrow Barratt Reported £m HY25 FY24 2HY24 HY24 FY23 2HY23 HY23 Sundry income (7.4) (14.8) (5.5) (9.3) (16.7) (9.1) (7.6) Employee performance pay 32.7 73.5 43.9 29.6 44.7 17.3 27.4 Other administrative costs 150.4 255.8 135.2 120.6 242.8 125.7 117.1 Adjusted
Slide 43: Net interest charge analysis
Net interest charge analysis Barratt Redrow Barratt Reported £m HY25 HY24 Interest on deposits, term debt and overdrafts (20.8) (23.0) Interest on private placement notes 2.8 2.8 Utilisation/non-utilisation fees on RCF 1.9 1.8 Other interest (1.3) (0.6) Total cash interest (17.4) (19.0) Land credito
Slide 44: Land bank analysis
Land bank analysis Barratt & Redrow Barratt Redrow Aggregated Barratt Reported 29 December 2024 30 June 2024 31 December 2023 Land bank plots With detailed planning consent 57,653 58,724 43,308 With outline planning consent 18,040 18,378 10,086 With resolution to grant and other 7,943 5,791 1,160 Ow
Slide 45: Land bank evolution
Land bank evolution Reconciling plots and balance sheet land investment Barratt Redrow Barratt Reported HY25 HY24 HY23 Plots £m £k Plots £m £k Plots £m £k Land bank movements Start of period total land bank 3,233.6 3,139.9 3,339.9 Start of period strategic and WBD land (91.3) (96.0) (67.7) Start of
Slide 46: Land creditors payment profile by calendar year
Land creditors payment profile by calendar year £m 594.6 (401.0) (130.3) (63.3) December 2024 2025 2026 2027 & beyond Barratt Redrow PLC Half Year 2025 Results 46
Slide 47: Planning and the UK land market
Planning and the UK land market Savills UK Greenfield Development Land Index1 (LHS) England moving annual planning consents2 and (100 = 2007 peak) net new build home additions3 (RHS) ('000s) 120 Sep 07 Jun 21 Sep 22 360 Sep 24 100.00 335.8 99.5 91.5 100 Jun 09 300 Sep 24 53.3 240.7 80 Jun 09 Jun 15
Slide 48: External benchmarks
External benchmarks 5 Star award for 15 years 111 awards in 2024 Only major national More than any other housebuilder housebuilder to achieve this for 20 consecutive years Gold award for 2024 RI score of 0.12 in 2024 Highest scoring national For 5+ years Barratt has ranked housebuilder first in repo
Slide 49: Investment case summarised
Investment case summarised Shorter Industry- owned leading Multi- A portfolio of land bank customer housing brands channel service sales and distinct house types strength Nationally Industry- diversified leading build quality Making sustainable Leading in living a reality, Strong balance sustainabil
Slide 50: Disclaimer
Disclaimer This document has been prepared by Barratt Redrow plc (the “Company”) solely for use at a presentation in connection with the Company‘s Results Announcement in respect of the half year ended 29 December 2024. For the purposes of this notice, the presentation (the “Presentation”) shall mea
Slide 51: www.barrattredrow.co.uk/investors
Environmental properties of this document This brochure is printed on paper manufactured from 100% Recycled post consumer waste without the use of optical brightening agents (OBA) www.barrattredrow.co.uk/investors