UK's Barratt Redrow misses home completion target, warns of 'fragile' buyer confidence
Britain
's largest homebuilder
Barratt Redrow
on Tuesday missed its annual forecast for home completions and warned confidence among buyers remained "fragile", sending its shares down almost 13%.
The group announced 16,565 home completions for the year ended June 29, below its forecast of 16,800 to 17,200, chiefly due to delays in transferring ownership to international customers and to the private rented sector in
London
.
Completions involve homes that have been built and the official transfer of ownership to the buyer.
London has been a weak spot for Barratt Redrow in the past year as completions and margins have been weaker than in its regional business.
Britain's faltering economy is weighing on consumer confidence and tempering housing demand, overshadowing a gradual decline in interest rates and government incentives that have recently offered some optimism.
The slow roll-out of reforms to enhance safety and modernise the housing sector has also hampered delivery targets for builders, including Barratt Redrow, which expects its average number of sales outlets to be broadly flat in fiscal 2026.
High-end homebuilder
Berkeley
, which has a strong London presence, in June cut its profit expectations for the next two years, blaming market and regulatory pressures.
"Homebuyer confidence remains fragile," Barratt Redrow said in a trading statement, echoing concerns around affordability raised by rivals including Persimmon and Vistry .
While government support could help demand, particularly in high-cost areas like London and South East England, Barratt Redrow is leaning on incentives like topping up deposits to support buyers, CEO David Thomas said during an analyst call.
Shares in the FTSE 100-listed company hit their lowest since October 2022 on Tuesday, and pulled the broader housing index down 4.7%.
Barratt Redrow, formed after the merger of the two eponymous companies last year, said it expected fiscal 2025 adjusted profit before tax and charges to be in line with analysts' consensus forecast of 582.6 million pounds ($783.1 million).
For fiscal 2026, it expects home completions to rise to between 17,200 and 17,800.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
European shares rise on US-Japan trade deal, EU talks in focus
European shares rose on Wednesday, led by automobiles, after U.S. President Donald Trump revived hopes for a trade deal with the EU following an agreement with Japan. The pan-European STOXX 600 index gained nearly 1% to 549.6 points, as of 0715 GMT, following three straight days of declines. Britain's blue-chip FTSE 100 rose for a fifth session to a record high. Explore courses from Top Institutes in Please select course: Select a Course Category Product Management Project Management Data Science Artificial Intelligence Operations Management Digital Marketing Finance Technology Healthcare Cybersecurity Design Thinking Public Policy Leadership Others Data Analytics CXO MCA healthcare others MBA Management PGDM Degree Data Science Skills you'll gain: Product Strategy & Competitive Advantage Tactics Product Development Processes & Market Orientations Product Analytics & Data-Driven Decision Making Agile Development, Design Thinking, & Product Leadership Duration: 40 Weeks IIM Kozhikode Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Product Strategy & Roadmapping User-Centric Product Design Agile Product Development Market Analysis & Product Launch Duration: 24 Weeks Indian School of Business Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Creating Effective Product Roadmap User Research & Translating it to Product Design Key Metrics via Product Analytics Hand-On Projects Using Cutting Edge Tools Duration: 12 Weeks Indian School of Business ISB Product Management Starts on May 14, 2024 Get Details Other regional indexes also traded higher with France's CAC 40 leading the pack with a 1.3% jump. European automobile stocks led the broad-based rally with a 3.4% rise, tracking strength in Asian rivals. Porsche and Mercedes-Benz gained 7.6% and 5.8%, respectively. Trump struck a trade deal with Japan that lowers tariffs on auto imports and spares Tokyo from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans. Live Events The Japan deal included reduced 15% tariffs for auto exports to the U.S., down from 25% before. Meanwhile, the prospects of an EU-U.S. trade agreement improved after Trump said on Tuesday that EU representatives would come for trade negotiations on Wednesday. Among individual stocks, Lonza shares were among the top gainers, rising 5.4% after the Swiss company topped core profit forecast driven by its drug manufacturing business. ASM International pressured technology stocks after the computer chip equipment maker reported second-quarter bookings below market expectations on Tuesday. Its shares fell 7.7%, the most among STOXX 600. SAP fell 3.5% after the German software maker reported a positive second-quarter profit on cost cuts and increased demand but held off on increasing its full-year outlook.
Mint
8 hours ago
- Mint
Australia shares climb as miners, energy stocks rally; Woodside jumps on upbeat results
July 23 (Reuters) - Australian shares rose on Wednesday led by miners and energy stocks, as investors stayed cautious ahead of the looming U.S. tariff deadline, while Woodside Energy climbed over 2% after posting stronger-than-expected second-quarter results. The S&P/ASX 200 index rose 0.4% to 8,708.1 by 0031 GMT. The benchmark ended flat at 8,677.20 points on Tuesday. With an August 1 deadline for sweeping U.S. import tariffs looming, investors await signs of relief, after Washington announced a trade deal with Japan. Australia faces a 10% baseline tariff on most exports to the U.S. Meanwhile, minutes from the Reserve Bank of Australia's July meeting on Tuesday showed a cautious stance in July, with board members deciding to keep the interest rate unchanged against market expectations, opting to wait for more evidence of a sustained slowdown in inflation. Local miners led the charge on the benchmark by rising as much as 2.2%, tracking a rise in iron ore prices. Shares of miners Fortescue were up 2.4%, while BHP and Rio Tinto gained 1.8% and 2.7% respectively. Energy stocks climbed 0.8% due to rising oil prices. Woodside Energy's shares outpaced the broader sub-index, and were up 2.4%. The country's top gas producer reported a stronger-than-expected 8% rise in second-quarter revenue. Gold stocks also rose 2.2%, tracking a surge in bullion prices. Shares of gold miners Northern Star Resources and St Barbara were up 2.6% and 2.4% respectively. Countering gains, the financials sub-index shed 0.2% with shares of National Australia Bank and Commonwealth Bank of Australia down 0.7% each. Information technology sub-index also dropped 0.3%, with Australian-listed shares of Xero down 0.8%. Shares of WiseTech Global fell 0.6%. New Zealand's benchmark S&P/NZX 50 index fell 0.3% to 12,790.74. (Reporting by Roshan Thomas in Bengaluru; Editing by Alan Barona)
Time of India
20 hours ago
- Time of India
From charity to capitalism with conscience, ESG gains ground in Indian healthcare and pharma
New Delhi: As India's healthcare sector races toward a projected USD 596 billion valuation by 2025, a quiet but powerful shift is underway—Environmental, Social, and Governance (ESG) principles are emerging as the next big disruptor. No longer just a corporate buzzword, ESG is now being seen as a critical framework to tackle inequities, attract impact-driven capital , and build a resilient, inclusive healthcare ecosystem. Experts say ESG could be the game-changer India needs to move beyond piecemeal CSR initiatives and government subsidies—offering instead a data-backed, accountability-driven approach to bridging access gaps, especially in rural and underserved regions. Despite its massive scale, healthcare accounts for just six per cent of the total market capitalisation of the top 1,000 NSE-listed firms—highlighting an urgent need for long-term, value-based transformation. With over 7.5 million workers across hospitals, pharmaceuticals, diagnostics, medtech, and biotech, embedding ESG may not just boost investor trust—it could define India's path to becoming a global healthcare leader by 2047. India currently ranks 120 out of 156 countries on the UN Sustainable Development Goals (SDG) Index, reflecting an urgent need to adopt frameworks that move from short-term charity to measurable, long-term impact. In a conversation with ETHealthworld, Amit Bhatia, Founder of Aspire Impact and Aspire Circle, emphasised the growing relevance of ESG in reshaping healthcare outcomes across the country. 'ESG enables us to move from charity to capitalism with conscience . It incentivises healthcare providers to address underserved populations through market-based mechanisms, improving both health outcomes and investment returns,' he said. India's healthcare landscape is marked by deep-rooted inequities, especially in rural and tier 2/3 cities, where critical gaps in infrastructure, affordability, and access remain. According to Bhatia, traditional philanthropy often lacks scale, sustainability, and accountability. ESG frameworks, by contrast, offer structured and quantifiable models backed by 150+ healthcare-specific Key Performance Indicators (KPIs). These KPIs track metrics viz patient safety and care quality, medical waste management, gender equity and workforce inclusion, affordability and last-mile access, digital health adoption and ethical governance and transparency 'Only 25 per cent of Indian companies disclose ESG metrics today. But those that do often enjoy 5 to 20 per cent higher valuation multiples, increased investor trust, and improved brand equity,' Bhatia noted. Unlike one-off donations or government subsidies that risk creating dependency, ESG-driven investments aim to align profitability with purpose. Aspire Impact uses a Dual ESG Ratings & Rankings system that evaluates companies on both risk mitigation and impact potential, helping guide capital towards organisations making a measurable difference—particularly in low-access geographies. Through its evaluation of over 1,000 companies, Aspire has helped develop sector-specific ESG roadmaps tailored to various industries. The healthcare ESG framework, launched in 2022, is designed to support providers operating in underserved regions, where demand for quality, inclusive care is rapidly growing. Bhatia also highlighted how embedding ESG principles into public health initiatives—such as the Ayushman Bharat Digital Health Mission (ABDM)—can significantly enhance transparency, accountability, and scalability. He further called for greater alignment between ESG disclosures and India's regulatory mandates, including the Companies Act and SEBI's ESG reporting requirements. This alignment, he noted, could catalyse widespread adoption of ESG frameworks across both public and private healthcare players. 'The future of healthcare is not just digital or data-driven, it must be value-driven. ESG allows us to quantify our intentions, measure our progress, and attract capital that's both responsible and results-oriented,' Bhatia said. With sustainability and accountability becoming top priorities for investors, ESG adoption in healthcare is no longer optional—it's a strategic imperative. For India to bridge persistent gaps in equity, affordability, and access, ESG provides a clear and actionable pathway to achieving universal healthcare goals while reinforcing national resilience. As India looks ahead to its centenary in 2047, embedding ESG principles into healthcare strategy could become a defining lever—reshaping not just institutions, but also the future of public health and social impact in the country.
