Barratt Redrow Unveils Plans to Boost Shareholder Returns by £400m over Year
The housebuilder plans a £386 million buyback and £14 million in dividends after Phoenix Asset Management Partners pressed for larger returns.
- On Wednesday, Barratt Redrow unveiled plans to boost shareholder returns by £400 million over the year ahead, with shares lifting 4% in morning trading as the housebuilder responds to activist investor pressure.
- Phoenix Asset Management Partners, Barratt's third-largest investor with around 5% stake, had demanded annual buybacks of up to £1 billion and warned it would "escalate" its campaign if no action was taken.
- Outgoing Chief Executive David Thomas stated the group remains on track for underlying pre-tax profits of £559.5 million for the year to June 28, emphasizing "We are focused on further enhancing our cost base efficiency."
- Barratt expects home completions at the higher end of guidance, at 17,662, though it cautioned that house price inflation is set to be "minimal" and build costs could rise by 3% to 4%.
- Thomas will hand over leadership to incoming Chief Executive Dean Banks in September as the firm navigates potential interest rate impacts from the Iran war and works to offset rising inflation through cost-cutting.
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Supermarket Income REIT (SUPR) has raised the £100m it was seeking in yesterday’s placing and retail offer. It will issue 120.5m shares at 83p, which, as the price is below the 87.5p per share of net asset value at 31 December, requires the approval of shareholders at a general meeting on 3 August. If this is gained, the new shares, which increase share capital by around 10%, will start trading on 5 August. The proceeds combined with borrowing w…
Barratt Redrow completions up in “challenging market”
Barratt Redrow completed 17,667 homes in the year to June 28th compared to 16,826 last year. The firm expects to complete 17,700 to 18,200 homes in FY27 from 415 outlets compared to 405 this year. Issuing a trading update today, the firm said that this year’s adjusted profit before tax is expected to be in line with expectations (£559.5 million). The firm’s net private reservation rate was 0.64, just above last year. READ THE FULL ARTICLE
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