Barratt Redrow announced that it will continue to seek to recover costs through its supply chain after identifying additional expenses of £248 million related to fire safety issues and concrete frame repairs.
In a morning trading update, the developer reported that it faced additional liabilities, including £80 million in costs to address fire safety concerns at a four-flat development completed by the company’s southern region in 2002.
The company also incurred a further £18 million in costs linked to a range of recently identified issues at a large London construction site, including fire safety and the restoration of reinforced concrete frame structures.
Barratt Redrow announced plans to carry out concrete frame remediation works on five Redrow projects mentioned in its half-year results in the spring, estimated to cost around £150 million.
The firm added: “We continue to actively pursue cost recovery from third parties relating to fire safety and concrete frames.”
“In May, the group won a landmark Supreme Court case that clarified the responsibility of companies in the supply chain to rectify defects in developments they were involved with. The ruling clearly showed that all parts of the industry must take responsibility, and that developers should not be penalized for proactive measures aimed at protecting tenants and residents ahead of litigation.”
Additionally, the company said restructuring costs following last year’s Redrow acquisition will amount to £90 million, with £69 million already saved. Barratt Redrow added it is on track to achieve its previously set target — cost synergies of at least £100 million.
The number of homes completed in the year ending June 29 was 16,565 units, 8% fewer than 17,972 homes in the previous year. The net reservation rate was 0.64 per week.
The company forecasts that the volume of homes completed in the financial year 2026 will range between 17,200 and 17,800 units, including around 600 joint venture completions.
Net cash flow at year-end was £772 million, which the company said exceeded expectations. Forward sales reached £2.9 billion, covering 9,835 homes.