olivLaw · European equity research
Barratt Redrow plc BTRW.L
United Kingdom · London Stock Exchange · ISIN GB0000811801 · Vertical: Listed companies from United Kingdom
Barratt Redrow plc is one of the largest homebuilders in the United Kingdom, formed by combining Barratt and Redrow. For fiscal 2026 it guides to between 17,200 and 17,800 home completions, while buyer confidence remains fragile and the Redrow integration is under way.
At the close of 05 Nov 2026, Barratt Redrow plc (BTRW.L) stock was 3.31 GBP (+0.98% on the day), with market capitalisation 4.5 bn GBP, P/E 24.9 on diluted EPS of 0.13 GBP over the last 12 months, dividend yield 0.02%, beta 0.81, 52-week range 2.41–4.01 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 56.9
- strong (55–70)
- Bollinger (20, 2)
- 2.90 – 3.44
- in the upper half of the band · %B 0.76 · band width 17.1%
- SMA 50 / 200
- 3.11 / 3.00
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.05 / 0.04
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +7.1% | +0.4% | +6.7 pp | — |
| 3 months | +3.6% | −3.3% | +6.8 pp | — |
| 6 months | +25.7% | +4.0% | +21.8 pp | — |
| Year to date | −13.1% | +8.1% | −21.2 pp | — |
| 1 year | −11.8% | +10.7% | −22.5 pp | +5.8% |
| 3 years | −24.7% | +50.1% | −74.8 pp | +26.3% |
| 5 years | −49.5% | +43.6% | −93.1 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 33 percentile of its own 3-quarter history (min 7.9, median 35.6, max 40.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 5.3 bn | 4.2 bn | 5.6 bn |
| Revenue YoY | unavailable | −21.7% | +33.8% |
| Net income | 530.3 m | 114.1 m | 186.4 m |
| Net income YoY | unavailable | −78.5% | +63.4% |
| Diluted EPS | 0.53 | 0.12 | 0.13 |
| Diluted EPS YoY | unavailable | −77.9% | +14.7% |
| net % | 10.0% | 2.7% | 3.3% |
| Free cash flow | 442.4 m | 89.0 m | 11.2 m |
Balance sheet & financial health
Fiscal year 2025 · 29 Jun 2025
- Cash
- 969.6 m GBP
- Financial debt
- 200.0 m GBP
- Net debt
- -769.6 m GBP
- Equity
- 7.9 bn GBP
- Total assets
- 11.5 bn GBP
- Debt / equity
- 0.03x
- Current ratio
- 4.08x
- ROE
- 2.8%
- ROA
- 1.9%
- FCF margin
- 0.2%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 5.3 bn | 4.2 bn | 5.6 bn | esef· 14 Oct 2025verified |
| Cost of revenue | 4.3 bn | 3.7 bn | 4.8 bn | esef· 14 Oct 2025verified |
| Gross profit | 974.9 m | 509.5 m | 784.8 m | esef· 14 Oct 2025verified |
| Operating income | 707.4 m | 174.7 m | 285.5 m | esef· 14 Oct 2025verified |
| Interest expense | 34.9 m | 53.7 m | 64.6 m | esef· 14 Oct 2025verified |
| Pre-tax income | 705.1 m | 170.5 m | 273.7 m | esef· 14 Oct 2025verified |
| Income tax | 174.8 m | 56.4 m | 87.3 m | esef· 14 Oct 2025verified |
| Net income | 530.3 m | 114.1 m | 186.4 m | esef· 14 Oct 2025verified |
| Diluted EPS | 0.53 | 0.12 | 0.13 | esef· 14 Oct 2025verified |
| Dividend per share | 0.00 | 0.00 | 0.00 | esef· 14 Oct 2025derived |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 1.3 bn | 1.1 bn | 969.6 m | esef· 14 Oct 2025verified |
| Receivables | 182.1 m | 201.9 m | 241.1 m | esef· 14 Oct 2025verified |
| Inventories | 5.2 bn | 5.3 bn | 8.3 bn | esef· 14 Oct 2025verified |
| Current assets | 6.7 bn | 6.6 bn | 9.6 bn | esef· 14 Oct 2025verified |
| Property, plant & equipment, net | 58.1 m | 57.5 m | 86.4 m | esef· 14 Oct 2025verified |
| Goodwill | 852.9 m | 184.5 m | 408.4 m | esef· 14 Oct 2025verified |
| Intangibles (excl. goodwill) | 194.9 m | 852.9 m | 1.2 bn | esef· 14 Oct 2025verified |
| Total assets | 8.0 bn | 7.9 bn | 11.5 bn | esef· 14 Oct 2025verified |
| Short-term debt | 3.4 m | 0 | — | esef· 03 Oct 2024verified |
| Long-term debt | 200.0 m | 200.0 m | 200.0 m | esef· 14 Oct 2025verified |
| Current liabilities | 1.5 bn | 1.4 bn | 2.4 bn | esef· 14 Oct 2025verified |
| Total liabilities | 2.4 bn | 2.4 bn | 3.7 bn | esef· 14 Oct 2025verified |
| Equity | 5.6 bn | 5.4 bn | 7.9 bn | esef· 14 Oct 2025verified |
| Shares outstanding at year end | 996.8 m | 966.9 m | 1.4 bn | esef· 14 Oct 2025derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 465.5 m | 96.2 m | 29.3 m | esef· 14 Oct 2025verified |
| Capex | 23.1 m | 7.2 m | 18.1 m | esef· 14 Oct 2025verified |
| Free cash flow | 442.4 m ≈ | 89.0 m ≈ | 11.2 m ≈ | esef· 14 Oct 2025derived |
| Investing cash flow | 55.4 m | 12.0 m | 195.8 m | esef· 14 Oct 2025verified |
| Financing cash flow | -590.6 m | -308.6 m | -320.8 m | esef· 14 Oct 2025verified |
| Dividends paid | 1.2 m | 500.0 k | 1.1 m | esef· 14 Oct 2025verified |
| Share repurchases | 14.0 m | 23.3 m | 0 | esef· 14 Oct 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 27 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 4.5 bn GBP
Key indicators
Coverage and freshness
The data is older than the freshness threshold.
Score by group
- Quality19
- Returns40
- Balance sheet67
- Valuation8
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Unattractive profile · Score 27/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 3.3% | 21 (vs peers) | 17% |
| Net margin · Quality | 3.3% | 34 (vs peers) | 10% |
| FCF conversion · Quality | 6.0% | 0 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 4.4x | 45 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 4.1x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 24.9x | 11 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 0.2% | 3 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 0.0% | 0 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 9.8% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet67/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality19/100 · 3/3 factors with a value
- Returns40/100 · 2/2 factors with a value
- Valuation8/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
BARRATT REDROW PLC (BTRW.L). Latest full fiscal year: 2025; data up to 2025-06-29.
Figures computed from the financial statements: revenue 5.6 bn GBP in 2025; YoY growth 33.8%; net margin 3.3%; ROE 2.8%.
The estimated value range is 1.29–1.78 GBP per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 1.53 GBP, the price of 3.31 GBP leaves a potential of -53.7% (value / price − 1) and a margin of safety of -116.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 27/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 4.1x
- Payout ratio (FCF): 9.8%
What contradicts it
- ROIC: 3.3%
- FCF conversion: 6.0%
- P/E (TTM): 24.9x
- FCF yield: 0.2%
- Shareholder yield (distributions): 0.0%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BTRW.LBarratt Redrow PLC | 4.5 bn | 24.9 | 2.8% | 3.3% | +33.8% | −16% / −36% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for BTRW.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 2.21 Total return -33% · Per year -33% | 3.89 Total return 18% · Per year 18% | 5.84 Total return 76% · Per year 76% |
| 3 years | 2.63 Total return -21% · Per year -7% | 5.15 Total return 56% · Per year 16% | 8.41 Total return 154% · Per year 36% |
| 5 years | 3.11 Total return -6% · Per year -1% | 6.81 Total return 106% · Per year 16% | 12.11 Total return 266% · Per year 30% |
- Exit P/E± 1.29
- Net margin± 0.90
- Annual revenue growth± 0.67
- Annual dilution± 0.08
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Barratt Redrow plc is one of the largest homebuilders in the United Kingdom, formed by combining Barratt and Redrow. For fiscal 2026 it guides to between 17,200 and 17,800 home completions 1, while buyer confidence remains fragile and the Redrow integration is under way 1.
SWOT
Strengths
- A strong balance sheet, a solid forward sales position and a land base the company is consolidating.
- Integration of Barratt and Redrow is advanced, with cumulative synergy targets set for fiscal 2026.
- A governance and risk framework with dedicated committees and formal control procedures.
Weaknesses
- Reliance on demand that is sensitive to mortgage costs and to buyer confidence, which remains fragile.
- Exposure to building quality and high-rise remediation, which carries significant cost.
- The complexity of combining two companies could create operational and leadership pressure.
Opportunities
- The Government's housebuilding commitment could open up land and planning opportunities.
- Joint ventures could expand completion capacity without a proportional increase in capital.
- Delivering cost synergies could improve margins if integration proceeds as planned.
Threats
- An economic downturn or geopolitical shock could quickly reduce demand and credit availability.
- Regulatory change and government intervention could bring extra costs or penalties.
- Cyber attacks and labour market pressure could disrupt operations and staffing.
Risks
- Political and economic environmenthigh
Macroeconomic changes or geopolitical events could reduce demand and restrict funding, with effects that may materialise quickly 1.
- Land and planninghigh
Planning delays or a shortage of suitable land could limit volume growth and the ability to meet margin targets 1.
- Government regulationmedium
Building and other regulation could lead to penalties, extra costs or reputational damage if not implemented correctly 1.
- High-rise and complex structureshigh
Failure to build or remediate high-rise buildings could cause delays, remediation costs and future liabilities 1.
- Cybersecuritymedium
A cyber attack could affect data, operations and financial transactions, and the risk is considered to be increasing 1.
Investment thesis
What would need to be true (bull case)
- If demand stabilises and the Government housebuilding programme advances, the company could benefit from higher volumes and a consolidated land base 1.
- Delivering Redrow integration synergies could raise margins, while buybacks and the dividend policy could support shareholder returns 1.
- Long-term under-supply of new homes in the United Kingdom could support demand as credit conditions improve 1.
What would break the thesis
- Buyer confidence remains fragile and elevated mortgage rates could limit sales more than expected 1.
- Risks around high-rise buildings and remediation of legacy properties could create unplanned costs if estimates prove inadequate 1.
- Pressure on build costs and labour could compress margins, particularly if volumes rise quickly 1.
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Barratt Redrow plc builds and sells homes in the United Kingdom through regional divisions (North and South) and joint ventures. Its purpose is framed as 'making sustainable living a reality, building strong communities', supported by values such as 'We do it for our customers', 'We do it right', 'We do it together' and 'We make it happen' 1. The company completed the consolidation of Barratt and Redrow and in fiscal 2025 approved the consolidation of trade and assets of BDW Trading and Redrow Homes 1.
The Board meets formally at least seven times a year and includes a non-executive Chair, a Chief Executive, a Chief Financial Officer and independent non-executive directors 1. In fiscal 2025 the Board approved the MADE Partnership joint venture with Lloyds Banking Group and Homes England 1.
Stated priorities include growing volumes, delivering integration synergies and managing capital, including share buybacks and an ordinary dividend cover moving to 2 times adjusted earnings from fiscal 2026 1.
Segments
Housebuilding and sales
The core segment sells completed homes, with a fiscal 2026 target of 17,200 to 17,800 completions including about 600 joint venture completions 1.
Market context
Management describes homebuyer confidence as fragile, reflecting economic and tax uncertainty, with mortgage rates still elevated compared with recent years 1. However, there remains a long-term under-supply of new homes and solid mortgage market competition and availability 1. The Government's commitment to build 1.5 million homes supports the company's plan to expand volumes 1.
Demand depends on housing affordability, the planning framework and second-hand market dynamics, which the company tracks through indicators such as sales rates per outlet and mortgage approvals 1.
Trends
- Government housing ambitiontailwind
The public commitment to build 1.5 million homes could expand sales volumes and support growth plans if planning reforms translate into approvals 1.
- Economic and fiscal uncertaintyheadwind
Buyer confidence remains fragile due to economic and tax uncertainty, which could reduce sales if demand does not recover 1.
- Elevated mortgage ratesmixed
Mortgage rates remain high compared with recent years, limiting affordability for buyers, while mortgage availability is still considered solid 1.
- Labour market pressureheadwind
Higher volumes could put pressure on the labour market, which is why the company raised the risk level for attracting and retaining high-calibre employees 1.
Competitive position
Management does not name competitors in the supplied sources, but the UK housing market is competitive and competition among mortgage lenders is described as solid 1. The company was investigated by the Competition and Markets Authority over information sharing and approved a set of commitments 1.
Its competitive position rests on volumes, the Redrow integration, control of build costs and product quality, which the company monitors through customer satisfaction scores and NHBC assessments 1.
- Other UK housebuilders
The sources do not name specific competitors; competition in the UK housing market is not detailed in the documents provided.
- Mortgage lenders
Competition among mortgage providers supports buyer access to finance, according to management.
- Second-hand housing market
Demand for existing homes can reduce demand for new builds, a risk noted in the report.
- Competition and Markets Authority
Not a competitor; a regulator that investigated the company over information sharing.
News & filings
In the press
- Barratt Redrow H2 Earnings Call HighlightsYahoo Finance — News · 16 Sept 2026 · EN
Annual reports (ESEF)
- Annual report 202514 Oct 2025
- Annual report 202403 Oct 2024
Sources
- [1] Annual report, fiscal year ended 2025-06-29 (ESEF) · SEC / Barratt Redrow plc · 29 Jun 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.