Barratt Redrow has reported a "good operational performance" in the six months to 29 December, following the merger of the two housebuilding firms in August.

In this period, the group delivered 6,846 home completions, with an adjusted profit before tax of £167.1m.

Furthermore, it added that its balance sheet remained "strong", with net cash of £458.9m, following the £170.5m final dividend payment.

Its net private weekly reservation increased by 33% in this period to 0.60, compared to an aggregated performance for Barratt and Redrow in the comparable period.

Chief executive at Barratt Redrow, David Thomas, said: "I am pleased with the performance we have achieved in the first half of the year, continuing to deliver outstanding homes to customers across the country and further building on our unrivalled reputation for quality, service and sustainability. The integration of Redrow is progressing well and we are on track to deliver at least £100m of cost synergies, £10m ahead of the original target.

"As the economic, political and lending environments have stabilised, there has been some recovery in customer demand and we have seen solid reservation activity since the start of January, building a strong forward sales position."

Looking ahead, following Barratt’s acquisition of Redrow, the firm has updated its medium term guidance for the combined group.

It expects to deliver around 22,000 homes per annum in the medium term, with its operating margin "recovering" to around 15%.

Barratt Redrow added that its forward sales as of 2 February were 10,903 homes, at a value of £3.35bn.

It said that while its full year out-turn remains "dependent on how the market evolves through the spring selling season", it expects to deliver between 16,800 and 17,200 in the 2025 financial year.

Investment director at AJ Bell, Russ Mould, concluded: "Barratt Redrow seems to have shaken off the gloom affecting much of its housebuilding peer group – suggesting the scale built through last year’s merger is starting to pay off.

"The company has identified more significant cost savings than expected as it brings the old Barratt Developments and Redrow operations together. It is still early days in the integration process and there are always risks with deals of this scale but investors will be encouraged by what they have seen so far.

"The announcement of a meaningful share buyback signals a degree of confidence from management in the future outlook.

"The company has work to do to get margins and volumes close to its medium-term target. Barratt’s improved profitability as a standalone entity wasn’t matched by Redrow, and this will probably require some help from improved mortgage affordability and manageable levels of build cost inflation."

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