(Sharecast News) - Barratt Redrow has launched a new share buyback programme as part of a new £400m capital return, following a "solid performance" over the financial year to 28 June, with profits in line with market expectations.
The housebuilder on Wednesday commenced a share repurchase programme of up to £386m, in addition to £14m being paid as an ordinary dividend, in line with its commitment to return 50% of adjusted net income to shareholders.

Boss David Thomas said the company delivered a "solid performance in a challenging market", with full-year adjusted pre-tax profit in line with the company-compiled consensus forecast of £559.5m, up from £488.3m the year before.

"The sector continues to navigate macroeconomic and geopolitical uncertainty, alongside industry headwinds and subdued customer demand, which have weighed on market sentiment," he said.

"However, this means that given our performance and resulting balance sheet strength, deploying capital through an expanded share buyback programme is currently the most effective way to create long-term shareholder value, and we intend to return £400m to shareholders in FY27, primarily through share buybacks."

Total home completions for the year were 17,667, at the upper end of the 17,200 to 17,800 guidance range and ahead of the 17,392 consensus forecast. Further growth is also targeted for the current financial year at 17,700 to 18,200.

The company said it ended the financial year with a strong balance sheet position, with year-end net cash of £772m, in line with last year.

For FY27, based on current market conditions, Barratt Redrow anticipates "minimal house price inflation", with total build cost inflation at 3-4%.

See the latest RNS on Investegate.

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