UK's Barratt Redrow sees stable housing market with better mortgage availability
Group sees 90 mln stg in cost efficiencies from Redrow acquisition
Group private bookings rate up 37% y/y in Aug. 22-Oct. 13 period
Adds share move in paragraph 2, analyst comment in para 8, CEO in para 9
By Aby Jose Koilparambil
Oct 23 (Reuters) -British homebuilder Barratt Redrow BTRW.L said on Wednesday it was beginning to see more stable market conditions with increased mortgage affordability, signalling improved sentiment in the UK's housing sector.
Shares in the FTSE 100 .FTSE company rose as much as 3.8% in morning trade.
British homebuilders have been cautiously optimistic as easing mortgage rates and supportive housing policies from the new Labour government boost recovery hopes in the sector.
"It will take some time for customer confidence to fully recover from the macroeconomic headwinds faced over the past two years," CEO David Thomas said in a statement.
The company, which acquired smaller rival Redrow this year, said the integration is expected to deliver at least 90 million pounds ($116.9 million) of cost efficiencies. Consultations are ongoing on five potential divisional closures announced earlier this week, it added.
Barratt Redrow said the private bookings rate for the combined group jumped about 37% during the Aug. 22 to Oct. 13 period, compared with the corresponding year-ago figures from the two businesses.
It expects to build between 16,600 and 17,200 homes in its fiscal year ending June 30, after incorporating Redrow's order book and performance following the deal's completion in August.
"Sales rates are well ahead of the prior year, and there is a strong land bank ready to be unleashed when the housing market recovers," Hargreaves Lansdown analyst Aarin Chiekrie said in a note.
CEO Thomas told analysts on a call that the group was looking to the UK budget announcement at the end of the month to see whether the government would announce an extension of a stamp duty holiday beyond its expected end in March 2025.
Britain's competition regulator cleared Barratt's 2.52 billion pound all-stock acquisition of Redrow earlier this month.
Midcap housebuilder Bellway last week said homebuyers, unnerved by the possibility of tax increases ahead of the UK budget, are delaying the decision to purchase.
($1 = 0.7700 pounds)
Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Abinaya Vijayaraghavan, Kirsten Donovan
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
