Company finds nearly 拢250m of additional work including fire safety and concrete frame fixes

Barratt Redrow has said that it will continue to look to recover money from its supply chain after saying it has found a further 拢248m in costs for fire safety and concrete frame repairs.

In a trading update this morning, the housebuilder said it had been hit with further liabilities which included having to spend 拢80m on fire safety issues at a four building development completed by its Southern region in 2002.

It has also been hit by 拢18m of additional costs 鈥渞elating to a number of newly identified issues at a large development in London鈥� which it said included 鈥漛oth fire safety and reinforced concrete frame design remediation costs鈥�.

david thomas

Barratt Redrow chief executive David Thomas

And it said it was going to carry out remediation works on concrete frames at five Redrow developments 鈥� which it had flagged at its half year results in the spring 鈥� which would cost 拢150m.

The firm added: 鈥淲e continue to actively seek to recover costs from third parties in respect of issues around fire safety and reinforced concrete frames.

鈥淸In May], the group won a landmark Supreme Court case which clarified the responsibility of companies in the supply chain for remediating defects in developments they were involved in. This ruling made it clear that all parts of the industry need to take responsibility and that developers shouldn鈥檛 be penalised for proactively taking action to support leaseholders and residents in advance of litigation.鈥�

>> See also: Willmott Dixon says cladding repair bill on Tesco job has topped 拢50m

Elsewhere, it said that restructuring costs following the Redrow acquisition last year will be 拢90m but had already made 拢69m in cost savings and added it was 鈥渨ell on the way to achieving our previously upgraded cost synergy target of at least 拢100m鈥�.

The number of homes it completed during the year to 29 June was 16,565, an 8% fall from the aggregated comparable of 17,972 in the prior year, while net reservation rates were running at 0.64 a week.

It said that home completions for FY26 would be in a range of 17,200 to 17,800, including around 600 completions from its joint ventures. Net cash at the year-end was 拢772m, which the firm said was ahead of expectations, and forward sales of 拢2.9bn, covering 9,835 homes.

The firm will release its annual results on 17 September.

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