- Forward sales sank
- High price-to-earnings ratio
The news that Barratt Developments (BDEV) is to buy its rival Redrow (RDW) overshadowed the 81 per cent nosedive in pre-tax profit in its results for the six months to the end of last year.
The two things are likely to be connected. With the housebuilding market in a slump due to high interest rates, it makes sense for Barratt and Redrow, which also posted a plunge in profit over the same period, to bundle their resources together. As property author and journalist Peter Bill put it on X (formerly Twitter), "Baby, it’s cold outside, let’s huddle with Redrow".