Barratt Redrow has uncovered 131.8 million British pounds in unexpected costs related to building safety issues at properties from its recently acquired rival Redrow.
The British housebuilder said on Wednesday the costs stem from issues with reinforced concrete frame design and construction identified after the acquisition was completed in August 2024.
The company said the amount would be treated as a revision to the acquisition's value.
The disclosure came as Barratt Redrow reported an adjusted pretax profit of 591.6 million British pounds for the year ended June 29, which it said was ahead of market expectations.
Total home completions were 16,565, slightly below its guided range, on revenue of 5.58 billion British pounds.
"We have delivered a solid performance in a tough market, with adjusted profits ahead of expectations despite home completions coming in slightly below our guided range," Chief Executive David Thomas said in a statement.
For the coming year, the company expects to deliver between 17,200 and 17,800 homes, assuming no material change to market conditions.
More from this issuer
Related coverage
Barratt Redrow announced Wednesday that Chief Financial Officer Mike Scott has stepped down with immediate effect, a move that follows the recent disclosure of significant legacy costs from its acquisition of rival Redrow.
Barratt Redrow said home completions rose 7.9% in the first 17 weeks of its financial year, even as its weekly private reservation rate dipped slightly amid challenging market conditions.
Barratt Redrow has identified 150 million British Pounds in legacy property liabilities related to its recently acquired Redrow business, stemming from issues with reinforced concrete frames.