Barratt Redrow PLC (LSE:BTRW), the newly merged housebuilding giant, has announced the closure of nine divisional offices as part of plans to save £90 million in costs.
In a trading update, the FTSE 100-listed builder said the “optimisation of our divisional office structure” will contribute over a third of this cost-saving target.
These cost-saving measures, which include savings from procurement and a trimming down of central and support functions, form part of Barratt’s intention to unlock “synergies” from its £2.5 billion Redrow acquisition completed at the start of this month.
It did not disclose how many jobs are expected to be lost from the office closures.
Barratt said it will provide further details on its cost-saving measures in a half-year trading statement in February, but gave an update on recent trading.
Between 1 July and 13 October, excluding the impact of the Redrow acquisition, Barratt averaged 189 private reservations per week, up from 172 in the same period in 2023.
It operated from an average of 305 sales outlets, down from 369 last year, giving a private reservation rate of 0.62.
The company has a target of building between 16,600 and 17,200 homes across combined Barratt and Redrow operations for the current financial year.