Barratt Redrow PLC (LSE:BTRW) shares responded slightly positively as the housebuilder reported a solid start to its new financial year.
Private reservation rates held steady at 0.57 per site per week despite economic uncertainty ahead of the Budget later this month.
Total completions rose 7.9% to 3,665 homes, and full-year volume guidance of 17,200–17,800 units was maintained.
So far, £80 million of the intended £100 million cost synergies from the integration of Redrow have been made.
"Our FY26 performance remains dependent on normal seasonal trading patterns for the remainder of the financial year and the impact of the upcoming Budget on demand," the company said in the statement ahead of its annual shareholder meeting.
Broker Stifel said the statement showed a "resilience [that] is encouraging given the general caution in the economy ahead of a difficult Budget",
It sees the shares as undervalued at 0.8x book value. "The shares are trading at levels normally seen in recessions, not seen since 2012, when its return on equity was 4% (v 7% now).
"Short-term catalysts are not obvious, but consumers’ balance sheets continue to build and mortgage rates fall, bringing a turning point for the housing market nearer, in our view."