Redrow stock holds near takeover value as revenue and profit fall

Redrow stock (Redrow plc, ISIN GB0007323586) is being viewed through the lens of its 2024 takeover valuation, while the latest published figures show lower revenue and profit year on year.

Takeover value still frames the share

On 26 February 2024, Redrow investor relations said shareholders had voted in favor of the proposed combination with Barratt Developments, with the deal structured around an agreed value of 233p per Redrow share. That valuation remains the clearest market reference for the company after the transaction process.

The same update said the combination would create a larger UK housebuilder with 22,000 homes and a landbank of more than 80,000 plots, numbers that matter because they define the scale of the merged business. For investors, those figures explain why Redrow is no longer trading as a simple standalone growth story.

Revenue and profit both fell

In its last full-year results, Redrow reported revenue of GBP 1.65 billion for the year ended 30 June 2024, down from GBP 2.23 billion a year earlier. Profit before tax fell to GBP 148.8 million from GBP 395.4 million, a decline of 62.4% year on year.

The company also said home completions dropped to 4,220 from 5,120 in the prior year. That 17.6% fall in completions shows how sharply the housing cycle and transaction timing affected the top line.

Margin pressure was clear

Redrow said operating profit for the year ended 30 June 2024 was GBP 161.8 million, compared with GBP 414.6 million a year earlier. The operating margin therefore narrowed to 9.8% from 18.6%, a drop of 8.8 percentage points.

Net cash at 30 June 2024 stood at GBP 100.2 million, down from GBP 365.0 million at 30 June 2023. That cash decline matters because it shows the business entered the deal process with less balance-sheet flexibility than the prior year.

What the housebuilding model delivered

Redrow’s core product is residential housing, and the company has long focused on family homes and premium detached properties in England and Wales. The latest reported numbers show that the model is sensitive to both mortgage conditions and the pace of legal completions.

That sensitivity is visible in the 2024 revenue and profit decline, even before any post-deal integration effects are considered. The company’s scale, land position, and completion volume are now more relevant than the old standalone growth narrative.

Stock value and context

Redrow plc’s share value is best anchored to the 233p per share deal reference announced during the 2024 transaction process. As a listed-market reference point, that price matters more than a live quote in a post-deal setting.

For context, the latest published operating and cash figures remain the key evidence base: GBP 1.65 billion revenue, GBP 148.8 million profit before tax, and GBP 100.2 million net cash for the year ended 30 June 2024.