DAVY VIEW

Barratt Redrow now expects the average number of sales outlets to be 415, lower than the 430 previously guided (-3.5%). The underlying pricing in the order book is down 1.4%, which will pressure margins. This, however, is offset to some extent by build cost inflation (BCI) expectations of 3-4%, lower than previous company messaging. Overall, we expect to lower our adjusted profit before tax forecast for the FY (currently £458m) by a low-single-digit percentage.