Barratt Redrow jumps 12% after Phoenix backs buyback at 32% tangible book discount
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Barratt Redrow jumps 12% after Phoenix backs buyback at 32% tangible book discount

June 25, 2026
by

LONDON, June 25, 2026, 14:09 BST

  • Shares are up 5.2% at 295.7p, bringing gains over two days to 12.2%
  • Phoenix is asking for a big jump in share buybacks
  • At Thursday’s price, £100 million would get roughly 15% more shares than the FY26 buyback just finished.

Barratt Redrow plc (LON:BTRW) was up 5.2% at 295.7p Thursday afternoon. The two-day rally since Tuesday’s close is 12.2%. Market cap stood at around £4.14 billion. Shares are still down 37.8% from the 52-week high.

FTSE 100 rose 0.85% at 1331 BST, up 1.2% since Tuesday’s close. Barratt’s stock jumped enough over two sessions to outperform the index by about 11 percentage points.

Phoenix Asset Management Partners said in a statement at 1732 GMT Wednesday that it put its case earlier in the day at the London Value Investor Conference. The firm, which has held Barratt shares since 1998, called on the board to “materially increase” buybacks. “At today’s valuation, buying back its own shares is an exceptional opportunity,” Chief Investment Officer Gary Channon said. PR Newswire

Phoenix’s stake dropped under the 5% disclosure mark as of June 1, after sitting at 5.01% on May 29, according to a filing. The exact size of the holding wasn’t detailed in the document.

Barratt wrapped its FY26 buyback, picking up 13.2 million shares in the first tranche at an average of 379p. The cost with fees was £50.4 million. In tranche two, the company bought 16.106 million shares for £50 million. All told, about 29.3 million shares were bought for cancellation.

At 295.7p, £100 million gets around 33.8 million shares, before any costs. That’s about 15% more than Barratt bought in its buyback finished in May. The new amount is about 2.4% of Barratt’s market value on Thursday.

Barratt’s tangible net asset value was 433p a share at Dec. 28. Shares traded Thursday 31.7% under that mark. Phoenix points to that discount as its argument for speeding up buybacks.

Barratt (BTRW) is expecting net cash of £550 million to £650 million at the end of June. That would be 13% to 16% of its current market cap. The builder said the new forecast is due to lower land spending and when it will pay legacy remediation costs. Barratt cut its FY26 land approvals down to 7,000 to 9,000 plots but is sticking with its target of 17,200 to 17,800 home completions. “A disciplined approach to capital allocation” is still the plan, Chief Executive David Thomas said in April. Investegate

Konrad Wysocki

Konrad Wysocki is a senior markets reporter at Bez-kabli.pl, specializing in technology stocks, artificial intelligence and global financial markets. A graduate of the University of Rzeszów, he previously worked in investment research and market analysis. His coverage helps readers understand the key trends, companies and innovations influencing investors worldwide.

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