Making sustainable

living a reality, building

strong communities

Annual Report and Accounts 2024

Strategic Report

1 Our purpose

2 Our values

3 Chair’s Statement

5 Investment case

6 Redrow acquisition

8 Our business at a glance

10 Business model

12 Key performance indicators

16 Marketplace

22 Chief Executive’s Statement

39 Expansion of Oregon

40 Building sustainably

45 Non-financialandsustainability

informationstatement

46 Section 172 Statement

50 Stakeholder engagement

58 ChiefFinancialOfficer’sReview

63 Risk management

71 Sustainability-related risks and opportunities

85 Viability Statement

Governance

89 BoardofDirectorsandCompanySecretary

93 Executive Committee

94 Corporate Governance Report

102 Nomination Committee Report

112 Audit and Risk Committee Report

121 Safety, Health and Environment

CommitteeReport

123 Remuneration Report

146 Other statutory disclosures

148 Statement of Directors’ responsibilities

Financial Statements

150 Independent Auditor’s Report

159 Consolidated Income Statement and

StatementofComprehensiveIncome

160 Statement of Changes in Shareholders’

Equity – Group

161 Statement of Changes in Shareholders’

Equity – Company

162 Balance Sheets

163 Cash Flow Statements

165 Notes to the Financial Statements

210 Definitionsofalternative

performance measures and

reconciliation to IFRS (unaudited)

212 Five-year record (unaudited)

214 Glossary

217 Integrated reporting approach

218 Group advisers and Company information

Inside this report

View more online

Read more about our values on page 2

Anson Gardens, Fradley

1Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Our values

We do it for

ourcustomers

We always put our customers first and

do everything we can to help them on

their home ownership journey.

93% of our customers said they

would recommend us to a friend in

the latest annual HBF National New

Homes Customer Satisfaction Survey.

We have a 5-star rating for customer

satisfaction, and are the only major

housebuilder to be awarded this

accolade for 15 years in a row.

We do it right

We always act with honesty and

integrity, and work hard to get our

homes right first time.

The NHBC undertakes independent

inspections at five stages of the

home building process and we

have delivered the lowest rate of

Reportable Items out of all the

major UK housebuilders for the

pastfiveyears.

We do it together

We are committed to nurturing a

diverse workforce that reflects the

communities where we operate,

which is key to developing the next

generation of leaders.

Initiatives such as our dignity and

respect training programme and

balanced recruitment shortlists aim to

give people from all backgrounds the

chance to succeed in the industry.

We make it happen

We are proud of the great legacy we

are creating and are taking the lead

delivering excellence in housebuilding.

Reducing waste drives efficiency

and reduces our impact on the

environment. By introducing dedicated

waste managers and improving our

waste monitoring, we are continuing

to reduce the construction waste

generated by our sites.

93%

of our customers said they would

recommend Barratt to a friend

0.13

Reportable Items in FY24, the lowest

rate out of all major UK housebuilders

employee networks celebrating our

diverse identities and collaborating

towards our shared success

45%

reduction in construction waste

intensity since FY20

Living our values

Whether we are facing day-to-day challenges or looking to the

future, our values guide us on how we behave and how we will

continue to achieve our purpose.

Green space at Drovers Court, Micklefield Ashridge Grange, Wokingham Sales team, Barratt London Site staff at Kingsbrook, Aylesbury

Strategic Report Governance Financial Statements

2 Barratt Developments PLC Annual Report and Accounts 2024

Chair’s Statement

Making a positive

contribution to society by

delivering sustainable homes

It is evident that we have a strong culture and a desire

to ensure colleagues can develop to their full potential

within a diverse, safe and inclusive workplace and we are

fully committed to delivering high-quality homes to our

customers whilst protecting the environment.

Colleagues across the business are passionate and helped

in the development and launch, earlier this year, of our

new purpose: “Making sustainable living a reality, building

strong communities”. Our new purpose is also supported

by refreshed values which reflect the ever-changing needs

of our stakeholders, the environment and our desire to

lead the future of housebuilding. Input was also sought

from external stakeholders to help shape our new purpose

and values.

For more details see pages 1 and 2

Our performance

Barratt has delivered a solid operational performance over the

past 12 months, at the upper end of our expectations against a

tough trading backdrop encompassing political, economic and

interest rate instability. Importantly, we have done so whilst

maintaining our industry-leading quality, customer service

and sustainability performance.

Our balance sheet remains strong, with net cash of

£868.5m, and provides the financial strength and flexibility

to ensure we can manage and deliver the optimal integration

of the Redrow business, whilst maintaining a positive and

proactive approach to organic growth opportunities.

I am incredibly proud of the external recognition we have

received over the past 12 months:

• We were awarded the Home Builders Federation (HBF)

five-star status for the 15th year in a row, making us the

only national housebuilder to have achieved this.

• Our site managers secured 89 NHBC Pride in the Job

awards, again more than any other housebuilder for a

record 20th year.

• We maintained our position as the only UK housebuilder

on the CDP Climate Change A List for Leadership, one of

fewer than 365 companies worldwide.

Sustainability

We have continued to deliver against our Building Sustainably

framework which is designed to drive positive change for

nature, places and people. This is enabling us to drive

innovation, reduce costs and enhance our competitiveness.

Please see pages 40 to 44 for further detail

The housebuilding industry’s impact on climate change

makes it imperative that we continually scrutinise and

challenge the ways in which we operate and reduce our

environmental impact. The successful opening of our new

Oregon Timber Frame manufacturing facility near Derby has

significantly expanded our capacity to build more homes

using timber frame and will help towards meeting the

requirements of the Future Homes Standard and reduce

on-site labour requirements. It will also deliver benefits to

the environment by reducing the embodied carbon used

in build, and through thermal efficiency, reduce emissions

generated when the home is occupied.

More information on our new Oregon factory can be found on page 39

Industry collaboration

I am also pleased that Barratt is playing a leading role in the

Future Homes Hub with David Thomas, our Chief Executive,

chairing the organisation. The Future Homes Hub is enabling

collaboration between Government, housebuilders, supply

chain partners, mortgage providers, valuers and planners to

deliver both the country’s legislated targets to 2050 and our

own carbon emission reduction targets to 2040.

Caroline Silver

Chair

Since taking over as Chair

on 30 June 2023, I have met

many of our stakeholders,

including employees, customers,

shareholders, supply chain

partnersandsub-contractors.

3Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Board changes

Nigel Webb joined the Board as a Non-Executive Director in

October 2023, bringing a wealth of property, construction

and land experience to the Board.

Subject to obtaining CMA clearance of the Redrow acquisition,

Matthew Pratt, Geeta Nanda and Nicky Dulieu will join the

Board in the coming months. Matthew will join as Chief

Executive Officer, Redrow and Group Executive Director. Geeta

and Nicky will join as independent Non-Executive Directors.

For details on the composition and diversity of the Board, please see

page 103

Shareholder returns

The Board paid an interim dividend for FY24 of 4.4 pence

per share (FY23: interim dividend 10.2 pence per share) and

is pleased to recommend a final FY24 dividend of 11.8 pence

per share (FY23: final dividend of 23.5 pence per share) in

line with our dividend policy of maintaining cover at 1.75

times adjusted earnings per share. Subject to shareholder

approval,thefinaldividendwillbepaidon1November2024

to shareholders on the register at the close of business

on 27 September 2024. The total proposed dividend for

FY24, including the interim dividend, is 16.2 pence per

share (FY23: 33.7 pence per share) – lower than last

year reflecting the reduction in adjusted basic earnings

per share.

The Board regularly reviews its capital allocation approach.

With the Redrow acquisition completed, but CMA clearance

outstanding, we will assess the capital requirements for

the enlarged group taking into account current market

conditions, our obligations with respect to building safety

and our desire to be active in the land market. We will

provide an update on our policy along with our first half

results in February 2025.

CMA Market Study and CMA investigation

The CMA completed its Housing Market Study and issued

its final report in February 2024. The CMA drew clear and

fair conclusions on how the planning system has negatively

impacted the housebuilding industry and its detrimental

impact on new housing delivery across the country over

successive decades.

On 26 February 2024, the CMA also launched an

investigation into suspected breaches of competition

law, relating to the exchange of competitively sensitive

information by eight housebuilders, including Barratt and

Redrow. This investigation remains in its early stages and

we continue to co-operate with the CMA.

The future

The housing market faces ongoing challenges. The current

interest rate environment continues to impact mortgage

affordability and the ability of many first-time buyers to

unlock mortgage qualification through deposit savings.

There also remain uncertainties around the speed and

scaleoffutureeconomic,employmentandearningsgrowth,

which will be key determinants on the future direction

of consumer confidence and spending. We welcome the

policy changes proposed by the new UK Government which

suggest a real commitment to unlock the planning system,

drive national targets for housebuilding growth and support

the industry in delivering the homes across all tenures the

country so desperately needs.

The Board recognises that it needs to manage Barratt

through what may be another challenging year for the

market, whilst delivering a smooth, efficient and effective

integration of the Redrow business once CMA clearance

has been obtained. We remain focused on managing the

risksandchallengeswithinourcontrol,whilstensuringwe

are in the best possible position to create long-term value

for all our stakeholders. Our operating disciplines, forward

order book and strong financial position provide us with the

platform to adjust to changes in the operating and political

environment in the year ahead.

Finally, on behalf of the Board, I would like to express

our thanks to all our colleagues, subcontractors and our

supply chain partners for their commitment to the Group,

both over the last year and as we look forward to the

exciting opportunities ahead bringing together the Barratt

and Redrow businesses. I look forward to meeting many

more colleagues from across the enlarged Group in the

coming year.

Caroline Silver

Chair

3 September 2024

Chair’s Statement continued

Better together

We believe the acquisition

ofRedrowplcisbeneficialtoall

our stakeholders and enhances our

investment case.

Aligned on values

We share the same values, centred on delivering

excellent build quality, customer service and leading

theindustry’ssustainabilityjourney.

Addressing a wider market

Through our complementary brands and house type

ranges, we will be able to offer greater customer

choiceanddesignvarietyacrossourdevelopments.

Accelerating delivery

Through our combined land banks and both the depth

and strength of our management teams, we will be

positionedtoaccelerategrowthinnewhousingdelivery.

Read more on pages 6 and 7

We do it together

See more about the benefits of the Combination

atwww.barrattdevelopments.co.uk/

investors/barratt-redrow

Burnmill Grange, Market Harborough

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4 Barratt Developments PLC Annual Report and Accounts 2024

Investment case

The backdrop

The country needs more homes

tobebuilt.Thisisreflectedin

the ambitious target set by the

Government to build 1.5 million

homesoverthenextfiveyears.

However, we recognise that we

are in a challenging period, which

isareflectionoftheimpactof

accumulatedinflationonthecost

of living, discretionary spending

and saving, as well as the ongoing

impact on mortgage interest rates.

These factors have impacted the affordability of housing,

particularly for first-time buyers, but the critical long-term

need for additional housing across the country remains.

We continue to manage these near-term challenges and

through our actions and decisions ensure we emerge a

stronger business, positioned and ready to deliver more

sustainable, high-quality, energy-efficient homes.

Strong balance sheet

andcashgeneration

With the cyclicality of the housebuilding industry, we

maintain clear financial disciplines. We are committed

to maintaining a strong balance sheet with an

operational focus on cash generation and a clearly

defined operating framework.

Read more about our financial performance from page 58

Shorter owned land bank

We run with one of the shortest but most developable

land banks in the industry, minimising capital

employed and accelerating development returns,

thereby creating greater value for our shareholders.

Read more about our land position from page 33

Leading in sustainability

We are determined to be the leading national

sustainable housebuilder and we drive sustainability

through clear plans, delivery, accountability and

measurement.

Read more about our Building Sustainably framework from

page40

Nationally diversified

We operate throughout Great Britain, providing

geographic diversification and the ability to manage

our land buying and development activity relative to

changing regional demand.

See our completions by region on page 9

A portfolio of housing brands

and distinct house types

Our brands, Barratt Homes, David Wilson Homes and, within

the M25, Barratt London have strong customer recognition

and distinct house type ranges, creating greater choices

for our customers. Dual branding on appropriate sites

creates even greater choice and accelerates development.

Read about the choices for our customers more on page 28

Industry-leading buildquality

Our build quality is recognised as “industry-leading”

by independent inspection of our homes throughout

the build process. Our site managers hold a 20-year

record of achieving more “Pride in the Job Awards”

than any other housebuilder.

Read more on our build performance from page 35

Industry-leading

customerservice

We strive to deliver exceptional customer service.

We are the only major housebuilder to be awarded

a five-star rating for customer satisfaction for 15

consecutive years.

Read more about our offer to our customers from page 28

Multi-channel sales strength

Our sales teams promote our reputation for build

quality and customer service to our traditional

homebuyers, as well as our national scale and financial

strength to alternative channels including the private

rental sector and registered social housing providers.

Read more about our sales channel delivery on pages 26 and 27

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Strategic Report Governance Financial Statements

Redrow acquisition

Accelerating growth

On 21 August 2024, the Company acquired the full share

capital of Redrow plc in an all share transaction. In

accordance with standard practice, the Competition

and Markets Authority (the CMA) has issued an Initial

Enforcement Order requiring the Barratt and Redrow

businesses to continue to operate independently until the

CMA has formally accepted the undertakings proposed

by the parties in response to their limited concerns, or

otherwise agrees to integration taking place.

Once approved, the combination of Barratt and Redrow

(“theCombination”)willcreateanexceptionalUK

homebuilder in terms of quality, service and sustainability.

It will bring together three high-quality, complementary

brands – Barratt, David Wilson, and Redrow – offering a

variety of sustainable homes for customers across the UK,

addressing the country’s need for homes.

Barratt and Redrow share a commitment to quality, putting

customers firmly at the heart of everything they do. The

Combination will use the strengths of both companies to

deliver significant benefits to our people, supply chains

andcustomers.

• People – employees will benefit from additional

opportunities for development and from being part of

anindustry-leadinghomebuilder.

• Supply chain – supply chain partners will have greater

visibility and certainty of delivery and benefit from the

acceleration of delivery of homes across the country.

• Customers – customers and communities will benefit

from our ability to deliver more high-quality homes, across

a broader product range, and accelerate the creation of

strong, sustainable communities across the UK.

A uniquely compelling opportunity

The creation of Barratt Redrow is a uniquely compelling

opportunity to:

• bring together complementary offerings to create an

exceptional UK homebuilder;

• create a strong brand portfolio – including Redrow

positioned as its premium brand – offering customers

a wider range of house types and price points as well

as accelerating housing delivery. Barratt has already

successfully executed this strategy through the

acquisition of David Wilson Homes in 2007;

• realise significant cost synergies from procurement

savings and a rationalisation of divisional and central

functions, which will drive a lower combined cost base;

• maintain a robust balance sheet, better protected to

operate through the cycle, and provide a strong platform

from which to deliver improved shareholder returns over

the medium term; and

• deliver significant benefits for all stakeholders.

Redrow

We make it happen

Strategic Report Governance Financial Statements

6 Barratt Developments PLC Annual Report and Accounts 2024

The deal

The Boards of Barratt and Redrow reached agreement in

February 2024 on the terms of a recommended all-share

offer for the combination of Barratt and Redrow. Barratt

acquired the entire issued and to be issued ordinary

share capital of Redrow on 21 August 2024. Each Redrow

shareholder received 1.44 Barratt shares for each Redrow

share they held.

Immediately following completion, Redrow shareholders

held approximately 32.8% of the combined Group

and Barratt shareholders approximately 67.2% of the

combined Group.

Barratt Redrow plc will be an exceptional homebuilder in

terms of quality, service and sustainability that will help

deliver the homes this country needs. The new business will

build on the excellent reputations for quality, service and

sustainability that both Barratt and Redrow have developed.

Key financial information for the

combinedgroup

Barratt and Redrow generated aggregate revenue of

£7.4bn

in FY23, delivering total completions of 22,642

The combined group is expected to benefit from a robust

aggregated balance sheet, building on Barratt and Redrow’s

aggregate net cash position of £874m as at 31 December 2023

providing the combined group flexibility to manage the

business for the long term, resilience through the cycle

andflexibilitytorespondtochangingmarketconditions.

The combined group will continue Barratt’s and Redrow’s

existing practice of prudently managing a robust balance

sheet and maintaining a highly selective approach to land

buying, allowing the combined Group to capitalise on future

land opportunities.

We believe the combined group will achieve pre-tax cost

synergies of at least £90m on an annual run-rate basis by

the end of the third year following completion, of which

approximately 90% should be delivered by the end of the

second year following completion. The one-off costs of

delivering these savings should total approximately £73m,

with approximately 57% incurred in the first year following

completion, approximately 32% incurred in the second year

following completion and the remainder by the end of the

third year following completion. The Combination should

be accretive to Barratt and Redrow’s respective adjusted

earnings per share in the first year after completion

(excluding one-off costs of delivering synergies).

Creating value

throughacquisitions

We have a strong record of growing and investing in

brands that have joined the Group in recent years:

• Since the acquisition of David Wilson Homes In

2007, it has grown into a nationally-recognised

brand, with, improved service and quality metrics,

and increased its share of Group business from 26%

to 34% of Barratt completions.

• We supported Oregon Timber Frame after we

acquired the company in 2019. Together, we have

doubled Oregon Timber Frame’s kit volume while

providing new jobs at development sites and

supported the opening of a new state-of-the-art

factory in Derby last year.

See page 39 for more detail on Oregon

• We acquired Gladman in 2022 and have successfully

integrated Gladman’s land promotion and planning

capabilities into the Barratt Group.

The combined group expects to be able to increase

volumes through a three-brand strategy, with the

potential to accelerate the delivery of homes from

the combined and complementary land pipeline

by introducing the Redrow brand on appropriate

Barratt sites and vice versa. The combined group will

take advantage of the complementary geographical

footprints of Barratt and Redrow, with a total land

pipeline of 92,345 plots as at 31 December 2023

1 The aggregated revenue of £7.4bn reflects the total revenue of Barratt and Redrow during

FY23, being £5.3bn and £2.1bn, respectively, and calculated in accordance with Barratt and

Redrow’s respective accounting policies. The aggregated completions of 22,642 reflects the

total completions of Barratt and Redrow during FY23, being 17,206 and 5,436, respectively.

2 The aggregated net cash position of £874m reflects the total of the net cash positions

of Barratt and Redrow as at 31 December 2023, being £753m and £121m, as stated in the

Barratt HY24 Results and Redrow HY24 Results, respectively, and calculated in accordance

with Barratt and Redrow’s respective accounting policies.

3 The total land pipeline of 92,345 plots reflects the total of the land pipeline positions of

Barratt and Redrow as at 31 December 2023, being 67,780 plots and 24,565 plots, as stated

in the Barratt HY24 Results and Redrow HY24 Results, respectively.

Redrow acquisition continued

“ This is an exciting opportunity to bring together two highly complementary

companies, creating an exceptional homebuilder in terms of quality, service and

sustainability, able to build more of the high-quality homes this country needs.”

David Thomas,

Chief Executive

7Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Our business at a glance

Our purpose

Makingsustainablelivingareality,

buildingstrongcommunities

Our strategic priorities

Drive revenue Optimise

land buying

Control

build activity

Lead

the industry

Our sustainability strategy

Read more on pages 40 to 44

Nature

We preserve and enhance the natural world

by using resources responsibly, building

resilient, low-carbon homes, and by creating

placeswherepeopleandnaturecanthrive.

Places

Wedesignandbuildgreatplacesthatmeet

the highest standards, and that promote

sustainable, healthy and happy living for

ourcustomers.

People

We believe everyone has the right to be

respected and treated fairly at work. We

do the right thing, nurturing diverse talent

and prioritising the health and safety and

wellbeing of our people and partners.

Alignment with the UN Sustainable Development Goals

Read more on page 23 Read more on page 1

Our values

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8 Barratt Developments PLC Annual Report and Accounts 2024

Leading in buildquality

We are determined to be the UK’s leading national sustainable housebuilder,

deliveringthehomesthecountryneeds,whilstleadingtheindustryinbuildquality

andcustomerservice.

Completions by region

Scotland

1,613

2023: 1,951

Central

2,652

2023: 3,189

Five-star

customer

satisfaction

West

1,588

2023: 2,091

London and Southern

2,416

2023: 3,754

East

2,962

2023: 3,400

Northern

2,773

2023: 2,821

Completions by unit type

1 and 2-bedroom homes 13%

3-bedroom homes 38%

4-bedroom homes 34%

5 and 6-bedroom homes 2%

Apartments London 2%

Apartments non-London 11%

Completions by deal type

Traditional private 54%

Part-exchange 11%

Investor 14%

Affordable 21%

Awards and recognition in 2024

Our brands

Climate – A

Water – B

Forests – B

89 NHBC pride

inthejobawards

Our business at a glance continued

9Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Business model

How we buildvalue

What we do

We build a high-quality product which our customers love.

Wedevelophomeswhichminimiseourenvironmentalfootprintandlowerongoingcostsforourcustomers.

Wedeliverreturns,operatingashortownedlandbanktoconvertinvestmentsrapidlytocash.

Our resources

People

We recruit, train and retain

a skilled and committed

workforce. Our people’s

experience supports delivery

of a high-quality product.

Our team does things

togetherandwedoitright.

Land and planning

We operate a short owned

land bank, minimising

the amount of capital

locked up on the balance

sheet in advance of

land development.

This is complemented

by investment into

strategic land and

promotional agreements

toenhancemargin.

Read more onpages 33 and 34

Expertise

Barratt was founded over

60 years ago and has deep

knowledge and experience

of both the different

housing markets in Great

Britain and the different

products that work in

those markets.

Stakeholder

relationships

We build great places

tolive,supported

throughpartnerships

withourstakeholders.

Our strong relationships

with our stakeholders

are critical in developing

the products that our

customers want.

Finances

We hold a robust balance

sheet. This gives us

confidence, irrespective of

market conditions, to deliver

homes into the market

at the right price and to

engage in the land market

with value-accretive bids.

Brands

We invest in developing

and maintaining a portfolio

of complementary brands,

offering a wider choice of

designs and customer price

points to better serve our

customers’ needs. Offering

multi-brand developments,

we can accelerate delivery

of high-quality homes.

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10 Barratt Developments PLC Annual Report and Accounts 2024

Our competitive edge Stakeholder value

Products

We build the homes and

communities that our

customers want to live in.

People

We have an experienced

team that understands

housebuilding.

Wedeliver the best

homes onthe market.

Portfolio of brands

We offer through our

brandportfolio, homes

tofirst-time buyers and

mover-uppers. With the

Redrow acquisition,

thiswill extend to

premiumpurchasers.

Locations

We operate nationally, and

at scale, rapidly converting

our land bank to cash. Our

national footprint means

wecan optimally deploy

ourbrands throughout

Great Britain.

Sustainability

We see sustainability

as a differentiator and

a way to create value.

Customer focus

Our experienced sales teams

deliver exceptional customer

service, resulting in us being

the only major housebuilder to

be awarded a HBF 5 star rating

for customer satisfaction for

15consecutive years.

14,004

new home completions (including joint

ventures)withatotalmarketvalueof£4.1bn

£3.0bn

of gross value added (GVA), the Group’s

contribution to UK economic output

£385.0m

Adjustedprofitbeforetax

1.26

tonnes of market-based CO

e emissions per

100m

completed build area (scope 1 and 2).

Areductionof34%fromour2018benchmark

11,014

supplier and subcontractor companies

supported(includingthroughjointventures)

£318.7m

tax generated by our activities

14,515

hours of employee volunteering

For further detail on the value we create for

stakeholders, please see our socio-economic

footprint: www.barrattdevelopments.co.uk/~/media/

Files/B/Barratt-Developments/sustainability/

fy24-group-socio-economic-footprint.pdf

Business model continued

11Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Key performance indicators

Measuring our progress

HBFfive-starcustomersatisfaction

5 star

2023: 5 star

Land approvals

12,439

2023: (812)

Scope 1 and 2 carbon emissions (tCO

16,458

2023: 24,909

Target

HBF 5 star customer satisfaction.

Status

Achieved

Definition

The percentage of homebuyers who would recommend us to family

and friends taken from the HBF Homebuilder Survey.

Why it’s a KPI

Customer satisfaction is a strategic priority and is fundamental to

our business.

The HBF Homebuilder Survey is an industry recognised independently

measured indicator of our customer service and build quality.

Key metric for assessing performance for Executive

Directors’remuneration.

Link to strategy

Drive revenue

Lead the industry

See more about our performance on page 28

See more about our strategic priorities on page 23

Target

Reduce absolute scope 1 and 2 greenhouse gas emissions by 29.0%

by2025and54.7%by2030from2018levels(2018:32,657

tCO

e).

Status

On track

Definition

Tonnes of greenhouse gas emissions associated with our scope 1 and

market-based scope 2 emissions, which includes energy and fuel use

onoursites,inourofficesandinourcompanyvehicles.

Why it’s a KPI

Monitors the environmental impact of our business activities and our

exposure to climate-related transition risk.

Scope 1 and 2 carbon emissions intensity is a key metric for assessing

performance for Executive Directors’ remuneration.

Link to strategy

Lead the industry

See more about our performance on page 80

Target

Replace plots utilised in year.

Status

Monitor

Definition

The number of plots approved for purchase, less the number

ofapprovalswithdrawn.

Why it’s a KPI

Monitors whether the Group is approving the appropriate

amountoflandforpurchasetosupportfuturebusinessactivity.

Link to strategy

Optimise land buying

See more about our performance on pages 33 to 34

1 2 3

5 star5 star5 star5 star

20232022

20212020

5 star

2024

19,089

18,067

9,441

2023

2022

2021

2020

(812)

12,439

2024

25,074

29,265

21,963

202320222020 2021

24,909

16,458

2024

Non-financial

Strategic Report Governance Financial Statements

12 Barratt Developments PLC Annual Report and Accounts 2024

Waste intensity (tonnes per 100m

)

3.83

2023: 4.34

SHE audit compliance

97%

2023: 96%

Employee engagement score

74.9%

2023: 84.4%

Target

Reduce construction waste intensity (tonnes per 100m

of housebuild

equivalent build area) to 4.54 by 2025.

Status

On track

Definition

Tonnes of waste generated from above ground construction for

every100m

of housebuild equivalent build area.

Why it’s a KPI

Monitorstheefficiencyofoperationsandtheuseofmaterials

intheconstructionprocess.

Key metric for assessing performance for Executive

Directors’remuneration.

This KPI has been changed from legally completed build area to

housebuild equivalent build area to align with remuneration targets.

Link to strategy

Control build activity

See more about our performance on page 37

Target

Exceed 75th percentile score in the engagement survey.

Status

Below target

Definition

The percentage level of satisfaction of our people measured using

anannualindependentlyconductedsurvey.

Why it’s a KPI

Monitors employee engagement and satisfaction, whilst also providing

a forum for view sharing, to ensure we retain and invest in the best

people and focus on their development and success.

Link to strategy

Lead the industry

* No survey completed for 2021.

See more about our response to employee feedback and improvement

inemployee engagement to 78.9% in a follow-up survey, on page 30

Target

Over 94% SHE audit compliance.

Status

Achieved

Definition

The percentage of internal inspections which are compliant with

SHEguidelines.

Why it’s a KPI

Demonstrates compliance with safety standards on our sites.

LeadindicatorhighlightingareasofSHEfocus.

Used as a gateway for assessing performance for Executive

Directors’remuneration.

Link to strategy

Control build activity

See more about our performance on page 24

4 5 6

4.34

4.83

6.29

6.93

20232022

20212020

3.83

2024

97%

79.4%

97%

N/A*

96%

84.2%

2023 20232022 2022

2021 2021

2020 2020

96%

84.4%

97%

74.9%

2024 2024

Non-financial continued

See more about our strategic priorities on page 23

Key performance indicators continued

13Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Key performance indicators continued

Total home completions

14,004

2023: 17,206

Adjusted gross margin/Gross margin

16.5%/12.2%

2023: 21.2%/18.3%

Adjustedprofitbeforetax(£m)/Profitbeforetax(£m)

385.0/170.5

2023: 884.3/705.1

Target

Growth to 21,500 in the medium term.

Status

Monitor

Definition

Legally completed homes during the year, including JV homes

legallycompletedinwhichtheGrouphasaninterest.

Why it’s a KPI

Reflectsactivityandgrowth.

Monitors business capacity.

Target

Achieve minimum 23% adjusted gross margin.

Status

Below target

Definition

Adjustedgrossprofit/grossprofitdividedbytotalrevenue,

expressedasapercentage.

Why it’s a KPI

Keyinternalmetricforassessingsiteprofitability.

Enables consistent comparison of land acquisitions.

Target

Informedbyconsensusatthestartofthefinancialyear.

Status

Achieved

Definition

Adjustedprofitbeforetax/profitbeforetax,includingtheapplicable

shareofprofitsfromJVsandassociates.

Why it’s a KPI

ShowstheprofitabilityoftheGrouprelativetomarketexpectations.

Key metric for assessing performance for Executive

Directors’remuneration.

1 2 3

17,206

17,908

17,234

12,604

20232022

20212020

14,004

2024

18.5%

505.7

23.2%

919.7

24.8% 1,054.8

21.2%

884.3

16.5%

385.0

18.0%

491.8

21.0%

812.2

17.1%

642.3

18.3%

705.1

12.2%

170.5

2023 20232022 2022

2021 2021

2020 2020

2024 2024

Financial

1 In addition to the Group using a variety of statutory performance measures, it also measures performance using alternative performance measures (APMs). Definitions of the APMs

andreconciliationstotheequivalentstatutorymeasuresaredetailedonpages210and211.

Strategic Report Governance Financial Statements

14 Barratt Developments PLC Annual Report and Accounts 2024

Return on capital employed

9.5%

2023: 22.2%

Net cash (£m)

868.5

2023: 1,069.4

Total shareholder return

(20.9)%

2023: 10.6%

Adjusted basic EPS (p)/Basic EPS (p)

28.3/11.8

2023: 67.3/53.2

Target

Minimum 25%.

Status

Below target

Definition

Earnings before amortisation, interest, tax, and

operating adjusting items for the year, divided

by average net assets adjusted for goodwill and

intangibles,tax,netcash,derivativefinancial

instruments and provisions in relation to legacy

properties.

Why it’s a KPI

Ensuresefficientandeffectiveuseofcapital.

Key metric for assessing performance for Executive

Directors’ remuneration.

Target

Year-end net cash.

Status

Achieved

Definition

Cash and cash equivalents, bank overdrafts,

interest-bearing borrowings and prepaid fees.

Why it’s a KPI

Monitors business liquidity, resilience to risk and

ability to take advantage of opportunities, including

investments and land acquisition.

Allows for distributions to shareholders.

Target

To grow total shareholder return against

FTSE companies (those within 50 above and

50 below the Company in the index) and the

housebuilding sector.

Status

Below target

Definition

Measure of the performance of the Group’s share

priceoveraperiodofthreefinancialyears.It

combines share price appreciation and dividends

paid to show the total return to the shareholders

expressed as a percentage.

Why it’s a KPI

Shows the appreciation and income a shareholder

receives from holding each share.

Key metric for assessing performance for Executive

Directors’ remuneration.

Target

Informed by consensus at the start of the

financialyear.

Status

Achieved

Definition

Adjustedprofit/profitfortheyearattributableto

ordinary shareholders divided by the weighted

average number of ordinary shares in issue during

the year, excluding those held by the EBT on which

nodividendispaid.

Why it’s a KPI

Showsprofitattributabletoeachshare.

Key metric for assessing performance for

ExecutiveDirectors’remuneration.

4 5 76

22.2%

1,069.4

10.6%

30.0% 1,138.6

(4.9)%

27.8%

317.4

59.8%

15.5%

308.2

6.1%

2023 2023

2023

2022 2022

20222021 2021 20212020 2020 2020

9.5%

868.5

2024 2024

(20.9)%

2024

40.5

73.5

83.0

67.3

28.3

39.4

64.9

50.6

53.2

11.8

20232022

2021

2020

2024

Financial

continued

1 In addition to the Group using a variety of statutory performance measures, it also measures performance using alternative performance measures (APMs). Definitions of the APMs

andreconciliationstotheequivalentstatutorymeasuresaredetailedonpages210and211.

Key performance indicators continued

15Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Marketplace

The future landscape

The UK economy

The UK slipped back into a technical recession during

the second half of 2023, reflecting the impact of the

cost-of-living crisis and higher borrowing costs for both

businesses and consumers.

Activity during the first half of 2024 showed a slight

improvement, with GDP growth estimated at 0.2% in the

first quarter

and GDP up 0.7% and 1.4% respectively,

year on year, in April and May 2024

. Notwithstanding

an improving second half of FY24, UK economic growth

remains stubbornly anaemic, reflecting in part the

uncertainty generated by the previous Government’s

policy, limited business confidence and the crimped

state of both consumers’ confidence and real household

disposable income.

The projected pace of any future acceleration in the

economy remains lacklustre, with the Office for Budget

Responsibility forecasting GDP growth of just 0.8% in

2024 and 1.9% in 2025 in its Economic and fiscal outlook

in March 2024

. HM Treasury’s July Bank of England

consensus of economic forecasts

implies GDP growth

of0.9%in2024and1.3%in2025.

Land supply, the planning system

andhousing delivery

The delivery of new homes and growth in housebuilding

are linked to the land market and, crucially, the planning

system, which delivers the permissioned land upon which

housebuilding activity relies.

In February 2024, following an extensive study of the

housebuilding industry, the Competition and Markets

Authority (CMA) published its final report

, which concluded

that: “Over the long term, the number of permissions being

given has been insufficient to support housebuilding at the

level required to meet Government targets and measures

ofassessedneed.”

The CMA Report highlighted three key concerns with the

planning system that limit its ability to support the level

ofhousebuildingneeded:

• a lack of predictability;

• the length, cost and complexity of the planning process; and

• insufficient clarity, consistency and strength of local

planning authority targets, objectives and incentives to

meet housing demand.

The CMA concluded that “the nature and operation of the

planning systems is a key driver of the under-delivery of

new housing.” These findings align with the conclusions of

numerous industry reviews and reports commissioned over

the past 20 years, dating from the Barker Review in 2004.

The housebuilding industry’s past success, and current

challenges, with respect to planning and land supply,

arehighlightedinthecharttotheright.

England – net new build home additions (RHS)

England – planning consents (‘000s) – revised series (RHS)

SavillsUKGreenfieldDevelopmentLandPriceIndex(LHS)

Planning and the UK land market

110

100

360

300

240

180

120

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

• the industry’s past recovery in housing output from a low

point of 117,700 homes in 2011 to 219,100 new homes in 2020,

expanding output by more than 86% over this period

;

• growth in annual planning consents, which began

to expand ahead of the plots consumed on new

homes, under planning policies adopted with the

NationalPlanningPolicyFramework(NPPF)from2012;

• the decline in planning consents from the middle of 2021,

following the publication in August 2020 of the “Planning

for the Future” white paper, which created significant

planning policy uncertainty;

• constraints in the supply of consented land have limited

adjustments to broader market land values, despite

a decline in house prices and a significant step up in

housebuilding costs since 2022; and

• this has dramatically reduced the opportunities for the

industry to reinvest back into land at acceptable returns

relative to risk, to support a rapid housebuilding recovery.

The chart highlights the developing crisis in permissioned

land supply and the critical need for the UK Government

to address the sharp decline in planning consents over

the past three years. Early indications from the new

Government on planning are encouraging, but time will tell

if this converts to planning consents.

Strategic Report Governance Financial Statements

16 Barratt Developments PLC Annual Report and Accounts 2024

Land supply, the planning system

andhousing delivery continued

The steady and consistent supply of land within a predictable

planning framework is critical to the housebuilding industry’s

ability to deliver growth in housing output. This planning

framework must deliver the quantity of permissioned land

required to support build activity given:

• the typical timeframe of development sites, which may

bethreetofiveyearsormore;

• uncertainty on when construction activity can commence

on a site, as pre-development clearances are required

from multiple stakeholders after planning permission has

been granted;

• availability of both local labour and building materials, and

the scheduling thereof, to allow site development to begin;

• the frequent delays and extended periods of time taken

by key utility providers to deliver connections of electricity,

gas and water supply as well as sewerage system access;

• the need to develop a consistent ongoing workload,

at a local level, to support both employees and the

sub-contractor labour resources required to sustain the

local industry over the short, medium and long term; and

• the need to ensure build activity is delivered to

demanding quality standards, whilst never compromising

the health and safety of the workforce, customers and

new homeowners, on housing development sites.

Relative to a peak of 335,802

planning consents in the

year to 30 June 2021, a level in line with the previous

Government’s target to deliver more than 300,000 homes

annually by the mid-2020s, just 236,644

new build planning

permissions were approved in England in the year to 31

March 2024, 29.5% below the mid-2021 peak.

Log-jams in the planning system have become increasingly

acute, reflecting differing proposals for national planning

policy reform since August 2020, as well as a lack of consensus

within the previous Government. This stalemate has resulted

in uncertainty for local authorities, housebuilders and other

stakeholders.

The former Government’s decision in December 2023

to make local housing targets “advisory” rather than

“mandatory”, as well as ending the obligation on local

authorities to maintain a rolling five-year land supply, if

they have an up-to-date Local Plan, has compounded the

challenging planning system, allowing 60 local authorities to

stall their local housing delivery plans through FY24

Interventions, with respect to nutrient neutrality, by Natural

England have also created moratoria on housebuilding

across significant areas of the country. In June 2024, more

than 160,000

planning consents have been halted across

the 74 local authority areas impacted by Natural England’s

position on nutrient neutrality, with new housebuilding

effectively blocked and smaller housebuilders facing

business closure unless they can demonstrate adequate

mitigation for recreational, nutrient, or water impacts.

Despite the increasing complexity of planning applications,

the resourcing of both local authority planning departments

and other regulatory bodies with a role in planning remains

an issue and has failed to match growing planning demands.

Whilst the Government has introduced increases in planning

fees, these changes are not delivering additional planning

capacity and capabilities.

These issues have perpetuated a continuing decline in

planning consents which, in the first quarter of calendar

2024, declined by 13.3% to 53,862 compared with the 62,137

consents granted in the first quarter of 2023.

The recent announcements by the Secretary of State

for Housing, Communities and Local Government are

encouraging, not least the reintroduction of mandatory

housing targets. We will continue to watch the new

Government’s housing policy with interest.

Our solutions to unlock the poor state of the planning

system centre on five key changes, looking to the future:

• the re-introduction of centrally set, mandated

housing targets;

• the re-introduction and strengthening of the five-year

housing land supply requirements for local planning

authorities;

• the re-introduction of mandatory Local Plan requirement

and faster creation of Local Plans;

• the ring-fencing of planning fees for planning

departments to drive greater levels of financial

resourcing; and

• a full review of the involvement, role and remit

ofstatutoryconsultees.

Read about our land position on pages 33 and 34

Marketplace continued

17Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Building materials

Over the past five years, the housebuilding industry

has experienced very significant inflation in the cost

of materials. The next chart highlights the significant

escalation in housebuilding materials costs since FY19,

with a cumulative increase of around 36%

over the five

years through FY24 and almost 30% over the past three

years to FY24. Commodity cost inflation was driven initially

by COVID-19 dislocations in the supply chain, and then

a dramatic increase in energy costs, a significant cost

component in the manufacture and transportation of many

building materials, triggered by the conflict in Ukraine.

The inflationary impact of these “spot” costs for housebuilding

materials is reflected in our income statement on a lagging

basis, as the homes we build move through to completion

and sale to our customers (see page 58 in the CFO Review

for our cost inflation experienced in FY24).

But, as can be seen from the chart, building material cost

inflation slowed dramatically during FY24, with building

materials costs deflating during the first half of the year,

before showing slight inflation during the second half.

Reflecting our work in progress and current supply terms,

we anticipate building material costs will be slightly

deflationary in FY25.

Marketplace continued

Building materials for housing

140

130

120

110

100

30%

25%

20%

15%

10%

(5%)

FY19 FY20 FY21 FY22 FY23 FY24

3.8%

0.0%

4.5%

8.9%

19.6%

0.0%

Annual change in New Housing Construction Material Price Index (RHS)

New Housing Construction Material Price Index (LHS)

100.0 100.0

104.5

125.0

136.1

136.0

Housing delivery

New build housing additions in England were 212,570 during

the year to 31 March 2023, growth of 0.4% on the 211,670

added in the year to 31 March 2022. As a result, new home

additions remained 3% below the 219,120 homes completed

in the year to 31 March 2020

. Net new build additions for

the year to 31 March 2024 are likely to register a decline

when data is released in late 2024. This decline will reflect

the material changes in mortgage affordability for all

homebuyers requiring a mortgage, as well as the absence of

homebuyer support since the end of Help to Buy, which has

compounded affordability challenges for first-time buyers.

After peaking in summer 2022, house prices reduced

through FY23 and firmed slightly in FY24 (in nominal if

notrealterms).Overthe12monthsto30June2024,the

average UK house price increased by 1.5% according to

the Nationwide Building Society and by 1.6% according

to Halifax.

The housing shortage is a critical issue for the UK economy,

its competitiveness and the economic health and wellbeing

of a growing proportion of the UK population.

The combination of new household formation, a sharp

increase in inward migration and existing rental households

being stymied from moves into home ownership through

mortgage affordability and qualification constraints, is

funnelling a greater proportion of incremental housing

demand to the rental sector, creating continued inflationary

pressure on rental costs.

According to the HomeLet Rental Index, the average household

rent increased by 5.7% over the year to 30 June 2024, with

all regions of the UK experiencing continuing rent cost

increases. Based on HomeLet Rental Index data, rents have

increasedby29.0%overthepastthreeyearstoJune2024

and, without a significant and sustained reduction in mortgage

interest rates, rental demand looks set to outstrip supply,

as potential homebuyers remain locked out of moving into

home ownership.

What this means and how we

areprepared

Key determinants of future housebuilding materials

pricing will be movements in energy costs, global

commodity demand and housebuilding activity levels,

as well as the supply chain’s capacity and willingness

to either re-open capacity or invest in new production.

We engage with our supply chain partners to understand

their costs and supply chain sensitivities, and to drive

efficiencies and negotiate supply terms that recognise

the economic impacts across the value chain. We also

engage with our suppliers around our future plans in

support of housebuilding growth and the innovation

required to meet future regulatory requirements.

Read more about supplier engagement on page 56

Strategic Report Governance Financial Statements

18 Barratt Developments PLC Annual Report and Accounts 2024

Workforce challenges

The construction of our homes relies on our direct and sub-

contractor workforce. However, an ageing workforce and

alternative, less physically demanding, career opportunities

are limiting new entrants. As a result, the industry faces

labour cost pressures and people employed in construction

have seen significant wage growth. Average wage growth

has equated to 19.0%

over the last five years to May 2024

and 15.1% over the last three years from FY21 to May 2024

(see graph below).

Labour cost inflation has been driven by both the

wider cost-of-living crisis, limitations on access to

construction workers from outside the UK, the ability

of certain tradespeople to move between the new build

and home repair and improvement market to meet the

post-COVID-19 uptick in homeowner spending, and the

limited number of people entering the wider construction

and housebuilding industry.

What this means and how we

areprepared

Reflecting labour costs capitalised into work in

progress and ongoing trade-related inflationary

pressures, we anticipate labour build cost inflation

will be a continuing feature in FY25.

In the future, labour cost inflation will be determined

by the speed and scale of recovery in housebuilding

activity, the industry’s success in attracting a larger

workforce and the wider economic inflationary backdrop.

We are placing increasing emphasis on promoting the

career advantages and opportunities in housebuilding

to attract young people to the industry. We are also

increasingly adopting modern methods of construction

(MMC), most notably through our increasing adoption

of timber frame for the homes we build, reducing the

demand for on-site construction labour.

Read more about our new Oregon factory on page 39

120

115

110

105

100

FY19 FY20 FY21 FY22 FY23 FY24

4.5%

0.2%

3.2%

5.0%

5.7%

3.6%

100.0 100.2

103.4

109.3

114.8

119.0

Labour costs

Annual change in average weekly construction index earnings (%) (RHS)

Construction average earnings index (FY19 = 100) (LHS)

Jamie Fox, Senior Site Manager for David Wilson Homes

Marketplace continued

19Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Marketplace continued

Nominal wage growth remains positive and ahead of

inflation, which should impact positively on house price

affordability. With inflation returning to 2% in June 2024

and base rates being lowered by 25 basis points to 5%

in August, the mortgage market is starting to respond

positively, giving customers some respite from high

borrowing costs.

Mortgage rates

Jun

Dec

Jun

Dec

Jun

Dec

Jun

Dec

Jun

Dec

Jun

Average mortgage interest rate – all new mortgages

Two-yearfixedmortgageinterestrateat75%LTV

The Halifax Mortgage Affordability Index combines the

prevailing available mortgage interest rate on new advances

with the Halifax House Price Index and monthly average

take home pay. Notably, the purchase of a new home in the

first quarter of 2024 equated to 43.1% of average after tax

income, still significantly above the long-term average at

33.1% (see chart below).

Affordability

60%

55%

50%

45%

40%

35%

30%

25%

20%

HalifaxAffordabilityIndex

AverageAffordabilityIndex(1985–2023)

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

The mortgage market and

housingaffordability

Movements in mortgage interest rates over the last

five years, specifically two-year fixed rates at 75% loan

to value

, and the average actual mortgage rate on all

new monthly mortgage advances

are included in the

following chart.

Visible from the chart is the benign interest rate backdrop

through to November 2021, with the actual interest rate on

mortgage advances drawn at between 1.5% and 2.0% over this

period. There then followed the period of steep mortgage

rates increases which, despite the volatility in two-year rates

available from November 2022, saw the average interest rate

on UK mortgage advances continue rising through to November

2023. Only since December 2023 has the average rate on new

advances eased lower, to 4.84% in June 2024.

5 star for fifteen years in a row

93% of our customers said they would recommend us to

a friend in the latest annual Home Builders Federation

(HBF) National New Homes Customer Satisfaction Survey.

We have a 5-star rating for customer satisfaction, and

are the only major housebuilder to be awarded this

accoladeforfifteenyearsinarow.

The HBF New Homes Survey is completed by around

50,000 people who have recently bought a new

build home. The simple 1 to 5 star rating system was

developed to give customers an easy-to-view ranking of

which housebuilders have the most satisfied customers.

Read about the HBF New Homes survey online:

www.hbf.co.uk/policy/customer-satisfaction-survey/results

We do it for our customers

The Chamund family outside of their home at the Thorpebury in the Limes development

Strategic Report Governance Financial Statements

20 Barratt Developments PLC Annual Report and Accounts 2024

Regulatory changes in the year

Biodiversity net gain

Biodiversity net gain (BNG) legislation, introduced in

the Environment Act 2021, came into legislative effect

on12February2024.Thisrequiresallnewplanning

permissions to deliver at least 10% biodiversity net gain

in England, excepting selected smaller sites for which

therequirementwasdelayeduntilApril2024.

What this means and how we are prepared

Inherent in the legislation is an approach to development

whereby biodiversity should be left in a measurably better

state than if the development had not taken place, with

this improvement set at a minimum 10%.

We consider BNG at each stage of our land buying and

planning process, from the best design configuration for

a development, to the integration of open green and blue

space, along with the positioning of site infrastructure,

so as to achieve optimal planning, biodiversity and land

viability outcomes.

Reflecting our commitment to sustainable development

and to ensure we had the necessary skills and disciplines

in place, we committed to ensuring all new development

designs submitted for planning from January 2023 would

identify a minimum BNG of 10%, 12 months ahead of the

legislation coming into force.

All of our sites submitting their first principle planning

application since January 2023 have biodiversity plans

in place, demonstrating a minimum BNG of at least 10%.

Wehaveachievedthisthrough:

• avoiding development impact on the areas of greatest

biodiversity value;

• minimising the environmental impacts of our

development operations; and

• both enhancing existing and creating new habitats on

ourdevelopments.

When Barratt secures planning approval on a site, the

landowner and local planning authority can be assured

that the ecological value of the land will be increased,

creating a legacy of which all stakeholders can be proud.

Future regulatory changes

Future Homes Standard

The Future Homes Standard (FHS) encompasses new

regulations around the energy efficiency and the emissions

created by new homes. The government has completed

a consultation in which we were an active participant,

on24March2024.

The FHS requires new homes to produce between 75% and

80% less carbon emissions than homes built to standards

applicable through to June 2022. Homes built under FHS

will be essentially “zero carbon ready” meaning no further

work is needed to ensure these homes are net zero once

the electricity grid has fully decarbonised.

The Future Homes and Building Standards legislation

isexpectedtobelaidbeforeParliamentduring2024,

witheitherasix-monthortwelve-monthperiodbefore

thelegislationwillcomeintoforce,followedbya

twelve-month transitional period.

Marketplace continued

What this means and how we

areprepared

The FHS involves changes in building fabric, the

adoption of low-carbon heating and the use of

additional technologies including photovoltaics, smart

meters and other developing technologies. Our Group

Design and Technical team is leading the development

and testing of materials and products that we will

use to deliver the house types and build solutions to

meet the FHS requirements. Through a combination

of research projects encompassing the Zed House,

eHome2 and live development trials, the team is

creating optimal solutions to meet this new standard.

Sources and references

1 ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpfirstquarterlyestimateuk/latest

2 ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/may2024

3 obr.uk/efo/economic-and-fiscal-outlook-march-2024/

4 assets.publishing.service.gov.uk/media/66969d95fc8e12ac3edafde9/Forecasts_for_the_UK_

Economy_-_July_Cover.pdf

5 assets.publishing.service.gov.uk/media/65d8baed6efa83001ddcc5cd/Housebuilding_market_

study_final_report.pdf

6 gov.uk/government/statistics/housing-supply-net-additional-dwellings-england-2022-

to-2023/housing-supply-net-additional-dwellings-england-2022-to-2023

7 hbf.co.uk/documents/13634/HPL_REPORT_2024_Q1.pdf

8 hbf.co.uk/news/councils-spend-50-million-opposing-development-of-new-homes/

9 hbf.co.uk/documents/13626/HBF_Election_Manifesto_2024__For_Publishing.pdf

10 gov.uk/government/statistics/building-materials-and-components-statistics-july-2024

11 ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/datasets/

averageweeklyearningsbyindustryearn03

12 bankofengland.co.uk/boeapps/database/fromshowcolumns.asp?Travel=NIxSUx&FromSeries=1

&ToSeries=50&DAT=RNG&FD=1&FM=Jan&FY=2014&TD=7&TM=Aug&TY=2024&FNY=&CSVF=TT&ht

ml.x=166&html.y=46&C=EOT&Filter=N

13 bankofengland.co.uk/boeapps/database/fromshowcolumns.asp?Travel=NIxSUx&FromSeries=1

&ToSeries=50&DAT=RNG&FD=1&FM=Jan&FY=2014&TD=7&TM=Aug&TY=2024&FNY=&CSVF=TT&ht

ml.x=128&html.y=46&C=IPF&Filter=N

Pollination education station at Ersham Park, Hailsham

21Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Chief Executive’s Statement

Building for the future

Introduction

The past year has proved challenging for both the housebuilding

industry and homebuyers, with cost-of-living pressures,

much higher mortgage rates and limited consumer confidence

having a negative impact on housing market activity. Against

this backdrop, we have remained focused on delivering

high-quality, energy-efficient and sustainable homes across

the country. We have driven revenue to support our business

as well as our supply chain partners to position us to meet

the growing shortfall in new homes supply. We have been

rigorous in controlling our build activity, managing our cost

base and being highly selective in our land buying, whilst

ensuring we continue to lead the industry through our

unwavering commitment to build quality, customer service,

social responsibility and sustainability.

We also launched our new purpose during the year which

anchored around sustainability and building strong communities.

Our new values are focused on our customers, on doing it

right and doing it together, and making things happen. This

framework formalises the culture and principles which have

driven our success to date.

The acquisition of Redrow

Against this challenging backdrop, we have proactively

considered opportunities to strengthen our business and

give us an even stronger platform from which to deliver

sustainable growth and meet housing needs throughout

Great Britain. This process culminated in the announcement

in February 2024 of the proposed acquisition of Redrow

plc, which completed on 21 August 2024. We are working

with the CMA to address the findings of its Phase 1

competition review which is expected to be complete by

mid-October 2024. We are excited about the opportunities

for the combined group, which creates an exceptional UK

housebuilder with strong quality, customer service and

sustainability credentials.

More details on the Redrow acquisition and the benefits of the new

entity are on pages 6 and 7

David Thomas

Chief Executive

In this section

Performance summary on pages 23 and 24

Responsible development on page 24

Charitable giving and the Barratt Foundation on pages 25 and 26

Operational review on pages 26 and 27

Our customers on pages 28 and 29

Our people on pages 30 to 32

Our land position on pages 33 and 34

Our build performance on pages 35 to 37

Current trading and outlook on page 38

We delivered a solid

operating performance

inFY24,supportedbythe

commitment,flexibility

and determination of our

employees, sub-contractors

and supply chain partners.

Strategic Report Governance Financial Statements

22 Barratt Developments PLC Annual Report and Accounts 2024

Performance summary

Our strategic priorities supported our solid operational and

financial performance during FY24, protected our balance

sheet and our strong financial position, and strengthened

our credentials with our customers, building materials

suppliers, landowners and wider stakeholders.

We delivered a solid operating performance in FY24,

at the upper end of our expectations, supported by

the commitment, flexibility and determination of our

employees, sub-contractors and supply chain partners,

including:

• Total home completions of 14,004 (FY23: 17,206).

• 16.5% adjusted gross margin (FY23: 21.2%) and adjusted

gross profit of £689.0m (FY23: £1,130.4m). The reduction

in adjusted gross profit reflected:

• stabilisation of customer demand at lower levels;

• softening house prices;

• ongoing, but moderating, build cost inflation; and

• the operational gearing impact of lower home completions.

• The impact of adjusting items, which reflected legacy

property costs associated with building safety-related

remediation activities resulted in a reported gross profit

of £509.5m (FY23: £974.9m) and a reported gross margin

of 12.2% (FY23: 18.3%).

• Adjusted profit before tax of £385.0m (FY23: £884.3m).

• Reported profit before tax, after deducting adjusting

items, of £170.5m (FY23: £705.1m).

• Maintained balance sheet strength with year-end net cash

of £868.5m (FY23: £1,069.4m) after dividend payments of

£270.6m (FY23: £360.0m), legacy property related cash

expenditure of £91.5m (FY23: £32.9m) and a £33.9m

reduction in land creditors (FY23: £226.9m reduction).

• ROCE reduced to 9.5% (FY23: 22.2%), reflecting reduced

profitability.

Drive revenue

Driving revenue through the targeted use of incentives

for private purchasers and increased sales into the

privaterentedandsocialhousingsectors

FY24 progress

• Price deflation slowed on our underlying private home

reservations, from 5.6% in H1 to 2.7% in H2.

• Private rented sector home completions increased by

306.2% to 1,048 homes (FY23: 258 homes).

• Multi-unit sales, including those to registered providers,

increased by 46.9% to 767 homes (FY23: 522 homes).

Control build activity

Controllingbuildactivityandmanagingourcosts

FY24 progress

• We aligned our site-based construction activity to lower

reservations, with an average of 257 equivalent homes

(including JVs) constructed each week in FY24, 20.2% below

the 322 average equivalent homes, built weekly, in FY23.

• We reduced our headcount by a cumulative 12% through to

30 June 2024 from 30 September 2022, delivered through

our ongoing recruitment freeze. This compared with a 6%

cumulative reduction from 30 September 2022 through to

30 June 2023.

Optimise land buying

Maintainingourhighlyselectiveapproachtolandbuying

FY24 progress

• We approved 58 net site additions, equating to 12,439 plots in

the year with activity weighted to the second half of the year.

• We continued to rigorously apply our long-standing hurdle

requirements for new land investment, at a minimum gross

margin of 23% and ROCE of 25%.

• Through our long-standing relationships, and industry-leading

reputation, we have concluded important deals with both

public and private landowners, which will deliver significant

development pipelines over the coming years.

Lead the industry

Leadingtheindustryaroundcustomerservice,build

quality,socialresponsibilityandsustainability

FY24 progress

• We maintained our five-star HBF customer satisfaction status

with the latest rolling annual recommend score of 93%, the

highest score for UK national housebuilders.

• We also maintained our industry leadership position among

the major UK housebuilders, registering the lowest NHBC

Reportable Items per inspection at 0.13 through FY24

(FY23: 0.16).

• The Barratt Foundation reached a significant milestone,

delivering more than £10m of funding for local and national

charities since its launch in 2021.

• We were recognised, once again, as the leading national

sustainable housebuilder by NextGeneration and received their

Gold Award for the eighth consecutive year.

Strategic priorities

Anticipating a challenging backdrop, we set four strategic priorities in summer 2023,

which supported our performance through FY24.

Chief Executive’s Statement continued

23Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Chief Executive’s Statement continued

Responsible development

Keeping people safe

Our first priority is always to provide a safe working

environment for all of our employees and sub-contractors,

and we are committed to achieving the highest industry

health and safety standards.

We were deeply saddened by the tragic accidental death

of a sub-contractor at one of our sites in November 2023.

Further details can be found in the Safety, Health and

Environment Committee Report on page 121.

During FY24, despite concerted campaigns to raise health

and safety issues, our injury incidence rate increased to 302

(FY23: 289) per 100,000 workers whilst we improved our

SHE audit compliance to 97% (FY23: 96%).

We remain focused on improving our site-based processes

and procedures, challenging unsafe behaviours and building

on our health and safety performance through on-site

induction training, safety awareness for all personnel and

developing our site managers’ vigilance to health and safety

risks on site.

Fire safety and external wall systems

We continue to make progress with the assessment and

remediation of buildings covered under the Building Safety

Self-Remediation Terms and Contract, to which the Group

became a signatory on 13 March 2023.

Around 53% of our portfolio under review has been

assessed under the Fire Risk Assessment of External Walls

(FRAEW) and has an appropriate PAS 9980 assessment

in place. Through inspections and testing in FY24, we

identified a further 26 buildings requiring potential remedial

works (FY23: 65 buildings) and 42 buildings were either

successfully remediated or were assessed as not requiring

remediation (FY23: 10 buildings). As a result, at 30 June 2024,

we have an ongoing portfolio of 262 buildings across 92

developments under review (30 June 2023: 278 buildings

across 89 developments).

Reflecting our commitment to dealing with these buildings

as quickly and efficiently as possible, of the 262 buildings

under review at 30 June 2024, 137 were in progress at

tender, site mobilisation or remediation stage.

In the first half of the year, we recognised a charge of

£56.4m to reflect higher than expected tender returns

and cost increases on buildings being remediated by the

Building Safety Fund. These generally related to buildings

with atypical features and costs in relation to the remaining

buildings are broadly in line with our initial estimates.

During the second half of the year, we recognised a charge

of £64.5m, following an initial £5.0m for fire testing

recognised in the first half, in relation to a development

of three buildings which we had previously disclosed as

a contingent liability. We have been unable to develop a

testing methodology under the FRAEW for these buildings

due to the unique unitised wall system in place, which we

now assess will need to be replaced. The provision is based

on the current expected method of remediation, designed

to minimise disruption to residents, though due to the

unique nature of the buildings, this estimate may vary as

the process is further developed.

After incorporating the additional adjusted item charges

for fire safety and external wall systems of £125.9m, as

well as with remediation costs incurred during FY24 and

time discounting adjustments, the provision in relation to

fire safety and external wall systems totalled £628.1m at

30 June 2024 (30 June 2023: £535.9m). This reflects our

current best estimate of the extent and future costs of

remediation work required and we will continue to review

these estimates as we gather data and complete the

remediation of buildings within our portfolio.

We signed the Scottish Government’s Safer Building Accord

on 31 May 2023. The process to agree a legally binding,

long-form contract to give effect to the Principles of the

Accord remains in progress with Homes for Scotland and

the Scottish Government. As a result of this uncertainty,

our existing provisions for Scottish buildings have been

made on a consistent basis with England and Wales but

are subject to change depending on the outcome of the

contract negotiations.

Reinforced concrete frames

We continued our remediation activities for concrete

frame design and construction during FY24. Work on

our developments proceeded in line with our plans and

remediation is well advanced.

During FY23, structural issues were identified at two

developments where reinforced concrete frames were

designed for us by a different engineering firm to that

employed at Citiscape. Having initially disclosed these as

contingent liabilities, following further analysis during the

second half of FY24, we now expect that remediation work

will be required. Based on our current assessment of the

required work, a further £56.6m has been provided for and

an additional £7.6m recognised as our share of the costs

within joint ventures in respect of these two developments.

After the additional charge of £56.6m, as well as the costs

incurred on concrete frame remediation during FY24 and

time discounting adjustments, the provision for reinforced

concrete frames totalled £102.2m at 30 June 2024 (30 June

2023: £76.4m) and reflects our current best estimate of the

scope and future costs of remediation work required.

Building safety considerations are paramount in prioritising

and scheduling remediation works. Our dedicated Building

Safety Unit manages our ongoing building safety remediation

programme, which we expect to deliver over the next five years.

Wigmore Park, New Waltham

Further details on our approach to building safety are on

our website at: www.barrattdevelopments.co.uk/about-us/

our-approach-to-building-safety

Strategic Report Governance Financial Statements

24 Barratt Developments PLC Annual Report and Accounts 2024

Charitable giving and the

BarrattFoundation

As part of our purpose, building strong communities, we

recognise we have a role to play both as a business and

through the efforts of our employees in the communities

in which they live and work across the country. We work

with the Barratt Foundation to focus our charitable work

on improving our impact across the communities we

support. Thanks to Barratt Developments’ core funding,

every pound raised by the Foundation is available for

charitable purposes.

The year has been an exceptional one for charitable giving,

thanks to the Barratt Foundation and the fundraising and

volunteering efforts of individuals and teams across the Group.

In November 2023, the Barratt Foundation celebrated a

significant milestone: it has now delivered more than

£10m of funding to more than 1,000 local and national

charities since it launched in January 2021. In FY24, we

donated£6.4m(FY23:£6.3m)tocharitablecausesthrough

the Barratt Foundation and employee fundraising.

Our impact and reach

In FY24, the Foundation has:

• supported over 500 charities, with more than £4m

funds donated;

• supported around 400 local communities through funding

and employee volunteering; and

• positively changed the lives of over 90,000 children and

young people through national partnerships and grants.

The Barratt Foundation’s activities –

threeareas of charity support:

1. Our national charity partners

The Foundation supports national charities that positively

affect the lives of children, young people and those most

disadvantaged in communities across the UK. During FY24,

the Foundation donated over £2.5m to national partnerships

and grants, including our six national charity partners:

Whizz Kidz, Place2Be, The Outward Bound Trust, Bookmark

Reading, Magic Breakfast and Street League.

2. The Barratt and David Wilson Community Fund

Through this fund, our divisions and Group offices can

donate £1,500 each month to different local charities

and organisations that really matter to them and which

enhance the lives of people living in their area. Reflecting

the additional challenges that communities face in the

winter, we also provided a Winter Support Fund in FY24. Our

divisions and teams supported 66 selected small and local

charities such as hospices, homeless charities and food

banks, which each received a donation of £3,000.

3. Match funding for our employees fundraising activities

In FY24, our employees and divisions raised a record £1.4m

(FY23: £1.3m) to support local or national charities and good

causes, with an additional £0.6m (FY23: £0.8m) from the

Barratt Foundation, which provides matched funding of up

to £12,000 per division and up to £1,000 per employee. We

also partner with Payroll Giving in Action so our employees

can make regular, tax-free donations to their chosen

charities – UK or international.

Street League

Street League, our new national charity partner,

usesthepowerofsporttosupportyoungpeopleinto

employment. With operations in 35 locations spanning

London to Edinburgh, the charity works with unemployed

16 to 24 year olds who face tough life challenges and

personal barriers. Many of the deprived areas where

Street League operates are the most disadvantaged

communities in the UK, where youth unemployment is

three times the national average and can exceed 20%.

The Foundation’s initial donation of £300,000 in FY24

is targeted to fund at least 700 young people into

employment, and is vital to enhancing their life chances,

social inclusion and sense of worth and wellbeing.

Our new national charity partner

We make it happen

Chief Executive’s Statement continued

For further details on the value we create in the communities

inwhichwe operate please see our socio-economic

footprint at: www.barrattdevelopments.co.uk/~/media/

Files/B/Barratt-Developments/sustainability/fy24-group-

socio-economic-footprint.pdf

25Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Charitable giving and the

BarrattFoundation continued

Employee volunteering

A key component to our charitable activities is our

employee volunteering, where we made significant strides

in FY24, notwithstanding a 100% increase in volunteering

days during FY23. In FY24, our employees gave up 1,935

days to volunteer with projects in their local communities,

an advance of 73% on FY23. The Big Barratt Cleanup in

April 2024 was our first national volunteering campaign

with CleanupUK. It gave our employees the opportunity to

take part in a local litter pick to help transform their local

community. More than 430 volunteered their time to take

part in 25 Big Barratt Cleanup events, removing more than

500 bags of rubbish and litter from local landscapes –

equivalent to 2.7 tonnes.

Working together with our charity partners

to help the Group deliver for our customers

As part of our drive to create inclusivity and build stronger

communities, we aim to improve and enhance the play

areas in our developments for children and young people

with physical disabilities and neurodiverse conditions.

Through Whizz Kidz and the generous help of families

supported by the charity, our designers were able to

research, develop and test our newly enhanced play

areadesignsforchildrenwithdifferentneeds.Specifically

designed play areas and tailored play area equipment are

set for roll-out at various Barratt developments around

the UK in FY25.

Chief Executive’s Statement continued

Getting involved

“ Barratt Developments’ employees have

made a significant impact, creating cleaner,

safer, and healthier spaces in their local

communities across the UK, from Aberdeen

to Exeter – we could not be more delighted.

We are very proud of the partnership we

have with the Barratt Foundation. It has

been transformational and has enabled us to

expand our CleanupUK Community Partners

initiative by setting up community cleanup

hubs in some of the most disadvantaged

wards across the UK. Together, we are making a

tangible difference in communities nationwide.”

George Monck,

CleanupUK Chief Executive

Operational review

Reservation activity

Our net private reservation rate in FY24 was 0.58 (FY23: 0.55).

The 5.5% improvement across FY24 reflected a pick-

up in activity as mortgage interest rates moved lower

from August 2023. Month-to-month reservation rates

thereafter showed relative stability, but with a greater

degree of sensitivity to mortgage interest rate movements.

This sensitivity reflected the mortgage affordability and

qualification challenges faced by prospective homebuyers,

the majority of whom depended on access to mortgages.

Netprivatereservationrate H1 H2 FY

FY24 – reported private

reservation rate 0.48 0.69 0.58

Of which: PRS and other

multi-unit sales 0.06 0.1 0 0.08

Private reservation rate

excluding PRS and other

multi-unit sales 0.42 0.59 0.50

FY23 – reported private

reservation rate 0.44 0.65 0.55

Of which: PRS and other

multi-unit sales 0.05 0.1 3 0.1 0

Private reservation rate

excluding PRS and other

multi-unit sales 0.39 0.52 0.45

Change FY24 vs FY23

Reported private

reservationrate 9.1% 6.2% 5.5%

Of which: PRS and other

multi-unit sales 20.0% (23.1)% (20.0)%

Private reservation rate

excluding PRS and other

multi-unit sales 7.7% 13.5% 11.1%

We do it together

Barratt beach clean up in Aberdeen

More details on the Barratt Foundation and its activities

are at: barrattfoundation.org.uk/

Strategic Report Governance Financial Statements

26 Barratt Developments PLC Annual Report and Accounts 2024

Operational review continued

Reservation activity continued

Reservation activity during the year reflected stabilising

demand from first-time buyers. This, despite many

first-time buyers finding it hard to both raise deposits,

given cost-of-living pressures, and secure income and

affordability qualification, given the higher mortgage rates

available. Rental cost inflation has, however, also been

a continuing challenge for first-time buyers and a key

driver for those in rental accommodation looking to move

into home ownership as and when mortgage qualification

metrics are met.

There was resilient demand from existing homeowners

with accrued equity in their current homes. Reservation

activity from existing homeowners did, however, require

additional sales support with 16% (FY23: 11%) of the Group’s

reservations in the year utilising part-exchange. At the end

of the year we held 120 unsold part-exchange homes, lower

than the 146 held at the end of the prior year.

Increased sales into the private rented sector, along with

additional multi-unit sales to registered providers of social

housing and others, partly mitigated the weakness in

traditional private reservations, supported our construction

activity and ensured more of our homes were made

available for both the private rented and affordable

homes markets. The net private reservation rate into the

private rented sector, along with additional multi-unit

sales contributed 0.08 (FY23: 0.10) to the reservation rate

in the year.

Sales outlets

During the year, we operated from an average of 346 active

sales outlets (FY23: 367), including 9 active JV sales outlets

(FY23: 8). Whilst average sales outlets were ahead in the

first half, the decline in active outlets through the second

half reflected two factors:

• A conscious decision within the Group to slow site

openings to ensure our new sales outlets were launched

to create maximum market impact. Notwithstanding this

decision, as well as ongoing planning delays, we launched

a total of 57 new sales outlets (including JVs) in the year

(FY23: 104).

• Whilst the average life of our sales outlets has been

extended by the lower private sales rate experienced

since Autumn 2022, we saw a significant proportion of

these “extended” outlets close, as they sold through from

late 2023 through to June 2024.

At 30 June 2024 we were operating from 326 active sales

outlets (FY23: 389), including 10 JV outlets (FY23: 9).

As previously announced, in FY25 we expect average active

sales outlets will reduce by approximately 9% due to lower

land buying activity in 2022 and 2023 and the annualised

impact of sales outlets closing in the second half of FY24.

We expect this reduction to be temporary with significant

net sales outlet growth in Q4 FY25 and throughout FY26

supporting average sales outlets for FY26 above FY24 levels.

Home completions

Total home completions including JVs reduced by 18.6% in

FY24 to 14,004 (FY23: 17,206). Our reduced private forward

order book at the start of FY24, in combination with the

ongoing rate of weekly reservation activity, crystallised a

24.2% decline in our private wholly owned home completions

(excluding homes for PRS and other multi-unit sales).

Our deliberate decision to seek growth through PRS and

other multi-unit sales limited the decline in total home

completions, with PRS home sales advancing 306.2% and

other multi-unit sales completions increasing by 46.9%.

The affordable housing share of wholly owned home

completions reduced to 20.8% (FY23: 23.9%). Many

registered providers are facing operational and financial

constraints due to the higher interest environment, as

well as increased scrutiny on maintenance, repair and

improvement of their existing housing portfolios. As a result,

registered providers are less eager to secure additional

affordable housing through the homes we deliver through

Section 106 arrangements. In FY25, we anticipate the

affordable housing share of wholly owned completions

willbeinthehighteens.

Completions (homes)

FY24 FY23 Change

Private excluding PRS

andothermulti-unitsales 8,851 11,676 (24.2)%

PRS 1,048 258 306.2 %

Other multi-unit sales 767 522 46.9 %

Total private 10,666 12,456 (14.4)%

Affordable 2,802 3,922 (28.6)%

Wholly owned 13,468 16,378 (17.8)%

JV 536 828 (35.3)%

Tot a l

(including JVs) 14,004 17,206 (18.6)%

The average selling price (ASP) of wholly owned completions

reduced by 4.0% to £306.8k (FY23: £319.6k). The total

private ASP reduced by 6.4% to £343.9k (FY23: £367.6k).

Within our total private completions, we completed 1,048

PRS homes (FY23: 258). The ASP of these PRS completions

was £285.1k (FY23: £280.9k), with the ASP movement

reflecting the diverse geographic spread of the homes

completed in the period.

We also completed 767 other multi-unit home sales (FY23: 522)

including home completions for registered providers, meeting

their demand for additional homes using Government grant

funding, and incremental to affordable homes provided under

Section 106 requirements. The ASP of other multi-unit sales

completions was £292.3k (FY23: £284.7k), with geographic mix

accounting for the larger part of the ASP movement.

The ASP of our affordable home completions reduced

by 1.1% to £165.3k (FY23: £167.2k), reflecting a reduced

proportion of completions from our London operations,

offset by site mix.

We expect the affordable ASP in FY25 will be similar to that

reported in FY24.

1 Unless otherwise stated, all numbers quoted exclude JVs.

2 Including JVs in which the Group has an interest.

Chief Executive’s Statement continued

27Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Our customers

Back in 2014, we first introduced Barratt Developments’

vision. It cemented our commitment to our customers by

setting down our aims and ambitions: “To lead the future

of housebuilding by putting customers at the heart of

everything we do”. Over the past decade, this vision has

been a constant: driving our actions and behaviours, our

culture and our decision making – but first and foremost,

itprioritisedourunwaveringcommitmenttoourcustomers.

Yet, we recognise that the needs of our many customers

areconstantlychanging,aswellasthecommunitiesin

which we operate and play a key role in creating, and

that we have an increasing responsibility to protect our

environment. Through engagement with customers, our

employees and teams, as well as our wider stakeholders,

we have formulated our new purpose: “Making sustainable

living a reality, building strong communities.”

This evolution in our purpose is supported by our

new values centred on “We do it for our customers”

and“Wedoitright”.Thesevaluesreflectnotonlythe

unwavering focus we have on our customers, but also a

broadening of the expectations set by our customers and

upon which we ourselves should aspire to meet and exceed.

We put our customers and their new homes, as well as

their communities and local environment, at the heart of

everything we do.

Great choice for potential customers

Through our existing housebuilding brands, we offer a wide

range of homes for our customers: from one-bedroom

apartments to five and six-bedroom homes. Barratt

London is our award-winning operation within the M25.

Barratt Homes and David Wilson Homes operate across

Great Britain outside London. Depending on the size of

the development and local market dynamics, they operate

single-branded sites or as dual-branded locations, creating

greater variety and choice for potential homebuyers through

development design, street scenes, house types and price

points. As a result, dual-branded developments generate

higher sales rates than those offering a single brand.

During FY24, we operated with 252 developments on

average across Great Britain: 97 developments under the

Barratt Homes brand; 54 under the David Wilson Homes

brand; and 101 dual-branded developments with both

Barratt and David Wilson Homes. We are continually looking

to enhance choices for our customers and increase the

variety and diversity of our developments through our

branded house types.

The acquisition of Redrow, along with CMA approval,

will support the further development of our portfolio

of strong brands, with recognisable house types and

reputations for great quality and customer service. It will

also create greater choice for both Redrow and Barratt

customers, accelerate the pace of housebuilding across our

developments and is a key ingredient in making our land

banks work efficiently for all stakeholders.

Great service through the buying process

and beyond

We believe our industry leadership in customer service

is fundamental to our success. We are the only major

housebuilder to have been awarded the maximum five-star

rating by our customers in the HBF Customer Satisfaction

Survey for 15 consecutive years, with our latest customer

satisfaction rating at 93%.

We want our customers to receive the best possible

service, not only throughout their home buying journey but

also post-completion. We invest in training and workshops

to enhance our service and our customers’ experience

beyond the handover of their new home.

Chief Executive’s Statement continued

First home buyers, George, Hayley and Digby

Strategic Report Governance Financial Statements

28 Barratt Developments PLC Annual Report and Accounts 2024

Our customers continued

New Homes Quality Code

We operate under the New Homes Quality Code (the Code)

as a registered developer with the New Homes Quality

Board. Introduced in 2022, the Code covers the period from

initial homebuyer enquiry through to completion and then

two years post-occupation of the new home. It centres on

fairness throughout the customer journey, and not simply

the achievement of technical standards around build quality

and defects.

New build advantages for our customers

We are continually seeking to improve the energy and water

efficiency, as well as the sustainability of our homes and

adapting our home designs to respond to both changing

homebuyer demands, as well as the Future Homes Standard

and other changes to building regulations. We aim to build

high-quality homes that optimise internal space, deliver

excellent energy and water efficiency and, as a result,

unlock lower lifetime costs for our customers.

We actively promote the lower running costs and wider

environmental benefits such as biodiversity features

and transport connections of our homes across all our

communication channels and in our sales centres. This is

an increasingly important purchasing consideration for our

customers. A typical Barratt or David Wilson house, built

from June 2023 under latest Building Regulations, can

unlock annual energy bill savings estimated at more than

£2,570

annually when compared to an average existing

house. In FY24 more than 99% of our home completions

were EPC rated “B” or above, a level of energy efficiency

shared by just 3.3%

of the existing housing stock.

In addition, all of our homes are designed to a water use

standard of 105 litres per person per day, creating the

potential to reduce consumption by 25% when compared to

the national average

and creating further cost savings for

our homeowners.

Green mortgage development reflecting

new build advantages

The financial and environmental advantages of new build

homes have never been as significant as they are today,

and we are committed to enhancing both the access and

affordability of our new homes in partnership with both

mortgage lenders and surveyors.

Mortgage lenders, driven by their own sustainability

initiatives, the growing recognition of future retrofit costs

in relation to energy efficiency for existing homes, and the

scale of annual savings from new build home ownership

are increasingly engaging with the housebuilding industry

around green mortgages.

The surveying industry is critical in developing a consistent

and enduring valuation framework that will allow the

recognition of the financial and environmental advantages

of high-quality, new build homes.

As the leading national sustainable housebuilder, we have

adualapproachtogreenmortgagedevelopment.

• We work directly with mortgage lenders to develop

enhanced mortgage products that recognise the

advantages of our new build, energy-efficient homes.

During FY24, Accord (The Yorkshire Building Society)

joined The Leeds Building Society with the launch of a

new green mortgage product. Both mortgage lenders

recognise the advantages inherent in new energy-efficient

homes, and their mortgage products have the potential to

unlock up to a 10% uplift in lending.

• We collaborate with the wider industry and the

Government, notably through the Future Homes Hub.

Barratt’s Head of Mortgage Lender Relations also chairs

the “Valuation Group”, which is considering how the value

of sustainable benefits of new homes can be recognised

in the mortgage valuation process.

1 Data based on HBF “Watt a Save” report updated and published 19 August 2024, available at:

www.hbf.co.uk/policy/wattasave/

2 Based on EPC registrations to 30 June 2024, published 30 July 2024.

3 Statista data at: www.statista.com/statistics/1211708/liters-per-day-per-person-water-

usage-united-kingdom-uk/

Water resilience

We recognise that water is at the core of adaptation to

climate change, and is a crucial link between society and

environment. We have responded to this by designing

water-efficient homes ahead of regulation and we are

increasing the resilience of our sites to water scarcity

and flooding through careful design and development

of landscaping. We are underway with the Group’s first

water value chain assessment to identify risks and

opportunities and how we can manage and reduce

ourwaterfootprint.

Read more about our sustainability roadmap on pages 43 and 44

We do it right

Chief Executive’s Statement continued

A balancing pond enjoyed by local wildlife

29Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Chief Executive’s Statement continued

Our people

We are seeking to build a diverse and inclusive workforce

that reflects the communities in which we operate,

delivering excellence for our customers by drawing on

a broad range of life experience, talents and skills. This

approach is embedded within our new purpose and values,

our Building Sustainably Framework and in our Diversity and

Inclusion Strategy, through which we aim to improve the

representation of all groups across the business and drive

an inclusive culture, where difference is valued.

Engaging with our employees

Our annual employee engagement survey was completed in

October 2023. It delivered an engagement score of 74.9%

(2022: 84.4%), reflecting:

• our ongoing recruitment freeze, which has created

additional workload and responsibilities;

• the lower FY23 bonus compared to previous years; and

• a return to more normal engagement levels following a

strong score in 2022 which was supported by two cost-

of-living support payments that ended in July 2023.

Following the 2023 engagement survey, we conducted

workshops and consultations, reflecting our desire to

respond positively and engage with our workforce to

improve engagement. A follow-up shorter ‘pulse’ survey

conducted in April 2024 showed a positive impact on

engagement, which improved to 78.9%.

Investing in development and training

Against a skills shortage backdrop in the industry, it is

important we not only attract and retain the best people

with a diverse range of skills and experience but also

playaleadingroleintacklingindustryrecruitmentand

retentionchallenges.

We invest for the future through our numerous award-

winning schemes including those for graduates, apprentices

and former Armed Forces personnel. We have four Degree

Apprenticeships delivered in partnership with Sheffield

Hallam University, encompassing Construction, Quantity

Surveying, Technical Design and Real Estate. Our development

programmes included 353 participants at 30 June 2024

(FY23: 483), around 6% (FY23: 7%) of our workforce,

highlighting our commitment to future talent development.

Retaining the best talent

It is vital for us to retain the most talented people within

our business to ensure we have the necessary skills

for continued operational delivery and future growth.

Identifying and supporting our leaders of the future, along

with effective succession planning, are important elements

in our long-term success. Our “Rising Stars” programme

seeks to identify, motivate and develop our high-potential

employees and in total 344 employees have attended our

“Rising Stars” programme.

With the ongoing pause in recruitment, we continue to work

to improve the visibility of our employees’ career paths

across all functions, through individual development plans,

line manager development, developing over 500 managers

through our management development programme to date,

and the prioritising and tracking of internal promotions.

Remuneration and benefits are an important element of

employee retention. We continue to review our employee

packages to ensure they are effective and industry competitive.

Expanding share ownership for our employees

In April 2024, we invited all eligible employees to participate

in the 16th grant under the Group’s Sharesave scheme,

which allows eligible employees to contribute a maximum

of £500 per month in one or more Sharesave schemes.

As at 30 June 2024, approximately 52.1% (FY23: 51.4%)

of our employees participated in one or more of the

active schemes.

In recognition of the continued dedication and commitment

of our employees, in FY24 the Board agreed that an annual

share award would be made to all employees below Managing

Director level. Accordingly, in July 2024, an award of shares

equating to £750 (FY23: £1,250) was made to all qualifying

employees. This award will vest in July 2026.

Reflecting the challenges faced by our industry and as

well as our recruitment freeze throughout FY24, our total

employee turnover reduced to 13% for the year to 30 June 2024

(FY23: 15%). Our target over the medium term remains at 15%.

Accredited Living Wage Employer

We continue to operate as an accredited Living Wage

Employer and we promote the payment of the real Living

Wage within our UK supply chain through our standard

sub-contractor terms and conditions.

Our standard sub-contractor terms and conditions also

mandate the payment of the real Living Wage within our

supply chain. To ensure this real Living Wage commitment is

adhered to, we implement spot checks on higher risk trades

and operate internal remediation feedback reporting. Where

we find instances of non-compliance, we require this to

be rectified, with follow-up audits conducted to ensure full

compliance. For those working in jurisdictions other than the

UK, our expectation, included within our contract requirements,

is that local statutory minimum wage terms are met.

Employee networking

Our employee networks remain a key element of the wider

work to listen to our people, helping us create a truly

inclusive culture through peer-to-peer support, learning and

feedback. We have six employee network groups: Gender;

Women on sites; Ethnicity, Culture and Religion; Disability;

Families (including carers); and LGBTQ+, offering a range

of activities from webinars, face-to-face events, leading

discussions, marking of key calendar events, religious

festivals and signposting support.

All our networks are open to allies, and we have seen a

strong increase in membership over the year. A member

oftheExecutiveCommitteesponsorseachnetwork.

We recognise that our employees are all a unique blend of

different identities. We encourage our networks to combine

on actions in support of this.

More information on our career and apprenticeship

opportunities are available to viewon our website:

www.barrattcareers.co.uk

Strategic Report Governance Financial Statements

30 Barratt Developments PLC Annual Report and Accounts 2024

Our people continued

Gender and ethnicity pay gap reporting

In December 2023, we published our annual Gender Pay

Gap Report and, for the second year, our Ethnicity Pay Gap

Report, as part of our commitment to transparency and to

support our Diversity and Inclusion Strategy to improve the

representation of all groups across the business.

Despite our ongoing commitment to gender pay equality

both our mean and median gender pay gaps increased

compared to 2022, rising to 9.6% (from 8.8%) and

7.4% (from 6.3%), respectively. Challenging conditions

in the wider housing market led to a 17% reduction in

sales commissions, predominantly affecting our sales

teams, where the majority of colleagues are female. The

construction skills shortage also continues to impact

the industry as a whole, with increasing demand for, and

scarcity of, skilled site-based tradespeople, triggering a

wage increase in the UK. This prompted us to raise hourly

rates for trade roles in some of our regions, primarily

occupied by male site-based colleagues. This helped to

address external economic pressures but contributed to the

pay gap increase.

Although our mean gender pay gap is smaller than the

average for UK businesses in 2023 at 13.2%, as we navigate

changes in the market, we remain committed to continuous

improvement, implementing proactive measures to address

any pay disparities and delivering against our 2025 Diversity

and Inclusion Strategy.

Although we are not statutorily required to disclose our

ethnicity pay gap data, we are committed to diversity and

inclusion, as well as being transparent with our people and

ensuring we measure our impact.

In 2023 the mean ethnicity pay gap decreased to 6.6% from

7.7%, and the median gap decreased to 3.6% from 5.9%.

This shift was partly attributed to an increased willingness

from colleagues to identify their self-declared ethnicity,

notably a change in declaration from “Do not wish to state”

to identifying with an Ethnic Minority Community (EMC).

The median ethnicity pay gap has also reduced due to

comparatively larger salary increases for middle managers

within the EMC community compared to white colleagues.

To deliver change in both areas, we will continue to build

on the work in place to support our teams through our

recruitment processes, talent programmes, employee

networks, succession planning and early careers development.

We also remain committed to implementing proactive

measures to address any pay disparities based on either

gender or ethnicity.

Physical health and mental wellbeing

As a market leader and responsible employer, we are

continually exploring how we can best support our

employees whilst positively influencing the construction

industry and beyond. We have delivered programmes and

services for a number of years to support and enhance the

health and wellbeing of our people, including mental health.

We have been signatories of the Building Mental Health

Charter since 2022, a member of the Zero Suicide Alliance

since 2023 and we are active members of the Home

Building Skills Partnership Mental Health Awareness Group.

We also support our employees through a sector-leading

benefits package, including pension with death in service

benefit, access to discounts on fitness memberships, high

street savings, the ability to purchase additional holiday,

financial education, access to savings and loans through

payroll and a suite of family-friendly policies.

Our new purpose and, in particular, the new values we seek

to extol, emphasise a supportive culture based on positive

behaviours, inclusion and respect.

The latest Gender and Ethnicity Pay Gap Report can

be viewed at: www.barrattdevelopments.co.uk/~/

media/Files/B/Barratt-Developments/documents/

Publications/barratt-developments-plc-gender-and-

ethnicity-pay-gap-report-2023.pdf

Diversity and inclusion

We are committed to developing an environment that is

inclusive for everyone. We want everyone who works with

us or for us to feel valued, that they are treated equally and

fairly, and that they can succeed in their role – regardless

of their background. We believe there are two elements that

create a workplace where everyone feels valued and that

they belong:

• Diversity is the representation of all of our differences,

and how we differentiate ourselves as individuals and

as groups. Striving for diversity provides the widest

access to talent and reflects our customers and the

communities we serve. We know our people want to see

role models that reflect them across the organisation.

• Inclusion is about building a culture of belonging by

actively inviting colleagues to contribute and participate,

which is proven to increase business performance. We

believe every person’s voice adds value and it is vital

that all our current colleagues, and any prospective

colleagues, feel respected and valued.

• We are committed to giving full, fair and transparent

consideration to applications for employment made

by those with disabilities and ensuring continued

employment of those who may become disabled during

their employment. As an organisation we seek to ensure

that training, career development and promotion is fair in

all circumstances.

Our Diversity and Inclusion Policy can be viewed at:

www.barrattdevelopments.co.uk/~/media/Files/B/

Barratt-Developments/policies/2023/diversity-

inclusion-policy-summary.pdf

Chief Executive’s Statement continued

31Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Chief Executive’s Statement continued

Our people continued

Diversity and inclusion continued

Our Diversity and Inclusion Strategy

Our Diversity and Inclusion Strategy aims to improve both

the representation of all groups across the business, as well

as our ability to listen and communicate to them all, and is

focused on three key areas:

• Talent: increasing our representation through the

attraction, recruitment and development of diverse skills

and experience at all levels.

• Leadership: taking accountability for change and creating

an inclusive environment where everyone can thrive.

• Attitudes: supporting our people to understand and value

difference, with respect and kindness.

Gender and ethnic diversity

Improving our gender and ethnic diversity is a key focus

and we continue to ensure we have gender balanced and

diverse recruitment shortlists, and provide inclusive hiring

training for all recruiting managers. Additionally, to drive

improvement, we:

• are measuring gender and ethnic representation in

each function and level within the Group on a quarterly

tracking basis;

• are operating with a specified group of preferred

recruiters, who have all committed to provide balanced

and diverse short-lists; and

• have increased the female and ethnic minority

background cohorts on our Accelerated Leadership

Programme, which is designed to identify our future

Managing Directors.

Catalyst

“Catalyst”, our long-standing development and support

programme, designed to help high-potential female

employees develop their careers within the Group, is a

key part of our gender diversity strategy. This programme

continues to show positive results with eight divisional

directors who are alumni from the programme and 18% of

the last cohort, in FY23, already promoted or having their

roles extended. Our Catalyst programme in FY24 has been

our largest, since inception, with 110 participants.

As at 30 June 2024, women held 20% (FY23: 18%) of senior

manager roles within the Group. The gender diversity

statistics for our employees as a whole, our senior managers

and the direct reports to the Executive Committee and

PLC Directors are shown on page 32. Further information

regarding the diversity (including ethnicity) of our PLC

Directors and Executive Committee members can be found

in the Nomination Report on page 103.

Increasing the ethnic diversity of our organisation

remains a clear target for the Group’s leadership teams

and as at 30 June 2024, 8% (FY23: 7%) of employees

were from ethnic minority backgrounds and 3% (FY23:

3%) of senior leadership positions were held by ethnic

minorityemployees.

Human rights and anti-bribery

Our respect for human rights is embedded within our new

purpose and values. Our policies and procedures support

the core values of the UN Universal Declaration of Human

Rights and the UN Guiding Principles of Business and

Human Rights, and we act in accordance with our principles

regarding diversity and the Modern Slavery Act 2015.

Our non-financial KPIs for health and safety and employee

engagement reflect our belief that it is a fundamental

human right to work in a safe and supportive environment.

Our employees undertake training on modern slavery, which

was updated this year ready for launch in FY25. Concerns

can be raised anonymously via our externally managed

whistleblowing process which is available to agency

staff and sub-contractors as well as our employees and

promoted in site welfare cabins.

This year we began to develop a framework for risk assessing

and managing our supply chain human rights risks.

We have a strict Anti-Bribery and Corruption Policy and

conduct our business in a fair, open and transparent

manner. All our employees are required to undertake regular

training on our Anti-Bribery and Corruption Policy, and it is

a condition of all our supplier and subcontractor contracts

that they comply with the Bribery Act and this policy.

Our Anti-Bribery and Corruption Policy can be viewed

at: www.barrattdevelopments.co.uk/~/media/Files/B/

Barratt-Developments/policies/2023/anti-bribery-

and-corruption-policy.pdf

PLC Directors

Male and female employees

Senior Managers

Employees

Executive

Committee

Reports to Executive

Committee

2024 2023

Male 67% 63%

Tota l 6 5

Female 33% 37%

Tota l 3 3

2024 2023

Male 80% 82%

Total 265 272

Female 20% 18%

Tota l 67 59

2024 2023

Male 68% 68%

Total 4,007 4,345

Female 32% 32%

Total 1,922 2,044

2024 2023

Male 50% 71%

Tota l 4 5

Female 50% 29%

Tota l 4 2

2024 2023

Male 66% 69%

Total 25 27

Female 34% 31%

Total 13 12

Strategic Report Governance Financial Statements

32 Barratt Developments PLC Annual Report and Accounts 2024

26,000

24,000

22,000

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

(2,000)

FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

19,956

24,387

18,497

20,951

18,448

9,441

18,067

19,089

(812)

12,439

Our land position

Since stepping back from the land market in September

2022, we have adopted a highly selective approach to

incremental investment in land. Our stance reflects our

strong land bank position, uncertainty on house prices,

build cost inflationary pressures and limited movement in

wider market reported land prices to reflect these changed

market dynamics. However, since the start of 2024, we have

seen an uptick in the quantity of land made available that

meets our rigorous land buying requirements and is centred

on a minimum gross margin of 23% and 25% ROCE.

Gross and net land approvals

As a result, gross site approvals have increased to 69

new sites during the year. These were partially offset by 11

previously approved sites no longer proceeding to purchase,

resulting in a net increase of 58 site approvals in FY24

(FY23: net cancellation of two sites).

Approved sites along with planning amendments added

15,233 plots (FY23: 4,821), at a cost of £771.7m (FY23: £345.2m),

with 2,794 plots (FY23: 5,633) removed for sites no longer

proceeding at an agreed cost of £124.8m (FY23: £360.1m).

This resulted in a net increase of 12,439 plots in FY24

(FY23:netreductionof812plots)andanetincreasein

ourlandapprovalcommitmentsof£646.9m(FY23:net

decrease of £14.9m).

Given the subdued but more stable market backdrop and the

growing number of land opportunities available we expect

to increase our land approvals significantly in FY25 whilst

maintaining our rigorous land investment requirements.

Planning and ownership or control status

30 June

2024

30 June

2023

Plots with detailed planning consent 40,030 48,270

Plots with outline planning consent 15,239 9,658

Plots with resolution to grant and other 2,363 1,320

Owned and unconditional land bank

(plots) 57,632 59,248

Conditionally contracted land bank

(plots) 8,607 11,142

Total owned and controlled land

bank (plots) 66,239 70,390

Number of years’ supply 4.9 4.3

JVs owned and controlled land

bank(plots) 4,631 4,356

Strategic land bank (acres) 16,865 16,431

Strategic land bank (plots) 106,516 101,784

Promotional land bank (plots) 105,359 96,844

Land bank carrying value (£m) 3,233.6 3,139.9

At 30 June 2024, the estimated ASP of plots in our owned

land bank was £328k (30 June 2023: £331k) and the

estimated gross margin in our land bank, based on current

estimated sales prices and build costs at 30 June 2024 was

18.6% (30 June 2023: 19.7%).

Land market activity

Notable development transactions in FY24:

• ASDA Park Royal, London: a major regeneration scheme

in Ealing which, over a number of years, will see the

development of 1,505 mixed tenure homes as well as a

new ASDA superstore.

• Fort Halstead, Kent: a significant redevelopment of former

MOD research facility to deliver 635 homes near Sevenoaks.

• Durieshill village, Stirling: a major new village development

on the outskirts of Stirling to develop more than 1,500

homes in a 50:50 partnership with Springfield Properties.

Net land approvals (plots)

Land investment

We invested £674.3m (FY23: £822.8m) on land acquisitions

and the settlement of land creditors during FY24, and we

currently expect to spend c. £800m on land in FY25.

We continue to target a regionally balanced land portfolio in

the medium term with a supply of owned land of c. 3.5 years

and a further c. 1.0 year of controlled land. We are broadly in

line with this target, with our land bank comprising 4.3 years

of owned land (30 June 2023: 3.6 years) and 0.6 years of

controlled land at 30 June 2024 (30 June 2023: 0.7 years).

Chief Executive’s Statement continued

33Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Chief Executive’s Statement continued

Our land position continued

Planning permission activity

Despite the challenging planning backdrop across the

country, we secured planning consents on 9,026 plots

across 54 developments during the year (FY23: 12,969 plots

on 81 developments). As well as standard applications,

which received planning approval at a local level, we took

three planning refusals to appeal and were successful in

overturning them.

Whilst our business and the wider industry continue to

experience significant challenges with the ineffective

and highly unpredictable state of the planning system,

more than 69% (30 June 2023: 81%) of our owned and

unconditional land bank plots have detailed planning

consent, supporting our sales outlets position and future

home completions. We are also well positioned for the

coming financial year with almost all budgeted FY25 home

completions (FY24: all budgeted FY24 home completions)

having outline or detailed planning consent.

Strategic land

Our strategic land teams were focused on securing

additional strategic land to support future growth and 4,477

plots across 30 strategic sites were approved during FY24

(FY23: 21,802 plots and 70 sites). Plots secured through

our strategic land bank delivered 3,290 (FY23: 3,938) or

24%(FY23:24%)ofourwhollyownedhomecompletionsin

FY24. We converted 3,723 plots (FY23: 777) of strategic land

into our owned and controlled land bank during FY24. After

significantly expanding our strategic land bank over the

past few years, our strategic land and planning teams (with

input from Gladman) will now increasingly focus on securing

planning consent by promoting strategic land through Local

Plan reviews, as well as speculative planning applications.

At 30 June 2024, around 20% (30 June 2023: around 23%)

of our strategic land is allocated or included in draft

Local Plans.

We target around 30% of wholly owned completions

from strategic and promotional land in the medium term.

This reflects the development and planning prospects in

our strategic land portfolio, our business model and our

targeted land bank length and focus on ROCE.

Land promotion

Our promotional land portfolio is held through Gladman

Developments Limited (Gladman) and consists of 105,359

plots (30 June 2023: 96,844 plots), with Gladman operating

at arm’s length and as a standalone business within

the Group.

Over FY24, Gladman secured an estimated 9,239 plots,

(FY23: 9,453 plots) through new promotional agreements

with landowners. Following several successful planning

applications, Gladman received planning consents on 2,804

plots during the year (FY23: 2,437 plots). Whilst wider

market demand for land remained weak in FY24, Gladman

secured land sales equating to 773 plots (FY23: 1,813 plots),

dominated by demand from smaller developers.

Gladman generated revenue of £13.1m and an operating

profit, before amortisation of intangible assets, of £0.2m

during FY24 (FY23: sales of £20.4m and operating profit,

before amortisation of intangible assets, of £3.8m). The

reduction in revenue and profitability reflected the low

level of land market activity across the year as many

housebuilders limited or paused their land buying plans. We

expect Gladman’s performance to recover as land market

activity increases over the coming months.

Gladman, with the benefit of the Group’s financial, legal and

development resources, continues to engage with new and

existing land promotion partners around the most attractive

routes to unlock value from their land positions. Gladman

also offers the ability to convert promotional agreements

into option, hybrid or freehold sale arrangements for all,

or part, of their land promotion partners’ holdings, to meet

their changing needs and aspirations.

Kingsbrook, Aylesbury

Strategic Report Governance Financial Statements

34 Barratt Developments PLC Annual Report and Accounts 2024

Our build performance

Maintaining the efficiency of our operations and controlling

costs, whilst also retaining our capacity to deliver the

homes that the country needs, has remained a key area

ofconsiderationthroughouttheyear.

Managing site-based construction

Coming into FY24, our reduced order book and limited

improvement in the reservation rates necessitated further

adjustments to construction activity. We also sought to

manage customer commitments for home completions, our

finished homes inventory and the investment in new site

infrastructure to support future sales outlet openings. As

a result, our annual build activity reduced by 20.2% to an

average 257 (FY23: 322) equivalent homes (including JVs)

built per week.

In FY25, we will seek to balance construction activity

between the expansion in sales outlets for FY26 and the

anticipated reduction in completion volumes.

Controlling our cost base

We proactively managed our operating cost base throughout

FY24, particularly in areas where activity levels have stepped

materially lower. Our site-based teams have inherent flexibility

through the use of our sub-contractor workforce. With respect

to our directly employed team members, we began a headcount

freeze in September 2022, which has reduced our number

of employees by 12.2% cumulatively through to the year end

(30 June 2023: 6.0% cumulatively).

Headcount reductions have been most significant across

our divisional network of offices, where reduced activity has

not warranted recruitment as team members have moved

either to new opportunities or reached retirement. We have

continued to invest in priority areas, including sustainability,

building safety and our IT infrastructure. However, we are

only recruiting where we need additional skills. We continue

to scrutinise and limit discretionary spend in all areas.

Build quality

Throughout FY24, we maintained our unwavering attention

to build quality throughout our divisions. Once again – and

for a fifth consecutive year – we were rated industry leader

among the major housebuilders by the NHBC, registering

the lowest Reportable Items (RIs) per NHBC inspection at

0.13 (FY23: 0.16)

The NHBC has also introduced a new Construction Quality

Index (CQI), which takes into consideration the Reportable

Items index, based on the five-stage inspection of our new

homes as well as Construction Quality Reviews, which are

an in-depth review of quality across a site and focus only

on build stages available at the time of the review. NHBC

views this new CQI measure as a valuable tool in managing

quality across housebuilders’ operations. On this additional

metric, we have ranked a clear industry leader among the

major housebuilders throughout FY24.

Our build quality was also recognised through the NHBC

Pride in the Job Awards for site management. At the 2023

Regional NHBC Pride in the Job Awards, 30 of our site

managers won “Seals of Excellence”. At the NHBC Pride in

the Job Supreme Awards in January 2024, Sean O’Regan, Site

Manager at Waldmers Wood in our Manchester division, was

named “Supreme Runner Up” in the “Large Builder” category.

At the 2024 National NHBC Pride in the Job Awards, 89 of

our site managers secured awards, more than any other

housebuilder for the 20th consecutive year. No other major

housebuilder has achieved this level of consistent success,

recognising our management of excellent site standards and

build quality. All our sites operate under our certification to

the Environmental Management System standard ISO 14001,

and Health and Safety standard, OHSAS 18001.

1 Measured by the NHBC amongst the 14 major housebuilders constructing more than 1,000

homes annually over the year to 30 June 2024.

Anson Gardens, Fradley

Chief Executive’s Statement continued

35Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Chief Executive’s Statement continued

Our supply chain and cost inflation

Our supply chain, on which our build activity relies, is

robust and carefully managed. Approximately 95% of

our building materials are sourced by our centralised

procurement function and approximately 90% of our

building materials are either manufactured or assembled in

the UK. We are committed to our supply chain partners and

seek to secure not only sustainable but also competitive

pricing, whilst maintaining security of supply to support our

site-based operations.

During FY24, overall building material cost inflation slowed

sharply on a spot purchasing basis, moving to a relatively

flat to slightly deflationary position at the half year with

this position being broadly maintained through to year

end. This recent purchasing position is complemented

by our future supply agreements which cover 85% of our

materialrequirementsto31December2024(FY24:73%

to31December2023)and19%ofourrequirementsuntil

30June2025(FY24:14%to30June2024).

Whilst we saw the inflationary pressures around skilled

labour recede during the year, the industry still has a long-

standing need for skilled tradespeople, combined with

limited access to overseas labour and more opportunities

for workers to either shift to alternative sectors or to leave

the industry. These factors, along with the broader cost-

of-living backdrop, meant wage inflation proved stickier

and we anticipate labour inflation will remain the more

inflationary component of our total costs in FY25.

During FY24, total build cost inflation (including

infrastructure costs, materials and labour) reported through

our income statement was approximately 5%, with the rate

of inflation moving sequentially lower throughout the year.

Reflecting the current market backdrop, and assuming no

further significant changes in the costs of key commodities

or energy, we anticipate total costs will be broadly

flat in FY25.

Benefits of MMC

Embodied carbon emissions

5 tonnes less

Timberframehomesproduceuptofivelesstonnesofcarbonover

their life (compared with masonry homes)

, which is projected to

reduce our carbon footprint by 6% by FY40. This is a key component

in achieving our net zero goal (see page 82). We are also working to

capture our suppliers’ carbon emissions data and transition plans

andhaveidentifiedthat53%ofourtimberframesuppliershave

carbon targets in place.

Build speed

c.40% faster

Timetakentoprogressfromfoundationtobuildcompletion

reduced by up to 40%, reducing overhead costs on site and

decreasing the risks of delivery.

Off-site construction

Manufacturingcomponentsoffsiteislesslabourintensiveand

allows us to recruit from a more diverse labour pool. Limiting time

on site also reduces exposure to weather disruption, increasing

the resilience of our build programmes as severe weather becomes

more frequent (see page 77).

Waste

27% less

Studies show that MMC approaches result in up to 27% less waste

compared to traditional construction, especially in concrete,

cement and ceramics

. This is due to consistent factory-based

processesleadingtoefficienciesinmaterialsuseandtheavoidance

of sometimes unavoidable weather-related damage to building

materials on site.

1 www.aimch.co.uk/outputs/whole-life-carbon-assessment#:~:text=Timber%20frame%20

outperforms%20masonry%20construction%20on%20a%20whole,sequestration%20during%20

the%20life%20cycle%20of%20the%20building

2 WRAP case study: Benefits of off site manufacture

Our build performance continued

MMC expansion through timber frame

We are looking to drive construction efficiency through

standardising our house types and increased use of

modern methods of construction (MMC). The adoption

of MMC, particularly timber frame construction, helps to

mitigate the long-term challenges posed by the shortage

of skilled workers within the industry, as well as increasing

build efficiency, reducing embodied carbon and on-site

construction waste. Our new timber frame facility, near

Derby, continued to grow its timber frame production to

support our growing migration to timber frame construction.

MMC FY24 FY23

Timber frame 4,107 4,564

Roof cassettes 199 224

Offsite ground floors 268 560

Large format block 94 230

Tot a l

4,668 5,578

Percentage of completions

33% 32%

A Total and percentage of completions includes JVs and has been adjusted for homes where

more than one technology has been used.

We do it right

Strategic Report Governance Financial Statements

36 Barratt Developments PLC Annual Report and Accounts 2024

Our build performance continued

Further improvement in our

wasteperformance

Waste reduction and resource efficiency remain clear

priorities within the Group targets. In FY24 we delivered

a further improvement in our waste intensity with a 12%

reduction to 3.83 tonnes per 100m

of housebuild equivalent

build area (FY23: 4.34 tonnes per 100m

of housebuild

equivalent build area). Over FY24, our absolute waste

tonnage decreased by 29.1% (FY23: decreased by 17.1%).

We promote the segregation of waste and the efficient

use of skips across our sites; our diversion of waste from

landfill increased during the year to 97% (FY23: 96%).

Future homes for our customers

Our Group Design and Technical team continues to develop

plans to meet the requirements of the Future Homes

Standard in 2025/2026. The team is developing and evolving

our house types to meet a step change in the materials

used in the homes we build, as well as the design of them,

as a result of the new standard.

Our eHome2 project continues to provide invaluable

insights and solutions. It is now providing data on how it

is performing across various external temperatures and

weather conditions, controlled within the Energy House 2.0

chamber at the University of Salford.

Read our summary of key findings on our website:

www.barrattdevelopments.co.uk/~/media/Files/B/

Barratt-Developments/documents/ehome2-phase-1-

research-report.pdf

eHome2 launched within Energy House 2.0 in January 2023

eHome2

In January 2023, Barratt Developments launched

eHome2 within the world-leading Energy House

2.0, one of the most significant research and

development projects ever undertaken by

the Group.

Energy House 2.0 is a climate chamber that can

recreatetemperaturesrangingfrom-20˚Cto

+40˚C,aswellassimulatingwind,rain,snowand

solar radiation. The climate chamber is the largest

of its kind in the world.

Inside Energy House 2.0, we worked with Saint-

Gobain, a leading building materials manufacturer,

to build a three-bedroom family home, known

as eHome2, to test innovative building products

designed to meet the Future Homes Standard. The

house is also testing zero carbon performance in

different temperatures and weather conditions to

replicate extreme changes in the climate.

The data will help to inform how we, and the

housebuilding sector, can design homes that are

future-proof, whilst cutting bills for consumers.

Read more about our sustainability roadmap on pages 43

and 44

We make it happen

Chief Executive’s Statement continued

37Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Current trading and outlook

Long-term housing market fundamentals reflect a

significant imbalance between housing supply and demand.

Despite this imbalance, the market in FY24 remained

constrained by significant macroeconomic headwinds,

most notably higher interest rates and inflation. The

higher interest rate environment is impacting mortgage

affordability and qualification, as well as the cumulative

cost-of-living squeeze, which has depressed real disposable

incomes and constrained economic growth, employment,

consumer confidence and discretionary spending.

Whilst the new Government has only been in place for two

months, we are encouraged by early activity on housing

and the focus on improving the planning system, as

well as tackling the funding challenges in the affordable

housing sector. They will create greater permissioned land

supply, mortgage access, predictability and confidence for

homebuyers. However, these supply-side changes will take

time to be implemented effectively.

We entered FY25 with a solid forward sales position, and

at 25 August 2024 we are 42% forward sold with respect

toprivatewhollyownedhomecompletionsforFY25

(27August2023forFY24:45%),with52%oftheprivate

order book exchanged (27 August 2023: 51%).

Since the start of FY25, our net private reservation rate

per active outlet per week through to 25 August 2024

has been 0.58 (FY24: 0.42). Whilst the prior year period

was particularly impacted by available mortgage rates,

the current year reservation rate reflects the continuing

affordability challenges faced by potential homebuyers.

25 August 2024 27 August 2023 Variance %

Forward order book £m Homes £m Homes £m Homes

Private 1,467.0 4,159 1,527.6 4,440 (4.0)% (6.3)%

Affordable 579.6 3,519 752.0 4,691 (22.9)% (25.0)%

Wholly owned 2,046.6 7,6 78 2,279.6 9,131 (10.2)% (15.9)%

JVs 151.1 399 157.7 477 (4.2)% (16.4)%

Tot a l 2,197.7 8,077 2,437.3 9,608 (9.8)% (15.9)%

During the period to 25 August 2024, reservations into the

private rented sector and other multi-unit sales contributed

0.03 (FY24: 0.02) to the weekly reservation rate.

Based on trading year to date and current market

conditions, we continue to target total home completions

of between 13,000 and 13,500 in FY25, including c. 600

completions from our JVs, whilst ensuring we maintain our

industry-leading standards of build quality and customer

service. We also currently estimate that around 42% of

our completions will be delivered in the first half of the

financial year.

We were delighted to complete the acquisition of Redrow

plc in August 2024 and are working with the CMA to obtain

competition clearance. We look forward with confidence;

we have created a leading UK housebuilder focused on

quality, service and sustainability which will deliver more

homes across the UK than the two companies on a stand-

alone basis, as well as delivering significant cost synergies

from the Combination.

David Thomas

Chief Executive

3 September 2024

Chief Executive’s Statement continued

1 The information presented on this page excludes the newly acquired Redrow group.

Strategic Report Governance Financial Statements

38 Barratt Developments PLC Annual Report and Accounts 2024

Innovation through modern methods of construction

Expansion of Oregon

As we evolve how we build, tackle the skills challenge

and move towards zero carbon homes, modern methods

of construction (MMC) will play a significant role in the

future of housebuilding. We are committed to increasing

thenumberofhomeswebuildusingoffsiteconstruction.

We are the UK’s largest timber frame manufacturer through

Oregon Timber Frame and have continued to develop

our use of timber frame construction as MMC across our

sites. In FY24, the Group built 4,107 timber frame units out

of its 14,004 completions, supplied from its factories in

Burton-upon-Trent and Selkirk.

4,107

timber framed homes delivered to our sites by

OregoninFY24(FY23:4,564)

99.9%

ofthetimbersourcedbyOregonissustainabilitycertified

This equated to 29.3% (FY23: 26.5%) of total homes

delivered in the year, contributing to us already exceeding

our target for 30% of homes to be built using modern

methods of construction by FY25 (see page 36).

Our accelerated delivery of timber frame homes has been

facilitated by the expansion of our new energy-efficient

Oregon timber frame production facility at Infinity Park,

Derby, which opened in 2023 and can produce a timber

frame kit for one home every hour.

Our timber frames are carefully designed and tested

through detailed 3D modelling, produced in our factories

and then transported to sites for assembly.

A factory for the future

Built through Wilson Bowden Developments,

our186,000sq.ft.OregonfacilityhasaBREEAM

“Very Good” rating and an EPC “A” rating. It

usesairsourceheatpumps,photovoltaiccells

and LED lighting to minimise its environmental

impact, and electric vehicle charging points in

10% of car park spaces to encourage colleagues

to adopt electric vehicles.

As well as enabling new lower-carbon timber

frame homes, the facility has a positive impact in

the local community and has provided new local

employment opportunities, creating c. 200 jobs

andweexpectfurtherexpansiontocreatean

additional 60 jobs.

“ Increasing our use of modern methods

of construction, including timber frames,

is a key part of Barratt’s road to net zero

carbon. Our industry-leading innovation

and sustainability teams are working

with our suppliers to challenge every

aspect of construction to reduce carbon

in the manufacture, transportation and

buildprocess.”

David Thomas,

Chief Executive

Expansion of Oregon

The new Oregon Timber Frame factory in Derby

Strategic Report Governance Financial Statements

Barratt Developments PLC Annual Report and Accounts 2024 39

Astheleadingnationalsustainablehousebuilder,we

strive to design and build resilient, low-impact homes

andcommunitiesforbetterliving.

We were the first national housebuilder to set science-based

carbon emissions targets and are proud to create a legacy

for the industry. Our strong reputation in the sector is

highlighted by our award-winning developments, our

national and local socio-economic contributions, our

collaboration with our supply chain and across the industry,

our research and innovation and our investment in skills.

All information on our strategy, targets and performance is

publicly available through our website and other publications

to allow our stakeholders to track our progress consistently

and in order to share knowledge and data to benefit the

wider industry.

Our Building Sustainably Framework

Our Building Sustainably Framework is our integrated

response to rapidly changing political and environmental

events which have continued to shape how we think about

sustainability. It is built around three pillars: nature, places

and people. It brings together our sustainability ambitions,

targets, activities and metrics to ensure that important

issues and solutions are deeply rooted in every business

decision and day-to-day action we take. Creating a positive

environmental, social and economic legacy for future

generations supports our purpose and values.

We launched our sustainability strategy in 2021, with clear

targets for nature, places and people, and against which

we are continuing to deliver. Our carbon and waste targets

are embedded in executive remuneration and bonuses;

governance and working practices are driving operational

improvements; and we are working with our value chain

partners to meet our commitments.

Building sustainably

Continuing todeliver

Our purpose is to make sustainable living a

reality, building strong communities.

Nature

We preserve and

enhance the natural

world by using resources

responsibly, building

resilient, low-carbon

homes, and by creating

places where people and

naturecanthrive.

Places

We design and build

greatplacesthatmeetthe

highest standards, and

that promote sustainable,

healthy and happy living for

our customers.

People

We believe everyone has

the right to be respected

and treated fairly at work.

We do the right thing,

nurturing diverse talent and

prioritising the health and

safety and wellbeing of our

people and partners.

Building

Sustainably

For further data regarding our

sustainability performance, visit:

www.barrattdevelopments.co.uk/

building-sustainably/performance-

data/data

For more information on our

sustainability targets and our

performance against our framework

under each pillar, visit:

www.barrattdevelopments.co.uk/

building-sustainably

Strategic Report Governance Financial Statements

40 Barratt Developments PLC Annual Report and Accounts 2024

How we do it together

Our supply chain partners are critical to our long-term

success, both delivering our growth plans and on our

shared journey to net zero. Our Board, Executive team

and procurement specialists engage annually with our

supply partners, sharing our plans and seeking out

sustainable improvements.

Chief Executive, David Thomas speaking at the supplier conference in Birmingham

Leadership and collaboration

• We have established relationships with leading

organisations including NGOs, landowners, financial

institutions and lenders, as well as our supply chain.

We are also actively engaging Government via the Net

Zero Council, UK Business Council, Net Zero APPG, the

Missions Network and one-to-one meetings.

• The years ahead will be turbulent and it is important

that we navigate political and societal changes. There

is political uncertainty around ‘net zero’, a shortfall in

skills needed to achieve a just transition (a transition to a

green economy that is fair and inclusive) and not enough

consumer understanding of the benefits of and incentives

for purchasing energy-efficient homes.

• We are providing leadership and expertise to the Future

Homes Hub, a joint industry and Government initiative,

designed to deliver a whole industry transition to net

zero. A key focus of the Future Homes Hub this year

has been whole life carbon in new homes, species

enhancement measures and water efficiency.

• Our Chief Executive chairs the Hub and our Head of

Mortgage Lender Relations chairs the Valuation group,

whilst our Head of Biodiversity chairs the Biodiversity Net

Gain working group.

We do it together

As of May 2024, we have,

forthefirsttime,received

a Negligible ESG Risk

rating by Sustainalytics –

the only homebuilder to be

ratedasthis.Wearefirst

out of 83 homebuilders,

and in the third percentile

in the “global universe”

ofallthecompaniesthat

Sustainalytics assesses

(375th out of 16,009).

Assessed as AAA by MSCI

which categorises us

as a ‘leader’ in the Real

Estate Development

anddiversified

activities industry.

We achieved Prime

Status in the 2024 ISS

ESG ratings and ranked

jointfirstintheglobal

construction industry.

In 2024 we submitted our

Enhanced Communication

on Progress. We are one of

only two UK housebuilders

to participate in the UN

Global Compact and the

only one to submit an

enhanced disclosure.

Building sustainably continued

41Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Building sustainably continued

Leadership and collaboration

continued

Sustainability governance

An established and robust governance structure

underpinsoursustainabilitystrategy.Wecontinueto

embedsustainabilityintoourleadershipdecisionsand

day-to-day business activities. We have a clear process,

from identifying our most material issues to the operational

delivery of action plans, across each of the three framework

pillars and their corresponding priorities. Our approach

allows us to create supporting work streams, which drive

our implementation plans and create clear accountability

around each priority.

The Board delegates day-to-day delivery of our framework

to the Sustainability Committee, which is supported by

operational cross-business working groups. In 2024, the

Board was updated on human rights risk, our science-

based targets review and the activities of the Sustainability

Committee. Regular monitoring of targets enables us to

continually identify and re-prioritise areas for improvement.

Materiality

In FY24, we finalised our latest materiality assessment

to evaluate the relative importance of key sustainability

issues to our stakeholders, ensuring our building

sustainability strategy remains relevant and fit for the

future. Our review involved comprehensive engagement

with a wide range of internal and external stakeholders,

including in-depth interviews and online surveys to

understand the issues that mattered to them. This

was complemented by an independent review of the

strengths, weaknesses, opportunities and threats

of our sustainability strategy and a review of the

regulations that are likely to impact us. The outputs

were then further validated using an independent

expert. We are integrating the outcome of our

materiality assessment into our strategy.

Read our Materiality Report at

www.barrattdevelopments.co.uk/building-

sustainably/stakeholder-engagement/what-

matters-most

Creating wildlife-friendly spaces

What Matters Most

Our Materiality Report 2024

For more detail on sustainability governance

seewww.barrattdevelopments.co.uk/

building-sustainably/managing-sustainability

During FY24, we further developed our internal reporting

mechanisms, enabling divisional management teams to

benchmark and monitor carbon and energy performance at

site level via dashboards to put performance improvements

in place where they are most needed. Our Human Rights

Steering Committee also met for the first time. Its purpose

is to provide ongoing oversight of our Human Rights

Implementation Framework.

Strategic Report Governance Financial Statements

42 Barratt Developments PLC Annual Report and Accounts 2024

Carbon reduction

Driving carbon emissions

reductionacrossour

homes, our own operations

and our supply chain

through innovation,

collaboration and high-

quality design.

Biodiversity

and nature

Creating a legacy of

resilient landscapes and

communities, delivering

net gains for biodiversity

and contributing to the

conservation of local

biodiversity priorities.

Natural

resources

Maximising the value of

materials and preserving

natural resources at each

stage of our value chain

through responsible

sourcing and efficient

management.

Our journey on nature,

places and people

• Over 7,500swiftbricks

installedtodateaheadofour

target for reaching this at the

end of FY25.

• RSPB wildlife-friendly

Show Home Garden

Schemes launched.

• All of our sites submitting

their first principle planning

application since January

2023 have biodiversity plans

in place, demonstrating a

minimum Biodiversity Net Gain

(BNG) of at least 10% – ahead

of regulation which came into

effect in February 2024.

• In 2024, celebrated ten‑year

partnership with RSPB.

• Nature-related supply chain

risks and opportunities

discovery work underway.

• Sponsored RSPB’s Nature on

YourDoorstepscheme.

• Develop species enhancement plans

to provide supportive habitats for

priority species on developments.

• Install hedgehog highways and

batbricksonsites.

• Taskforce on Nature-related Financial

Disclosures partial disclosure in 2025.

• Achieved elimination of single

use plastic merchandising

products from Group suppliers.

• Homes designed to use a

maximum of 105 litres of water

per person per day – 16% lower

than building regulations.

• Water footprinting programme

commenced in 2024.

• Construction waste intensity

reduced by 46% since

2015. Construction waste

performance incorporated

intotheCompany

bonus in 2020.

• 98.8% of timber

certifiedsustainable.

• Timber frame now standard on

new Barratt home designs.

• Offsite-based products and

systems in 33% of homes.

• Establish a best-in-class water

resilience roadmap.

• Improve measurement of water

consumption on sites and

targetreductions.

• Implement opportunities

identifiedtoreduceproduct

andmaterialspackaging.

• 100%ofcarfleetdieselandpetrol

free by 2028.

• 100% of completed homes zero

carbonby2030.

• Net zero across our value

chain by 2040.

See further detail in our transition plan on

page82

Journey to date

2025–2030

Nature

• First housebuilder to set carbon

reduction targets validated

by the Science Based Targets

initiative in 2020.

• Scope 1 and 2 carbon

performance is incorporated

into the Group LTPP in 2021.

• 94% of own electricity

onrenewabletariffs.

• Scope 1 and 2 (operational)

carbon emissions reduced by

50% from 2018 levels.

• Our flagship zero carbon

concept home – Zed House –

opens in 2021.

• eHome2 opens in 2022.

• 78% of car fleet are electric or

hybrid vehicles.

Building sustainably continued

43Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Our socio-economic footprint

Building sustainably continued

Places

People

• Great Places design

manual, which

reflects the Building

for Life 12 guidance,

launched in 2009.

• Landscape handbook

launched in 2022 to

guide the development

process towards

creating landscapes

that will enhance our

developments,and

successfully deliver

biodiversity net gain.

• Worked to bring the UK’s

first green mortgage

product to the market

recognising the advantages

inherent in new homes –

we continue to promote

the advantages of

these to policy makers

andcustomers.

• Inclusive Play Guidance

developed in partnership

with Whizz Kidz launched

in 2024. Inclusive show

homes launched the

same year.

• Update Great Places

criteria to be in line

with Building for a

Healthy Life.

• Launch Social

Value Toolkit.

• Publish our Human

Rights Policy.

• Focused delivery of our

People Promise.

• Target to increase

ethnicity representation

in the direct reports

to the Executive

Committee.

• Future/green skills

development.

• Engaged with 10,000

secondary school

and college students

in-person, through

classroom workshops,

assemblies, and careers

fairs, in 2023-2024.

• Leading inclusively

workshops delivered

to all 300 top leaders

across the Group.

• Gender pay gap below

UK average, ethnicity pay

gap also reported.

For further detail on our

progress and achievements

onour people strategy, see

pages 30 to 32

Great places

Designing and building

great places that meet

the highest standards,

and that promote

sustainable, healthy

and happy living for

ourcustomers.

Building

communities

We commit to our

belief that everyone

has the right to be

respected and treated

fairly at work. We

do the right thing,

nurturing diverse

talent and prioritising

the health and safety

and wellbeing of our

people and partners.

Journey to date

2025–2030

Discover more about our

sustainabilityperformance:

Our Sustainability Accounting

Standards Board (SASB Disclosure)

For further details on the

positive impact we have on

thecommunities in which

weoperate, please see our

Socio-economic footprint at:

www.barrattdevelopments.co.uk/

~/media/Files/B/Barratt-

Developments/sustainability/

fy24-group-socio-economic-

footprint.pdf

Please see our SASB

Disclosurefor industry-specific

sustainabilitymetrics published

under SASBguidelines at:

www.barrattdevelopments.co.uk/

~/media/Files/B/Barratt-

Developments/sustainability/

fy24-sasb-disclosure.pdf

Employment and skills development

Barratt Developments PLC 2024 Socio-Economic Footprint

The infographic below provides an illustration of the social and economic contribution made by the Barratt Group to people, places and nature for the financial year 2024.

The assessment was carried out by independent experts who analysed socio-economic impacts through the delivery chain for new housing based upon Barratt Developments datasets, published research

and national statistics. All figures are based in the financial year ending 30th June 2024 and include joint venture home completions in which the Group has an interest. For full details of the methodology

used please see www.barrattdevelopments.co.uk/building-sustainably/our-publications-and-policies/publications.

In 2024, 100% of our developments actively contributed to community infrastructure. The Group totals are outlined below:

✽ EPC (Energy Performance Certificate) measures the energy efficiency of homes on a scale of A to G.

♦ PEFC (Programme for the Endorsement of Forest Certification) and FSC (Forest Stewardship Council) are the two leading sustainable forestry certifications.

Places

Support for charitiesInvestment in local infrastructure

£150m

local contributions including

s106 and equivalent

contributions such as the

Community Infrastructure Levy

4,632

school places

provided

local facilities including

sports and leisure,

health, youth and

community centres

£6.4m

charitable donations including company

donations, employee fundraising and

supplier sponsorship, made directly or via

the Barratt Foundation

14,515

hours of employee

volunteering

£253m

spending in shops and services

by residents of new homes

(p.a.) supporting 2,488 retail

and service-related jobs (p.a.)

£536m

expenditure on physical works benefitting

local communities (including highway and

environmental improvements, affordable

homes and community facilities)

Investing in new homesSustainable placesSupporting public services

£42.9m

New Homes Bonus paid

by Government to Local

Authorities as a result of

homes built by the Group

£3 18.7m

tax generated by our

activities through

Corporation tax, NI, PAYE,

SDLT and local council tax

£647m

of land approved

for investment

2,990

affordable new homes (including joint

ventures) with a total market value

of £507.7m, sold at 50.9% below the

average private new house sold

14,004

new homes (including

joint ventures) with a

total market value of

£4.32bn

99.8%

homes built to

EPC✽ A and B

4,732

electric vehicle

charging points

installed

3,449

homes with access to

renewable energy sources,

including solar thermal

panels, solar PV and air

source heat pumps

7,4 3 4

homes with

cycle storage

3.64

tonnes of construction

waste per 100m.sq.

house build equivalent,

a 46% reduction against

our 2015 benchmark of

7.09 tonnes/100m.sq.

98.78%

sustainably certified

timber

♦

Enhancing biodiversity and greenspace provision Managing our impac t

70%

of developments

designed with

landscape-led, above

ground, Sustainable

Urban Drainage Systems

9,486

priority species

enhancements installed,

including 1,730 swif t

nesting bricks, 6,090

hedgehog highways and

897 bat boxes

sites (100% of sites excluding JVs) with

a 10% minimum biodiversity net gain

submitted for planning:

22% for

area habitats

41% for hedgerow

habitats

125% for

river habitats

1.26

tonnes of CO2e emissions

per 100m.sq. completed

build area (scope 1 and 2).

A reduction of c.21% on the

previous year and c.34%

from our 2018 benchmark

RSBP

showhome

gardens

certified

Nature

407ha

of green space created

through public open

space and private

gardens (the equivalent

of 581 football pitches)

People

£2.95bn

of Gross Value Added (GVA),

the Group’s contribution to

UK economic output

40,157

direct, indirect and induced

employment through the Group,

its sub-contractors and suppliers.

Equivalent to 2.9 jobs per dwelling

5,434

sub-contractor

companies supported

(including through

joint ventures)

5,580

supplier companies

supported (including

through joint ventures)

Supply chain partnerships

90%

centrally sourced components which

are assembled or manufactured in

the UK, supporting local jobs

353

graduates, apprentices and

trainees on programmes.

This contributes an estimated

£3.84m to wider economy

£3 .14bn

total value of spend with suppliers

and sub-contractors, contributing

£4.16b n to the national economy

Strategic Report Governance Financial Statements

44 Barratt Developments PLC Annual Report and Accounts 2024

The information below is intended to help stakeholders

understand our position on these key non-financial

matters. We have considered these non-financial

matters and disclosed in the relevant sections, when

determining what information should be included in

the Annual Report and Accounts, the information needs

of different stakeholders and their relative importance

as well as the relevant time horizons in each matter.

The following complies with the non-financial reporting

requirements contained in Sections 414CA and 414CB

of the Companies Act 2006.

Description of the business model

Our business summary 8

Our business model 10

Non-financialkeyperformance

indicators relevant to

the company’s business 12

Social matters

Market review 16

Our sustainability

focus areas 40

Affordability 20

Employees

Development and training 30

Diversity 31

Wellbeing 31

Gender pay gap 31

Employee engagement 50

Board diversity 106

Human rights

Human rights 32

Third parties 32

Anti-bribery and corruption

Group policy 32

Working with suppliers 56

Environmental matters

Waste 37

Building sustainably 40

Climate-relatedfinancial

disclosures 71

Greenhouse gas

emissionsdisclosure 80

Policy, due diligence

andoutcomes

Risk management 63

Principal risks 65

Long-term viability

statement 85

Audit and Risk Committee 112

Our sixth integrated report

We are committed to being a sustainable and responsible business.

This is demonstrated in this integrated Annual Report. Our focus is the

connection of economic, environmental, social and governance matters

to create and preserve long-term value for all our stakeholders.

For a detailed description of our approach to integrated reporting,

go to page 217

Notice regarding limitations on Directors’

liability under English law

Under the Companies Act 2006, a safe harbour limits the liability

of Directors in respect of statements in, and omissions from, the

Strategic Report contained on pages 1 to 87 and the Directors’ Report

contained on pages 88 to 148. Under English Law, the Directors would

be liable to the Company (but not to any third party) if the Strategic

Report and/or the Directors’ Report contains errors as a result of

recklessness or knowing misstatement or dishonest concealment of

amaterialfact,butwouldnototherwisebeliable.

Strategic Report and Directors’ Report

Pages 1 to 87 inclusive comprise the Strategic Report and pages 88

to 148 inclusive comprise the Directors’ Report, both of which have

been drawn up and presented in accordance with, and in reliance on,

English Company Law. The liabilities of the Directors in connection

with the reports shall be subject to the limitations and restrictions

provided by such law.

Cautionary statement regarding

forward-lookingstatements

The Group’s reports, including this document and written information

released,ororalstatementsmade,tothepublicinthefutureby,or

on behalf of, the Group, may contain forward-looking statements.

Although the Group believes that its expectations are based on

reasonable assumptions, any statements about future outlook may be

influencedbyfactorsthatcouldcauseactualoutcomesandresults

tobemateriallydifferent.NothingcontainedinthisAnnualReportor

ontheGroup’swebsiteshouldbeconstruedasaprofitforecastoran

invitation to deal in the securities of the Company.

Assurance over non-financial data

Deloitte LLP have provided independent third-party limited assurance

in accordance with the International Standard for Assurance

Engagements 3000 (ISAE 3000) and Assurance Engagements on

Greenhouse Gas Statements (ISAE 3410) issued by the International

Auditing and Assurance Standards Board (IAASB) over selected non-

financialmetrics.ForDeloitte’sfullunqualifiedassuranceopinion,

which includes details of the selected metrics assured, our full

Carbon Reporting Methodology Statement, our ESG Basis of Reporting

and a full breakdown of scope 3 GHG emissions, see our website:

www.barrattdevelopments.co.uk/building-sustainably/our-publications-

and-policies/publications

Anson Gardens, Fradley

Non-financial

and sustainability

information statement

Non-financial and sustainability information statement

Strategic Report Governance Financial Statements

45Barratt Developments PLC Annual Report and Accounts 2024

Section 172 Statement

When setting and pursuing our strategy, it is essential that

we consider the interests of our key stakeholders and the

consequences of our decisions in the long term. Our strong

governance framework and robust decision-making process

ensure that the interests of our key stakeholders are

considered and debated to determine the best course of

action to promote the long-term success of the business.

Our stakeholders

Whilst we engage with a wide range of stakeholders in the

day-to-day running of our business, we consider our key

stakeholders to be those:

• which are significantly affected by our actions and

decisions; and/or

• whose actions and decisions significantly affect our

business model and strategy.

The Board reviews the Company’s key stakeholders on an

annual basis to ensure that they remain appropriate and

consider whether there are any new stakeholders which

should be taken into consideration as part of the Board’s

decision-making process. The Board conducted this review

in May 2024 and confirmed that the key stakeholders

continue to be those set out on pages 50 to 57.

We recognise that effective engagement is

essential to:

• understand what matters most to our key

stakeholders;

• understandthelikelyimpactofkeydecisionsonour

key stakeholders; and

• influence their decisions that could affect our

business model and strategy.

Details of how we engaged with our key stakeholder groups

during the financial year can be found on pages 50 to 57

Section 172 Statement

Stakeholder relationships are a key source of value

that help us to ensure the long-term sustainable

success of the Company.

To ensure that engagement remains effective, the Board

reviews key metrics and performance indicators for the

various engagement activities throughout the year. In

addition to this, in May 2024 the Board considered the

overall effectiveness of the engagement activities as part

of its key stakeholder review process and as part of the

Board evaluation process described on page 109 and, whilst

satisfied that engagement remained effective for fostering

the Company’s business relationships, the Board agreed

that it would be useful to strengthen its understanding of

stakeholder interests and concerns during uncertain market

conditions and the integration period.

Furthermore, as part of the annual Board evaluation

process, Board members considered the effectiveness

of the Designated Non-Executive Director for workforce

engagement mechanism and concluded that, whilst the

process remains appropriate, it would be useful for all

Non-Executive Directors to have more direct engagement

with employees across the organisation.

We appreciate that there may be times when conflicts

arise between different stakeholder groups and that it is

not always possible to provide positive outcomes for all of

them. In such circumstances, we seek to understand the

needs and priorities of each stakeholder group and decide

from the perspective of the long-term sustainable success

of the business. Our engagement activities, as described on

pages 50 to 57, enable us to understand what matters most

to our key stakeholders so that we carefully consider all

relevant factors during our decision-making process.

Most of the day-to-day decision making and stakeholder

engagement is carried out at operational level by members

of our Executive Committee and senior management team.

Our values, as set out on page 2, are closely aligned to

the matters set out in Section 172 and are embedded

in our culture and all that we do, ensuring that our key

stakeholders and the Section 172 principles are considered

during the decision-making process at all levels of

the business.

Each member of the Board is mindful of:

• their duty to promote the long-term sustainable

success of the Company for the benefit of its

shareholders; and

• the matters encompassed in Section 172 of the

Companies Act 2006, as set out on the following

page, to which they must have due regard when

making decisions.

Strategic Report Governance Financial Statements

46 Barratt Developments PLC Annual Report and Accounts 2024

Section 172 Statement continued

You can read more on how the Board had regard to each Section 172 principle, during the year, as follows:

Section 172 principles

The likely consequences

of any decision in the

longterm

The interests of the

Group’s employees

The need to foster the

Group’s business

relationships with

suppliers, customers

andothers

The impact of the

Group’s operations on

the community and the

environment

The desirability of the

Group maintaining a

reputation for high

standards of business

conduct

The need to act fairly as

between shareholders of

the Company

How the Board had regard to the principle

Relevant disclosures

• Business model: pages

10 and 11

• Trends in our market:

pages 16 to 21

• Building sustainable

homes for the future:

pages 40 to 45

• Our principal risks

and risk management:

pages 63 to 70

• Climate-related risks

and opportunities:

pages 76 to 78

• Viability Statement:

pages 85 to 87

Relevant disclosures

• Investing in our

people: page 30

• Employee engagement:

pages 50 and 51

• Our purpose and values:

pages 1 and 2

• Our culture: page 98

• Whistleblowing: page 118

Relevant disclosures

• Business model:

pages 10 and 11

• Stakeholder engagement:

pages 50 to 57

• Our values: page 2

• Non-financial and

sustainability information

statement: page 45

Relevant disclosures

• Climate-related risks

and opportunities:

pages 76 to 78

• Our purpose and values:

pages 1 and 2

• Stakeholder engagement:

pages 50 to 57

• SHE Committee Report:

pages 121 and 122

• Building sustainably:

pages 40 to 44

Relevant disclosures

• Our purpose and values:

pages 1 and 2

• Culture: page 98

• Non-financial and

sustainability information

statement: page 45

• Business model: pages

10 and 11

• Internal controls: pages

117 and 118

• Modern slavery: page 32

• Risk management:

pages 63 to 70

• SHE Committee Report:

pages 121 and 122

• Audit and Risk Committee

Report: pages 112 to 120

Relevant disclosures

• Resolutions proposed

at the AGM: pages

146 and 147

• Dividend Policy: page 61

47Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Decision making in practice

Governance framework

The Board sets the purpose, values and

strategicdirectionoftheCompany.

The Board sets key Group policies to

mandate how business is conducted at

all levels of the organisation and

delegates certain responsibilities to

Board Committees and management.

The Board sets the matters reserved for

the Board to ensure key issues of the

utmostimportanceareconsideredat

Board level.

Board composition

TheDirectorscollectivelyhaveadiverse

set of skills, knowledge, experience and

stakeholder expertise, which assists the

Board in making well informed decisions

that promote the Company’s long-term

sustainable success.

The Board comprises five independent

Non-Executive Directors to ensure

effective challenge of key decisions and

safeguard stakeholder interests.

The Board maintains a clear division of

responsibilities,withtherolesofChair

andChiefExecutiveexercisedby

different individuals.

Board discussion and decision

The Board provides rigorous evaluation

and challenge to ensure decisions made

promote long-term sustainable success.

The Board continues to receive updates

on engagement activities to understand

the impact of the decisions on key

stakeholders.

The Board receives updates on key

decisions, the actions taken to

implement them and the impact on key

stakeholders.

Board information

During their induction,

Directors receive a

detailed briefing on

their duties.

All Directors have

access to the advice of

the Company

Secretary, who is

responsible for

advising the Board on

all governance matters.

The Board receives

regular updates from

stakeholder

engagement activities

which feeds into the

decision-making

process.

The Board also

receives detailed

papers from

management and

external advisers

settingoutkeymatters

to be considered.

Access to employees

and business

operations

How the Board makes decisions

We adhere to a strong governance framework and follow a robust decision-making process to ensure

that the requirements of s172 are met and that the interests of our stakeholder groups are considered.

Significant decisions

The main activities and decisions of the Board are set out

on page 97. The following is an example of a significant

decision made by the Board during the financial year,

including details on how the decision was made and, where

applicable, how conflicts between different stakeholders

were managed.

The acquisition ofRedrow

On 7 February 2024, the Board announced that it had

reached an agreement on the terms of a recommended

all-share offer for the acquisition of Redrow plc, which

completed on 21 August 2024, with integration of the

businesses subject to the CMA formally accepting the

undertakings proposed in response to its limited concerns.

The key strategic rationale for the combination can be found on pages 6

and 7

Key inputs:

Detailed Board packs including:

• Strategic rationale

• Modelling of the

potential structure

and characterisation of

theCombination

• Synergy assessments

• Legal advice and due

diligence reports from

external counsel

• Advice from the

Company’sbrokers

• Takeover Code

considerations

• The likelihood that the

decision will promote

the long-term success

ofthebusiness

• The need to foster business

relationships with suppliers,

customersandothers

• Overviewofpotentialtargets

• Valuation considerations

• Analysis from external

competition consultants

• Analysis from financial

marketconsultants

• Shareholder analysis

• Directors’ duties and

obligations under the

TakeoverCode

• The interests of Barratt

and Redrow employees

• The impact of our

businessonthe

communityandenvironment

Section 172 Statement continued

Strategic Report Governance Financial Statements

48 Barratt Developments PLC Annual Report and Accounts 2024

Section 172 Statement continued

Decision making in practice

continued

Decision-making process

In addition to scheduled meetings, the Board (or a

Committee of the Board) convened on seven occasions

specifically to approve matters relating to the Combination

between January 2023 and February 2024. During those

meetings, the Board debated the best course of action

to promote the long-term success of the Company and

amongst other things:

• considered how Barratt could increase the volume of

homes built per annum and identified a number of

potential targets to drive growth through augmentation of

the land bank, broadening access to talent and providing

opportunities for brand diversification;

• reviewed the strategic rationale for pursuing M&A opportunities;

• considered potential targets and directed management

to focus on maintaining the Company’s differentiators

intermsofquality,serviceandsustainabilityandhow

these could be evolved to deliver more high-quality

homes for customers;

• assessed and scrutinised Redrow’s strategic and cultural

fit with the Company;

• challenged why the Combination was being pursued in

preference to other M&A opportunities;

• questioned the differentiators between Barratt and Redrow

products, customer perception of the Redrow brand and

the value of adding it to the Company’s portfolio;

• considered and sought further assurance on competition

law analysis;

• discussed potential structures of the Combination

andanydilutiveimpactsonshareholders’interests;

• considered the value of potential synergies and

challenged assumptions made;

• considered and discussed proposed financing arrangements;

• via the Disclosure Committee, determined when the

transaction had met the requisite threshold for inside

information and the steps to be taken to protect the

information from leaks and unlawful disclosure;

• considered the desirability of engaging with key

stakeholders balanced against the regulatory restrictions

on disclosing details prior to the Combination being

announced and requested that an engagement strategy

be prepared and actioned post-announcement;

• established a dedicated Committee of the Board

comprising at least two Executive Directors and two

Non-Executive Directors, one of which must be the Chair

or the Senior Independent Director, to make decisions on

the transaction as and when required; and

• considered the short and long-term impact of the

Combination on the Company’s stakeholders.

Key stakeholder considerations

The Board was mindful of the restrictions under the

Takeover Code on limiting discussions in respect of the

transaction to a limited number of parties and requested

management prepares key stakeholder communications for

release as soon as practicable after the Combination had

been announced to gain feedback and insights from our

keystakeholdersonthedecision.

Suppliers and sub‑contractors: The Combination

will provide the opportunity to realise the benefits of

significant procurement-related cost savings driven by

price harmonisation and volume-based pricing savings

across the combined group. In the long term, the combined

group’s supply chains will benefit from greater visibility and

certainty of delivery and the acceleration of development

through the deployment of the different brands and land

pipelines. This should give sub-contractors confidence to

invest in developing the skilled labour pool and production

facilities needed for the future of the sector.

Customers, local communities and the environment:

When reviewing potential targets, the Board focused on

bringing together two organisations with like-minded

cultures and a shared commitment to customers, quality

and sustainability. The combined group will enable the

Company to deliver more high-quality homes, across a

broader product range, and to accelerate the creation of

sustainable, thriving communities across the UK.

Shareholders: When considering the Combination, the

Board paid due regard to how it would likely be perceived

by shareholders, the dilutive impact on their shareholding

and the value added to their investment. The Board also

considered the likely impact on the share price and the

perception of potential investors.

Employees: Mindful of the uncertainty that our employees

are feeling due to the Combination, a comprehensive

employee engagement strategy has been implemented to

keep them updated on progress and to seek feedback on

their concerns. Further details of employee engagement

in respect of the Combination can be found on page 51.

The Board believes that, in the longer term, employees will

benefit from additional opportunities the combined group

will provide for development and from being a part of an

industry-leading homebuilder with an industry-leading

employee reward programme.

Banks: The Board were mindful of the need for the

Combination to be approved by the lenders under the

terms of the existing RCFs but understood the restrictions

on the Company’s ability to engage with them prior to the

Combination being announced to the market. A tailored

engagement programme was established to obtain the

necessary consent after the Combination was announced.

A financial back-stop facility was put in place to cover the

possibility of the RCF lenders withholding consent. This

wascancelledfollowingconsentfromtheRCFlenders

being received.

Government, opposition and regulators: The Government

and opposition’s ambition to increase the number of homes

built per year was a driver behind the Board’s decision to

look at M&A opportunities to grow the business. During the

decision-making process, the Board was mindful of the CMA’s

market study into housebuilding. Advice was sought from

external counsel and competition consultants as appropriate

and the Board was satisfied that the proposed Combination

is overall beneficial to customers and does not breach

competition restrictions.

The required information was submitted to the CMA as part

of the clearance process and the Board was kept updated

on progress throughout the transaction.

Outcome

Following careful consideration of all matters relating to the

long-term success of the Company, the Combination was

approved on 6 February 2024. The Board has continued to

receive updates on the transaction and will continue to do

so to monitor its progress and the integration of Redrow

into the Group.

49Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Stakeholder engagement

Employees

It is important that we provide our workforce systemically with

information on matters of concern to them. We consult with our

workforce or their representatives on a regular basis so that their

views can be taken into account during our decision making.

How we engage

Company engagement:

• Workforce Forum provides insight into

employee thoughts and opinions

• Emails, newsletters, webinars and

video messages

• Townhall meetings with employees and

the Board

• Annual engagement survey and pulse

surveys, with resulting action plans

• Our Place intranet site

• Our six employee networks (see page

30 for more details)

Board engagement:

• Caroline Silver, as the Designated NED

for Workforce Engagement, provides

regular updates on workplace matters

• Regular updates from:

• the CEO on topics discussed and

decisions made by the Sustainability

Committee;

• the SHE and Construction Director

on health and safety matters; and

• the Group HR Director on output

from employee surveys, the people

strategy and diversity and inclusion.

• Site visits (collectively and individually)

Output from engagement

Examples of keyinterests:

Interest: Clarity and transparency

around bonus payments

We now provide explanations of bonus

payments and have introduced regular

“Where are we?” updates on performance

against our targets.

Interest: Open and honest two-

waycommunication

We use Town Halls and the Workforce

Forum to facilitate two-way communication.

During FY24, we scheduled two additional

meetings to discuss key topics including

the output from the employee engagement

survey and the Redrow combination.

In FY24, we created a Redrow microsite to

keep employees updated on the Barratt-

Redrow combination with FAQs from our

workforce. To date, this site has had over

8,000 views.

Interest: Collaboration

To strengthen collaboration among our

employees, we are pulling best practice

ways of working into a toolkit to share

across our divisions. Divisional Directors

now share their teams’ key deliverables and

are hosting Regional Managing Director/

Managing Director breakfast meetings to

facilitate cross-team collaboration.

Our performance

77%

completion rate for the annual

engagement survey

67%

completion rate for the pulse survey

reports by whistleblowers

302

injury incidence rate per 100,000 persons

c. 2,000

colleagues joined Town Hall events

Key engagement activities

throughout the year

6 Sept 2023

Pride in the Job celebration dinner

21 Sept 2023

Annual employee recognition awards

25–30 Sept 2023

Engagement survey

25 Oct 2023

Town Hall event

2 Nov 2023

Workforce Forum

6 Nov 2023

Long service dinner

8 Feb 2024

Workforce Forum

13 Feb 2024

Town Hall event

26 Feb 2024

Workforce Forum

14 Mar 2024

Workforce Forum

20 Mar 2024

Board site visit

8 April 2024

Town Hall event

1 May 2024

Pulse survey

22 May 2024

Board site visit

Strategic Report Governance Financial Statements

50 Barratt Developments PLC Annual Report and Accounts 2024

Keeping our employees updated on the Combination with Redrow

7 Feb

Redrow

combination

is announced

to the market

7 Feb

Townhall with Senior

Leadership Team (SLT)

SLT provided with a

toolkit to support

ongoing discussions

with employees

regarding the

Combination

8 Feb

Specially

convened

Workforce

Forum (WFF)

13 Feb

All-employee

Townhall to

discuss the

Combination

14 Feb

CFO hosts

Townhall in

Group head

office

8 April

All-employee

Townhall

including

update on the

Combination

15 May

Update from

CEO confirming

approval of

Combination by

Barratt and

Redrow

shareholders

24 July

Update

onthe

Combination

given at a

scheduled

WFF

14 June

Update from

CEO, with details

of Competition

and Markets

Authority (CMA)

starting Phase 1

review and what

this means

19 August

Update from

the CEO on

completion

of the

Combination

8 August

Update from

the CEO on

the CMA’s

Phase 1

review

14 Mar

Update

on the

Combination

given at a

scheduled

WFF

19 April

Update from

CEO confirming

the prospectus

and circular

issued

10 June

Update from

CEO detailing

next steps

and new

integration

team

Keeping our employees updated

After we announced our combination with Redrow, we rolled

out a comprehensive employee engagement programme for

all our colleagues.

Any period of change can cause feelings of uncertainty,

anxiety and confusion, so we wanted to keep them updated

throughout the transaction process, as well as answering

their questions and concerns. Our Workplace Forum and

Townhall meetings were key to keeping open dialogue

with employees on the Combination. We reassured them

that they would be updated with progress regularly and

were open and transparent if we were unable to answer

specific queries.

Our proactive approach helped to mitigate the risk of

rumour and speculation and avoid undue distress, so our

employees could focus on their role and deliver for the

business as usual. The timeline below summarises our key

employee engagement activities ahead of the combination.

Employees continued

Designated Non-Executive Director

forworkforce engagement

Following her appointment as Chair in June 2023, Caroline

Silver took on the role as the Designated Non-Executive

Director for workforce engagement in July 2023 to facilitate

the ongoing communication channels between the Board

and our employees. She also ensures that employees’

views are communicated to the Board and taken into

consideration when making decisions. As part of her

role as Designated Non-Executive Director for workforce

engagement, she regularly meets with the workforce to

gather their views through a variety of formal and informal

channels to identify areas of concern and feed them back

to the Board to consider.

Employees can directly contact the Designated NED

for Workforce Engagement on any matters relating

to the workplace on a confidential basis through a

dedicated email address.

We do it together

Workforce Forum

Our Workforce Forum is an important tool for providing insight to

what matters most to our employees. We have 23 Forum members

includingChiefExecutiveDavidThomas,ChiefOperatingOfficer

Steven Boyes and Group HR Director Sally Austin. In selecting

members of the Forum, we aim for diversity in terms of grade,

region, gender and ethnicity. In FY24, we appointed six additional

Forum members to strengthen its overall composition. Each

memberservesforthreeyearsbeforetheyarereplaced.

The Forum agrees an annual agenda, which includes matters

raised by employees either through Forum representatives or via a

dedicated email account. Caroline Silver, our Designated NED for

Workforce Engagement, attends at least one meeting each year.

Examples of topics raised recently include communications and

how to best reach employees at site level, our health and wellbeing

offer,femalePPEandtheRedrowcombination.

The Forum usually holds three scheduled meetings a year; in FY24,

we amended the timing to align better with our business timetable,

meaning that the third scheduled meeting was rescheduled for July

2024totieinwiththeendofthefinancialyear.DuringFY24,the

Forum held two ad hoc meetings to discuss the Combination and

our employee engagement survey outcomes.

Making positive change through the

Workforce Forum

Following Forum discussions, in FY24 we have:

Communications

• Piloted giving our site employees without a work email or

equipment access to “Our Place” intranet

• Implemented HR roadshows across sites to talk through employee

benefits we offer, resulting in an increased uptake of our pension

• Started to summarise Forum meetings, for members to share

with their colleagues

Health and wellbeing

• Reviewed the process for our mental health first aiders, and

developed support via regional leads to ensure they receive

independent support

Female PPE

• HSE and procurement teams have updated PPE provisions,

resulting in an updated catalogue for employees, including

provisions for women

Stakeholder engagement continued

51Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Stakeholder engagement continued

Customers

It is important that we listen to our customers so that we are able

to meet their needs and continue to deliver high standards for

quality and service.

How we engage

Company engagement:

• Trustpilot and National New Homes

Customer Satisfaction Survey

• Social media community management

andlistening

• Focus groups to identify design

features and benefits that

customers value

• Interviews

Board engagement:

• Receives annual updates on

the customer journey from the

Chief Executive and the Sales

and Marketing Director, covering

customerengagementandexperience

• Receives updates on customer

satisfaction ratings, resolutions

and insights

Output from engagement

Examples of keyinterests:

Interest: Affordability

We have determined new ways of helping

customers to better understand cost

savings through purchasing a new build

home. We have also introduced new

incentives and selling schemes to help

customers with affordability challenges,

such as the Kickstart Shared Ownership

Scheme and the Own New Rate Reducer.

We have upskilled our sales teams and

provided them with tools to guide our

customers facing a range of financial

circumstances through the homebuying

process and to explore purchase

optionsavailable.

Interest: Lower energy bills

We are prioritising lowering energy

bills for our customers and maximising

energy-efficiency communications at key

points in the customer journey.

We have trained our sales advisers and

marketing teams so that they are equipped

to give high-quality, accurate and consistent

information on the sustainability attributes

of our homes and developments.

During FY24, we developed an easy-to-use

sustainability toolkit for our colleagues, and

a customer-facing sustainability brochure

which we will launch in FY25.

First-time buyer Louise Kellaway-Moore in her new home

How we measure effectiveness

5 star

on the eight-week HBF National New

Homes Customer Satisfaction Survey for

the 15th consecutive year – meaning at

least 90% of our customers are willing to

recommend us to a friend

Nine-month

NHBC National New Homes Survey

measures the satisfaction of our

customers after being in their new home

foraperiodofninemonths.Thisis

included as a metric in the annual

bonus scheme

4.4

Trustpilot score

(FY23: 4.4)

Over 9,600

interactions with in-market consumers

Helping customers

through the

homebuying process

Louise Kellaway-Moore had always

dreamed of buying her own home and

finally found the perfect place to live

with help from our Kickstart scheme.

Louise said:

“ I had always wanted to buy a new-build house.

I did my research and came across the David

Wilson Homes development at Niveus Walk. In

discussion with Katrina, the sales manager, I

found out about David Wilson Homes’ Kickstart

scheme,whichofferscustomersthechanceto

buy a share of the property, meaning that the

deposit and mortgage are lower, which makes

itmoreaffordableforfirst-timebuyers.The

whole process has been amazing. The way in

which David Wilson Homes helped me through

the paperwork and explained each part of the

process couldn’t have been better. They have

been phenomenal every step of the way.”

For more information on Kickstart, David Wilson

Homes’ shared ownership scheme, visit:

www.dwh.co.uk/offers/shared-ownership-

kickstart/

We do it for our

customers

Strategic Report Governance Financial Statements

52 Barratt Developments PLC Annual Report and Accounts 2024

How we engage

Company engagement:

• Investor roadshows

• Individual investor meetings

• General meetings

• Shareholder circulars

• Responding to individual

shareholder queries

• Development site visits for

shareholders and investors

Board engagement:

• The Board receives regular updates

from the Investor Relations Director,

including feedback from shareholders

and analysts

• Board members sought feedback from

shareholders following the Redrow

combination announcement

• The Chief Executive updates

shareholders on our performance at

our Annual General Meeting, where

the Board is also available to answer

questions

Shareholders

Investor interactions in FY24

July

August

September

October

November

December

January

February

March

April

May

June

9 7

0 0

94 29

7 4

127 41

51.9%

48.1%

7.6 %

46.1%

46.3%

4 2

111 28

0 0

38 20

12 3

27 9

40 13

Meetings with investors

Number of investors attending

Our performance

65.7%

of the share register voted at the AGM

70.4%

of the share register voted at the GM

156

meetings with investors

469

individual investors met

53.7%

of our shareholder base engaged

in meetings

Output from engagement

Examples of keyinterests:

Interest: Changes in homebuyerdemand

We research local market conditions and

build in locations with strong customer

demand. The Board is focused on growing

our land portfolio and securing planning

consents to build a portfolio of attractive

sites ready to market once demand recovers.

Interest: Dividend strategy andthe

potential to return surplus capital

The Board believes that excess capital should

be returned to shareholders when appropriate

and periodically reviews our Dividend Policy

and potential surplus capital returns.

The Board approved an interim dividend

of 4.4 pence per ordinary share and

recommended a final dividend of 11.8 pence

per ordinary share.

Interest: Issues related tolegacy

properties and associated

financialimpact

Our dedicated Building Safety Unit

investigates legacy buildings and reviews

ongoing remedial work, investigations and

valuations. During FY24, we identified

26 buildings requiring potential remedial

works. Provisions held in respect of legacy

buildings at 30 June 2024 totalled £730.3m

(30 June 2023: £612.3m).

See pages 24 and 116 for further details

Our Audit and Risk Committee tests and

challenges assumptions on estimated costs

and we keep shareholders updated via

regular market announcements.

Interest: Sustainability matters

andthepotential impact of the

FutureHomes Standard

During FY24, we responded to the Future

Homes Standard consultation to inform

future standards, based on our extensive

research into different fabric efficiency

standards and new technology. We also

referred to our industry-leading research

and innovation function and the findings

from the Zed House and eHome2.

Investor meetings

attended

Shareholder base meeting

engagement

Board members and Group IR Director

Group IR Director and/or senior management team

Shareholder base not met including passive and

index-related shareholdings

Listening to our shareholders is key for retaining long-term

investment and attracting new investors to the Company.

Stakeholder engagement continued

53Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Stakeholder engagement continued

During FY24, our Chief Executive

continued to Chair the Future

Homes Hub.

Find out more about the Future Homes Hub

and how it facilitates collaboration between

businesses in the new homes sector and the

Government to meet the climate and

environmental challenges ahead by visiting

its website www.futurehomes.org.uk/

Our performance

site visits

Government,

opposition parties

and regulators

It is essential that we engage with the Government,

opposition parties and regulators so that they understand the

challenges faced in the construction industry and the likely

implicationsofcurrentandproposedpolicies.

How we engage

Company engagement:

• Membership of organisations

that facilitate engagement with

politicalstakeholders

• Site visits from key political

stakeholders

• Writing to political stakeholders

• Participating in policy consultations

Board engagement:

• Meetings between our Chief Executive

and senior politicians (Government and

opposition parties)

• The Chief Executive provides updates

at each Board meeting on engagement

activities, including the extent policy

and legislative changes accord with

ourrepresentations

Output from engagement

Examples of keyinterests:

Interest: Energy efficiency and reducing

carbon emissions

The Board supports more research and

development on sustainability in housing

to better understand Barratt’s appetite

and ability to innovate and set its strategic

direction. During FY24, the Board approved

revised science-based targets for all three

scopes of greenhouse gas emissions.

See page 81 for more details

We do it together

Sir Keir Starmer and Angela Rayner on a site visit

Helping Government

understand theindustry

In February 2024, Sir Keir Starmer and Angela

Rayner visited our Rose Place and The Lilies

in Shrewsbury to showcase their support

for the housebuilding industry. During the

visit, they spoke about their plans for the

economy, the ineffective planning system and

how hard it is for many first-time buyers to

afford a home. Operations Director Michaela

Lancaster and Regional Managing Director

David Hesson spoke with both politicians

about the support we offer customers

through schemes such as the Kickstart

Shared Ownership Scheme and the new Own

New Rate Reducer Scheme. During the tour,

they were shown homes in different stages

of the build process and met apprentices

working on site. The visit provided a good

opportunity to explore what new policies

could help boost housebuilding to address

the shortage of homes in the UK.

Interest: Construction quality

The Board recognises construction quality

and innovation as a principal risk and

takes appropriate steps to ensure that

Barratt manages and mitigates any quality

concernseffectively.

See page 67

Throughout FY24, we maintained our

unwavering attention to build quality.

For a fifth consecutive year, we were

rated industry leader among the major

housebuilders by the NHBC, registering

the lowest Reportable Items per NHBC

inspection at 0.13.

See page 35

We monitor and publicly report on our

quality performance, and our Remuneration

Committee uses this information to feed

into appropriate quality-related metrics for

our Executive Annual Bonus Plan.

See page 137

Interest: Competition in

thehousebuilding market

We are pleased that the Competition and

Markets Authority (CMA) study into the

housebuilding market recognised that the

majority of dysfunction in the sector arises

from the planning system and funding

difficulties facing local authorities. We are

co-operating with the CMA on the Barratt–

Redrow combination, and its investigation

into the sharing of information within the

housebuilding industry.

See page 4

Interest: Supply and planning.

The delivery of new homes is inextricably

linked to the planning system.

Our solutions to address the dysfunctional planning

system can be found on page 17

Government consultations

responded to

Strategic Report Governance Financial Statements

54 Barratt Developments PLC Annual Report and Accounts 2024

Banks

How we engage

Company engagement:

• The Chief Financial Officer and

Group Treasurer regularly engage

with each bank in our RCF and USPP

investors, including calls after each

trading update, financial results

announcements, and at least one site

visit each year

• Our Head of Mortgage Lender Relations

holds regular meetings with the top

ten mortgage lenders, supported by the

Executive Directors

Board engagement:

• The Chief Financial Officer and the

Chief Executive provide regular updates

on engagement activities with RCF

banks and mortgage lenders, and

onresultingactions

Our facilities

£700m

committed RCF

£200m

fixed rate Sterling USPP notes

Output from engagement

Examples of keyinterests:

Interest: Energy-efficient homes

We work with mortgage lenders to promote

the benefits of new, energy-efficient homes

by engaging with them and their appointed

surveyors through meetings and visits,

including visits to Energy House and Oregon

Timber Frame factory.

Interest: Viability of green mortgages

As the leading national sustainable

housebuilder,wehaveadualapproachto

green mortgage development.

We work with mortgage lenders to

develop enhanced mortgage products that

recognise the advantages of our new build,

energy-efficient homes. Also, through

Government engagement and the Future

Homes Hub, we are working to understand

how the sustainable benefits of new

homes can be recognised in the mortgage

valuation process.

See page 29 for further details

Currently, approximately 57% of lenders

provide green mortgages: two of these

lenders take the savings from lower energy

bills and energy efficiency into account

when assessing mortgage affordability.

Interest: New high loan to

valuelending products for

ourcustomers

Together with lenders we are developing

products to expand the options available

for customers with a 5% deposit, through

expanding unsupported 95% lending and via

the Deposit Unlock scheme.

Volunteers at City of Trees

Sir Keir Starmer and Angela Rayner on a site visit

Engaging with our banking partners is key to ensure that we

havesufficientfinanceandworkingcapitaltosupportthe

business. It also helps identify ways we can collaborate to

support mutual customers.

Building stronger

relationships with our

banking partners

On 19 June 2024, the Barratt Treasury

team, supported by our Chief Financial

Officer, Group Investor Relations

Director and five banking partners

(lending participants in the Group RCF

and USPP) took part in a community

day maintaining approximately 200

trees. Working in partnership with

City of Trees – Manchester, this event

helped contribute to the organisation’s

overall tree-planting goals. The trees

will benefit from the valuable care

and effort made on the day. Our

contribution made a huge difference by

increasing biodiversity, making urban

environments more resilient to climate

change and helping create green

spaces to boost community wellbeing.

We do it together

Stakeholder engagement continued

55Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Stakeholder engagement continued

Output from engagement

Examples of keyinterests:

Interest: Health and safety onour sites

Safety is a key Group priority. The Board

receives regular updates on safety

performance and during FY24 requested an

external effectiveness review of the Group’s

SHE policies, procedures and processes.

The outcome was reported back to the

Board, with the reassurance that our SHE

processes and practices are appropriate

and remain fit for purpose.

Interest: Sustainability and carbon

reduction strategies

During FY24, we continued our engagement

with suppliers on our sustainability

priorities and improved our supply chain

carbon emissions data. Twenty suppliers,

covering approximately 50% of our

emissions from materials (according to a

spend-based model) shared their carbon

emissions data and reduction strategies so

we can better understand how these align

with our net zero plans.

See pages 81 to 84 for our net zero transition plan

Our engagement enables the Board to

understand the challenges faced in collating

data to measure scope 3 emissions and

progress against our targets.

Interest: Being paid in a timelymanner

We are mindful of the pressures uncertain

market conditions place on our suppliers

and sub-contractors, and are committed

toadheringtothePromptPaymentCode

toeasetheirconcerns.From1July2023

to 31 December 2023, the average time

taken to pay invoices was 26 days and the

average time for the period 1 January 2024

to30June2024was27days.

Supporting our

sub-contractors

In September 2023, our North East

division hosted a seminar attended

by22sub-contractors.Duringthe

seminar, they discussed our Service

Level Agreement (SLA) and Code of

Conduct for all sub-contractors and

held an open forum to encourage

feedback. Conversation also focused

on addressing customer complaints,

doing things right the first time,

resolving issues in a timely manner

and how the division and our

sub-contractors can support each

other. Following the seminar, we

implemented changes including:

• contractors issuing tool box talks to

all operatives to review the SLA and

Code of Conduct;

• sending out monthly reports

regarding outstanding defects to

ensure all contractors are aware of

defects; and

• tool box talks with site management

teams to stress the importance of

weekly sub-contractor meetings to

discuss ongoing customer care.

Suppliers and

sub-contractors

How we engage

Company engagement:

• Annual Supply Chain Conference with

key Group suppliers

• Divisional sub-contractor and supplier

days to discuss Local Plans

• Supplier and sub-contractor

workshops, meetings and seminars

Board engagement:

• The Chair spoke at and other Board

members attended the Annual Supply

Chain Conference

• The Chief Operating Officer provides

a supply chain update, including

availability of materials and services to

support our build delivery programme

and sub-contractor performance at

each Board meeting

• The Group Procurement Director

attends the Board meetings to update

on suppliers and supply chain risk

• Reviewed and approved our Modern

Slavery Statement, which sets out

actions taken to mitigate the risk of

modern slavery in our sub-contractors’

operations and our supply chain

Our performance

161

attendees at our Annual Supply

ChainConference

147

suppliers with membership of the Supply

Chain Sustainability School

Over 53

supplier and sub-contractor

divisional events

68%

of invoices paid within 30 days*

* For the period 1 January 2024 to 30 June 2024.

Engaging with our sub-contractors and suppliers helps support

our productivity levels, secure continuity of supply materials at

appropriate prices and develop shared solutions to key challenges

such as carbon reduction, waste management and modern slavery.

We do it right

Strategic Report Governance Financial Statements

56 Barratt Developments PLC Annual Report and Accounts 2024

Listening to local

communities

Chiltern Grange is a site in Oxfordshire

where we obtained a Neighbourhood

Plan site allocation by engaging with the

local parish and understanding what

local residents wanted for the village.

A Neighbourhood Plan is a community-

led framework for guiding the future

development and growth of an area.

Local engagement is essential to gain

valuable input, understand pertinent

issues and identify suitable sites.

The local parish and Neighbourhood

Plan group wanted a relief road to

the village centre, so together we

planned landscaping and a new road.

The site is now being delivered and

our proportion of the road is near

completion with the installation of a new

roundabout complete and another due

for completion by the end of 2024. Over

110 new residents have now moved in.

Communities

andenvironment

How we engage

Company engagement:

• Meetings and site-specific

consultations to consult and

incorporate feedback

• Working closely with local

community members including

schools and parish councils

• Dedicated websites with information

and updates, and site signage

around our sites

• Charitable giving through Barratt

Foundation, volunteering and

fundraising

Board engagement:

• The Chief Executive and the Chief

Operating Officer inform the Board of

any local issues that could escalate

into Group-wide issues

• The Board receives updates from

the Group Construction and

SHEDirector,theSustainability

Committee and the Barratt

Foundation

• The Board receives feedback

from charities on the impact of

our support

Our performance

9,026

planning consents secured (plots)

£6.4m

donated to local charities

14,515

hours volunteered

Output from engagement

Examples of keyinterests:

Interest: Impact on theenvironment

We monitor and publicly report on our

environmental performance, and our

Remuneration Committee uses this

information to feed into appropriate

environmental-related metrics for our

Executive Annual Bonus Plan and Long Term

Performance Plan.

See pages 137 and 138

During FY24, the Board approved our revised

science-based emission reduction targets

for all three scopes of greenhouse gas

emissions. These are awaiting validation

bytheSBTi.

See pages 79 to 84 for details on how we are

minimising our environmental impact

Interest: Impact on local area

duringconstruction

During FY24, each of our divisions donated

£1,500 per month to a different charity

that supports the local community within

the areas in which we build. In addition,

divisions are encouraged to raise funding for

local charities and utilise the match funding

available from the Barratt Foundation.

During FY24, our colleagues raised over

£2.25m for local causes.

Interest: Impact on local area

postcompletion

During FY24, we spent £536m on physical

improvement works benefiting local

communities and provided 4,632 school places.

Our Environmental Policy sets out our overarching

commitment to mitigate the adverse impact

of our operations on the environment and the

communities in which we operate, and includes

specificcommitmentsonminimisingnoiselevels

andtrafficmovementsduringconstruction,

pollutant emissions and disturbance to wildlife

habitats and local ecosystems. Our Board reviews

and approves our Environmental Policy every year

to ensure it remains appropriate.

It is important to engage with the local communities in

whichwebuildtoensurethatwearerespondingtolocalneeds.

Over 110 new residents have now moved in at Chiltern Grange

We do it right

Stakeholder engagement continued

57Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Chief Financial Officer’s Review

Solid performance

Despite the UK housing market stabilising at significantly

lower activity levels, following the sharp rise in mortgage

interest rates in the Autumn of 2022 and the ongoing

pressures created by the cost of living, we have delivered

asolidfinancialperformance.

Our financial results reflect the Group’s clear operational

priorities set at the start of the year centred around

driving revenue, controlling costs, maintaining land buying

discipline and continuing to lead the industry around

customer service, build quality and sustainability.

Our disciplined operating framework has ensured that,

despite the challenging trading conditions, the Group

remains in a strong financial position, well placed to take

operational and financial advantage of any market recovery.

Results to 30 June 2024

Income statement

Group revenue was £4,168.2m in FY24 (FY23: £5,321.4m),

with Group wholly owned completions 17.8% lower at 13,468

(FY23: 16,378), reflecting our lower order book at the start of

the year and ongoing slower rate of reservations throughout

the financial year.

The average selling price of our wholly owned completions

reduced by 4.0% to £306.8k (FY23: £319.6k), with a reduced

proportion of affordable homes, accounting for 20.8%

(FY23: 23.9%) of wholly owned completions, diluting the

degree of reported ASP decline. Our private average selling

price reduced by 6.4% to £343.9k (FY23: £367.6k), due

to underlying house price decline, a reduced proportion

of completions in London and the dilutive impact of

PRS growth, offset by minor changes in product and

geographic mix.

Adjusted gross profit reduced by 39.0% to £689.0m (FY23:

£1,130.4m) and adjusted gross margin reduced by 470 bps

to 16.5% (FY23: 21.2%). This was a result of the combined

impact of increased sales incentives, build cost inflation

and a decline in completion volumes, which reduced fixed

cost efficiencies. In FY24, our contribution margin was

c. 29% (FY23: c. 32%) after land and direct build costs.

After adjusted items charged through cost of sales, totalling

£179.5m (FY23: £155.5m) and relating to legacy property

costs, reported gross profit was £509.5m (FY23: £974.9m)

and reported gross margin was 12.2% (FY23: 18.3%).

Administrative expenses before adjusting items were

£314.5m (FY23: £270.8m) and included:

• Group-wide inflationary salary increases at an average

ofc.5%,effectiveinFY24;

• A reduction in Building Safety Unit running costs as we

insourced support;

• An increase in group-wide performance-related pay

compared to FY23;

• Project-related IT and digital investment; and

• Reduced sundry income of £14.8m, when compared

with£16.7minFY23.

After deducting administrative expenses before adjusting

items and a modest net gain of £2.1m on part-exchange

activities (FY23: £3.3m), the Group delivered an adjusted

profit from operations of £376.6m (FY23: £862.9m), with

anadjustedoperatingmarginof9.0%(FY23:16.2%).The

720bpsdeclineintheadjustedoperatingmarginreflected:

• Completion volumes: a decline in our wholly owned

completion volumes of 17.8% or 2,910 homes created a

300 bps negative impact (FY23: 30 bps negative impact).

• Net inflation: adverse sales price movements compounded

by higher underlying build cost inflation produced a 430 bps

negative impact (FY23: 170 bps negative impact).

• London: a significant decrease in completions from our

London operations to 2% in FY24 (FY23: 8%), where margins

are lower than our regional business, resulted in a 60 bps

positive margin impact (FY23: 20 bps negative impact).

Mike Scott

Chief Financial Officer

Find out more

Read more about our values on page 2

58 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

• a corporation tax charge on adjusted profit before tax

of£104.7m(FY23:£188.1m);

• a residential property developer tax charge of £6.1m

(FY23:£26.0m);and

• a tax credit for adjusted items totalling £54.4m

(FY23:£39.3mcredit).

Adjusted basic earnings per share decreased by 57.9%

to 28.3 pence per share (FY23: 67.3 pence) due to a

56.5% decline in adjusted pre-tax profitability and a 6.0%

impact from the increased corporate tax rate and was

partially offset by a 2.8% benefit from the reduced average

share count, reflecting the impact of our share buyback

completed in June 2023.

Basic earnings per share reduced by 77.8% to 11.8 pence

pershare(FY23:53.2pence).

Reflecting the decline in adjusted profitability as well as

the slowing in asset turn – notwithstanding the disciplined

management of capital employed throughout the year –

ourROCEdeclinedto9.5%(FY23:22.2%).

Adjusted items

Adjusted items recognised in the year related to costs

associated with legacy properties of £192.1m (FY23: £179.2m),

as well as initial costs in relation to the Redrow transaction

of £22.4m, where the balance of transaction costs will

be recorded in FY25. Of the total charge related to legacy

properties, £125.3m (FY23: £117.7m) related to future fire

safety and external wall systems commitments, with a

further £66.8m (FY23: £51.5m) relating to remedial works

arising from the review of reinforced concrete frames.

Our commitment to addressing fire safety and concrete

frame design and construction is clear, and evidenced by

further investment in our dedicated Building Safety Unit,

which manages our ongoing building safety remediation

programme across the country. Whilst the regulatory

backdrop and assessment regime remain subject to

variability and subjective interpretation, we are focused

on the efficient delivery of both suitable and sustainable

remediation solutions, which we anticipate will be delivered

over the next five years, with building safety considerations

paramount in prioritising and scheduling remediation works.

Fire safety and external wall systems

Reflecting our commitment to dealing with these buildings

as quickly and efficiently as possible, of the 262 buildings

under review at 30 June 2024, 137 were in progress at

tender, site mobilisation or remediation stage.

In the first half of the year, we recognised a charge of

£56.4m to reflect higher than expected tender returns

and cost increases on buildings being remediated by the

Building Safety Fund. These generally related to buildings

with atypical features and costs in relation to the remaining

buildings are broadly in line with our initial estimates.

During the second half of the year we recognised a charge

of £64.5m, following an initial £5.0m for fire testing recognised

the first half, in relation to a development of three buildings

which we had previously disclosed as a contingent liability.

We have been unable to develop a testing methodology

under the FRAEW for these buildings due to the unique

unitised wall system in place, which we now assess will

need to be replaced. The provision is based on the current

expected method of remediation, designed to minimise

disruption to residents, though due to the unique nature

of the building, this estimate may vary as the process is

further developed.

After incorporating the additional adjusted item charges

for fire safety and external wall systems of £125.9m, as

well as with remediation costs incurred during FY24 and

time discounting adjustments, the provision in relation to

fire safety and external wall systems totalled £628.1m at

30 June 2024 (30 June 2023: £535.9m). We believe this

reflects our current best estimate of the extent and future

costs of remediation work required and we will continue to

review these estimates as we gather data and complete the

remediation of buildings within our portfolio.

We signed the Scottish Government’s Safer Building Accord

on 31 May 2023. The process to agree a legally binding,

long-form contract to give effect to the Principles of the

Accord remains in progress with Homes for Scotland and

the Scottish Government. As a result of this uncertainty,

our existing provisions for Scottish buildings have been

made on a consistent basis with England and Wales but

are subject to change depending on the outcome of the

contract negotiations.

Results to 30 June 2024 continued

Income statement continued

• Completed developments provision: after incurring

significantly higher charges in FY23 due to lengthening

timescales for local authority adoption of roads

and public spaces on completed developments, a

more normal movement in this provision created a

20bpspositivemarginimpact(FY23:60bpsnegative

margin impact).

• Mix and other items: changes in sales mix, increased

selling costs, reduced abortive costs in relation to land

transactions no longer proceeding and other smaller

items created a 30 bps positive impact (FY23: 70 bps

negative impact).

• Net administrative expenses: the small decrease in

part-exchange income and the increase in administrative

expenses deducted 100 bps (FY23: deducted 30 bps) from

the adjusted operating margin.

After deducting adjusted items, on a reported basis,

profitfromoperationsreducedto£174.7m(FY23:£707.4m),

with a reported operating margin of 4.2% (FY23: 13.3%).

Net finance charges were £6.5m (FY23: £11.1m), reflecting

increased interest received on cash balances throughout

FY24. The cash component of the finance charge was

an increased credit of £37.1m (FY23: £13.4m credit) with

non-cash charges of £43.6m (FY23: £24.5m). The increase

in non-cash finance charges reflected the impact of the

increase in legacy property provisions and the higher discount

rate applied to these provisions, arising from the movement

in the gilt rate. In FY25, we expect finance costs will be c. £25m,

reflecting a cash component credit of c. £15m and non-cash

charges of c. £40m.

Our JVs delivered lower adjusted profit for the year of £14.9m

(FY23: £32.5m). Including adjusted charges for JV legacy

properties of £12.6m (FY23: £23.7m), JV reported profits

reduced to £2.3m (FY23: £8.8m). Consequently, reported profit

before tax for the year declined to £170.5m (FY23: £705.1m).

The Group’s tax charge for the year reduced to £56.4m

(FY23: £174.8m). This included the full year impact of the

increase in the rate of corporation tax from 19% to 25%,

effective from 1 April 2023. The tax charge comprised:

Chief Financial Officer’s Review continued

Strategic Report Governance Financial Statements

59Barratt Developments PLC Annual Report and Accounts 2024

Results to 30 June 2024 continued

Adjusted items continued

Reinforced concrete frames

Our remediation activities for concrete frame design and

construction continued during FY24 with developments

proceeding in line with our plans.

As highlighted earlier, in the Chief Executive’s report,

during FY23 and separate from the original concrete frame

review, structural issues were found at two developments

where reinforced concrete frames were designed for us by

a different engineering firm to that employed at Citiscape.

Following preliminary work on these developments and

further analysis, undertaken during the second half of FY24,

it is now considered probable that extensive concrete frame

remediation will be required. Based on a high-level risk

review, an additional £56.6m has been provided for by the

Group and £7.6m recognised as a share of loss from joint

ventures in respect of the two developments.

Further details on how we build safety are on our website at:

www.barrattdevelopments.co.uk/about-us/our-approach-to-building-

safety

Whilst charges for legacy properties reflect our current best

estimates of the extent and future costs of work required,

we may have to update these figures as assessments and

work progress.

Cash flow

Net cash decreased to £868.5m at 30 June 2024

(30June2023:£1,069.4m).Themaincomponentsof

thechangeinnetcashpositionwere:

• a £96.2m net cash inflow from operating activities

(FY23:£465.5mcashinflow);

• a £12.0m net cash inflow from investing activities

(FY23:inflowof£55.4m),withthereductionreflecting

reduced cash received from joint ventures; and

• a £308.6m net cash outflow from financing activities

(FY23:outflowof£590.6m),principallyreflectingdividends

paid of £270.6m (FY23: £360.0m) and the absence of any

share buyback activities in FY24 (FY23: £201.3m share

buyback including stamp duty charges of £1.3m).

The major driver of the decline to £96.2m net cash inflow

from operating activities in the year was the reduction

in our profit from operations, which reduced to £174.7m

(FY23:£707.4m).Thiswaspartiallyoffsetbyareducednet

cash outflow from working capital and provisions of £12.0m

(FY23: £64.9m outflow) and net interest and tax payments,

which reduced to £73.7m (FY23: £196.3m outflow).

The net £12.0m outflow (FY23: £64.9m outflow) with

respect to working capital and provisions included:

• A £38.0m outflow (FY23: £48.9m inflow) with respect

to inventories where a reduction in construction work

in progress of £77.7m was offset by additional net land

investment of £93.7m and investment at Gladman and

additional part-exchange property costs.

• A £87.2m decrease (FY23: £337.6m decrease) in

payables,withlandcreditorbalancesreducingbya

moremodest£33.9m(FY23:£226.9mreduction)anda

more modest reduction in trade and other payables of

£53.3m (FY23: £110.7m).

• A £132.8m increase in provisions (FY23: £163.4m increase)

created in large part by the additional legacy building

safety charges incurred in FY24. During FY24, we spent

£91.5m (FY23: £32.9m) on the remediation of legacy properties.

Balance sheet

The Group’s net assets at 30 June 2024 were £5,439.1m

(30 June 2023: £5,596.4m) after the payment of dividends

totalling £270.6m (30 June 2023: £360.0m).

Goodwill and intangible assets reduced to £1,037.4m

(30June2023:£1,047.8m),reflectingamortisationcharges

in the year.

Our balance sheet assets showed limited movement over

the year with:

• The investment in our land bank increasing by £93.7m

to£3,233.6m(30June2023:£3,139.9m);

• Construction work in progress tightly controlled and

reducing by £77.7m to £1,829.4m (30 June 2023: £1,907.1m);

• Increased investment in land promotion activity at

Gladman resulting in a £13.8m increase in promotional

agreement work in progress to £111.5m (30 June 2023:

£97.7m); and

Chief Financial Officer’s Review continued

• Part-exchange properties and other inventories tightly

controlled at £103.7m (30 June 2023: £93.3m).

Adjusted item charges in relation to legacy properties

werethemostsignificantfactorimpactingourbalance

sheet liabilities.

Our provisions on the balance sheet increased to £921.2m

at 30 June 2024 (30 June 2023: £788.4m) and included

£730.3m (30 June 2023: £612.3m) of provisions to cover

future costs in connection with the remediation of external

wall systems and reinforced concrete frames.

Net tangible assets were £4,401.7m (452 pence per share)

at 30 June 2024 (30 June 2023: £4,548.6m; 467 pence per

share). Land, net of land creditors, and work in progress

totalled £4,590.2m (471 pence per share) at 30 June 2024

(30 June 2023: £4,540.3m; 466 pence per share).

At 30 June 2024, the Group held net cash balances of £868.5m

(30 June 2023: £1,069.4m). Whilst we continue to defer

payment for some land purchases to optimise ROCE, the

pause in land buying has led to a reduction in land creditors.

At 30 June 2024, land creditors were £472.8m (30 June 2023:

£506.7m) and equated to 14.6% (30 June 2023: 16.1%) of the

owned land bank.

Our minimal year-end total net indebtedness target was

achieved with a net surplus of £395.7m at 30 June 2024

(30June2023:£562.7mnetsurplus).

During FY25, £307.8m of land creditors will fall due for

payment (30 June 2023, during FY24: £321.5m). Land

creditors due beyond 30 June 2025 totalled £165.0m

at 30 June 2024 (30 June 2023: £185.2m due beyond

30June2024).

Capital returns

The Board has reviewed capital allocation as is customary

as part of its annual cycle. Having recently completed the

Redrow acquisition, we will assess the capital requirements

for the enlarged group taking into account current market

conditions including the positive supply-side developments,

our obligations with respect to building safety and our

desire to be proactive in the land market. In principle we

continue to believe that when appropriate, that excess

capital will be returned to shareholders and the timing

ofanysuchreturnsremainsunderreview.

60 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Results to 30 June 2024 continued

Operating framework and capital structure

Our operating framework and appropriate capital structure

continue to deliver a stable and solid foundation for the

Group. We target an appropriate capital structure as part

of our disciplined operating framework, with shareholders’

funds and land creditors funding the longer-term land

requirements of our business, and term loans and

bank debt funding the shorter-term requirements for

working capital.

Our highly selective approach to land buying since the

summer of 2022 has limited investment in land and the

creation of additional land creditor obligations. Reflecting

Treasury

The Board sets and approves the Treasury Policy and senior

management controls day-to-day operations. The Group’s

Treasury Policy seeks to maintain an appropriate capital

structure and provide the right platform for the business

tomanagebothoperatingrisksandopportunities.

Cash management and relationships with our banking

partners are co-ordinated centrally by the Group Head of

Treasury. During the year, we extended our £700m Revolving

Credit Facility to November 2028 with one further one-year

extension period through to November 2029 available,

ifagreedbetweentheGroupanditslenders.

Tax

The Group does not enter into business transactions for

the sole purpose of reducing potential tax liabilities. The

Group’s tax strategy is to only use any available reliefs and

exemptions, which have been set out in any current tax

legislation, to minimise the Group’s tax liabilities.

The rate of corporation tax, including RPDT, for the year

ended 30 June 2024 was 33.1% (FY23: 24.8%), which,

reflecting the impact of the non-deductible Redrow

transaction expenses, was above the standard effective

rate of tax of 29% (inclusive of RPDT at 4%) (FY23: 24.5%

inclusive of RPDT at 4%).

Looking ahead, the Group’s tax charge and underlying

effective rate of tax is expected to be approximately

29.0% in FY25.

Operating framework Position at 30 June 2024 Position at 30 June 2023

Land bank

c. 3.5 years owned and

c. 1.0 year controlled

4.3 years owned and

0.6yearscontrolled

3.6 years owned and

0.7yearscontrolled

Land creditors

Maintain at 15–25% of the land

bank over medium term

14.6% 16.1%

Net cash

Modest average net cash over

the financial year

FY24: average net cash

of£732.3m

FY23:averagenetcashof£759.1m

Year-end net cash £868.5m £1,069.4m

Tota l

indebtedness

Minimal year-end total

indebtedness in the

mediumterm

Total net surplus of £395.7m Total net surplus of £562.7m

Treasury

Appropriate financing facilities £700m Revolving Credit Facility

extended to November 2028 and

£200m US Private Placing Notes

maturing August 2027

£700m Revolving Credit Facility

extended to November 2027 and

£200m US Private Placing Notes

maturing August 2027

Dividend

Policy

Dividend cover of 1.75x adjusted

earnings per share

FY24: total ordinary dividend

of16.2pencepershare

FY23: total ordinary dividend

of33.7pencepershare

Chief Financial Officer’s Review continued

the calendar-based settlement of previously agreed land

creditor obligations, but the limited investment in new

land up until the final quarter of FY24, land creditors

have reduced to 14.6% of our land bank. This situation is

expected to reverse as land buying activity increases over

the medium term.

Our operating framework remains unchanged, and our

performance against targets at 30 June 2024 and 2023

issummarisedbelow.

In pursuing this clear framework we have ensured that,

even through challenging trading conditions, the Group has

remained in a strong financial position, ready to take both

operational and financial advantage of both market recovery

and organic investment opportunities looking forward.

Strategic Report Governance Financial Statements

61Barratt Developments PLC Annual Report and Accounts 2024

Results to 30 June 2024 continued

Pensions

Defined contribution pension arrangements are in place for current employees. Defined contribution scheme charges for

qualifying employees totalled £21.2m (FY23: £19.2m). Pension contributions are based upon a fixed percentage of each

qualifying employee’s pay and, once paid, the Group has no further obligations under these schemes.

Guidance for FY25

Looking to FY25, for regulatory reasons we are unable to provide guidance for the combined group at the date of our

Annual Report and Accounts. We provide below guidance with respect to Barratt Developments PLC as it would have

applied on a standalone basis, before considering the potential impact of the acquisition of Redrow plc:

Completions

c. 13,000 – 13,500 total home completions including c. 600 JV completions

Affordable mix expected to be in the high teens

Average sales outlet movement

(inc. JVs)

c. 9% decline

Build cost inflation

c. Broadly flat

Adjusted administrative expenses

c. £310m, excluding integration costs (including amortisation of intangible asset

charges of c. £10m)

Interest cost

c. £25m charge

(c. £15m cash credit, c. £40m non-cash charge)

Land approvals

Return to normal approval activity during the year.

Land cash spend

c. £0.8bn

Year-end net cash

c. £0.5bn

Taxation

Effective underlying tax rate of 29%, reflecting current corporation tax rate

at 25% and 4% RPDT

Ordinary dividend cover

1.75x ordinary dividend cover based on adjusted earnings per share

Well placed for FY25, despite continuing

economic and political uncertainties

Despite limited economic growth and the ongoing

affordability challenges for our customers, the Group is

in a strong position. We entered FY25 with an excellent

net cash position, our forward sales position is solid

albeit reduced and we have maintained a strong land

bank. Our operating framework and our strong financial

position are the foundations for our divisions to focus on

delivering high-quality, sustainable homes and developments

throughout the country, as well as giving us the flexibility to

react to changing market conditions and opportunities as

they evolve.

Mike Scott

Chief Financial Officer

3 September 2024

Chief Financial Officer’s Review continued

62 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Risk management

Our approach

to managing

our risks

In pursuing our strategic priorities to create

value for stakeholders, we are exposed

to risk. The Board is responsible for risk

management and ensuring the Group

maintains the appropriate level of risk

exposure to achieve its strategic objectives.

The risks which the Group faces could have a material

adverse effect on the implementation of the its strategy, its

business operations, its financial performance, shareholder

value and returns, and its reputation. Changes in the

economic or trading environment including geopolitical

events can affect the likelihood and potential impact of

risks, and may create new and emerging risks meaning we

must continually manage our risk exposure.

Risk management controls are integrated into all levels of

our business and across all operations, including at site,

divisional, regional and Group level, and are monitored

continually to ensure controls are in line with risks as

they evolve.

Roles and responsibilities

Board and Audit and Risk Committee

• Corporate strategy, governance, performance, risk

management and internal controls.

• Monitoring the effectiveness of the Group’s risk

management and internal controls systems.

• Ensuring there is an appropriate culture in place to

support effective and embedded risk management

throughout the Group.

* Management regional reviews.

** Divisional Board meetings.

Board

Audit and Risk Committee

Executive Risk Committee

Enterprise risk management (ERM) framework

Fraud risk framework

Internal control over material risks

Risk type

How are risks

assessed?

Where are risks

and controls

captured?

Key sources

ofassurance

Regional and

functional

risks

Bottom-up risk

assessments

Region and

function

riskregister

2nd line

monitoring

MRR*/DBM**

Group-level

risks

Top-down risk

assessment

Group risk

risk cards

Risk

assurance

mapping

Fraud risk

assessment

Fraud

risk register

3rd line

internal audit

programme

Financial

reporting risk

Financial

reporting risk

assessment

Policies and

procedures,

documentation

and internal

control

matrices

2nd line

monitoring,

3rdline

internal audit,

external audit

Material risks

Policies and

procedures, and

internal control

Control self-

assessment

2nd line

monitoring,

3rdline

internal audit

• Setting risk appetite, considering the expectations

ofstakeholders,andthemacroeconomiccontext.

• Monitoring principal and emerging risks and challenging

theexecutivemanagementteamonhowtheserisksare

assessed and managed.

• Assessing risks against the Group’s strategy and the

interests of stakeholders, and gaining assurance on

theirmanagement.

Executive Risk Committee

A Committee consisting of all members of the executive

management team, reporting to the Audit and Risk

Committee, is responsible for:

• Monitoring business and operational performance

andchangestothekeyrisks.

• Assessing and monitoring identified risks using a scoring

system based on the likelihood of the risk materialising,

potential impact on the business and the velocity at

which the risk may materialise.

• Identifying, reviewing and monitoring emerging risks

toassessthepotentialimpactontheCompany.

• Implementing mitigation strategies to effectively manage

key risks within the Group’s risk appetite.

• Ensuring that risk management is embedded within the

business and appropriate actions are taken to manage risk.

Group, regional and divisional management

• Applying specialist knowledge to identify new risks and

monitor changes to existing operational and strategic

risks at a divisional, regional and functional level.

• Risk management and control activities within the

relevant divisions, regions or Group disciplines.

Site management, assessments and valuations

• Identifying and assessing operational risks affecting

housebuilding activity at site level, including construction,

sub-contractor and SHE risk.

• Maintaining an effective system of site-level risk

management and internal control.

Strategic Report Governance Financial Statements

63Barratt Developments PLC Annual Report and Accounts 2024

Risk activities conducted during

the year

Under the Group’s enterprise risk management framework,

risk workshops are held between regional management and

Group functional experts to provide a robust “bottom-up”

assessment of the risks being experienced by the business.

The outputs inform the determination of the Group level

key risks by the Executive Risk Committee, which are then

reviewed and challenged by the Board, with support from

third-party experts, to arrive at the final principal risks.

The Board has also refreshed its risk appetite approach

during FY24 to ensure that the Board’s appetite for each

oftheprincipalrisksisclearandcanbeusedtodetermine

appropriate mitigating actions across the Group. The Board

now categorises risk appetite for each principal risk using

thefollowingmethodology:

• Averse — Minimise risk as much as possible, limited

tolerance of potential exposure to risk consequence

inpursuitofrelatedbenefits.

• Cautious — A balanced and informed approach to risk

taking, moderate tolerance of potential exposure to risk

consequence in the pursuit of related benefits.

• Opportunistic — A more receptive approach to adaptability;

taking risk for increased benefits/returns or to achieve

strategic goals.

As we continue our continuous improvement over risk

management activities in FY25, we will refresh our approach

to key risk indicators.

As part of our risk identification processes, emerging risks

were identified through external and internal risk processes

including the regional and functional risk workshops,

discussions with the Executive and external benchmarking.

The emerging risks are formally reviewed by the Board and

Executive as part of their ongoing activities.

During FY24, executive management has reviewed the policies

and methodologies behind our risk management framework

to ensure that our procedures suitably allow key risks and

the specific events that may cause them to be identified.

The Group continues to assess the potential physical impact

of climate change as well as the regulatory and social

measures that may be adopted to mitigate it. The Board

recognises that sustainability is integral to the delivery

of the business strategy and has taken substantial steps

to embed sustainability across all our processes and

business activities. Therefore, the Board has removed

sustainability as a standalone principal risk and will

manage sustainability activities as an embedded part of

its risk management processes, for example considering

sustainability in its supply chain or Government regulation

risks. See our assessment of sustainability-related risks

andopportunitiesonpages71to84.

Business continuity has been removed as a principal risk.

Due to the nature of our operations covering a large number

of sites and our continued operational resilience embedded

throughout the Group, for example throughout the pandemic,

we do not feel business continuity is high risk. We will

continue to monitor operational resilience as part of our

management of individual key risks.

The existing legacy properties principal risk has been

expanded to reflect both the ongoing risk with quality of

build for high-rise and complex structures, as well as

the effective remediation of issues already identified in

legacy properties. This has also reduced our construction

quality and innovation risk on a net basis due to it no

longer incorporating build quality over high-rise and

complexprojects.

A new risk has been added to cover the Redrow integration.

The integration offers significant synergies which we are

confident in achieving but by recognising the risks associated

with the integration early, we will ensure that we implement

appropriate activities to safeguard these synergies over the

medium to long term.

In July, the new Government published a revised draft

of the National Planning Policy Framework (NPPF) which

guides local councils on the location, type and amount

ofnewhomesrequired.ThepolicieswithinthenewNPPF

reduce Barratt’s level of land and planning risk by reason of,

(a) increased Government targets for new homes, (b) new

requirement to release sites currently within Green Belt, and

planning applications in areas without a five-year supply

ofhousing.Thenewpoliciesshouldleadtoagreatersupply

Risk management continued

of consented land. As these actions materialise, they should

help to support a reduction in our risk exposure in the

near future.

On 26 February, the CMA launched an investigation into

suspected breaches of competition law, relating to the

exchange of competitively sensitive information, by eight

housebuilders, including Barratt and Redrow. We continue

to co-operate with the CMA in its investigation. This is

considered within our government regulation and political

risk principal risk.

The health, safety and environment risk has also been

decreased on a residual basis due to the Board being

comfortable with our existing mitigation and the priority

that it is given across the Group.

As well as quantitative measures, there are also

qualitativemeasuresconsideredwithintheriskmethodology.

Reputational risk could potentially arise from a number of

sources including external and internal influences relating

to the housebuilding sector that, when combined or over a

period of time, could create a new principal risk. The Group

actively manages the impact of reputational risk by carefully

assessing the potential impact of all the principal risks and

implementing mitigation actions to minimise those risks.

Reputational risk is therefore covered by the management

of each of our individual risks and is not presented as a

principal risk in its own right.

Overall assessment

The Board has completed its assessment of the Group’s

principal and emerging risks, including those that could

threaten its business model, future performance, solvency

or liquidity.

The current risk profile is within our tolerance range as the

Group is willing to accept a moderate level of operational

risk to deliver financial returns.

There may be instances where these risks could have a

moderate adverse impact on the Group – either financially

or operationally. To ensure the Group’s business model

remains resilient over the medium and long term, the

Group has modelled these scenarios alongside achievable

mitigating actions. The results are presented in the Viability

Statement on pages 85 to 87.

64 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

The Group has identified ten principal risks that it

considers to be of material impact and likelihood:

Economic environment

Land and planning

 Governmentregulationandpoliticalrisk

Construction quality and innovation

High-rise and complex structures

Supply chain resilience

Safety, health and environment

Attracting and retaining high-calibre employees

Information technology

Redrow integration

The principal risks are detailed on pages 66 to 70,

categorised by the strategic priorities to which they

relate. Risk levels are presented net of any mitigation

that is in place and the risk appetite defines the level

of risk that the Board is comfortable with.

Heat map of principal risks net of mitigation

Velocity based on estimates

and past experience

Impact

>£50m

£25m–

£50m

£10m–

£25m

£5m–

£10m

<£5m

Very unlikely Unlikely Likely Highly likely

Very highly

likely

Probability

B E

Rapid

Risk can materialise immediately

or impact felt within 1 month

ofoccurring.

Moderate

Risk can materialise quickly,

orimpactfeltbetween1and

12monthsofoccurring.

Slow

Risk can materialise slowly,

orimpactfeltafter12months

ofoccurring.

Scores are net, after mitigation.

Risk management continued

Principal risks

Strategic Report Governance Financial Statements

65Barratt Developments PLC Annual Report and Accounts 2024

Economic environment

Risk level:

Velocity: Rapid

Risk appetite: Cautious Responsibility:

Executive Committee

Risk description

Significant changes in the UK macroeconomic environment

or continuing major geopolitical events and uncertainty

may lead to falling demand, tightened mortgage availability,

lack of funding for housing associations, or reduced

purchaser liquidity, especially in the first-time buyer

market. This could reduce the affordability of our homes

for private and rental customers, resulting in reduced

salesvolumesandourabilitytoprovideprofitablegrowth.

Response/mitigation

• Continual monitoring of the market at Board, Executive Committee, regional and divisional

levels, leading to amendments in the Group’s forecasts and planning as necessary.

• Comprehensive sales policies, regular reviews of pricing in local markets and development

of good relationships with mortgage lenders.

• Disciplined operating framework with an appropriate capital structure and strong

Balance Sheet.

Key risk indicators

Internal: Gross and

operating margins, PBT,

ROCE, EPS, TSR, total home

completions.

External: GDP growth,

CPI inflation, mortgage

approvals, mortgage

affordability, new

housebuilding site starts.

Land and planning

Risk level:

Velocity: Moderate

Risk appetite: Cautious Responsibility:

Land Committee

Risk description

Lack of developable land due to delays in planning

approval, failure of a clear and consistent Government

policy or insufficient consented land and strategic land

options at appropriate cost and quality could affect our

ability to grow sales volumes and/or meet our margin and

site ROCE hurdle rates.

Response/mitigation

• All land acquisitions are subject to formal appraisal and approval by the Land and

Development Leadership Group.

• Group, regional and divisional review of land currently owned, committed and identified

against strategic requirements.

• Regular meetings with external stakeholders including land agents, promoters and

land owners.

• Review by Land and Development Leadership Group and management on strategic

landandsites.

• Robust review of land appeals before resubmission.

Key risk indicators

Land approvals (plots),

UK quantum of consented

housing units per

year, UK quantum of

applications decided within

statutory periods.

Risk management continued

Risk level:

High risk

Medium risk

Low risk

Change from previous year:

Increase Decrease No change

Principal risks continued

66 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Government regulation and political risk

Risk level:

Velocity: Moderate

Risk appetite: Averse Responsibility:

Operations Committee

Risk description

The housebuilding industry is subject to increasingly

complex legislation and regulation, Government

intervention and policy changes, for example climate

change, building regulation, legal, NHQC, competition

law and sustainability regulation. Deviation from current

regulations or failure to implement the changes effectively

within our processes could lead to financial penalties,

damage to the Group’s reputation or increased costs due

to inefficient processes.

Response/mitigation

• Robust and rigorous design standards for the homes and places we develop that exceed

current and expected statutory requirements.

• Policies and technical guidance for employees on regulatory and legal compliance and

thestandardsofbusinessconductexpected.

• Dedicated compliance team.

• Consultation with Government agencies and membership of industry groups to help

monitor, understand and plan for proposed regulation change.

Key risk indicators

Regulatory violations,

audit findings, data

breachincidents.

Construction quality and innovation

Risk level:

Velocity: Moderate

Risk appetite: Cautious Responsibility:

Operations Committee

Risk description

Failure to achieve excellence in housebuilding construction

and product quality, through insufficient quality assurance

programmes, or inability to develop, evaluate and implement

new and innovative construction methods, or to be a

market leader with changes in technology advancement,

could increase costs, expose the Group to future remediation

liabilities, and result in poor product quality and

reputational damage.

Response/mitigation

• Continuous review of design and materials, which are evaluated by technical experts

including the NHBC, to ensure compliance with all regulations.

• Monitoring and improving the environmental and sustainability impact of construction

methods and materials.

• Implementation of modern methods of construction by design and technical teams.

• Detailed build programmes supported by robust quality assurance.

Key risk indicators

Customer service, total

home completions,

gross margin, operating

margin, PBT, ROCE, EPS,

construction waste intensity

and carbon intensity, NHBC

Reportable Items and

Builder Responsible Items.

Risk level:

High risk

Medium risk

Low risk

Change from previous year:

Increase Decrease No change

Risk management continued

Principal risks continued

Strategic Report Governance Financial Statements

67Barratt Developments PLC Annual Report and Accounts 2024

High-rise and complex structures

Risk level:

Velocity: Moderate

Risk appetite: Averse Responsibility:

Operations Committee

Risk description

Failure to build high-rise and complex structures in line

with building regulations or remediate existing legacy

quality issues effectively could result in remediation

delays, reputational damage, increased provisions or

further future remediation liabilities.

Response/mitigation

• Hired senior technical expertise into the business.

• Use of qualified engineers through an approved panel including structural engineer peer

review process.

• Third-party liability insurance.

• Detailed build programmes supported by robust quality assurance.

• A dedicated Building Safety Unit (BSU) which undertakes independent reviews and

investigations of legacy buildings and, where necessary, conducts remediation work.

• Assumptions on the estimated financial costs for remediation have been tested and

challenged robustly.

Key risk indicators

Independent third-party

assessor results, NHBC

Reportable Items and

Builder Responsible

Items, EPS, customer

satisfaction surveys.

Supply chain resilience

Risk level:

Velocity: Moderate

Risk appetite: Cautious Responsibility:

Operations Committee

Risk description

Not adequately responding to shortages or increased costs

of materials and skilled labour including those events

caused by geopolitical uncertainty, or the failure of a key

supplier in the current economic environment, may lead

toincreasedcostsanddelaysinconstruction.

Response/mitigation

• Centralised team procures most materials from UK suppliers, ensuring consistent quality

and cost.

• Development of multiple supplier relationships for labour and material supplies, with

contingency plans should any key supplier fail.

• Clear tendering policies and procedures.

• Robust due diligence procedures to ensure quality of products and ethical suppliers.

• Build and material cost controls throughout build programmes to allow supply chain planning.

• Monitoring of supplier performance.

Key risk indicators

Customer service, gross

and operating margin,

PBT,ROCE,EPS,TSR,

totalhomecompletions.

Risk management continued

Risk level:

High risk

Medium risk

Low risk

Change from previous year:

Increase Decrease No change

Principal risks continued

68 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Safety, health and environment

Risk level:

Velocity: Moderate

Risk appetite: Averse Responsibility:

Safety, Health

andEnvironment

OperationsCommittee

Risk description

Healthandsafetyorenvironmentalincidentsorcompliance

breaches can impact employees, sub-contractors,

customers and site visitors, and undermine the creation

ofagreatplacetoworkandvisit.

Response/mitigation

• Clear roles and responsibilities for SHE across the Company.

• SHE management system supports and reinforces documented SHE policies

andprocedures.

• Employee and sub-contractor relevant and appropriate SHE training.

• Monthly operational Divisional Board reporting on SHE performance.

• Second line team of SHE compliance managers provide support and guidance.

• Board-level SHE Committee and SHE Operations Committee review and monitor.

Key risk indicators

Health and safety (SHE)

audit compliance.

Attracting and retaining high-calibre employees

Risk level:

Velocity: Slow

Risk appetite: Opportunistic Responsibility:

Executive Committee

Risk description

Increasing competition for skills may mean we are unable

to recruit and/or retain the best people. Having sufficient

skilled employees is critical to delivery of the Group’s

strategy of volume growth whilst maintaining excellence

inallofourotherstrategicpriorities.

Response/mitigation

• Company values relaunched and embedded across all areas of the business.

• Comprehensive HR programmes covering apprenticeships, graduate development,

succession planning and training academies.

• Personal development plans for all employees.

• Monitoring of employee turnover, absence statistics and independent feedback

fromexitinterviews.

• Annual employee engagement survey to measure employee satisfaction.

• Remuneration benchmarking.

Key risk indicators

Employee

engagement score.

Risk level:

High risk

Medium risk

Low risk

Change from previous year:

Increase Decrease No change

Risk management continued

Principal risks continued

Strategic Report Governance Financial Statements

69Barratt Developments PLC Annual Report and Accounts 2024

Information technology

Risk level:

Velocity: Rapid

Risk appetite: Cautious Responsibility:

Executive Risk Committee

Risk description

Failure of any of the Group’s key systems, particularly

those for financial and customer information, surveying

and valuation, through a successful cyber attack or

lack of investment leading to outdated systems, could

restrictoperationsanddisruptprogressindelivering

strategic priorities.

Response/mitigation

• Regular external reviews to reduce the risk of successful cyber attacks, including

vulnerability and penetration tests by third parties.

• Adoption of the recognised NIST control framework.

• Group-wide compliance and policies on passwords and transferring data to third parties.

• Mandatory information security training programme for all employees.

• IT disaster recovery plan.

• Continued investment in IT infrastructure.

• Cyber Security Insurance Policy.

Key risk indicators

Customer service, gross

and operating margin, PBT,

ROCE, EPS.

*New* Redrow integration

Risk level:

Velocity: Slow

Risk appetite: Cautious Responsibility:

Executive Committee

Risk description

Without careful management, there is a risk that synergies

that are initially achieved as part of the merger may not

be maintained over the medium to long term, leading

to higher costs than forecast. There is further risk that

revenue opportunities arising from the multi-branded

portfolioarenotrealised.

Response/mitigation

• Tracking, monitoring and reporting of expected and achieved synergies.

• Dedicated Integration Management Office.

• Executive and Board oversight of integration through Integration Steering Committee.

Key risk indicators

EPS and PBT.

Risk management continued

Risk level:

High risk

Medium risk

Low risk

Change from previous year:

Increase Decrease No change

Principal risks continued

70 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Task Force on Climate-related

Financial Disclosures (TCFD)

In accordance with Listing Rule 9.8.6 R and the

Climate-related Financial Disclosure Regulations

(CFD) 2022, this Annual Report and Accounts includes

climate-related financial disclosures consistent

with all eleven TCFD recommendations and all eight

CFDrequirements.

Deloitte has provided independent limited assurance

in accordance with the International Standard for

Assurance Engagements 3000 (ISAE 3000) and

Assurance Engagements on Greenhouse Gas

Statements (ISAE 3410) issued by the International

Auditing and Assurance Standards Board (IAASB) over

the TCFD disclosures on pages 71 to 84 and selected

metrics on page 80.

Deloitte’s full unqualified assurance opinion, which

includes details of the selected assured metrics,

isavailableonourwebsite.

Find out more

Read more about our governance on page 72

Read more about our strategy on pages 74 to 78

Read more about our risk management on page 73

Read more about our metrics and targets, including our

transition plan, on pages 79 to 84

www.barrattdevelopments.co.uk/building-sustainably/

our-publications-and-policies/publications

Anson Gardens, Fradley.

Upcoming reporting frameworks

We recognise the importance of major global frameworks

inguidingoursustainabilitystrategyandreporting.

Aligned with our commitments to sustainability and

transparency, we have initiated a review of the Taskforce

on Nature-related Financial Disclosures (TNFD) framework

alongside our ongoing TCFD compliance efforts.

FY24 marks the beginning of our journey with TNFD, and

wearealsoconsideringtheimplicationsoftheInternational

Sustainability Standards Board (ISSB) standards.

Work is underway to derive comprehensive insights

from our TNFD review, but our overarching objective

is to transition to a comprehensive sustainability

risk assessment, addressing all sustainability-related

risksholistically.

As our understanding and implementation of these

frameworks evolve, we look forward to sharing more

detailed findings in our future reporting.

Sustainability-related risks and opportunities

Our Sustainability Framework is fundamental to our strategy and is embedded across

allaspectsofouroperations.Issuesthatmayaffectthesustainabilityofourbusiness

model or the environments in which we operate are assessed as part of our risk

management process and captured within our broader principal risks.

By engaging and collaborating with our stakeholders, we aim to mitigate sustainability-related risks and capitalise

on opportunities that create lasting value for nature, places and people. This integrated approach ensures that our

commitment to sustainability is reflected throughout our risk management framework, driving long-term value and

resilience across the organisation.

Strategic Report Governance Financial Statements

71Barratt Developments PLC Annual Report and Accounts 2024

Governance

The Board is responsible for the oversight of the Group’s

sustainability strategy, delivery approach and related

risks. The Chief Executive is the Board member who holds

accountability for the sustainability strategy.

Sustainability Committee

The Sustainability Committee, chaired by the Chief

Executive, is the Board sub-committee responsible for

debating, reviewing and scrutinising our sustainability

strategy; this includes monitoring its implementation and

approving plans to mitigate risks and leverage opportunities

related to climate change and nature.

The Sustainability Committee also plays a critical role

in approving and overseeing initiatives that address

sustainability-related risks and opportunities. It assists the

wider Board in integrating climate and other sustainability

issues into our overall business strategy.

Staying informed

Climate understanding – and the world’s response

to it – continues to evolve. To ensure our

business strategy addresses existing and potential

sustainability risks, the Sustainability Committee

stays up to date with evolving sustainability

developments, including those related to climate

change and nature.

In FY24, our Sustainability Committee had the

following updates on climate change and nature:

• The Chair of the London Climate Resilience

Review presented on nature-based solutions and

climate resilience considerations in developments

and homes.

• The Ex-Chair of the Carbon Trust presented

the key ingredients for a best practice

transition programme to ensure we deliver

ourscience-basedtargets.

• The Group Sustainability team ran through several

working sessions, including a detailed net zero

transition plan update, revised science-based

targets, an annual update on our climate risks and

opportunities and our energy savings opportunities

compliance update.

• During the climate risk assessment process,

andonanongoingbasisthroughtheSustainable

Operations Group, senior management received

updates on emerging climate understanding

to support us in developing our responses to

climatechallenges.

Executive Risk Committee

Evaluates our internal control policies and procedures for identifying, assessing and reporting climate and nature-related risks.

Reviewsouroverallriskprofile,examiningclimate-relatedrisksinthecontextofourotherprincipalrisksandsignificancetoour

business strategy.

Actions in FY24 included:

• approval of our revised science-based targets, which are

awaiting validation from the SBTi (page 81);

• approval of the net zero transition plan (page 81);

• oversight of the climate-related risks and opportunities,

and the implications on future strategy (pages 76 to 78);

• oversight of improvements to climate data collection and

monitoring (page 83);

• spotlighting on alternatives to reduce reliance on fossil

fuels across our operation (page 82);

• approval of the Energy Savings Opportunities Scheme (ESOS)

recommendations and compliance timeline, proposed action

plan and governance process; and

• overview of the approach and intended content of

Sustainability Disclosures in the Annual Report 2024,

encompassing the Building Sustainably Framework,

climate risk and our transition plan.

For our detailed governance structure see page 100

Remuneration Committee

Designs our Remuneration Policy

to incentivise performance against

sustainability-related targets (see page 128).

Monitors performance against targets and

approves remuneration accordingly.

SHE Committee

Monitorstheeffectofclimate-related

SHE risks (such as the impact of weather

patterns on our workforce) and compliance

with site-based environmental initiatives

(such as waste reduction).

Audit and Risk Committee

Monitors the integrity of sustainability-related

disclosures (such as climate change and

nature) and data reporting through internal

and external assurance of the reporting

ofsustainability-relatedmetrics.

Ensures compliance with external

sustainability-related reporting

requirements and frameworks, including

TCFD and TNFD.

Read more from page 123 Read more from page 121 Read more from page 112

Other sustainability-related responsibilities delegated to Board sub-committees are summarised below:

Sustainability-related risks and opportunities continued

72 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Climate risk assessment criteria

Each risk undergoes assessment using our risk

assessment process outlined in the risk assessment

criteria table (see page 65).

We evaluate the estimated profit impact of a risk or

opportunity within the relevant financial year and climate

scenario, with long-term obligations recognised over their

respective periods. We define a “substantial” financial

impact as one that exceeds £50m, which aligns with our

criteria for assessing broader business risks on page 65.

Our risk assessment spans short, medium and long-term

timeframes, aligns with our emissions reduction targets

and captures both transitional and physical risks. The

short-term focus pertains to our owned land bank, while

the medium to long-term addresses strategic land options

and promotion agreements.

Climate-related risk management

The effects of climate change encompass physical risks

from new weather patterns, and transition risks associated

with moving towards a low-carbon economy. The uncertain

outcome of climate change and impact on our Company

hinges on global temperature limitations and specific

regulatory responses in regions where we operate, and for

our supply chain. Opportunities arise as industry leaders

drive sustainable development.

We assess region-specific climate risks from the bottom

up, including relevant legislation such as the Future Homes

Standard. Additionally, we evaluate all climate risks and

opportunities at Group level, with annual assessments

toensurealignmentwithourriskmanagementprocess.

Climate changes present both opportunities and risks,

so we need to adapt what we do, and how we do it, to

continue delivering the homes our customers need. Whilst

climatechangeriskisintegratedintoourdetailedrisk

management process (see page 63), we separately assess

the impact of climate change as a whole.

Identify

We assess potential climate

change outcomes based on

different global response

scenarios and resulting weather

pattern changes. See page 74

forthedifferentscenarioswe

have considered.

With assistance from external

experts, we uncover emerging

risks, potential regulations and

new developments that require

further investigation.

Assess

We share identified climate

outcomes with business and

local management, which then

evaluate their potential impact

on our operations. All risks

are documented in a climate

risk register.

Using public climate models and

internal data, we estimate the

short, medium and long-term

financial impacts of each risk and

opportunity under each scenario.

Review and respond

Internal subject matter experts, local

and Group senior management, and

external climate specialists discuss

identified risks and opportunities.

We prioritise risks and opportunities

with the highest potential impact

and report these to the Executive

Risk Committee, which manages our

response (see pages 63 to 64).

Climate risks and opportunities assessmentprocess

• Short-term scope 1 and 2

science-based targets (SBT).

• Implementation of the

FutureHomesStandard.

• Medium-term scope 3

science-based targets (SBT).

• Zero carbon homes in use for

regulated energy.

• Our target is to achieve net

zero emissions across our value

chain by 2040.

• Paris Agreement and UK target

for net zero by 2050.

Sustainability-related risks and opportunities continued

2025

2030

2050 2024

Short term Medium term Long term

We have four science-based targets which are awaiting validation by the

ScienceBasedTargetsinitiative–seepage81fordetail.

Strategic Report Governance Financial Statements

73Barratt Developments PLC Annual Report and Accounts 2024

Climate scenario analysis

Climate change could have a profound

impact on our operations, as well as

onourexternalstakeholderssuchas

suppliersandcustomers.Wehavetested

our business resilience against various

climate scenarios:

1.5°C sustainable transition

Orderly transition to a low-carbon economy, aligning

with regulatory efforts to limit the global temperature

rise to the Paris Agreement goal of 1.5°C by 2100.

Modelling methodology

In FY23, we presented the results of our detailed climate

scenario analysis. We evaluated a sample of sites from

our land bank to identify vulnerabilities and risks inherent

in our business model, including our capacity to transfer

industry-wide development costs to land vendors.

In FY24, we refined our financial assessment of carbon

pricing to reflect decarbonisation pathways planned by

our supply chain, summarised on page 81. The unmitigated

financial impacts under our “sustainable transition”

(transition risks and opportunities) and “adaptation”

(physical risks) scenarios are summarised in the risk

tableonpages76to78.

Please see our full Climate-related Risks and Opportunities

Analysis on our website further information onthese

scenarios and the impact on our business model:

www.barrattdevelopments.co.uk/building-sustainably/

our-publications-and-policies/publications

For more detail on our methodology and findings, see

ourfull Climate-related Risks and Opportunities Analysis:

www.barrattdevelopments.co.uk/building-sustainably/

our-publications-and-policies/publications

4.0°C adaptation

Global policy shifts away from prevention towards

adapting to a new climate, leading to a global

temperature rise of 4°C by 2100.

2.0°C disorderly transition

Minimal additional regulation until 2030, after which

stringent policies are hastily implemented to limit

warming to 2°C by 2100.

Sustainability-related risks and opportunities continued

Focus areas for FY24

In line with requirements, we will update our detailed

climate-related scenario modelling every three years. As

we expand our sustainability risk assessments to cover

emerging and priority areas, these will be updated in the

intervening years. For FY24, we focused on the potential

impact of standing water on our developments.

Standing water flooding

During FY24, we engaged external consultants to assess

surface water flooding risk across our developments

andsupplementourpreviousanalysesofcoastaland

fluvialflooding.

We examined current surface water flood risk across

a sample of our developments and reviewed climate

scenario-specific precipitation projections to consider

howsurfacewaterfloodingriskcoulddevelop.

Focus for FY25

While we already consider the impact of climate change

on our timber supply chain, we will research the impact of

physical risks across our broader supply chain beyond our

tier 1 suppliers, so we can better understand the potential

indirect impacts of climate change on our business.

Water and flood security is a key consideration in our site designs

74 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Strategic impact

Our analysis affirms that our business model remains

profitable under the current climate scenarios and timeframes,

even without additional mitigating actions and despite

associated costs. We will continue to monitor this in

ongoing assessments.

A sustainable transition, despite its costs, offers

opportunities. A disorderly transition, though disruptive,

would still see us maintain profitability. The adaptation

scenario has the least financial impact, which is manageable

thanks to proactive measures we’ve already implemented,

such as design changes and flood risk assessments.

To thrive in all three climate scenarios, we have highlighted

key areas to progress:

• reducingembodiedcarboninoursupplychain(seepages

81 to 84 for our transition pathway and how we are working

with our supply chain partners to achieve net zero);

• updating designs to meet stringent regulations

(seepage37forfindingsfromourresearchonour

concept eHome2); and

• leveraging our sustainability expertise to provide

energy-efficient, affordable homes and promote

greenmortgages.

For more on our metrics and targets to minimise our exposure to

climate-related risks and maximise the opportunities this offers,

seepage 79

Impact on the Financial Statements

Climate change impacts are not solely future oriented: they already shape the financial information we report today

andinfluenceourfinancialplanningandforecasts.

We integrate material climate-related impacts into our three-year forecasting cycle, with site-specific climate

considerations that influence our site profitability assessments. In our FY24 Financial Statements, we considered

thefinancialimpactofclimatechangeonthefollowingareas:

Going concern

and long-term

viability

We assessed whether there are any material uncertainties regarding our ability to continue

operating as a going concern (see note 1 to the Financial Statements on page 165). Additionally,

weassessedourlong-termprospectsfordisclosureinourViabilityStatement(seepage85).

Toensurecomprehensiveassessment,westresstestedourfinancialforecasts,consideringthe

impact of principal risks at severe but plausible levels over three years to 30 June 2027. We

included climate-related transition risks aligned with the sustainable transition scenario and

incorporated the impacts of the Future Homes Standard and carbon pricing.

Despite the presence of climate risk alongside other principal risks, our evaluation confirms

ourcapabilitytomeetourobligationsandsustainoperationsthroughoutthereviewperiod.

Land

acquisitions

We have integrated fluvial and coastal flood risk assessments into our evaluation of potential land

acquisitions and strategic site options. If any of our sites need additional flood mitigation measures,

we consider these in our viability assessments, tender offers and forecast margins. Our assessment

of flood risk under various climate scenarios indicates there are no sites in our existing portfolio

where the expense of enhanced flood defences would lead to an impairment. At year end, we

evaluate the carrying value of land and work in progress (see note 15 to the Financial Statements

onpage182).

Site profitability In our estimated costs to complete developments, we have included complying with Parts F and

L of the Building Regulations (applicable from 15 June 2022), and design adjustments to address

overheating concerns in homes. This aligns with our accounting policy in note 3 to the Financial

Statements on page 167.

These costs are reflected in the carrying values of inventories and the margins recognised for

developments in which we anticipate impacts to future completions.

Goodwill and

intangible assets

Annually, we reassess the carrying value of goodwill and intangible assets with indefinite useful

lives listed on the balance sheet. We calculate the present value of projected future cash flows

(outlined in note 10 to the Financial Statements on page 174).

Cash flow projections for years three to five incorporate the anticipated impact of announced

policies, as modelled in our climate scenario analysis for FY25. We have extended these projections to

perpetuity, reflecting the short to medium-term implications of climate change in our valuation process.

Sustainability-related risks and opportunities continued

Strategic Report Governance Financial Statements

75Barratt Developments PLC Annual Report and Accounts 2024

Sustainability-related risks and opportunities continued

Transition risks Key assumptions in impact calculations

Gross risk score

(sustainable

transition)

Estimated

maximum

unmitigated

financial impact Our response2025 2030 2050

Housing regulations

Changestohousespecifications

due to Government legislation to

reduce home carbon emissions,

for example the Future Homes

Standard, including varying

standards across the UK

• Average cost uplifts to meet the Future Homes Standard

and zero carbon homes (based on our internal calculations,

including current cost of technologies such as air source

heat pumps (ASHP) and mechanical ventilation systems).

• CostsofASHPfallby20%by2030and40%by2040,

duetoeconomiesofscaleandincreasedcompetition.

Increased build

cost of sales

byupto£155m

per annum

We support the Government’s climate ambitions, engaging with MPs

and industry partners in policy development.

We are committed to zero carbon homes, using innovative technologies

tested through projects like eHome2.

Our CEO chairs the Future Homes Hub and is a member of the

DESNZ-led Net Zero Council.

Carbon pricing

Increasing materials and

sub-contractor costs due to

Government legislation to reduce

emissions, and subsequent increased

demand for low-carbon materials, for

example carbon taxation on suppliers

• Carbon prices rise to $250/tCO

by 2050, in line with the

IEA Net Zero Emissions scenario.

• Average supply chain emission reductions of 90% by 2050.

• 100% of diesel usage by groundworkers substituted with

low-carbon alternatives by 2040.

Increased build

cost of sales

byupto£70m

per annum

We manage carbon price exposure by focusing on upstream supply

chainemissionsandrefiningscope3emissionsunderstanding.

In FY24, we collected emissions data from 20 key suppliers, guiding

them on carbon reduction.

We aim to standardise reporting for a more accurate scope 3 footprint

and integrate supplier performance.

New technologies

Implementation of new

technologies in homes and

construction, requiring high capital

investment and upskilling of labour

• Additional costs associated with technologies, such as

underfloor heating and infrared heating panels, which are

demanded by more sustainability-informed customers.

Increased build

cost of sales

byupto£25m

per annum

InFY24,wecompletedsalesonourfirstgas-freedevelopmentat

Delamare Park, Somerset, with all 82 homes featuring ASHPs.

We research low-carbon products through market studies, university

partnerships, prototype houses, and grant-supported trials, with

projectslikeeHome2enhancingenergyefficiency.

Planning requirements

Increasing planning or site

infrastructure requirements from

Government and local authorities

result in reduced viability of land

incertainregions

• The percentage of total Barratt developments subject to

increased sustainability requirements increases from 0%

in 2020 to up to 30% by 2050.

• Estimated cost per site to meet increased sustainability

requirements based on design and installation of a

previous Community Heat Hub and mains.

Increased build

cost of sales

byupto£60m

per annum

We strategically address planning requirements through collaboration

with landowners and expert research.

Our Land and Development Leadership Group evaluates land

acquisitions for compliance and sustainability, integrating green spaces

and renewable energy opportunities.

A sustainability toolkit supports our Land and Planning teams with

detailed information on standards, zero carbon homes, biodiversity,

and socio-economic outcomes.

Water scarcity

Increased water scarcity in areas

ofproposeddevelopments,leading

to additional planning requirements

to ensure a consistent water supply

for new homes

• Local authorities take a greater focus on water neutrality,

affecting the ability to gain planning permission.

• Installation of rainwater harvesting systems on

newdevelopments.

Increased build

cost of sales

by up to £5m

per annum

We design homes to use 105 litres per person per day, 16% lower than

regulatory requirements, reducing water withdrawals.

Our Group Head of Infrastructure and Utilities chairs the HBF

WaterMattersGroup,collaboratingtosolvewaterissuesaffecting

housing schemes.

Climate-related risks and opportunities

The maximum unmitigated financial impacts per annum of the material climate-related risks and opportunities and how we

are responding to them are presented in the tables below. For transition risks and opportunities, the financial impacts relate

toourParisAgreement-alignedsustainable transition scenario. Physical risk impacts are based on our adaptation scenario.

TheestimatedfinancialimpactsdonotfactorintheacquisitionofRedrowplc.

Gross risk score

Low High

Please see our full Climate-related Risks

andOpportunities Analysis for the risk and

opportunities assessment under each scenario:

www.barrattdevelopments.co.uk/building-sustainably/

our-publications-and-policies/publications

76 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Gross risk score

Low High

Sustainability-related risks and opportunities continued

Climate-related risks and opportunities continued

Physical risks Key assumptions in impact calculations

Gross risk score

(adaptation)

Estimated

maximum

unmitigated

financial impact Our response2025 2030 2050

Overheating in homes

Changestohousespecifications

required to mitigate long-term

shift in climate patterns,

such as prolonged increased

temperatures in summer

• London and East regions particularly susceptible to

overheating in the medium to long term.

• Additional mitigation measures, such as extractor fans or

air conditioning units, may be required in worst-affected

areas to address safety concerns about overheating.

Increased build

cost of sales

by up to £10m

per annum

We hold forums with consultants, industry experts, academics, and key

suppliers to develop innovative overheating solutions for volume housing.

We also conduct research on overheating and indoor air quality with

Birmingham City University and other housebuilders, and sponsor two

PhD students to study overheating mitigation to inform future designs.

Flood mitigation

New site infrastructure required to

mitigate extreme weather events,

forexamplefloodbarriersand

balancing ponds

• Based on localised climate projections, estimated

additional sites in our existing land bank that might

require additional flood defence infrastructure.

• Identified two sites and estimated cost based on flood

defence infrastructure spend at a similar site.

• Assessment covered fluvial and coastal flooding, but

excluded impacts from standing water flooding, due

toalackofavailabledata.

Increased build

cost of sales

by up to £5m

per annum

Weproactivelymitigatefloodriskthroughhorizonscanning,stakeholder

engagement and expert research.

Our Land and Development Leadership Group reviews all land purchases

forfloodrisk,andourdevelopmentstypicallyexceedtherequirementto

withstand a 1 in 100-year storm plus 30%.

We are conducting a value chain water risk assessment so we can

improveourunderstandingofwaterriskhotspots,includingflooding,

acrossourmaterialssuppliersandacrossourdevelopments,withfindings

informing our future water strategy.

Weather disruption

Disruption to build activity due

to increased frequency of severe

weather (heat, cold or precipitation)

or damage to construction sites

from extreme weather events

• Based on localised climate projections, estimated

potential disruption to construction activity due to

severe weather.

• Consecutive days lost could lead to disruption, increased

overhead costs and delays to sales.

Increased build

cost of sales

and decreased

revenue

by up to £5m

per annum

Our robust construction processes and crisis management protocols

help mitigate delays caused by extreme weather.

Wedesignschemeswithfloodprotectionandsustainableurbandrainage

systems. Divisional SHE Managers ensure health and safety in adverse

weather,withenergy-efficientsitecabinsandadjustablebuildschedules.

Timber frame construction methods minimise on-site build time,

enhancing resilience to weather-related delays.

Supply availability

Reduced supply availability (such

as timber) due to long-term shift

in climate patterns and extreme

weatherevents(suchaswildfires

orflooding)wherewesourcesupply

• Supply availability assessment based on timber suppliers

primarily in Sweden, Finland and Germany.

• Using localised climate projections, considered supply

chain shocks as a result of increased likelihood of

forestwildfire.

• Analysed short-term price impacts of sourcing elsewhere

due to disrupted supply, and sustained price rises in the

medium to long term.

Increased build

cost of sales

by up to £5m

per annum

Our Timber Sourcing Policy ensures all timber products that we purchase

areFSC/PEFCcertified,withannualsurveysconfirmingcompliance.

Group agreements enforce adherence to our Sustainable Procurement

and Timber Sourcing Policies. We engage suppliers via our Timber

Sourcing Policy and the Supply Chain Sustainability School, providing

resources on sustainable timber sourcing.

Oursuppliermaturitymatrixassessesperformanceandidentifies

collaboration opportunities, with many suppliers meeting targets

byJuly2024.

Strategic Report Governance Financial Statements

77Barratt Developments PLC Annual Report and Accounts 2024

Gross opportunity score

Low High

Opportunities Key assumptions in impact calculations

Gross risk score

(sustainable

transition)

Estimated

maximum

unmitigated

financial impact Our response2025 2030 2050

Demand for and affordability

of green homes

Eligibility for green mortgages and

costsavingsfromenergyefficiency

allow for a premium charge

on new homes

• House buyers will be able to borrow more and buy a larger

home on a green mortgage, due to increased affordability

of energy-efficient homes.

• Based on existing green mortgage offers, an average

private buyer could borrow between 5% and 10% more on

a new build Barratt home, compared to an older property

(built before 2020).

Increased

revenue by

up to £320m

per annum

Our customer research shows rising interest in sustainable,

energy-efficienthomes,withmorelendersofferinggreenmortgages.

We’ve collaborated with lenders to launch green mortgage

products, potentially increasing lending by up to 10% for our energy-

efficienthomes.

Through the Future Homes Hub, we educate valuers on assessing

sustainablefeatures,enhancinghomeaffordabilityandaccessibilityin

line with consumer demand for eco-friendly living.

Green developments

Increased land buying and local

partnership opportunities through

strong low-carbon credentials and

offeroflow-carbondevelopments,

for instance partnering with councils

to deliver low-carbon homes

• Based on the UK Government’s Ten Point Plan for a Green

Industrial Revolution (November 2020)

, up to 25% of land

will need to be available for low-carbon and climate-

resilient homes by 2050.

• Access to some land may be restricted to developers

offering low-carbon credentials like our own, resulting

in lower competition and discounted rates on these

developments.

Decreased land

cost of sales

by up to £65m

per annum

Our divisional land teams ensure compliance with planning regulations

and achieve local consents through technical and planning expertise.

We use tools like the Land Bidding Toolkit to highlight our sustainability

credentials in land bids.

As a leading sustainable housebuilder, we build strong relationships

with landowners, showcasing our innovation and performance through

benchmarks such as NextGeneration, and dedicated publications such

as land planning brochures.

Cost of capital

Our sustainability performance

opensgreenfinancing

opportunities, providing access

tolowerinterestrates

• The potential to reduce finance costs if we switch

borrowings to a green finance equivalent.

Decreased

finance

costs by

less than £1m

per annum

Within our Building Sustainably Framework, we commit to exploring

newgreenfinanceproducts.

In FY23, we linked our Revolving Credit Facility (RCF) to sustainability

performance via a sustainability-linked loan mechanism (see page 79).

Sustainable practices

Adopting low-emissions materials

and processes, ahead of regulation,

provides a cost advantage and

improves reputation

• Using low-carbon materials in the build process may

provide cost savings through avoided carbon taxations

within the supply chain.

• Average embodied carbon savings multiplied by the

projected carbon prices (as per IEA’s dataset) to

determinecostsavingsassociatedwithswitching

toalower-carbonmaterial.

Decreased

build cost

of sales

by up to £5m

per annum

Our strategy emphasises investing in innovative products, techniques,

and customer insights, aiming for zero carbon homes by 2030.

We conduct market research, product testing, and collaborate with

universities, using prototype test houses like eHome2.

Our Group Design and Technical teams drive incremental carbon

reductions with milestones and transitional plans for existing sites.

1 Our Sustainable Procurement and Timber Sourcing Policies are available at www.barrattdevelopments.co.uk/building-sustainably/our-publications-and-policies/policies.

2 www.gov.uk/government/publications/the-ten-point-plan-for-a-green-industrial-revolution.

Sustainability-related risks and opportunities continued

Climate-related risks and opportunities continued

78 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Climate-related metrics and targets

Our primary focus areas are reducing emissions from our homes,

enhancingenergyefficiencyandbolsteringresiliencetoclimate

change for our customers. Our Sustainable Operations Group

monitors key performance metrics in our focus areas.

Metric and target status Risk/opportunity Description Performance against target

Progress narrative

Scope 1 and 2 (market-

based) emissions (tCO

Carbon

pricing

Scope 1 and 2 emissions are 1% of our total

value chain, but we aim for net zero in direct

operations by 2040.

Read more about our scope 1 and 2 science-based

targets on page 81.

Scope 1 and 2 emissions fell 34% this

year, 50% below our 2018 baseline, due

to lower output drop, reduced fuel use,

and 40% diesel substitution with HVO.

See pages 82 to 84 for our

decarbonisationlevers

Scope 3 greenhouse gas

intensity (tCO

e/100m

)

Carbon

pricing

We monitor carbon pricing exposure via indirect

emissions, using them as indicators of potential

future regulatory cost increases.

Read more about our scope 3 science-based targets

onpage 81.

Scope 3 emissions intensity dropped

10% this year, mainly from reduced

overheads and grid decarbonisation.

InFY25,we’lladoptaquantity-based

method to better capture supplier and

material impacts.

See page 81 for our transition plan

Average dwelling emissions

rate (DER) for completed

properties (kgCO

/yr)

Housing

regulations;

demand for and

affordability of

green homes

The Future Homes Standard is expected to

mandate a 75%-80% reduction in Dwelling

Emissions Rate (DER) compared to 2013

building standards for new builds.

Average DER improved by 1.5%, though

less than anticipated due to slower

2021 regulation transition and product

mix changes. Home emissions will

decrease as more energy-efficient

house types advance through planning,

construction and sales.

Home completions in year

achieving an A or B EPC

rating (%)

Demand for and

affordability of

green homes

New Barratt homes can unlock annual energy

savings of up to £2,200 compared to older

homes. Maintaining top energy ratings ensures

we capitalise on opportunities for energy-

efficient new homes.

Over 99% of our homes maintained

anAorBrating,providingsignificant

energy savings for customers.

See page 29 for our work with lenders on

mortgage products reflecting our energy-

efficient homes

Use of offsite-based

products and systems in

homes constructed (%)

New technologies;

weather

disruption;

sustainable

practices

Offsite production reduces build time and

increases resilience to severe weather. In FY22,

we accelerated our 2025 target to apply offsite-

based products and systems to 30% of homes.

We delivered 4,668 plots using MMC,

which represented 33% of gross

completions, surpassing our FY25 target

of 30%.

See page 39 for details on accelerating timber

frame home delivery with our new Oregon

facility at Infinity Park, Derby

1 Performance data for the last five years is included in the five-year record on pages 212 and 213.

On track Target not met

Metric linked to the

Revolving Credit Facility

Metric linked to the

LongTermPerformancePlan

Below targetMonitorAchieved

RCF

LTPP

RCF

Target

Baseline

FY30

FY23

14,794

24,909

16,458

32,657

FY24

FY18

Target

Baseline

FY34

FY23

70.10

242.13

218.68

222.83

FY24

FY18

Target

Baseline

FY25

FY23

12.91

16.02

15.78

15.89

FY24

FY22

Target Ongoing

Baseline

FY23

99.0%

99.2%

99.8%

96.8%

FY24

FY18

RCF LTPP

Target

Baseline

FY25

FY23

30%

32%

33%

19%

FY24

FY18

Our primary exposures to climate change stem from transition

risks, building regulations and carbon pricing. Physical risks pose

minimal threats, as our land appraisal process already integrates

considerationsforhazardssuchasflooding.

Instead of applying a generalised percentage to overall business

activities facing physical risks, we monitor our risk exposure through

risk-specificmetrics,asdetailedinthetablebelow.

Industry-specific metrics are inour SASB disclosure on

ourwebsite

Cross-industry metrics are in our five-year record on

pages212 and 213

For our climate risk exposures, see our climate risk register

on pages 76 to 78

Sustainability-related risks and opportunities continued

Strategic Report Governance Financial Statements

79Barratt Developments PLC Annual Report and Accounts 2024

Climate-related metrics and targets continued

Greenhouse gas (GHG) emissions

Our greenhouse gas emissions are presented below.

For a breakdown of our value chain emissions and our plans to decarbonise in line with our 2040 net zero ambition, see page 81.

More detail on FY24 performance and progress against targets is on page 79.

Greenhouse gas emissions

 

2024 2023 2022 2021 2020

Baseline

2018

 

Scope 1 tCO

e 15,523

23,580 23,234 26,769 20,323 27,577

Scope 2 Market based tCO

e 935

1,329 1,840 2,496 1,640 5,080

Location based tCO

e 6,332

5,515 4,802 5,973 4,260 6,716

Total gross scope 1 and 2 emissions Market based tCO

e 16,458 24,909 25,074 29,265 21,963 32,657

Location based tCO

e 21,855 29,095 28,036 32,742 24,583 34,293

Scope 1 and 2 energy consumption  MWh 117,687

139,718 128,189 141,945 102,966 127,496

Carbon intensity (scope 1 and 2 emissions per 100m

of legally

completed build area)

Market based tCO

e/100m

1.26

1.60 1.53 1.78 1.80 1.90

Location based tCO

e/100m

1.67

1.86 1.71 1.99 2.02 1.99

Scope 3 category 1: purchased goods and services  tCO

e 1,701,176 2,332,213 2,395,642 1,923,397 2,019,509 2,421,559

Scope 3 category 11: use of sold products  tCO

e 992,879

1,217,738 1,244,317 1,352,982 930,797 1,273,346

Other scope 3 emissions tCO

e 170,126 229,378 241,921 144,890 178,479 160,785

Total gross scope 3 emissions tCO

e 2,864,181 3,779,329 3,881,879 3,421,269 3,128,785 3,855,690

Scope 3 carbon intensity (scope 3 emissions per 100m

of legally

completed build area)  tCO

e/100m

218.68 242.13 236.67 208.12 256.52 222.83

Total gross scope 1, 2 and 3 emissions Market based tCO

e 2,880,639 3,804,238 3,906,953 3,450,534 3,150,748 3,888,347

Location based tCO

e 2,886,036 3,808,424 3,909,915 3,454,011 3,153,368 3,889,983

Outside of scopes emissions tCO

e 4,779 3,698 1,499 909 718 128

Scope 1, 2 and 3 GHG emissions have been measured in accordance with the operational control

method of the GHG Protocol. All scope 1 and 2 GHG emissions arise in the UK. Emission factors

come from BEIS ‘UK Government Conversion Factors for Company Reporting 2023’.

Scope 1 and scope 2 energy consumption comprises scope 1 energy consumption of 87,070

MWh* and scope 2 energy consumption of 30,617 MWh*.

Other scope 3 emissions is comprised of category 2: capital goods; category 3: fuel and energy

related activities (4,533 tCO

e)*; category 4: upstream transportation and distribution; category

6: business travel (5,170 tCO

e)*; category 7: employee commuting; and category 12: end of life

treatment of sold products.

Deloitte LLP (‘Deloitte’) have provided independent third-party limited assurance in accordance

with the International Standard for Assurance Engagements 3000 (ISAE 3000) and Assurance

Engagements on Greenhouse Gas Statements (ISAE 3410) issued by the International Auditing

and Assurance Standards Board (IAASB) over selected metrics in the table and footnotes above

identified with an *. For Deloitte’s full unqualified assurance opinion, which includes details

of the selected metrics assured, our full Carbon Reporting Methodology Statement, our ESG

Basis of Reporting and a full breakdown of scope 3 GHG emissions, see our website at www.

barrattdevelopments.co.uk/building-sustainably/our-publications-and-policies/publications.

Read more on our sustainability performance on our

website: www.barrattdevelopments.co.uk/

building-sustainably/performance-data/data

See our website for our data reporting policies and

insurance statements: www.barrattdevelopments.co.uk/

building-sustainably/our-publications-and-policies/

publications

Sustainability-related risks and opportunities continued

80 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

The Group is committed to

achieving net zero emissions

across our entire value chain

by 2040 and we recognise that

while we have control of how we

reduce emissions from our direct

operations, scope 1 and 2, we

know we will have to continue

toinfluenceareasoutsideour

direct control to reduce our

emissions in scope 3. We have

been further developing our

transition plan and model to

allow us to understand where

wecandrivereductionsand

thetotalimpactthatwillhave

on our value chain emissions.

Sustainability-related risks and opportunities continued

Scope 1 and 2

Grid decarbonisation

Building standards

Diesel substitution

Building techniques

Main contractors

Bricks and blocks

Timber

Concrete and cement

Lime and gypsum (plasterboard)

Additional materials

Material choices

2024

100%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2040

99% scope 3

2025 2030 2035

% of value chain emissions (scopes 1,2 and 3)

Absolute reduction

29.0%

reduction by 2025

54.7%

reduction by 2030 (4.6% p.a.)

Net zero by

2040

(4.5% p.a.)

We have four science-based

targets, which are awaiting

validation by the Science Based

Targets initiative.

Near term

Intensity reduction

68.7%

reduction by 2034 (4.3% p.a.)

Near term

Long term

Net zero by

2040

(4.5% p.a.)

Long term

Scope 1and 2

Scope 3

Our greenhouse gas emission reduction targets

In FY24, our total carbon footprint across all scopes was estimated to be over 2.8m tCO

e.Ofthis,lessthan1%was

from our direct operational activities. The remainder (99%) came from the transformation of raw materials into products,

transport to sites, site preparation and groundworks, and the impact of the homes that we build over their lifetime.

Transition plan

Strategic Report Governance Financial Statements

81Barratt Developments PLC Annual Report and Accounts 2024

How could the Group achieve net zero by 2040?

Sustainability-related risks and opportunities continued

Our decarbonisation levers

We have identified six principal “decarbonisation levers”

that we consider have the most material impact on

achieving our transition towards net zero operations and

Levers

Reduce embodied

carbon

Future Homes Standard*

Move to quantity-based reporting to enable more direct carbon emissions

dataonproducts.

Diesel substituted by

HVO circa 40%

Minimise diesel generator hire

60% reduction in diesel.

Continued investigations and trials e.g. carbon removal

No diesel cars offered

since June 2022

No petrol cars offered

since June 2024

Hydrogen investigations

(where technology feasible)

100% zero carbon homes*

80% reduction

Reduce emissions

from completed homes

Diesel reduction/

replacement

Renewable tariffs

andplot heating

Low-emissions

business travel

Low-emissions

business premises

and facilities

2040

2025 2030 2035

Ambition and action – underway and under investigation

100% of company car fleet to be electric or hybrid

100% renewable electricity

supply chain. Within each of these levers we have identified

a number of actions we can take – some of these are

currently underway, while others require further work with

value chain partners to understand when and how they

can be deployed. See page 84 for how we are seeking to

overcome challenges and barriers to achieve this.

The figure below sets out the broad areas we are prioritising

to deliver our carbon reduction ambitions.

Our plans to reduce emissions from completed homes rely heavily on the Future Homes

Standard. This is currently delayed, and we await the introduction of this, after which we will

review our detailed plans.

More on the challenges we face to deliver thetransition plan on

page84

Hybrid generators

Zero carbon pilots*

40% reduction

100% of company vans

diesel/petrol free

No diesel on sites

100% carbon-free grid –

Government commitment

Electric plant

(where technology feasible)

Continued energy reduction programme

* Subject to Future Homes Standard being introduced.

82 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Sustainability-related risks and opportunities continued

Reducing embodied carbon of materials

For scope 3, reducing the embodied carbon of construction

materials is our priority, which we influence by specifying

low-carbon materials in design and construction of homes.

Approximately 50% of the emissions relating to materials

arises from our interaction with 20 of our suppliers.

This year, we directly engaged with these suppliers to

examine their emission reduction plans and how they

would be achieved. We sought to understand how they

tracked reductions in embodied carbon, and the extent

to which materials are backed by Environmental Product

Declarations (EPDs). Emissions data from EPDs is critical

inselectingsuppliersandlowerembodiedcarbonmaterials

over time.

To track the impact of supplier and material selection on

our transition pathway over the next three years, we aim

to start the move from a spend-based Environmentally

Extended Input Output (EEIO) approach to using quantity-based

data. This will inform the actions needed over time and

investments required to lower embodied carbon products.

Reduce emissions in-use

fromcompletedhomes

The Group is committed to zero carbon ready homes

by 2030 (regulated energy). The Future Homes Standard

will phase out gas boilers, reducing the lifetime in-use

emissions of our sold homes. Our plans rely heavily on

the delayed standard. Once introduced, we will review our

detailed plans. Should the grid become zero carbon by

2030, then this further reduces potential emissions in use.

Reduce emissions from construction sites

For scopes 1 and 2, our priority is reducing diesel

consumption from telehandlers and generators.

In the short term, diesel is being substituted for alternative

fuels such as hydrotreated vegetable oil (HVO). In order

to enable us to trial hydrogen plant and understand how

quickly this can be adopted, we will monitor the regulations

governing hydrogen plant use on public highways. We are

also exploring opportunities to pilot innovative electric plant.

Another priority is reducing plot heating from natural

gas. Regulatory requirements, such as the Future Homes

Standard, will move plot heating to electricity (using air

source heat pumps).

From FY24, our new Plant and Machinery Dashboard

supplements our Carbon Emissions Dashboard, providing

deeper insights into fuel consumption and efficiency

opportunities in line with relevant remuneration targets.

Our ESG Data and Controls Working Group has devised a

roadmap to automate ESG data collection, fortify internal

controls and facilitate prompt decision making across our

sites and offices.

In FY25, we will explore automated data capture for

scopes 1 and 2 emissions from our operations, and scope

3 emissions from our supply chain, to strengthen timely

decision-making processes.

Low-emissions business travel

Emissions from business travel, premises and facilities

make a smaller contribution. We are managing this through

the electrification of our company vehicle fleet, and

switching supplies for premises to renewable energy.

78% of our company car fleet were either electric or

hybrids as of 30 June 2024. As the availability of electric

vans increases we will roll these out across our fleet and

we are trialling smaller, electric customer service vans to

determine the pace of wider adoption. Larger commercial

vans are not currently widely available.

Reduce emissions from business premises

and facilities

In FY24, 87% of electricity consumed within our business

premises and facilities was renewable-backed. The remaining

13% supplies offices that are third-party owned or leased, and

when leases renew or expire, embedding energy efficiency

into new leases will be promoted.

Electric vehicle charging point at Kingsbrook

Our decarbonisation levers continued

Strategic Report Governance Financial Statements

83Barratt Developments PLC Annual Report and Accounts 2024

Sustainability-related risks and opportunities continued

Overcoming challenges and barriers

In order to successfully deliver our transition to net zero, there are critical challenges and barriers to overcome. There are multiple

interdependencies, which rely on us actively engaging with other businesses, government and wider society, to drive the transition

collaboratively. Our ambition rests on the challenges outlined below being overcome at a national level.

Effective regulation

Alackofeffectiveregulation,itspracticalapplicationandclarity

over transition timelines has created uncertainty and delayed

implementation of stronger building standards.

The Future Homes Standard implementation and associated

calculation tools are key to the delivery of our plans but at the

timeofwritingthishasbeendelayed.

Clear targets with time to deliver

Withoutadefinedandclearroadmaptozerocarbonhomes

theindustryisunabletobuildconfidenceandunlock

investment at scale.

Government should set the direction, with a cross-sector, long-term

plan to net zero that sets clear targets and a consistent approach

to measurement and reporting.

Confident consumers

Consumersareincreasinglydemandingenergyefficienthomes.

However,publicawarenessofoptions,costsandbenefitsremains

lowwithinbothretrofitandnewbuildhomes.Consumerawareness

and acceptance will stimulate investment and demand for all

energyefficienthomes.

Simple solutions need to be endorsed, and backed, by clear,

independent advice via trusted consumer sources. Accredited

products, training and installation standards are needed.

Government should support this, for example, by raising public

awareness at scale.

Impactful green finance

Who pays for the transition is critical. It requires a collection of

measuresthatappropriatelyaddressdifferenttenuresofhomes.

Forhomepurchasers,greenfinancewilldriveandunlockconsumer

demandwithenergyefficiencybuiltintoaffordabilitystatementsat

the point of consideration.

Net zero ready skills and supply chains

The construction sector already has a skills shortage, and this will

be exacerbated by the drive to net zero.

As part of a long-term, interconnected roadmap to net zero, we

need a detailed plan of the skills gap and create the necessary

pathways and mechanisms to allow time for training, alongside the

development of the materials and equipment that reduce embodied

carbon and energy use.

Clear standards, consistently measured

There are a number of standards that are currently inconsistent,

without a shared baseline, or common approach, which prevent

the sector from driving better outcomes. For example, Energy

PerformanceCertificatesarerecognisableandeasytounderstand,

however, they need to be reformed with the customer in mind.

Agreateremphasisoncarbonemissionswouldavoidaheat

pump negatively impacting a home’s rating. Similarly, consistency

inmethodologyofspecificenvironmentaldataforproducts

wouldencourageconfidenceinthemovetomaterialswithlower

embodied carbon.

A decarbonised grid

Any delay to UK grid decarbonisation plans will impact the Group’s

transition to Net Zero. Our key materials sectors and our own

transition plan are dependent upon the UK decarbonising the grid

by 2030 as per the Government’s stated ambition.

Technology and policy dependence

For our own direct emissions, we are reliant upon advancements

in low-carbon plant and equipment that have the lifting capacity

of the current fossil-fuel equipment. For example, we need

advancements in electric and hydrogen site plant, supported by

the establishment of appropriate policy and infrastructure and

safety requirements so that these can be trialled, tested and

deployed at scale.

Challenges in the value chain

Approximately 35% of our footprint is dependent upon activities

driven by our value chain partners.

Alignment of sectoral commitments

Misalignment of sectoral commitments for our key materials at

anationallevelwillunderminedeliveryofourtransitionplan.

We have examined sectoral commitments for materials we

recognise as key to driving our emissions reduction plans. Not all

of these sectors are aligned, however, they set out the ways in

which emissions reductions are expected to be delivered and this

provides a useful starting point for more direct engagement with

our partners.

Reliance on technology

Many key material sectors, particularly those in high-energy

manufacturing, are reliant on the deployment of unproven

technology such as carbon capture usage and storage (CCUS)

from 2030.

There is still no certainty on the timeline for upscaling CCUS, and

this therefore puts many of the sectoral transition plans at risk,

which could impact our plans.

Supply chain readiness

Ourkeysuppliersrequireconfidencetoinvestintechnologyandskills.

Suppliers in our key material sectors often have less ambitious

net zero targets than the Group, with most suppliers looking to

2050, capitalising on future technology improvements and emission

reduction opportunities in their supply chains.

Our decarbonisation levers continued

84 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Going concern

In determining the appropriate basis of preparation of the

Financial Statements, the Directors are required to consider

whether the Group can continue in operational existence for

the foreseeable future.

Accordingly, after making enquiries and having considered

forecasts and appropriate sensitivities, the Directors have

formed a judgement, at the time of approving the Financial

Statements, that there is reasonable expectation that the

Group has adequate resources to continue to operate for

the foreseeable future, being at least 12 months from the

date of these Financial Statements. (More information on

the going concern judgement can be found in note 1 to the

Financial Statements.) Therefore the Directors continue to

adopt the going concern basis in the preparation of these

Financial Statements.

Viability statement

In accordance with the Code, the Directors have assessed

the prospects and financial viability of the Group over

the longer term, considering both its current position

and circumstances, and the potential impact of its

principal risks. The Group’s business model is presented

on pages 10 and 11 and its future prospects are primarily

monitored through the risk management processes detailed

on page 63.

On 21 August 2024 the Group acquired the full share capital

of Redrow plc in an all share transaction. In accordance

with standard practice, the Competition and Markets

Authority (the CMA) has issued an Initial Enforcement Order

requiring the Barratt and Redrow businesses to continue to

operate independently until the CMA has formally accepted

the undertakings proposed by the parties in response to

the findings of its phase 1 investigation, or otherwise agrees

to integration taking place. The sharing of competitively

sensitive information between the businesses is prohibited

while the Enforcement Order is in place. In recognition of

the need for the pre-acquisition business to be able to

support itself independently, the Directors have considered

the ability to continue trading of both the group of companies

that existed prior to the acquisition (the ‘Barratt group’) and

the new group including Redrow plc and its subsidiaries

(the ‘combined group’).

Assessment period

For the long-term viability statement, the Directors consider

that a three-year review period is appropriate. This period

is aligned to our operating framework of a 3.5 year owned

land bank, and the time frame over which the majority of

our risks have the potential to manifest. Additionally, the

Barratt group’s bottom-up planning and forecasting cycle,

which considers a wide range of information relating to

present and future business conditions, including those

impacting on expected profitability, cash flows, and funding

requirements, covers three years. As the Redrow business

also operates with a strategic three year planning horizon

and similar land cycle, this review period is also appropriate

for an assessment of the combined group.

As environmental and climate change risks become more

significant, the potential for moving towards a five-year review

period will be considered for future viability assessments.

The Barratt group’s and combined group’s business plans

reflect the anticipated effects of the current economic

environment. The Barratt group and combined group are

forecast to remain profitable and in compliance with

financial covenants throughout the forecast period.

Principal risks

The Barratt group continues to be subject to its principal

risks, which are detailed on pages 65 to 70. The Directors

consider the principal risks of the Barratt group to be

applicable to the combined group. In addition, the risk that

synergies are not achieved from the Redrow combination

has been identified as a new principal risk. This Viability

Statement considers the impact that these risks might have

on the ability of the Barratt group and the combined group

to meet their targets in current market conditions over the

review period.

Viability Statement

Strategic Report Governance Financial Statements

85Barratt Developments PLC Annual Report and Accounts 2024

Viability Statement continued

Principal risks continued

The current economic environment presents significant macroeconomic uncertainties, most notably around interest rates and their consequent impacts on UK economic growth, housing

affordability, as well as consumer confidence and spending. The risks that were considered relevant, for which the impacts were applied in aggregate, were as follows:

Principal risk Impact modelled Group resilience to risk impact modelled Mitigating actions to risk impact modelled

Economic

environment,

Landand planning

A decline in demand, leading to a 5% reduction

in private average selling prices compared to

FY24 levels throughout FY25 and FY26 followed

by a 2% recovery in FY27, and a fall in sales

volumes of 15% in FY25 followed by a 5%

recovery in FY26 and FY27.

Geographic and product diversity allows for flexibility in

response to market conditions whilst the diverse land bank

allows for selective development of future sites.

In response to lower volumes, a reduction

in uncommitted land investment, lower

production and reduction in overhead base.

Increased focus on affordable housing

contracts and bulk sales to reduce reliance

onprivatesales.

Increased levels of sales incentives to maintain

volumes in challenging economic environment.

C Government

regulation and

political risk

Increased regulations on housebuilding,

including early implementation of the Future

Homes Standard and increased carbon

pricing as part of commitments to limit global

temperatureriseto1.50C.

An additional cost per private plot of £4,500

for compliance with additional regulations has

been included, applied to 10% of plots in FY26

and 40% of plots in FY27.

Continuous review of the operational and financial impact of

building regulations, including the Future Homes Standard, to

adapt and plan for compliance.

For details regarding the Group’s engagement

with Government, opposition parties and

regulators, see page 54.

For the transition plan to achieve net zero by

2040 and mitigating exposure to carbon pricing,

see page 81.

E High rise

and complex

structures

A Building Safety Levy of £1,500 per private plot

for potential additional safety costs that could

be imposed by the UK Government, applied to

10% of plots in FY26 and 40% of plots in FY27.

A £50m increase in the building safety

provision in FY25.

Strong balance sheet and net cash position along with good

cost control through well monitored build programmes.

As an industry-wide cost, any such levy will

likely be factored in to future land bids over

themediumterm.

For further details regarding the building safety

provision, see note 19 on pages 186 to 188.

F Supply chain

resilience

A further increase in material and labour costs

of 2% arising from shortfalls in supply and

inflationary pressures.

Key supplier audit programme, centralised procurement

and long-standing relationships ensure continuity of

supply. Robust cost control through well monitored

buildprogrammes.

Redesign of developments to emphasise cost

savings. Development of multiple supplier

relationships for labour and material supplies,

with contingency plans should any key

supplier fail.

J Redrow integration No synergies are assumed in the

combined forecast.

A dedicated Integration Management Office has been

established to oversee the combination.

Expected synergies will be tracked, monitored

and reported to the Integration Steering Committee.

86 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Viability Statement continued

Outcome of assessment

To assess the resilience of the Barratt group and combined

group to adverse outcomes, their forecast performance

over the three-year period was sensitised to reflect a series

of scenarios based on the identified principal risks and

the downside prospects for the UK economy and housing

market presented in the latest external economic forecasts.

This assessment included a reasonable worst-case scenario

in which the principal risks manifest to a severe but plausible

level. For the purposes of this assessment, it was assumed

that the financing facilities available to the combined group

were those currently available to the Barratt group, and that

all associated financial covenants would apply.

The Barratt group and combined group would undertake

mitigating actions in response to the challenging circumstances

modelled. This would primarily involve a reduction in

investment in land and work in progress in line with the

fall in expected sales, and would not prevent the ability of

the Barratt group or the combined group to grow over the

long term.

Under the described scenario, the Barratt group and the

combined group are able to operate within current facilities,

meet liabilities as they fall due, and remain in compliance

with financial covenants in the assessed period. The

Group has a policy of maintaining a £150m headroom on

its available facilities and both the Barratt group and the

combined group would remain in compliance with this

policy throughout the viability review period.

Mitigations

In such challenging economic circumstances, additional

options would be available to ensure that the Group

would retain the flexibility to react to further risks or

opportunities, including:

i. Further reductions in uncommitted land spend;

ii. Redesign of developments to emphasise cost savings;

iii. Disposal of interests in joint ventures to partners; and

iv. Sale of land or unsold stock at discounted value.

As these actions could affect the long-term solvency

and growth prospects of the Group, they would only be

used to meet immediate requirements. Nonetheless,

their availability in addition to the actions modelled

demonstrates that the Barratt group has further flexibility

to respond to challenges as they arise.

Conclusion

Based on this review, the Directors confirm that they have

a reasonable expectation that the Group will be able to

continue in operation and meet its liabilities as they fall

dueoverthethree-yearperiodoftheirassessment.

Over the longer term, climate change will present an

increasing risk to the Group. In response to this, and

in line with the recommendations of the Task Force for

Climate-related Financial Disclosures, the Board has

undertaken a review of the climate-related risks and

opportunities that may affect the business out to 2050,

including the modelling of the Barratt group’s resilience

under several climate-related scenarios. The results of

this review, as well as the action being undertaken to

ensurethebusinessiswellpositionedtothriveinthe

newphysical,socio-economicandregulatoryenvironment,

are set out on pages 71 to 84.

Looking forward, significant macroeconomic challenges,

most a prolonged higher interest rate environment, will

impact the housebuilding sector going in the medium term.

The Directors consider that the Group can demonstrate

its resilience to these challenges with its well-capitalised

balance sheet, strong net cash balance and a solid forward

sales position going into FY25.

Approval of the Strategic Report

The Strategic Report on pages 1 to 87 was approved

bytheBoardandsignedonitsbehalfby

David Thomas

Chief Executive

3 September 2024

Strategic Report Governance Financial Statements

87Barratt Developments PLC Annual Report and Accounts 2024

Governance

89 BoardofDirectorsandCompanySecretary

93 Executive Committee

94 Corporate Governance Report

102 Nomination Committee Report

112 Audit and Risk Committee Report

121 Safety, Health and Environment Committee Report

123 Remuneration Report

146 Other statutory disclosures

148 Statement of Directors’ responsibilities

Strategic Report Governance Financial Statements

Anson Gardens, Fradley

88 Barratt Developments PLC Annual Report and Accounts 2024

A collaborative Board

Read more about

Chris on page 92

Read more about

Katie on page 91

Read more about

Steven on page 90

Read more about

Jasi on page 91

Read more about

Jock on page 91

Read more about

David on page 90

Read more about

Mike on page 91

Read more about

Caroline on page 90

Read more about

Tina on page 92

Read more about

Nigel on page 92

Read more about our Board on pages 90 to 92

Board of Directors and Company Secretary

89Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Board of Directors and Company Secretary continued

Caroline Silver

Chair

Appointed:

Caroline joined the Board on 1 June 2023, and was

appointed Non-Executive Chair on 30 June 2023.

She became Designated Non-Executive Director

forWorkforceEngagementinJuly2023.

Skills and qualifications:

Caroline brings a wealth of knowledge and

experience to the Board across a number of

commercial,financial,investmentbanking,

governance and board leadership roles. Caroline

was Chair of PZ Cussons PLC until 31 March 2023

and was Non-Executive Director of Meggitt PLC

and M&G PLC. She served on the boards of BUPA

and the London Ambulance Service NHS Trust and

as a trustee of the Victoria and Albert Museum.

She spent over 30 years in the investment banking

sector,holdingseniorcorporatefinanceandM&A

positions at Morgan Stanley and Merrill Lynch, and

until 2020, was a partner and Managing Director at

Moelis & Company. Caroline started her career as

aCharteredAccountantatPwC.

External appointments:

Caroline is currently a Non-Executive Director

at Tesco PLC and Intercontinental Exchange,

Inc. She is also a member of the International

Advisory Board of Adobe Inc, a member of the V&A

Foundation, a Senior Adviser to Moelis & Company

and Chair of the Audit Committee of the National

Film and Television School.

David Thomas

Chief Executive

Appointed:

David joined the Board as an Executive Director

and Group Finance Director in July 2009, and

wasappointedChiefExecutiveinJuly2015.

Skills and qualifications:

Davidbringssignificantleadershipandfinance

experience acquired over several years in senior

positions, and is an Associate of the Institute of

Chartered Accountants in England and Wales. He

was previously Group Finance Director and Deputy

Chief Executive of The GAME Group plc, and Group

Finance Director at Millennium and Copthorne

Hotelsplc.Hehasalsoheldseniorfinancialroles

with House of Fraser plc and Forte plc. David is

also a former trustee of the Barratt Developments

PLC Charitable Foundation.

External appointments:

David is a Non-Executive Director of the HBF,

ChairoftheFutureHomesHub,amemberof

theNetZeroCouncilandaTrusteeatCentrePoint,

theUK’sleadingyouthhomelessnesscharity.

Steven Boyes

Chief Operating Officer and Deputy

Chief Executive

Appointed:

Steven joined the Board as an Executive Director in

July2001,becameChiefOperatingOfficerinJuly

2012 and Deputy Chief Executive in February 2016.

He is responsible for the Group’s housebuilding

operations and the land promotion business,

Gladman Developments Limited.

Skills and qualifications:

Steven has over 40 years’ experience in the

housebuilding industry, having joined as a junior

quantity surveyor in 1978. He progressed through

the business to assume the roles of Technical

Director and Managing Director of Barratt York,

before being appointed Regional Director for

BarrattNorthernin1999.Stevenwaspreviously

aTrusteeoftheUKGreenBuildingCouncil.

External appointments:

Stevenholdsnoexternalappointments.

Committee membership key

Audit and Risk Committee

Nomination Committee

Remuneration Committee

Disclosure Committee

Safety, Health and Environment Committee

Sustainability Committee

Workforce Forum

Chair of Committee

90 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Mike Scott

Chief Financial Officer

Appointed:

Mike joined the Board as an Executive Director

andChiefFinancialOfficerinDecember2021.

Skills and qualifications:

Mike has extensive experience in the housebuilding

sector and is a Fellow of the Institute of Chartered

Accountants in England and Wales. He was previously

ChiefFinancialOfficerofCountrysidePropertiesPLC,

having joined as Group Financial Controller in 2014.

Priortothis,Mikeheldanumberofseniorfinance

roles at J. Sainsbury plc, including latterly as Head

ofInvestorRelations,andspent11yearsatPwC.

External appointments:

Mike holds no external appointments.

Katie Bickerstaffe

Non-Executive Director

Appointed:

Katie joined the Board as a Non-Executive Director

on 1 March 2021 and took over as Chair of the

Remuneration Committee on 4 May 2021.

Skills and qualifications:

Katie brings extensive business transformation

experience together with considerable digital

expertise. She was Co-Chief Executive of Marks

andSpencerGroupPLCfromMay2022toJuly

2024.

She was also a former Non-Executive

Director of Marks and Spencer Group PLC, and was

previously Executive Chair of SSE Energy Services,

where she led its separation from SSE plc and

subsequent sale to OVO Group Ltd. She was also

aNon-ExecutiveDirectorofSSEplcandChairofits

Remuneration Committee until 2018. Prior to this,

she worked in a variety of general management

roles in retail and manufacturing businesses.

External appointments:

Katie is a Non-Executive Director of the England

and Wales Cricket Board, where she was appointed

the Senior Independent Director in May 2023.

Jasi Halai

Non-Executive Director

Appointed:

Jasi joined the Board on 1 January 2023.

Skills and qualifications:

Jasibringsconsiderablefinancialandbusiness

skills and experience which complement those

of other Board members. She is a Chartered

Management Accountant and holds an MSc in

investment management from the CASS Business

School. Before being appointed to the Board of

3iGroupplc,sheheldavarietyofpoststhere,

mostrecentlyasGroupFinancialController.She

was also a Non-Executive Director and Chair of the

Audit Committee at Porvair Plc until January 2023.

External appointments:

JasiiscurrentlyChiefOperatingOfficerandan

Executive Director of 3i Group plc, and is also a

member of the 3i Executive, Investment, Group

RiskandESGCommittees.

Jock Lennox

Senior Independent Director

Appointed:

Jock joined the Board as a Non-Executive Director

in July 2016 and became Senior Independent

Director on 4 May 2021.

Skills and qualifications:

Jock,aCharteredAccountant,bringssignificant

businessandfinanceexperiencetotheBoard.

He was Chair of Hill and Smith Holdings plc

and Enquest plc. Jock was previously Senior

Independent Director of Oxford Instruments plc

and Non-Executive Director and Chairman of the

Audit Committees of Dixons Carphone plc and A&J

Mucklow Group plc. He was also the Chair of the

Audit Committee Chairs’ Independent Forum. Jock

spent 30 years with Ernst & Young LLP, holding

several leadership positions in the UK and globally,

including 20 years as a partner.

External appointments:

Jock is Chair of Johnson Service Group plc and

ofClarionHousingGroup(appointedAugust2024).

Board of Directors and Company Secretary continued

91Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Board of Directors and Company Secretary continued

Chris Weston

Non-Executive Director

Appointed:

Chris joined the Board as a Non-Executive Director

on 1 March 2021 and took over as Chair of the

Safety, Health and Environment Committee on

4 May 2021.

Skills and qualifications:

Chris brings to the Board considerable commercial

experience, driving performance and growth,

includingasformerChiefExecutiveOfficeratAggreko

Limited and as Managing Director, International

Downstream at Centrica plc. Chris joined Centrica

after a successful career in the telecoms industry

working for Cable & Wireless Plc and One.Tel.

UntilJune2023,ChriswasalsoaNon-Executive

Director on the board of the Royal Navy.

External appointments:

ChriswasappointedasChiefExecutiveOfficerof

Thames Water Utilities in January 2024 and as a

Non-Executive Director of Sportquest Holidays Ltd

in August 2023.

Tina Bains

Company Secretary

Appointed:

Tina was appointed to the role of Company

Secretary in January 2016.

Skills and qualifications:

Tina joined the Group in 2008 as Assistant

Company Secretary, and was promoted to the role

of Deputy Company Secretary in 2011. Prior to this,

Tina held various Company Secretarial positions

within the private and professional services sectors

including TMF Corporate Secretarial Services

Limited and Ernst & Young LLP. Tina is a Fellow

oftheCorporateGovernanceInstitute.

External appointments:

Tina is a Trustee of the Barratt Developments PLC

Charitable Foundation.

Nigel Webb

Non-Executive Director

Appointed:

Nigel joined the Board as a Non-Executive Director

on 1 October 2023.

Skills and qualifications:

Nigel Webb brings over 38 years of experience

in property investment and development to

the Barratt Board. Up until June 2023, Nigel

was the Head of Development and a member

of the Executive Committee at British Land

Company plc, where he had worked since 1992.

His responsibilities included leadership of British

Land’s property development activities throughout

theUKandacrossallsectors,primarilyoffice,

retail, residential and urban logistics. He was

also responsible for delivery of the group’s

industry-leading Environment, Social and

Governance (ESG) strategy, including developing

allnewbuildingstonetzeroembodiedcarbon.

External appointments:

Nigel is currently a Non-Executive Director of

Precede Capital Partners, non-executive Board

Adviser to Sir Robert McAlpine and Interim Chair

&TrusteeoftheVictoriaandAlbertMuseum.

Board skills and experience

All Directors are expected to devote the

necessary time to fulfil their responsibilities

anddutiestotheCompany,withthehighest

standards of integrity. Each Director

has demonstrable experience, skills and

knowledge which complement those of

other Board members and enhance Board

effectiveness.

The skills held by the Directors are

summarised below.

Skill To tal

Housebuilding

Property

Retail

Public policy

Marketing

Governance

Finance/accounting

Legal

Employment/HR

Sustainability

Digital

Financial services

Land/construction

People/talent/

succession/

diversity, etc

92 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Sally Austin

Group HR Director

Sally joined Barratt in November 2023

asGroupHRDirector.

Career and experience:

She was previously the Chief People

OfficeratWincantonPLCfrom

August 2019 to October 2023. Prior

toWincanton,SallywastheGroupHR

Director with Costain Group PLC, a

British technology-based construction

and engineering company where she

held a variety of HR roles and became

Group HR Director in 2014. Sally began

her career in HR at BAE Systems and

Eaton Corporation where she held

HR roles across Europe, Middle East

and Africa. Externally, Sally is Chair

ofWarwickSchoolsFoundation.

Louise Ruppel

General Counsel

Louise joined Barratt in February 2024

asGeneralCounselandamemberofthe

Executive Committee.

Career and experience:

Louise trained as a lawyer with

Slaughter & May and has over 20 years

of Executive Committee experience in

industries spanning defence, security,

and transport, including at FirstGroup

plc and Manchester Airport Group.

She most recently held the position of

General Counsel and Company Secretary

at defence and security company Ultra

Electronics for four years.

Members

The Executive Committee

currently comprises of:

David Thomas

Chief Executive

Steven Boyes

 ChiefOperatingOfficerand

Deputy Chief Executive

Mike Scott

 ChiefFinancialOfficer

Tina Bains

Company Secretary

Bukky Bird

Group Sustainability Director

Tim Collins

Group Corporate

 AffairsDirector

Sally Austin

Group HR Director

Louise Ruppel

General Counsel

Biographies can be found

onpages90to 93

Tim Collins

Group Corporate AffairsDirector

Tim is responsible for the Group’s

internal and external communications

andpublicaffairs.HeisalsoaTrustee

of the Barratt Developments PLC

Charitable Foundation.

Career and experience:

Tim joined the Group in 2014 as the

regional Head of Communications,

before becoming Group Head of

Corporate Communications in 2016.

He was appointed to his current role

and joined the Executive Committee in

September2022.Timbringssignificant

political and industry experience, having

held the roles of Deputy Director of

Communications at the Conservative

Party,ChiefofStafftotheShadow

Housing Minister and Deputy Director

ExternalAffairsattheHBF.TimhasaLaw

degree from University College London.

Bukky Bird

Group Sustainability Director

Bukky is responsible for the Group’s

sustainability strategy and its delivery. She is

a member of the Sustainability Committee.

Career and experience:

Bukky joined the Group in 2020 and was

appointed to the Executive Committee

in September 2022. She brings a breadth

of experience acquired from leadership

roles in strategy, sustainability, business

transformation, engineering, construction

and retail operations. She was previously

at Tesco PLC, and before that at WSP Group

PLC.BukkyisaqualifiedMechanical

Engineer and also holds a Master’s

degree in Environmental Design and

Engineering, both from UCL.

5 7 8

Executive Committee

93Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Dear Shareholder

As a Board, we are responsible for the stewardship of the

Company and remain accountable to you for the decisions

that we make.

Despite the ongoing challenges in our operating environment,

we have made good progress during the year towards

our purpose of making sustainable living a reality and

building strong communities. This report explains how

our governance framework contributes to the long-term

sustainable success of the Company by ensuring

that decisions are made by the right people following

appropriate challenge and debate.

Having the right culture is key for ensuring that decisions

are made in the right way. As a Board we set and review, at

least annually, the Group’s core policies and ensure that we

have effective systems and processes in place to monitor

how we do business. Details on how we monitor culture can

be found on page 98.

Caroline Silver

Chair

Corporate Governance Report

Governance

at a glance

FY24 highlights

During the year, the Board:

• agreed the combination with Redrow;

• approved the appointment of Nigel Webb as a

Non-Executive Director;

• approved the appointment of Matthew Pratt as an

Executive Director and Group CEO, Redrow and Nicky

Dulieu and Geeta Nanda as Non-Executive Directors

subject to CMA clearance and the completion of the

Combination;

• agreed updated science-based targets for carbon

emissions; and

• joined the Responsible Actors Scheme to improve building

standards and remedy defects relating to fire safety.

Fully compliant with the 2018

UK Corporate Governance

Code (the Code).

The Company is subject to the Code which can be found

on the FRC’s website, www.frc.org.uk. The Board confirms

that,throughouttheyearended30June2024,andasat

the date of this report, the Company has complied with

all relevant provisions set out in the Code.

This report, together with the reports from the Nomination,

Audit and Risk, SHE and Remuneration Committees

and the other statutory disclosures, provides details

of how the Company has applied the principles of the

Code. The Company has also complied with the relevant

requirements of the FCA’s Disclosure and Transparency

Rules and the UK Listing Rules, BEIS’s Directors’

Remuneration Reporting Regulations and Narrative

Reporting Regulations and the FRC’s Guidance on Risk

Management, Internal Control and Related Financial

and Business Reporting. The Company’s Board diversity

statement and associated data is included in the

Nomination Committee Report on pages 106 to 108.

We welcome the FRC’s publication of the 2024 Code

which will apply to us from 1 July 2025. We are in the

process of reviewing our governance framework and

arrangements in light of the 2024 Code to ensure

that any necessary changes can be implemented

inatimelymanner.

94 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Board and Committee attendance

Attendance at Board and Board Committee meetings during the year is set out in the table below. During the year, the Board also held two

additionalmeetingsthroughadedicatedsub-CommitteeconvenedspecificallytoconsiderandagreemattersrelatingtotheCombination.

Board

Nomination

Committee

Audit

and Risk

Committee

Safety,

Health and

Environment

Committee

Sustainability

Committee

Remuneration

Committee

Caroline Silver – Chair 13/13 2/2 N/A N/A N/A 4/4

David Thomas – Chief Executive 13/13 N/A N/A N/A 4/4 N/A

Steven Boyes – Chief Operating Officer

andDeputyChiefExecutive 13/13 N/A N/A 1/1 3/4 N/A

Mike Scott – Chief Financial Officer 13/13 N/A N/A N/A N/A N/A

Jock Lennox – Senior Independent

Non-Executive Director 13/13 2/2 4/4 N/A 4/4 4/4

Katie Bickerstaffe – Non-Executive Director 13/13 2/2 4/4 N/A 4/4 4/4

Jasi Halai – Non-Executive Director 13/13 2/2 4/4 N/A 4/4 4/4

Nigel Webb

– Non-Executive Director 12/12 2/2 3/3 N/A N/A 4/4

Chris Weston

– Non-Executive Director 12/13 2/2 4/4 1/1 N/A 4/4

Bukky Bird – Group Sustainability Director N/A N/A N/A N/A 4/4 N/A

Jeremy Hipkiss

N/A N/A N/A N/A 1/1 N/A

Tina Bains – Company Secretary N/A N/A N/A N/A 4/4 N/A

1 Nigel was appointed to the Board on 1 October 2023. His attendance above reflects the meetings he was eligible to attend during FY24.

2 Chris Weston was unable to attend the October Board meeting due to a prior commitment. Prior to the meeting, he provided his views on the items on the agenda which were shared with the

other Board members during the meeting. Following the meeting Chris was briefed on the business of the meeting and any decisions taken.

3 Former Group Customer and Change Director.

Read more about our board on pages 90 to 92

Non-Executive Director tenure

0–3 years 50.00%

3–6 years 33.33%

6+ years 16.67%

Gender diversity

Independence (excluding the Chair)

Male 66.67%

Female 33.33%

Executive

Directors 37.50%

Independent

Non-Executive

Directors 62.50%

Corporate Governance Report continued

95Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Board leadership and

Company purpose

How we have applied

theCode

1. Board of

Directors

2. Purpose, values,

strategy and

culture

3. Resource

and control

framework

4. Stakeholder

engagement

5. Workforce

policies and

practices

Division of

responsibilities

How we have applied

theCode

1. Role of the Chair

2. Division of

responsibilities

3. Role of the

NEDs

4. Policies,

processes,

information,

timeand

resources

Composition,

succession

andevaluation

How we have applied

theCode

1. Appointments

to the Board

2. Skills,

experience

and knowledge

3. Board

evaluation

Audit, risk and

internal control

How we have applied

theCode

1. Independence

and

effectiveness

of internal and

external audit

2. Fair,

balanced and

understandable

assessment

3. Risk

management

and

internal

control

Remuneration

How we have applied

theCode

1. Alignment to

purpose, values

and long-term

success

2. Remuneration

Policy

3. Independent

judgement and

discretion

Implementation of the Code

See pages

90 to 92,

95and 96

See page 98

See pages

96, 97 and

101

See pages

50 to 57

See page 45

Role of the Board

We are responsible for the stewardship and long-term

sustainable success of the Company. Our overarching

aim is to create sustainable value for the benefit of our

shareholders through:

• setting the strategic objectives and ensuring the right

leadership and resources are in place to meet them;

• setting the purpose and values to provide direction as

tohowthestrategicobjectivesshouldbemet;and

• ensuring that the Company has an effective risk

management framework.

Board meetings

We meet formally at least seven times a year. To increase

our visibility of the Group’s operations and provide further

opportunities to meet senior management, at least two

Board meetings are combined with visits to the Group’s

sites. In March 2024 we visited our West Craigs and Cammo

sites in Edinburgh, Scotland, and in May 2024 we visited

Darwin Green and Franklin Gardens in Cambridgeshire.

On both visits we toured the development and met with

senior management and site and sales office employees

who provided an overview of the regional, divisional and

site operations respectively, enabling us to gain a better

understanding of how culture is embedded in the business,

and the challenges faced on a day-to-day basis.

In addition to our regular Board meetings, we held a

strategy day which was devoted to reviewing progress

against the Group’s strategy and discussing longer-term

strategic options. During this meeting we received updates

on analyst and investor feedback, the political landscape

and the housing market and discussed our construction

strategy and roadmap to meet the requirements of

the Future Homes Standard. We also held a number of

informal meetings during the year to build and maintain

strong relations between the Directors, and I met with the

Non-Executive Directors without the Executive Directors

present prior to each Audit and Risk Committee and

Remuneration Committee meeting to discuss their priorities

and concerns; eight of these meetings have been held

during the financial year.

Corporate Governance Report continued

See page 99

See page 106 See pages

118 to 120

See page 127

See pages

128 to 131

See page 129

See pages

116 to 117

See pages

117 and 118

See pages

90 to 92

and103

See pages

109to 111

See page 99

See pages

96 and 100

96 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Strategy

Approved updated science-based

targets to reduce carbon emissions

which will help the delivery of our

purpose to make sustainable living

a reality

Link to risks

See page 81

Stakeholders considered

Government, shareholders,

sub-contractors and suppliers,

customers, local communities

andtheenvironment

Approved the combination with Redrow

to create an exceptional homebuilder

to drive innovation for customers,

employees, sub-contractors and the

supply chain and meet the demand

formorehouses

Link to risks

See pages 48 to 49

Stakeholders considered

Government, opposition and

regulators, banks, shareholders,

employees, sub-contractors

and suppliers, customers, local

communitiesandtheenvironment

Operations

Approved multiple investments in land

Link to risks

Stakeholders considered

Customers, local communities

and the environment

Considered the results of the

investigation into the fatality at one of our

sitesinNovember2023andwassatisfied

that the report from the Health and

Safety Executive concluded that suitable

safety arrangements were in place

Link to risks

Stakeholders considered

Employees, sub-contractors

and local communities

Considered updates on engagement

with the CMA in respect of the

housebuilding market study and its

investigation into information sharing

Link to risks

Stakeholders considered

Government, opposition and

regulators, and customers

Considered updates on customer

service performance

Link to risks

Stakeholders considered

Customers

Considered updates on employee

survey results

Link to risks

Stakeholders considered

Employees

Finance

Approved results announcements and

trading statements

Link to risks

Stakeholders considered

Shareholders

Approved the 2024 interim dividend

payment and recommended the 2024

finaldividendpayment

Link to risks

Stakeholders considered

Shareholders, banks

Approved the annual budget whereby

the resources to achieve the agreed

strategy are made available

Link to risks

Stakeholders considered

Employees, suppliers and

sub-contractors, shareholders,

local communities and the environment

Risk management

Reviewed the Company’s principal and

emerging risks and agreed a process

by which to re-assess the Board’s

risk appetite

Link to risks

See pages 65 to 70

Stakeholders considered

Employees, suppliers and

sub-contractors, shareholders,

banks, local communities and the

environment and customers

Reviewedtheeffectivenessof

the risk management and internal

control framework

Link to risks

See pages 117 and 118

Stakeholders considered

Shareholders, employees,

suppliersandsub-contractors

Governance

Approved the appointment of Nigel

Webb to ensure Board composition

remains appropriate

Link to risks

See page 106

Stakeholders considered

Shareholders

Received diversity and inclusion updates

Link to risks

Stakeholders considered

Shareholders, employees

andgovernment

Approved Board evaluation action plans

Link to risks

See pages 109 to 111

Stakeholders considered

Shareholders

Key activities and discussions in FY24 and outcomes

Our values

Wedoitforourcustomers

We do it right

We do it together

Wemakeithappen

Principal risks

Economic environment

Land and planning

Governmentregulationandpoliticalrisk

Construction quality and innovation

High rise and complex structures

Supply chain resilience

Safety, health and environment

Attracting and retaining high-calibre employees

Information technology

Redrow integration

Corporate Governance Report continued

97Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Purpose

Making sustainable living a reality, building strong communities.

We do it for

our customers

We do it right We do it

together

We make

ithappen

Culture in the workplace

As a Board we set the culture and tone from the top. We determine the Company’s

purpose and values and remain responsible for ensuring that the right culture is

embedded throughout the business.

We refreshed our purpose and values in

FY23 and embedded them throughout

the Group during FY24 via a Group-wide

training programme comprising interactive

face-to-face seminars and training material

with clear examples of what living each

value means in practice. Our values show

our employees how to behave and clarify

the standards they can expect from each

other and the Company. They help us build

better, work better, be better and create

places where people, communities and

nature can thrive. We all have a part to play

and as a Board we lead by example by living

and promoting our values every day.

Further details on our purpose and values can

be found on pages 1 and 2 and in numerous

case studies throughout this report.

How we drive and monitor

culture across the business

We undertake a number of actions to support

and monitor the Company’s culture, including:

• Conducting site visits at which we

engage with employees at all levels of

the business, seeking their views on the

Company and its performance. In addition

to the two Board visits, the Executive

Directors and many of the Non-Executive

Directors made independent visits to

some of our sites during the year.

• Reviewing feedback from the employee

engagement survey and pulse survey

and overseeing action plans to address

matters raised. See page 30 for

further details.

• Reviewing customer satisfaction scores.

Our customer satisfaction KPI is used by

the Remuneration Committee as part of

the annual bonus performance measure

to drive behaviour consistent with our

purpose, values and strategy.

• Receiving SHE performance updates

together with information on new

or ongoing investigations and their

outcomes. The SHE audit compliance KPI

underpins the quality and service annual

bonus performance measure set by the

Remuneration Committee to promote the

desired culture.

• Monitoring employee leaver numbers and

reasons, and the steps being taken to

attract, recruit and retain employees.

• Reviewing core governance policies on

anannualbasistoensurethatthey

remain appropriate.

• Receiving, via the Audit and Risk Committee,

updates on matters raised via the Group’s

whistleblowing procedure. See page 118.

Corporate Governance Report continued

To ensure our culture aligns with our purpose and values we review a number of

cultural indicators including:

302

per 100,000

workers IIR

5 star

HBF customer

satisfaction score

77%

of employees

completed the

engagement survey

74.9%

employee

engagement index

97%

SHE audit

compliance

68%

invoices paid

within 30 days

32%

of employees

arefemale

employees are

from an ethnic

minority

background

14,515

hours volunteered

12%

voluntary

employee turnover

whistleblowing

reports

97%

completion rate

for the 6 key

mandatory

e-learning modules

98 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Board roles and their responsibilities

Read more about the Board on pages 90 to 92

Chair Chief Executive Chief Operating Officer

and Deputy Chief

Executive

Chief Financial Officer Senior Independent

Director

Independent

Non-Executive Directors

Caroline Silver David Thomas Steven Boyes Mike Scott Jock Lennox Katie Bickerstaffe, Jasi

Halai, Jock Lennox, Chris

Weston and Nigel Webb

• Leads the Board in the

achievement of its objectives,

sets its agenda and chairs

its meetings.

• Shapes the culture in

theBoardroom.

• Responsible for the

effectiveness of the Board

anditsgovernance.

• Facilitates the effective

contribution of Non-Executive

Directors and constructive

relations between Executive

and Non-Executive Directors.

• Ensures the Board

receivesaccurate,timely

andclearinformation.

• Responsible for arranging

inductions and continued

development for the Directors.

• Ensures effective

communication with

shareholders and other

stakeholders, and participates

in corporate relations activities.

• Develops the Group’s strategy

for the enhancement of long-

term shareholder return taking

into account the needs of the

Group’s stakeholders.

• Leads the implementation of

the Group’s strategy approved

by the Board.

• Responsible for the day-to-day

leadership and management

of the operational activities of

the Group in accordance with

overall strategy and policy as

determined by the Board.

• Chairs the Executive

Committee through which

hecarriesouthisduties.

• Oversees corporate

relationswithshareholders

and other stakeholders.

• Responsible to the Board for

sustainability policies and

practices of the Group.

• Chairs the Sustainability

Committee and co-chairs

theWorkforceForum.

• Responsible for the

Group’soperations.

• Day-to-day responsibility

for safety, health and

environment issues, promoting

the wellbeing of employees.

• Responsible for our

procurement function and

our land promoter business.

• Responsible for ensuring

stakeholder requirements

areappropriatelyaddressed.

• Chairs the Operations

Committee meetings, the

other members of which

include the Regional

Managing Directors.

• Co-chairs the Workforce Forum.

• Develops and implements

the Group’s financial strategy

and policies.

• Responsible for the

management of the finance,

tax, internal audit, treasury

and investor relations functions.

• Supports the Chief

Executive with his corporate

relations responsibilities

with shareholders and

otherstakeholders.

• Manages the Group’s

relationship with the

external auditor.

• Manages the Group’s

relationships with its

lending banks.

• Chairs the Executive

RiskCommittee.

The following are in addition

to his role and responsibilities

as an Independent Non-

Executive Director:

• Available to shareholders,

when required, to address any

material issues or concerns

which the Chair and/or

Chief Executive have failed

to resolve.

• Available to shareholders,

when required, to listen to

their views to gain a balanced

understanding of their issues

and concerns.

• Evaluates the performance

oftheChair,atleastannually,

with the Non-Executive

Directors, and leads the process

for the Chair’s succession.

• Acts as a sounding board for

the Chair and, if necessary,

an intermediary for the

otherDirectors.

• Provide an appropriate

level of scrutiny, and

constructively challenge

the Executive Directors,

holding management to

account and ensuring the

needs of stakeholders are

appropriately considered.

• Using the broad range

of their experience and

external perspective, provide

specialist advice and an

independent perspective

indevelopingstrategy.

• Monitor the implementation

of the Group’s strategy within

its risk and control framework

and ensure the integrity of

financial reporting.

• Ensure that recruitment

and succession planning is

appropriate and mindful of

diversity and balance.

• Review and refresh the

Remuneration Policy in

the context of stakeholder

interests, and ensure it is

implemented appropriately.

Company Secretary

Tina Bains

• Supports the Chair and Chief Executive in fulfilling their duties especially in respect of induction, training and Board

and Committee effectiveness evaluations.

• Available to all Directors for advice and support.

• Keeps the Board regularly updated on governance matters and best practice.

• Ensures Group policies and procedures are maintained and updated on a regular basis.

• Attends and maintains a record of the matters discussed and approved at Board and Committee meetings, including

where Directors have concerns that cannot be resolved.

• Maintains an annual agenda to ensure that all key matters are allocated adequate time for discussion.

Corporate Governance Report continued

99Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Governance framework

Board

Chief

Executive

Chief

Operating

Officer

Executive

Committee

Group Management Committee

Board Committee

Corporate Governance Report continued

The Board makes decisions on strategy and on items set out in the matters reserved for it. It also delegates various operational decisions to several Board and management

Committees (see below). The schedule of matters reserved to the Board and the Terms of Reference of the Board Committees are available on the Company’s website at

www.barrattdevelopments.co.uk/investors/corporate-governance.

Sustainability Committee

• Reviews and scrutinises sustainability strategy and its implementation

by the business.

• Reviews and approves plans by the business to mitigate risks and

leverage opportunities relating to sustainability and climate changes.

• Develops and implements ESG policies and monitors compliance

against these.

• Scrutinises sustainability performance incentives for consideration

bytheRemunerationCommittee.

• Advises the Board on the appetite and tolerance with respect to ESG risks.

• Oversees carbon emission science-based targets and recommends

changeswherenecessary.

• Oversees the development of our sustainability reporting.

Remuneration Committee

• Designs and implements the Group’s overall remuneration strategy

andpolicy,ensuringalignmentwithpurposeandstrategy.

• Sets the remuneration and determines the outcomes for the Executive

Directors and senior management.

• Monitors performance of long and short-term incentive schemes against

both financial and non-financial targets.

• Considers the remuneration and related policies of the wider workforce

when determining Executive Directors and senior management’s

remunerationandincentives.

Nomination Committee

• Monitors the composition of the Board and its Committees to

ensureabalanceofskills,experienceandknowledge,andtheir

progressive refreshment.

• Reviews succession plans for Board and senior management to ensure

there is a diverse pipeline.

• Promotes diversity of Board Directors and senior management.

• Undertakes annual effectiveness evaluations of the Board,

itsCommitteesandindividualDirectors.

Disclosure Committee

• Comprising any two of the Chief Executive, Chief Financial Officer and the Company Secretary, meets as required to ensure that the Company

remains compliant with the requirements of the UK Market Abuse Regime.

Safety, Health and EnvironmentCommittee

• Focuses on the prevention and mitigation of key operational risks

relatingtoSHE.

• Monitors compliance with the SHE management system.

• Oversees direction and implementation of SHE policies and procedures.

Audit and Risk Committee

• Monitors the integrity of the Group’s Financial Statements and formal

announcements on its financial performance, including reviewing

financial reporting judgements contained within them.

• AdvisestheBoardonwhethertheGroup’sAnnualReportandAccounts

arefair,balancedandunderstandable,andprovidestheinformation

necessary for shareholders to assess the Group’s position and

performance, business model and strategy.

• Provides oversight of non-financial information, including sustainability

and considers the need for external assurance.

• Reviews the Group’s internal financial, operational and compliance

controls and its systems for risk management and internal controls.

• Monitors and reviews the independence, objectivity and effectiveness

of the external auditor and the internal audit function, and reviews and

recommends to the Board the reappointment, remuneration and terms

of engagement of the external auditor.

• Develops and implements the Group’s policy on the engagement

oftheexternalauditortosupplynon-auditservices.

Executive Risk Committee

• Reviews the effectiveness of the Group’s internal control

policies and procedures for the identification, assessment

and reporting of risks.

• Assesses individual key risks on a rolling basis (including the

identification of the Group’s principal and emerging risks)

togetherwiththeappropriatenessofanymitigations.

Land Committee

• Reviews and approves all land acquisition and disposal

proposals across the Group.

• Refers proposals to the Board for approval depending on

the value of the land transaction or its complexity, e.g. joint

venture arrangements.

Allotment Committee

• Approves the allotment of shares within dilution limits

andwithintheauthoritiesobtainedfromshareholders.

Operations Committee

• Manages operational performance.

Treasury Operating Committee

• Reviews the Group’s treasury arrangements and approval

ofchangestodebtfacilities.

• Obtains Board approval for certain types of facility and

wherethefacilityisabovethelevelsdelegatedtothe

Treasury Operating Committee.

Safety, Health and Environment

OperationsCommittee

• DevelopstheSHEstrategyfortheGroup.

• Ensures that SHE policies and procedures are adequately

implemented and adhered to.

• MonitorstheeffectivenessoftheGroup’sSHEsystems.

• Keeps up to date with changes in legislation surrounding

SHE matters.

100 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

We recognise the importance of maintaining a sound system

of internal controls to safeguard shareholders’ investment

and the Company’s assets. As a Board we are responsible

for establishing procedures to manage risk and oversee the

work of management to ensure that the internal control

framework is appropriate to support the Group in achieving

its long-term strategic objectives. Our control framework

is designed to mitigate business, operational, financial and

reporting risks. Management own the risk management

process, submit appropriate policies for our approval,

implement appropriate procedures and provide relevant

information to enable us to fulfil our duties.

As a Board we set the risk appetite and tolerance levels

for the Group and in doing so, consider the expectations

of our shareholders and other stakeholders. As part of our

risk management process, we review and approve our risk

appetite and tolerance levels to ensure that they remain

appropriate. Approved risk appetite levels for each of our

Principal Risks are detailed in the Principal Risk tables on

pages 65 to 70.

Details of how we manage risk can be found on pages 63

to65andinformationabouthowwemonitorandreviewthe

effectiveness of our risk management and internal control

systems can be found in the Audit and Risk Committee report

on pages 117 to 118. Our risk management and internal

control frameworks define the procedures to manage and

mitigate risks facing the business, rather than eliminate

risk altogether, and can only provide reasonable and not

absolute assurance against material misstatement or loss.

On behalf of the Board

Caroline Silver

Chair

3 September 2024

Helping to create energy efficient homes at Kingsbrook.

Corporate Governance Report continued

Risk management and internal controls

101Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Nomination Committee Report

Committee members

Katie

Bickerstaffe

Jasi Halai

Chris Weston

Jock Lennox

Caroline Silver

Chair of the Nomination Committee

Statement from the Chair of

theNomination Committee

I am pleased to present the Nomination

Committee Report for FY24. It has been

another busy year for the Committee in

terms of appointments to the current Board

and considering potential appointments

to the combined Board once the two

businesses are able to fully integrate.

Board changes and succession planning

Following a thorough recruitment process the Committee

recommended that the Board appoint Nigel Webb as a

Non-Executive Director and member of the Audit & Risk,

Nomination and Remuneration Committees with effect

from 1 October 2023. Nigel brings a wealth of property

investment and development experience and ESG strategy

expertise to the Board which complements the skills of the

other Directors. Nigel’s skills, knowledge and experience will

be of great value to the Company over the coming years.

Members biographies and qualifications are shown on pages 90 to 92

See page 95 for Committee meeting attendance

Nigel Webb

Caroline

Silver

Quick facts

• The majority of Committee members are independent

• 3 females on the Board

• 1 female in a senior Board position

• 1 Director from an ethnic minority background

1 As at date of this report.

Our approach to appointments,

succession and evaluation

Focus in the reporting year

• Undertook an extensive review of the size and

composition of the Board

• Conducted a robust recruitment process for the

appointment of Nigel Webb as a Non-Executive Director

• Assessed the skills, experience and knowledge necessary

to drive the future strategy of the Company and strengthened

the Committee’s oversight of the Board’s skills, knowledge

and experience

• Reviewed the succession plans for the Executive

Directors and senior management

Priorities for FY25

• To assess the composition (including size and diversity)

oftheBoardanditsCommitteesfollowingcompletion

oftheRedrowcombination

• Conduct induction processes for Matthew Pratt, Nicky

Dulieu and Geeta Nanda on Barratt’s business and

induction processes for the current Barratt Directors

onRedrow’sbusiness

• Map the key skills to drive the future strategy of the business

against the skill set of the Directors to identify gaps and

inform the role specification of future appointments

• Oversee an effective handover of the Audit and Risk

Committee Chair and Senior Independent Director

roles should Jock Lennox step down from the Board

oncompletionofhisthirdthreeyearterm.

102 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Statement from the Chair of the

Nomination Committee continued

Board changes and succession planning

continued

As previously announced, we expect Matthew Pratt, Nicky

Dulieu and Geeta Nanda to join the Board once either: (i)

undertakings have been agreed with the Competition and

Markets Authority (CMA) that address the CMA’s limited

concerns in connection with the combination of Barratt and

Redrow; or (ii) the CMA otherwise agrees to their appointment.

Provided that they are appointed as Directors by the Board

prior to the date of the AGM, Matthew, Nicky and Geeta will

seek election by shareholders at the 2024 AGM. If they are

not appointed prior to the date of the AGM, they will seek

election by shareholders at the 2025 AGM.

Matthew, Nicky and Geeta bring a variety of skills, knowledge

and experience to the Combined Board and I am pleased

that their appointments will strengthen the overall diversity

at Board level.

During the year we held a detailed succession session with

David Thomas where we considered the talent pipeline for

key executive roles at Board and senior management level.

Given that integration planning is underway, Committee

members now meet with David immediately prior to each

Board meeting to understand the discussions taking place

about, and the impact on, our employees. We will continue

to undertake detailed work on succession planning at

Board and senior management levels to ensure we have

a sufficiently diverse pipeline and the right skills and

experience to drive our strategy forward.

Skills and experience of the Board

During the year, as part of our annual evaluation process,

we reviewed the composition, skills, experience and diversity of

the Board and its Committees. This identified opportunities

to strengthen the skills matrix and the process by which

we carry out our skills gap analysis. Board members were

asked to identify the key skills needed on the Board to drive

the future strategy of the business. The outcomes of this

review will be mapped against the current Board’s skill set

to identify any skill gaps which will help determine the role

specification for any future non-executive appointments.

When Matthew, Nicky and Geeta, join the Combined Board,

we will update our skills matrix and map this against the

skills gap analysis to ascertain if any gaps are satisfied.

Diversity and inclusion

We fully understand the importance of having diversity on

the Board, not only in terms of skills and experience but also

female and ethnic representation. Following my appointment

as Chair in June 2023 and Jasi Halai’s appointment in

January 2023, we meet the recommendations to have a

woman in a senior Board position (Chair, CEO, CFO or SID)

and to have at least one member on the Board from a

minority ethnic background (as defined by the FTSE Women

Leaders Review and the Parker Review).

Whilst we were conscious that female representation on

the Board fell to 33.33% following Nigel’s appointment

in October 2023, we were confident that he was the

best candidate for the role given his skills, knowledge

and experience in property, construction and land.

Strengthening diversity on the Board is and remains a key

priority for the Committee and the Board. Subject to CMA

clearance, the appointments of Matthew, Nicky and Geeta

will strengthen the overall diversity of the Board, including

diversity of industry skills, knowledge and experience in

addition to gender and ethnicity. Female representation

ontheCombinedBoardwillbe41.67%.

Information on the Board’s diversity targets as required by

the UK Listing Rules, together with accompanying numerical

data, is set out on pages 106 and 107. Further information

on the Company’s progress on diversity and inclusion

initiatives can be found on page 108 and in the Strategic

Report on pages 31 and 32.

FY25 priorities

Following completion of the Redrow combination, the

composition (including size and diversity) of the Board and

its Committees will be a key focus area in FY25 to ensure

that we continue to have the right combination of skills and

industry experience to provide effective challenge, guidance

and support to management and drive the business

strategy forward.

The induction of Matthew Pratt, Nicky Dulieu and Geeta

Nanda will also be a key focus in the year ahead to ensure

that they quickly build key stakeholder relationships. It will

also be important for the Combined Board to gain a sound

understanding of the enlarged Group so that it can apply its

extensive and wide-ranging experience to drive the strategy

and achieve synergies.

In July 2025 Jock Lennox will have completed nine years

as a Non-Executive Director on the Board. Discussions are

underway with Jock to determine if he will be stepping

down from the Board and, if required, who will succeed

himasChairoftheAuditandRiskCommitteeandthe

Senior Independent Director.

Further details of the work undertaken by the Nomination

Committee during the year are set out on the following pages.

Caroline Silver

Chair of the Nomination Committee

3 September 2024

Nomination Committee Report continued

103Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Q&A

with Nigel Webb

Caroline Silver asked Nigel about his

experienceofjoiningBarratt.

What were your first impressions

onjoining the business?

Prior to joining the Board I had some previous

experience of Barratt on two joint ventures I had

negotiated with my previous employer, British Land.

Those relationships gave me a very positive view of

the Company and its professionalism, strength of

leadership and purpose. Joining the Board has only

reinforced those positive opinions. Going around the

business I have seen how dedicated and motivated

our teams are in delivering first class homes for

our customers and striving to maintain our industry

leading customer experience. It really is an honour

tojointheBoard.

How effective have you found your

induction programme in preparing you

for the Barratt Board discussions?

The induction process has been first class, thorough

and enjoyable and has really helped me get a good

understanding of the business. It involved over 20

one-to-one meetings with members of the Board

and senior management team, key external advisers

including legal advisers, corporate brokers, bankers

and auditors. It really did help me to hit the ground

running and reinforced my positive views on the quality

of the people and how well the Company is run.

Out of our values, which one do you

resonate with the most?

Each of our four values are very powerful and what

makes us the Company and team we are. However,

ifIhadtosingleoutonethatmostresonateswith

me it would be “We do it right”. Doing things the right

way, treating our customers, our suppliers and our

people in the right way is essential. It helps to define

us and maintain our market leading position. Doing

what is right is important to me personally and aligns

very much with my own personal values.

In what ways do you think your

rolewill contribute to the Board’s

overall effectiveness?

As someone who has spent a career in property

development, acquiring sites, securing planning

and delivering complex projects, I believe I bring

additional skills to complement the wealth of skills

that already exist on the Board to help the Company

achieve its strategic goals.

How important is a company’s culture

to you and what are your views on

Barratt’s culture?

Having the right culture within the Company is

essential. It is what binds the Company together and

provides a sense of belonging and team spirit and

a shared sense of purpose. From my limited time

on the Board, that positive culture, together with

strong values and the sense of pride in what we do,

isclearlyevidentthroughoutthebusiness.

Do you have any other thoughts or

ideas you would like to share with

colleagues based on your first few

months on the Board?

As we all know, it has been a very challenging few

years battling some severe economic headwinds.

Whilst we are not entirely “out of the woods” it feels

that we are starting to turn the corner and that better

times are ahead. This improving backdrop, coupled

with the Combination makes for a really exciting

future for the business as THE leading house builder

in the country. I very much look forward to getting

to know more people in the business and helping in

whatever way I can to deliver a successful future for

the business.

Nomination Committee Report continued

CS CS

104 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Priorities Work carried out and outcomes

Governance Reviewed training and development needs

for the Board and identified innovation

in construction and housebuilding as a

key area for development to facilitate the

consideration of alternative areas for the

business to explore.

Composition

and succession

Considered candidates and proposed

the appointment of Nigel Webb as an

additional Non-Executive Director.

Conducted an extensive review of the

size and composition of the Board and

its Committees, assessed the skills,

experience and knowledge necessary to

drive the future strategy of the Company,

and strengthened oversight of Directors’

skills, knowledge and experience.

Considered succession plans for

Non-Executive Directors, Executive

Directors, Executive Committee and

Regional Managing Directors, taking into

account the need for diversity and the

future strategic direction of the Company.

Directors’ conflicts of interest

The Board has authorised the Committee to oversee the

process for reviewing and making recommendations to

the Board concerning any actual or potential conflicts of

interest that may arise for any Board member, including

details of any terms and conditions that it deems necessary

to impose on any authorisation given. Throughout FY24,

the Company Secretary maintained a register of Directors’

conflicts of interest, a summary of which was reviewed at

each Board meeting to ensure it remained accurate and

current throughout the year. As a Committee, we review

the full register on an annual basis, and recommend any

changes to the authorisations that may be required to the

Board. The Board, when authorising any conflict or possible

conflictofinterest,doesnotcountinthequorumtheDirector

whose conflict or possible conflict is being discussed and

reserves the right to exclude a Director from a meeting whilst

a conflict or possible conflict is being considered. The

Board may revoke or vary any authorisation at any time.

During the year we updated the Committee’s Terms of

Reference to strengthen oversight of the time involved

in candidates’ other significant commitments prior to

recommending their appointment to the Board. The Committee

monitored the time commitments and conflicts of interest

relating to the external appointments of existing Directors

throughout the year.

I am pleased to confirm that these procedures have

operated effectively during the year.

Nomination Committee role and

activityFY24

Role and main activities undertaken by the

Committee during the financial year

In addition to its annual tasks, such as the review of its

TermsofReference,effectivenessandapprovalofthis

report,theCommitteecarriedoutthefollowingwork

during the year:

Board changes and succession planning

Succession planning is a live topic at Committee meetings.

All appointments and succession plans are objective, based

on merit and the need to promote diversity.

We annually review the length of service for each Non-Executive

Director, to determine if a new appointment needs to be

made to replace anyone that may need to retire, taking into

account the cyclicality of the business, as lessons gained

through one property cycle can be useful during the next.

We discuss the succession plans for the other Executive

Directors and senior management below Board level with

the Chief Executive as well as his own succession. During

the financial year we held four meetings with the Chief

Executive to discuss succession plans and identify suitable

individuals to fill senior managerial or Board positions in the

future as well as determine and address their development

needs. As part of their development, senior managers are

invited to attend part of a Board meeting to present on

their specialist area. This also enables the Board to assess

the quality of internal talent, and for the individual to get

agreaterunderstandingoftheworkingsoftheBoard.

During the year we discussed ways for certain Regional

Managing Directors and individuals in other key roles to

gain increased exposure to Group-wide matters to develop

high-potential employees and strengthen the internal talent

pipeline.

Succession plans are in place across the business for the

wider workforce and our work on developing our employees

is set out in the Strategic Report on pages 30 to 31. When

considering succession plans, the Board remains cognisant

of the need to ensure that there is a diverse range of individuals

included in the plan. The business continues to promote

diversity and inclusion from within, and further details of

the work that has been undertaken in this area can be

found on pages 31 to 32 and page 108.

Nomination Committee Report continued

105Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Board appointment process

Induction

Nigel has been through a detailed induction process

designed to give him a good understanding of the business

and how it operates to help him fulfil his role effectively.

Aspartofthis,hereceivedacomprehensiveinduction

pack, and had meetings with each of:

• the other Board members;

• the Company Secretary;

• members of the Executive Committee;

• the Regional Managing Directors and teams (at the

regional offices);

• heads of key Group functions;

• key external corporate advisers; and

• the external auditor.

His induction also included two individual site visits in

addition to the Board visit to David Wilson and Barratt sites

in Cambridge. During the year Nigel, together with one of

our Regional Managing Directors, visited a plot of land the

Company was looking to acquire and fed his thoughts back

to the Board, which subsequently approved the acquisition.

Caroline Silver met with Nigel to listen to his views and

feedback on the induction process, which was seen to be

comprehensive and well structured.

Nigel’s thoughts on his induction process can be found on page 104

Reappointment and re-election of Directors

Non-Executive Directors are appointed by the Board for up

to three three-year terms subject to annual shareholder

re-election and a particularly rigorous review prior to a

third term being agreed. Non-Executive Directors will

normally step down from their position on the Board and

its Committees at the AGM following their ninth anniversary.

The length of tenure of the Non-Executive Directors is

shown on page 95.

In July 2025 Jock Lennox will have completed nine years as

a Non-Executive Director and the Committee is in discussion

with Jock to determine whether he will step down from the

Board at the 2025 AGM and not offer himself for re-election.

Each of the Directors has been subject to a formal

performance evaluation process during the year, as set

out on page 111, and we are satisfied that each Director

continues to be effective in, and demonstrates commitment

to, their respective roles. All Directors will be standing

for re-election at the forthcoming AGM. Subject to CMA

clearance and being appointed to the Board prior to the

AGM, Matthew Pratt, Nicky Dulieu and Geeta Nanda will

stand for election.

Diversity and inclusion

Board diversity

During the year, the Board reviewed its policy on diversity

and inclusion. The objective of the policy is to ensure

that diversity is reflected within the composition of the

Board, its committees and throughout the business in its

broadest sense, including gender, ethnicity, age, disability,

religious belief, sexuality, social class, education, experience

and ways of thinking. The policy aims for continuous

improvement at Board and senior management level on

all these elements of diversity and to identify the most

suitable candidate to join the Board and its Committees

having regard to the individual’s skills, experience and

knowledge. It also seeks to ensure that, in managing any

senior appointment and in succession planning more

broadly, the Committee has regard to the recommendations

of the Parker and the McGregor-Smith Reviews on ethnicity

and race and the benefits of diversity, including gender,

ethnicity, social background and cognitive and personal

strengths. Diversity is addressed as part of the annual

evaluation of the Board and its Committees.

Progress on diversity and inclusion can be found on pages 31 and 32.

Themain objectives of our policy, how they are implemented and

progresstowards them are set out on page 108

A copy of our Board Diversity Policy can be found at:

www.barrattdevelopments.co.uk/sustainability/our-policies

Stage 1

We review the length of tenure of each Non-Executive Director,

determine the gaps in experience and consider the existing

balance of gender, ethnicity and social backgrounds on the

Board to help identify the need to recruit. Following the early

departure of Sharon White in June 2023 we agreed to identify

and appoint at least one Non-Executive Director.

Stage 2

Wereviewedandapprovedanoutlinebriefandrolespecification,

and appointed Russell Reynolds

, to identify suitable candidates

from a diverse pool of individuals and delegated authority to a

sub-Committee led by Caroline Silver to select candidates for a

short-list.

Stage 3

We met with the short-listed candidates and the preferred

candidates went on to meet the remaining members of

the Board.

Stage 4

We agreed Nigel Webb as the preferred candidate, based

on his range of skills, experience and knowledge that

complemented those of the existing Board members

andrecommendedhisappointmenttotheBoard.

Stage 5

The Board considered the appointment of Nigel on its

meritsandapprovedhisappointmentwitheffectfrom

1October2023.

Nomination Committee Report continued

1 Russell Reynolds Associates are occasionally requested to assist the Company with searches for senior management positions. They have no other connection with the individual Directors or the

Company. Russell Reynolds Associates is accredited by the Enhanced Voluntary Code of Conduct for Executive Firms for its support to FTSE 350 Boards in increasing gender diversity. It is also a

Co-Founder of The 30% Club, an advocate for improved gender balance on boards. Specific guidance was given to Russell Reynolds Associates to ensure diversity within the candidate long and

short-lists whilst identifying candidates who had the relevant skills and experience required on the Board.

Nomination Committee role and

activityFY24 continued

106 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Diversity and inclusion continued

Board diversity continued

In accordance with the UK Listing Rules, the following tables detail the diversity profile of

the Board and the Executive Committee as at 30 June 2024. This data was collated from

our HR database which has been populated using information provided by each individual

employee, including Non-Executive Directors. Diversity information for employees below

the Executive Committee can be found on pages 30 to 32. Subject to Matthew Pratt, Nicky

Dulieu and Geeta Nanda joining the Board, we will have five women on the Board (41.67%)

and two Directors from an ethnic minority background.

Reporting table on gender representation as at 30 June 2024

Number

of Board

members

Percentage

of the

Board

Number

of senior

positions

on the Board

(CEO, CFO,

SID and

Chair)

Number

in executive

management

Percentage

of executive

management

Men 6 66.7 3 4 50.0

Women 3 33.3 1 4 50.0

Reporting table on ethnicity representation as at 30 June 2024

Number

of Board

members

Percentage

of the

Board

Number

of senior

positions

on the Board

(CEO, CFO,

SID and Chair)

Number

in executive

management

Percentage

of executive

management

White British or

otherWhite

(including

minority-White

groups) 8 88.89 4 6 75.00

Asian/Asian British 1 11.11 0 1 12.50

Black/African/

Caribbean/

Black British 0 0.00 0 1 12.50

1 A full explanation regarding diversity is provided in the Chief Executive’s Statement on pages 31 and 32 of this report.

Ersham Park, Hailsham

Nomination Committee Report continued

107Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Diversity and inclusion continued

Diversity and inclusion throughout the business

The Nomination Committee and the Board recognise the importance of a diverse workforce, at all levels of seniority. Promoting diversity at senior management level, and

more generally across the workforce, remains an objective for David Thomas, our Chief Executive. David, together with the new Group HR Director, will continue to support

the Group Head of Diversity and Inclusion, to drive the agenda forward in this area and undertake full review of the overall strategy for 2025. The Group’s aim is for its

employee profile to mirror that of the communities in which it operates and provide an inclusive culture, where everyone can thrive. Further information on the Group’s

progressondiversityandinclusioncanbefoundonpages31and32.Themainobjectives,howtheyareimplementedandprogresstowardsthemaresetoutbelow.

Objectives Implementation Progress

Talent: HR processes that

support a wide range of

skills and backgrounds

Ensure we have a detailed

understanding of our people

and their needs

Review the HR lifecycle

activity and ensure it

is inclusive

Tailored support

programmes and

early careers

Alongside our continued quarterly scorecard that reports levels of representation by grade, function and team for gender and

ethnicity, we asked key demographic questions in an employee engagement survey to help us understand our population in

moredetail.ThisincludedquestionsrelatingtocaringresponsibilitiesandsocialmobilitymarkersasrecommendedbytheSocial

Mobility Commission.

Across the HR lifecycle we have made changes to ensure a more inclusive approach; this has included moving to diverse short-lists

for all roles, inclusive recruitment training for all hiring managers, support for carers following the launch of our Carers Leave Policy

and toolkits for employees and managers to support the menopause. Catalyst, a female support programme, has run for another

successful year, with its largest intake so far, and following a successful pilot Spotlight, our support programme for ethnic minority

colleagues, is in its second successful year. Employees are encouraged to self-nominate and the sessions are externally facilitated.

Leadership: role models

and allies – leading

the change

Leading

inclusivity workshops

Support difference

– employee network

sponsorship

Reverse mentoring

Our dignity and respect training for leaders has been rolled out to all our Divisional Directors and Group Service Centre Heads

of function. We have now also begun delivering this to full divisions across the country.

Each of our employee networks has an Executive Committee member as their sponsor, who supports the activities

andobjectivesoftherespectivegroup.

Both our gender and ethnicity support programmes include reciprocal mentoring, which is an opportunity for both our

leadership mentors and the programme mentees to share and learn.

We have established Regional Diversity and Inclusion Committees across the country, to support open dialogue to the

regional senior leadership teams on areas to address and successes. This is also creating collaboration across divisions

andensuringwesharebestpractice.

Shift attitudes: support

our people’s understanding

to create the right

experience for all

Hear the employee voice

National Inclusion Week

Dignity and

respect awareness

We have six employee network groups, offering a range of activities from webinars, leading discussions, marking of key events

and signposting support – gender (now including a sub-group for Women on Site and Tools), Ethnicity, Culture and Religion,

Disability, Families (including Carers) and LGBT+. A member of the Executive Committee sponsors each network.

National Inclusion Week in September 2023 saw each network celebrate its role models and offer insightful and educational

pieces, from blog posts to podcasts. We have over 3,200 views and all our networks saw an increase in membership.

Across a variety of delivery methods, we have continued to embed the importance of treating each other with dignity and

respect, valuing difference in each other. Face-to-face training, poster campaigns, including on-site, and a section in our-site

induction help support the message right through to sub-contractors.

Please refer to page 51 for more information on the Workforce Forum.

Nomination Committee Report continued

108 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Board and Committee evaluation

Each year, the Board undertakes a formal and rigorous annual evaluation of its own performance and that of its Committees and individual Directors. Every three years, the Board

undertakes an externally facilitated evaluation. The last one was carried out in 2022. This year’s evaluation was carried out internally by the Company Secretary. The next external

evaluation is scheduled to be carried out for FY25.

Board and Committee evaluation process for FY24

Stage 1

Online questionnaires issued to Board

and Committee members, and also to

those who attend Committee meetings

on a regular basis.

Stage 2

The Company Secretary

reviewed the responses

received and prepared a

consolidated report for

each of the Board and its

Committees to consider.

Stage 3

The reports were

shared with each of the

respective Chairs.

Stage 4

Results were

presented and

discussed at the June

or August Board and

Committee meetings.

Stage 5

Actions for improvement

were agreed for the next

financial year, as set

out below.

Progress on FY23 evaluation

Progress made against the outcomes of the internal Board evaluation undertaken in FY23 is set out below:

The Board

Board composition Strategy Diversity and inclusion

FY23 outcomes To ensure that the Board continues to have the

appropriate skills, experience and diversity to help

drive the Group’s strategy forward.

To review the existing strategy, market evolution

andfuturedirectionofthebusiness.

Focus on further developing the Group’s diversity and

inclusion agenda and increasing diversity on the Board

and throughout the business.

Progress in FY24 The Nomination Committee identified that the Board

required a Non-Executive Director with land and

construction experience to complement the existing

skills of the incumbent Directors and recommended

the appointment of Nigel Webb, which was subsequently

approved by the Board.

The Board held a strategy day during the year with

presentations from external experts to aid discussion

on the appropriateness of the current strategy.

Diversity and inclusion was added as a bonus metric

for senior management. The metric will be cascaded

to a further 300 employees for FY25.

The Board looks forward to enhancing the diversity and

skills on the Board post-completion of the combination.

Nomination Committee Report continued

109Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Progress on FY23 evaluation continued

Key areas of improvement for the Committees

Nomination Committee Audit and Risk Committee Remuneration Committee

FY23 outcomes Continue to focus on Board,

ExecutiveDirectorsandsenior

management succession.

To hold additional deep-dive and training sessions to support the Committee’s

understanding of current and emerging topics, including the impact of potential

changes to the various governance and audit landscape.

To continue to consider the structure of meetings to ensure that there is

sufficient time allocated to address changes that may be required to the

Committee’s remit in response to the implementation of any governance

andauditproposalsduringFY24orbeyond.

Consider ways to streamline the

metrics used for short and long-term

incentive schemes.

Progress in FY24 During FY24 the Committee held two

meetings with the Chief Executive to

discuss succession plans for him, the

other Executive Directors and senior

management. In addition, the Chair held

separate meetings with the Executive

Directors to get their views on their own

succession. Working with the Group

HR Director, a clear plan to identify

and develop internal candidates to

succeed the Executive Directors, at the

appropriate time, has been developed.

Having evolved the way in which risk is identified, assessed and monitored across

the organisation including by the Committee and the Board, deep-dive sessions into

each of the principal risks have started to be scheduled for each Committee meeting.

In June 2024, the Committee undertook a deep dive into the risks around our supply

chain and the mitigations, controls and assurance around these.

Deloitte LLP provided regular updates on the new UK Corporate Governance Code

which has enabled the Committee to determine the steps it needs to take to ensure

that the Group can meet the new requirements.

The annual agenda was reviewed during the year and updated to take into account

changes to the Committee’s remit that are required as a result of the new UK Corporate

Governance Code.

With the appointment of the Group

HRDirectorafullreviewofthemetrics

and structure of the annual bonus

schemes was commenced during

the year. In addition, the Committee

considered the metrics for the

LTPP award. Given the combination

with Redrow, the Remuneration

Committee and management will be

reviewing the Remuneration Policy,

structure and metrics as part of the

integration process.

FY24 Board effectiveness evaluation outcomes

Overall, the results of the evaluation were positive and showed that the Board continues to be run effectively. It is seen as being cohesive and comprising the appropriate balance of

experience, skills and knowledge to implement the Group’s strategy. Board meetings operate in a spirit of openness, fostered by the Chair, in which Directors are able to challenge and

discuss openly ideas of importance to the Group, its strategy and risk.

Key areas of improvement for the Board

Succession Integration Interaction with stakeholders

FY24 outcomes Have greater visibility over the talent pipeline. Successfully integrate the Redrow business and start

to deliver synergies.

Gain a better understanding of stakeholders’ interests

and concerns during uncertain market conditions and

the integration period.

Actions for FY25 Increase the level of interaction between the Board

and individuals named in the succession plans.

Monitor progress against the integration and

synergies plan.

Identify a range of events and opportunities in which

individual Board members can participate and feed

back to the Board.

Nomination Committee Report continued

110 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

FY24 Board effectiveness evaluation outcomes continued

The Committees

Nomination Committee Audit and Risk Committee Remuneration Committee

FY24 outcomes Continue to develop the Committee’s approach to

succession for Executive and Non-Executive Directors

and senior management.

Continue to seek and develop talent at

executive level.

Ensure that members of the Board and senior

management have the appropriate skills, knowledge

and experience to guide the business through

the integration with Redrow post CMA clearance

and to deliver the synergies identified as part of

theCombination.

Continue to evolve the risk management process

including the internal control framework and

assurance process.

Ensure adequate processes and reporting are in place

to enable the Committee to monitor progress with the

synergies in respect of the combination.

To ensure that the Remuneration Policy, strategy and

performance metrics are appropriate to support the

Combination and deliver the synergies.

Actions for FY25 Continue with the succession planning meetings with

the Chief Executive.

Working with the Group HR Director develop a process

to identify talent and the support required for their

development to create a diverse succession pipeline.

Continuously monitor progress with the integration

and delivery of synergies and consider with the Chief

Executive whether any other skills are required to

drive this forward.

Continue to support the work being undertaken by

the Director of Risk and Audit in enhancing the risk

management process.

Work with management and the Director of Audit and

Risk to identify and agree the process and reporting

required to give full visibility of progress on synergies.

To review the Group’s Remuneration Policy to ensure

it remains fit for purpose and adequately supports

theCombination.

To consider how performance metrics for short and

long-term incentives may be streamlined and support

the Combination.

To review and, if required, adjust the metrics

ofanyin-flight,long-termincentivestoreflect

theCombination.

Evaluation of individual Directors

In May 2024, a questionnaire was issued to all Directors to assess the effectiveness of Caroline Silver, in her capacity as Chair of the Board. The Senior Independent Director discussed

the comments and views expressed with the Non-Executive Directors and then provided the feedback to Caroline. Caroline was seen as being supportive but appropriately challenging,

managing meetings with professionalism and ensuring each Director had the opportunity to express their views. Despite her other commitments, Caroline was seen to be available

and flexible, maintaining a high level of engagement with the Company, management and members of the Board. During FY24, the Chair held one-to-one meetings with each Director

to assess the effectiveness of their contributions, the appropriateness of their experience and the effectiveness with which they utilised that experience in furthering the Company’s

strategy. Any areas of improvement or training and development were agreed. There were no issues of any substance arising from these meetings.

This report forms part of the Corporate Governance Report and is signed on behalf of the Nomination Committee by:

Caroline Silver

3 September 2024

Chair of the Nomination Committee

Nomination Committee Report continued

111Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Audit and Risk Committee Report

Audit, risk and internal control

Statement from the Chair of

theAudit and Risk Committee

I am pleased to present the Audit and Risk

Committee’s Report for the year ended

30June2024.

This report sets out our work and how our responsibilities

in relation to audit, risk and internal control have been

implemented. We work closely with our Finance and

Internal Audit teams, and with Deloitte LLP to ensure that:

• our risk and internal control processes remain robust

andcontinuetoadapt;

• our financial reporting remains clear; and

• our critical accounting judgements and key sources of

estimation uncertainty are appropriate.

Areas of focus FY24

Risk Management and Internal Control

During the year we renamed the Committee to the Audit

and Risk Committee and reviewed the annual cycle of

work to extend its scope to monitor the Group’s risk

management processes and activities. This was a natural

step given the continued development of the role of risk

management alongside internal controls and the oversight

by the Committee.

The approach to risk management and internal control is

based around the Group’s principal risks. In anticipation of

the Audit Reform changes we have taken steps to enhance

our risk management, internal controls and assurance

processes. This has resulted in a more integrated process

Committee members

Quick facts

• All members of the Committee are independent

Non-Executive Directors

• Jock Lennox and Jasi Halai have recent and relevant

financial experience

• The Committee as a whole has competence relevant

to the sector in which the Group operates

Details of Committee members’ skills and experience can be

found on pages 90 to 92

Nigel Webb

Jasi Halai

Jock Lennox

Chair of the Audit and Risk Committee

Katie

Bickerstaffe

Chris Weston

Our approach

tomanaging risk

Jock Lennox

Attendance at each meeting is set out on page 95

Focus in the reporting year

• Enhanced our risk management and internal

control processes

• Considered the impact of the acquisition of Redrow plc

on risk management, internal controls and reporting

• Continued to monitor and assess the accounting for, and

control over, provisions for legacy buildings

• Reviewed the Group’s reporting of and assurance obtained

over sustainability performance

• Continued our oversight of external audit

Priorities for FY25

• Continue to scrutinise control over and provisions for

legacy buildings

• Consider integration risk related to the

Redrowcombination

• Consider the implications of any changes in government

policy for the housing market

112 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

that is grounded in a debate of our risks (including a Board

risk workshop), considers mitigating actions and controls

and oversees the assurance, including from Internal Audit,

that gives comfort as to their operation. The process

includes regular consideration of emerging and changing

risk and the related evolution of our principal risks.

The Committee collectively and individually has reviewed

this model in the year and was satisfied that it is fit for

our purpose and will satisfy our reporting requirements

as the recently announced changes to the UK Corporate

Governance Code (including the FRC’s minimum standard

for Audit Committees) are introduced.

A deep dive into each of the Principal Risks is presented to

the Committee on rotation. At our meetings in June and

August 2024 Supply Chain Resilience (including consideration

of modern slavery and human rights) and Government

Regulation were debated. In each case presentations

were made by members of the management team, actions

considered and next steps agreed.

Acquisition of Redrow plc

The Committee has considered the impact of the

acquisition on both risk management and internal

controls and financial reporting requirements. Various

discussions have taken place with management and the

external auditor, and the Committee has been satisfied

that appropriate resources are being applied to the

consequences for risk management and internal controls

and that the financial reporting disclosures are appropriate.

Legacy Properties

At each meeting we received updates from management

on the Group’s exposure to the risks derived from both

fire safety relating to external wall systems (EWS)

and the remediation required to reinforced concrete

frames. Presentations were received from both financial

management and the leadership of the Building Safety Unit.

As can be seen in the results, further provisions were

required in respect of EWS and reinforced concrete frames.

In the period, certain additional buildings were brought into

scope and risks were determined to require remediation.

These buildings and risks had been previously disclosed as

contingent liabilities. The risk that further liabilities could

arise is still disclosed within contingent liabilities, but

the rate of emergence of new buildings has declined. The

development of these issues and the assumptions for the

remaining provisions have been subject to considerable

debate with management and the Committee is satisfied

that the conclusions reached and the timing of the

provisionsbeingrecognisedandutilisedisappropriate.

Work is expected to continue for the next five years. The

Committee has discussed the need to balance the pace of

remediation with ensuring that the quality of the work being

undertaken remains at satisfactory levels in line with our

value of ‘We Do It Right’, given the demand on the supply

chain. The Committee continues to seek comfort from

management that the approach being pursued by them is

consistent with the overarching objective that leaseholders

should not be disadvantaged, and remediation is set at the

appropriate level.

CMA investigation into information sharing

As has been commented on publicly and elsewhere in this

report, the CMA launched an investigation into suspected

breaches of competition law, relating to the exchange of

competitively sensitive information, by eight housebuilders,

including Barratt and Redrow in February 2024.

This has been an important issue for the Committee to

consider, involving discussions with both management

and legal advisors. The Committee has received regular

updates on the status of the investigation since its inception

including the related risks. Regard has been given to the

disclosure contained in this Annual Report, including those

relating to contingent liabilities. Analysis and papers were

received from management and our legal advisers, following

review and discussion of which the Committee agreed that

the conclusions reached on disclosure are appropriate.

Sustainability

During the year, the Committee reviewed the results of

a benchmarking exercise which compared the Group’s

disclosures and assurance of ESG metrics with those of

peer companies. Following this review, we were satisfied

that Barratt continues to obtain and disclose assurance on

ESG related metrics in line with best practice across its

peers. The extent of assurance and reporting is continuing to

evolve, including in relation to scope 3, and the Committee

continues to have oversight of this.

The Committee debated the extent of the sustainability

disclosure, and asked the Sustainability Committee, where

I am a member, to do similarly. As a consequence, the

structure and extent of sustainability reporting has evolved

and can be found on pages 40 to 44 and pages 71 to 84.

Audit oversight

As a Committee, we continue to hold meetings with the

external auditor and with the Director of Audit and Risk

without the Executive Directors being present to discuss

matters within our remit and provide them the opportunity

to raise matters in private. I also meet separately with the

external auditor and Director of Audit and Risk outside

formal meetings. This included a meeting with the wider

external audit team to understand their experience.

Key areas of focus for FY25

We will continue to oversee the development of our

approach to risk management and internal controls,

including further deep dives into each of our principal risks.

This will help us to ensure that we are well prepared for the

adoption of the changes arising from the 2024 UK Corporate

Governance Code and any that emanate from amendments

to policy and legal requirements that are implemented by

the new Government.

In FY25 we will continue to oversee the provisioning for

legacy properties; risk and control topics that emerge from

the Redrow integration; the continuing development of our

sustainability reporting; and any implications of the CMA

investigation into information sharing.

Given that I will be coming up to my nine-year anniversary

of joining the Board in July 2025, I will work closely with

the Chair to ensure that everything is in place for me

to handover the position of Chair of the Audit & Risk

Committeetomysuccessor,ifIstepdownfromthe

Board. I look forward to meeting shareholders at the

forthcoming AGM.

Jock Lennox

Chair of the Audit and Risk Committee

3 September 2024

Audit and Risk Committee Report continued

Statement from the Chair of the

Audit and Risk Committee continued

Areas of focus FY24 continued

Risk Management and Internal Control continued

113Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Role and activity of the

AuditCommittee

Membership and attendance atmeetings

Members of the Committee are set out on page 112. In addition

to Committee members, the Company Secretary, Director

of Audit and Risk, Group Director of Finance, Chair of

the Board, Chief Executive, Chief Operating Officer, Chief

Financial Officer and representatives from our external

auditor attended each of the Committee meetings. Other

executives and senior managers attended when appropriate

for specific agenda items.

After each Committee meeting, it reports to the Board

onthemattersdiscussedandmakerecommendations

asappropriate.

Audit and Risk Committee Report continued

Priorities Work carried out and outcomes

Integrity of

Financial

Statements and

announcements

• Reviewed the Annual Report and Accounts and assessed the processes which ensure it is fair, balanced and understandable.

• Reviewed the full year and interim results announcements.

• Reviewed the going concern statement.

• Considered management’s analysis of significant accounting and audit issues, including the costs associated with legacy properties and their presentation in the

Financial Statements, concluding that they remain appropriately provided and disclosed.

• Received regular updates on the status of the CMA’s investigation into suspected breaches of competition law by eight housebuilders, including Barratt and Redrow,

and the potential risks and consequences of this. Considered the relevant disclosures in this Annual Report, including those relating to contingent liabilities.

Risk

management

and internal

control systems

• Oversaw improvements to the Group’s risk management framework, including the increase in scope of the Committee to cover risk management as the renamed

Audit and Risk Committee and the introduction of a quarterly risk review by the Executive Committee.

• Received a report from external advisers on the results of an assessment of the Group’s design risk controls and oversaw management’s plans and progress in

implementing more effective design risk controls.

• Received regular risk updates from the Director of Audit and Risk.

• Performed deep-dive reviews of supply chain resilience risk (including the availability of supply and modern slavery and human rights) and Government regulation risk.

• Reviewed the effectiveness of the Group’s risk management and internal control processes, concluded that they continued to operate effectively and recommended

to the Board that a disclosure to this effect be included in the Annual Report and Accounts.

• Reviewed the viability model.

• Considered the implications of the 2024 Corporate Governance Code and the potential for more changes from the new Government.

Committee effectiveness

The Committee has a carefully planned agenda of items

of business to ensure that high standards of financial

governance and risk management are maintained.

Therewerefourscheduledmeetingsduringtheyear.

I have an open, constructive and collaborative relationship

with management and meet with them and the external

and internal auditors outside of meetings to share views

and discuss key issues.

The Board evaluation for FY24, which is described more

fully on page 109, included an appraisal of the performance

of the Committee. The outcome of the appraisal was that

the Committee is operating effectively and should continue

to evolve the risk management and internal controls

framework and ensure adequate processes are in place to

monitor progress on the integration of Redrow, including the

establishment of consistent financial and operating controls

for the combined Group and the achievement of synergies.

Further details can be found on page 109

Role and main activities undertaken by the

Committee during the financial year

The main role of the Committee is to assist the Board in

fulfilling its governance obligations relating to the Group’s

financial and non-financial reporting practices and its risk

management and internal controls framework.

We review and agree an annual work programme to ensure

that our role and responsibilities are completed throughout

the year. In agreeing the annual programme, we consider

the external environment, internal operation of the business

and regulatory changes to ensure that all the main priorities

are included. Following the increase to the Committee’s

scope we conducted an interim review of our annual work

programme to ensure additional responsibilities relating to

the identification and management of risk would be duly

covered during the year.

During the year we carried out the following activities:

114 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Priorities Work carried out and outcomes

Internal audit • Confirmed that an internal quality self-assessment had been carried out by the internal audit function against IA standards for FY24 and concluded that the internal

audit function continues to be effective.

• Agreed internal audit’s programme of work for the year and reviewed progress against the plan.

• Approved the annual review and updates to the risk assurance map, setting out the assurance provided by each of the three lines of defence over the effective

management of the Group’s principal risks.

• ReviewedandapprovedtheAuditCharterensuringthatitisappropriatetothecurrentneedsoftheorganisation.

External audit • Reviewed the outcome of the Group’s external audit quality indicator assessment.

• Reviewed Deloitte’s audit plan for the Annual Report and Accounts, including key audit risks and divisional audit work performed around the business, and the

progressoftheaudit.

• Recommended to the Board the reappointment of Deloitte LLP as external auditor.

• Reviewed and approved changes to the external auditor Non-Audit Services Policy.

Governance • Monitored progress of the finance strategy.

• Updated the Terms of Reference to align with the FRC’s Minimum Audit Standards and enhanced the Committee’s oversight of risk management processes and

theCompany’sprincipalrisks.

• Worked closely with the Remuneration Committee and the Sustainability Committee to ensure that target setting and performance measurement for the variable

elements of the remuneration package were challenging, stretching yet achievable.

FY24 Financial Statements

Significant issues considered during the financial year

The issues considered by the Committee to be the

most significant (due to their potential impact on the

performance of the Group’s activities) in relation to the

Financial Statements during the financial year are set

out below.

1. Critical accounting judgements and key sources

ofestimation uncertainty

These are set out in the table on the following page.

2. Going concern

As a Committee, we:

• concurred with management’s conclusion, and

recommended to the Board, that the Company and the

Group continue to be a going concern and that the Financial

Statements should be prepared on a going concern basis;

• using the Group’s business plan, assessed the Group’s

available facilities, headroom and banking covenants;

• reviewed management’s detailed analysis, which included

forecasts, scenarios and sensitivities and the impact of

the Combination;

• considered the going concern requirements of the Code

to ensure compliance; and

• continued to monitor market conditions to ensure any

appropriate adjustments are reflected.

We also reviewed management’s viability assessment of

theGroupandagreedthatitwasappropriate.

Further details on the Group’s going concern assessments can be found

in note 1 on pages 165 and 166, and the Group’s viability statement can

be found on pages 85 to 87

3. Financial reporting

We reviewed the integrity of the Financial Statements of

the Group and the Company, and all formal announcements

relating to the Group and Company’s financial performance.

This process included the assessment of the following

primary areas of judgement and took into account the

viewsofourexternalauditor.

Audit and Risk Committee Report continued

Role and activity of the Audit Committee continued

Role and main activities undertaken by the Committee during the financial year continued

115Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Role and activity of the Audit Committee continued

FY24 Financial Statements continued

Significant issues considered during the financial year continued

3. Financial reporting continued

Issue The Committee’s response External auditor challenge Outcome

Margin recognition

Development costs are allocated, on a site by

site basis, between homes built in the current

and future years. The Group’s site valuation

process determines the profit margin for each

site. Integral to this is the consideration of the

completed development provision. This requires

the estimation of future sales prices and costs

to complete each site. Further detail is given in

note 3 on page 168.

The Committee considered:

• Assumptions and estimates as they related to build

cost and sales prices in particular. The Committee also

reviewed and validated the Group’s overall approach to

margin recognition.

• Internal audit feedback on adherence to the Group’s

policies and procedures in the divisions.

• The adequacy of the Group’s control structures around

valuation and cost to complete, both from a systems

and process standpoint.

Throughout the year, the external

auditor has attended valuation

meetings, reviewed land acquisition

feasibility assessments and

challenged cost-to-complete

assumptions through analytic

procedures and discussion with

divisional management. A review

of the key estimates in the margin

calculation at a Group level was also

undertaken to ensure the overall

margin is appropriate.

As a result of its review, the Committee

was comfortable with the approach

taken by the Group on this key area

of control, and also on the valuation

of the Group’s WIP balance (including

the assessment of the need for NRV

provisions) and margin recognised.

Costs associated with legacyproperties

The Group has a liability for remedial work

on its legacy property portfolio, in two areas:

external wall systems (EWS) and reinforced

concrete frames. Estimations of those

costprovisionsaretobesufficientlyprovided

for and appropriately disclosed.

The Group has sought to respond appropriately

to ongoing evolution in the regulatory environment,

and to reflect sufficient provisions during

a period of unit cost inflation and ongoing

discovery in the known building portfolio.

Further detail is given in note 4 on page 169

andnote19onpages187and188.

Regarding EWS, the Committee has reviewed and

challenged the quantum of provisions held against

specific buildings under review, considering the

assumptions made regarding cost inflation and the

number of buildings provided for. The adequacy of the

assumedcostperunithasbeenaparticularfocus.

On reinforced concrete frames, a review of the

completeness of the provision held was undertaken

during the year. In addition the Committee considered

the nature of the Group’s liabilities between contingent

liabilities and specific provisions, as well as the timing of

recognition of those liabilities and potential liabilities.

The Committee also considered the adequacy of disclosures

concerning the Housing (Cladding Remediation) (Scotland)

Act 2024.

The Group’s COO and Managing Director of the Building

Safety Unit also attended the Committee to ensure

members were appropriately and sufficiently informed

ofrelevantmatters.

The external auditor reviewed

the controls implemented by the

Group over the recognition and

measurement of legacy property

costs. For both the reinforced

concrete frames and EWS provisions,

they validated the balance recognised

tosupportingevidenceandchallenged

the underlying management

assumptions governing valuation

andcompleteness.

The external auditor also challenged

the appropriateness of the disclosures

in the Financial Statements in relation

to the provisions and associated

contingent liabilities, including

the adequacy of the disclosure of

estimation uncertainty, and the

presentation of legacy property

costsasadjusteditems.

Based on this, the Committee was

comfortable with the process and

controls adopted by management

around the disclosures, including

contingent liabilities, and estimation

of costs and provisions associated

with legacy properties.

Fair, balanced and understandable considerations and conclusions

We received a draft of the Annual Report and Accounts prior to our August 2024 meeting, together with supporting material from management and the external auditor. At the meeting,

we considered and assessed the process undertaken in drafting the 2024 Annual Report and Accounts to determine whether it was fair, balanced and understandable.

Audit and Risk Committee Report continued

116 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Role and activity of the Audit

Committee continued

Considerations

• Feedback provided by shareholders on the FY23 Annual

Report and Accounts.

• Assurances provided in respect of the financial and

non-financial management information.

• The balance between statutory and adjusted

performance measures.

• The internal processes underpinning the Group’s reporting

governance framework and the reviews and findings of

the Group’s external legal advisers and external auditor.

• A report from the Company Secretary, which confirmed

that: i) the process involved collaboration between

various parts of the Group, including the Group Finance

team, Company Secretariat, Group Communications,

Investor Relations and the Sustainability team; ii) the

Annual Report and Accounts had been reviewed by the

Executive Directors; and iii) the Company had received

confirmation from its external advisers that the Annual

Report and Accounts adhered to the requirements of the

Companies Act, the Code, the UK Listing Rules and other

relevant regulations and guidance.

Conclusions

The Committee concluded that the Annual Report and

Accounts for the year ended 30 June 2024:

• clearly, comprehensively and accurately reflects the Group

and Company’s performance in the year under review;

• contains an accurate description of the business model;

• appropriately reflects the Group and Company’s purpose,

strategy and culture;

• includes consistent messaging and clear linkage between

each of its sections; and

• includes KPIs, which are consistent with the business

plan and remuneration strategy.

Audit and Risk Committee Report continued

Accordingly, we recommended to the Board that the

FY24 Annual Report and Accounts is fair, balanced and

understandable. The Board’s formal statement on the

Annual Report and Accounts being fair, balanced and

understandable is contained within the Statement of

Directors’ Responsibilities on page 148.

Risk management and internal controls

During the year we renamed the Committee the Audit and

Risk Committee and reviewed the annual cycle of work to

extend its scope to monitor the Group’s risk management

processes and activities.

We monitor the Group’s risk management and internal control

systems, including their effectiveness, on behalf of the Board.

The key aspects are as follows:

• a clear organisational structure with defined levels of

authority and responsibility at all levels of the business;

• financial and management reporting systems under which

financial and operating performance is planned on a three-

year basis and budgeted annually. Financial and operating

performance is consistently reviewed against budget

and forecasts at divisional, regional and Group levels

on a monthly basis, variances are explored and, where

appropriate, changes made, and the information is used

inthepreparationoftheAnnualReportandAccounts;

• regular risk updates from the Director of Audit and

Risktoprovidegreateroversightofriskmanagement

activity, including the approach to risk management

andriskidentification;

• identification and review of principal operational risk

areas to ensure they are embedded in the Group’s

monthly management reporting system as routine

aspects of managerial responsibility. Details of the

riskmanagementsystemandtheprincipalrisksare

setoutonpages63to70;

• assessment of compliance with risk management and

internal control systems, including a consideration of

controls over non-financial risks. This assessment is

supported by the Group’s internal audit team, which is

responsible for undertaking a risk-assessed annual audit

plan, ad hoc audits and reporting to the Committee,

and, if necessary, the Board, on the operation and

effectiveness of those systems and any material

failings. During the year we oversaw a detailed review

of design risk controls and received regular updates on

management’s plans and progress in implementing more

effective controls in this area;

• mapping of assurance procedures to the Group’s

principal risks, to ensure that the mitigating controls

aresufficientlyrobust;and

• consideration and approval of the Group’s tax position

and strategy.

The Group’s operations and financing arrangements expose

it to a variety of financial risks that include the effects of

changes in borrowing and debt profiles, Government policy,

market prices, credit risks, liquidity risks and interest rates.

There is a regular, detailed system for the reporting of daily

cash balances and forecast cash flows from operations

to senior management, including Executive Directors, to

ensure that risks are promptly identified and appropriate

mitigating actions taken. These forecasts are further stress

tested at a Group level on a regular basis. In addition, the

Group has in place a risk management programme that

seeks to limit the adverse effects of the other risks on its

financial performance, for example limiting its exposure to

institutions with high credit ratings. Financing activities are

delegated by the Board to the Treasury Operating Committee.

Group Treasury operates according to treasury policies that are

approved by the Board and the Treasury Operating Committee.

Our approach to risk management and internal control is

based around the Group’s principal risks. In anticipation

of the Audit Reform changes we have enhanced our risk

management and internal control framework and assurance

processes, resulting in a more robust process that

debates risks (including a board risk workshop), considers

mitigating actions and controls and oversees the assurance,

including from internal audit, that gives comfort as to their

operation. The process includes regular consideration of

emerging and changing risk and the related evolution of

ourprincipalrisks.

The Committee reviewed this model during the year and

was satisfied that it is fit for purpose and will satisfy our

obligations as the requirements of the 2024 UK Corporate

Governance Code and the FRC’s minimum standard for

Audit Committees are introduced.

117Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Role and activity of the Audit

Committee continued

Risk management and internal controls

continued

A deep dive into each of the Company’s Principal Risks will

be presented to the Committee on rotation (being adaptable

as necessary). At our meetings in June and August 2024

Supply Chain Resilience (including consideration of modern

slavery and human rights) and Government Regulation were

debated by the Committee. In each case presentations

were made by members of the management team, actions

considered and next steps agreed.

During the year, in order to bring greater transparency to

the assurance we receive and gain greater comfort over the

Group’s management of risks and the accuracy of reporting,

we reviewed:

• a risk assurance map setting out the assurance already

in place, using the three lines of defence model, to

identify gaps or areas where improvement in assurance

is required;

• assurance mapping over the Group’s published financial

and non-financial information. The Board made the

decision to again appoint Deloitte to provide additional

independent assurance over certain aspects of the

Group’s climate-related disclosures, including TCFD

andcertainothernon-financialinformation;and

• the completion of the annual detailed fraud risk

assessment exercise to identify, consider, and assess

fraud risks in place across the Group and the associated

controls and assurance in place to mitigate and

manage these.

As Chair of the Committee, I have also considered the

resource for assurance and the evolution of those resources

over the past five years and I am satisfied that the assurance

resources in place are appropriate for the size and

complexity of the business.

Audit and Risk Committee Report continued

Whistleblowing

The Group has a clear whistleblowing policy and procedure,

which is communicated to the workforce. Concerns can

be raised by employees with managers, or can be reported

anonymously to a confidential and independent hotline.

The hotline is available 24 hours a day, and matters raised

are notified to internal audit immediately by email. Matters

requiring urgent attention (including corruption, human rights

abuse and personal safety) are notified to the Director of

Audit and Risk by phone immediately, including outside

business hours. The internal audit function reviews matters

raised, and ensures each matter is investigated or refers

them to other relevant functions across the business,

such as the Safety, Health and Environment or HR teams,

to investigate as appropriate. Any substantive issues are

raised with me as Chair of the Committee. The Director

of Audit and Risk also updates the Committee on all

significant whistleblowing incidents at each of its meetings.

The Committee reviews the overall procedure, investigations

and outcomes, as well as the availability and frequency of

use of the whistleblowing hotline.

As Chair of the Committee, I update the Board on

whistleblowing reports and investigations on a regular basis,

and the Board reviews the whistleblowing arrangements

and discusses the most significant issues as appropriate.

Examples of whistleblowing reports received during the

year included allegations of individual improper behaviour

and minor theft of materials from site, all of which were

thoroughly investigated and actions taken as appropriate.

Internal audit

Internal audit’s primary role is to provide independent,

objective assurance to the Audit and Risk Committee

as well as advisory support to help management make

improvements across the business. The function is led by

the Director of Audit and Risk who reports directly to the

Chair of the Committee to maintain independence.

The internal audit plan is driven by the Group’s strategy

and principal risks and is approved six monthly by the

Committee. In line with the approved audit plan, internal

audit reviews the effectiveness and efficiency of the

systems of risk management and internal control and

monitors the activities of the Group in accomplishing

established objectives. Reviews conducted in FY24 covered

financial, operational and compliance controls as well as

IT reviews. Following each review, a report is provided to

management on the control framework in place together

with appropriate improvement recommendations and

follow-up processes ensure that recommendations are

implemented in a timely manner. Progress against the

internal audit plan and summaries of audit reviews are

provided at each Committee meeting for review and discussion.

The Director of Audit and Risk conducted a self-assessment

during the year in order to assess the effectiveness of the

function against the required IIA standards, professional

practices and governance requirements and reported

the results to the Committee, which concluded that the

function continued to operate effectively.

The Committee again considered the reporting line of the

Director of Audit and Risk, and confirmed that it continued

to be comfortable with the existing reporting line to the

Chief Financial Officer given that the Director of Audit and

Risk had regular formal meetings with the Chief Executive

and any issues are reported to the Chief Executive in a timely

manner. It was also comfortable with the independent

relationship between the Director of Audit and Risk, the

Chair of the Committee and the wider Committee. The

Committee confirmed that it would continue to keep this

reporting line under review.

External audit

Audit performance and effectiveness

We annually review the external audit plan and process and

again approved the audit of key risk areas earlier in the year

to reduce pressure on the busy financial reporting period

after year end.

In FY22 Deloitte was appointed, after a thorough tender and

interview process, to provide assurance over our TCFD and

certain other non-financial disclosures. The appointment

and fees associated with this work are in accordance with

our Auditor Independence and Non-Audit Fees Policy.

118 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

management. The Deloitte team expect to address the

highlighted areas of focus in FY25.

During the audit, the external auditor challenged

management’s judgements and assertions on the following

matters in particular:

• margin recognition and the related completed

development provisions; and

• valuation and completeness of provisions related to

external wall systems and reinforced concrete frames on

legacy developments.

Our response to these can be found in the relevant section

of the table of significant issues on page 116.

We concluded that the external audit process as a

whole had been conducted robustly, the external audit

team selected to undertake the audit had done so

thoroughly and professionally, and the external auditor

had applied sufficient experience and understanding of

the housebuilding industry, consulted with experts as

necessary, and is of sufficient size to conduct the audit.

Deloitte’s performance as external auditor to the Group

during FY24 was therefore considered to be satisfactory.

In addition, we were satisfied that management had

provided the external auditor with appropriate access to

Barratt’s own people, systems, records and supporting

information, whilst acting professionally and with appropriate

challenge, enabling the audit to be conducted effectively.

Auditor independence and non-auditfees

The Company’s policy on auditor independence and non-audit fees

isavailable at www.barrattdevelopments.co.uk/investors/

corporate-governance

The Company policy caps non-audit fees at 70% of the

average audit fees over the previous three years. We

continually monitor the ratio of non-audit to audit fees to

ensure that it does not exceed this cap. For FY24, non-audit

fees (including audit-related assurance services) for the

Company and its subsidiaries were £319k, representing

26.2% of the total audit fee.

Non-audit fees based on the average of the previous three

years’ audit fees were 29.9%. Further details of the audit

and non-audit fees incurred by the Group can be found in

note 3 on page 169. Non-audit fees incurred in FY24 were

for work undertaken by the external auditor for the review

of the half year report and also assurance provided over

TCFD and certain financial and non-financial information

disclosed in the Strategic Report and the unaudited section

of the Remuneration Report.

This policy also sets out our duties as a Committee relating

to the protection of the objectivity and independence of

the external auditor. The pre-approval levels and conditions

required for different non-audit services that might

be required from the external auditor, together with

prohibited services, are detailed in the Policy. It also

sets out restrictions on the recruitment of employees

from the external auditor. The policy was reviewed and

updated in August 2023 to include a “third-party test”,

which is the consideration of whether an objective,

reasonable and informed third party would conclude that

integrity or objectivity (and therefore independence) is

not compromised. This analysis includes various factors

such as the nature of the service, the level of fees and

any other factors that may be relevant for a third party to

understand the effectiveness of the safeguards and take

into consideration both qualitative and quantitative factors.

Following this change, non-audit services can only be

provided by Deloitte if the third-party test is passed.

The policy is in line with the auditor independence rules

of the FRC’s Revised Ethical Standard 2019 and includes

the FRC’s whitelist of permitted non-audit services. There

are no conflicts of interest between the members of the

Committee and the external auditor.

The Committee requires written confirmation annually

from the external auditor that it remains independent.

For FY24, the external auditor provided a comprehensive

report to the Committee verifying that it had performed its

audit and audit-related services in line with independence

requirements and explaining why it believed that it

remained independent within the requirements of the

applicable regulations and its own professional standards.

The report also explained why the ratio of audit to

non-audit fees, and the extent and type of non-audit

services provided, was appropriate. As a Committee we

conducted our own review and endorsed the external

auditor’s conclusions on compliance with the policy and

independence of the external auditor.

Accordingly, we were satisfied that both the work

performed by the external auditor, given its knowledge of

the Group, and the level of non-audit fees paid to it, were

appropriate and did not raise any concerns in terms of our

external auditor’s independence.

Feedback from all stakeholders on the external audit.

The external auditor’s fulfilment of the agreed audit

planforFY24.

Reports highlighting the material issues and

critical accounting judgements and key sources of

estimation uncertainty that arose during the conduct

of the audit.

The external auditor’s objectivity and independence

during the process, including its own representation

about its internal independence processes.

The challenges raised by the external auditor during

theaudit.

External audit continued

Audit performance and effectiveness continued

In forming our conclusion on performance and effectiveness

of the external audit, we reviewed amongst other matters:

I met with the leaders of the external audit team to assess

their experience and understanding of Barratt. These interactions

provided positive input on the effectiveness of the audit.

In assessing the effectiveness and performance of the

external auditor, we also approved the Group’s approach

to assessing audit quality. As in FY23, a questionnaire was

circulated covering five significant audit areas. A wide range

of internal stakeholders were included across the Group’s

senior leadership. Four out of five areas were rated ‘good’,

with some opportunity for improvement noted in project

Audit and Risk Committee Report continued

Role and activity of the Audit

Committee continued

119Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

852

186

230

FY24 (£000)

£1,537

FY23 (£000)

£1,311

Total audit and

non-audit fees

Company audit

Subsidiaries audit

Audit-related services

Other services

FY22 (£000)

£1,189

680

262

210

Auditor rotation

timeline

2007

Deloitte appointed for

FY08 audit

2017

Deloitte reappointed

following competitive tender

2026

Competitive tender

forFY28 audit, unless

particular circumstances

require an earlier tender

Role and activity of the

Audit Committee

continued

External audit continued

External audit tender

Deloitte was first appointed as external

auditor to the Group in 2007, and was

reappointed following a competitive tender

in FY17. The Company has therefore complied

with the provisions of the Statutory Audit

Services for Large Companies Market

Investigation (Mandatory Use of Competitive

Tender Processes and Audit Committee

Responsibilities) Order 2014 issued by the

CMA on 26 September 2014. Jacqueline

Holden has completed her second year as

lead audit partner. Jacqueline was selected

after an interview process involving me,

supported by the then acting Chief Financial

Officer. The external audit team’s second

audit partner started for the FY20 audit and

will be rotated for FY25. The new second

partner has shadowed the team in FY24.

Under current regulations, the Company

must appoint a new auditor for the audit

of the year ended 30 June 2028. Given the

continuingeffectivenessofDeloitteinits

role as external auditor, we currently believe

it is in the best interests of shareholders

for Deloitte to remain in role and for a

competitive tender process to be completed

in time for the FY28 audit. In December

2023 we undertook a review of potential

audit firms, both from the Big 4 and

challenger firms that we could invite to

tender for the Group’s audit when Deloitte’s

tenure expires. The review focused on

independence considerations and potential

conflicts of interest given the requirement

for the selected firm to be “clean” for FY27,

a year ahead of their first audit in FY28.

Thiswillbekeptunderreviewinadvance

oftherequiredtender.

Audit and Risk Committee Report continued

1,023

195

230

Whilst we currently intend for Deloitte to

remain in role, we will continue to monitor

its performance as external auditor and

make recommendations accordingly.

The Group appointed UHY Hacker Young LLP

as the auditor for certain of its subsidiaries

and JVs with effect from the FY23 audits.

This appointment followed a rigorous

tender process. The timing of this audit

work follows completion of the Group

audit and therefore has no bearing on

the scope of Deloitte’s audit. As well as

realising some efficiency, this step provides

the opportunity for one of the so called

challenger audit firms to gain experience.

Assessment of the external auditor

Having considered the external auditor’s

performance, we recommended to the

Board that the external auditor remains

independent, objective and effective in its

role and therefore should be reappointed

for a further year. On our recommendation,

the Board is putting forward a resolution

at this year’s AGM to reappoint Deloitte

as external auditor for a further year.

The recommendation of reappointment

of Deloitte is free from influence by a

third party and no contractual term of

the kind mentioned in Article 16(6) of

the Audit Regulation has been imposed

on the Company whereby there would

be a restriction on the choice to certain

categories or lists of auditors.

This report forms part of the Corporate

Governance Report and is signed on behalf

of the Audit and Risk Committee by:

Jock Lennox

Chair of the Audit and Risk Committee

3 September 2024

120 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Safety, Health and Environment Committee Report

Committee members

Steven Boyes

Chris Weston

Chair of the Safety, Health and Environment Committee

Our approach to safety,

health and the environment

Quick facts

• One meeting during the year

• All Committee members attended two SHE

Operations Committee meetings during the year

tokeepupdatedonkeydevelopmentsandmaintain

oversight of progress against key actions

• The Committee Chair is invited to attend all SHE

Operations Committee meetings

1 In addition, Vince Coyle, Group Safety, Health and Environmental Director, is also a member

of the Committee.

Chris Weston

Attendance at each of meeting is set out on page 95

Focus in the reporting year

• Continued to monitor Injury Incidence Rate (IIR) and

oversee the IIR improvement strategy

• Continued to review the requirements of the

BuildingSafetyActandensureourprocessesmeet

thelegislationrequirements

• Strengthened support around mental wellbeing and

occupational health

• Using technological advances to keep people on our

sites safe

• Ensuring that we are robust in our approach to protecting

watercourses and preventing pollution

Priorities for FY25

• Continue to take action to improve our IIR

• Further enhance activities around mental wellbeing

andoccupationalhealth

• Keep under review the requirements of the Building

Safety Act and adapt accordingly

• Continue to review our impact on the environment

andhowwemitigateagainstthis

I am pleased to present this report which

sets out the work of the SHE Committee

throughoutthefinancialyear.

The health and safety of our workforce, customers and the

public, and the protection of the environment around our

developments, has always been and will continue to be of

paramount importance. We are therefore deeply saddened

by the tragic accidental death of a sub-contractor at one

of our sites in November 2023. We fully supported the

investigation by the Health and Safety Executive which

concluded that suitable safety arrangements were in place

and that no action was to be taken against the Company.

At the recent coroner’s inquest, the cause of death was

recorded as “Accidental”.

During the year, Lloyd’s Register Quality Assurance (LRQA)

completed recertification audits against the health, safety

and environmental international standards (ISO 45001

and ISO 14001). Following the audit LRQA recommended

our certification and noted that as an organisation

we demonstrated a highly effective health, safety and

environmental management system.

121Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Role and activities of the SHE Committee

Our activities continue to focus on the prevention and

mitigation of the key operational risks relating to health and

safety, and the protection of the environment. By receiving

reports and challenging those tasked with SHE performance

where necessary, we help the business to improve its

SHE standards. We support and oversee the direction

and implementation of SHE Policy and procedures which

encourage efficient working practices, and prevention of

injury and illness, and support our continuous improvement

strategy and ongoing sustainability of the Group.

We continue to work closely with the SHE Operations

Committee, which is responsible for the implementation

and oversight of the Group’s overall SHE improvement

strategy on a day-to-day basis.

After each Committee meeting, I report to the Board on the

matters discussed and make recommendations as appropriate.

Committee effectiveness

The Committee has a carefully planned agenda of items of

business to ensure that all key items are covered during the

year. I have an open, constructive and collaborative relationship

with management and attend SHE Operations Committee

meetings throughout the year to enhance my understanding

of the operational issues faced by the workforce, and to

discuss them, and ways to improve them, directly with those

responsible for day-to-day SHE management. During the year

IattendedtwoSHEOperationsCommitteemeetings.

The Board evaluation for FY24 included an appraisal of

the Committee’s performance. The appraisal concluded

that the Committee was performing well with an excellent

understanding of significant risk exposures relating to SHE

matters and excellent oversight of compliance with the SHE

management system. Driving continuous improvement and

remaining conscious of the changing operating environment

were identified as areas to focus on in FY25.

Further details of the appraisal process can be found on page 109

Safety, Health and Environment Committee Report continued

FY24 areas of focus

Injury and ill health prevention has remained a key area of

focus for the business throughout the year. Unfortunately,

despite the ongoing action plan for continuous improvement,

our Reportable Injury Incidence Rate (IIR) has increased this

year, and is 302 per 100,000 persons against 289 in FY23.

Our analysis indicates that the primary contributing factor

for injuries is slips trips and falls, which are often attributed

to inadequate housekeeping. During the year there has been

a continued campaign to ensure “good housekeeping” which

included awareness posters and briefings with specific

emphasis on SHE Managers monitoring on site. This will

becontinuedthroughoutFY25.

There has been an increased focus on SHE and required

standards by our Divisional Leadership teams and site

supervisors. We have also invited Groundworkers and

Scaffolding contractors to seminars, focusing on performance

updates and the standards that are expected from them on

our sites.

During FY24 near miss reporting has continued to improve,

which is encouraging. In FY23 there were 647 near misses

reported, and in FY24 this had increased to 1,480. This will

remain an area that we will continue to drive in FY25, as

learning about the potential for incidents will enable us to

evaluate where we can implement processes to prevent a

more serious event from occurring.

Recognising the importance of protecting the environment

that we are working in remains fundamental. In July 2022,

the Environment Agency (EA) visited our Ladden Garden

development and noted silt contamination in the brook

adjacent to the development. In March 2024 the EA

confirmed it had accepted our offer on an enforcement

undertaking for the breach. As a result, £20,150 has been

distributed to a number of local organisations that promote

improvements in watercourses or the local environment.

Following this incident we have conducted a full review of

our environmental controls on site and introduced a site

permit system to be in place for any dewatering activities.

Our teams have also been trialling silt trap products that

have shown to be more effective in preventing silt from

entering the site drainage systems.

Mental wellbeing and occupational health have been

keyfocusareasthroughouttheyearwiththeCommittee

updated on activities to strengthen support for colleagues

and sub-contractors in these areas. During the year the

Lighthouse Club, visited 55 of our sites and presented to

over 1,700 colleagues to raise awareness of the charitable

support services available to those in the construction industry.

One of the most significant risks on our sites is managing

people and plant interfaces, as we recognise any failures

have the potential for a serious injury. This year we have

been working with both of our telehandler providers to

trial artificial intelligence (AI) technology to highlight to

the driver and pedestrian if they are too close to a moving

vehicle. The trials have been very successful and since

January 2024, all new machines have this technology

as standard.

Personal protective equipment (PPE) is essential for keeping

people safe. However, the effectiveness of PPE is reliant on

how well it fits the individual. In June 2024, we launched

our new PPE catalogue. Amongst the new range we now

have dedicated female PPE (including maternity wear),

awiderrangeoffootwearsizesandmodestytunicsthat

enable colleagues to adhere to religious beliefs, and mental

health first aiders (MHFA) can now be identified easily on

site as they can have helmets with the MHFA logo.

During FY24 the Committee has reviewed the requirements

of the new Building Safety Act. We have enhanced our existing

processes and are continuing to work on responding to

secondary legislation.

We have also made improvements to our offsite Group

induction process, linking this to checking competency

cards and site signing in. It is important to us that we

ensure that persons working on our site are trained and

competent and understand the risks that are present

on our developments. We also recognise the potential of

modern slavery so in FY24 we ran a campaign highlighting

workers’ rights and how to raise concerns should someone

see something they are unsure about.

I would like to thank the SHE team, our employees and

sub-contractors for the great work that they undertake

each day to keep our people safe.

This report forms part of the Corporate Governance Report

and is signed on behalf of the SHE Committee by:

Chris Weston

Chair of the SHE Committee

3 September 2024

122 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Remuneration Report

Annual Statement from the Chair of the Remuneration Committee

Focus in the reporting year

• FY23 annual bonus and 2020 LTPP vesting outcomes

• 2023 LTPP structure, performance conditions, weightings

and targets

• FY24 bonus targets and FY25 bonus structure and quantum

• Remuneration implications of the Combination

Priorities for FY25

• Consider adjustments to in-flight performance conditions

and targets to reflect the Combination

• Consider if changes are required to the Remuneration

Policy in light of the Combination

• Monitor Executive Directors’ and senior management’s

performance against targets, including synergy delivery

Remuneration Policy

The current Directors’ Remuneration Policy was approved at

the Annual General Meeting in October 2023 with over 97%

of shareholders voting in favour. In developing the Policy we

considered a range of factors, including the Group’s purpose

and strategic objectives, wider workforce remuneration

arrangements and the views of our largest shareholders

(with whom we consulted).

FY24 performance and reward

The business has continued to deliver a strong operational

performance throughout the year. In particular, we achieved

14,004 total home completions (FY23: 17,206), whilst navigating

a continuing challenging macroeconomic backdrop and

political uncertainty.

The outcome for the FY24 annual bonus scheme was 89.9%

of maximum. The 2021 LTPP award will vest at 15%. Further

details can be found on pages 138 and 139. We carefully

considered the incentive outcomes within the context of

the underlying performance of the business. We ultimately

decided that the outcomes were reflective of business

performance. As a result, we have not used any discretion

to determine these outcomes and have not adjusted any

performance targets during the year.

Our approach

toremuneration

Katie Bickerstaffe

Chair of the Remuneration Committee

Chris Weston

Caroline

Silver

Jasi Halai

Jock Lennox

Quick facts

• Determines and agrees the policy for executive

and senior management remuneration and ensures

it takes account of the Group’s risk appetite and

aligns to its long-term goals

• Ensures remuneration is appropriate, enhances

personal performance and rewards individual

contributions towards the success of the Group

• Designs and determines measures and targets for

variable pay and approves payouts

• Determines policy and scope of pension arrangements,

share ownership and share retention policies,

termination payments and compensation commitments

Committee members

Nigel Webb

Katie

Bickerstaffe

Members biographies and

qualifications are set out on

pages89 to 92

See page 95 for Committee

meeting attendance

Statement from the Chair of

theRemuneration Committee

I am pleased to present my report as Chair

of the Committee and provide an overview

of both Executive Directors and wider

workforceremunerationforthefinancial

year ended 30 June 2024 and how our

Policy will be applied in FY25.

123Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Statement from the Chair of

theRemuneration Committee

continued

FY24 performance and reward continued

2023 LTPP

In August 2023, we approved the structure, performance

conditions and weightings for the 2023 LTPP and agreed

the targets for the TSR and GHG emissions reduction

performance conditions. However, given the prevailing

market conditions at the time, we deferred setting the

financial targets relating to the EPS and ROCE performance

conditions and therefore deferred the grant of awards until

later in the year. Market uncertainty continued throughout

the year and in December 2023 we still did not consider it

feasible to set realistic challenging but achievable financial

targets for FY26. However, given that it would be considered

highly unusual to further delay the LTPP, we agreed to grant

the awards and determine the financial performance targets

at a later date. The targets for Absolute Adjusted EPS and

Underlying ROCE were agreed in June 2024 and can be

found on page 140 and on our website:

www.barrattdevelopments.co.uk/investors/corporate-governance

FY25 remuneration

FY25 salary and fees

In light of the timing of the proposed Barratt Redrow combination

(Combination), we have delayed conducting a benchmarking

exercise until we are able to do so for the enlarged Group.

For FY25 we have therefore decided to increase Executive

Directors' salaries by 3% in line with the increase for

the wider workforce. We believe that this increase is

justified given the continued strength of our operational

performance and the ongoing competitive landscape we

face across the sector.

In addition, the Committee agreed a 3% increase in the

basefeefortheChair.

During the year, a committee of the Board comprising the Chair

and the Executive Directors reviewed the Non-Executive

Directors’ fees and agreed to increase the base fee by 3%

for FY25. Fees for members and Chairs of Committees

remain unchanged.

FY25 annual bonus and 2024 LTPP

The performance measures for the FY25 annual bonus scheme

are set out on pages 133 and 134 together with the rationale for

selecting them. The key changes are the amended weightings

of the quality and service measure and the expansion of

the diversity and inclusion measure. We consider the actual

targets to be commercially sensitive and will therefore disclose

them with details of performance against them in the FY25

Remuneration Report, in line with market practice.

The 2024 LTPP will be awarded to all eligible participants,

including the Executive Directors, later this year. Within our

Remuneration Policy, the Committee can make awards of

up to 200% of salary to Executive Directors. The Committee

continues to believe that TSR, Absolute Adjusted EPS,

Underlying ROCE and GHG emissions reduction remain the

most appropriate measures to align the Group’s performance

with our strategy and the interests of stakeholders. Whilst

we have considered standalone financial targets for the 2024

LTPP, we are mindful that targets for our in-flight LTPP awards

may need to be adjusted post completion of the Combination.

It is our intention therefore that, once we have finalised a

three-year plan for the Combined Group, we will share these

targets (hopefully in the second quarter of 2025) but for the

moment have decided not to disclose these in this report.

Employees and remuneration

In setting our policy and agreeing outcomes for Executive

Directors, we are mindful of the pay arrangements of the

wider workforce.

The Group’s approach to colleague remuneration aims to

promote the long-term sustainable success of the Company

and attract, retain and motivate employees to support the

achievement of the Group’s strategic key objectives. Our

reward package is known within the housebuilding sector for

being market leading, including private medical insurance for

all employees and the FY23 salary supplement. Our annual

salary review, which was effective from 1 July, saw a 3%

increase across our wider workforce.

We continue to seek the views of our Workforce Forum

on our approach to pay. Further details on the Workforce

Forum and the matters it discussed during FY24 can be

found on pages 50 and 51.

We also continue to make an annual share award to

colleagues below senior management via the Employee

Long Term Incentive Plan (ELTIP) to recognise their

dedication, commitment and loyalty. During the year we

approved changes to the ELTIP rules and recommended

that dividend equivalents be applied to the 2024 award.

Redrow combination

During the financial year we spent considerable time

discussing the impact of the Combination on the Group’s

remuneration arrangements.

As part of these discussions we also agreed the impact

of the Combination on Redrow share awards and options,

including how this would affect Matthew Pratt, to whom

the Company’s Remuneration Policy will apply when he

joins the Combined Board. Following this review we agreed

that the remuneration package for Matthew would remain

the same as his Redrow package except that he would be

eligible to participate in the LTPP at a level of up to 200%

of salary in line with the incumbent Executive Directors

(instead of up to 150% of salary under his remuneration

arrangements at Redrow). As set out in the Co-operation

Agreement in respect of the Combination and in line with

other participants in the Redrow long-term incentive plan,

Matthew will be granted a “Transition Award” of equivalent

value to the portion of his 2023 Redrow long-term, incentive

plan award which lapsed as a result of completion of

theCombination.FulldetailsofMatthew'sshareawards

willbeincludedinnextyear'sRemunerationReport.

Conclusion

Throughout the year, the Remuneration Policy operated as

intended in terms of Company performance and quantum,

and in line with the Code.

The Committee believes that the decisions it has taken in

respect of FY24 pay outcomes and its proposed approach

to remuneration for FY25 are in the best interests of its

shareholders, align with the Group’s strategy, reflect the

wider business and economic environment and are fair,

reasonable and appropriate. I therefore hope that you

willsupportthisreportattheAGMinOctober2024.

On behalf of the Committee and the Board, I would

like to thank you for your continued support of our

remunerationframework.

Katie Bickerstaffe

Chair of the Remuneration Committee

3 September 2024

Remuneration Report continued

Annual Statement from the Chair of the Remuneration Committee continued

124 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

The overview below outlines the remuneration outcomes for Executive Directors for FY24,

together with the minimum, on-target and maximum (with and without share price growth)

opportunities for FY25, the FY24 targets set for variable remuneration and our performance

against them, and the alignment of our FY24 incentive performance measures with strategy.

Full details can be found in the Annual Report on Remuneration on pages 132 to 145

Details of Executive Directors’ shareholding requirements and

whether they have been met are given in the table on page 141

Executive Directors’ Remuneration Policy scenarios for FY25 and FY24 single figure outcomes

Notes:

• Minimum pay is fixed pay only (i.e. salary + benefits + pension).

• On-target pay includes fixed pay, 50% of the maximum bonus (equal to 75% of salary)

and50%vestingoftheLTPPawards(withgrantlevelsof200%ofsalary).

• Maximum pay includes fixed pay and assumes 100% vesting of both the annual bonus

andtheLTPPawards.

• Maximum pay plus 50% share price growth is the same as maximum pay for fixed pay

and annual bonus but assumes a 50% increase in the share price over the performance

period for the LTPP.

• Matthew Pratt has been omitted from the scenarios above as he is not yet been

appointed a Director of the Company.

• All amounts have been rounded to the nearest £1,000. Salary levels (which are the base

on which other elements of the package are calculated) are based on those applying at

1July2024.Thevalueoftaxablebenefitsisthecostofprovidingthosebenefitsinthe

year ended 30 June 2024. The Executive Directors are also permitted to participate in

HMRC tax advantaged all-employee share plans, on the same terms as other eligible

employees, but they have been excluded from the above graph for simplicity. The LTPP

awards allow participants to receive dividend equivalents but these are excluded from

the scenario chart, other than for the single figure bar.

100%

39%

26%

32%

50%

27%

32% 27%

50%

32% 27%

50%

35%

34%

43%

53%

44%

53%

43%

53%

39%

40%

25%

24%

25%

20%

41%

43%

Minimum On-target Maximum Maximum

plus 50%

share price

growth

Singlefigure

FY24

Minimum On-target Maximum Maximum

plus 50%

share price

growth

Singlefigure

FY24

Minimum On-target Maximum Maximum

plus 50%

share price

growth

Singlefigure

FY24

(£)

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

(£)

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

(£)

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

Fixed pay Other Annual bonus LTIP

Chief Executive ChiefOperatingOfficer&DeputyChiefExecutive ChiefFinancialOfficer

976

2,482

3,989

4,850

2,268

1,824

1,384

778

1,993

3,207

3,901

606

1,534

2,461

2,991

Remuneration overview

Remuneration Report continued

125Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

FY24 performance pay outcomes

Annual bonus outcome

Further details are set out on page 137 in the Annual Report on Remuneration.

Target Threshold Target Maximum Weighting

Outcomeachieved

Adjusted profit before tax

£275m £350m £400m 82.5% 70.1 %

Actual £385.0m

Capital employed

£1,923m £1,923m £1,890m 15.0% 15.0%

Actual £1,805.3m

Quality and service

(withhealth and

safetyunderpin)

(i) The number of divisions achieving minimum 94% SHE audit monitoring inspections gate on a rolling 12 months’

performance basis; (ii) for 67% of this element, the number of divisions achieving minimum 90% for the HBF eight-week

National New Homes Customer Satisfaction Survey; and (iii) for the remaining 33% of this element, the number of divisions

achieving minimum 82% for NHBC nine-month Customer Satisfaction Survey.

22.5% 19.7%

Divisions achieving 94% SHE audit monitoring gate: 29/29

Divisions achieving 90% eight-week score: 28/29

Divisions achieving 82% nine-month score: 20/29

Reduction of total waste

generated (waste intensity)

4.31 tonnes 4.22 tonnes 4.15 tonnes 15.0% 15.0%

Actual 3.83 tonnes per 100m

of housebuild equivalent area

Diverse (gender and

ethnicity) appointments

32% 34% 36% 15.0% 15.0%

Actual 54%

1 % of salary.

2 The outcome is based on the proportion of divisions that meet all three performance criteria.

LTPP vesting outcome

Further details, including the share price used to calculate the estimated value, any value of share price increases and the value of dividend equivalents, are set out in Table 10 on page

139 of the Annual Report on Remuneration.

2021 LTPP

awarded

Number

Percentage of award vesting

vesting

Number

Estimated

value

£000

EPS ROCE TSR

Reduction

of GHG

emissions Total

David Thomas 224,370 0% 0% 0% 15% 15% 33,655 162

Steven Boyes 180,987 0% 0% 0% 15% 15% 27,148 131

Mike Scott 117,716

0% 0% 0% 15% 15% 17,657 85

1 Based on a share price of £4.81, being the average share price during the three months to 30 June 2024. There was no share price appreciation from the date the shares were awarded.

2 The number of shares over which the award has been granted has been calculated based on 200% of the participant’s salary as at the date of appointment, being £480,000 per annum. In accordance with the participant’s final offer letter dated 24 June 2021, the number of shares subject to the

award has been pro-rated to reflect the length of the performance period commencing from the date of appointment.

Remuneration Report continued

Remuneration overview continued

126 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Alignment of FY24 incentive performance measures

withourstrategy and values

Annual bonus

Performance

measure (weighting

as%ofsalary)

Reason performance

target selected

Alignment with strategic

objectives Alignment with values

Adjusted PBT

82.5%

Rewards performance

against stretching

targets and is a

key measure of our

performance.

• Driving revenue

• Controlling build

activity and

managing our costs

• Maintaining our

highly selective

approach to

land buying

• We make it happen

• We do it right

Capital employed

15.0%

Ensures efficient use

of available capital.

• We make it happen

• We do it together

• We do it right

Quality and

service (with

a health and

safety underpin)

22.5%

Ensures a focus on

quality and service

to our customers

without compromising

the health and safety

of our employees,

customers, suppliers,

sub-contractors

and members of

the public.

• Leading the

industry around

customer service,

build quality, social

responsibility and

sustainability

• We do it for

our customers

• We do it right

Reduction

of waste

15.0%

Focuses individuals on

reducing the amount

of construction waste

intensity, which is

a key element of

our overall carbon

reduction and

sustainability strategy.

• We do it right

• We make it happen

Diversity

and inclusion

15.0%

Focuses individuals on

ensuring that, as part

of any recruitment

process, they identify a

short list of candidates

which will help further

improve diversity

within the business.

• We do it together

• We do it right

LTPP

Performance

measure (weighting

as % of total award)

Reason performance

target selected

Alignment with strategic

objectives Alignment with values

ROCE

40.0%

Key performance

indicator measuring

profitability and

efficiency in using

capital.

• Driving revenue

• Controlling build

activity and

managing our costs

• Maintaining our

highly selective

approach to

land buying

• We make it happen

• We do it together

• We do it right

Adjusted

Absolute EPS

15.0%

A key performance

measure to

track underlying

operational

performance

overtime.

• We do it right

• We make it happen

TSR

30.0%

A key measure of

value created for

our shareholders.

• We make it happen

• We do it right

Sustainability

15.0%

Supports our focus

on leading the

industry in terms

of sustainability.

• Leading the

industry around

customer service,

build quality, social

responsibility and

sustainability

• We do it right

• We do it for

our customers

Remuneration Report continued

Remuneration overview continued

127Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Our remuneration strategy

It is the motivation and engagement of our employees which

makes our business operationally strong. It is therefore

imperative that our remuneration strategy appropriately

rewards our employees for their performance against

the Group’s key performance indicators, whilst delivering

sustainable shareholder value.

In developing our Policy we pay due regard to:

• the Group’s purpose and strategic priorities, and ensuring

that targets support the achievement of these;

• the performance, roles and responsibilities of each

Executive Director and members of senior management;

• arrangements that apply across the wider workforce, including

average base salary increases and pension contributions;

• information and surveys from internal and independent

sources; and

• the economic environment and underlying financial

performance of the Group.

The aims of our Policy and the action taken during the year to achieve these are set out in the table below:

Aims of our Remuneration Policy Implementation Progress during the year

Promote the long-term sustainable

success of the Company and be fully

aligned with the performance and

strategic objectives of the Group.

We set bonus and LTPP targets that align

with performance and strategic objectives

topromotethelong-termsustainable

success of the Company.

See page 127

Attract, retain, motivate and competitively

reward Executive Directors and senior

management with the requisite

experience, skills and ability to support

the achievement of the Group’s key

strategic objectives in any financial year.

We undertake regular benchmarking

exercisestoensureourremuneration

package is competitive and set appropriately

stretching targets to maintain motivation.

See page 124

Take account of pay and employment

conditions of employees across the

Group whilst reflecting the interests

andexpectations of shareholders and

other stakeholders.

We annually consider pay and performance

conditions of the wider workforce and look

to obtain feedback on our remuneration

to ensure it reflects the interests of our

shareholders and other key stakeholders.

See pages 130 and 131

Reward the delivery of profit and the

achievement of the return on capital

employed target, whilst ensuring

that Executive Directors and senior

management adopt a level of risk which

isin line with the risk profile of the

business as approved by the Board.

We ensure that the Company’s variable

remuneration rewards the successful

implementation of strategy through the

alignment of performance targets with

strategic KPIs and the Company’s risk profile.

See pages 12 to 15

Ensure that there is no reward for

failure and that termination payments

(if any) are limited to those that the

Executive Director (or member of senior

management) is legally entitled to.

We apply a performance underpin to

theannualbonusoutcome.Wealsohave

discretion to override formulaic outcomes

on the annual bonus and LTPP to ensure

that remuneration is in line with Company

and individual performance and that poor

performance is not rewarded.

Malus and clawback provisions also apply

to annual bonus payments and to any share

awards under the LTPP, DBP and ELTIP.

See page 129

Remuneration Report continued

Remuneration Policy

128 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Policy

The Company’s current Directors’ Remuneration Policy (the

“Policy”), was approved by shareholders at the 2023 AGM.

ThefullversionofthePolicycanbefoundonpages142to154

of the 2023 Annual Report and Accounts, which is available

on our website at www.barrattdevelopments.co.uk/investors.

AdescriptionofhowtheCompanyimplementedthePolicyin

FY24 can be found on pages 136 to 145 and details of how the

Policy will be applied for FY25 are set out on pages 133 to 135.

Committee discretion

If an event occurs which results in the annual bonus plan

or LTPP performance conditions and/or targets being

deemed no longer appropriate (e.g. a material acquisition,

divestment or wider market or economic circumstances

that the Committee deem relevant), then the Committee

has the ability to adjust appropriately the measures and/or

targets, and/or to alter the weighting of the measures.

The Committee also has the discretion to increase or decrease

any annual bonus or LTPP awards (potentially reducing them

to nil) in the event that the formulaic outcome is not reflective

of overall Company performance or aligned with the underlying

financial and/or non-financial performance of the Group, or

where environmental incidents, health and safety incidents

or other wider economic or market circumstances warrant

an adjustment to the final outcome in order to determine

a reasonable and appropriate result. The Committee also

retains discretion to adjust LTPP vesting outcomes to avoid

windfall gains in the event the share price has fallen materially

before a given award is made.

The Committee did not exercise its discretion in FY24.

The Committee is mindful that it may need to exercise

discretion to adjust targets for our in-flight LTPP awards

post completion of the Combination with Redrow.

Malus and clawback

Malus and clawback is applicable to any annual bonus paid

or deferred for a period of three years beginning on the

date of the award and to any share awards granted under

the LTPP for a period of five years beginning on the date

oftheaward.

The mechanism applies in certain circumstances set

out in the rules of the relevant plans, including material

misstatement in the Group’s accounts, error, misconduct,

material failure of risk management, reputational damage

and corporate failure.

Full details of the circumstances under which malus and clawback apply can be found in the full

Remuneration Policy set out in the FY23 Annual report and accounts on the Company’s website.

Change of Control

The rules of each share scheme operated by the Company contain provisions relating to a change of control. In the event

that a change of control does occur any unvested options or awards will become vested on the date of the relevant event.

However, the number of options or awards that vest will be prorated depending on the number of weeks completed within

the relevant performance period and the level of performance conditions achieved during that period. The Committee has

discretion to assess the performance outcome in respect of unvested awards and determine the extent to which unvested

awards may vest. Options or awards which have already vested as at the date of the relevant event may still be exercised

within the prescribed time scales set out in the rules.

How the Committee has addressed the requirements of the Code in determining

Directors' Remuneration Policy and practices

Code requirement

Clarity – remuneration arrangements

should be transparent and promote

effectiveengagementwithshareholders

and the workforce.

The main terms applying to variable remuneration for any year is set out clearly in the prior year’s

Annual Report, together with performance targets (unless they are deemed to be commercially

sensitive). Outcomes are aligned with strategic objectives using appropriate performance targets,

which align with shareholder interests and the Group’s strategy and provide for the long-term

success of the Company, in the interests of the workforce and other stakeholders.

Simplicity – remuneration structures

should avoid complexity and their

rationale and operation should be easy

to understand.

The Company operates a UK market standard approach to remuneration which is familiar to

stakeholders. Performance targets are readily understandable and published as part of the

year-end results.

Risk – remuneration arrangements

should ensure reputational and other

risks from excessive rewards, and

behavioural risks that can arise from

target-based incentive plans, are

identifiedandmitigated.

The Committee has discretion to ensure that variable pay outcomes are in line with Company and

individual performance. Share awards are subject to post-vesting holding periods, and malus and

clawback as set out on page 129.

InlinewiththeIA’sGuidelinesonResponsibleInvestmentDisclosure,theCommitteeissatisfied

that the incentive structure and targets for Executive Directors do not raise any ESG risks by

inadvertently motivating irresponsible or reckless behaviour.

The Committee considers that no element of the remuneration package will encourage inappropriate

risk taking within the Company.

Predictability – the range of possible

values of rewards to individual directors

and any other limits or discretions

shouldbeidentifiedandexplainedat

the time of approving the policy.

Minimum, on-target and maximum outcomes for Directors are shown annually in this report. Limits

and discretions for each type of reward are explained in the Policy table which can be found on

pages 142 to 147 of the 2023 Annual Report.

Proportionality – the link between

individual awards, the delivery of

strategy and the long-term performance

of the company should be clear. Outcomes

should not reward poor performance.

The Company’s incentive plans reward the successful implementation of strategy through the

alignment of performance targets with strategic KPIs. The performance underpin which applies

to the annual bonus ensures that poor performance is not rewarded. The Committee also has

discretion to override formulaic outcomes.

Alignment with culture – incentive

schemes should drive behaviours

consistent with company purpose,

values and strategy.

Our remuneration strategy ensures that performance targets do not encourage inappropriate

behaviours. The targets that are selected help align the interests of the workforce with those

oftheCompany’spurpose,valuesandstrategyasillustratedonpage127.

Remuneration Report continued

Directors’ Remuneration Policy

129Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Statement of consideration of pay and employment conditions

elsewhere across the Group

The level for all employees’ salaries is determined with reference to the rate of inflation,

salaries for similar positions throughout the industry and general themes and trends in

respect of remunerating employees. In determining the Policy for Executive Directors’

remuneration, and in determining the annual increase in base salary, the Committee takes

into consideration the pay and employment conditions of all employees across the Group.

While the Company did not explicitly consult with employees when drawing up the Policy,

the Workforce Forum discussed remuneration strategy, including executive reward strategy,

and was asked to provide feedback to management.

The Company also operates a Sharesave scheme and makes conditional awards of

shares to all eligible employees. This enables our employees to become shareholders

in the Company, and to comment on the Group’s Policy in the same way as our other

shareholders. During the year 1,767 employees signed up to the 2024 sharesave scheme

andconditionalawardsweremadeto7,732employeesundertheELTIPandLTPP.

To build the Committee’s understanding of reward arrangements applicable to the wider

workforce, it is provided with data on the remuneration structure for senior management

levels below the Executive Directors and the wider workforce, as well as benchmarking

information. In addition, the Group provides several ways in which employees can ask

questions and give feedback on such matters should they so wish. This includes the Employee

Communications mailbox, personal development reviews, the Workforce Forum, a dedicated

Workforce Forum email address and an email address for employees to directly contact the

Designated Non-Executive Director for Workforce Engagement.

During the year the Workforce Forum sought clarification on the application of the D&I

performance condition for the annual bonus, noting that the Redrow Combination removed

an element of hiring discretion from managers. The concern was noted, and Sally Austin,

the Group HR Director, provided assurance that targets would be reasonable and realistic

based on the level of recruitment expected in the next 12 months. Other feedback

from colleagues in relation to remuneration included requests for greater clarity and

transparency around bonus payments and better promotion of the benefits available to

colleagues. See pages 50 and 51 for actions implemented in response to these requests.

The Committee reviews the feedback from colleagues, which provides further context in

relation to pay and conditions throughout the organisation.

Differences between the remuneration for Executive Directors

andthe wider workforce

The table on page 131 sets out the differences that exist between the Company’s Policy

for the remuneration of Executive Directors and its approach to the payment of the

wider workforce generally. In general, these differences arise from the development of

remuneration arrangements that are market competitive for the various categories of

individuals. They also reflect the greater emphasis placed on performance-related pay

forExecutiveDirectors.

Consideration of stakeholders views

Local

communities and

the environment

• Compensation outcomes under the annual bonus and LTPP

consider performance against the reduction of waste and

greenhouse gas emissions, and diversity and inclusion measures.

Sub-contractors

and suppliers

• Compensation outcomes under the annual bonus include a

healthandsafetyunderpin.

Customers

• Compensation outcomes under the annual bonus consider

performance against quality and service measures.

Employees

• Consistent remuneration principles apply to executives and

employees including consistent benefit and pension provisions.

• The Company operates a Sharesave scheme and makes conditional

awards of shares to all eligible employees. This enables all

employees to become shareholders in the Company.

• Compensation outcomes under the annual bonus include

ahealthandsafetyunderpin.

Regulators

• Compensation decisions take into account compliance

andconductconsiderations.

• Pay structures are aligned to regulatory best practice.

Shareholders

• Compensation outcomes reflect key financial and

non-financialperformance.

• An appropriate portion of remuneration is paid in shares

togetherwithamandatedshareholdingrequirementtoalign

interest with shareholders.

Remuneration Report continued

Directors’ Remuneration Policy continued

130 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Differences between the remuneration for Executive Directors and the wider workforce continued

Component of

remuneration Wider workforce Executive Directors

Salary Base salary of Executive Committee members is determined by the

Committee. Salary for other colleagues is determined by management.

Base salary is determined by the Committee.

Bonus A lower level of maximum annual bonus opportunity may apply to

employees other than the Executive Directors.

All colleagues, including Executive Directors, are subject to similar

performance targets; however, the weightings against the various

targets may vary.

Total bonus achievable as a % of salary: 150%

All colleagues, including Executive Directors, are subject to similar performance targets;

however, the weightings against the various targets may vary.

Benefits All colleagues are eligible for similar benefits, including private medical

insurance, as the Executive Directors though levels may vary.

All colleagues are eligible for similar benefits, including private medical insurance,

astheExecutiveDirectorsthoughlevelsmayvary.

Pension All colleagues who, under the rules of auto-enrolment are eligible, are auto

enrolled into a workplace pension. Colleagues can opt out of the workplace

pension and can elect to participate in the company’s pensions scheme.

Executive Directors are enrolled into a workplace pension. If Executive Directors choose

to opt out of the workplace pension they can elect to participate in the Company’s money

purchase pension plan or receive a salary supplement in line with the wider workforce

(currently 10%).

Deferred

Bonus

One-third of any bonus earned by members of Senior Management will be

deferred into shares for a period of three years and is normally subject to

continued employment.

One third of any bonus earned is deferred into shares for a period of three years

andisnormallysubjecttoacontinuedemploymentcondition.

LTPP A number of select employees at Senior Management level may also be

invited to participate in the LTPP at the Committee’s discretion. Awards are

subject to the achievement of stretching performance conditions measured

over three financial years.

Senior Managers and Executive Directors, are subject to similar performance

targets; however, the weightings against the various targets may vary.

Awards include the right to receive dividend equivalents.

Executive Directors are granted awards at the discretion of the Committee. Awards are

subject to the achievement of stretching performance conditions measured over three

financial years with a subsequent two year holding period.

Senior Managers and Executive Directors, are subject to similar performance targets;

however, the weightings against the various targets may vary.

Awards include the right to receive dividend equivalents.

ELTIP Over the last several years, employees below Senior Management have been

awarded a smaller number of shares under the ELTIP.

To align with the LTPP, awards accrue dividend equivalents in cash or shares.

This award is not available to Executive Directors.

Sharesave Colleagues can save up to £500 per month for a three or five year

savings period.

Executive Directors can save up to £500 per month for a three or five year savings period.

Statement of consideration ofshareholderviews

Each year we update our major shareholders on the Committee’s application of the Policy

and our performance in advance of the publication of our Annual Report and Accounts. The

Committee considers shareholder feedback received from this exercise and any additional

feedback received during any meetings from time to time, as part of the Company’s annual

review of the Policy. In addition, the Committee will seek to engage directly with major

shareholders and their representative bodies ahead of any material changes being proposed

to the Policy.

Remuneration Report continued

Directors’ Remuneration Policy continued

131Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

In this section, we provide an overview of the Committee and its advisers, as well as

how the Policy was applied in FY24 and how it will be applied in FY25, together with the

resulting payments to Directors. The Annual Report on Remuneration will be subject to an

advisory vote at the 2024 AGM.

Membership and attendance at Committee meetings

Membership of the Committee comprises of all the Independent Non-Executive Directors

and the Chair of the Board, and attendance at meetings during the year is set out on

page 95. The Committee is chaired by Katie Bickerstaffe. The Executive Directors are not

members of the Committee and no Director or senior manager is present at any Committee

meeting when their own remuneration is being considered.

Advisers to the Remuneration Committee

In carrying out its principal responsibilities, the Committee has the authority to obtain the

advice of external independent remuneration consultants and is solely responsible for their

appointment, retention and termination. In line with best practice, the Committee assesses

annually whether the appointment remains appropriate or if it should be put out to tender.

The last such tender took place in 2017, resulting in PwC being appointed as the advisers

to the Committee with effect from 1 January 2018. PwC is a signatory to the Remuneration

Consultants Group’s Code of Conduct.

In November 2023, PwC temporarily stood down as the Committee’s adviser to avoid a

conflict of interest given the advice and support it was asked to provide for the Combination.

During the period from July 2023 to November 2023, PwC provided advice to management

and the Chair of the Committee on Restricted Stock Awards, the FY23 Remuneration Report,

the 2023 Policy and market trends in remuneration and corporate governance changes. The

fees payable to PwC are based on an annual fixed fee for a specified service with anything

outside this scope being charged on a time and disbursement basis. PwC’s fees for services

provided to the Committee during the year under review were £37,250 (FY23: £189,567).

In addition to remuneration advice, PwC also provides taxation, consultancy, corporate

finance and internal audit services to the Group. PwC is a former independent adviser to

the Sustainability Committee and our Business Safety Unit and continues to assist our

Business Safety Unit with project management matters. PwC has no current connections

with the Company (save as described in this section) nor with any individual Director.

Linklaters LLP was appointed as the Company’s advisers for the Combination and as part

of their remit were asked to advise the Committee on the impact of the Combination on

Barratt and Redrow share schemes and other incentives and remuneration disclosures.

The fees paid to Linklaters LLP for their services to the Committee during the period under

review were £26,226.

Due to PwC’s conflict noted above, the Committee sought the services of an alternative

adviser to support with market data on integration incentives and setting targets for

the 2023 and 2024 awards. Following consideration of various options, Korn Ferry was

appointed on the recommendation of the Group HR Director who had worked with them

previously. Korn Ferry’s fees for services provided during FY24 were £21,607.

The Committee also receives input into its decision making from the Chief Executive, the

Company Secretary and the Group HR Director, none of whom were present at any time

when their own remuneration was being considered.

Role and main activities undertaken by the Committee during

thefinancial year

The Committee’s role is to determine and agree the Policy for Executive Directors

and senior management whilst considering the remuneration of the wider workforce.

It follows an annual work programme which was fully completed during the year.

The Committee’s responsibilities, as delegated by the Board, are formally set

out in its written Terms of Reference, which are available from our website at

www.barrattdevelopments.co.uk/investors/corporate-governance.

Details of the annual evaluation of the Committee’s performance can be found on page 111

and key activities undertaken in the year are set out in the table below:

Priorities Work carried out and outcomes

Executive

Directors’

remuneration

• Considered salaries of Executive Directors and senior management

forFY25inthecontextoftheremunerationofthewiderworkforce.

Theoutcomeofthisreviewissetoutonpage133.

• Considered and agreed FY23 annual bonus and 2020 LTPP vesting outcomes.

• Considered and agreed the structure, performance conditions, weightings

and targets for the 2023 LTPP (see page 139 for further details).

• Considered and agreed the structure and performance measures of

thebonusschemeforFY24(seepage137formoredetails).

• Considered the structure of the 2024 LTPP and determined it

remainedappropriate.

• Considered the effect of the Co-operation Agreement on Redrow share

awards and options and how this would apply to Matthew Pratt on

joining the Board as an Executive Director.

• Discussed future performance measures and targets for both the annual

bonus and LTPP plans.

• Considered the impact of the Combination on the operation of Barratt

share plans.

Governance • Agreed a 3% increase in fees for the Chair in line with the increase for

the wider workforce and the Executive Directors.

• Discussed and approved publication of the 2023 gender and ethnicity

pay gap reports.

Annual Report on Remuneration

Remuneration Report continued

132 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Statement of implementation of the

Remuneration Policy for FY25

Executive Directors’ remuneration for FY25 will be based

on the Policy approved by shareholders at the October

2023 AGM. The Policy is set out on pages 142 to 154 of the

2023 Annual Report and Accounts which is available on our

website at www.barrattdevelopments.co.uk/investors/results

-reports-and-presentations/rp-2023.

Base salary

The Committee reviewed the salaries of the Executive

Directors in June 2024, considering their individual and the

Company's performance during the year, the annual salary

review for other employees in the Group where average

salary increases were at 3%, and the multiplier effect of an

increase in base salary on the Directors’ package.

Accordingly, the Committee believed that it was justified in

awarding a salary increase of 3% for each of the Executive

Directors, which is in line with the increase for the wider

workforce. The Executive Directors’ salaries with effect

from 1 July 2024 will therefore be:

Table 1 – Executive Directors’ salaries

Executive Director

Salary with effect

from 1 July 2024

£000

Salary with effect

from 1 July 2023

£000

David Thomas 861 836

Steven Boyes 694 674

Mike Scott 530 514

1 Rounded to the nearest £000.

Pension

Each of the Executive Directors will continue to receive a

pension contribution (or cash supplement) which is in line

with the wider workforce, currently 10% of base salary.

Annual bonus

Executive Directors and senior management will participate

in the Group’s annual bonus scheme in accordance with

the Policy.

The Committee is of the view that the individual annual

bonus performance targets are commercially sensitive.

Therefore, in line with market practice, these will be

disclosed,withperformanceagainstthem,innextyear’s

Remuneration Report.

Remuneration Report continued

Annual Report on Remuneration continued

The performance measures, their reasons for selection and the maximum bonus payment that can be earned against each

of them expressed as a percentage of salary for FY25 will be:

Table 2 - FY25 annual bonus performance measures

Bonus measure Definition Reason for selecting

Weighting

(% of salary

maximum)

Financial performance measures

Adjusted Profit

before tax - Group

Adjusted operating profit less all finance costs/

income and the Group’s share of the profits from

its joint ventures. Where relevant, exceptional items

are not included in adjusted profit before tax. The

Remuneration Committee has the discretion to amend

adjusted profit before tax should it be deemed necessary.

Rewards outperformance

against stretching targets

and is a key measure of our

performance.

82.5

Average Work

in Progress

Site work in progress and part exchange stock

calculated over a three-point average which will be

June 2024, December 2024 and June 2025.

Ensures efficient use of

available capital.

15.0

Non-financial performance measures

Quality and service

(with a health and

safety underpin)

To qualify for this element of the bonus, Divisions must

achieve or exceed a SHE monitoring inspections gate

of 94% on a rolling 12 months’ performance basis and

then achieve or exceed their customer service targets.

A three-stage assessment will be applied to each

Division. The criteria for achievement of this element

will be as follows:

• Initially, the Division needs to achieve a SHE

monitoring inspections gate of 94% on a rolling 12

months’ performance basis. If this score is achieved,

then the Division will be considered for the customer

service assessment.

• The Division needs to achieve a minimum score

of 90% for the HBF 8-week National New Homes

Customer Satisfaction survey (60% weighting).

• If 90% for 8 weeks is achieved, the Division needs

to achieve a minimum score of 83% for the NHBC

9-month Customer Satisfaction survey (40%

weighting). This will be reviewed and amended

annually to continually improve our performance.

8-week and 9-month ‘Recommend’ performance will

be measured on all valid surveys received during the

financial year – 1st July to 30th June.

Ensures a focus on quality

and service to our customers

without compromising the

health and safety of our

employees, customers,

suppliers, sub-contractors

and members of the public.

22.5

133Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Statement of implementation of the Remuneration Policy for FY25 continued

Annual bonus continued

Table 2 – FY25 annual bonus performance measures continued

Remuneration Report continued

Annual Report on Remuneration continued

Bonus measure Definition Reason for selecting

Weighting

(% of salary

maximum)

Non-financial performance measures continued

Diversity

and inclusion

To qualify for this element of the bonus, the Group

must achieve an increase in the average rate of diverse

appointments (gender and ethnicity).

37% diverse appointments are required to achieve

Minimum, 39% diverse appointments are required to

achieve On Target, 41% appointments are required to

achieve Stretch.

For Executive Committee and RMD’s only – an

additional target of 25% diverse representation of our

Grade 4 population is also required.

To focus individuals on

ensuring that, as part of any

recruitment process, they

identify a range of candidates

which will help further

improve diversity within

the business.

15.0

Reduction of waste Our FY25 sustainability target is site waste reduction

(tonnes of waste for every 100m

of house build

equivalent area). The target number will be set in

accordance with Group, Division and site minimum

performance levels.

Focus individuals on reducing

the amount of construction

waste intensity, which is a

key element of our overall

carbon reduction and

sustainability strategy.

15.0

Total bonus achievable as a % of salary 150.0

1 One-third of any bonus earned will be deferred into shares and held in the DBP. Dividend equivalents will accrue against any shares deferred into the DBP.

The Committee will continue to have an overriding discretion in respect of any bonus payment in accordance with

its Policy.

In addition, any bonus awarded for FY25 will be subject to the malus and clawback provisions set out on page 129.

LTPP

The Committee intends to grant an LTPP award to

Executive Directors later this year (2024 LTPP). Under the

Remuneration Policy and the rules of the LTPP, the award

can be up to 200% of base salary. The Committee remains

mindful of the need to avoid windfall gains for Executive

Directors, as evidenced by its decision to reduce the

quantum of the 2022 LTPP award grant. There has been

little movement in the share price since October 2023 and

therefore the Committee intends to grant an award of up to

200% of base salary to Executive Directors. The Committee

will, however, monitor the share price up until the day

before the grant to determine the final quantum of the

2024 LTPP. In addition, the Committee recognises that the

2024 LTPP award should be subject to performance targets

which are stretching and challenging whilst aligned with

the long-term performance of the Group and its strategy,

as well as the interests of shareholders. The performance

conditions and their respective weightings for the 2024

LTPP, as agreed by the Committee, are set out in the table

on the following page.

The Committee has set targets for each of the financial and

non-financial performance conditions for the Barratt Group

on a standalone basis. The Committee is however, mindful

that these, together with the targets for all in-flight LTPP

awards, may need to be adjusted to reflect the Combined

Group post Completion. This will be considered by the

Committee once the three-year plan for the Combined

Group has been finalised. Accordingly, the Committee has

agreed not to disclose the Barratt stand alone targets in

this report but will communicate the adjusted targets at

the appropriate time (currently anticipated to be the second

quarter of 2025).

134 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Statement of implementation of the Remuneration Policy for FY25 continued

LTPP continued

Table 3 – 2024 LTPP performance measures

Performance Measure Definition Reason Selected

Weighting

(of total award)

TSR against 50+/50-

comparator group

Company’s Total Shareholder Return over the

Performance Period measured against two

comparator groups (i) the ‘FTSE - the

Company’s Total Shareholder Return over the

Performance Period must be at least at the

median of a ranking of the Total Shareholder

Return of each of the members ranking 50

above and 50 below the Company in the FTSE

Index at the start of the Performance Period

based on market capitalisation as at the day

before the start of the Performance Period;

and (ii) the ‘Housebuilder Index’ - the Company’s

Total Shareholder Return over the Performance

Period must be at least the Index average of

the Housebuilder Index over the same period.

Ensures the comparator group

remains current and relevant

whilst factoring in the

continued movement in the

Company’s market capitalisation.

15%

TSR against a house

builderindex

Ensures rewards are linked to

outperformance of our peers.

15%

Absolute Adjusted EPS

forfinancial year ending

30June 2027

Calculated by dividing the adjusted profit

aftertaxfortheyearattributabletoordinary

shareholders by the weighted average number

of ordinary shares in issue during FY27,

excluding those held by the Employee

BenefitTrustwhicharetreatedascancelled.

Ensures efficient and effective

management of our business

and align interests with those

of shareholders.

15%

Underlying ROCE for the

financial year ending

30 June 2027

Calculated as earnings before amortisation,

interest, tax, operating charges relating to the

defined benefit pension scheme and adjusted

items, divided by average net assets adjusted

for goodwill, intangibles and land payables,

tax, cash, loans and borrowings, retirement

benefit assets/obligations, derivative financial

instrumentsandlegacypropertyprovisions.

Ensures efficient and effective

management of our business

and align interests with those

of shareholders.

40%

Reduction in

GHGEmissions

Reduction of our absolute Scope 1 and 2

(operational) GHG emissions by 29% by 2025

(from 2018 levels) and to net zero by 2040.

Ensures we focus on reducing

our emissions by meeting

our science-based target of

a 29% reduction in absolute

scope 1 and 2 greenhouse

gasemissions.

15%

1 The Housebuilder Index to comprise: Bellway, Berkeley Homes, Crest Nicholson, Persimmon, Taylor Wimpey and Vistry Group.

2 Further information on scope 1 and 2 GHG Emissions can be found in the Strategic Report, pages 79 and 80.

The TSR, EPS and Underlying ROCE performance targets,

will vest on a straight-line basis between threshold and

maximum. For the GHG performance target, vesting will

be on a straight-line basis between Below Threshold and

Threshold, and on a straight-line basis between Threshold

and Maximum. In addition, all LTPP awards are subject to

a two-year post-vesting holding period and an overriding

Committee discretion, as set out in the Policy table on page 146

of the FY23 Annual Report and Accounts. The Committee

retains discretion to adjust the number of shares vesting

from the 2024 LTPP award to mitigate against any potential

windfall gains. The 2024 LTPP will also be subject to the

malus and clawback provisions noted on page 129.

Non-Executive Directors’ fees

During the year, a committee of the Board comprising the

Chair and the Executive Directors reviewed Non-Executive

Directors’ fees and concluded that an increase of 3% should

apply to the base fee paid to the Non-Executive Directors.

Fees for the Chairs and members of Committees remain

unchanged. This increase is in line with the salary increase

awarded to the Executive Directors and the wider workforce.

Caroline Silver, as Chair, also received a 3% increase from

1 July 2024. The annual fees payable to the Chair and

Non-Executive Directors with effect from 1 July 2024 are:

Table 4 – Non-Executive Directors’ fees

Role

Fee as at

1 July 2024

£000

Fee as at

1 July 2023

£000

Chair 375 364

Non-Executive Director base fee 72 70

Committee membership (per

Committee) 3 3

Chair of Audit Committee 18 18

Chair of Remuneration Committee 18 18

Chair of Safety, Health and

Environmental Committee 18 18

Senior Independent Director 18 18

Designated NED for Workforce

Engagement1 0 0

1 As Caroline SIlver is currently the Designated NED for Workforce Engagement no additional

fees are payable to her for this role.

Remuneration Report continued

Annual Report on Remuneration continued

135Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Directors’ remuneration outcomes for the year ended 30 June2024

Single figure of remuneration

The total remuneration for each of the Directors who served during the financial year ended 30 June 2024 is set out in Tables 5 and 6. The salary for all Directors is the amount received

in the year.

Table 5 – Executive Directors’ single figure of remuneration (audited)

Base

salary

£000

Benefits

(taxable)

£000

Annual

bonus

£000

LTPP

£000

Sharesave

£000

Pension

benefits

£000

Total

remuneration

£000

Total

fixed

remuneration

£000

Total

variable

remuneration

£000

2023/24 2022/23 2023/24 2022/23 2023/24 2022/23 2023/24 2022/23 2023/24 2022/23 2023/24 2022/23 2023/24 2022/23 2023/24 2022/23 2023/24 2022/23

David Thomas 836 803 29 29 1,126 483 194 269 — — 84 141 2,268 1,725 948 973 1,321 752

Steven Boyes 674 648 15 30 909 390 157 213 2 — 67 113 1,824 1,394 756 791 1,067 603

Mike Scott 514 494 23 18 693 297 102 62 — — 51 49 1,384 920 589 561 795 359

Tot a l 2,024 1,945 67 77 2,728 1,170 453 544 2 — 202 303 5,476 4,039 2,293 2,325 3,183 1,714

1 Benefits (taxable) include the provision of a company car or car allowance, private medical insurance, some telephone costs and contributions towards obtaining independent financial and tax advice, and are provided based on market rates.

2 Annual bonus for 2023/24 includes amounts deferred (see page 138).

3 Performance conditions for the LTPP were tested after 30 June 2024. 15% of the award granted to each of the Executive Directors is due to vest in October 2024 (see pages 138 and 139 for further details). The market price of the shares has been calculated based on an average market value

over the three months to 30 June 2024 £4.81 per share). None of the value of the award is attributed to share price growth. The values in the 2022/23 column have been re-calculated using a share price of £3.925 per share being the market value of the shares on the vesting date, 19 October

2023, as opposed to the market price of £4.71 per share calculated based on an average market value over the three months to 30 June 2023 disclosed in last year’s Remuneration Report.

4 The Sharesave shares granted in 2020 for Steven Boyes, which matured on 1 July 2023, were subject to a continued employment condition and completion of a savings contract. There are no performance conditions for Sharesave shares. The value calculated using the difference between the

option price and the mid-market closing price of a share on the date of maturity is nil (relevant prices £4.56 and £4.14). Steven Boyes exercised these options on 31 December 2023 making a gain of £2,103 calculated using the difference between the option price and the mid-market closing price

on 29 December 2023 being the last trading day before the date of exercise (relevant prices being £4.56 and £5.63).

5 The total remuneration figures in the last three columns of the above table may not add up to the sum of the component parts, due to rounding.

Table 6 – Non-Executive Directors’ single figure of remuneration (audited)

Fees

£000

Benefits (taxable)

£000

Total

£000

2023/24 2022/23 2023/24 2022/23 2023/24 2022/23

Caroline Silver

364 7 — — 364 7

Katie Bickerstaffe 97 93 — — 97 93

Jasi Halai

83 40 — — 83 40

Jock Lennox 115 110 — — 115 110

Chris Weston 97 93 — — 97 93

Nigel Webb

60 — — — 60 —

John Allan — 405 — 1 — 406

Nina Bibby — 22 — 4 — 26

Sharon White — 86 — — — 86

Tot a l 816 856 — 5 816 861

1 Caroline Silver and Jasi Halai were appointed to the Board with effect from 1 June and 1 January 2023 respectively. Their 2022/2023 fees therefore reflect a partial year.

2 Nigel Webb was appointed to the Board with effect from 1 October 2023 and his fees therefore reflect a partial year.

Remuneration Report continued

Annual Report on Remuneration continued

136 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Directors’ remuneration outcomes for the year ended

30June2024 continued

Annual bonus

For FY24, the business continued to focus on managing costs, with a strong emphasis on

building sustainably whilst maintaining high customer service levels. The bonus measures

were set accordingly. Financial targets were set taking into consideration internal and

external consensus forecasts.

As in previous years, Executive Directors had the potential to earn an annual bonus of up to

150% of base salary. Achievement is based on the attainment of Group performance targets

which are linked directly to the Group’s strategy. One-third of any bonus earned is deferred

into shares (see page 138). The Group performance targets and performance against them

for FY24 are set out in the table below. The Committee considers that the outcome reflects

a fair, reasonable and appropriate level of reward, and the overall performance of the Group

during FY24, and therefore no discretion was exercised in relation to the bonus outcomes.

It also aligns to the bonus outcomes for the wider workforce below senior management.

Remuneration Report continued

Annual Report on Remuneration continued

Table 7 – Annual bonus (audited)

Bonus target

Reason performance target selected Targets

Potential

bonus

weighting %

of salary

Actual

performance

achievement

Bonus

achieved

% of

salary

Bonus

outcome %

of maximum

Adjusted profit

before tax

Rewards outperformance against stretching targets and is a key

measure of our performance.

Threshold: £275m

Target: £350m

Maximum: £400m

16.5%

41.25%

82.5%

£385m 70.1% 46.8%

Capital

employed

Ensuresefficientuseofavailablecapital. Minimum and target: £1,923m

Maximum: £1,890m

7.5%

15.0%

£1,805.3m 15.0% 10.0%

Quality and

service (with

health and

safety underpin)

Ensured a focus on quality and service to our customers without

compromising the health and safety of our employees, customers,

suppliers, sub-contractors and members of the public.

A three-stage assessment is applied:

(i) a division must achieve SHE audit monitoring inspections

gate on a rolling 12 months’ performance basis of 94% to be

considered for the customer service element;

(ii) to earn 67% of this bonus element, the division must achieve

90% or higher “recommend” score for the HBF eight-week

National New Homes Customer Satisfaction Survey; and

(iii) to earn the remaining 33% of this bonus element, the division

must also achieve 82% or higher score for the NHBC nine-month

Customer Satisfaction Survey.

22.5% SHE gate:

29/29 divisions

Eight-

week score:

28/29 divisions

Nine-month

score:

20/29 divisions

19.7% 13.1%

Construction

waste reduction

Focuses individuals on reducing the amount of construction waste

intensity, which is a key element of our overall carbon reduction and

sustainability strategy.

Threshold: 4.31 tonnes

Target: 4.22 tonnes

Maximum: 4.15 tonnes

3.0%

7.5%

15.0%

3.83 tonnes 15.0% 10.0%

Diversity

and inclusion

Focuses individuals on ensuring that, as part of any recruitment

process, they identify candidates which will help further improve

diversity within the business.

The Group must achieve an increase in the average rate of diverse

appointments (gender and ethnicity) against a baseline of 20%.

Threshold: 32%

Target: 34%

Maximum: 36%

3.0%

7.5%

15.0%

54.0% 15.0% 10.0%

Total outcome 134.8% 89.9%

1 See definitions on pages 156 and 157 of the 2023 Annual Report and Accounts.

137Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Executive Directors’ deferred bonus

Table 8 sets out the amount of bonus earned by each of

the Executive Directors for FY24 and the split between cash

(two-thirds of the bonus earned) and shares (one-third

of the bonus earned). The number of shares that will be

awarded will be calculated based on the average closing

share price for the first five dealing days following the date

on which the Group publishes its annual results and will be

announced via the Regulatory Information Service when the

shares are awarded. Deferred shares are held for a period

of three years from the date they are awarded, subject

normally to continued employment.

Table 8 – Executive Directors’ deferred bonus (audited)

FY24 deferred bonus FY23 deferred bonus

Bonus

earned

% of salary

Annual

bonus

£000

Bonus paid

in cash

(two-thirds)

£000

Bonus

deferred

into shares

(one-third)

£000

% of salary

deferred

into shares

Bonus

deferred

into shares

£000

Number of

David Thomas 134.8 1,126 751 375 0 0 0

Steven Boyes 134.8 909 606 303 0 0 0

Mike Scott 134.8 693 462 231 0 0 0

Long-Term Performance Plans

Vesting of 2021 LTPP (included in FY24 single figure of remuneration)

The 2021 LTPP award was based on a three-year performance period to 30 June 2024 and will vest in October 2024. The award is subject to four performance conditions, 15% EPS,

40%ROCE,30%TSR(halfofwhichismeasuredagainsta50+/50-FTSEcomparatorgroupandtheotherhalfagainstahousebuilderindex)and15%forthereductionofGHGemissions.

The resulting vesting levels are as follows:

Table 9 – Vesting of 2021 LTPP (audited)

Metric Performance condition

Below Threshold

(0% vesting)

Threshold

(25% vesting)

Maximum

(100% vesting) Actual

Portion of

award vesting

Absolute EPS for the financial year

ended30 June 2024 (15.0%)

EPS growth for the financial year ended 30 June 2024. <79 pence 79 pence 87 pence 12.7pence

0.0%

Underlying ROCE for the financial year

ended 30 June 2024 (40.0%)

To increase Underlying ROCE for the financial year

ended 30 June 2024.

<19.0% 19.0% 22.0% 8.6% 0.0%

TSR (FTSE) (15.0%) TSR against the 50 companies above and below the

Company in the FTSE index measured over three

financial years with a three-month average at the

start and end of the performance period.

Below median Median ranking of

47.0 TSR of 1.0%

Upper quartile

ranking of 24.0

TSR of 22.2%

Rank of 63.5

TSR of (20.9%)

0.0%

TSR (housebuilder)

(15.0%) TSR of at least the index average of a housebuilder

index measured over three financial years with a

three-month average at the start and end of the

performance period.

Below unweighted

index average

Unweighted

index average

(TSR of (7.9)%)

Unweighted index

average + 8% p.a.

(TSR of 18.0%)

Below Threshold

(TSR of (20.9)%)

0.0%

Reduction of GHG emissions (15.0%) Based on the reduction of greenhouse gas emissions

(the Greenhouse Gas Emissions Element) compared

with 2018 levels.

<20.0% reduction 25.0% 30.0% 49.4% 15.0%

Total level of award vesting 15.0%

1 The basic EPS of 11.8 pence has been re-based using the same rate of corporation tax and number of shares as was used in setting the 2021 LTPP targets. The re-based basic EPS used for the purpose of determining vesting, which is directly comparable to the 2021 targets, is 12.7 pence.

2 The housebuilder index comprises: Bellway, Berkeley Homes, Countryside Partnerships, Crest Nicholson, Persimmon, Redrow, Taylor Wimpey and Vistry Group. On 11 November 2022, Countryside Partnerships was acquired by Vistry Group. At the time, both companies were members of the

housebuilder index comparator group. The TSR performance for Countryside Partnerships has therefore been calculated based on the performance of Countryside Partnerships up to the date of the merger and then by tracking Vistry Group’s performance thereafter.

Directors’ remuneration outcomes for the year ended 30June2024 continued

Remuneration Report continued

Annual Report on Remuneration continued

138 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Directors’ remuneration outcomes for the year ended 30June2024 continued

Long-Term Performance Plans continued

Table 9 – Vesting of 2021 LTPP (audited)

Notwithstanding the extent to which each of the performance targets are met, the Committee had discretion to reduce the number of shares in respect of the awards if it considered

that the Company’s underlying financial performance over the performance period did not warrant the level of vesting that would otherwise be achieved by reference to each of the TSR,

EPS, Underlying ROCE and the reduction of GHG emissions performance targets. The Committee considered the underlying financial performance of the Group and was satisfied that

given the continued strong performance in the Group’s financial results, the level of vesting was justified and is fair, reasonable and appropriate. There was no share price appreciation,

and no discretion was exercised in relation to the share price. The Committee has therefore not exercised any discretion in relation to the LTPP vesting outcome. The 2021 LTPP has

accrued dividend equivalents in accordance with the rules of the scheme. The amount of dividend equivalent to be paid, in cash, on vesting will be pro-rated in line with the number

ofsharesthatvest.ThegrossnumberofsharestobereleasedtoeachoftheExecutiveDirectorsandthegrossvalueofthedividendequivalentsareasfollows:

Table 10 – 2021 LTPP vesting outcomes (audited)

Executive Director

Number of

shares at

grant

Number

of shares

to lapse

Total number

of shares

to vest

Estimated

value of

vested shares

£000

Value of

dividend

equivalents

earned on

vested shares

£000

Total

estimated

value

2,3

£000

David Thomas 224,370 190,715 33,655 162 33 194

Steven Boyes 180,987 153,839 27,148 131 26 157

Mike Scott

117,716 100,059 17,657 85 17 102

1 The relevant number of shares will be released to each participant as soon as is practicable following the vesting date. The awards are subject to a two-year post-vesting holding period commencing 1 July 2024.

2 The estimated values of the vested shares and the dividend equivalents are based on the average share price during the three months to 30 June 2024 (£4.81 per share). There was no share price appreciation from the date the shares were awarded.

3 The total estimated value in the last column may not add up to the sum of component parts due to rounding

4 The number of shares over which the award has been granted has been calculated based on 200% of the participant’s salary as at the date of appointment, being £480,000 per annum. In accordance with the participant’s final offer letter dated 24 June 2021, the number of shares subject to the

award has been pro-rated to reflect the length of the performance period commencing from the date of appointment.

LTPP granted during the year (2023 LTPP)

In December 2023, the Committee granted the 2023 LTPP to Executive Directors. The 2023 LTPP is subject to four performance conditions, 30% TSR (half of which is measured against

a 50+/50- FTSE comparator group and the other half against a housebuilder index), 15% Adjusted Absolute EPS, 40% Underlying ROCE and 15% reduction of GHG emissions. Further

information on the reduction of GHG emissions and the progress against this target is given on pages 79 and 80. The levels of vesting against TSR and the reduction of GHG emissions will

be measured over a three-year period commencing 1 July 2023, and against Absolute Adjusted EPS and Underlying ROCE for the financial year ending 30 June 2026. On completion of the

performance period, assuming that shares vest, they will be subject to a further two-year holding period commencing on the vesting date.

Table 11 – 2023 LTPP (audited)

Executive Director Type of award

Basis of

award granted

Share price at

dateofgrant

Number of

shares over

which award

was granted

Face value

of award

£000

% of face value

that would vest

at threshold

performance

Vesting

determined by

performance over

David Thomas Conditional award 200% of salary of £835,540 4.2748 390,914 1,671 25

Three financial

years to

30June2026

Steven Boyes Conditional award 200% of salary of £673,985 4.2748 315,329 1,348 25

Mike Scott Conditional award 200% of salary of £514,180 4.2748 240,563 1,028 25

1 Based on the average of the closing prices, as derived from the London Stock Exchange Daily Official List, for each of the dealing days (excluding days within a prohibited period defined by the Market Abuse Regulation) in the period of three months ending on 20 December 2023, being the day

before the date of the awards.

The targets applicable to the 2023 LTPP are as set out in Table 13.

Remuneration Report continued

Annual Report on Remuneration continued

139Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

2022 and 2023 LTPP awards

The following tables show the targets set on grant for each of the 2022 and 2023 LTPP awards.

Table 12 – 2022 LTPP award performance targets

Performance target

(weighting as % of maximum award)

Below threshold

(0% vesting)

Threshold

(25% vesting)

Maximum

(100% vesting)

TSR FTSE

(15.0%) Below median Median Upper quartile

TSR housebuilder

(15.0%) Below unweighted index average Unweighted index average Unweighted index average +8% p.a.

Adjusted EPS (15.0%) <73 pence 73 pence 81 pence

Underlying ROCE (40.0%) <20.0% 20.0% 23.0%

GHG emissions reduction (15.0%) <25% reduction 30% reduction 35% reduction

1 The comparator group for TSR FTSE is each of the members ranking 50 above and 50 below the Company in the FTSE index.

2 The housebuilder Index comprises: Bellway, Berkeley Homes, Countryside Partnerships, Crest Nicholson, Persimmon, Redrow, Taylor Wimpey and Vistry Group. On 11 November 2022, Countryside Partnerships was acquired by Vistry Group. At the time, both companies were members of the

Table 13 – 2023 LTPP award performance targets

Performance target

(weighting as % of maximum award)

Below threshold

(0% vesting)

Threshold

(25% vesting)

Maximum

(100% vesting)

TSR FTSE

(15.0%) Below median Median Upper quartile

TSR housebuilder

(15.0%) Below unweighted index average Unweighted index average Unweighted index average +8% p.a.

Absolute Adjusted EPS (15.0%) <38 pence 38 pence 42 pence

Underlying ROCE (40.0%) <11.0% 11.0% 13.0%

GHG emissions reduction (15.0%) <29% reduction 33% reduction 38% reduction

1 The comparator group for TSR FTSE is each of the members ranking 50 above and 50 below the Company in the FTSE index.

2 The housebuilder index comprises: Bellway, Berkeley Homes, Crest Nicholson, Persimmon, Redrow, Taylor Wimpey and Vistry Group.

For the TSR, EPS and Underlying ROCE performance targets, vesting is on a straight-line

basis between threshold and maximum. For the reduction of GHG emissions performance

target, vesting is on a straight-line basis between 25% and 35% reduction for the 2022

award, and between 29% and 38% for the 2023 award. The LTPP awards will accrue

dividend equivalents in accordance with the rules of the scheme. The amount of dividend

equivalent to be paid, in cash, on vesting will be pro-rated according to the number of

shares that vest.

The Committee has the discretion to adjust the number of shares vesting from each LTPP

award if it considers that the vesting outcome is not sufficiently reflective of the underlying

performance of the Company and to mitigate against any potential windfall gains for the

Executive Directors.

Statement of Directors’ shareholdings and share interests

For the financial year ended 30 June 2024, Executive Directors were required to hold shares

in the Company equivalent in value to 200% of salary. The Executive Directors are expected

to meet this requirement no later than the fifth anniversary of joining the Board, with progress

being made towards its achievement throughout the period. The share price used for the

purposes of determining the value of the shares is by reference to the higher of the share

price paid on acquisition or vesting and the share price at the close of business on the

London Stock Exchange on 30 June or the date of leaving, as applicable. Participants who

have not built up the required level of shareholding by the fifth anniversary of joining the

Board will not be eligible for inclusion in future share-based incentive schemes. In addition,

they will not be allowed to sell any of the net of tax shares released from incentive schemes

until they reach the levels specified, unless exceptional circumstances exist in the opinion

oftheCommittee.

Remuneration Report continued

Annual Report on Remuneration continued

140 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Statement of Directors’ shareholdings and share interests continued

The Committee retains discretion to adjust the length of time in which the required amount

of shareholding needs to be accrued to adjust for events out of the Director’s control. The

Committee reserves the right to amend the percentage holding required by the Executive

Directors depending on market conditions and best practice guidance. On 30 June 2024,

David Thomas and Steven Boyes had met their shareholding requirements and Mike Scott

has until 6 December 2026 to meet his.

Executive Directors are also subject to a two-year post-cessation shareholding requirement.

They must hold the lower of their shareholding requirement (currently 200% of salary) or

their actual shareholding on the date of leaving. The Committee has agreed that to ensure

continued enforcement of the post-cessation shareholding requirement, a contractual

agreement will be entered into by the Company and the relevant Executive Director at

the point of leaving employment, under which the individual concerned will agree not to

dispose of the shares prior to the completion of the post-cessation shareholding period.

The interests of the Directors serving during the financial year and their connected persons in

the ordinary share capital of the Company at the end of FY24 are shown in the table below.

Remuneration Report continued

Annual Report on Remuneration continued

Table 14 – Directors’ interests in shares as at 30 June 2024 (audited)

Other share interests Options Shareholding requirements

Beneficially

owned

Interests subject to

performance

conditions (LTPP)

Interests not subject

to performance

conditions (DBP)

Interests in

Sharesave

options

Shareholding

requirement

% of salary

Current

shareholding

%ofsalary

Shareholding

requirement

met?

Executive Directors

David Thomas 1,326,830 923,030 140,770 7,807

200% 792% Yes

Steven Boyes 728,082

744,559 113,333

9,110

4 , 5

200% 552% Yes

Mike Scott 69,832 547,661 — 4,128 200% 64% No

Non-Executive Directors

Caroline Silver 10,000

TheChairandNon-ExecutiveDirectorsarenotawardedincentivesharesandarenotsubjectto

ashareholdingrequirement.

Katie Bickerstaffe 8,489

Jasi Halai 12,581

Jock Lennox 10,000

Chris Weston —

Nigel Webb 12,660

1 All of these options were unexercised at 30 June 2024.

2 On11July2024theinterestofStevenBoyesandhisconnectedpersonsintheordinarysharecapitaloftheCompanyincreasedby153sharesfollowingthevestingofawardsmadeundertheCompany’s2022ELTIPtoapersoncloselyassociatedwithStevenBoyes.The153increaserepresentsthe

shares retained following the sale of shares to satisfy tax and National Insurance liabilities. Following this, Steven Boyes, beneficial interest in the Company’s shares was 728,235.

3 Includes 112,758 DBP shares held by Steven Boyes and 575 awards under the Company’s ELTIP made to a person closely associated with Steven Boyes. On 11 July the person closely associated with Steven Boyes' exercised 271 ELTIP awards, following which the interest in shares not subject to

performance conditions was 113,062. On 22 July 2024 the person closely associated with Steven Boyes was awarded 150 shares under the ELTIP, following which the interest in shares not subject to performance conditions was 113,212. The ELTIP is an all-employee award made to employees

grade 4 and below.

4 Includes options held by a person closely associated with Steven Boyes.

5 During the year, David Thomas and a person closely associated with Steven Boyes were each granted 2,434 Sharesave options, exercisable for six months from 1 July 2027 at an option price of £3.81, representing a 20% discount on the average share price for the five business days immediately

before the invitation to participate in the award (£4.753). The number of shares granted was based on the option price and the total savings amount forecast at the end of the respective savings periods. The face value of the options based on the average share price above was £11,569 for

DavidThomasandforthepersoncloselyassociatedwithStevenBoyes.TherearenoperformancetargetsassociatedwiththisSharesaveoption.

6 The share price used for the purposes of determining the value of the shares is £4.722, being the mid-market closing price on 30 June 2024. Shares counting towards the shareholding requirement include those beneficially owned and DBP shares. The value of DBP shares used is net of income

tax and National Insurance contributions which the Directors would have to pay on exercise.

All conditional awards and share options are subject to an overriding Committee discretion, in that the Committee must be satisfied that the underlying financial performance of the

Group over the performance period warrants the level of vesting as determined by applying the relevant targets. If the Committee is not of this view, it has the authority to reduce the

level of vesting, including to nil, as it deems appropriate.

141Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Executive Directors’ pension arrangements

The Company’s pension policy for Executive Directors is

that on joining the Group they will be auto-enrolled unless

they choose to opt out. On opting out, the Executive

Director may choose to receive a cash supplement (which

does not count for incentive purposes) and/or participate

in the Company’s defined contribution money purchase

pension plan. Each Executive Director has opted to receive

a cash supplement in lieu of pension. From 1 January 2023

all Executive Directors have received an amount equal to

10% of base salary in line with the pension level available

to the wider workforce. Only the base salary element of a

Director’s remuneration is pensionable.

Details of the cash supplements paid to the Executive Directors during the

year can be found in Table 5 on page 136.

Defined benefit section (audited)

Steven Boyes is a deferred member of the defined benefit

section of the Barratt Group Pension and Life Assurance

Scheme (the Scheme), which was bought out by an insurer

during FY21. As a result of the buyout, no employee (including

Steven Boyes) has any current or prospective defined benefit

pension or related benefit payable by the Group.

Payments to former Directors (audited)

Jessica White stepped down as a Director and Chief

Financial Officer on 30 June 2021 and left the business on

31 July 2021. The Committee determined that in line with

the Policy and the rules of the relevant plans Jessica would

be treated as a good leaver.

As set out in the FY21 Remuneration Report, Jessica held 56,462

shares under the 2020 LTPP. 11,066 of these shares vested on

6 October 2023. The awards were valued using a share price of

£4.22, being the market price of the shares on the vesting date.

The value of the shares and dividend equivalent (paid in cash)

was £46,699 and £11,232 respectively, such that the total value of

the award on the vesting date was £57,931. No other payments to

past directors were made during the year.

Payments for loss of office (audited)

No payments for loss of office have been made to former

Directors during the year.

Chief Executive’s relative pay

The table below sets out: (i) the total pay, calculated in line with the single figure methodology; (ii) the annual bonus

payout as a percentage of maximum; and (iii) long-term incentive vesting level for the Chief Executive over a ten-year period.

Table 15 – Chief Executive’s pay

Mark Clare David Thomas

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Chief Executive’s

total pay (£000) 7,363 3,155 3,331 2,720 3,727 1,251 3,761 2,738 1,725 2,268

Bonus outturn

(asapercentage

ofmaximum

opportunity) 93.2 97.4 97.5 92.2 96.2 0 99.0 98.3 4 0 .1 89.9

LTI vesting (as a

percentage of

maximum award) 100.0 100.0 100.0 76.4 92.8 19.4 80.0 59.3 19.6 15.0

TSR performance graph

The graph below, prepared in accordance with the reporting regulations, shows the TSR performance over the last

ten years against the FTSE 100 and against an unweighted index of listed housebuilders. The Board has chosen

these comparative indices as the Group and its major competitors are constituents of one or both of these indices.

TheTSRhasbeencalculatedusingafairmethodinaccordancewiththeregulations.

Total shareholder return (value of £100 invested on 30 June 2014)

300

250

200

150

100

Index of currently listed Housebuilders FTSE 100 Barratt Developments Source: Datastream by Refinitiv

Value (£)

June 2014 June 2015 June 2016 June 2017 June 2018 June 2019 June 2020 June 2021 June 2022 June 2023 June 2024

237

224

178

Remuneration Report continued

Annual Report on Remuneration continued

142 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Annual percentage change in remuneration of Directors comparedto employees

Table 16 shows the percentage change in salary, taxable benefits and annual bonus set out in the relevant single figure of remuneration tables paid to each Director compared to that

oftheaveragepayofallemployeesofBarrattDevelopmentsPLC,theGroupparentcompany,inrespectofthefinancialyearsended30June2020to30June2024,comparedwiththeir

prior years.

Table 16 – Percentage change in remuneration

FY24 FY23 FY22 FY21 FY20

Salary/

fees

% change

Benefits

% change

Annual

bonus

% change

Salary/

fees

% change

Benefits

% change

Annual

bonus

% change

Salary/

fees

% change

Benefits

% change

Annual

bonus

% change

Salary/

fees

%change

Benefits

% change

Annual

bonus

% change

Salary/

fees

% change

Benefits

% change

Annual

bonus

% change

Executive Directors

David Thomas 4.1 0.0 133.1 2.9 3.6 (58.0) 3.0 7.7 2.5 2.2 (10.3) 100.0 0.3 16.0 (100.0)

Steven Boyes 4.0 (50.0) 133.1 3.0 (3.2) (58.1) 5.0 (25.0) 4.4 2.2 11.1 100.0 0.2 (12.2) (100.0)

Mike Scott

4.0 27. 8 133.3 78.3 100.0 (26.1) N/A N/A N/A N/A N/A N/A N/A N/A N/A

Non-Executive Directors

Caroline Silver

3.1 N/A N /A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Katie Bickerstaffe

4.3 N/A N/A 1.1 N/A N/A 41.5 0.0 N/A N/A N/A N/A N/A N/A N/A

Jasi Halai

5.1 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Jock Lennox 4.5 N /A N /A 0.9 N/A N/A 41.6 0.0 N/A 4.1 0.0 N/A 0.0 0.0 N/A

Chris Weston

4.3 N/A N/A 1.1 N/A N/A 43.8 0.0 N/A N/A N/A N/A N/A N/A N/A

Nigel Webb

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Average pay of all employees

inBarrattDevelopmentsPLC 1.0 (6.2) 6 .1 (2.6) (12.1) (32.6) (1.1) (11.3) (3.2) 7.7 (3.5) 100.0 4.0 6.4 (100.0)

Average pay of all employees

intheGroup

1.9 (1.7) 62.2 7.5 11.5 (39.5) 7.8 (2.1) (3.2) 0.4 2 .1 100.0 0.8 (1.5) (100.0)

1 The percentage changes in salary and fees of the Directors for FY21 takes into account a temporary 20% voluntary reduction in base salary in April and May 2020 covering the period our construction sites were temporarily closed as a consequence of COVID-19.

2 Mike Scott was appointed as an Executive Director effective 6 December 2021; therefore, no percentage change in remuneration is displayed for years prior to FY23 and the change in fees reflects the annualised fees that would have been earned for FY22.

3 The changes in fees of the Non-Executive Directors reflect the introduction of additional fees for Committee membership and increases in fees for Committee Chairs which took place for FY22 and were set out in detail on page 102 of the FY21 Annual Report and Accounts.

4 Katie Bickerstaffe and Chris Weston were appointed to the Board part way through FY21, Jasi Halai and Caroline Silver were appointed to the Board part way through FY23 and Nigel Webb was appointed to the Board part way through FY24. No percentage change in remuneration is displayed

fortheyearstheyjoined,andthechangesinfeesreflecttheannualisedfeesthatwouldhavebeenearnedfortheyeartheyjoinedtheBoard.TheChangeinfeesforCarolineSilverreflecttheannualChairfeethatwouldhavebeenearnedinFY23.

5 Average pay using all employees in the Group is provided as a more meaningful figure, as the parent company employs only a very few senior employees. The figure represents the mean employee pay. As set out in the 2023 Remuneration Report, the average salary increase for the wider

workforce on 1 July 2023 was 5.3%.

Remuneration Report continued

Annual Report on Remuneration continued

143Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Chief Executive pay ratio

The table below compares the single total figure of remuneration for the Chief Executive

with that of the Group employees who are paid at the 25th percentile (lower quartile),

50thpercentile(median)and75thpercentile(upperquartile)ofitsUKemployeepopulation.

Table 17 – Chief Executive pay ratio

Method 25th percentile pay ratio Median pay ratio 75th percentile pay ratio

FY24 Option B 59:1 42:1 26:1

FY23 Option B 44:1 32:1 23:1

FY22 Option B 81:1 63:1 38:1

FY21 Option B 115:1 94:1 60:1

FY20 Option B 40:1 32:1 21:1

FY19 Option B 123:1 88:1 59:1

The remuneration figures for the employee at each quartile were determined with reference

to the financial year ended 30 June 2024.

Under Option B of The Companies (Miscellaneous Reporting) Regulations 2018, the latest

available gender pay gap data (i.e. from 5 April 2024) was used to identify the best equivalent

for three Group UK employees whose hourly rates of pay are at the 25th, 50th and 75th

percentiles for the Group. The Committee is comfortable that this approach provides

a fair representation of the Chief Executive to employee pay ratios and is appropriate

in comparison to alternative methods, balancing the need for statistical accuracy with

internaloperationalresourceconstraints.

A full-time equivalent total pay and benefits figure for the FY24 financial year was then

calculated for each of those employees. This was also sense checked against a sample of

employees with hourly pay rates either side of the identified individuals to ensure that the

appropriate representative employee is selected. The pay ratios outlined above were then

calculated as the ratio of the Chief Executive’s single figure to the total pay and benefits of

each of these employees.

Each employee’s pay and benefits were calculated using each element of employee

remuneration on a full-time basis, consistent with the Chief Executive. No adjustments

(other than the approximate uprating of pay elements to achieve full-time equivalent rates)

were made, with the exception of annual bonuses where the amount paid during the year

for the annual bonus and H2 bonus was used (i.e. in respect of FY23) as the FY24 employee

figures had not yet been determined at the time this report was produced. No components

of pay have been omitted.

The table below sets out the salary and total pay and benefits for the three identified

quartile point employees:

Table 18

25th percentile

(P25)

Median

(P50)

75th percentile

(P75)

Salary £36,005 £39,250 £59,715

Total pay and benefits £38,650 £54,132 £87,585

The FY24 pay ratios are higher than last year due to an increase in the Chief Executive’s

single figure of remuneration compared to FY23. The increase in the Chief Executive's pay

is a result of an increase in annual bonus payout when compared to FY23. The median pay

ratio has fluctuated since reporting began. This movement has primarily been driven by

both changes in the Chief Executive's pay outcomes and the impact of the pandemic on

outcomes in recent years. The Committee considers that the median pay ratio is consistent

with the relative roles and

responsibilities of the Chief Executive and the identified employee.

Base salaries of all employees, including our Executive Directors, are set with reference to a range

of factors including market practice, experience and performance in role. The Chief Executive’s

remuneration package is weighted towards variable pay (including the annual bonus and LTPP)

due to the nature of the role. This also means that the ratio is likely to fluctuate depending on

the outcomes of incentive

plans in each year (as illustrated by the ratios to date).

The Committee also recognises that, due to the nature of the Company’s business and

the ways in which we employ our staff, the flexibility permitted within the regulations for

identifying and calculating the total pay and benefits for employees, as well as differences

in employment and remuneration models between companies, the ratios reported above

may not be comparable to those reported by other companies.

Service contracts and letters of appointment

The letters of appointment for Non-Executive Directors and service contracts for

Executive Directors are available for inspection by any person at the Company’s

registered office during normal office hours or are available on the Company’s website:

www.barrattdevelopments.co.uk/investors.

As previously announced, we expect Matthew Pratt, Nicky Dulieu and Geeta Nanda to

join the Board once either: (i) undertakings have been agreed with the Competition and

Markets Authority (CMA) that address the CMA’s limited concerns in connection with the

combination of Barratt and Redrow; or (ii) the CMA otherwise agrees to their appointment.

As such, Matthew, Nicky and Geeta may join the Board either before the date of the AGM or

after the date of the AGM, depending on the process with the CMA.

Provided that they are appointed as Directors by the Board prior to the date of the AGM,

Matthew, Nicky and Geeta will seek election by shareholders for the first time at the 2024

AGM. If they are not appointed as Directors by the Board prior to the date of the AGM, they

will instead seek election by shareholders for the first time at the 2025 AGM.

As Matthew, Nicky and Geeta have not yet been appointed they do not yet have service

contracts (Matthew) or letters of appointment (Nicky and Geeta) but will duly sign such

ontheirappointmenttotheCombinedBoard.

The current Executive Directors have service contracts with the Company all with a rolling

12-month notice period and are not fixed term. Details are included in the following table

and their remuneration for FY24 is shown in the single figure table on page 136.

Remuneration Report continued

Annual Report on Remuneration continued

144 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Service contracts and letters of appointment continued

Table 19 – Executive Directors’ service contracts

Executive Director Service contract date Date of appointment

Notice period/

Unexpired term

David Thomas 16 January 2013 21 July 2009 12 months

Steven Boyes 21 February 2013 1 July 2001 12 months

Mike Scott 28 June 2021 6 December 2021 12 months

The Chair and each of the Non-Executive Directors are appointed for an initial three-year

term under terms set out in a letter of appointment. Their appointments can be terminated

by the Board without compensation for loss of office subject to the notice periods in

their respective letters of appointment. The notice periods, applicable from either party,

are three months for the Chair and one month for each of the Non-Executive Directors.

The Chair and each of the Non-Executive Directors usually serve a second three-year

term subject to performance review and can serve a further term of three years subject

to rigorous review by the Chair and the Nomination Committee. Details of Non-Executive

Directors’ letters of appointment are given in Table 20 below.

Table 20 – Non-Executive Directors’ letters of appointment

Non-Executive

Director

Date elected/

re-elected at AGM

Date first

appointed

to the Board

Date last

re-appointed

to the Board

Unexpired

term as at

30June2024

Caroline Silver 18 October 2023 1 June 2023

N/A 23 months

Katie Bickerstaffe 18 October 2023 1 March 2021 1 March 2024 32 months

Jasi Halai 18 October 2023 1 January 2023 N/A 18 months

Jock Lennox 18 October 2023 1 July 2016 1 July 2022 12 months

Nigel Webb 18 October 2023 1 October 2023 N/A 27 months

Chris Weston 18 October 2023 1 March 2021 1 March 2024 32 months

1 Appointed as Chair on 30 June 2023.

Non-executive directorships

Subject to Board approval, Executive Directors are permitted to accept one non-executive

directorship outside the Company and retain any fees received from such a position.

Board approval will not be given for any non-executive position where such appointment

would lead to a material conflict of interest or would have an effect on the Director's

ability to perform their duties to the Company. Neither Steven Boyes nor Mike Scott held

any non-executive directorships with other companies during the year. David Thomas is

a Non-Executive Director of the HBF and a Trustee at CentrePoint, the UK’s leading youth

homelessness charity for which he does not receive fees. He also participates in various

groups connected with the UK construction industry (in particular sustainability), for which

no fee is paid.

Relative importance of spend on pay

The following table shows the Group’s actual spend on pay (for all employees) relative to

dividends and profit from operations:

Table 21 – Relative importance of spend on pay

FY24

£m

FY23

£m % change

Employee costs (including Executive Directors) 524.0 527.2 (1)%

Profit from operations

174.7 707.4 (75)%

Dividend distributions

212.8 328.2 (35)%

Share buyback — 201.3 N/A

1 Profit from operations has been chosen as a metric to compare against as it shows how spend on pay is linked to the Group’s operating

performance. The figure used is from the Consolidated Income Statement on page 159.

2 For FY23 this includes the interim and final dividends paid in May and November 2023. For FY24, this includes the interim dividend paid in

May2024,andtheproposedfinaldividendforpaymentinNovember2024,thevalueofwhichhasbeencalculatedbasedonthenumberof

shares in issue as of 30 June 2024.

Statement of shareholding vote at AGM

The latest resolution to approve the Directors’ Remuneration Policy (a binding vote, to

remain in place for three years following its approval by shareholders) and the resolution

to approve last year’s Annual Report on Remuneration (an advisory vote) were proposed to

shareholders at the 2023 AGM. The following votes were received:

Table 22 – Shareholder votes on remuneration

Vote on Remuneration Policy Vote on Remuneration Report

Number of

votes

% of

votes cast

Number of

votes

% of

votes cast

Votes cast in favour 624,689,860 97.64 625,027,962 97.6 8

Votes cast against 15,087,581 2.36 14,843,737 2.32

Number of votes cast 639,777,441

100 639,871,699

100

Votes withheld 135,984 — 41,726 —

1 65.65% of the issued share capital.

2 65.66% of the issued share capital.

This Remuneration Report was approved by the Board on 3 September 2024 and signed on

its behalf by:

Katie Bickerstaffe

Chair of the Remuneration Committee

3 September 2024

Remuneration Report continued

Annual Report on Remuneration continued

145Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Other statutory disclosures

Directors’ Report

For the financial year ended 30 June 2024, the Strategic Report

is set out on pages 1 to 88 and the Directors’ Report on

pages 89 to 148. The table below sets out the location

of information required to be disclosed in the Directors’

Report, which can be found in other sections of this Annual

Report and Accounts and is incorporated by reference.

Information required Page numbers

Arrangements under which a shareholder

haswaived or agreed to waive a dividend

anddetails of the waiver

See page 191

Likely future developments in the business

ofthe Group

See pages 16

to 21

Financial instruments

See pages

189and 190

A description of the Company’s policies on

employment of people with disabilities

See page 31

A description of the Company’s employee

engagement and involvement practices

See pages

50and 51

Stakeholder engagement

See pages

50to 57

Greenhouse gas emissions

See pages 79

and 80

Research and development activities

See pages 21,

37, 76 and 78

Post balance sheet events

See page 199

1 This item is a requirement of UK Listing Rules. All other items are requirements of Schedule

7 of the Large and Medium-Sized Companies and Groups Regulations.

Dividends

An interim dividend of 4.4 pence per share was paid on

17 May 2024 to those shareholders on the register on

12April2024(2023:10.2pencepershare).TheDirectors

recommend payment of a final dividend of 11.8 pence per

share (2023: 23.5 pence per share) in respect of FY24. The

final dividend will be paid, subject to shareholder approval

at the 2024 AGM, on 1 November 2024 to shareholders on

the register at close of business on 27 September 2024.

Shareholders who wish to elect for the Dividend Reinvestment

Plan should do so by 11 October 2024.

If approved, the total dividend for FY24 will be 16.2 pence

per share (2023: 33.7 pence per share).

Annual General Meeting

The 2024 AGM will be held at the offices of Linklaters

LLP, One Silk Street, London EC2Y 8HQ, on Wednesday

23October2024at12noon.Thenoticeconveningthe

AGMissetoutinaseparatelettertoshareholders.

Political donations and expenditure

The Company made no political donations during the year

inaccordancewithitspolicy.InkeepingwiththeCompany’s

approach in prior years, shareholder approval is being sought

at the 2024 AGM, as a precautionary measure, for donations

and/or expenditure that may be construed as political by

the wide definition of such terms provided under the Act.

Significant shareholdings

In accordance with the DTRs, all notifications received

bytheCompanyarepublishedontheCompany’swebsite,

www.barrattdevelopments.co.uk, and via a Regulatory

Information Service. As at 30 June 2024, the persons set

out in the table below had notified the Company, pursuant

to DTR 5.1, of their interests in the voting rights in the

Company’s issued share capital:

Notifiable interests at 30 June 2024

Information

required

Direct

voting

rights

Indirect

voting

rights

Other

financial

instruments

with voting

rights

Total

voting

rights

% of

total

voting

rights

FMR LLC 0 69,616,891 0 69,616,891 7.14

BlackRock,

Inc. 0 50,384,303 6,029,401 56,413,704 5.60

1 Represents the number of voting rights last notified to the Company at 30 June 2024 by the

respective shareholder in accordance with DTR 5.1.

2 Based on the Total Voting Rights as at the relevant notification dates.

On 26 August 2024, Blackrock Inc, notified the Company

that its interest in the voting rights in the Company’s

issued share capital has increased from 5.60% to 6.49%.

Subsequently, on 28 August 2024, Blackrock Inc notified

the Company that its interests in the voting rights in the

Company’s issued share capital had increased from 6.49%

to 6.50%. As at 2 September 2024 the Company had not

received any further notifications.

Directors

The Directors who served during the financial year are set

out on pages 90 to 92.

Appointment and removal of Directors

The appointment and removal of Directors is governed by

the Articles, the Act and related legislation. There shall be

(unless otherwise determined by an ordinary resolution) no

fewer than two and no more than 15 Directors appointed

to the Board at any one time. Directors may be appointed

by the Company by ordinary resolution or by the Board. In

accordance with the Code and the Articles, at each AGM,

alloftheDirectorsshallretirefromofficeatthedateofthe

Notice of AGM and may offer themselves for reappointment

by members. Directors may be removed before the expiration

of their term of office by means set out in the Act and the

Articles, including by special resolution.

Powers of the Directors including in

relation to the allotment of shares

Subject to the Articles, the Act and any directions given

by special resolution, the business of the Company is

ultimately managed by the Board who may exercise all

the powers of the Company, whether relating to the

management of the business of the Company or otherwise.

In particular, the Board may exercise all the powers of the

Company to borrow money and to mortgage or charge any

of its undertakings, property, assets and uncalled capital

and to issue debentures and other securities and to give

security for any debt, liability or obligation of the Company

to any third party. At the AGM held on 18 October 2023,

the Directors were given authority to allot shares up to

an aggregate nominal value of £32,486,193 (representing

approximately one-third of the nominal value of the Company’s

issued share capital as at 5 September 2023), such authority

to remain valid until the end of the 2024 AGM or, if earlier,

until the close of business on 18 January 2025. A resolution

to renew this authority will be proposed at the 2024 AGM.

146 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Directors’ indemnities and insurance

Qualifying third-party indemnity provisions are in place for

the Directors, former Directors and the Company Secretary,

together with those who hold or have held these positions

as officers of other Group companies or of associate

or affiliated companies and members of the Executive

Committee, to the extent permitted by law and the Articles,

in respect of liabilities incurred in the course of performing

their duties. In addition, the Company maintains directors’

and officers’ liability insurance for each Director of the

Group and its associated companies.

Capital structure

The Company has a single class of share capital, which is

divided into ordinary shares of 10 pence each. All issued

shares are in registered form and are fully paid. Details of

the Company’s issued share capital as at 30 June 2024 can

be found in note 22 on page 191. Details of the allotment of

shares in relation to the Combination can be found in note

31 on page 199.

Shareholder voting rights and restrictions

on transfer of shares

All the issued and outstanding ordinary shares of the Company

have equal voting rights with one vote per share. There are

no special control rights attaching to them, save that the

Trustees of the EBT may vote or abstain from voting on

shares held in the EBT in any way they think fit and in doing

so may consider both financial and non-financial interests

of the beneficiaries of the EBT or their dependants. The

Company is not aware of any agreements between holders

of securities that may result in restrictions on the transfer

of securities. The rights, including full details relating to

voting of shareholders and any restrictions on transfer

relating to the Company’s ordinary shares, are set out in the

Articles and in the explanatory notes that accompany the

Notice of the 2024 AGM. These documents are available on

the Company’s website at www.barrattdevelopments.co.uk.

Shareholder authority for purchase

ofownshares

At the Company’s AGM held on 18 October 2023, shareholders

authorised the Company to buy back up to an aggregate of

97,458,579 ordinary shares of 10 pence each (representing

approximately 10% of the Company’s issued share capital).

This authority is valid until the end of the 2024 AGM

(atwhicharenewalofthatauthoritywillbesought)or,

if earlier, until the close of business on 18 January 2025.

Under the authority, there is a minimum and maximum

price to be paid for such shares.

Any shares that are bought back may be held as treasury

shares or, if not so held, will be cancelled immediately

upon completion of the purchase, thereby reducing the

Company’s issued share capital.

Articles of Association

The Articles may only be amended by a special resolution

of shareholders. The Articles were last amended at the

Company’s AGM held on 13 October 2021.

Approach to tax and tax governance

For all taxes, it is the Group’s aim to ensure it accurately

calculates and pays the tax that is due at the correct time.

Whilst the Group does seek to minimise its tax liabilities

through legitimate routine tax planning, it does not participate

inaggressivetaxplanningschemes.TheGroupalsoseeks

to be transparent in its dealings with HMRC and has

regular dialogue with its representatives to discuss both

developments in the business and the ongoing tax position.

In accordance with UK legislation, we have published

details of our tax strategy, and this can be found at

www.barrattdevelopments.co.uk.

The Chief Financial Officer retains overall responsibility

for oversight of the tax affairs of the Group. Mike Scott,

Chief Financial Officer, is the Senior Accounting Officer

throughout the year ended 30 June 2024. The Senior

Accounting Officer receives regular updates on tax matters.

In addition, tax management and strategy are reviewed at

least annually by the Audit and Risk Committee, with no

changes proposed for the year ended 30 June 2024.

Change of control

The following significant agreements as at 30 June 2024

contained provisions entitling the counterparties to exercise

termination and/or other rights in the event of a change of

control of the Company:

• an RCF agreement containing change of control provisions

which provide that, on a change of control of the Company,

the relevant counterparties may require the Company to

immediately repay all amounts outstanding and would not

be obliged to fund any further drawdown of the facility

(other than rollover loans); and

• a note purchase agreement in respect of the Group’s

£200m privately placed notes containing change of control

provisions which provide that, on a change of control of

the Company, the noteholders may require the Company

to prepay at par all outstanding amounts under the notes.

In addition, the Company’s share plans contain provisions

relating to a change of control. Outstanding awards and

options would normally vest and become exercisable

on a change of control subject to the satisfaction of any

performance conditions at that time.

The Company is not aware of any other significant agreements

to which it is a party that take effect, alter or terminate

upon a change of control of the Company.

The Company does not have any agreements with any

Director or employee that would provide compensation

for loss of office or employment resulting from change

ofcontrolfollowingatakeoverbid.

On behalf of the Board

Tina Bains

Company Secretary

3 September 2024

Other statutory disclosures continued

147Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Statement of Directors’ responsibilities

Financial Statements and accounting records

The Directors are responsible for preparing the Annual

Report and Accounts including the Directors’ Remuneration

ReportandtheFinancialStatementsinaccordancewith

applicablelawandregulations.

Company law requires the Directors to prepare Financial

Statementsforeachfinancialyear.UnderthatlawtheDirectors

are required to prepare the Group Financial Statements in

accordance with United Kingdom adopted IAS. The Financial

Statements also comply with IFRS as issued by the IASB.

The Directors have also elected to prepare the Parent Company

Financial Statements under United Kingdom adopted IAS.

Under company law, the Directors must not approve the

FinancialStatementsunlesstheyaresatisfiedthattheygive

a true and fair view of the state of affairs of the Company

andtheGroupandoftheprofitorlossoftheCompanyand

the Group for that period.

IAS 1 requires that Financial Statements present fairly for

eachfinancialyeartherelevantentity’sfinancialposition,

financialperformanceandcashflows.Thisrequiresthe

faithful representation of the effects of transactions, other

eventsandconditionsinaccordancewiththedefinitions

and recognition criteria for assets, liabilities, income

and expenses set out in the IASB’s “Framework for the

preparationandpresentationoffinancialstatements”.

In virtually all circumstances, a fair presentation will be

achieved by compliance with all applicable IFRS.

Directors are also required to:

• properlyselectandapplyaccountingpolicies;

• present information, including accounting policies, in a

manner that provides relevant, reliable, comparable and

understandable information;

• provide additional disclosures when compliance with the

specificrequirementsinIFRSareinsufficienttoenable

users to understand the impact of particular transactions,

othereventsandconditionsontheentity’sfinancial

positionandfinancialperformance;and

• make an assessment of the Company’s and the Group’s

(asthecasemaybe)abilitytocontinueasagoingconcern.

The Directors are responsible for keeping adequate

accountingrecordsthataresufficienttoshowandexplain

the Company’s and the Group’s transactions on an individual

and consolidated basis and disclose with reasonable

accuracyatanytimethefinancialpositionoftheCompany

and the Group and enable them to ensure that the Financial

Statements comply with the Act. They are also responsible

for safeguarding the assets of the Company and the Group

and hence for taking reasonable steps for the prevention

anddetectionoffraudandotherirregularities.

The Directors are responsible for the maintenance and

integrityofthecorporateandfinancialinformationincluded

on the Company’s website. Legislation in the UK governing

the preparation and dissemination of Financial Statements

may differ from legislation in other jurisdictions.

Fair, balanced and understandable

The Board considers, on the advice of the Audit and Risk

Committee, that the Annual Report and Accounts, taken

as a whole, is fair, balanced and understandable, and

provides the information necessary for shareholders to

assess the Company and the Group’s position, performance,

businessmodelandstrategy.

Disclosure of information to auditor

In accordance with Section 418 of the Act, the Directors

confirm that, so far as they are each aware, there is no

relevant audit information that has not been brought

totheattentionoftheCompany’sauditor.EachDirector

has taken all reasonable steps that they ought to have

taken in accordance with their duty as a Director to

makethemselvesawareofanyrelevantauditinformation

and to ensure that the Company’s auditor is aware of

thatinformation.

Directors’ Responsibility Statement

TheDirectorsconfirmthat,tothebestofeach

person’sknowledge:

a. the Group Financial Statements in the Annual Report

and Accounts, which have been prepared in accordance

with IAS in conformity with the requirements of the

Companies Act 2006, and those of the Parent Company,

which have been prepared in accordance with IAS in

conformity with the requirements of the Companies Act

2006, give a true and fair view of the assets, liabilities,

financialpositionandprofitorlossoftheCompanyand

Group taken as a whole; and

b. the Annual Report and Accounts includes a fair review of

thedevelopmentandperformanceofthebusinessand

the position of the Company and the Group taken as a

whole, together with a description of the principal risks

and uncertainties they face.

The Directors of the Company and their functions are listed

onpages90to92.

By order of the Board.

David Thomas

Chief Executive

3 September 2024

The Directors’ Report from pages 89 to 148 inclusive was

approved by the Board on 3 September 2024 and is signed

onitsbehalfby

Tina Bains

Company Secretary

148 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Financial Statements

150 Independent Auditor’s Report

159 Consolidated Income Statement and

Statement of Comprehensive Income

160 Statement of Changes in Shareholders’

Equity – Group

161 Statement of Changes in Shareholders’

Equity – Company

162 Balance Sheets

163 Cash Flow Statements

165 Notes to the Financial Statements

210 Definitionsofalternative

performance measures and

reconciliation to IFRS (unaudited)

212 Five-year record (unaudited)

214 Glossary

217 Integrated reporting approach

218 Group advisers and Company information

Anson Gardens, Fradley

149Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Report on the audit of the Financial Statements

1. Opinion

In our opinion:

• the Financial Statements of Barratt Developments PLC (the ‘Company’) and its

subsidiaries (the ‘Group’) give a true and fair view of the state of the Group’s and

of the Company’s affairs as at 30 June 2024 and of the Group’s profit for the year

then ended;

• the Group Financial Statements have been properly prepared in accordance with

United Kingdom adopted International Accounting Standards;

• the Company Financial Statements have been properly prepared in accordance

with United Kingdom adopted International Accounting Standards and as applied

inaccordancewiththeprovisionsoftheCompaniesAct2006;and

• the Financial Statements have been prepared in accordance with the requirements

oftheCompaniesAct2006.

We have audited the Financial Statements which comprise:

• the Consolidated Income Statement and Statement of Comprehensive Income;

• the Group and Company Statements of Changes in Shareholders’ Equity;

• the Group and Company Balance Sheets;

• the Group and Company Cash Flow Statements; and

• the related notes 1 to 32.

The financial reporting framework that has been applied in their preparation is applicable

law and United Kingdom adopted International Accounting Standards and, as regards

the Company Financial Statements, as applied in accordance with the provisions of the

Companies Act 2006.

2. Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))

and applicable law. Our responsibilities under those standards are further described in the

auditor’s responsibilities for the audit of the Financial Statements section of our report.

Independent Auditor’s Report

to the members of Barratt Developments PLC

We are independent of the Group and the Company in accordance with the ethical

requirements that are relevant to our audit of the Financial Statements in the UK, including

the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public

interest entities, and we have fulfilled our other ethical responsibilities in accordance with

these requirements. The non-audit services provided to the Group and Company for the

year are disclosed in note 3 to the Financial Statements. We confirm that we have not

provided any non-audit services prohibited by the FRC’s Ethical Standard to the Group or

the Company.

We believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our opinion.

3. Summary of our audit approach

Key audit matters The key audit matters that we identified in the current

year were:

• Margin recognition; and

• Costs associated with legacy properties.

Materiality The materiality that we used for the Group Financial

Statements was £40.0m which was determined on the

basis of net assets.

Scoping Our scoping focused on the audit work of the

housebuilding component. All audit work was completed

directly by the Group audit engagement team.

Significant changes

inourapproach

In the current year we changed our basis of materiality

from adjusted profit to net assets. Further details of this

change are detailed in section 6.1.

150 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Report on the audit of the Financial Statements

continued

4. Conclusions relating to going concern

In auditing the Financial Statements, we have concluded that the Directors’ use of the

going concern basis of accounting in the preparation of the Financial Statements is

appropriate.

Our evaluation of the Directors’ assessment of the Group’s and Company’s ability to

continue to adopt the going concern basis of accounting included:

• understanding the relevant controls relating to the assessment of the appropriateness of

the going concern assumption;

• assessing the Group’s financing facilities including the nature of the facilities, repayment

terms and compliance with loan covenants;

• challenging assumptions used in the going concern model by analysing the current and

forecast performance of the combined Group by assessing management’s assumptions

against market data;

• understanding the impact of the acquisition of Redrow plc on the going concern

assessment for the combined Group following completion on 21 August 2024, including

understanding the impact of changes in ownership clauses on banking facilities held by

the Redrow business;

• assessing the wider macro-economic environment over the going concern period, with

respect to interest and inflation rates and their impact on house price and build cost

assumptions, and whether this has been appropriately reflected in the forecasts;

• evaluating management’s sensitivity analysis;

• assessing identified potential mitigating actions and the appropriateness of the inclusion

of these in the going concern assessment;

• assessing the historical accuracy of forecasts; and

• assessing the appropriateness of the going concern disclosures in the Financial

Statements.

Based on the work we have performed, we have not identified any material uncertainties

relating to events or conditions that, individually or collectively, may cast significant doubt

on the Group’s and Company’s ability to continue as a going concern for a period of at least

twelve months from when the Financial Statements are authorised for issue.

In relation to the reporting on how the Group has applied the UK Corporate Governance

Code, we have nothing material to add or draw attention to in relation to the Directors’

statement in the Financial Statements about whether the Directors considered it

appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the Directors with respect to going concern

are described in the relevant sections of this report.

5. Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most

significance in our audit of the Financial Statements of the current period and include the

most significant assessed risks of material misstatement (whether or not due to fraud) that

we identified. These matters included those which had the greatest effect on: the overall

audit strategy; the allocation of resources in the audit; and directing the efforts of the

engagement team.

These matters were addressed in the context of our audit of the Financial Statements as

a whole, and in forming our opinion thereon, and we do not provide a separate opinion on

these matters.

5.1. Margin recognition

Key audit matter

description

In FY24, adjusted gross margin was 16.5% (FY23: 21.2%).

The Group’s valuation and cost allocation framework determines the

total profit forecast for each site. This allows the land and build costs

of a development to be allocated to each individual unit, ensuring the

forecast margin per unit is equalised across a development. At each

year-end, management considers if an adjustment for house prices

and build cost assumptions is required and this is where fraud could

potentially occur. This cost allocation framework drives the recognition

of costs, and hence profit, as each unit is sold, which is the key

estimate in the Income Statement.

For each development there is estimation uncertainty in:

• Estimating the inputs included within a site budget, including future

revenues and costs to complete, in order to determine the level of

profit that each unit of the development will deliver;

• Determining future house price inflation and build cost inflation;

• Appropriately allocating costs such as site-wide development costs

so that the gross profit margin (in percentage terms) achieved on

each individual unit is equal; and

• Recording the variation when a deviation from the initial budget

occurs and ensuring such variations are appropriately recognised

tothoseunitsimpactedbythedeviation.

These estimates impact the carrying value of inventory on the Balance

Sheet and therefore the profit recognised on each unit sold which

aggregate to form the overall reported margin which is a key reporting

metric for the Group. Accordingly, we consider the recognition of cost

per unit and therefore the appropriate margin to be a key audit matter.

Refer to page 116 (Audit and Risk Committee Report) and notes 1

and 3 (Financial Statement disclosures including the related critical

accounting judgements and key sources of estimation uncertainty).

Independent Auditor’s Report continued

to the members of Barratt Developments PLC

Strategic Report Governance Financial Statements

151Barratt Developments PLC Annual Report and Accounts 2024

How the scope

of our audit

responded to the

key audit matter

Our work included the following:

• Tested the relevant controls governing inventory costing which

include site valuations, land acquisition feasibilities, expenditure and

ongoing margin review;

• Visited a sample of sites and verified the work completed to

date. On a sample basis, agreed the cost incurred to source

documentation to verify work in progress;

• On a sample of sites, made enquiries with management to support

their cost to complete estimates and obtained external supporting

evidence regarding costs to complete;

• Evaluated key estimates in the margin calculation, such as the

current and forecast macro-economic conditions such as future

sales volumes, house prices and construction build costs;

• Analysed margins on a site-by-site and divisional basis to identify

material movements in the site margins compared to prior year. We

evaluated and assessed the material variances through enquiries

with management and obtaining corroborative evidence;

• Used bespoke data analytic techniques to analyse costs to complete.

This enabled us to analyse the cost category composition for each

site and comparing to Group averages. We performed enquiries and

obtained corroborative evidence for exceptions identified;

• Analysed the cost per square foot of plots sold at a divisional level

for the current year and compared this to cost per square foot in

previous years, to analyse for any unusual trends which required

corroboration from management; and

• Assessed the information provided by management as well as potentially

contradictory evidence obtained by the audit team during the course

of the audit to assess the appropriateness of margin recognised.

Key observations Based on the procedures performed, we concluded that the Group’s

cost allocation framework was reasonable for the intended purpose of

recognising appropriate margins on plot completion. Accordingly, we

determined that margin was recognised appropriately in the year.

5.2 Costs associated with legacy properties

Key audit matter

description

There is ongoing challenge and public scrutiny in relation to fire

safety and cladding related issues at legacy developments. The

Group has recognised a number of provisions in relation to changing

building regulations and remediation of structural defects identified.

The provisions also include the expected cost to address necessary

fire-safety issues on all buildings of 11 metres and above following

the adoption of the UK Government industry pledge by Barratt

in April 2022 and the signing of the Self-Remediation Terms and

Contract in March 2023.

We identified a key audit matter in relation to costs associated with

legacy properties as the amount provided by the Group could be

incomplete or not valued accurately for the remediation required.

The accounting for these provisions involves a number of key

assumptions when estimating the future costs, which are:

• determining which buildings the Group has an obligation to

remediate at the Balance Sheet date; and

• the cost of the future works.

At the end of the financial year the Group holds provisions of

£730.3m (2023: £612.3m) in relation to legacy properties. During the

year, the Group incurred a net charge of £179.0m (2023: £217.1m)

andutilisationof£91.5m(2023:£32.9m)inrelationtoremediation

costs. The additional provisions recorded have been recognised as

an adjusted item and excluded from adjusted profit measures, as

explained in note 4.

Refer to page 116 (Audit and Risk Committee Report) and notes

1 and 19 to the Financial Statements, including the disclosures

relating to this key source of estimation uncertainty.

Independent Auditor’s Report continued

to the members of Barratt Developments PLC

Report on the audit of the Financial Statements

continued

5. Key audit matters continued

5.1. Margin recognition continued

152 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

How the scope

ofour audit

responded to the

key audit matter

Our work included the following:

• obtained an understanding of controls relevant to the recognition

and estimation of costs associated with legacy properties;

• assessed how the value of the provision has been determined and

whether a present obligation to rectify the properties existed at

the Balance Sheet date;

• validated a sample of cost estimates to underlying support

such as third-party estimates, quotations or agreements

and held discussions with internal structural engineers and

external construction project managers in order to challenge

management’s estimates;

• assessed the estimated liability by understanding and challenging

management’s assumptions regarding the costs of remediation

per plot, the number of plots to be remediated, the time period

for the work to be completed and the discount factor applied to

the overall provision;

• challenged the completeness of the provision, including through

inquiry with internal legal counsel and the Group’s internal

Building Safety Unit, and by testing the key assumptions including

the number of buildings with potential legal liability and the

estimated liability per unit; and

• assessed the appropriateness of the disclosure included within

the Financial Statements in relation to provisions and contingent

liabilities, including consideration of costs classified as adjusted

items and the disclosure of the assumptions and associated

sensitivities in relation to the key sources of estimation uncertainty.

Key observations Based on the procedures performed we concluded the provision

recorded to be appropriate based on information available at 30

June 2024. Additionally, we are satisfied with the disclosure of this

provision as a key source of estimation uncertainty within notes 1 and

19 of the Financial Statements.

6. Our application of materiality

6.1. Materiality

We define materiality as the magnitude of misstatement in the Financial Statements that

makes it probable that the economic decisions of a reasonably knowledgeable person

would be changed or influenced. We use materiality both in planning the scope of our audit

work and in evaluating the results of our work.

Based on our professional judgement, we determined materiality for the Financial

Statements as a whole as follows:

Group financial statements Parent company financial

statements

Materiality £40.0m

(2023:£45.0m)

£36.0m

(2023:£40.5m)

Basis for determining

materiality

Our determined materiality

represents 0.7% of net assets.

In the prior year, materiality

was determined using 5.1%

of adjusted profit before

tax. Adjusted profit before

tax is disclosed in the table

following the Consolidated

Income Statement and

Statement of Comprehensive

Income on page 159.

The materiality determined

in the current year is the

equivalent of 10.4% of

adjusted profit before tax.

Our basis for materiality was

determined based upon 3%

(2023: 3%) of the Company’s

net assets, capped at

90% (2023: 90%) of Group

materiality.

Rationale for the

benchmark applied

We changed the basis of

materiality in the current

period to reflect the ongoing

market volatility which means

that adjusted profit before

tax is no longer a stable and

appropriate measure. The

Group’s net assets provide

a more stable benchmark,

reflecting that the Balance

Sheet is a key focus for

users to assess any impact

caused by the current

market volatility on the

Group’s financial position and

operating model.

Net assets was used as the

benchmark because it is the

primary measure used by

shareholders in assessing the

performance of the entity,

which acts as a holding

company. The benchmark

provides a stable basis as

there are volatile earnings

between periods.

Report on the audit of the Financial Statements

continued

5. Key audit matters continued

5.2 Costs associated with legacy properties continued

Independent Auditor’s Report continued

to the members of Barratt Developments PLC

Strategic Report Governance Financial Statements

153Barratt Developments PLC Annual Report and Accounts 2024

Report on the audit of the Financial Statements

continued

6. Our application of materiality continued

6.2. Performance materiality

We set performance materiality at a level lower than materiality to reduce the probability

that, in aggregate, uncorrected and undetected misstatements exceed the materiality for

the Financial Statements as a whole.

Group financial statements Company financial statements

Performance materiality 70% (2023: 70%) of

Groupmateriality

70% (2023: 70%) of

Companymateriality

Basis and rationale

fordetermining

performance

materiality

In determining performance materiality, we considered the

following factors:

• Our risk assessment, including our assessment of the

Group’s overall control environment and that we consider it

appropriate to rely on controls over a number of business

processes; and

• Our past experience of the audit, which has indicated a

low number of corrected and uncorrected misstatements

identified in prior periods.

6.3. Error reporting threshold

We agreed with the Audit and Risk Committee that we would report to the Committee

all audit differences in excess of £2.0 million (2023: £2.25 million), as well as differences

below that threshold that, in our view, warranted reporting on qualitative grounds. We also

report to the Audit and Risk Committee on disclosure matters that we identified when

assessing the overall presentation of the Financial Statements.

7. An overview of the scope of our audit

7.1. Identification and scoping of components

Our Group audit was scoped by obtaining an understanding of the Group and its

environment, including Group-wide controls, and assessing the risks of material

misstatement at the Group level. The entire Group is audited by one audit engagement

team, led by the Senior Statutory Auditor. Controls are common across the Group and we

identified one financially significant component, the housebuilding business, which takes

into consideration all of the Group’s housebuilding divisions, as well as the head office

consolidation. Our audit scope resulted in 98.7% of revenue, 98.0% of profit before tax and

96.0% of net assets being subject to full scope audit procedures (2023: 100% of revenue,

100% of profit before tax and 100% of net assets). We performed analytical procedures at a

Group level over the remaining entities in the Group, being the Group’s joint ventures, and

additionally tested the consolidation.

The housebuilding component was set a specific component materiality, considering its

relative size and any component-specific risk factors such as internal control findings

and history of error. The component materiality applied was £26.6 million (2023: two

components were identified, the housebuilding business and the Group’s joint ventures,

with component materiality set in the range of £15.8m to £29.9m).

7.2. Our consideration of the control environment

We obtained an understanding of the relevant internal controls over key audit matters,

relating to margin recognition and legacy properties. We obtained an understanding of other

relevant controls which we would expect in a housebuilder, namely those over land and

work in progress and those over subcontractor and other expenses.

We assessed entity level controls at a Group level relating to the risk assessment process,

monitoring of internal controls and information systems. This resulted in a more granular

review of management’s whistleblowing policy, code of ethics, HR and culture policy and

fraud risk assessment.

In the current year, we have tested controls relating to margin recognition, land and work

in progress. Based on our work performed we adopted a controls reliance approach to our

testing in these areas.

The Group IT landscape contains a number of IT systems, applications and tools used

to support business processes and reporting. We reconfirmed our understanding of the

Group’s IT controls and performed testing of General IT Controls (GITCs) of three key

applications that support financial reporting processes, being TM1, COINs and Homebuilder,

which included controls surrounding user access management and change management.

Based on our work performed we adopted a controls reliance approach to GITCs of

theseapplications.

Independent Auditor’s Report continued

to the members of Barratt Developments PLC

154 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Report on the audit of the Financial Statements

continued

7. An overview of the scope of our audit continued

7.3. Our consideration of climate-related risks

As part of our audit we have made enquiries of management to understand the process

they have adopted to assess the potential impact of climate change on the financial

statements. As disclosed on page 67 the Group considers climate change to be a

fundamental component of its Government Regulation and political principal risk within the

business, with specific climate risk assessment criteria used by the Group set out on pages

76 to 78.

We have read the climate change related disclosures within the other information included

in the Annual Report to consider whether they are materially consistent with the Financial

Statements and our knowledge obtained during the audit.

8. Other information

The other information comprises the information included in the Annual Report, other than

the Financial Statements and our auditor’s report thereon. The Directors are responsible

for the other information contained within the Annual Report.

Our opinion on the Financial Statements does not cover the other information and, except

to the extent otherwise explicitly stated in our report, we do not express any form of

assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the

other information is materially inconsistent with the Financial Statements or our knowledge

obtained in the course of the audit, or otherwise appears to be materially misstated.

If we identify such material inconsistencies or apparent material misstatements, we are

required to determine whether this gives rise to a material misstatement in the Financial

Statements themselves. If, based on the work we have performed, we conclude that there

is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

9. Responsibilities of Directors

As explained more fully in the Statement of Directors’ Responsibilities, the Directors are

responsible for the preparation of the Financial Statements and for being satisfied that

they give a true and fair view, and for such internal control as the Directors determine is

necessary to enable the preparation of Financial Statements that are free from material

misstatement, whether due to fraud or error.

In preparing the Financial Statements, the Directors are responsible for assessing the

Group’s and the Company’s ability to continue as a going concern, disclosing as applicable,

matters related to going concern and using the going concern basis of accounting unless

the directors either intend to liquidate the Group or the Company or to cease operations,

or have no realistic alternative but to do so.

10. Auditor’s responsibilities for the audit of the Financial

Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements

as a whole are free from material misstatement, whether due to fraud or error, and to

issue an auditor’s report that includes our opinion. Reasonable assurance is a high level

ofassurance,butisnotaguaranteethatanauditconductedinaccordancewithISAs(UK)

will always detect a material misstatement when it exists. Misstatements can arise from

fraud or error and are considered material if, individually or in the aggregate, they could

reasonably be expected to influence the economic decisions of users taken on the basis

oftheseFinancialStatements.

A further description of our responsibilities for the audit of the financial statements is

located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description

forms part of our auditor’s report.

11. Extent to which the audit was considered capable of detecting

irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations.

We design procedures in line with our responsibilities, outlined above, to detect material

misstatements in respect of irregularities, including fraud. The extent to which our

procedures are capable of detecting irregularities, including fraud is detailed below.

Independent Auditor’s Report continued

to the members of Barratt Developments PLC

Strategic Report Governance Financial Statements

155Barratt Developments PLC Annual Report and Accounts 2024

Report on the audit of the Financial statements

continued

11. Extent to which the audit was considered capable of detecting

irregularities, including fraud continued

11.1. Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities,

including fraud and non-compliance with laws and regulations, we considered the following:

• the nature of the industry and sector, control environment and business performance

including the design of the Group’s remuneration policies, key drivers for Directors’

remuneration, bonus levels and performance targets;

• the Group’s own assessment of the risks that irregularities may occur either as a result

offraudorerror;

• results of our enquiries of management, internal audit, internal legal counsel, the

Directors and the Audit and Risk Committee about their own identification and

assessment of the risks of irregularities, including those that are specific to the

Group’s sector;

• any matters we identified having obtained and reviewed the Group’s documentation of

their policies and procedures relating to:

• identifying, evaluating and complying with laws and regulations and whether they were

aware of any instances of non-compliance;

• detecting and responding to the risks of fraud and whether they have knowledge of any

actual, suspected or alleged fraud;

• the internal controls established to mitigate risks of fraud or non-compliance with

laws and regulations;

• the matters discussed among the audit engagement team and relevant internal

specialists, including tax, valuations, IT and fraud specialists, regarding how and where

fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that

may exist within the organisation for fraud and identified the greatest potential for

fraud in margin recognition, specifically any adjustments for house prices and build cost

assumptions. In common with all audits under ISAs (UK), we are also required to perform

specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the Group

operates in, focusing on provisions of those laws and regulations that had a direct effect

on the determination of material amounts and disclosures in the Financial Statements. The

key laws and regulations we considered in this context included the UK Companies Act,

Listing Rules, Building Safety Regulations and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a

direct effect on the Financial Statements but compliance with which may be fundamental

to the Group’s ability to operate or to avoid a material penalty. These included

environmental and health and safety regulations.

11.2. Audit response to risks identified

As a result of performing the above, we identified margin recognition as a key audit matter

related to the potential risk of fraud. The key audit matters section of our report explains the

matter in more detail and also describes the specific procedures we performed in response

tothatkeyauditmatter.

In addition to the above, our procedures to respond to risks identified included the following:

• reviewing the Financial Statement disclosures and testing to supporting documentation

to assess compliance with provisions of relevant laws and regulations described as

having a direct effect on the Financial Statements;

• enquiring of management, the Audit and Risk Committee, in-house and external legal

counsel concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that

may indicate risks of material misstatement due to fraud;

• reading minutes of meetings of those charged with governance and reviewing internal

audit reports;

• in addressing the risk of fraud through management override of controls, testing the

appropriateness of journal entries and other adjustments; assessing whether the

judgements made in making accounting estimates are indicative of a potential bias;

and evaluating the business rationale of any significant transactions that are unusual

oroutsidethenormalcourseofbusiness.

We also communicated relevant identified laws and regulations and potential fraud risks

to all engagement team members including internal specialists, and remained alert to any

indications of fraud or non-compliance with laws and regulations throughout the audit.

Independent Auditor’s Report continued

to the members of Barratt Developments PLC

156 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Report on other legal and regulatory requirements

12. Opinions on other matters prescribed by the Companies Act 2006

In our opinion the part of the directors’ remuneration report to be audited has been

properly prepared in accordance with the Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the strategic report and the directors’ report for the financial

year for which the Financial Statements are prepared is consistent with the Financial

Statements; and

• the Strategic Report and the Directors’ Report have been prepared in accordance with

applicable legal requirements.

In the light of the knowledge and understanding of the Group and the Company and their

environment obtained in the course of the audit, we have not identified any material

misstatements in the Strategic Report or the Directors’ Report.

13. Corporate Governance Statement

The Listing Rules require us to review the Directors’ statement in relation to going concern,

longer-term viability and that part of the Corporate Governance Statement relating to the

Group’s compliance with the provisions of the UK Corporate Governance Code specified for

our review.

Based on the work undertaken as part of our audit, we have concluded that each of the

following elements of the Corporate Governance Statement is materially consistent with

the Financial Statements and our knowledge obtained during the audit:

• the Directors’ statement with regards to the appropriateness of adopting the going

concern basis of accounting and any material uncertainties identified set out

on page 85;

• the Directors’ explanation as to its assessment of the Group’s prospects, the period

this assessment covers and why the period is appropriate set out on pages 85 to 87;

• the Directors’ statement on fair, balanced and understandable set out on page 148;

• the Board’s confirmation that it has carried out a robust assessment of the emerging

and principal risks set out on page 64;

• the section of the Annual Report that describes the review of effectiveness of risk

management and internal control systems set out on pages 63 and 64; and

• the section describing the work of the Audit and Risk Committee set out on pages

114 and 115.

14. Matters on which we are required to report by exception

14.1. Adequacy of explanations received and accounting records

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not received all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the Company, or returns adequate

for our audit have not been received from branches not visited by us; or

• the Company Financial Statements are not in agreement with the accounting records

and returns.

We have nothing to report in respect of these matters.

14.2. Directors’ remuneration

Under the Companies Act 2006 we are also required to report if in our opinion certain

disclosures of Directors’ remuneration have not been made or the part of the Directors’

Remuneration Report to be audited is not in agreement with the accounting records

and returns.

We have nothing to report in respect of these matters.

Independent Auditor’s Report continued

to the members of Barratt Developments PLC

Strategic Report Governance Financial Statements

157Barratt Developments PLC Annual Report and Accounts 2024

Report on other legal and regulatory requirements

continued

15. Other matters which we are required to address

15.1. Auditor tenure

Following the recommendation of the Audit and Risk Committee, we were appointed by the

shareholders at the Annual General Meeting held in 2007 to audit the Financial Statements

for the year ending 30 June 2008 and subsequent financial periods. The period of total

uninterrupted engagement including previous renewals and reappointments of the firm is

17 years, covering the years ending 30 June 2008 to 30 June 2024.

15.2. Consistency of the audit report with the additional report to the Audit

andRisk Committee

Our audit opinion is consistent with the additional report to the Audit and Risk Committee

we are required to provide in accordance with ISAs (UK).

16. Use of our report

This report is made solely to the Company’s members, as a body, in accordance with

Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so

that we might state to the Company’s members those matters we are required to state to

them in an auditor’s report and for no other purpose. To the fullest extent permitted by

law, we do not accept or assume responsibility to anyone other than the Company and the

Company’s members as a body, for our audit work, for this report, or for the opinions we

have formed.

As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency

Rule (DTR) 4.1.15R – DTR 4.1.18R, these financial statements form part of the Electronic

Format Annual Financial Report filed on the National Storage Mechanism of the FCA in

accordance with DTR 4.1.15R – DTR 4.1.18R. This Auditor’s Report provides no assurance over

whether the Electronic Format Annual Financial Report has been prepared in compliance

with DTR 4.1.15R – DTR 4.1.18R.

Jacqueline Holden FCA (Senior statutory auditor)

For and on behalf of Deloitte LLP

Statutory Auditor

London, United Kingdom

3 September 2024

Independent Auditor’s Report continued

to the members of Barratt Developments PLC

158 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

		2024	2023
Continuing operations	Notes	£m	£m
Revenue	2	4 ,1 6 8 . 2	5, 32 1.4
Cost of sales		(3, 658. 7)	(4 , 3 4 6 . 5)
Gross profit		50 9.5	9 74 . 9
Administrative expenses	3	(3 3 6 . 9)	(27 0 . 8)
Part-exchange income		333. 7	1 40.0
Part-exchange expenses		(331.6)	(1 3 6 .7)
Profit from operations	3	1 74 .7	7 0 7. 4
Finance income	6	4 7. 2	23.8
Finance costs	6	(5 3 .7)	(3 4. 9)
Net finance costs	6	(6 . 5)	(11. 1)
Share of post-tax profit from joint ventures	12	2.3	8.8
Profit before tax		170.5	7 0 5 .1
Tax	7	(5 6 . 4)	(1 74 . 8)
Profit for the year being total comprehensive income
recognised for the year		1 1 4 .1	53 0.3
Profit and total comprehensive income for the year attributable to the owners of the Company		1 1 4 .1	53 0.3
Earnings per share from continuing operations
Basic	8	11.8p	5 3. 2p
Diluted	8	1 1.6p	52 .6p

There was no other comprehensive income in either year.

The notes on pages 165 to 209 form an integral part of these Financial Statements.

Consolidated Income Statement and Statement of Comprehensive Income

Year ended 30 June 2024

Adjusted items:

Gross profit

Profit from

operations

Share of post-tax

profit from joint

ventures Profit before tax

Notes

2024

£m

2023

£m

2024

£m

2023

£m

2024

£m

2023

£m

2024

£m

2023

£m

Reported

profit 509.5 974.9 174.7 707.4 2.3 8.8 170.5 705.1

Cost

associated

with legacy

properties 4 180.0 158.2 180.0 158.2 12.6 23.7 192.6 181.9

Legacy

property

recoveries 4 (0.5) (2.7) (0.5) (2.7) — — (0.5) (2.7)

Costs incurred

in respect of

the all-share

offer for the

share capital

of Redrow plc 4 — — 22.4 — — — 22.4 —

Adjusted

profit 689.0 1,130.4 376.6 862.9 14.9 32.5 385.0 884.3

Strategic Report Governance Financial Statements

159Barratt Developments PLC Annual Report and Accounts 2024

								Total
							Group	Group
							retained	retained
							earnings	earnings
							due to	due to
				Capital		Share-	share-	share-	Non-
	Share		Merger	redemption	Own	based	holders	holders	controlling
	capital	Share	reserve	reserve	shares	payments	of the	of the	interests	Total
	(note 22)	premium	(note 23)	(note 24)	(note 25)	(note 26)	Company	Company	(note 27)	equity
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 1 July 2022	102.2	25 3.4	1 ,109.0	—	(2 7. 0)	29.0	4 ,1 6 3 . 9	4, 165.9	0.8	5 ,63 1. 3
Profit for the year being total comprehensive income recognised for the year ended 30 June 2023	—	—	—	—	—	—	530. 3	5 30. 3	—	5 30. 3
Dividend payments (note 9)	—	—	—	—	—	—	(36 0.0)	(36 0.0)	—	(360.0)
Distributions to non-controlling interests	—	—	—	—	—	—	—	—	(0 . 3)	(0. 3)
Issue of shares	—	0 .1	—	—	—	—	—	—	—	0 .1
Buyback and cancellation of shares	(4 . 8)	—	—	4.8	—	—	(2 0 1 . 3)	(20 1 . 3)	—	(2 0 1 . 3)
Share-based payments	—	—	—	—	—	10.2	—	10.2	—	10.2
Purchase of own shares by EBT	—	—	—	—	(1 4. 0)	—	—	(1 4. 0)	—	(1 4. 0)
Transfers in respect of share options	—	—	—	—	1 7. 8	(18 . 3)	(0 .7)	(1 . 2)	—	(1 . 2)
Tax on share-based payments	—	—	—	—	—	(0 .1)	1.4	1.3	—	1. 3
At 30 June 2023	9 7. 4	25 3.5	1,109.0	4. 8	(2 3 . 2)	20.8	4 ,1 3 3 . 6	4,1 3 1 . 2	0. 5	5,59 6.4
Profit for the year being total comprehensive income recognised for the year ended 30 June 2024	—	—	—	—	—	—	1 14 .1	1 1 4 .1	—	1 1 4 .1
Dividend payments (note 9)	—	—	—	—	—	—	(2 7 0. 6)	(27 0. 6)	—	(2 7 0. 6)
Distributions to non-controlling interests	—	—	—	—	—	—	—	—	(0 . 4)	(0 . 4)
Share-based payments	—	—	—	—	—	1 9.9	—	19. 9	—	19.9
Purchase of own shares by EBT	—	—	—	—	(2 3 . 3)	—	—	(2 3 . 3)	—	(2 3 . 3)
Transfers in respect of share options	—	—	—	—	9.6	(12 .1)	4.7	2 .2	—	2.2
Tax on share-based payments	—	—	—	—	—	0.8	—	0.8	—	0.8
At 30 June 2024	9 7. 4	253. 5	1 ,109.0	4.8	(3 6 . 9)	29.4	3,981.8	3 , 9 74 . 3	0.1	5 , 4 3 9 .1

The notes on pages 165 to 209 form an integral part of these Financial Statements.

Statement of Changes in Shareholders’ Equity

Group

160 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

capital

(note 22)

£m

premium

£m

Merger

reserve

(note 23)

£m

Capital

redemption

reserve

(note 24)

£m

Own

(note 25)

£m

Share-

based

payments

(note 26)

£m

Retained

earnings

£m

Total

retained

earnings

£m

Total

equity

£m

At 1 July 2022 102.2 253.4 1,109.0 — (27.0) 29.0 2,216.7 2,218.7 3,683.3

Profit for the year being total comprehensive income recognised for the year ended

30 June 2023 — — — — — — 501.9 501.9 501.9

Dividend payments (note 9) — — — — — — (360.0) (360.0) (360.0)

Issue of shares — 0.1 — — — — — — 0.1

Buyback and cancellation of shares (4.8) — — 4.8 — — (201.3) (201.3) (201.3)

Share-based payments — — — — — 10.2 — 10.2 10.2

Purchase of own shares by EBT — — — — (14.0) — — (14.0) (14.0)

Transfers in respect of share options — — — — 17.8 (18.3) (6.7) (7.2) (7.2)

Tax on share-based payments — — — — — — 0.5 0.5 0.5

At 30 June 2023 97.4 253.5 1,109.0 4.8 (23.2) 20.9 2,151.1 2,148.8 3,613.5

Profit for the year being total comprehensive income recognised for the year ended

30June2024 — — — — — — 511.0 511.0 511.0

Dividend payments (note 9) — — — — — — (270.6) (270.6) (270.6)

Share-based payments — — — — — 19.9 — 19.9 19.9

Purchase of own share for EBT — — — — (23.3) — — (23.3) (23.3)

Transfers in respect of share options — — — — 9.6 (12.1) 3.5 1.0 1.0

Tax on share-based payments — — — — — 0.1 — 0.1 0.1

At 30 June 2024 97.4 253.5 1,109.0 4.8 (36.9) 28.8 2,395.0 2,386.9 3,851.6

The notes on pages 165 to 209 form an integral part of these Financial Statements.

Statement of Changes in Shareholders’ Equity

Company

Strategic Report Governance Financial Statements

161Barratt Developments PLC Annual Report and Accounts 2024

		Group		Company
		2024	2023	2024	2023
	Notes	£m	£m	£m	£m
Assets
Non-current assets
Other intangible assets	10	184.5	1 94.9	—	—
Goodwill	10	8 52 .9	852 .9	—	—
Investments in subsidiary
undertakings	11	—	—	3,095.4	3,090.1
Investments in jointly controlled
entities	12	158 .5	129. 8	—	—
Property, plant and equipment	13	5 7. 5	5 8 .1	4.4	6.1
Right-of-use assets	14	41 . 2	45. 1	1.3	4.2
Deferred tax assets	7	—	—	2.2	2.6
Trade and other receivables	16	3.4	2.9	76.1	76.1
		1, 298 .0	1 , 2 8 3 .7	3,179.4	3,179.1
Current assets
Inventories	15	5,2 78.2	5,238.0	—	—
Trade and other receivables	16	20 1.9	1 8 2 .1	182.6	15.9
Current tax assets		31.8	3 1 .1	—	1.6
Cash and cash equivalents	17	1,065.3	1 , 2 6 9 .1	827.6	1,005.0
		6,577 .2	6 ,7 2 0 . 3	1,010.2	1,022.5
Total assets		7, 8 7 5 . 2	8,00 4.0	4,189.6	4,201.6
Liabilities
Non-current liabilities
Loans and borrowings	17	(200.0)	(200.0)	(200.0)	(200.0)
Trade and other payables	18	(1 7 2 . 0)	(1 8 8 .7)	—	—
Lease liabilities	14	(2 9. 4)	(3 3 .1)	(0.7)	(2.9)
Deferred tax liabilities	7	(4 5 . 0)	(5 3 . 5)	—	—
Provisions	19	(5 4 3 . 2)	(4 7 7. 9)	—	—
		(989 .6)	(9 5 3 . 2)	(200.7)	(202.9)

Balance Sheets

At 30 June 2024

		Group		Company
		2024	2023	2024	2023
	Notes	£m	£m	£m	£m
Current liabilities
Loans and borrowings	17	—	(3 . 4)	—	—
Trade and other payables	18	(1 , 0 5 5 .1)	(1 , 1 2 7. 4)	(128.2)	(383.9)
Lease liabilities	14	(13.4)	(1 3 .1)	(0.6)	(1.3)
Current tax liabilities		—	—	(8.5)	—
Provisions	19	(3 7 8 . 0)	(3 1 0 . 5)	—	—
		(1,446.5)	(1,45 4.4)	(137.3)	(385.2)
Total liabilities		(2,43 6. 1)	(2 ,4 0 7.6)	(338.0)	(588.1)
Net assets		5 , 4 3 9 .1	5 ,59 6.4	3,851.6	3,613.5
Equity
Share capital	22	9 7. 4	9 7. 4	97.4	97.4
Share premium		253.5	253 .5	253.5	253.5
Merger reserve	23	1,109.0	1,109.0	1,109.0	1,109.0
Capital redemption reserve	24	4.8	4.8	4.8	4.8
Total retained earnings		3 , 9 74 . 3	4 ,1 3 1 . 2	2,386.9	2,148.8
Equity attributable to the owners
of the Company		5,4 39.0	5,595.9	3,851.6	3,613.5
Non-controlling interests	27	0 .1	0. 5	—	—
Total equity		5, 4 3 9 .1	5 ,596 .4	3,851.6	3,613.5

The Financial Statements of Barratt Developments PLC (registered number 00604574) were

approved by the Board and authorised for issue on 3 September 2024.

Signed on behalf of the Board:

David Thomas Mike Scott

Chief Executive Chief Financial Officer

Parent Company Income Statement

In accordance with the provisions of Section 408 of the Companies Act 2006, a separate

Income Statement for the Company has not been presented. The Company’s profit for

theyearwas£511.0m(2023:£501.9m).

The notes on pages 165 to 209 form an integral part of these Financial Statements.

162 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

		Group		Company
		2024	2023	2024	2023
	Notes	£m	£m	£m	£m
Net cash inflow/(outflow) from operating activities (page 164)		96.2	465.5	(442.6)	20.0
Investing activities:
Purchase of property, plant and equipment	13	(7 .2)	(23. 1)	(1.1)	(2.6)
Proceeds from the disposal of property, plant and equipment		0.3	0 .1	—	—
Increase in amounts invested in jointly controlled entities	12	(38.3)	(18. 1)	—	—
Repayment of amounts invested in jointly controlled entities	12	4.8	40 .2	—	—
Distributions received from jointly controlled entities	12	7.1	34 .8	—	0.1
Dividends received from subsidiaries		—	—	516.0	500.0
Interest received		45.3	21.5	42.9	19.8
Net cash inflow from investing activities		12.0	55.4	557.8	517.3
Financing activities:
Dividends paid to equity holders of the Company	9	(270.6)	(36 0.0)	(270.6)	(360.0)
Distribution made to non-controlling interest	27	(0 .4)	(0. 3)	—	—
Purchase of own shares for the EBT		(23.3)	(1 4. 0)	(23.3)	(14.0)
Buy back and cancellation of shares		—	(201.3)	—	(201.3)
Proceeds from issue of share capital		—	0 .1	—	0.1
Payment of dividend equivalents		(0 .5)	(1.2)	(0.5)	(1.2)
Proceeds from the exercise of Sharesave options		2 .7	—	2.7	—
Repayment of lease liabilities	14	(16.5)	(13.9)	(0.9)	(1.3)
Net cash outflow from financing activities		(308. 6)	(5 90. 6)	(292.6)	(577.7)
Net decrease in cash, cash equivalents and bank overdrafts		(200 .4)	(69. 7)	(177.4)	(40.4)
Cash, cash equivalents and bank overdrafts at the beginning of the year		1,265. 7	1,335.4	1,005.0	1,045.4
Cash, cash equivalents and bank overdrafts at the end of the year	17	1,065.3	1,265. 7	827. 6	1,005.0

The notes on pages 165 to 209 form an integral part of these Financial Statements.

Cash Flow Statements

Year ended 30 June 2024

Strategic Report Governance Financial Statements

163Barratt Developments PLC Annual Report and Accounts 2024

		Group		Company
		2024	2023	2024	2023
Reconciliation of profit/(loss) from operations to cash flow from operating activities	Notes	£m	£m	£m	£m
Profit/(loss) from operations		1 7 4 .7	707.4	(12.4)	8.2
Depreciation of property, plant and equipment	13	7. 5	6 .1	2.8	3 .1
Depreciation of right-of-use assets	14	15.2	12.3	0.9	1.3
Amortisation of intangible assets	10	1 0.4	10 .5	—	—
(Reversal of impairment)/impairment of inventories	15	(2.2)	4 .7	—	—
Share-based payments expense/(credit)	26	19.9	10.2	6.0	(0.3)
Imputed interest on long-term payables	6	(40.2)	(21.4)	—	—
Imputed interest on lease arrangements	6	(1.8)	(1.2)	—	—
Amortisation of facility fees	6	(1 .6)	(1.9)	(1.6)	(1.9)
Total non-cash items		7. 2	19.3	8 .1	2.2
(Increase)/decrease in inventories		(3 8.0)	48.9	—	—
(Increase)/decrease in receivables		(19 .6)	60. 4	(157.8)	(0.2)
(Decrease)/increase in payables 1		(87. 2)	(337.6)	(254.4)	37.5
Increase in provisions	19	132.8	163.4	—	—
Total movements in working capital and provisions		(12. 0)	(64 .9)	(412.2)	37.3
Interest paid		(10 . 1)	(1 0. 4)	(26.1)	(27.7)
Tax paid		(63. 6)	(185.9)	—	—
Net cash inflow/(outflow) from operating activities		96.2	465.5	(442.6)	20.0

1 The working capital movements in land payables include non-cash movements due to imputed interest. Imputed interest is included within non-cash items in the statements above.

The notes on pages 165 to 209 form an integral part of these Financial Statements.

Cash Flow Statements continued

Year ended 30 June 2024

164 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements

Year ended 30 June 2024

1. Basis of preparation

Introduction

The Financial Statements for the Group and Company have been prepared in accordance

with UK adopted IAS in conformity with the requirements of the Companies Act 2006 and

in accordance with UK adopted IFRS. The Financial Statements have been prepared under

the historical cost convention as modified by the revaluation of share-based payments.

Group accounting policies

The significant Group accounting policies are included within the relevant notes to

the Financial Statements on pages 165 to 209.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of Financial Statements in conformity with UK adopted IFRS requires

the use of estimates and assumptions that affect the reported amounts of assets

and liabilities at the date of the Financial Statements, and the reported amounts

of revenues and expenses during the reporting period. Although these estimates are

based on the Directors’ best knowledge of the amounts, actual results may ultimately

differ from those estimates. The Directors have made no individual critical accounting

judgements that have a significant impact upon the Financial Statements, apart from

those involving estimations.

The most significant estimates made by the Directors in these Financial Statements,

which are the key sources of estimation uncertainty that may have a significant risk

of causing a material difference to the carrying amounts of assets and liabilities within

the next financial year, are:

• Margin recognition — see note 3; and

• Costs associated with legacy properties — see note 19.

Basis of consolidation

The Group Financial Statements include the results of Barratt Developments PLC (the

Company), a public company limited by shares and incorporated in the United Kingdom,

and all of its subsidiary undertakings, made up to 30 June. The Financial Statements of

subsidiary undertakings are consolidated from the date that control passes to the Group,

and up to the date control ceases.

Control is achieved when the Group becomes entitled to the variable returns of the

subsidiary and becomes exposed to its risks, and has the power to affect these risks and

returns. Acquired entities are accounted for using the acquisition method of accounting.

All transactions with subsidiaries and intercompany profits or losses are eliminated

on consolidation.

Going concern

In determining the appropriate basis of preparation of the Financial Statements, the

Directors are required to consider whether the Group can continue to meet its liabilities

and other obligations for the foreseeable future.

The Group’s business activities, together with factors that the Directors consider are

likely to affect its development, financial performance and financial position, are set out

in the Strategic Report on pages 1 to 87. The material financial and operational risks and

uncertainties that may affect the Group’s performance and their mitigation are outlined on

pages 63 to 70, and financial risks including liquidity, market, credit and capital risks are

outlined in note 30 to the Financial Statements.

At 30 June 2024, the Group held cash of £1,065.3m and total loans and borrowings

of £200.0m, comprising £200.0m Sterling USPP notes maturing in August 2027. These

balances, set against pre-paid facility fees, comprise the Group’s net cash of £868.5m,

presented in note 17.

Should further funding be required, the Group has a committed £700.0m RCF, subject to

compliance with certain financial covenants, that matures in November 2028, with a further

one-year extension period through to November 2029, if agreed between the Group and

its lenders.

As such, in consideration of its net current assets of £5,130.7m, the Directors are satisfied that

the Group has sufficient liquidity to meet its current liabilities and working capital requirements

Long-term housing market fundamentals reflect a significant imbalance between housing

supply and demand. Despite this imbalance, the housing market in FY24 remained constrained

by significant macro-economic headwinds including higher interest rates and inflation,

affecting economic growth, consumer confidence and mortgage affordability. Whilst

there are positive signs, including recent reductions in interest rates and positive political

messaging on improving the planning system and delivering new housing, uncertainty

remains over the general economic outlook and the outcome of industry-specific challenges

such as further building safety costs or greenhouse gas emissions legislation along with

material cost inflation and supply chain disruption. These, and other disruptions, could

result in flat or negative economic growth, reduced buyer confidence, reduced mortgage

availability and affordability, falls in house prices or land values and cost increases

associated with raw materials, suppliers, subcontractors and employees.

On 21 August 2024 the Group acquired the full share capital of Redrow plc in an all share

transaction. In accordance with standard practice, the Competition and Markets Authority

(the CMA) has issued an Initial Enforcement Order requiring the Barratt and Redrow

businesses to continue to operate independently until the CMA has formally accepted

the undertakings proposed by the parties in response to the findings of its phase 1

investigation, or otherwise agrees to integration taking place. The sharing of competitively

sensitive information between the businesses is prohibited while the Enforcement Order is

in place. In recognition of the need for the pre-acquisition business to be able to support

itself independently, the Directors have considered the ability to continue trading of both

the group of companies that existed prior to the acquisition (the ‘Barratt group’) and the

new group including Redrow plc and its subsidiaries (the ‘combined group’).

Strategic Report Governance Financial Statements

165Barratt Developments PLC Annual Report and Accounts 2024

1. Basis of preparation continued

Going concern continued

To assess the Barratt group’s resilience to more adverse outcomes, its forecast

performance was sensitised to reflect a series of scenarios based on the Barratt group’s

principal risks and the downside prospects for the UK economy and housing market

presented in the latest available external economic forecasts. The Directors consider the

principal risks of the Barratt group to be applicable to the combined group. A combined

group forecast was therefore sensitised to the same scenarios, with no synergies assumed.

For the purposes of this assessment, it was assumed that the financing facilities available

to the combined group were those currently available to the Barratt group, and that all

associated financial covenants would apply. It was assumed that the combined group

would undertake mitigating actions in response to the challenging circumstances modelled,

primarily a reduction in investment in land and work in progress in line with the fall in

expected sales, without preventing the combined group’s ability to grow over the long term.

The above analysis included a reasonable worst-case scenario in which the principal risks

manifest in aggregate to a severe but plausible level. This assumed that average private

selling prices fall by 5%, sales volumes fall by 15% and construction costs increase by 2% in

addition to the base forecasts, in addition to the implementation of a building safety levy,

further increases in legacy property costs and the acceleration of regulatory changes to

reduce indirect greenhouse gas emissions.

The effects were modelled over the 12 months from the date of the signing of these

Financial Statements, alongside reasonable mitigation that the Barratt and combined

groups would expect to undertake in such circumstances, primarily reductions

in investment in inventories and uncommitted land spend in line with the fall in

expected sales.

In all scenarios, including the reasonable worst case, the Barratt group and combined

group are able to comply with the financial covenants, operate within current facilities and

meet liabilities as they fall due for a period of at least 12 months from the date of signing

of these Financial Statements. The Group has a policy of maintaining a £150m headroom

on its available facilities and both the Barratt group and combined group would remain in

compliance with this policy throughout the review period.

Accordingly, the Directors consider there to be no material uncertainties that may cast

significant doubt on the Group’s ability to continue to operate as a going concern. They

have formed a judgement that, at the time of approving the Financial Statements, there is

a reasonable expectation that the Group has adequate resources to continue in operational

existence for the foreseeable future, being at least 12 months from the date of signing of

these Financial Statements. For this reason, they continue to adopt the going concern basis

in the preparation of these Financial Statements.

Application of accounting standards

During the year ended 30 June 2024, the Group has applied accounting policies

and methods of computation consistent with those applied in the prior year.

During the year, the Group has adopted the following new and revised standards

and interpretations which have had no material impact on the Financial Statements:

• Amendments to IAS 1: Disclosure of material accounting policies;

• Amendments to IAS 8: Definition of accounting estimates;

• Amendments to IAS 12: Deferred tax related to assets and liabilities arising from

a single transaction; and

• Amendments to, and initial application of IFRS 17: Insurance Contracts.

Impact of standards and interpretations in issue but not yet effective

At the date of approval of these Financial Statements, there were a number of standards,

amendments and interpretations that have been published and are mandatory for the

Group’s accounting periods beginning on or after 1 July 2024 and later periods. None of

these are expected to have a material impact on the Group. The Group has not early

adopted any standard, amendment or interpretation.

2. Revenue

The Group’s revenue derives principally from the sale of the homes we build.

Revenue from the sale of residential and commercial properties

Revenue is recognised at legal completion in respect of the total proceeds of building

and development. Revenue is measured at the fair value of consideration received or

receivable and represents the amounts receivable for the property, net of discounts

and VAT.

Notes to the Financial Statements continued

Year ended 30 June 2024

166 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

2. Revenue continued

Revenue on contracts recognised over time

The Group considers all contracts with commercial customers and registered providers

for affordable housing on a contract-by-contract basis and determines the appropriate

revenue recognition based on the particular terms of that contract. For the majority of

such contracts, there is a single performance obligation for which revenue is recognised at a

point in time, when construction has been completed and control is transferred to the

customer. The Group recognises revenue over time in relation to certain contracts with

registered providers only in circumstances in which control of the associated land is

transferred to the customer before or during construction. Revenue is only recognised

from the point at which control of the associated land is transferred, considering the

rights to economic benefit as well as legal title. Revenue is recognised because the

construction activity enhances an asset that is controlled by the customer.

Where the outcome of a contract on which revenue is recognised over time can be

estimated reliably, revenue is recognised by reference to the stage of completion of

contract activity at the balance sheet date. This is normally measured by surveys

of work performed to date. The Group is satisfied that it is appropriate to measure

performance by reference to surveys of work performed to date, because these

surveys identify the extent to which benefits have been transferred to the customer.

Variations to, and claims arising in respect of, such contracts are included in revenue

to the extent that they have been agreed with the customer. Where the outcome of

a contract on which revenue is recognised over time cannot be estimated reliably,

revenue is recognised to the extent of contract costs incurred. When it is probable

that the total costs on a contract will exceed total contract revenue, the expected loss

is immediately recognised as an expense in the Income Statement.

Other revenue

Revenue from separate contracts related to the development of homes is recognised

on completion of the performance obligation to which it relates and is included in

other revenue. Revenue from warranties is recognised on a straight-line basis over the

warranty period. Revenue from commercial contract management fees is recognised

in the period in which it becomes receivable and is included within other revenue.

Revenue from planning promotion agreements is recognised at the point at which

contractual obligations are satisfied.

An analysis of the Group’s continuing revenue is as follows:

		Residential completions 1	Revenue
	2024	2023	2024	2023
	Number	Number	£m	£m
Revenue from private residential
sales	10,666	12,456	3,668.5	4,578.5
Revenue from affordable
residential sales	2,802	3,922	463.1	655.8
Revenue from commercial sales	—	—	21.9	64.7
Revenue from planning promotion
agreements	—	—	12.9	20.4
Sundry revenue	—	—	1.8	2.0
	13,468	16,378	4,168.2	5,321.4

1 Residential completions exclude JV completions of 536 homes (2023: 828) in which the Group has an interest.

Included within Group revenue is £218.2m (2023: £192.7m) of revenue from construction

contracts on which revenue is recognised over time by reference to the stage of completion

of work on the contracts (note 20). Of this amount, £8.9m (2023: £4.0m) was included in

the contract liability balance at the beginning of the year.

Revenue includes £564.6m (2023: £274.5m) of revenue generated where the sale has

been achieved using part-exchange incentives. Proceeds received on the disposal of

part-exchange properties are presented separately on the face of the Income Statement

and are not included in revenue on the basis that they are incidental to the main

revenue-generating activities of the Group.

3. Profit from operations

Profit from operations includes all of the revenue and costs derived from the Group’s

operating businesses. Profit from operations excludes finance costs, finance income,

the Group’s share of profits or losses from JVs and tax.

The Group’s principal activity is housebuilding. None of the other business activities

undertaken by the Group, individually or in aggregate, account for more than 10% of

the Group’s revenue, profit or total assets and do not meet the IFRS 8 thresholds for

disclosure. The operating results of these activities are not presented separately to the

Board. Therefore, no segmental information is presented in these Financial Statements.

Strategic Report Governance Financial Statements

167Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

3. Profit from operations continued

Margin recognition

In order to determine the profit that the Group is able to recognise on its

developments in a specific period, the Group allocates site-wide development costs

between homes built in the current year and in future years. It also has to estimate

costs to complete on such developments and make estimates relating to future sales

price margins on those developments and homes. In making these assessments there

is a degree of inherent uncertainty.

The Group’s site valuation process determines the forecast profit margin for each site.

The valuation process acts as a method of allocating land costs and construction work

in progress costs of a development to each individual plot and drives the recognition

of costs in the Income Statement as each plot is sold. Any changes in the forecast

profit margin of a site from changes in sales prices or costs to complete are recognised

across all homes sold in both the current period and future periods. This ensures that

the forecast site margin achieved on each individual home is equal for all current year

completions and future plots across the development.

Management has performed a sensitivity analysis to assess the impact of a change in

estimated future costs or forecast selling prices for developments on which sales were

recognised in the year. A 2% increase in the forecast costs to complete would increase

site-cost allocation in cost of sales in 2024 by £24.9m, resulting in a reduction in

gross margin of 60 bps. A 3% decrease in forecast private sales prices would increase

site-cost allocation in cost of sales in 2024 by £43.6m, resulting in an reduction in

gross margin of 100 bps.

Depreciation of right-of-use assets

Right-of-use assets are depreciated in the Income Statement in equal instalments

to the earlier of the end of the lease term or the end of the useful life of the asset.

Part-exchange income and expenses

Income on the sale of a part-exchange property is recognised at legal completion

at the fair value of consideration received or receivable for the property.

Part-exchange properties are recognised in inventories at the lower of cost, being

their fair value at acquisition, and their net realisable value. The amount of any write

down of inventories to net realisable value, or reversal of a previous write down, is

recognised in the Income Statement in the period in which it occurs.

The carrying amount of a part-exchange property is recognised as an expense in the

period in which the related income is recognised. Maintenance costs are recognised

in the Income Statement in the period in which they are incurred.

Profit from operations is stated after charging/(crediting):

		2024	2023
	Notes	£m	£m
Cost of inventories recognised as an expense in cost
of sales		3,241.6	3,907.3
Employee costs (including Directors)	5	524.0	527.2
Adjusted items:
Costs associated with legacy properties	4	180.0	158.2
Amounts associated with legacy properties recovered
from third parties	4	(0.5)	(2.7)
Costs incurred in respect of the all-share offer for the share capital of Redrow plc	4	22.4	—
Depreciation of property, plant and equipment	13	7.5	6 .1
Depreciation of right-of-use-assets	14	15.2	12.3
Amortisation of intangible assets	10	10.4	10.5

Profit from operations is stated after charging the Directors’ emoluments disclosed in the

Remuneration Report on pages 123 to 145 and in note 5.

The Group does not recognise income from supplier rebates until it can be calculated

reliably and it is certain that it will be received from suppliers. During the year, £34.6m

(2023: £32.8m) of supplier rebate income was included within profit from operations.

Notes to the Financial Statements continued

Year ended 30 June 2024

168 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

3. Profit from operations continued

Administrative expenses

Administrative expenses of £336.9m (2023: £270.8m) include sundry income of £14.8m

(2023: £16.7m), which principally comprises management fees receivable from JVs,

the sale of freehold reversions, forfeit deposits and ground rent receivable.

Auditor’s remuneration

The remuneration paid to Deloitte LLP, the Group’s principal auditor, is disclosed below:

	2024	2023
	£000	£000
Fees payable to the Company’s auditor for the audit of the Company and Consolidated Financial Statements	1,023	852
Fees payable to the Company’s auditor for the audit of the Company’s subsidiaries	195	186
Total audit fees	1,218	1,038
Audit-related assurance services 1	89	43
Other services 2	230	230
Total fees for other services	319	273
Total fees related to the Company and its subsidiaries	1,537	1,311

1 Audit-related assurance services comprise the review of the Interim Report.

2 Other services comprise assurance services over selected ESG metrics and compliance with the recommendations of the TCFD and review

procedures over selected non-financial disclosures in the Annual Report.

Details of the Group’s policy on the use of the Company’s principal auditor for non-audit

services and auditor independence are set out in the Audit and Risk Committee Report on

pages 112 to 120. No services were provided under contingent fee arrangements.

In addition to the remuneration paid to the Company’s auditor for services related to the

Company and its subsidiaries, the auditor received the following remuneration from JVs in

which the Group participates:

	2024	2023
	£000	£000
The audit of the Group’s JVs pursuant to legislation 1	—	80
Total fees related to joint ventures	—	80

1 The Group’s JVs are no longer audited by the Group auditor.

4. Adjusted items

Adjusted items

In determining whether an item should be presented as an adjustment to IFRS measures,

the Group considers items that are material to the Group in aggregate and have arisen

from one-off or unusual circumstances that could not reasonably have been expected

to arise from normal trading. If an item meets these criteria the Board then exercises

judgement as to whether the item should be classified as an allowable adjustment to

IFRS. Examples of events that may give rise to the classification of items as adjusted

are charges or credits in respect of legacy properties, the restructuring of existing and

newly acquired businesses, and certain government grants.

The Directors use these adjusted measures, along with IFRS measures, to assess the

operational performance of the Group as detailed in the key performance indicators

section of the Strategic Report on pages 12 to 15.

	2024	2023
	£m	£m
Adjusted items in cost of sales:
Costs incurred in respect of legacy properties	180.0	158.2
Amounts in respect of legacy properties recovered from third parties	(0.5)	(2.7)
Total adjusted items in cost of sales	179.5	155.5
Adjusted items in administrative expenses:
Costs incurred in respect of the all-share offer for the share
capital of Redrow plc	22.4	—
Adjusted items in share of post-tax profit from joint ventures:
Costs incurred in respect of legacy properties by joint ventures	12.6	23.7
Total adjusted items	214.5	179.2

Costs incurred in respect of legacy properties

The adjusted costs in the year, associated with Group legacy properties, comprise additions

to provisions of £182.5m, provision releases of £3.5m, a charge of £1.0m due to the revaluation of

the provisions at the reporting date and reimbursements recognised directly in the Income

Statement of £0.5m. In addition £12.6m of net costs in respect of JV legacy properties were

incurred in the year. Further details of provisions movements are provided in note 19.

Strategic Report Governance Financial Statements

169Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

4. Adjusted items continued

Costs incurred in respect of the acquisition of Redrow plc

On 7 February 2024, the Group announced an offer to acquire the entire share capital

of Redrow plc through an all-share transaction. The transaction was approved by the

shareholders of both groups on 15 May 2024 and legally completed on 21 August 2024 as

disclosed in note 31. In the course of progressing the transaction, during the year the Group

has incurred £22.4m in adviser fees. The total costs that will be incurred are expected to

be material in aggregate.

5. Key management, employees and retirement benefit obligations

Key management and employees

Key management personnel, as defined under IAS 24: ‘Related Party Disclosures’, have been

identified as the Board of Directors, as the controls operated by the Group ensure that all

key decisions are reserved for the Board. Detailed disclosures of individual remuneration,

pension entitlements and share options for those Directors who served during the year are

given in the audited sections within the Remuneration Report on pages 136 to 142.

A summary of key management remuneration is as follows:

	2024	2023
	£m	£m
Salaries and fees (including pension compensation)	3.0	3 .1
Social security costs 1	0.8	1.0
Performance bonus	2.7	1.2
Benefits	0.1	0.1
Share-based payments 2	1.8	(0.3)
Tot a l	8.4	5.1

1 Excluded from the Executive Directors’ and Non-Executive Directors’ single figure of remuneration tables on page 136.

2 IFRS 2: ‘Share-Based Payments’ charge/(credit) attributable to key management.

Total employee numbers and costs are as follows:

	Group		Company
	2024	2023	2024	2023
	Number	Number	Number	Number
Average employee numbers
(excluding sub-contractors and including Directors)	6,451	7,031	499	490

		Group		Company
		2024	2023	2024	2023
	Notes	£m	£m	£m	£m
Employee costs
(includingDirectors):
Wages and salaries
including bonuses		429.8	443.2	50.5	47.8
Redundancy costs		3.1	2.0	1.3	0.4
Social security costs		50.0	52.6	7.1	6.8
Other pension costs		21.2	19.2	2.4	2 .1
Share-based payments	26	19.9	10.2	6.0	(0.3)
Employee costs for the year		524.0	527.2	67.3	56.8

The majority of the costs of the Company’s employees are charged to other Group companies.

Retirement benefit obligations

The Group operates several defined contribution pension schemes.

Defined contribution schemes

The Group’s contributions to the schemes are charged in the Income Statement in the

year in which the scheme members become entitled to contributions.

The Group operates defined contribution retirement benefit schemes for all qualifying

employees, under which it pays contributions to independently administered funds.

Contributions are based upon a fixed percentage of the employee’s pay and once these

have been paid, the Group has no further obligations under these schemes.

	2024	2023
	£m	£m
Contributions during the year:
Group defined contribution schemes’ Consolidated Income
Statement charge	21.2	19.2

At the balance sheet date, there were outstanding contributions of £3.2m (2023: £2.8m),

which were paid on or before the due date.

Notes to the Financial Statements continued

Year ended 30 June 2024

170 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

6. Net finance costs

Finance costs and income

The Group recognises finance costs and income on bank borrowings, deposits and other

borrowings in the Income Statement in the period to which they relate. Imputed interest

on discounted assets, including land purchased on deferred terms and leased assets, is

charged to the Income Statement over the period of settlement or lease period respectively.

	2024	2023
	£m	£m
Finance income:
Finance income on short-term bank deposits	(44.9)	(22.0)
Other interest receivable	(2.3)	(1.8)
	(47.2)	(23.8)
Finance costs:
Interest on loans and borrowings	9.4	9.3
Imputed interest on long-term payables	40.2	21.4
Finance charge on leased assets	1.8	1.2
Amortisation of facility fees	1.6	1.9
Other interest payable	0.7	1.1
	53.7	34.9
Net finance costs	6.5	11.1

The weighted average interest rates (excluding fees) paid in the year were as follows:

	Group		Company
	2024	2023	2024	2023
	%	%	%	%
USPP notes	2.8	2.8	2.8	2.8

7. Tax

All profits of the Group are subject to UK tax.

The current year tax charge has been provided for, by the Group and the Company, at a standard

effective rate, inclusive of RPDT, of 29.0% (2023: 24.5%). The closing deferred tax assets

and liabilities have been provided in these Financial Statements at a rate of 25.0%-29.0%

(2023: 20.5%-29.0%) on the temporary differences giving rise to these assets and liabilities.

Tax

The tax currently payable is based on the taxable profit for the year. Taxable profit

differs from net profit as reported in the Income Statement because it excludes

items of income or expense that are taxable or deductible in other years and it further

excludes items that are never taxable or deductible. The Group’s liability for current

tax is calculated using tax rates that have been enacted or substantively enacted at

the balance sheet date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences

between the carrying amounts of assets and liabilities in the Financial Statements

and the corresponding tax bases used in the computation of taxable profit, and is

accounted for using the balance sheet liability method. Deferred tax is measured on

a non-discounted basis using the tax rates and laws that have then been enacted or

substantively enacted by the balance sheet date, and is charged or credited to the

Income Statement, except when it relates to items charged or credited directly to

other comprehensive income or equity, in which case the deferred tax is also dealt

with in other comprehensive income or equity.

Deferred tax liabilities are generally recognised for all taxable temporary differences

and deferred tax assets are recognised to the extent that it is probable that taxable

profits will be available against which deductible temporary differences can be utilised.

Such assets and liabilities are not recognised if the temporary difference arises from

goodwill or from the initial recognition (other than in a business combination) of

other assets and liabilities in a transaction that affects neither the taxable profit nor

the accounting profit. Deferred tax liabilities are recognised for taxable temporary

differences arising on investments in subsidiaries and interests in JVs, except where

the Group is able to control the reversal of the temporary difference and it is probable

that the temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date

and reduced to the extent that it is no longer probable that sufficient taxable profits

will be available to allow all or part of the asset to be recovered. Deferred tax assets

and liabilities are offset when there is a legally enforceable right to set off current tax

assets against current tax liabilities and when they relate to taxes levied by the same

tax authority and the Group intends to settle its current tax assets and liabilities on

a net basis.

Strategic Report Governance Financial Statements

171Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

7. Tax continued

Tax recognised in the Income Statement

The tax expense represents the sum of the tax currently payable and deferred tax.

	2024	2023
Analysis of the tax charge for the year	£m	£m
Current tax:
UK corporation tax on profits for the year	54.8	147.2
RPDT for the year	6 .1	26.0
Adjustments in respect of previous years	3.2	(6.7)
	64.1	166.5
Deferred tax:
Origination and reversal of temporary differences	(6.1)	1.8
Adjustment in respect of previous years	(1.6)	7.2
Impact of change in tax rates	—	(0.7)
	(7.7)	8.3
Tax charge for the year	56.4	174.8

Factors affecting the tax charge for the year

The tax rate assessed for the year is higher (2023: higher) than the standard effective

rate of tax in the UK of 29.0% (inclusive of corporation tax and RPDT) (2023: 24.5%).

The differences are explained below:

	2024	2023
	£m	£m
Profit before tax	170.5	705.1
Profit before tax multiplied by the standard rate of tax of 29.0%
(inclusive of corporation tax and RPDT) (2023: 24.5%)	49.4	172.7
Effects of:
Other items including non-deductible expenses and non- taxable income	8.0	4.5
Additional tax relief for land remediation costs	(2.6)	(2.2)
Adjustment in respect of previous years	1.6	0.5
Impact of change in tax rates	—	(0.7)
Tax charge for the year	56.4	174.8

Tax recognised in equity

In addition to the amount charged to the Consolidated Income Statement, a net current

and deferred tax credit of £0.8m (2023: £1.3m) was recognised directly in equity.

Factors affecting future tax charges

The Organisation for Economic Cooperation and Development (OECD) Pillar Two model rules

are designed to ensure that large multinational groups incur a 15% minimum effective tax

rate in each jurisdiction in which they operate. Pillar Two legislation was enacted in the

UK in June 2023 and will be effective for the Group’s financial year beginning 1 July 2024.

The Group has applied the mandatory temporary exception under IAS 12 in relation to the

accounting for deferred taxes arising from the implementation of the Pillar Two legislation.

The Group operates in the UK and is subject to tax at 29.0% on all its residential development

activities, comprising UK corporation tax (25.0%) and UK residential property developer tax

(4.0%). The Group has performed an assessment of the Group’s potential exposure to Pillar

Two income taxes in the UK and, based on the assessment, the Group does not expect a

potential exposure to Pillar Two top-up taxes. Management is not currently aware of any

circumstances under which this might change

Notes to the Financial Statements continued

Year ended 30 June 2024

172 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

7. Tax continued

Deferred tax

All deferred tax relates to the UK and is stated on a net basis as the Group has a legally

enforceable right to set off the recognised amounts and intends to settle on a net basis.

The Group recognised a net deferred tax liability with the following movements in the year:

				Group
				Accelerated
	Share			capital	Customer	Other
	options	Losses	Brands	allowances	contracts	(net)	Total
	£m	£m	£m	£m	£m	£m	£m
At 1 July 2022	3.8	—	(31.7)	0.5	(24.7)	7.0	(45.1)
Year ended 30 June 2023:
Income Statement
(charge)/credit	(0.9)	—	0.1	(11.5)	3.4	0.6	(8.3)
Amounts taken
directly to equity	(0.1)	—	—	—	—	—	(0.1)
At 30 June 2023	2.8	—	(31.6)	(11.0)	(21.3)	7.6	(53.5)
Comprising:
Deferred tax assets	2.8	—	—	—	—	7.6	10.4
Deferred tax liabilities	—	—	(31.6)	(11.0)	(21.3)	—	(63.9)
Year ended 30 June 2024:
Income Statement
credit/(charge)	2.2	2.2	0.2	(0.2)	2.1	1.2	7.7
Amounts taken
directly to equity	0.8	—	—	—	—	—	0.8
At 30 June 2024	5.8	2.2	(31.4)	(11.2)	(19.2)	8.8	(45.0)
Comprising:
Deferred tax assets	5.8	2.2	—	—	—	8.8	16.8
Deferred tax liabilities	—	—	(31.4)	(11.2)	(19.2)	—	(61.8)

The deferred tax liability in respect of indefinite life and other brands represents

the amount of tax that would become due if the brands were sold at their book value.

There is no intention to sell the indefinite life brands in the foreseeable future and it is

not anticipated that any of the deferred tax liability in respect of the indefinite life brands

will reverse in the 12 months following the balance sheet date. The deferred tax asset in

respect of share schemes represents an estimate of the future tax deduction available on

the exercise or vesting of awards under those schemes.

While it is anticipated that an element of the remaining deferred tax assets and liabilities

will reverse during the 12 months following the balance sheet date, at present it is not

possible to accurately quantify the value of all of these reversals.

In addition to the deferred tax liability shown above, the Group has not recognised

a deferred tax asset of £10.2m (2023: £9.6m) in respect of capital and other losses

amounting to £35.1m (2023: £33.3m) because these are not considered recoverable

in the foreseeable future.

The Company recognised a deferred tax asset with the following movements in the year:

		Company
		Accelerated
	Share	capital	Other
	options	allowances	(net)	Total
	£m	£m	£m	£m
At 1 July 2022	1.3	1.4	0.5	3.2
Year ended June 2023:
Income Statement (charge)/credit	(0.4)	(0.5)	0.3	(0.6)
At 30 June 2023	0.9	0.9	0.8	2.6
Comprising:
Deferred tax assets	0.9	0.9	0.8	2.6
Year ended 30 June 2024:
Income Statement credit/(charge)	0.3	—	(0.8)	(0.5)
Amounts taken directly to equity	0.1	—	—	0.1
At 30 June 2024	1.3	0.9	—	2.2
Comprising:
Deferred tax assets	1.3	0.9	—	2.2

Strategic Report Governance Financial Statements

173Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

8. Earnings per share

The earnings per share from continuing operations were as follows:

	2024	2023
	Pence	Pence
Basic earnings per share	11.8	53.2
Diluted earnings per share	11.6	52.6
Adjusted basic earnings per share	28.3	67.3
Adjusted diluted earnings per share	27. 8	66.5

Basic earnings per share is calculated by dividing the profit for the year attributable to

ordinary shareholders of the Company by the weighted average number of ordinary shares

in issue during the year, excluding those held by the EBT that do not attract dividend

equivalents and which are treated as cancelled.

Diluted earnings per share is calculated by dividing the profit for the year attributable to

ordinary shareholders of the Company by the weighted average number of ordinary shares

in issue adjusted to assume conversion of all potentially dilutive share options from the

start of the year.

Adjusted basic and adjusted diluted earnings per share exclude the impact of adjusted

items and any associated net tax amounts.

	2024	2023
Profit attributable to ordinary shareholders of the
Company (£m)	114.1	530.3
Adjusted items (£m)	214.5	179.2
Tax on adjusted items (£m)	(54.4)	(39.3)
Adjusted profit attributable to ordinary shareholders of the Company (£m)	274.2	670.2
Weighted average number of shares in issue (million)	974.6	1,000.1
Weighted average number of shares in EBT (million)	(5.8)	(3.8)
Weighted average number of shares for basic earnings
per share (million)	968.8	996.3
Weighted average number of shares in issue (million)	974.6	1,000.1
Adjustment to assume conversion of all potentially
dilutive shares (million)	12.5	8.4
Weighted average number of shares for diluted earnings
per share (million)	9 87.1	1,008.5

9. Dividends

	2024	2023
	£m	£m
Amounts recognised as distributions to equity shareholders
in the year:
Final dividend for the year ended 30 June 2023 of 23.5p
(2022:25.7p)per share	228.0	259.8
Interim dividend for the year ended 30 June 2024 of 4.4p
(2023: 10.2p) per share	42.6	100.2
Total dividends distributed to equity shareholders in the year	270.6	360.0

	2024	2023
	£m	£m
Proposed final dividend for the year ended 30 June 2024 of 11.8p (2023: 23.5p) per share 1	170 .2	227 .9

1 The cost of the proposed dividend is calculated based upon the number of shares ranking for dividend at the balance sheet date, as adjusted,

in the current year, for the issue of shares used in the acquisition of Redrow plc.

The final dividend of 11.8 pence per share was approved by the Board on 3 September 2024

and has not been included as a liability as at 30 June 2024.

10. Goodwill and intangible assets

Goodwill

Goodwill arising on consolidation (see note 32 for the Group policy on consolidation)

represents the excess of the fair value of the consideration over the fair value of the

separately identifiable net assets and liabilities acquired.

Goodwill arising on the acquisition of subsidiary undertakings and businesses is

capitalised as an asset but reviewed for impairment at least annually.

For the purpose of impairment testing, goodwill is allocated to each of the Group’s

cash-generating units, or groups of cash-generating units, expected to benefit from

the synergies of the combination at acquisition. Cash-generating units to which

goodwill has been allocated are tested for impairment. If the recoverable amount of

the cash-generating unit is less than the carrying amount of the unit, the impairment

loss is allocated first to reduce the carrying amount of any goodwill allocated to the

unit and then to the other assets of the unit pro rata on the basis of the carrying

amount of each asset in the unit. Any impairment loss is recognised immediately

in the Income Statement and is not subsequently reversed.

Notes to the Financial Statements continued

Year ended 30 June 2024

174 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

10. Goodwill and intangible assets continued

	Group
	2024	2023
Goodwill	£m	£m
Cost
At 1 July and 30 June	87 7.4	877.4
Accumulated impairment losses
At 1 July and 30 June	24.5	24.5
Carrying amount
At 30 June	852.9	852.9

The Group’s goodwill relating to the acquisition of Wilson Bowden Limited in 2007 has a

carrying value of £792.2m and goodwill relating to the 2019 acquisition of Oregon Timber

Frame Limited has a carrying value of £13.7m, both relating to the housebuilding business.

In addition, the Group has goodwill of £47.0m relating to the Group’s land promotion

business, following the 2022 acquisition of Gladman Developments Limited.

Other intangible assets

Brands

The Group has capitalised, as intangible assets, brands that have been acquired.

Acquired brand values are calculated using discounted cash flows. Where a brand is

considered to have a finite life, it is amortised over its useful life on a straight-line

basis. Where a brand is capitalised with an indefinite life, it is not amortised. The factors

that contribute to the durability of brands capitalised are that there are no material legal,

regulatory, contractual, competitive, economic or other factors that limit the useful life

of these intangible assets. Internally generated brands are not capitalised.

The Group carries out an annual impairment review of its indefinite life brand as part

of the review of the carrying value of goodwill, by performing a value in use calculation,

using a discount factor based upon the Group’s pre-tax weighted average cost of capital.

Customer contracts

The Group has capitalised, as intangible assets, acquired customer contracts.

Customer contracts are valued at the present value of future cash flows less

contributory asset charges and are amortised on a straight-line basis in line with

contract relationships at the acquisition date.

				Group
				Customer
		Brands		contracts		Total
	2024	2023	2024	2023	2024	2023
Other intangible assets	£m	£m	£m	£m	£m	£m
Cost
At 1 July	118.7	118.7	98.9	98.9	217.6	217.6
Acquired in the year	—	—	—	—	—	—
Amounts written off	—	—	—	—	—	—
At 30 June	118.7	118.7	98.9	98.9	217.6	217.6
Amortisation
At 1 July	8.7	8.1	14.0	4.1	22.7	12.2
Amortisation in the year	0.5	0.6	9.9	9.9	10.4	10.5
Amounts written off	—	—	—	—	—	—
At 30 June	9.2	8.7	23.9	14.0	33.1	22.7
Carrying amount
At 30 June	109.5	110.0	75.0	84.9	184.5	194.9

The Group does not amortise the housebuilding brand acquired with Wilson Bowden, being

David Wilson Homes, valued at £100.0m, as the Directors consider that this brand has an

indefinite useful economic life due to the Group intending to hold and support the brand

for an indefinite period, and there are no factors that would prevent it from doing so.

In 2022, the Group acquired brands valued at £10.8m and customer contracts valued

at £98.9m with Gladman Developments Limited. The customer contracts are amortised

on a straight-line basis over the expected life of the contracts; the brands acquired are

amortised on a straight-line basis over a 20-year period.

The cost of brands disclosed above also includes £0.9m acquired with Oregon Timber

Frame Limited in 2019 and £7.0m in respect of Wilson Bowden Developments Limited,

both of which have been fully amortised or impaired in previous periods.

Impairment of goodwill and indefinite life brand

The Group conducts an annual impairment review of goodwill and its indefinite life brand,

David Wilson Homes.

Strategic Report Governance Financial Statements

175Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

10. Goodwill and intangible assets continued

Impairment of goodwill and indefinite life brand

Impairment reviews for goodwill and the Group’s indefinite life brand require an

estimation of the value in use of the cash-generating units to which these assets

are allocated. The value in use calculations require an estimate of expected future

cash flows, including the anticipated growth rate of revenue and costs, and require

the determination of a suitable discount rate to calculate the present value of the

cash flows. The financial forecasts used reflect the outcomes that management

considers most likely, based on the information available at the date of signing of

these Financial Statements.

Goodwill and indefinite life brand allocated to housebuilding

An impairment review was performed at 30 April 2024 by comparing the value in use of

the housebuilding business to the carrying value of its tangible and intangible assets and

allocated goodwill.

The value in use was determined by discounting the expected future cash flows of the

housebuilding business. The cash flows until 30 June 2027, being the three-year period

aligned to the Group’s operating cycle, were determined using the Group’s approved

detailed business plan and the cash flows for FY28 and FY29 were based on management

projections based on expected volumes, selling prices and margins, taking into account

available land purchases and work in progress levels. The cash flows for subsequent years

were extrapolated in perpetuity using an estimated growth rate of 2.1% (2023: 1.0%).

The key assumptions for the value in use calculation for the housebuilding business were:

• expected changes in selling prices for completed houses and the related impact on

operating margin: these are determined on a site-by-site basis in the Group’s approved

business plan dependent upon local market conditions and product type. For subsequent

years, these have been estimated at a Group level based upon past experience and

expectations of future changes in the market, considering external market forecasts;

• sales volumes: these are determined on a site-by-site basis in the Group’s approved

business plan dependent upon local market conditions, land availability and planning

permissions. For subsequent years, these have been estimated at a Group level based

on past experience and expectations of future changes in the market, taking into account

external market forecasts;

• expected changes in site costs to complete: these are determined on a site-by-site

basis in the Group’s approved business plan dependent upon the expected costs of

completing all aspects of each individual development. For subsequent years, these have

been estimated at a Group level based on past experience and expectations of future

changes in the market, taking into account external market forecasts; and

• discount rate: this is a pre-tax rate reflecting the Group’s target capital structure, risks

appropriate to the housebuilding business and current market assessments of the time

value of money. A rate of 14.2% (2023: 15.0%) is considered by the Directors to be the

appropriate pre-tax discount rate.

The result of the value in use exercise concluded that the recoverable value of goodwill

and intangible assets allocated to the housebuilding business exceeded its carrying value

by £819.7m (2023: £1,176.0m) and there has been no impairment.

Goodwill allocated to land promotion

An impairment review was performed at 30 June 2024 by comparing the value in use of

the land promotion business to the carrying value of its tangible and intangible assets

and allocated goodwill.

The value in use was determined by discounting the expected future cash flows of the

land promotion business. The operating cycle for the land promotion business extends over

a longer period than the housebuilding business, with land sales completing at the point

in an economic cycle that generates the most profit. Inventories held at the current date

may generate cash inflows in the medium to long term and, as a result, management’s

forecasts extend up to ten years from the reporting date. It is therefore appropriate to

consider projections over a longer period in the value in use calculation. Cash flows until

30 June 2033 were determined using the business’s approved forecast, dependent upon

expected site permissions and best estimates for targeted site sales, anticipated spend

and overhead inflation. Due to the sensitivity of cash flows of the land promotion business

to the economic cycle, the cash flows for years subsequent to 2033 were based on average

sales receipts from the final five years of the forecast, adjusted for expected increases in

cost, extrapolated in perpetuity using an estimated growth rate of 2.1% (2023: 1.0%).

The key assumptions for the value in use calculation were the expected sales values

achieved under land promotion agreements, based on current market values for similar

land, costs required to fulfil customer contracts, and the discount rate of 13.2% (2023: 14.3%),

being a pre-tax rate reflecting the risks appropriate to the land promotion business and

current market assessments of the time value of money.

The result of the value in use exercise concluded that the recoverable amount of goodwill

allocated to the land promotion business exceeded its carrying value by £52.6m (2023: £13.1m)

and there has been no impairment. An increase in the discount rate of 220 bps would

reduce the headroom of the recoverable amount over the carrying value to £nil.

Notes to the Financial Statements continued

Year ended 30 June 2024

176 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

11. Company investments in subsidiary undertakings

Company investments

The Company’s interests in subsidiary undertakings are accounted for at cost less

accumulated provision for impairment, which is reviewed annually.

Where share-based payments are granted to the employees of subsidiary undertakings

by the Company, they are treated as a capital contribution to the subsidiary and the

Company’s investment in the subsidiary is increased accordingly.

	Company
	2024	2023
	£m	£m
Cost:
Cost at the beginning of the year	3,177.7	3,180.1
Increase/(decrease) in investment in subsidiaries
related to share-based payments	5.3	(2.4)
At 30 June	3,183.0	3,177.7
Impairment:
At beginning of the year and at 30 June	87. 6	87.6
Net book value:
At 30 June	3,095.4	3,090.1

12. Investments in jointly controlled entities

A jointly controlled entity (joint venture or JV) is an entity, including unincorporated entities

such as partnerships, in which the Group holds an interest with one or more other parties

where a contractual arrangement has established joint control over the entity.

The Group has no associated entities.

Jointly controlled entities

Investments in jointly controlled entities are accounted for using the equity method

of accounting.

The Group’s share of the profit or loss of jointly controlled entities increases or

decreases the carrying amount of the investment and long-term interests.

	Group
	2024	2023
Investments in JVs	£m	£m
At the beginning of the year	129.8	177.9
Increase in amounts invested in JVs	38.3	18.1
Repayment of investments in JVs	(4.8)	(40.2)
Dividends received from JVs	(7.1)	(34.8)
Share of post-tax profit for the year from JVs	2.3	8.8
At 30 June	158.5	129.8

There are no losses in any of the Group’s JVs that have not been recognised by the Group.

Strategic Report Governance Financial Statements

177Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

12. Investments in jointly controlled entities continued

During the year the Group entered into a new JV agreement, Bollo Lane LLP. At 30 June 2024, the Group had interests in the following JVs:

		Voting		Principal		Financial
	Percentage	rights	Country of	place of	Principal	year end
JV	owned	controlled	registration	business	activity	date
51 College Road LLP	50.0%	50.0%	England and Wales	UK	Housebuilding	31 March*
Alie Street LLP 1	50.0%	50.0%	England and Wales	UK	Housebuilding	31 March*
Barratt Metropolitan LLP 2	75.0%	50.0%	England and Wales	UK	Housebuilding	30 June
Barratt Wates (East Grinstead) Limited	50.0%	50.0%	England and Wales	UK	Holding company	30 June
Barratt Wates (East Grinstead No.2) Limited 1	50.0%	50.0%	England and Wales	UK	Housebuilding	30 June
Barratt Wates (Horley) Limited 2	78.5%	50.0%	England and Wales	UK	Housebuilding	30 June
Barratt Wates (Lindfield) Limited	50.0%	50.0%	England and Wales	UK	Housebuilding	30 June
Barratt Wates (Worthing) Limited	50.0%	50.0%	England and Wales	UK	Housebuilding	30 June
BDWZest Developments LLP 1	50.0%	50.0%	England and Wales	UK	Holding company	31 March*
BDWZest LLP	50.0%	50.0%	England and Wales	UK	Holding company	31 March*
Blackhorse Road Properties LLP 2	51.0%	50.0%	England and Wales	UK	Housebuilding	30 June
Bollo Lane LLP2	51.0%	50.0%	England and Wales	UK	Housebuilding	30 June
Brooklands Milton Keynes LLP	50.0%	50.0%	England and Wales	UK	Housebuilding	30 June
DWH/Wates (Thame) Limited	50.0%	50.0%	England and Wales	UK	Housebuilding	30 June
Enderby Wharf LLP	50.0%	50.0%	England and Wales	UK	Housebuilding	30 June
Famous Five Glenfield Limited	50.0%	50.0%	England and Wales	UK	Dormant	30 June
Fulham Wharf LLP 1	50.0%	50.0%	England and Wales	UK	Housebuilding	31 March*
Fulham Wharf One Limited 1	50.0%	50.0%	England and Wales	UK	Dormant	31 March*
Fulham Wharf Two Limited 1	50.0%	50.0%	England and Wales	UK	Dormant	31 March*
Harrow View LLP	50.0%	50.0%	England and Wales	UK	Housebuilding	31 March*
Infinity Park Derby LLP	50.0%	50.0%	England and Wales	UK	Commercial development	30 June
Nine Elms LLP1	50.0%	50.0%	England and Wales	UK	Housebuilding	31 March*
Nine Elms One Limited 1	50.0%	50.0%	England and Wales	UK	Dormant	31 March*

Notes to the Financial Statements continued

Year ended 30 June 2024

178 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

		Voting		Principal		Financial
	Percentage	rights	Country of	place of	Principal	year end
JV	owned	controlled	registration	business	activity	date
Nine Elms Two Limited 1	50.0%	50.0%	England and Wales	UK	Dormant	31 March*
Old Sarum Park Properties Limited	50.0%	50.0%	England and Wales	UK	Dormant	30 June
Queensland Road LLP 1	50.0%	50.0%	England and Wales	UK	Housebuilding	31 March*
Ravenscraig Limited²	33.3%	33.3%	Scotland	UK	Commercial development	31 December*
Ravenscraig Town Centre LLP	50.0%	50.0%	England and Wales	UK	Dormant	30 June
Sovereign BDW (Hutton Close) LLP	50.0%	50.0%	England and Wales	UK	Housebuilding	30 June
Sovereign BDW (Newbury) LLP	50.0%	50.0%	England and Wales	UK	Housebuilding	30 June
Wembley Park Properties LLP²	51.0%	50.0%	England and Wales	UK	Housebuilding	30 June
Wichelstowe LLP	50.0%	50.0%	England and Wales	UK	Housebuilding	31 March*
ZestBDW LLP	50.0%	50.0%	England and Wales	UK	Holding company	31 March*

* JV prepares financial statements which are non-coterminous with the Group in order to comply with the terms of its JV agreement and to align with the year end and requirements of our JV partners.

Judgements applied in determining the classification of joint arrangements

1. The Group’s interests in a number of the entities classified as JVs are held indirectly: Barratt Wates (East Grinstead) No. 2 Limited is a wholly owned subsidiary of the Group’s JV, Barratt Wates (East Grinstead) Limited, and is therefore classified as a JV of the Group. BDWZest Developments LLP,

Alie Street LLP, Queensland Road LLP, Fulham Wharf LLP and Nine Elms LLP form a group of limited liability partnerships jointly owned (directly or indirectly) by BDWZest LLP and ZestBDW LLP, both of which are JVs of the Group. Nine Elms One Limited and Nine Elms Two Limited are wholly

owned subsidiaries of Nine Elms LLP, and Fulham Wharf One Limited and Fulham Wharf Two Limited are wholly owned subsidiaries of Fulham Wharf LLP. All of these entities are therefore classified as JVs of the Group.

2. The Group holds five JV investments (Barratt Wates (Horley) Limited, Barratt Metropolitan LLP, Wembley Park Properties LLP, Blackhorse Road Properties LLP and Bollo Lane LLP) not in equal share, and one (Ravenscraig Limited) with more than one other party. However, in each case, the Group

has equal voting rights and control over the activities of the companies with the other parties. In addition, the Group and the other parties to the agreements only have rights to the net assets of these companies through the terms of the contractual arrangements. These entities are therefore

classified as JVs.

Registered offices

The registered office of all of the entities in the preceding table, with the exception of those listed below, is: Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville,

Leicestershire LE67 1UF.

Enderby Wharf LLP: Here East, 13 East Bay Lane, 3rd Floor Press Centre, Queen Elizabeth Park, London E15 2GW.

Sovereign BDW (Hutton Close) LLP and Sovereign BDW (Newbury) LLP: Sovereign House, Basing View, Basingstoke RG21 4FA.

Ravenscraig Limited: 15 Atholl Crescent, Edinburgh EH3 8HA.

12. Investments in jointly controlled entities continued

Strategic Report Governance Financial Statements

179Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

12. Investments in jointly controlled entities continued

Summarised financial information relating to the Group’s JVs is as follows:

					Wembley Park			Barratt				Brooklands
		Harrow View	Wichelstowe		Developments		Metropolitan		Fulham Wharf		Milton Keynes
		LLP		LLP	LLP			LLP		LLP		LLP		Other JVs		Group total
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Income	24.9	62.2	58.4	34.0	27.0	7.0	47.8	104.5	—	—	33.8	60.5	13.6	58.7	205.5	326.9
Adjusted expenditure	(25.4)	(53.7)	(49.4)	(27.8)	(20.4)	(7.5)	(46.1)	(91.4)	2.2	—	(22.4)	(38.8)	(13.6)	(47.1)	(175.1)	(266.3)
(Cost)/credit associated with legacy properties	—	—	—	—	—	—	(10.0)	(3.3)	9.2	(42.3)	—	—	(19.4)	—	(20.2)	(45.6)
Interest (payable)/receivable	—	—	(2.3)	(2.5)	(0.3)	—	—	—	0.7	(0.1)	—	—	0.2	(0.2)	(1.7)	(2.8)
	(0.5)	8.5	6.7	3.7	6.3	(0.5)	(8.3)	9.8	12.1	(42.4)	11.4	21.7	(19.2)	11.4	8.5	12.2
Tax	—	—	—	—	—	—	—	—	—	—	—	—	—	0.1	—	0.1
Profit/(loss) for the year, being total comprehensive income/(expense)	(0.5)	8.5	6.7	3.7	6.3	(0.5)	(8.3)	9.8	12.1	(42.4)	11.4	21.7	(19.2)	11.5	8.5	12.3
Group share of profit/(loss) for the year recognised in the Consolidated Income Statement	(0.3)	4.2	3.4	1.9	3.2	(0.2)	(6.2)	7.4	6.0	(21.2)	5.7	10.9	(9.5)	5.8	2.3	8.8
Dividends received from JVs in the year	1.5	3.6	—	—	—	—	—	—	—	—	5.3	11.8	0.3	19.4	7.1	34.8
Current assets	116.9	98.5	26.0	28.1	41.0	32.9	145.9	109.7	27.5	30.6	5.4	15.6	73.1	60.9	435.8	376.3
Non-current assets	—	—	—	—	0.1	—	—	—	—	—	—	—	7.2	9.6	7.3	9.6
Current liabilities	(7.8)	(11.4)	(5.8)	(14.5)	(11.0)	(8.9)	(143.2)	(98.7)	(30.2)	(45.3)	(4.6)	(15.6)	(54.9)	(26.7)	(257.5)	(221.1)
Non-current liabilities	—	—	—	—	—	—	—	—	—	—	—	—	(42.4)	(43.5)	(42.4)	(43.5)
Net assets/(liabilities) of JVs	109.1	87.1	20.2	13.6	30.1	24.0	2.7	11.0	(2.7)	(14.7)	0.8	—	(17.0)	0.3	143.2	121.3
Cash and cash equivalents included in the above net assets	8.4	10.1	8.8	3.2	3.5	6.6	37.7	12.1	25.8	29.3	4.6	10.8	19.1	23.3	107.9	95.4
Group share of net assets/(liabilities) recognised in the Consolidated Balance Sheet at 30 June	54.5	43.6	10.1	6.8	15.4	12.1	2.0	8.2	(1.3)	(7.4)	0.4	—	(8.9)	—	72.2	63.3

Adjusted expenditure is the total expenditure of the JV less adjusted items as defined in note 4.

Notes to the Financial Statements continued

Year ended 30 June 2024

180 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

12. Investments in jointly controlled entities continued

A reconciliation of the Group’s share of net assets to the carrying value of investments

included in the Balance Sheet is presented below:

	Group
	2024	2023
	£m	£m
Group share of the net assets of its JVs	72.2	63.3
Group loans to JVs	86.3	66.5
At 30 June	158.5	129.8

The Group has made loans, net of loss allowances, of £86.3m (2023: £66.5m) to its JVs,

which are presented within Group investments. The loss allowances for Group loans to JVs

are equal to 12-month expected credit losses unless there has been a significant increase

in credit risk since the date of initial recognition, in which case, the loss allowance is equal

to the lifetime expected credit loss.

A significant increase in credit risk is judged to have occurred if a review of available

information indicates an increased probability of default. At 30 June 2024, the loss

allowance is immaterial (2023: immaterial).

Included within the Group’s share of net assets of JVs is a proportion of the loans to the

JVs (net of fair value adjustments made in one JV), calculated using the Group’s ownership

share, of £85.3m (2023: £63.6m).

During the year, the Group entered into a number of transactions with its JVs in respect of

funding and development management services (with charges made based on the utilisation

of these services) in addition to the provision of construction services. Further details on

these transactions are provided in note 29. The Group and Company have a number of

contingent liabilities relating to their JVs. Further details on these are provided in note 28.

The transfer of funds from the Group’s JVs to the Group is determined by the terms of the

JV agreements, which specify how available funds should be applied in repaying loans and

capital, and distributing profits to the partners.

13. Property, plant and equipment

Property, plant and equipment

Property, plant and equipment is carried at cost less accumulated depreciation and

accumulated impairment losses. Depreciation is provided to write off the cost of the

assets on a straight-line basis to their residual value over their estimated useful lives.

Residual values and asset lives are reviewed annually.

Freehold properties are depreciated on a straight-line basis over 25 years. Freehold

land is not depreciated. Plant is depreciated on a straight-line basis over its expected

useful life, which ranges from one to seven years.

		Group			Company
		Plant and			Plant and
	Property	equipment	Total	Property	equipment	Total
	£m	£m	£m	£m	£m	£m
Cost
At 1 July 2022	29.1	53.7	82.8	0.2	26.0	26.2
Additions	8.4	14.7	23.1	—	2.6	2.6
Disposals	—	(1.6)	(1.6)	—	—	—
At 30 June 2023	37.5	66.8	104.3	0.2	28.6	28.8
Additions	1.0	6.2	7.2	—	1.1	1.1
Disposals	(0.2)	(0.7)	(0.9)	—	—	—
At 30 June 2024	38.3	72.3	110.6	0.2	29.7	29.9
Depreciation
At 1 July 2022	3.4	38.2	41.6	0.2	19.4	19.6
Charge for the year	0.4	5.7	6.1	—	3.1	3.1
Disposals	—	(1.5)	(1.5)	—	—	—
At 30 June 2023	3.8	42.4	46.2	0.2	22.5	22.7
Charge for the year	0.8	6.7	7.5	—	2.8	2.8
Disposals	(0.2)	(0.4)	(0.6)	—	—	—
At 30 June 2024	4.4	48.7	53.1	0.2	25.3	25.5
Net book value
At 30 June 2023	33.7	24.4	58.1	—	6.1	6.1
At 30 June 2024	33.9	23.6	57.5	—	4.4	4.4

Authorised future capital expenditure that was contracted but not provided for in these

Financial Statements amounted to £4.4m (2023: £3.5m).

Strategic Report Governance Financial Statements

181Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

14. Leases

Leases

A right-of-use asset and a lease liability are recognised at the commencement date

of a lease. The right-of-use asset is initially measured at cost comprising the initial

amount of the lease liability plus payments made before the lease commenced and

any direct costs less any incentives received. The right-of-use asset is subsequently

depreciated using the straight-line method from the commencement of the lease

to the earlier of the end of the lease term or the end of the useful life of the asset.

The right-of-use asset is also reduced for impairment losses, if any, and adjusted for

certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments

at the commencement date discounted using the Group’s incremental borrowing

rate of between 1% and 7% and is subsequently measured at amortised cost using

the effective interest method. The lease liability is remeasured when there is a

change in the future lease payments, and a corresponding adjustment is made

to the right-of-use asset.

The Group has elected not to recognise right-of-use assets and lease liabilities for

short-term leases of plant and machinery with a lease term of 12 months or less,

and leases of low value including leases of office equipment. The lease payments

associated with these leases are recognised as an expense on a straight-line basis

over the lease term.

The Group and Company lease assets including land and buildings, vehicles, plant and

machinery, and office equipment. Information about leases for which the Group or

Company is a lessee is presented below.

		Group			Company
	Land and			Land and
	buildings	Other	Total	buildings	Other	Total
Right-of-use assets	£m	£m	£m	£m	£m	£m
Balance at 1 July 2023	28.4	16.7	45.1	2.7	1.5	4.2
Balance at 30 June 2024	24.3	16.9	41.2	—	1.3	1.3
Net additions/
(disposals) during the year including
remeasurements	1.7	9.6	11.3	(2.4)	0.4	(2.0)

	Group		Company
	2024	2023	2024	2023
Lease liabilities included in the Balance Sheet	£m	£m	£m	£m
Current	13.4	13.1	0.6	1.3
Non-current	29.4	33.1	0.7	2.9
	42.8	46.2	1.3	4.2

A maturity analysis of the contractual undiscounted cash flows associated with these lease

liabilities is presented in note 30.

	Group
	2024	2023
Amounts recognised in the Income Statement	£m	£m
Interest on lease liabilities	1.8	1.2
Depreciation of right-of-use land and buildings	5.8	6.4
Depreciation of other right-of-use assets	9.4	5.9
Expenses relating to short-term and low-value leases	20.7	34.5

The total Group cash outflow for leases in the current year was £37.2m (Company: £0.9m)

(2023: £48.4m (Company: £1.3m)), of which £16.5m (Company: £0.9m) (2023: £13.9m

(Company: £1.3m)) related to the repayment of lease liabilities recognised in the

Balance Sheet.

15. Inventories

Inventories

Inventories are valued at the lower of cost and net realisable value. Land held for

development, including land in the course of development, is initially recorded at

cost. Where, through deferred purchase credit terms, the carrying value differs from

the amount that will ultimately be paid in settling the liability, this difference is

charged as a finance cost in the Income Statement over the period of settlement.

Cost of construction work in progress comprises direct materials, direct labour costs

and those overheads that have been incurred in bringing the inventories to their

present location and condition. Overhead costs include, but are not limited to, roads

and other infrastructure costs required for a site and local contributions and physical

works contributions required under planning permissions granted for our developments.

Notes to the Financial Statements continued

Year ended 30 June 2024

182 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

15. Inventories continued

Inventories continued

Due to the scale of the Group’s developments, the Group has to allocate site-wide

development costs between homes built in the current year and in future years.

It also has to estimate costs to complete on such developments. In making these

assessments, there is a degree of inherent uncertainty. The Group has developed

internal controls to assess and review carrying values and the appropriateness of

estimates made. Further information is included in the margin recognition section

of note 3.

Work in progress on promotion agreements comprises direct fees and labour costs

incurred in investigating, designing, master planning, obtaining planning permission

and ultimately securing sales agreements for land on behalf of landowners. The satisfaction

of promotion agreements is largely dependent upon the grant of planning consent;

therefore, management assesses the likelihood of attaining these consents when

assessing their carrying values.

	Group
	2024	2023
	£m	£m
Land held for development	3,233.6	3,139.9
Construction work in progress	1,829.4	1,907.1
Promotion agreements work in progress	111.5	97.7
Part-exchange properties and other inventories	103.7	93.3
	5,278.2	5,238.0

The Company had no inventories in 2024 or 2023.

Nature and carrying value of inventories

The Group’s principal activities are housebuilding and commercial development.

The majority of the development activity is not contracted prior to the development

commencing. Accordingly, the Group has in its Balance Sheet at 30 June 2024 current

assets that are not covered by a forward sale. The Group’s internal controls are designed

to identify any developments where the balance sheet value of land and work in progress

is more than the projected lower of cost or net realisable value. During the year, the Group

has conducted six-monthly reviews of the net realisable value of specific sites identified

as at high risk of impairment, based upon a number of criteria including low site profit

margins and sites with no forecast completions. Where the estimated net realisable value

of a site was less than its current carrying value, the Group has impaired the land and work

in progress value.

During the year, due to performance variations, changes in assumptions and changes to

viability on individual sites, there were gross impairment charges of £9.2m (2023: £16.7m)

and gross impairment reversals of £11.4m (2023: £12.0m), resulting in a net impairment

reversal of £2.2m (2023: £4.7m charge) included within cost of sales.

The key estimates in these six-monthly reviews are those used to estimate the realisable

value of a site, which is determined by forecast sales rates, expected sales prices and

estimated costs to complete.

The Directors consider all inventories to be essentially current in nature, although the

Group’s operational cycle is such that a proportion of inventories will not be realised within

12 months. It is not possible to determine with accuracy when specific inventory will be

realised, as this will be subject to a number of variables such as consumer demand and

planning permission delays.

Inventories include £9.0m (2023: £11.0m) in respect of properties currently occupied under

the refugee support scheme.

16. Trade and other receivables

Trade and other receivables

Trade and other receivables are financial assets with fixed or determinable payments

that are not quoted in an active market. They are included in current assets, except

for those with maturities greater than 12 months after the balance sheet date, which

are classified as non-current assets. Amounts recoverable on certain construction

contracts where revenue is recognised over time are included in trade receivables and

stated at cost plus attributable profit less any foreseeable losses. Payments received

on account for these construction contracts are deducted from amounts recoverable

on these contracts.

Trade and other receivables are initially recognised at their transaction price, being

fair value, and subsequently measured at amortised cost, being their nominal value

less a loss allowance for expected credit losses, which are assessed on the basis of

an average weighting of the risk of default. Any impairment is recognised immediately

in the Income Statement.

For this purpose, a default is determined to have occurred if the Group becomes aware

of evidence that it will not receive all contractual cash flows that are due or if payment

has not been received within 60 days of the due date. After this time, it is probable

that contractual cash flows will not be fully recovered.

The Group does not hold any collateral over these balances.

Trade receivables are receivables and contract assets arising from the Group’s contracts

with customers. The loss allowance is equal to the lifetime expected credit loss,

assessed on an individual basis.

Strategic Report Governance Financial Statements

183Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

16. Trade and other receivables continued

Trade and other receivables continued

The loss allowances for other receivables and amounts due from subsidiary undertakings

are equal to 12-month expected credit losses unless there has been a significant increase

in credit risk since the date of initial recognition, in which case the loss allowance is

equal to the lifetime expected credit loss. A significant increase in credit risk is judged

to have occurred if a review of available information indicates an increased probability

of default, or if contractual payments are more than 30 days past due.

Where amounts due from subsidiary undertakings can be satisfied by the subsidiaries

through the recovery of a debt from fellow subsidiaries with strong capacity to meet

that debt, the amount is considered to have low credit risk at the reporting date and

it is therefore assumed that the credit risk has not significantly increased.

Trade and other receivables that are more than two years overdue are deemed to have

no reasonable expectation of recovery and are written off in the Financial Statements,

but are still subject to enforcement activity. Subsequent recoveries of amounts previously

written off are credited to the Income Statement.

		Group		Company
		2024	2023	2024	2023
	Notes	£m	£m	£m	£m
Non-current assets
Amounts due from subsidiary undertakings		—	—	76.1	76 .1
Contract assets	20	1.0	0.5	—	—
Other receivables		2.4	2.4	—	—
		3.4	2.9	76.1	76 .1
Current assets
Trade receivables		72.2	70.7	—	—
Contract assets	20	5.9	20.8	—	—
Amounts due from subsidiary undertakings		—	—	169.0	2.9
Other receivables		111.0	74.0	5.5	4.3
Prepayments and accrued
income		12.8	16.6	8 .1	8.7
		201.9	182.1	182.6	15.9

Other receivables include £27.8m (2023: £37.1m) receivable from joint ventures.

The carrying values of trade and other receivables are stated after allowance for expected

credit losses. The movements in the loss allowances for the year were as follows:

			Trade receivables and
		contract balances		Other receivables
		Lifetime expected		12-month
		credit losses		expected credit
		(individually assessed)		losses
		Group	Company	Group	Company
Loss allowance	Notes	£m	£m	£m	£m
Loss allowance at 1 July 2023		8.1	—	0.3	—
Charge for the year	21	2.0	—	0.3	—
Amounts written off Recoveries of amounts previously		—	—	—	—
written off	21	(3.2)	—	(0.1)	—
Loss allowance at 30 June 2024		6.9	—	0.5	—

Movements in loss allowances are principally a result of the derecognition and origination

of financial assets in the year. The loss allowances written off are equal to the gross

carrying amounts of the assets written off in the year. The Directors consider that the

carrying amount of trade receivables approximates to their fair value.

The expected credit losses on the Company amounts due from subsidiary undertakings are

not material to the Financial Statements. The subsidiaries are able to pay their liabilities as

they fall due and the probability of default is insignificant.

Further disclosures relating to financial assets are set out in note 21.

Notes to the Financial Statements continued

Year ended 30 June 2024

184 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

17. Net cash

Net cash is defined as cash and cash equivalents, bank overdrafts, interest-bearing

borrowings and prepaid fees. Net cash at 30 June is shown below:

	Group		Company
	2024	2023	2024	2023
	£m	£m	£m	£m
Cash and cash equivalents	1,065.3	1,269.1	827.6	1,005.0
Drawn debt
Borrowings:
Sterling US private placement notes	(200.0)	(200.0)	(200.0)	(200.0)
Bank overdrafts	—	(3.4)	—	—
Total borrowings, being total drawn debt	(200.0)	(203.4)	(200.0)	(200.0)
Prepaid fees	3.2	3.7	3.2	3.7
Net cash	868.5	1,069.4	630.8	808.7
Total borrowings at 30 June are analysed as:
Non-current borrowings	(200.0)	(200.0)	(200.0)	(200.0)
Current borrowings	—	(3.4)	—	—
Total borrowings, being total drawn debt	(200.0)	(203.4)	(200.0)	(200.0)

Movement in net cash is analysed as follows:

	Group		Company
	2024	2023	2024	2023
	£m	£m	£m	£m
Net decrease in cash and cash equivalents	(203.8)	(83.6)	(177.4)	(40.4)
Repayment/(drawdown) of borrowings:
Loans and borrowings drawdowns	—	(3.4)	—	—
Loans and borrowings repayments	3.4	17.3	—	—
Other movements in borrowings:
Movement in prepaid fees	(0.5)	0.5	(0.5)	0.5
Movement in net cash in the year	(200.9)	(69.2)	(177.9)	(39.9)
Opening net cash	1,069.4	1,138.6	808.7	848.6
Closing net cash	868.5	1,069.4	630.8	808.7

Changes in liabilities arising from financing activities are shown below:

		Group			Company
	Total	Lease		Total	Lease
	borrowings	liabilities	Total	borrowings	liabilities	Total
	£m	£m	£m	£m	£m	£m
Liabilities from financing activities at 1 July 2022	(217.3)	(37.1)	(254.4)	(200.0)	(4.2)	(204.2)
Financing cash flows	—	13.9	13.9	—	1.3	1.3
Other movements	13.9	(23.0)	(9.1)	—	(1.3)	(1.3)
Liabilities arising from financing activities at 30 June 2023	(203.4)	(46.2)	(249.6)	(200.0)	(4.2)	(204.2)
Financing cash flows	—	16.5	16.5	—	0.9	0.9
Other movements	3.4	(13.1)	(9.7)	—	2.0	2.0
Liabilities arising from financing activities at 30 June 2024	(200.0)	(42.8)	(242.8)	(200.0)	(1.3)	(201.3)

Cash and cash equivalents

Cash and cash equivalents are held at floating interest rates linked to the UK bank rate

and money market rates as applicable. Cash and cash equivalents comprise cash held by

the Group and short-term bank deposits with an original maturity of three months or less

from inception and are subject to an insignificant risk of changes in value.

Cash, cash equivalents and bank overdrafts, as presented in the Cash Flow Statement,

are analysed as follows:

	Group		Company
	2024	2023	2024	2023
	£m	£m	£m	£m
Cash and cash equivalents	1,065.3	1,269.1	827.6	1,005.0
Bank overdrafts included in loans and borrowings	—	(3.4)	—	—
Cash, cash equivalents and bank overdrafts	1,065.3	1,265.7	82 7.6	1,005.0

Further disclosures relating to financial assets are set out in note 21.

Strategic Report Governance Financial Statements

185Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

17. Net cash continued

Borrowings and facilities

Loans and borrowings

Interest-bearing loans and overdrafts are initially recognised at fair value less directly

attributable transaction costs and subsequently measured at amortised cost, being the

amount recorded at recognition plus accrued interest applied to the account less any

repayments made.

All debt facilities at 30 June 2024 are unsecured.

The principal features of the Group’s committed debt facilities at 30 June 2024

and 30 June 2023 were as follows:

			Amount drawn
	Facility	30 June 2024	30 June 2023	Maturity
Committed facilities:				17 November
RCF	£700.0m	—	—	2028
				22 August
Fixed rate Sterling USPP notes	£200.0m	£200.0m	£200.0m	2027

The Group also uses various bank overdrafts and uncommitted borrowing facilities that are

subject to floating interest rates linked to SONIA and money market rates as applicable.

Weighted average interest rates are disclosed in note 6.

18. Trade and other payables

Trade and other payables

Trade and other payables are not interest bearing and are initially recorded at fair value.

Subsequent measurement is at amortised cost.

Trade and other payables on extended terms, particularly in respect of land, are

recorded at their fair value at the date of acquisition of the asset to which they relate

by discounting at prevailing market interest rates at the date of recognition. The discount

to nominal value, which will be paid in settling the deferred purchase terms liability,

is amortised over the period of the credit term and charged to finance costs using the

“effective interest rate” method.

		Group		Company
		2024	2023	2024	2023
	Notes	£m	£m	£m	£m
Non-current liabilities
Land payables		165.0	185.2	—	—
Other payables		7.0	3.5	—	—
		172.0	188.7	—	—
Current liabilities
Trade payables		252.7	310.3	2.8	1.1
Land payables		307. 8	321.5	—	—
Contract liabilities	20	69.4	89.2	—	—
Amounts due to subsidiary
undertakings		—	—	91.3	354.2
Accruals		399.2	381.3	34.1	28.6
Other tax and social security		14.8	17.0	—	—
Other payables		11.2	8.1	—	—
		1,055.1	1,127.4	128.2	383.9

The carrying amount of trade payables approximates to their fair value.

Accruals include a social security accrual relating to share-based payments (note 26).

Other payables classified as non-current liabilities at 30 June 2024 include amounts

accrued for payment of the CITB levy and other sundry accruals.

The Group has £179.3m (2023: £244.4m) of payables secured by legal charges on land

and buildings included within inventories. Other non-current payables are unsecured

and non-interest bearing.

Further disclosures relating to financial liabilities are set out in note 21.

19. Provisions

Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive)

as a result of a past event, and it is probable that the Group will be required to settle that

obligation. Provisions are measured at the Directors’ best estimate of the expenditure

required to settle the obligation at the balance sheet date and are discounted to

present value where the effect is material.

Notes to the Financial Statements continued

Year ended 30 June 2024

186 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

19. Provisions continued

		Group
	Costs in	Legacy	Legacy
	relation	properties	properties
	to	- EWS and	- reinforced
	completed	associated	concrete
	developments	review	frames	Total
	£m	£m	£m	£m
At 1 July 2023	176.1	535.9	76.4	788.4
Additions	67.7	125.9	56.6	250.2
Sites reclassified to completed
developments	15.0	—	—	15.0
Releases	(20.5)	—	(3.5)	(24.0)
Revaluation due to the present value
and timing of cash flows	—	(0.6)	1.6	1.0
Imputed interest	—	26.3	3.2	29.5
Utilisation in the year	(47. 4)	(59.4)	(32.1)	(138.9)
At 30 June 2024	190.9	628.1	102.2	921.2

	Group
	2024	2023
	£m	£m
Current	378.0	310.5
Non-current	543.2	477.9
	921.2	788.4

The Company had no provisions in either year.

Costs in relation to completed developments

Following the legal completion and handover to customers of all units on a site, the

Group may retain obligations which are not settled for a number of years. These include

costs in relation to the adoption of roads or public open space by local authorities, other

contractual obligations to third parties and, in certain cases, the costs of remedial works

where defects have been identified.

Whilst a proportion of this cost will not be realised within 12 months, the Group has an

obligation to complete the works immediately should it be requested to do so. The balance

in total is therefore considered to be current in nature. All outstanding issues on completed

developments are resolved as soon as is practicable.

Costs associated with legacy properties

External wall systems and associated review

On 13 March 2023, the Group signed the Self-Remediation Terms and Contract,

codifying the commitments previously made under the Building Safety Pledge to

undertake, or to fund, remediation or mitigation works on external wall systems (EWS)

on all buildings of 11 metres or above in England and Wales that it has developed or

refurbished in the 30 years preceding the date of the Building Safety Pledge, and to

reimburse the Government’s Building Safety Fund wherever they have contributed

to such activities. The Group has provided for the cost of fulfilling this commitment,

as well as assisting with remedial work identified at a limited number of other legacy

properties where it has a legal liability to do so, where relevant build issues have

been identified, or where it is considered probable that such build issues exist.

			Review
			confirmed
			no remediation,
		Identified for	or remediation
	30 June 2023	review	completed	30 June 2024
Under review:
Buildings above 18 metres	168	6	(28)	146
Buildings between 11
and 18 metres	110	20	(14)	116
Total buildings	278	26	(42)	262
Developments	89	14	(11)	92

The Group continues to review all of its current and legacy buildings where it has used

EWS or cladding solutions, assessing the action required in line with the latest updates

to Government guidance, as it applies, to multi-storey and multi-occupied residential

buildings. All our buildings, including those incorporating EWS or cladding solutions,

were signed off by approved inspectors as compliant with the relevant Building

Regulations at the time of completion.

This is a complex area requiring significant estimates with respect to the estimates

for the number of buildings affected, the individual remediation requirements of each

building and the costs associated with that remediation (see also note 28).

Following contact from building owners regarding potential issues, a net further

26 buildings with a height of over 11 metres were added to the scope of works in the

period (2023: 65 buildings). This reflects a reduction in the rate at which new buildings

are being identified in comparison to the period immediately following the signature

of the Self-Remediation Terms and Contract on 13 March 2023. At 30 June 2024, of

the 262 buildings in the portfolio under review, 137 were at tender or site mobilisation

or were in the process of being remediated (2023: 278 buildings, of which 63 were at

tender or site mobilisation or were in the process of being remediated).

Strategic Report Governance Financial Statements

187Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

19. Provisions continued

Costs associated with legacy properties continued

External wall systems and associated review continued

As investigations into, and remediation of, the remaining buildings in the programme

continue under the PAS9980 regime, it is possible that a limited number will require

more extensive remediation than initially expected, which will represent a higher cost

per unit than the population average. Whilst existing provisions have more than covered

the additional costs on such properties, we have received higher than expected tender

returns in the year relating to future remediations. In addition, we have seen costs from

the Building Safety Fund continue to be higher than initially communicated to us. The

Group has increased its overall EWS provision by £56.4m to reflect its revised estimates.

During the second half of the year it was identified following further investigation

that, due to the unique unitised curtain wall system used in their construction, there

is no testing methodology available to certify under PAS9980 the fire safety of three

buildings on one development. This wall system has not been used in any other of the

Group’s buildings. As a result, it is now expected that the wall system will need to be

replaced, which will be undertaken in a manner that minimises disruption to residents.

The cost of these works is estimated to be £69.5m based on the current expected

method of remediation, though due to the unique nature of the building, this estimate

may vary as the process is further developed.

It is now assumed that the majority of work on the remaining buildings in the portfolio

will be completed over the next five years. This depends on a number of factors including

timely engagement of building owners and remediation work being delivered in line

with our estimated timings. Accordingly, the provision has been revalued to its present

value, considering the effect of inflation and a discount rate of 4.0% based on gilt rates

at the reporting date (2023: 4.7%), resulting in a release through cost of sales of £0.6m

(2023: charge of £7.5m).

The investigation of the works required at many of the buildings is at an early stage and

therefore it is possible that the scope of work required could change. If government

legislation and regulation further evolve, or if the estimated timing of work is affected

by building owner engagement or contractor availability, these estimates will change.

In relation to the Group’s obligations under the Scottish Safer Buildings Accord, signed

on 31 May 2023, and the Housing (Cladding Remediation) (Scotland) Act, passed on

21 June 2024, the external wall provision is recorded on the basis that the standard

of remediation required in Scotland is consistent with England and Wales. This will be

determined when the final contract with the Scottish Government is signed (see note 28).

The estimates are based on key assumptions that will be updated as work and

time progress. The sensitivity of the provision held at the balance sheet date to

the following possible movements in key assumptions is shown below:

	Increase/(decrease)
	in provisions at
	30 June 2024
Sensitivity	£m
10% increase in estimated cost	60.8
5% increase in the number of buildings	28.5
100 bps increase in discount rate	(13.6)

Reinforced concrete frames

As announced in July 2020, we took the decision to pay for required remedial action on

the reinforced concrete frame at the Citiscape development in Croydon and undertook

an associated review of 27 other developments designed by the same engineering firm

or its associated companies. This review is substantially complete and remediation

work is ongoing. As work progresses, estimates of costs to complete are reassessed

and the provision updated accordingly.

In the prior year, structural issues were separately found at two developments where

reinforced concrete frames were designed for us by a different engineering firm to

that employed at Citiscape. Following further analysis undertaken during the second

half of the year and as preliminary work on those developments has progressed, it

is now considered probable that extensive remediation will be required. Based on a

high-level risk review, an additional £56.6m has been provided at the reporting date.

Further analysis must be undertaken to determine both the exact locations within

the developments which will need to be remediated and the nature of the work to

be performed in each case, which may result in revisions to the estimated costs

and time frame of delivery.

Management has made estimates as to the future costs, the extent of the remedial

works required and the costs of providing alternative accommodation to any residents

affected by the remedial works. These Financial Statements have been prepared based

on currently available information, including known costs and quotations where possible.

However, the extent, cost and timing of remedial work may change as work progresses.

Notes to the Financial Statements continued

Year ended 30 June 2024

188 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

20. Contract assets and liabilities

Contract assets and liabilities

Contract assets relate to amounts due from customers primarily for construction

work completed but not invoiced at the balance sheet date in relation to contracts

where revenue is recognised over time. These amounts are included in trade and other

receivables. The Group has taken advantage of the practical expedient in paragraph 94

of IFRS 15 to immediately expense the incremental costs of obtaining contracts where

the amortisation period of the assets would have been one year or less.

Contract liabilities relate to payments received from the customer on the contract,

and/or amounts invoiced to the customer in advance of the Group performing its

obligations on contracts where revenue is recognised either over time or at a point

in time. These amounts are included within trade and other payables.

Significant changes in contract assets and liabilities are as follows:

		Contracts on which		Contracts on which
		revenue is recognised		revenue is recognised
		over time		at a point in time
	2024	2023	2024	2023
	£m	£m	£m	£m
At 1 July:
Amounts included within trade and other payables	(9.6)	(4.2)	(79.6)	(120.1)
Amounts included within trade and other receivables	21.3	13.3	—	—
	11.7	9.1	(79.6)	(120.1)
Movements in the year:
Performance obligations satisfied in the year	218.2	192.7	3,950.0	5,128.7
Amounts invoiced in the year	(226.9)	(190.1)	(3,870.4)	(5,008.6)
Movements in retentions	(0.3)	—	—	—
Cash received for performance obligations
not yet satisfied	—	—	(65.2)	(79.6)
At 30 June	2.7	11.7	(65.2)	(79.6)
Analysed as:
Amounts included within trade and other payables	(4.2)	(9.6)	(65.2)	(79.6)
Amounts included within trade and other receivables	6.9	21.3	—	—

Further revenue of £74.6m (2023: £104.3m) is expected to be recognised in future years in

respect of contracts on which revenue is recognised over time, of which 66.6% (2023: 86.8%)

is expected to be recognised within 12 months of the balance sheet date.

The Company had no contract assets or liabilities in either year.

21. Financial instruments

Recognition

Financial assets and financial liabilities are recognised on the Balance Sheet in accordance

with IFRS 9 when the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial asset only when the contractual rights to the cash

flows from the asset expire or it transfers the financial asset and substantially all the

risks and rewards of ownership of the asset to another entity.

The Group derecognises a financial liability only when the Group’s obligations are

discharged or cancelled or they expire.

Classification and measurement

All non-derivative financial assets are classified in accordance with IFRS 9 as

“subsequently measured at amortised cost”. All non-derivative financial liabilities

are classified as “subsequently measured at amortised cost”.

Financial assets and liabilities subsequently measured at amortised cost are initially

recognised at fair value determined based on discounted cash flow analysis using

current market rates for similar instruments. They are subsequently measured at

amortised cost using the “effective interest rate” method. Financial assets are also

measured after recognition of any impairment, which is included within administrative

expenses in the Income Statement.

Financial liabilities are classified as current liabilities unless the Group has an unconditional

right to defer settlement of the liability for at least 12 months after the balance sheet date.

Impairment

A loss allowance is recognised for expected credit losses on financial assets as described

in note 16. Any impairment is recognised immediately in the Income Statement.

Strategic Report Governance Financial Statements

189Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

21. Financial instruments continued

Financial assets

The carrying values and fair values of the Group and Company financial assets are as follows:

			Group				Company
			2024		2023		2024		2023
		Fair	Carrying	Fair	Carrying	Fair	Carrying	Fair	Carrying
		value	value	value	value	value	value	value	value
	Notes	£m	£m	£m	£m	£m	£m	£m	£m
Cash and cash
equivalents	17	1,065.3	1,065.3	1,269.1	1,269.1	827.6	827.6	1,005.0	1,005.0
Measured at amortised cost:
Trade and other receivables1		133.8	133.8	118.7	118.7	4.6	4.6	2.7	2.7
Intercompany
receivables	16	—	—	—	—	245.1	245.1	79.0	79.0
Total financial
assets		1,199.1	1,199.1	1,387.8	1,387.8	1,077.3	1,077.3	1,086.7	1,086.7

1 Excludes amounts recoverable on contracts, prepayments and accrued income, and tax and social security .

Financial liabilities

The carrying values and fair values of the Group and Company financial liabilities are as follows:

			Group				Company
			2024		2023		2024		2023
		Fair	Carrying	Fair	Carrying	Fair	Carrying	Fair	Carrying
		value	value	value	value	value	value	value	value
	Notes	£m	£m	£m	£m	£m	£m	£m	£m
Measured at amortised
cost:
Bank
overdrafts	17	—	—	3.4	3.4	—	—	—	—
Loans and borrowings	17	184.2	200.0	170.7	200.0	184.2	200.0	170.7	200.0
Trade and other payables1		991.5	1,025.9	1,086.6	1,119.5	20.6	20.6	18.1	18.1
Intercompany
payables	18	—	—	—	—	91.3	91.3	354.2	354.2
Lease
liabilities	14	42.8	42.8	46.2	46.2	1.3	1.3	4.2	4.2
Total financial
liabilities		1,218.5	1,268.7	1,306.9	1,369.1	297.4	313.2	547.2	576.5

1 Excludes deferred income, payments received in excess of amounts recoverable on contracts, tax and social security and other non-

financial liabilities.

The fair values of liabilities in the above table have been determined using discounted cash

flows based on observable market data other than quoted prices in active markets for

identical liabilities.

Trade and other payables include items secured by legal charges as disclosed in note 18.

Financial instruments gains and losses

The net (gains)/losses recorded in the Consolidated Income Statement, in respect of

financial instruments (excluding interest shown in note 6), were as follows:

Notes

2024

£m

2023

£m

Financial assets measured at amortised cost

Trade receivables - loss allowance charge 16 2.3 5.6

Recoveries of amounts previously written off 16 (3.3) (2.0)

Notes to the Financial Statements continued

Year ended 30 June 2024

190 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

22. Share capital

Equity instruments

Ordinary share capital is recorded at the proceeds received, net of direct issue costs,

and is classified as equity.

Ordinary share capital

			2024	2023
Allotted and issued ordinary shares			£m	£m
10p each fully paid: 97	4,592,261	(2023: 974,584,613) ordinary
shares			97.4	97.4

	2024	2023
Options over the Company’s shares granted during the year	Number	Number
LTPP	4,497,287	4,028,187
Sharesave	2,549,465	6,637,568
DBP	107,057	920,887
ELTIP	1,972,714	1,792,966
	9,126,523	13,379,608

	2024	2023
Allotment/cancellation of shares during the year	Number	Number
At 1 July	974,584,613	1,022,562,819
Buyback and cancellation of shares in the year	—	(47,985,293)
Issued to satisfy exercises under Sharesave schemes	7,648	7,087
At 30 June	974,592,261	974,584,613

23. Merger reserve

The merger reserve comprises the non-statutory premium arising on shares issued as

consideration for the acquisition of subsidiaries where merger relief under Section 612

of the Companies Act 2006 applies.

24. Capital redemption reserve

During the prior year the Company purchased 47,985,293 of its own shares in the market

which were then cancelled. The nominal value of these shares was transferred to the

capital redemption reserve.

	2024	2023
	£m	£m
At 1 July	4.8	—
Amounts transferred in respect of own shares purchased and cancelled during the year	—	4.8
At 30 June	4.8	4.8

25. Own shares reserve

The own shares reserve represents the cost of shares in Barratt Developments PLC

purchased in the market or issued by the Company and held by the EBT on behalf of the

Company in order to satisfy options and awards that have been granted by the Company.

The EBT has agreed to waive all, or any future right to dividend payments on shares

held within the EBT and these shares do not count in the calculation of the weighted

average number of shares used to calculate EPS until such time as they are vested to

the relevant employee.

	2024	2023
Ordinary shares in the Company held in the EBT (number)	8,063,747	4,998,602
Cost of shares held in the EBT (£m)	36.9	23.2
Market value of shares held in the EBT at 472.2p (2023: 413.5p)
per share (£m)	38.1	20.7

During the year, the EBT purchased 5,000,000 (2023: 2,951,352) shares in the market and

disposed of 1,351,813 (2023: 3,254,817) shares, which were used to satisfy the vesting of

ELTIP and LTPP awards in both years and also the DBP awards in 2023. A further 583,042

shares were used in settlement of exercises under Sharesave schemes (2023: 18,101).

Strategic Report Governance Financial Statements

191Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

Outstanding equity-settled share-based payments

At 30 June 2024, the following options were outstanding:

	Option price	2024
Date of grant	Pence	Number	Not exercisable after
Sharesave
9 April 2019 – 5-year plan	519	74,561	31 December 2024
7 April 2020 – 5-year plan	456	159,756	31 December 2025
7 April 2021 – 3-year plan	604	452,347	31 December 2024
7 April 2021 – 5-year plan	604	50,748	31 December 2026
6 April 2022 – 3-year plan	436	1,472,868	31 December 2025
6 April 2022 – 5-year plan	436	188,081	31 December 2027
12 April 2023 – 3-year plan	347	4,339,352	31 December 2026
12 April 2023 – 5-year plan	347	1,292,765	31 December 2028
3 April 2024 – 3-year plan	381	2,064,681	31 December 2027
3 April 2024 – 5-year plan	381	428,205	31 December 2029
Total Sharesave options		10,523,364
LTPP
14 October 2021 – Executive	—	1,034,903	—
14 February 2022 – Executive	—	117,716	—
12 October 2022 – Executive	—	1,756,646	—
21 December 2023 – Executive	—	2,125,301	—
14 October 2021 – Senior management	—	1,072,815	—
12 October 2022 – Senior management	—	1,903,806	—
21 December 2023 – Senior management	—	2,301,468	—
Total LTPP awards		10,312,655

26. Share-based payments

The Group issues equity-settled share-based payments to certain employees.

Share-based payments

Equity-settled share-based payments are measured at the fair value of the equity

instrument at the date of grant. Fair value is measured either using Black Scholes or

Monte Carlo models depending on the characteristics of the scheme. Valuations have

also been adjusted for any post-vesting holding period with the adjustment calculated

using a Finnerty and Chaffe model.

The fair value is expensed in the Income Statement on a straight-line basis over the

vesting period, based on the Group’s estimate of shares that will eventually vest where

non-market vesting conditions apply. Non-market vesting conditions are taken into account

in the estimate of the fair value of the equity instruments.

Analysis of the Consolidated Income Statement charge:

	2024	2023
	£m	£m
Equity-settled share-based payments:
LTPP	7.6	(2.2)
Sharesave	4.6	3.6
DBP	2.9	2.7
ELTIP	4.8	6 .1
	19.9	10.2

As at 30 June 2024, an accrual of £3.7m (2023: £2.7m) was recognised in respect of social

security liabilities on share-based payments.

Share-based payments reserve

The share-based payments reserve represents the obligation of the Group in relation to

equity-settled share-based payment transactions. Details of movements in the share-based

payments reserve are shown on the Statement of Changes in Shareholders’ Equity.

Notes to the Financial Statements continued

Year ended 30 June 2024

192 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

26. Share-based payments continued

Outstanding equity-settled share-based payments continued

			Not
	Option price	2024	exercisable
Date of grant	Pence	Number	after
DBP
24 September 2021	—	637,949	—
12 October 2022	—	878,493	—
25 September 2023	—	07,057	— 1
Total DBP awards		1,623,499
ELTIP
15 July 2021	—	155	—
15 July 2022	—	1,362,056	—
17 July 2023	—	1,707,838	—
Total ELTIP awards		3,070,049
Tot a l		25,529,567

Further information relating to the share-based payment schemes

Sharesave

Under the Sharesave, participants are required to make monthly contributions to an HMRC

approved savings contract with a bank or building society for a period of three or five

years. On entering into the savings contract, participants are granted an option to acquire

ordinary shares in the Company at an exercise price determined under the rules of the

Sharesave. The Sharesave is open to all eligible employees as determined by the Board

and is not subject to the satisfaction of any performance conditions.

LTPP

The grant of awards under the LTPP is at the discretion of the Remuneration Committee

taking into account individual performance and overall performance of the Group. Vesting

under this scheme is dependent upon performance conditions including TSR, EPS, ROCE

and GHG emissions. Further details can be found in the Remuneration Report on pages

134 and 135.

DBP

Deferred shares are held in accordance with the DBP as approved by the shareholders

at the 2015 AGM. The DBP is currently utilised to hold shares awarded in respect of any

bonus earned in excess of 100% of base salary. Further details can be found on page 138.

ELTIP

The Board approved the 2023 Award in July 2023 and the 2022 Award in July 2022 under

the ELTIP. The Awards were made to all eligible employees employed as at 17 July 2023

and 15 July 2022 respectively. Participants will be entitled to receive shares in the Company

when the 2022 Award vests on 1 July 2024, and participants of the 2023 Award will be

entitled to receive shares in the Company when the Award vests on 1 July 2025. Senior

management is not eligible to participate in the ELTIP. The Awards are not subject to the

satisfaction of any performance condition other than that participants remain employed

by the Group and have not resigned before the end of the vesting period.

Number and weighted average exercise price of outstanding share-based payments

The number and weighted average exercise prices of options and awards made under the

Group’s share option schemes were as follows:

	2024		2023
	Weighted		Weighted
	average		average
	exercise		exercise
	price in	Number of	price in	Number of
LTPP	pence	award units	pence	award units
Outstanding at 1 July	—	8,947,593	—	7,823,199
Forfeited during the year	—	(2,593,279)	—	(1,161,682)
Reinstated	—	—	—	8,989
Exercised during the year	—	(538,946)	—	(1,751,100)
Granted during the year	—	4,497,287	—	4,028,187
Outstanding at 30 June	—	10,312,655	—	8,947,593
Exercisable at 30 June	—	—	—	—

	2024		2023
	Weighted		Weighted
	average		average
	exercise		exercise
	price in	Number of	price in	Number of
Sharesave	pence	award units	pence	award units
Outstanding at 1 July	398	11,322,268	474	8,945,381
Forfeited during the year	423	(2,757,679)	532	(4,235,493)
Exercised during the year	454	(590,690)	461	(25,188)
Granted during the year	381	2,549,465	347	6,637,568
Outstanding at 30 June	384	10,523,364	398	11,322,268
Exercisable at 30 June	—	—	—	—

Strategic Report Governance Financial Statements

193Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

26. Share-based payments continued

Number and weighted average exercise price of outstanding share-based

paymentscontinued

	2024			2023
	Weighted			Weighted
	average			average
	exercise			exercise
	price in		Number of	price in	Number of
DBP	pence		award units	pence	award units
Outstanding at 1 July	—		1,528,406	—	1,225,640
Forfeited during the year	—		(11,964)	—	(25,123)
Exercised during the year	—		—	—	(592,998)
Granted during the year	—	07,	05 7	—	920,887 1
Outstanding at 30 June	—		1,623,499	—	1,528,406
Exercisable at 30 June	—		—	—	—

	2024		2023
	Weighted		Weighted
	average		average
	exercise		exercise
	price in	Number of	price in	Number of
ELTIP	pence	award units	pence	award units
Outstanding at 1 July	—	2,373,943	—	1,879,686
Forfeited during the year	—	(463,741)	—	(387,990)
Exercised during the year	—	(812,867)	—	(910,719)
Granted during the year	—	1,972,714	—	1,792,966
Outstanding at 30 June	—	3,070,049	—	2,373,943
Exercisable at 30 June	—	—	—	—

The weighted average share price, at the date of exercise, of share options exercised during

the year was 460.3 pence (2023: 368.8 pence). The weighted average life for all schemes

outstanding at the end of the year was 1.9 years (2023: 2.1 years).

Fair value of options and awards granted in the year

Weighted average fair value of options granted

			Weighted average fair value of
			options granted
		2024	2023
	Valuation model	Pence	Pence
Sharesave	Black Scholes model	112.3	132.9
LTPP	Black Scholes and Monte Carlo models 1	473.1	260.7
DBP	Black Scholes model	471.1	3 24.1
ELTIP	Black Scholes model	366.4	399.7

1 The TSR portion of the award is valued using a Monte Carlo model. Other elements of the award are valued using a Black Scholes model. The

valuations have also been adjusted for any post-vesting holding period with the adjustment calculated using a Finnerty and Chaffe model.

Inputs used to determine fair value of options

The weighted average inputs to the valuation models were as follows:

			Grants 2024				Grants 2023
	ELTIP	Sharesave	LTPP	DBP	ELTIP	Sharesave	LTPP	DBP
Average share
price	408p	466p	563p	472p	471p	467p	325p	325p
Average exercise
price	—	381p	—	—	—	347p	—	—
Expected volatility	32.9%	29.1%	32.3%	31.7%	37.3%	37.6%	44.8%	38.2%
	2.0	3.5	3.0	3.0	2.0	3.5	3.0	3.0
Expected life	years	years	years	years	years	years	years	years
Risk-free interest
rate	5.30%	4.34%	3.60%	4.51%	4.14%	3.28%	4.17%	4.35%
Expected
dividends	5.4%	4.1%	—	—	8.2%	5.9%	—	—

Expected volatility was determined by reference to the historical volatility of the Group’s

share price over a period consistent with the expected life of the options. The expected

life used in the models has been adjusted, based on the Directors’ best estimate, for the

effects of non-transferability, exercise restrictions and behavioural considerations.

Notes to the Financial Statements continued

Year ended 30 June 2024

194 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

27. Non-controlling interests

	Group
Movement in non-controlling interest share of net assets recognised in	2024	2023
the Consolidated Balance Sheet	£m	£m
At 1 July	0.5	0.8
Distribution of profits to non- controlling partner	(0.4)	(0.3)
Share of profit for the year recognised in the Consolidated
Income Statement	—	—
At 30 June	0.1	0.5

There are no significant restrictions on the ability of the Group to access or use assets

and settle liabilities. Detailed arrangements for each subsidiary are laid out in the relevant

shareholder and partnership agreements.

28. Contingent liabilities

Contingent liabilities related to subsidiaries

The Company has guaranteed certain bank borrowings of its subsidiary undertakings.

Certain subsidiary undertakings have commitments for the purchase of trading stock

entered into in the normal course of business.

In the normal course of business, the Group has given counter-indemnities in respect of

performance bonds and financial guarantees. At 30 June 2024 the bonds and guarantees

amount to £419.9m (2023: £412.7m) and, at the date of these Financial Statements, the

possibility of cash outflow is considered minimal and no provision is required.

External wall systems

As disclosed in note 19, on 13 March 2023, the Group signed the Self-Remediation Terms

and Contract and is continuing to undertake a review of all of its current and legacy

buildings where it has used EWS or cladding solutions. Approved inspectors signed off

all of our buildings, including the EWS or cladding used, as compliant with the relevant

building regulations at the time of completion.

At 30 June 2024, the Group held provisions of £628.1m (2023: £535.9m) in relation to EWS

and associated reviews, based on management’s best estimate of the cost and timing

of remediation of in-scope buildings. It is possible that as remediation work proceeds,

additional remedial works are required which do not relate to EWS or cladding solutions.

Such works may not have been identified from the reviews and physical inspections

undertaken to date and may only be identified when detailed remediation work is in

progress. Therefore, the nature, timing and extent of any such costs were unknown

at the balance sheet date.

It is also possible that the number of buildings requiring remediation may increase.

This could occur because buildings which hold valid EWS1 certificates are found to require

remediation or because investigatory works identify remediation not previously identified.

In addition, we recognise that the retrospective review of building materials and fire safety

matters continues to evolve. The Financial Statements have been prepared based on

currently available information and regulatory guidance. However, these estimates may be

updated if government legislation and regulation further evolve.

On 31 May 2023 the Group signed the Scottish Safer Buildings Accord, committing to resolve

life-critical fire safety defects in multi-occupancy residential domestic or part-domestic

buildings, over 11 metres, built by us as a developer in the period of 30 years to 1 June 2022.

This Accord is not legally binding, but we are committed to working in good faith with the

Scottish Government to agree a legal form contract. The Group has undertaken preliminary

cost assessments at multi-occupancy buildings over 11 metres in Scotland at which fire

safety defects have been identified. The Group’s EWS provision at 30 June 2024 reflects

the outcome of these assessments. The estimates are based on the assumption that the

standard of remediation required in Scotland is consistent with that in England and Wales.

The Housing (Cladding Remediation) (Scotland) Act 2024, which became law on 21 June 2024,

has provided a framework on which the remediation programme in Scotland can be based,

but requires secondary legislation and further contractual agreement with developers to

determine the details. The estimated cost may vary depending on the final form of the

developer remediation contract agreed with the Scottish Government.

During the year, warranty providers received claims under warranties for building safety

matters on three developments historically delivered by the Group. Further investigation

is required to determine whether the nature and extent of any remediation work is

incremental to that already expected and we expect this process to be completed within

the next financial year.

Reinforced concrete frames

As disclosed in note 19, the Group is undertaking remediation at developments designed

by certain engineering firms or associated companies. The Financial Statements have been

prepared based on currently available information; however, the detailed review is ongoing

and the extent and cost of any remedial work may change as this work progresses.

We are actively seeking to recover costs from third parties in respect of EWS and

reinforced concrete frames; however, there is no certainty regarding the extent of any

financial recovery.

Contingent liabilities related to JVs

The Group has given counter-indemnities in respect of performance bonds and financial

guarantees to its JVs totalling £5.0m at 30 June 2024 (2023: £9.5m).

The Group has also given a number of performance guarantees in respect of the obligations

of its JVs, requiring the Group to complete development agreement contractual obligations

in the event that the JVs do not perform as required under the terms of the related contracts.

At 30 June 2024, the probability of any loss to the Group resulting from these guarantees

is considered to be remote.

Strategic Report Governance Financial Statements

195Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

28. Contingent liabilities continued

Contingent liabilities related to legal claims

Provision is made for the Directors’ best estimates of all known material legal claims and

all legal actions in progress. The Group takes legal advice as to the likelihood of success

of claims and actions and no provision is made (other than for legal costs) where the

Directors consider, based on such advice, that claims or actions are unlikely to succeed,

or a sufficiently reliable estimate of the potential obligations cannot be made.

Contingent liability in respect of the investigation by the Competition

and Markets Authority

On 26 February 2024, the Competition and Markets Authority (CMA) launched an investigation

under Chapter I of the Competition Act 1998 into suspected breaches of competition law

by eight housebuilders, relating to the exchange of competitively sensitive information,

including the Company and its subsidiaries. We continue to co-operate with the CMA in its

investigation. The timing of the conclusions of this investigation and any potential impact

on the Group is unknown.

29. Related party transactions

Directors of Barratt Developments PLC and remuneration of key personnel

The Board and certain members of senior management are related parties within the

definition of IAS 24 (Revised): ‘Related Party Disclosures’ and the Board members are

related parties within the definition of Chapter 11 of the UK Listing Rules. There is no

difference between transactions with key personnel of the Company and transactions

with key personnel of the Group.

Disclosures related to the remuneration of key personnel as defined in IAS 24 are given

in note 5.

There have been no related party transactions as defined in Listing Rule 11.1.5R for the year

ended 30 June 2024.

Transactions between the Company and its subsidiaries and a former JV

The Company has entered into transactions with its subsidiary undertakings in respect of

funding and Group services which include management accounting and audit, sales and

marketing, IT, company secretarial, architects and purchasing. Recharges are made to the

subsidiaries based on their utilisation of these services.

	Company
	2024	2023
	£m	£m
Transactions between the Company and its subsidiaries and former JV during the year:
Charges in respect of management and other services provided
to subsidiaries	158.0	142.7
Net interest paid by the Company on net loans from subsidiaries	16.9	18.4
Dividends received from subsidiary undertakings	516.0	500.0
Distribution received from a former JV of the Company 1	—	0.1
Balances at 30 June:
Amounts due by the Company to subsidiary undertakings	91.3	354.2
Amounts due to the Company from subsidiary undertakings	245.1	79.0

1 The Company’s only JV, Rose Shared Equity LLP, was wound up during the prior year. Prior to this, it made a final distribution to its members.

The Company and its subsidiaries have entered into counter-indemnities in the normal

course of business in respect of performance bonds.

Transactions between the Group and its JVs

The Group has entered into transactions with its JVs as follows:

	Group
	2024	2023
	£m	£m
Transactions between the Group and its JVs during the year:
Charges in respect of development management and other services provided to JVs	10.3	8.4
Net interest charges in respect of funding provided to JVs	2 .1	1.6
Dividends received from JVs	7.1	34.8
Balances at 30 June:
Funding loans and interest due from JVs net of impairment	86.3	66.5
Other amounts due from JVs	27. 8	37.1
Loans and other amounts due to JVs	(0.6)	(0.5)

Changes in the amounts invested by the Group in joint ventures are shown in note 12.

In addition, one of the Group’s subsidiaries, BDW Trading Limited, contracts with a number

of the Group’s JVs to provide construction services. The Group’s contingent liabilities

relating to its JVs are disclosed in note 28.

Notes to the Financial Statements continued

Year ended 30 June 2024

196 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

30. Financial risk management

The Group’s approach to risk management and the principal operational risks of the business

are detailed on pages 63 to 70. The Group’s financial assets and financial liabilities are

detailed in note 21.

The Group’s operations and financing arrangements expose it to a variety of financial risks,

of which the most material are: liquidity risk, the availability of funding at reasonable

margins, credit risk and interest rates. There is a regular, detailed system for the reporting

and forecasting of cash flows from operations to senior management including Executive

Directors to ensure that liquidity risks are promptly identified and appropriate mitigating

actions are taken by the Treasury department. These forecasts are further stress tested

at a Group level on a regular basis to ensure that adequate headroom within facilities and

banking covenants is maintained. In addition, the Group has a risk management programme

that seeks to limit the adverse effects of the other risks on its financial performance.

The Board approves treasury policies and certain day-to-day treasury activities have been

delegated to a centralised Treasury Operating Committee, which in turn regularly reports

to the Board. The Treasury department implements guidelines that are established by the

Board and the Treasury Operating Committee.

Liquidity risk

Liquidity risk is the risk that the Group will be unable to meet its liabilities as they fall due.

The Group actively maintains a mixture of long-term and medium-term committed facilities

that are designed to ensure that the Group has sufficient available funds for operations.

The Group’s borrowings are typically cyclical throughout the financial year and peak in

April to May, and October to November of each year, due to seasonal trends in income.

Accordingly, the Group maintains sufficient facility headroom to cover these requirements.

On a normal operating basis, the Group has a policy of maintaining a minimum headroom

of £150.0m. The Group identifies and takes appropriate actions based on its regular,

detailed system for the reporting and forecasting of cash flows from its operations.

The Group’s drawn debt, excluding fees, represented 22.2% (2023: 22.6%) of available

committed facilities at 30 June 2024. In addition, the Group had £1,065.3m (2023: £1,269.1m)

of cash and cash equivalents.

The Group was in compliance with its financial covenants at 30 June 2024. The Group’s

resilience to its principal risks has been modelled, together with possible mitigating

actions, over a three-year period, considering the prospects of the combined group. At the

date of approval of the Financial Statements, the Group’s internal forecasts indicate that

it will be able to operate within its current facilities and remain in compliance with these

covenants for the foreseeable future, being at least 12 months from the date of signing

these Financial Statements.

One of the Group’s objectives is to minimise refinancing risk. The Group has a policy that

the average maturity of its committed bank facilities and private placement notes is a

minimum of two years with a target of two to three years. At 30 June 2024, the average

maturity of the Group’s committed facilities was 4.1 years (2023: 4.4 years).

The Group maintains certain committed floating rate facilities with banks to ensure

sufficient liquidity for its operations. The undrawn committed facilities available to the

Group, in respect of which all conditions precedent had been met, were as follows:

	Group		Company
	2024	2023	2024	2023
Expiry date	£m	£m	£m	£m
In more than two years but not more than five years	700.0	700.0	700.0	700.0

In addition, the Group had undrawn, uncommitted overdraft facilities available at 30 June 2024

of £37.0m (2023: £37.0m).

The expected undiscounted cash flows of the Group and Company financial liabilities, by

remaining contractual maturity at the balance sheet date, were as follows:

				Less
		Carrying	Contractual	than	1-2	2-5	Over 5
		amount	cash flow	1 year	years	years	years
Group	Notes	£m	£m	£m	£m	£m	£m
2024
Loans and borrowings
(including bank overdrafts)1	21	200.0	219.3	5.5	5.5	208.3	—
Trade and other payables 2	21	1,025.9	1,045.7	862.0	131.0	42.3	10.4
Lease liabilities	21	42.8	47.7	13.6	10.9	16.0	7.2
		1,268.7	1,312.7	881.1	147.4	266.6	17.6
2023
Loans and borrowings
(including bank overdrafts)1	21	203.4	224.9	5.5	5.5	213.9	—
Trade and other payables 2	21	1,119.5	1,140.1	937.8	133.0	67.4	1.9
Lease liabilities	21	46.2	50.3	13.3	11.4	18.8	6.8
		1,369.1	1,415.3	956.6	149.9	300.1	8.7

1 The Group is party to banking agreements that include a legal right of offset, which enables the overdraft balances of £nil (2023: £3.4m) to be

settled net with cash balances. These balances have been excluded from contractual cash flows.

2 Excludes deferred income, payments received in excess of amounts recoverable on contracts, tax and social security and other non-financial liabilities.

The Group had no derivative financial instruments at 30 June 2024 or 30 June 2023.

Strategic Report Governance Financial Statements

197Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

30. Financial risk management continued

Liquidity risk continued

				Less
		Carrying	Contractual	than	1–2	2–5	Over 5
		amount	cash flow	1 year	years	years	years
Company	Notes	£m	£m	£m	£m	£m	£m
2024
Loans and borrowings
(including bank overdrafts)	21	200.0	219.3	5.5	5.5	208.3	—
Trade and other payables 1	21	20.6	20.6	20.6	—	—	—
Intercompany payables	21	91.3	91.3	91.3	—	—	—
Lease liabilities	21	1.3	1.4	0.7	0.4	0.3	—
		313.2	332.6	118.1	5.9	208.6	—
2023
Loans and borrowings
(including bank overdrafts)	21	200.0	224.9	5.5	5.5	213.9	—
Trade and other payables1	21	18.1	18.1	18.1	—	—	—
Intercompany payables	21	354.2	354.2	354.2	—	—	—
Lease liabilities	21	4.2	4.3	1.3	1.2	1.8	—
		576.5	601.5	379.1	6.7	215.7	—

1 Excludes tax and social security and other non-financial liabilities.

The Company had no derivative financial instruments at 30 June 2024 or 30 June 2023.

Market risk (price risk)

Interest rate risk

The Group has both interest-bearing assets and interest-bearing liabilities. Floating rate

borrowings expose the Group to cash flow interest rate risk, and fixed rate borrowings

expose the Group to fair value interest rate risk.

The Group has a conservative treasury risk management strategy and the Group’s interest

rates are set using fixed rate debt instruments.

Due to the level of the Group’s interest cover ratio, and in accordance with the Group’s

policy to hedge a proportion of the forecast RCF drawings based on the Group’s three-year

plan, no interest rate hedges are currently required.

The exposure of the Group’s financial liabilities to interest rate risk is as follows:

			Non-interest
	Floating rate	Fixed rate	-bearing
	financial	financial	financial
	liabilities	liabilities	liabilities	Total
Group	£m	£m	£m	£m
2024
Financial liability exposure to interest rate risk	—	200.0	1,068.7	1,268.7
2023
Financial liability exposure to interest rate risk	—	200.0	1,169.1	1,369.1

The Group retained a strong cash position throughout the year and, therefore, the Group

did not draw on its RCF during the year and the use of other facilities was minimal.

No interest was paid by the Group on floating rate borrowings in 2024 or 2023.

Sterling USPP notes of £200.0m were issued on 22 August 2017 with a fixed coupon of

2.77% and a ten-year maturity. These fixed rate notes expose the Group and Company to

fair value interest rate risk.

The exposure of the Company’s financial liabilities to interest rate risk is as follows:

			Non-interest
	Floating rate	Fixed rate	-bearing
	financial	financial	financial
	liabilities	liabilities	liabilities	Total
Company	£m	£m	£m	£m
2024
Financial liability exposure
to interest rate risk	77.8	200.0	35.4	313.2
2023
Financial liability exposure to interest rate risk	340.7	200.0	35.8	576.5

Notes to the Financial Statements continued

Year ended 30 June 2024

198 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

30. Financial risk management continued

Market risk (price risk) continued

Interest rate risk continued

The Company’s floating rate financial liabilities comprise interest-bearing loans from other

Group undertakings, on which interest was charged at a rate of 4.0% throughout the year

(2023: 4.0%).

Sensitivity analysis

In the year ended 30 June 2024, if UK interest rates had been 1.0% higher/lower (considered

to be a reasonably possible change based on forecast Bank of England interest rates) and

all other variables were held constant, the Group’s pre-tax profit would increase/decrease

by £7.8m, the Group’s post-tax profit would increase/decrease by £5.9m and, as such, the

Group’s equity would increase/decrease by £5.9m.

Credit risk

In the majority of cases, the Group receives cash on legal completion for private sales

and receives advance stage payments from registered providers for affordable housing.

The Group has £1,065.3m (2023: £1,269.1m) on deposit or in current accounts with 14

(2023: 14) financial institutions. Other than this, neither the Group nor the Company has

a significant concentration of credit risk, as their exposure is spread over a large number

of counterparties and customers.

The Group manages credit risk through its credit policy. This limits its exposure to financial

institutions with high credit ratings, as set by international credit rating agencies, and

determines the maximum permissible exposure to any single counterparty.

The maximum exposure to any counterparty at 30 June 2024 was £141.2m (2023: £181.3m)

of cash on deposit with a financial institution. The carrying amount of financial assets

recorded in the Financial Statements, net of any allowance for losses, represents the

Group’s maximum exposure to credit risk.

As at 30 June 2024, the Company was exposed to £245.1m (2023: £79.0m) of credit risk

in relation to intercompany loans, which are considered to be of low credit risk and fully

recoverable, as well as financial guarantees, performance bonds and the bank borrowings

of subsidiary undertakings. Further details are provided in notes 28 and 29.

Capital risk management (cash flow risk)

The Group’s objectives when managing capital are to safeguard its ability to continue as a

going concern in order to provide returns for shareholders and meet its liabilities as they

fall due while maintaining an appropriate capital structure.

The Group manages its share capital as equity, as set out in the Statement of Changes

in Shareholders’ Equity, and its bank borrowings (being overdrafts and bank loans) and

its private placement notes as other financial liabilities, as set out in note 21. The Group

is subject to the prevailing conditions of the UK economy and the quantum of the Group’s

earnings is dependent upon the level of UK house prices. UK house prices are determined

by the UK economy and economic conditions, employment levels, interest rates, consumer

confidence, mortgage availability and competitor pricing. The Group’s approach to the

management of the principal operational risks of the business is detailed on pages 63 to 65.

Other methods by which the Group can manage its short-term and long-term capital

structure include: adjusting the level of dividend payments to shareholders (assuming the

Company is paying a dividend); issuing new share capital; arranging debt to meet liability

payments; and selling assets to reduce debt.

31. Post balance sheet events

On 21 August 2024, the Company acquired the full share capital of Redrow plc in an all

share transaction. On 23 August 2024, the Company issued 476,309,120 new ordinary shares

as consideration for this transaction.

In accordance with standard practice, the CMA has issued an Initial Enforcement Order

requiring the Barratt and Redrow businesses to continue to operate independently until

the CMA has formally accepted the undertakings proposed by the parties in response to its

limited concerns, or otherwise agrees to integration taking place.

Due to the short time between the completion of the acquisition and the signing of these

Financial Statements, the fair values of the consideration and the assets and liabilities

acquired are still being assessed.

32. Group subsidiary undertakings

Consolidation

The Financial Statements of subsidiary undertakings are consolidated from the date

when control passes to the Group, as defined in IFRS 3, using the acquisition method

of accounting up to the date control ceases. All of the subsidiaries’ identifiable assets

and liabilities, including contingent liabilities, existing at the date of acquisition

are recorded at their fair values. All changes to those assets and liabilities, and

the resulting gains and losses that arise after the Group has gained control of the

subsidiary are included in the Income Statement. All intra-Group transactions and

intercompany profits or losses are eliminated on consolidation.

The entities listed on the following pages, are subsidiaries of the Company or Group. All are

registered in England and Wales or Scotland, with the exception of SQ Holdings Limited,

which is registered in Guernsey. Unless otherwise stated, the results of these entities are

consolidated within these Financial Statements.

Strategic Report Governance Financial Statements

199Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

32. Group subsidiary undertakings continued

Audit exemption

The following UK subsidiaries will take advantage of the audit exemption set out within Section

479A of the Companies Act 2006 for the year ended 30 June 2024. The undertakings listed

below are 100% owned, either directly or indirectly, by Barratt Developments PLC.

Subsidiary	Company number
Acre Developments Limited	SC091934
Base East Central Rochdale LLP	OC318544
Base Hattersley LLP	OC318541
Base Regeneration LLP	OC318540
Basildon Regeneration (Barratt Wilson Bowden) Limited	05876010
BDW (F.R.) Limited	05876012
BDW (F.R. Commercial) Limited	05876013
BDW North Scotland Limited	SC027535
BLLQ LLP	OC411400
BLLQ2 Limited	12373138
David Wilson Homes Limited	00830271
Milton Park Homes Limited	03787306
Wilson Bowden Limited	02059194
Yeovil Developments Limited	05285388

In accordance with Section 479C of the Companies Act 2006, the Company will guarantee

the debts and liabilities of the UK subsidiary undertakings listed in the preceding table.

As at 30 June 2024, the total sum of these debts and liabilities is £60.7m.

At 30 June 2024 the Group owned 100% of the ordinary share capital of the following subsidiaries:

Subsidiary

Registered

office Notes

Acre Developments Limited 2 A

Advance Housing Limited 1 A

Ambrose Builders Limited 1 A

Barratt Bristol Limited 1

Barratt Central Limited 1

Barratt Chester Limited 1 A

Barratt Commercial Limited 1

Barratt Construction (Southern) Limited 1 A

Barratt Corporate Secretarial Services Limited 1

Barratt Developments (International) Limited 1

Barratt Dormant (Atlantic Quay) Limited 1 A

	Registered
Subsidiary	office	Notes
Barratt Dormant (Blackpool) Limited	1	A
Barratt Dormant (Harlow) Limited	1	A
Barratt Dormant (Tyers Bros. Oakham) Limited	1	A
Barratt Dormant (Walton) Limited	1	A
Barratt Dormant (Tyers Bros. Oakham) Limited	1	A
Barratt Dormant (WBConstruction) Limited	1	A
Barratt Dormant (WB Developments) Limited	1	A
Barratt Dormant (WB Properties Developments) Limited	1	A
Barratt Dormant (WB Properties Northern) Limited	1	A
Barratt East Anglia Limited	1	A
Barratt East Midlands Limited	1
Barratt East Scotland Limited	58	A
Barratt Eastern Counties Limited	1	A
Barratt Edinburgh Limited	2	A
Barratt Evolution Limited	1	A
Barratt Falkirk Limited	2	A
Barratt Leeds Limited	1
Barratt London Limited	1
Barratt Manchester Limited	1	A
Barratt Newcastle Limited	1	A
Barratt North London Limited	1
Barratt Northampton Limited	1
Barratt Northern Limited	1
Barratt Norwich Limited	1	A
Barratt Poppleton Limited	1	A
Barratt Preston Limited	1	A
Barratt Properties Limited	1	A
Barratt Redrow Limited	1
Barratt Scottish Holdings Limited	2	A
Barratt South London Limited	1
Barratt South Wales Limited	1
Barratt South West Limited	1	A
Barratt Southern Counties Limited	1
Barratt Southern Limited	1
Barratt Southern Properties Limited	1	A
Barratt Special Projects Limited	1	A
Barratt St Mary’s Limited	1	A
Barratt St Paul’s Limited	1	A
Barratt Sutton Coldfield Limited	1	A
Barratt Trade And Property Company Limited	2	A
Barratt Urban Construction (East London) Limited	1	A

Notes to the Financial Statements continued

Year ended 30 June 2024

200 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

	Registered
Subsidiary	office	Notes
Barratt Urban Construction (Northern) Limited	1	A
Barratt Urban Construction (Scotland) Limited	2	A
Barratt West Midlands Limited	1
Barratt West Scotland Limited	2
Barratt Woking Limited	1	A
Barratt York Limited	1
Bart 225 Limited	1	A
Basildon Regeneration (Barratt Wilson Bowden) Limited	1	A
BDW (F.R.) Limited	1	A
BDW (F.R. Commercial) Limited	1	A
BDW North Scotland Limited	51
BDW Trading Limited	1
Bradgate Development Services Limited	1	A
Broad Oak Homes Limited	1	A
C V (Ward) Limited	1	A
Crossbourne Construction Limited	1	A
David Wilson Estates Limited	1	A
David Wilson Homes (Anglia) Limited	1	A
David Wilson Homes (East Midlands) Limited	1	A
David Wilson Homes (Home Counties) Limited	1	A
David Wilson Homes (North Midlands) Limited	1	A
David Wilson Homes (Northern) Limited	1	A
David Wilson Homes (South Midlands) Limited	1	A
David Wilson Homes (Southern) Limited	1	A
David Wilson Homes (Western) Limited	1	A
David Wilson Homes Land (No 10) Limited	1	A
David Wilson Homes Land (No 11) Limited	1	A
David Wilson Homes Land (No 13) Limited	1	A
David Wilson Homes Land (No 14) Limited	1	A
David Wilson Homes Land (No 15) Limited	1	A
David Wilson Homes Limited	1	A
David Wilson Homes Services Limited	1	A
David Wilson Homes Yorkshire Limited	1	A
Decorfresh Projects Limited	1	A
Dicconson Holdings Limited	1	A
E. Barker Limited	1	A
E. Geary & Son Limited	1	A
English Oak Homes Limited	1
Francis (Springmeadows) Limited	1	A

	Registered
Subsidiary	office	Notes
Frenchay Developments Limited	1	A
G.D. Thorner (Construction) Limited	1	A
G.D. Thorner (Holdings) Limited	1	A
Gladman Developments Limited	1	A
Glasgow Trust Limited	2	A
Hartswood House Limited	1
Hawkstone (South West) Limited	1	A
Idle Works Limited	1	A
J.G.Parker Limited	1	A
James Harrison (Contracts) Limited	2	A
Janellis (No.2) Limited	1	A
Kealoha 11 Limited	1	A
Kealoha Limited	1	A
Kingsoak Homes Limited	1
Knightsdale Homes Limited	1
Lindmere Construction Limited	1	A
Marple Development Company Limited	1	A
Milton Park Homes Limited	1	A
Norfolk Garden Estates Limited	1	A
North West Land Developments Limited	1	A
Oregon Contract Management Limited	51	A
Oregon Timber Frame Limited	51	A
Oregon Timber Frame (England) Limited	1	A
Redbourne Builders Limited	1	A
Roland Bardsley Homes Limited	1	A
Scothomes Limited	2	A
Scottish Homes Investment Company, Limited	2	A
Skydream Property Co. Limited	1	A
Squires Bridge Homes Limited	1	A
Squires Bridge Limited	1	A
Swift Properties Limited	1	A
The French House Limited	1	A
Tomnik Limited	1	A
Trencherwood Commercial Limited	1	A
Trencherwood Construction Limited	1	A
Trencherwood Developments Limited	1	A
Trencherwood Estates Limited	1	A
Trencherwood Group Services Limited	1	A
Trencherwood Homes (Holdings) Limited	1	A

32. Group subsidiary undertakings continued

Audit exemption continued

Strategic Report Governance Financial Statements

201Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

	Registered
Subsidiary	office	Notes
Trencherwood Homes (Midlands) Limited	1	A
Trencherwood Homes (South Western) Limited	1	A
Trencherwood Homes (Southern) Limited	1	A
Trencherwood Homes Limited	1	A
Trencherwood Housing Developments Limited	1	A
Trencherwood Investments Limited	1	A
Trencherwood Land Holdings Limited	1	A
Trencherwood Land Limited	1	A
Trencherwood Retirement Homes Limited	1	A
Vizion (Milton Keynes) Limited	1	A
Ward Holdings Limited	1	A
Ward Homes (London) Limited	1	A
Ward Homes (North Thames) Limited	1	A
Ward Homes (South Eastern) Limited	1	A
Ward Homes Group Limited	1	A
Ward Homes Limited	1	A
Ward Insurance Services Limited	1	A
Wards Construction (Industrial) Limited	1	A
Wards Construction (Investments) Limited	1	A
Wards Country Houses Limited	1	A
Waterton Tennis Centre Limited	29	A
William Corah & Son Limited	1	A
William Corah Joinery Limited	1	A
Wilson Bowden (Atlantic Quay Number 2) Limited	1	A
Wilson Bowden (Ravenscraig) Limited	1
Wilson Bowden City Homes Limited	1	A
Wilson Bowden Developments Limited	1	A
Wilson Bowden Group Services Limited	1	A
Wilson Bowden Limited	1
Yeovil Developments Limited	1	A

Subsidiaries of the Group which are management companies limited by guarantee:

	Registered
Subsidiary	office	Notes
28-33 Imperial Park Management Company Limited	26	A, B
254-257 Scholars Place Management Company Limited	45	A, B
Abbey Gate Residents Management Company Limited	5	A, B
Abbey View Residents Management Company Limited	57	A, B
Abbotts Green (Woolpit) Management Company Limited	14	A, B
Abbotts Meadow (Steventon) Management Company Limited	12	A, B
Adderbury Fields Management Company Limited	5	A, B
Aldhelm Court Management Company Limited	30	A, B
Amberswood Rise Management Company Limited	57	A, B
Ambler’s Meadow (East Ardsley) Management Company Limited	10	A, B
Applegarth Manor (Oulton) Management Company Limited	10	A, B
Applegate (Sittingbourne) Management Company Limited	11	A, B
Ashridge Grange (Wokingham) Management Company Limited	10	A, B
Ashtree Grove Residents Management Company Limited	23	A, B
Aylesham (Central) Residents Management Company Limited	11	A, B
Aylesham Village (Barratt) Residents Management Company Limited	49	A, B
B5 Central Residents Management Company Limited	23	A, B
Baggeridge Village Management Company Limited	5	A, B
Barrow Farm Management Company Limited	32	A, B
Barum Knoll, Barnstaple Management Company Limited	54	A, B
Beaufort Park (Wootton Bassett) Management Limited	50	A, B
Beavans House Management Company Limited	1	A, B
Beck Lane, Sutton-in-Ashfield (The Hawthorns) Management Company Limited	26	A, B
Beeston Quarter Apartments (Beeston) Management Company Limited	8	A, B
Belle Vue (Doncaster) Management Company Limited	6	A, B
Bentley Fields Residents Management Company Limited	23	A, B
Bermondsey Heights Residents Energy Management Company Limited	4	A, B
Bermondsey Heights Residents Management Company Limited	4	A, B
Berry Acres (Paignton) Management Company Limited	40	A, B
Bilberry Chase Residents Management Company Limited	20	A, B
Birds Marsh View Chippenham Apartment Resident Management
Company Limited	13	A, B
Bishop Fields (Hereford) Management Company Limited	20	A, B
Bishop Park (Henfield) Management Company Limited	53	A, B
Bishops Green (Wells) Management Company Limited	30	A, B
Bishop’s Hill Residents Management Company Limited	23	A, B
Blackberry Park Residents Management Company Limited	13	A, B
Blackdown Heights (Crimchard) Management Company Limited	31	A, B
Blackhorse View Energy Centre Management Company	1	A, B

32. Group subsidiary undertakings continued

Audit exemption continued

Notes to the Financial Statements continued

Year ended 30 June 2024

202 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

	Registered
Subsidiary	office	Notes
Blackhorse View Residents Management Company	1	A, B
Blackwater Reach (Southminster) Management Company Limited	52	A, B
Blossomfields Residents Management Company Limited	5	A, B
Bluebell Woods (Wyke) Management Company Limited	10	A, B
Blythe House Management Company Limited	39	A, B
Bodington Manor (Adel) Management Company Limited	9	A, B
Bowds House Management Company Limited	1	A, B
Braid Park (Tiverton) Management Company Limited	40	A, B
Brindsley (Old Mill Farm) Management Company Limited	60	A, B
Broken Stone Road (Blackburn) Residents Management Company Limited	57	A, B
Brooklands (Milton Keynes) Management Company Limited	54	A, B
Brookside Meadows Phase 1B Residents Management Company Limited	41	A, B
Brookwood Meadows (Westham) Management Company Limited	57	A, B
Brue Place Residents Management Company Limited	32	A, B
Bruneval Gardens (Wellesley) Management Company Limited	10	A, B
Brun Lea Heights Resident Management Company Limited	64	A, B
Buckley Gardens (Melksham) Management Company Limited	59	A, B
Bure Meadows (Aylsham) Management Company Limited	10	A, B
Burlington Road Residents’ Management Company Limited	1	A, B
Calder Rise Residents Management Company Limited	26	A, B
Canal Quarter Resident Management Company Limited	16	A, B
Cane Hill Park (Coulsdon) Management Company Limited	54	A, B
Cane Hill Park (Gateway) Management Company Limited	53	A, B
Canes Meadow (Brixton) Management Company Limited	40	A, B
Canford Paddock (Poole) Management Company Limited	46	A, B
Carlton Green (Carlton) Management Company Limited	9	A, B
Castle Hill (DWH1) Residents Management Company Limited	8	A, B
Castlegate & Mowbray Park Management Company Limited	6	A, B
Cedar Ridge Management Company Limited	10	A, B
Central Area Heat Company Limited	12	A, B
Centurion Meadows (Burley) Management Company Limited	54	A, B
Centurion Village Management Company Limited	57	A, B
Ceres Rise Residents Management Company Limited	16	A, B
Chalkers Rise (Peacehaven) Management Company Limited	10	A, B
Chapel Gate (Launceston) Management Company Limited	40	A, B
Charfield Gardens Management Company Limited	10	A, B
Cherry Blossom Meadow (Newbury) Management Company Limited	12	A, B
City Heights Apartments (Leicester) Management Company Limited	8	A, B
Clements Gate (Poringland 2) Management Company Limited	54	A, B

	Registered
Subsidiary	office	Notes
Clipstone Park (Leighton Buzzard) Management Company Limited	54	A, B
Coat Grove (Martock) Management Company Limited	40	A, B
Colliers Court (Speedwell) Management Company Limited	13	A, B
Compass Point (Swanage Grammar School)
Management Company Limited	46	A, B
Compass Point (Swanage) Management Company Limited	46	A, B
Constable Gardens (Residents) Management Company Limited	14	A, B
Corinthian Place Management Company Limited	54	A, B
Cottam Gardens Resident Management Company Limited	57	A, B
Cringleford Heights Management Company Limited	61	A, B
Croft Gardens (Phase 2) Management Company Limited	12	A, B
Daracombe Gardens Management Company Limited	33	A, B
Darwin Green Management Company Limited	54	A, B
De Cheney Gardens Management Company Limited	30	A, B
De Havilland Place (Hatfield) Limited	22	A, B
De Lacy Fields KM8 Management Company Limited	5	A, B
De Lacy Fields KM12 Management Company Limited	5	A, B
Delamere Park (Nunney) Management Company Limited	50	A, B
Dickens Gate (Staplehurst) Management Company Limited	8	A, B
Dida Gardens (Didcot) Management Company Limited	12	A, B
Donnington Heights (Newbury) Management Company Limited	12	A, B
Doseley Park Residents Management Company Limited	5	A, B
Drayton Meadows Management Company Limited	23	A, B
Drovers Court (Micklefield) Management Company Limited	9	A, B
Dunmore Road (Abingdon) Management Company Limited	12	A, B
Dunstall Park (Tamworth) Residents Management Company Limited	20	A, B
Earls Park Management Company Limited	30	A, B
East Ham Market Energy Centre Management Company	54	A, B
East Ham Market Residents Management Company	54	A, B
Eastman Village Energy Centre Management Company Limited	1	A, B
Eastman Village Residents Management Company Limited	1	A, B
Ecclesden Park (Angmering) Management Company Limited	18	A, B
Edwalton (Sharp Hill) Management Company Limited	54	A, B
Eldebury Place (Chertsey) Management Company Limited	53	A, B
Elderwood (Bannerdale) Management Company Limited	9	A, B
Elm Tree Park (Rainworth) Management Company Limited	9	A, B
Elworthy Place (Wiveliscombe) Management Company Limited	31	A, B
Elysian Fields (Adel) Management Company Limited	10	A, B
Embden Grange (Tavistock) Management Company Limited	40	A, B

32. Group subsidiary undertakings continued

Audit exemption continued

Strategic Report Governance Financial Statements

203Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

		Registered
Subsidiary		office	Notes
Emmet’s Reach (Birkenshaw) Management Company Limited		54	A, B
Ersham Park (Hailsham) Management Company Limited		10	A, B
Fairfield Croft Management Company Limited		6	A, B
Fairfield (Stony Stratford) Management Company Limited		54	A, B
Fairway Gardens (Rustington) Management Company Limited		28	A, B
Farrier Place – Canford Paddock Phase 2 (Poole)
Management Company Limited		46	A, B
Ferris House Management Company Limited		54	A, B
Fiddington Management Company Limited		32	A, B
Filwood Park Management Company Limited		13	A, B
Finchwood Park Management Company Limited		7	A, B
Folliott’s Manor Residents Management Company Limited		20	A, B
Forest Walk, Whiteley Management Company Limited		48	A, B
Foundry Lea (Bridport) Management Company Limited		31	A, B
Fradley Manor Management Company Limited		20	A, B
Franklin Gardens (Darwin Green) Management Company Limited		14	A, B
Freemen’s Meadow Residents Management Company Limited		26	A, B
Garnett Wharf (Otley) Management Company Limited		9	A, B
Gateway Residents Management Company Limited		58	A, B
Gerway Management Limited		40	A, B
Gilden Park (Old Harlow) Residents Management Company Limited		8	A, B
Gillies Meadow (Basingstoke) Management Company Limited		12	A, B
Glenvale Park Management Company Limited		43	A, B
Grange Park (Hampsthwaite) Management Company Limited		10	A, B
Great Dunmow Grange Management Company Limited		18	A, B
H2363	Limited	50	A, B
Hallam Park Residents Management Company Limited		23	A, B
Hampton Water Management Company Limited		15	A, B
Hanwood Park Community Partnership Limited		17	A, B
Harbour Place (Bedhampton) Management Company Limited		35	A, B
Harbourside (East Quay Apartments 13–21 & 31–39)
Management Company Limited		29	A, B
Harclay Park Management Company Limited		57	A, B
Harlow Gateway Limited		25	A, B
Hartley Brook (Netherton) Management Company Limited		9	A, B
Haskins House Management Company Limited		1	A, B
Hawley Gardens Management Company Limited		36	A, B
Hawthorn Grove (Westham) Management Company Limited		57	A, B
Hawthorn Rise (Newton Abbot) Management Company Limited		54	A, B
Hayes Village Energy Centre Management Company Limited		1	A, B

	Registered
Subsidiary	office	Notes
Hayes Village Resident Management Company Limited	1	A, B
Heather Croft (Pickering) Management Company Limited	9	A, B
Helme Ridge (Meltham) Management Company Limited	54	A, B
Henbrook Gardens Management Company Limited	20	A, B
Hendon Waterside Energy Centre Management Company Limited	1	A, B
Hendon Waterside Residents Management Company Limited	1	A, B
Heron House (Wichelstowe) Management Company Limited	1	A, B
Hesslewood Park Management Company Limited	10	A, B
Hewenden Ridge (Cullingworth) Management Company Limited	9	A, B
Hidcote House Management Company Limited	39	A, B
High Elms Park (Hullbridge) Management Company Limited	54	A, B
High Forest (New Waltham) Management Company Limited	10	A, B
High Street Quarter Energy Centre Management Company Limited	1	A, B
High Street Quarter Residents Management Company Limited	1	A, B
Highgrove Gardens (Romsey) Management Company Limited	46	A, B
Hillside Gardens (Orchard RW) Residents Management Company Limited	40	A, B
Hollygate Park (Cotgrave) Management Company Limited	16	A, B
Infinity Park Derby Management Limited	1	A, B
Honeymans Helm (Highworth) Management Company Limited	59	A, B
Inglewhite Meadows Residents Management Company Limited	8	A, B
Inkersall Road (Chesterfield) Management Company Limited	9	A, B
Jenkins House Management Company Limited	1	A, B
Keeper’s Meadow Residents Management Company Limited	23	A, B
Kennett Heath Management Limited	8	A, B
Kilners Grange (Tongham) Management Company Limited	53	A, B
Kingfisher Meadow (Horsford) Management Company Limited	14	A, B
Kingfisher Meadows Residents Management Company Limited	23	A, B
Kingsbourne (Nantwich) Community Management Company Limited	8	A, B
Kingsbrook Estate Management Company Limited	16	A, B
Kings Chase Residents Management Company Limited	25	A, B
Kings Lodge (Hatfield) Management Company Limited	25	A, B
Kingsdown Gate (Swindon) Management Company Limited	13	A, B
Kingsley Meadows (Harrogate) Management Company Limited	6	A, B
Kingston Grange House Management Company Limited	23	A, B
Kipling Road (Ledbury) Residents Management Company Limited	20	A, B
Knights Park (Watton) Management Company Limited	54	A, B
Knights Rise (Temple Cloud) Management Company Limited	30	A, B
Knights View (Landgold) Management Company Limited	54	A, B
KP (Macclesfield) Residents Management Company Limited	26	A, B

32. Group subsidiary undertakings continued

Audit exemption continued

Notes to the Financial Statements continued

Year ended 30 June 2024

204 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

	Registered
Subsidiary	office	Notes
KW (Site B) Management Company Limited	12	A, B
Ladden Garden Village Apartment Blocks BCD
Management Company Limited	30	A, B
Ladden Garden Village Management Company Limited	30	A, B
Lakeside Walk (Hamworthy) Management Company Limited	35	A, B
Lancaster Gardens Management Company Limited	6	A, B
Lancaster Gardens (Phase 2) Management Company Limited	6	A, B
Langham Mews Management Company Limited	44	A, B
Languard View (Dovercourt) Residents Management Company Limited	14	A, B
Lavender Grange (Stondon) Residential Management Company Limited	54	A, B
Lavendon Fields (Olney) Residents Management Company Limited	57	A, B
Lay Wood (Devizes) Management Company Limited	13	A, B
Letcombe Gardens (Grove) Management Company Limited	41	A, B
Linmere (Houghton Regis) Residents Management Company Limited	15	A, B
Lock Keeper’s Gate (Low Barugh) Management Company Limited	10	A, B
Locksbridge Park (Andover) Management Company Limited	12	A, B
Lockwood Fields (Chidswell) Management Company Limited	10	A, B
Lubbesthorpe R5 Management Company Limited	60	A, B
Lucerne Fields (Ivybridge) Management Company Limited	40	A, B
Luneside Mills Management Company Limited	8	A, B
Lyde View Residents Management Company Limited	10	A, B
Macclesfield Road Management Company Limited	36	A, B
Madgwick Park Management Company Limited	46	A, B
Marham Park Management Company Limited	18	A, B
Market Warsop (Stonebridge Lane) Management Company Limited	16	A, B
Marston Park (Marston Moretaine) Management Company Limited	54	A, B
Martello Lakes (Barratt) Resident Management Company Limited	8	A, B
Martello Lakes (Hythe) Resident Management Company Limited	11	A, B
Martingale Chase (Newbury) Management Company Limited	8	A, B
Meadowburne Place (Willingdon) Management Company Limited	54	A, B
Meadowfields (Boroughbridge) Management Company Limited	9	A, B
Meadow View Watchfield Management Company Limited	13	A, B
Melton Mowbray (Kirby Lane) Management Company Limited	60	A, B
Merlin Gate (Newent) Management Company Limited	50	A, B
Mill Brook (Westbury) Management Company Limited	59	A, B
Millbrook Park (Phase 9) Energy Centre Management Company Limited	1	A, B
Millbrook Park (Phase 9) Residents’ Management Company Limited	1	A, B
Mill Springs (Whitchurch) Management Company Limited	34	A, B
Minerva (Apartments) Management Company Limited	40	A, B

	Registered
Subsidiary	office	Notes
Monarchs Keep (Bursledon) Management Company Limited	46	A, B
Montague Park No2 (Buckhurst Farm) Management Company Limited	12	A, B
Monument House Management Company Limited	54	A, B
Moorland Gate (Bishops Lydeard) Management Company Limited	50	A, B
Mortimer Park (Driffield) Management Company Limited	9	A, B
Mortimer Park Phase 2 and Porters Way Residential Management
Company Limited	9	A, B
Mortimer Place (Hatfield Peverel)ResidentsManagement Company Limited	14	A, B
Morton Meadows (Thornbury) Management Company Limited	50	A, B
Nant Y Castell (Caldicot) Management Company Limited	33	A, B
Needham’s Grange Residents Management Company Limited	20	A, B
Needingworth Park Residents Management Company Limited	56	A, B
Nerrols Grange (Taunton) Management Company Limited	13	A, B
Netherwood (Darfield) Management Company Limited	54	A, B
Newbery Corner Management Company Ltd	13	A, B
New Heritage (Bordon) Management Company Limited	46	A, B
New Mill Quarter (BL) Residents Management Company Limited	8	A, B
New Mill Quarter Estate Resident Management Company Limited	8	A, B
Nightingale Woods (Wendover) Residential Management Company Limited	42	A, B
Niveus Walk Management Company Limited	7	A, B
North Abington Management Company Limited	41	A, B
Northfield Park (Patchway) Management Company Limited	32	A, B
Northstowe Residents Management Company Limited	54	A, B
Northwalls Grange (Taunton) Management Company Limited	30	A, B
Norton Farm Management Company Limited	20	A, B
Notton Wood View (Royston) Management Company Limited	54	A, B
Oak Hill Mews Management Company Limited	20	A, B
Oakfield Village Estate Management Company Limited	16	A, B
Oakhill Gardens (Swanmore) Management Company Limited	18	A, B
Oaklands (Pontefract) Management Company Limited	9	A, B
Oatley Park Management Company Limited	62	A, B
Okement Park (Okehampton) Management Company Limited	54	A, B
Olive Park Residents Management Company Limited	17	A, B
Orchard Gate (Kingston Bagpuize) Management Company Limited	12	A, B
Orchard Green Estate Management Company Limited	16	A, B
Orchard Meadows (Appleton) Management Company Limited	45	A, B
Oughtibridge Valley (Oughtibridge) Management Company Limited	9	A, B
Overstone Gate Residents Management Company Limited	56	A, B
Parc Fferm Wen (St Athen) Management Company Limited	33	A, B

32. Group subsidiary undertakings continued

Audit exemption continued

Strategic Report Governance Financial Statements

205Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

	Registered
Subsidiary	office	Notes
Parish Brook Residents Management Company Limited	32	A, B
Park Farm (Thornbury) Community Interest Company	30	A, B
Patch Meadows (Somerton) Management Company Limited	30	A, B
Pates House Management Company Limited	39	A, B
Pavilion Square (Phase 2) Management Company Limited	6	A, B
Pavilion Square (Pocklington) Management Company Limited	6	A, B
Peasedown Meadows Management Company Limited	30	A, B
Pebble Walk (Hayling Island) Management Company Limited	54	A, B
Pembridge Park (Phase 2) Management Company Limited	26	A, B
Pembroke Park (Cirencester) Management Company Limited	30	A, B
Pen Bethan (Falmouth) Management Company Limited	18	A, B
Penndrumm (Looe) Management Company Limited	40	A, B
Penning Ridge (Penistone) Management Company Limited	9	A, B
Pentref Llewelyn (Penllergaer) Management Company Limited	10	A, B
Perry Court (Faversham) Management Company Limited	54	A, B
Phase 3 Clark Drive LGV Management Company Limited	32	A, B
Phase 3 Clark Drive 2 LGV Management Company Limited	32	A, B
Phase 6 Apartments LGV Management Company Limited	32	A, B
Phoenix And Scorseby Park Management Company Limited	6	A, B
Phoenix Quarter — Apt — Management Company Limited	49	A, B
Phoenix Quarter Estate Management Company Limited	49	A, B
Pinewood Park (Formby) Management Company Limited	57	A, B
Pinn Brook Park (Monkerton) Management Company Limited	40	A, B
PL2 Plymouth (2016) Limited	40	A, B
Poppy Fields (Cottingham) Management Company Limited	6	A, B
Portman Square West Village Reading Management Company Limited	12	A, B
Preston Grange Residents Management Company Limited	3	A, B
Priestley House Management Company Limited	54	A, B
Priory Fields (Pontefract) Management Company Limited	10	A, B
Prospect Rise (Whitby) Management Company Limited	6	A, B
Quarter Jack Park Management Company Limited	55	A, B
Quarter Jack Park (Wimborne) Management Company Limited	46	A, B
Raleigh Holt (Barnstaple) Management Company Limited	41	A, B
Ramsey Park Residents Management Company Limited	56	A, B
Ravenhill Park Management Company Limited	20	A, B
Redhayes Management Company Limited	40	A, B
Redwood Heights (Plymouth) Management Company Limited	40	A, B
Residents Management Company (Beaconside) Limited	57	A, B
Richmond Park (Whitfield) Residents Management Company Limited	8	A, B

	Registered
Subsidiary	office	Notes
Ridgeway Views Energy Centre Management Company	54	A, B
Ridgeway Views Residents Management Company	54	A, B
River Meadow (Stanford in the Vale) Management Company Limited	12	A, B
River Whitewater Management Company (Hook) Limited	10	A, B
Riverdown Park (Salisbury) Management Company Limited	54	A, B
Riverside Grange (Farmbridge) Management Company Limited	9	A, B
Romans Edge Godmanchester Management Company Limited	54	A, B
Romans’ Quarter (Bingham) Residential Management Company Limited	16	A, B
Rose and Lillies Residents Management Company Limited	23	A, B
Rosewood Park Bexhill Residents Management Company Limited	8	A, B
RV North Petherton Residents Management Company Limited	32	A, B
Ryebank Gate (Yapton) Management Company Limited	28	A, B
Salters Brook (Cudworth) Management Company Limited	54	A, B
Sandridge Place (Melksham) Management Company Limited	10	A, B
Saunderson Gardens Management Co Limited	10	A, B
Sawbridge Park (Sawbridgeworth) Management Company Limited	16	A, B
Saxon Corner (Emsworth) Management Company Limited	46	A, B
Saxon Dean (Silsden) Management Company Limited	10	A, B
Saxon Fields (Cullompton) Management Company Limited	40	A, B
Saxon Fields (Thanington) Management Company Limited	11	A, B
Saxon Gate (Leonard Stanley) Management Company Limited	10	A, B
Saxon Gate (Stamford Bridge) Management Company Limited	6	A, B
Saxon Mills (Hassocks) Management Company Limited	53	A, B
Scotgate Ridge (Honley) Management Company Limited	54	A, B
Shaftmoor Land Residents Management Company Limited	20	A, B
Silkwood Gate (Wakefield) Management Company Limited	9	A, B
Spinney Fields Residents Management Company Limited	5	A, B
Spitfire Green (Manston) Residents Management Company Limited	49	A, B
Spring Valley View (Clayton) Management Company Limited	10	A, B
Springfield Place Resident Management Company Limited	4	A, B
St Andrews View (Morley) Management Co. Limited	54	A, B
St James Gardens (Wick) Management Company Limited	29	A, B
St James Management Company Limited	9	A, B
St Johns View Residents Management Company Limited	57	A, B
St Rumbolds Fields Management Company Limited	16	A, B
St. Andrews Place (Morley) Management Co. Limited	54	A, B
St. John’s Walk (Hoylandswaine) Management Company Limited	54	A, B
St. Mary’s Park (Hartley Wintney) Management Company Limited	25	A, B
St. Oswald’s View (Methley) Management Company Limited	9	A, B

32. Group subsidiary undertakings continued

Audit exemption continued

Notes to the Financial Statements continued

Year ended 30 June 2024

206 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

	Registered
Subsidiary	office	Notes
Stallard House Management Company Limited	39	A, B
Stewarts Reach and Wolds View Residential Management Company Limited	63	A, B
Stotfold Park Management Company Limited	10	A, B
Summersfield (Papworth) Management Company Limited	54	A, B
Sundial Place Residents Management Company Limited	57	A, B
Swallows Field (Hemel Hempstead) Management Company Ltd	22	A, B
Swan Mill (Newbury) Management Company Limited	12	A, B
Swinbrook Park (Carterton) Management Company Limited	12	A, B
Sydney Place (Crewe) Management Company Limited	57	A, B
Talbot and Clockmakers Management Company Limited	23	A, B
Tarka Ridge (Yelland) Management Company Limited	41	A, B
Templar’s Chase (Wetherby) Management Company Limited	9	A, B
The Acorns and Hunters Wood Management Company Limited	54	A, B
The Belt Open Space Management Co Limited	63	A, B
The Bridleways (Eccleshill) Management Company Limited	54	A, B
The Causeway Park (Petersfield) Management Company Limited	34	A, B
The Chase (Newbury) Management Company Limited	12	A, B
The Chocolate Works Management Company Limited	37	A, B
The Courtyard (Darwin Green) Management Company Limited	16	A, B
The Furlongs (Westergate) Management Company Limited	46	A, B
The Glassworks (Catcliffe) Management Company Limited	10	A, B
The Grange (Lightcliffe) Management Company Limited	10	A, B
The Meads (Frampton Cotterell) Management Company Limited	13	A, B
The Mounts Residents Management Company Limited	5	A, B
The Old Meadow Management Company Limited	41	A, B
The Orchards (Hildersley) Management Company Limited	10	A, B
The Paddocks (Skelmanthorpe) Management Company Limited	10	A, B
The Paddocks (Southmoor) Management Company Limited	12	A, B
The Pastures (Knaresborough) Management Company Limited	6	A, B
The Pavilions Management Company (Southampton) Limited	46	A, B
The Pavilions Resident Management Company Limited	23	A, B
The Poppies (Maidstone) Residents Management Company Limited	11	A, B
The Spires (Chesterfield) Management Company Limited	26	A, B
The Vineyards Management Company Limited	30	A, B
The Woodlands (Sturry) Management Company Limited	11	A, B
Thornbury Gardens Dinnington Management Company Limited	10	A, B
Townsend Landing (Henstridge) Management Company Limited	54	A, B
Tranby Fields Management Company Limited	10	A, B
Treledan (Saltash) Management Company Limited	54	A, B

	Registered
Subsidiary	office	Notes
Trumpington Meadows Residents Management Company Limited	10	A, B
Trumpington (Phase 8—11) Management Company Limited	10	A, B
Trumpington Vista Management Company Limited	16	A, B
Union Park (Falmouth) Management Company Limited	40	A, B
Upton Gardens Energy Centre Management Company	1	A, B
Upton Gardens Residents Management Company	54	A, B
Victoria Heights (Alphington) Management Company Limited	40	A, B
Wadsworth Gardens (Cleckheaton) Management Company Limited	54	A, B
Waite House Management Company Limited	1	A, B
Waldmers Wood Management Company Limited	57	A, B
Warboys Management Company Limited	38	A, B
Waterside (The Quays Barry) Management Company Number 1 Limited	29	A, B
Waterside (The Quays Barry) Management Company Number 2 Limited	29	A, B
Waterside (The Quays Barry) Management Company Number 3 Limited	29	A, B
Waterside Trentham Residents Management Company Limited	36	A, B
Watkin Road Energy Centre Management Company	1	A, B
Watkin Road Residents Management Company	1	A, B
Wayland Fields Residents Management Company Limited	14	A, B
WBD (Kingsway Management) Limited	1	A, B
Weavers Chase (Golcar) Management Company Limited	9	A, B
Webheath (Redditch) Management Company Limited	54	A, B
Wedgwood Residents Management Company Limited	5	A, B
Wendel View Residents Management Company Limited	56	A, B
Westbridge Park (Auckley) Management Company Limited	26	A, B
Westminster View (Clayton) Management Company Limited	10	A, B
Weston Meadows, Calne Management Company Limited	50	A, B
Whalley Road (Barrow) Management Company Limited	8	A, B
White Lias House Management Company Limited	23	A, B
White Post Farm Midsomer Norton Management Company Limited	32	A, B
Whittingham Residents Management Company Limited	36	A, B
Whittlesey Lakeside (Cambridge) Management Company Limited	21	A, B
Wichelstowe Estate Management CIC	1	A, B
Wigmore Park Management Company Limited	10	A, B
Willow Grove (Stopsley) Management Company Limited	8	A, B
Willow Grove (Wixams) Management Company Limited	54	A, B
Willow Lane (Beverley) Management Company Limited	6	A, B
Willow Lane (Beverley) Phase 2 Management Company Limited	19	A, B
Willowmead (Wiveliscombe) Management Company Limited	50	A, B
Winnington View Management Company Limited	26	A, B

32. Group subsidiary undertakings continued

Audit exemption continued

Strategic Report Governance Financial Statements

207Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

	Registered
Subsidiary	office	Notes
Winnington Village Community Management Company Limited	26	A, B
Winnycroft Residents Management Company Limited	32	A, B
Withies Bridge Management Company Ltd	30	A, B
Woodhall Grange Management Company Limited	6	A, B
Woodland Heath Residential Management Company Limited	14	A, B
Wychwood Park (Haywards Heath) Management	53	A, B

Other subsidiary entities:

	Registered		Class of	% of shares
Subsidiary	office	Notes	share held	owned
Base East Central Rochdale LLP	1	A	N/A	N/A
Base Hattersley LLP	1	A	N/A	N/A
Base Regeneration LLP	1	A	N/A	N/A
Base Werneth Oldham LLP	1	A	N/A	N/A
BLLQ LLP	1	A	N/A	N/A
BLLQ2 Limited	1	A	Ordinary	100%
SQ Holdings Limited	53	A	Ordinary	90%
Vizion (MK) Properties LLP	1	A	N/A	N/A
Ash Tree Court Management Co. Ltd	1	A, D	Ordinary	0%
Aspects Management Company Limited	27	A	Ordinary	50%
Buckshaw Village Management Company Limited	8	A	Ordinary	50%
Foxcote Mead Management Company Limited	1	A	Ordinary	100%
GWQ Management Limited	24	A, C	Ordinary	0%
Hazelmere Management Company Limited	1	A, D	Ordinary	0%
Interlink Park Management Company Limited	1	A, D	Ordinary	0%
Meridian Business Park Extension Management
Company Limited	1	A, C	Ordinary	2%
Newbury Racecourse Management Limited	12	A, D	Ordinary	0%
Nottingham Business Park Management Company
Limited	1	A, C	Ordinary	2%
Nottingham Business Park (Orchard Place)
Management Company Limited	1	A, C	Ordinary	2%
Optimus Point Management Company Limited	1	A, C	Ordinary	0%
Pye Green Management Company Limited	20	A, C	Ordinary	17%
Riverside Exchange Management Company	1	A, C	Ordinary/	22%
Limited			preference
Runshaw Management Company Limited	8	A	Ordinary	100%
Stoneyfield Management Limited	1	A	Ordinary	100%
WBD (Riverside Exchange Sheffield B) Limited	1	A, C	Ordinary	100%
WBD Riverside Sheffield Building K Limited	1	A, C	Ordinary	100%
West Village Reading Management Limited	12	A, D	Ordinary	0%
Willow Farm Management Company Limited	1	A, C	Ordinary	3%

32. Group subsidiary undertakings continued

Audit exemption continued

Notes to the Financial Statements continued

Year ended 30 June 2024

208 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

32. Group subsidiary undertakings continued

Registered office

1. Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire LE67 1UF

2. Buchanan Gate, Cumbernauld Road, Stepps, Glasgow G33 6FB

3. 111 West Street, Faversham, Kent ME13 7JB

4. Barratt East London, 3rd Floor Press Centre, Here East, 13 East Bay Lane, Stratford, London E15 2GW

5. One Eleven, Edmund Street, Birmingham, West Midlands B3 2HJ

6. Unit 11, Omega Business Park, Omega Business Village, Thurston Road, Northallerton, North Yorkshire

DL6 2NJ

7. Discovery House, Crossley Road, Stockport, Greater Manchester, England SK4 5BH

8. RMG House, Essex Road, Hoddesdon, Hertfordshire EN11 0DR

9. Gateway House, 10 Coopers Way, Southend-on-Sea, Essex SS2 5TE

10. Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire HP2 7DN

11. Weald House, 88 Main Road, Sundridge, Kent, United Kingdom TN14 6ER

12. Cygnet House, Cygnet Way, Hungerford, Berkshire RG17 0YL

13. Units 1, 2 & 3 Beech Court, Wokingham Road, Hurst, Reading RG10 0RU

14. Barratt House, 7 Springfield Lyons Approach, Chelmsford, Essex CM2 5EY

15. The Maltings, Hyde Hall Farm, Sandon, Hertfordshire SG9 0RU

16. 2 Hills Road, Cambridge, Cambridgeshire CB2 1JP

17. Unit A5 Optimum Business Park, Optimum Road, Swadlincote, Derbyshire, England, DE11 0WT

18. Fisher House, 84 Fisherton Street, Salisbury SP2 7QY

19. 6 Alpha Court, Monks Cross Drive, York, North Yorkshire, YO32 9WN

20. 60 Whitehall Road, Halesowen B63 3JS

21. Unit 1 Forder Way, Cygnet Park, Hampton, Peterborough, United Kingdom, PE7 8GX

22. Wellstones House, Wellstones, Watford, Hertfordshire WD17 2AF

23. Remus 2, 2 Cranbook Way, Solihull Business Park, Solihull, West Midlands B90 4GT

24. Wallis House, Great West Road, Brentford, Middlesex TW8 9BS

25. Firstport Property Services Limited, Marlborough House, Wigmore Place, Wigmore Lane, Luton LU2 9EX

26. Chiltern House, 72–74 King Edward Street, Macclesfield, Cheshire SK10 1AT

27. 100 Avebury Boulevard, Milton Keynes, England MK9 1FH

28. 41a Beach Road, Littlehampton, West Sussex, England DN17 5JA

29. Oak House, Village Way, Cardiff CF15 7NE

30. Unit 2 Beech Court, Wokingham Road, Hurst, Twyford, Berkshire RG10 0RQ

31. Vanguard House, Yeoford Way, Marsh Barton, Exeter EX2 8HL

32. Barratt House, 710 Waterside Drive, Aztec West, Almondsbury, Bristol BS32 4UD

33. Whittington Hall, Whittington Road, Worcester WR5 2ZX

34. Building 4, Dares Farm Business Park, Farnham Road, Ewshot, Farnham, Surrey GU10 5BB

35.

Ground Floor, Cromwell House, 15 Andover Road, Winchester, Hampshire SO23 7BT

36. 4 Brindley Road, City Park, Manchester M16 9HQ

37. Watson, Glendevon House, 4 Hawthorn Park, Coal Road, Leeds, West Yorkshire LS14 1PQ

38. Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom NG1 6HH

39. Ashford House, Grenadier Road, Exeter, Devon EX1 3LH

40. Woodwater House, Pynes Hill, Exeter, Devon EX2 5WR

41. Unit 7, Astra Centre, Edinburgh Way, Harlow, Essex, England CM20 2BN

42. 5th Floor Halo, Counterslip, Bristol, United Kingdom BS1 6AJ

43. Barratt House, Sandy Way, Grange Park, Northampton NN4 5EJ

44. Unit 7, Hockliffe Business Park, Watling Street, Hockliffe, Leighton Buzzard, Bedfordshire LU7 9NB

45. 377–379 Hoylake Road, Moreton, Wirral, Merseyside CH46 0RW

46. 128 Pyle Street, Granary Court, Newport, Isle of Wight PO30 1JW

47. Woodland Place, Wickford Business Park, Hurricane Way, Wickford SS11 8YB

48. 154–155 Great Charles Street, Queensway, Birmingham B3 3LP

49. Thamesbourne Lodge, Station Road, Bourne End, Buckinghamshire SL8 5QH

50. 1 West Point Court, Great Park Road, Bradley Stoke, Bristol BS32 4PY

51. Blairton House, Old Aberdeen Road, Balmedie, Aberdeen, Scotland AB23 8SH

52. C/O East Block Group, The Colchester Centre, Hawkins Road, Colchester, Essex CO2 8JX

53. Compton House, The Guildway, Old Portsmouth Road, Guildford GU3 1LR

54. Queensway House, 11 Queensway, New Milton, Hampshire BH25 5NR

55. Tollbar House Tollbar Way, Hedge End, Southampton, United Kingdom SO30 2UH

56. 1a Fortune Close, Riverside Business Park, Northampton NN3 9HT

57. Unit 7, Portal Business Park, Eaton Lane, Tarporley, Cheshire CW6 9DL

58. Aurora House, Part 3rd Floor 71-75 Uxbridge Road, Ealing, London, England W5 5SL

59. Wellington House, Great Park Road, Bradley Stoke, Bristol BS32 4PY

60. 72–74 King Edward Street, Macclesfield, Cheshire SK10 1AT

61. Second Floor Lakeside 300, Broadland Business Park, Norwich, Norfolk, England NR7 0WG

62. Unit 1, Great Park Road, Bradley Stoke, Bristol, United Kingdom BS32 4PY

63. Sunnybank Farm, St. Johns Chapel, Bishop Auckland, England DL13 1QZ

64. Adamson House, Wilmslow Road, Manchester, England M20 2YY

Notes

A Owned through another Group company.

B Entity is limited by guarantee and is a temporary member of the Group. Assets are not held for the benefit of the Group and the entity has no

profit or loss in the year.

C The Group is a minority shareholder but has voting control.

D The Group does not own any shares but has control via directors who are employees of the Group.

Strategic Report Governance Financial Statements

209Barratt Developments PLC Annual Report and Accounts 2024

Notes to the Financial Statements continued

Year ended 30 June 2024

The Group uses a number of APMs that are not defined within IFRS. The Directors use

these APMs, along with IFRS measures, to assess the operational performance of the Group

as detailed in the key performance indicators section of the Strategic Report on pages 12

to 15. These APMs may not be directly comparable with similarly titled measures reported

by other companies and they are not intended to be a substitute for, or superior to, IFRS

measures. Definitions of adjusted items are presented in note 4 and adjusted performance

measures are reconciled to IFRS measures on page 159. Definitions and reconciliations of

the other financial APMs used to IFRS measures are included below:

Gross margin is defined as gross profit divided by revenue:

2024 2023

Revenue per Consolidated Income Statement (£m) 4,168.2 5,321.4

Gross profit per Consolidated Income Statement (£m) 509.5 974.9

Gross margin 12.2% 18.3%

Adjusted gross margin is defined as adjusted gross profit divided by revenue:

2024 2023

Revenue per Consolidated Income Statement (£m) 4,168.2 5,321.4

Adjusted gross profit per Consolidated Income Statement (£m) 689.0 1,130.4

Adjusted gross margin 16.5% 21.2%

Operating margin is defined as profit from operations divided by revenue:

2024 2023

Revenue per Consolidated Income Statement (£m) 4,168.2 5,321.4

Profit from operations per Consolidated Income Statement (£m) 174.7 707.4

Operating margin 4.2% 13.3%

Adjusted operating margin is defined as adjusted profit from operations divided by revenue:

2024 2023

Revenue per Consolidated Income Statement (£m) 4,168.2 5,321.4

Adjusted profit from operations per Consolidated Income

Statement (£m) 376.6 862.9

Adjusted operating margin 9.0% 16.2%

ROCE is calculated as earnings before amortisation, interest, tax and operating adjusting

items for the year, divided by average net assets adjusted for goodwill and intangibles, tax,

net cash, derivative financial instruments and provisions in relation to legacy properties.

2024

£m

2023

£m

Profit from operations 1 74.7 707.4

Amortisation of intangible assets 10.4 10.5

Net cost associated with legacy properties 179.5 155.5

Costs incurred in respect of the all-share offer for the

sharecapitalofRedrowplcpernote4 22.4 —

Share of post-tax profit from JVs and associates 2.3 8.8

Adjusted cost related to JV legacy properties 12.6 23.7

Earnings before amortisation, interest, tax and adjusted items 401.9 905.9

30 June

2024

£m

31 December

2023

£m

30 June

2023

£m

31 December

2022

£m

30 June

2022

£m

Group net assets per

Consolidated Balance Sheet 5,439.1 5,439.6 5,596.4 5,656.6 5,631.3

Less:

Other intangible assets per

Consolidated Balance Sheet (184.5) (189.7) (194.9) (200.1) (205.4)

Goodwill per Consolidated

Balance Sheet (852.9) (852.9) (852.9) (852.9) (852.9)

Current tax assets (31.8) (27.3) (31.1) (0.1) (9.9)

Deferred tax liabilities 45.0 50.4 53.5 44.0 45.1

Cash and cash equivalents (1,065.3) (949.9) (1,269.1) (1,166.5) (1,352.7)

Loans and borrowings 200.0 200.3 203.4 202.0 217.3

Provisions in relation to

legacyproperties 730.3 646.0 612.3 485.3 479.5

Prepaid fees (3.2) (3.8) (3.7) (4.6) (3.2)

Capital employed 4,276.7 4,312.7 4,113.9 4,163.7 3,949.1

Three point average capital

employed 4,234.4 4,075.6

2024 2023

Earnings before amortisation, interest, tax and adjusted items

(from table above) (£m) 401.9 905.9

Three point average capital employed (from table above) (£m) 4,234.4 4,075.6

ROCE 9.5% 22.2%

Definitions of alternative performance measures and reconciliation to IFRS (unaudited)

210 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Underlying ROCE is calculated as ROCE (above) with net assets also adjusted for

land payables:

30 June

2024

£m

31 December

2023

£m

30 June

2023

£m

31 December

2022

£m

30 June

2022

£m

Capital employed (from ROCE

tableabove) 4,276.7 4,312.7 4,113.9 4,163.7 3,949.1

Adjust for land payables 472.8 367.2 506.7 622.3 733.6

Capital employed adjusted

forlandpayables 4,749.5 4,679.9 4,620.6 4,786.0 4,682.7

Three point average capital employed

adjusted for land payables 4,683.3 4,696.4

2024 2023

Earnings before amortisation, interest, tax and adjusted items (from

table above) (£m) 401.9 905.9

Three point average capital employed adjusted for land payables

(from table above) (£m) 4,683.3 4,696.4

Underlying ROCE 8.6% 19.3%

For the purpose of determining the Executive Directors’ annual bonus (page 127), capital

employed is adjusted for land, land payables, trade payables and inventories currently

occupied under the refugee support scheme:

30 June

2024

£m

31 December

2023

£m

30 June

2023

£m

31 December

2022

£m

30 June

2022

£m

Capital employed (from ROCE

tableabove) 4,276.7 4,312.7 4,113.9 4,163.7 3,949.1

Adjust for land (3,233.6) (2,979.1) (3,139.9) (3,253.7) (3,339.9)

Adjust for land payables 472.8 367.2 506.7 622.3 733.6

Adjust for trade payables 252.7 186.9 310.3 220.4 324.0

Adjust for inventories currently

occupied under the refugee

support scheme (9.0) (11.3) (11.0) — —

Capital employed adjusted for

land, land payables, trade payables

and inventories currently occupied

under the refugee support scheme 1,759.6 1,876.4 1,780.0 1,752.7 1,666.8

Three point average capital

employed adjusted for land, land

payables, trade payables and

inventories currently occupied

under the refugee support scheme 1,805.3 1,733.2

Adjusted earnings for adjusted basic earnings per share and adjusted diluted earnings per

share are calculated by excluding adjusted items and any associated net tax amounts from

profit attributable to ordinary shareholders of the Company:

2024

£m

2023

£m

Profit attributable to ordinary shareholders of the Company 114.1 530.3

Net cost associated with legacy properties per note 4 179.5 155.5

Costs incurred in respect of the all-share offer for the

share capital of Redrow plc per note 4 22.4 —

Cost associated with JV legacy properties per note 4 12.6 23.7

Tax impact of adjusted items (54.4) (39.3)

Adjusted earnings 274.2 670.2

Net cash is defined in note 17.

Total indebtedness is defined as net (cash)/debt and land payables:

2024

£m

2023

£m

Net cash (868.5) (1,069.4)

Land payables 472.8 506.7

Total indebtedness (395.7) (562.7)

TSR is a measure of the performance of the Group’s share price over a period of three

financial years. It combines share price appreciation and dividends paid to show the total

return to the shareholders expressed as a percentage.

Definitions of alternative performance measures and reconciliation to IFRS (unaudited) continued

Strategic Report Governance Financial Statements

211Barratt Developments PLC Annual Report and Accounts 2024

Financial five year record Note 2020 2021 2022 2023 2024

Private wholly owned home completions 9,568 13,134 13,327 12,456 10,666

Affordable wholly owned home completions 2,466 3,383 3,835 3,922 2,802

Wholly owned completions (homes) 12,034 16,517 17,162 16,378 13,468

Joint venture completions (homes) 570 726 746 828 536

Total home completions including JVs 12,604 17,243 17,908 17,206 14,004

Wholly owned completions average

sellingprice(£000) 280.3 288.8 300.2 319.6 306.8

Revenue (£m) 3,419.2 4,811.7 5,267.9 5,321.4 4,168.2

Gross profit (£m) 614.3 1,010.0 899.9 974.9 509.5

Gross profit margin (%) 18.0% 21.0% 17.1% 18.3% 12.2%

Adjusted gross profit (£m) 631.4 1,114.7 1,308.1 1,130.4 689.0

Adjusted gross profit margin (%) 18.5% 23.2% 24.8% 21.2% 16.5%

Profit from operations (£m) 493.4 811.1 646.6 707.4 174.7

Operating profit margin (%) 14.4% 16.9% 12.3% 13.3% 4.2%

Adjusted profit from operations (£m) 507.3 919.0 1,054.8 862.9 376.6

Adjusted operating margin (%) 14.8% 19.1% 20.0% 16.2% 9.0%

Net finance costs (£m) (29.9) (26.6) (27.6) (11.1) (6.5)

Share of post-tax income from joint ventures 28.3 27.7 23.3 8.8 2.3

Profit before tax 491.8 812.2 642.3 705.1 170.5

Adjusted profit before tax 505.7 919.7 1,054.8 884.3 385.0

Five year record (unaudited)

Financial five year record Note 2020 2021 2022 2023 2024

Basic earnings per share (pence) 39.4 64.9 50.6 53.2 11.8

Adjusted earnings per share (pence) 40.5 73.5 83.0 67.3 28.3

Dividend (interim paid and

finalproposed)(pence) — 29.4 36.9 33.7 16.2

Special cash payment proposed

pershare(pence) — — — — —

Total shareholder return (TSR) over

threefinancialyears(%) 6.1% 59.8% (4.9%) 10.6% (20.9)%

Tangible shareholders’ funds (£m) 3,931.9 4,545.1 4573.0 4,548.6 4,401.7

Tangible net assets per share at year

end(pence) 386.1 446.3 4 47.2 466.7 451.6

Total shareholders’ funds (£m) 4,840.3 5,452.1 5,631.3 5,596.4 5,439.1

Total net assets per share at year end

(pence) 475.3 535.4 550.7 574.2 558.1

Year-end net (debt)/cash (£m) 308.2 1,317.4 1,138.6 1,069.4 868.5

Year-end total land payables (£m) 791.9 658.3 733.6 506.7 472.8

Year-end total net (indebtedness)/surplus

(£m) (483.7) 659.1 405.0 562.7 395.7

Average net cash across the financial

year(£m) 348.3 821.0 957.4 759.1 732.3

Three point average capital employed (£m) 3,457.6 3,414.5 3,625.8 4,075.6 4,234.4

Return on capital employed (ROCE) (%) 15.5% 27.8% 30.0% 22.2% 9.5%

Total land investment (£m) 15 3,112.3 2,946.3 3,339.9 3,139.9 3,233.6

Proportion of total land investment funded

by land creditors (%) 25.4% 22.3% 22.0% 16.1% 14.6%

Weighted average shares in issue during

the year (m) 1,018.2 1,018.3 1,021.9 1,000.1 974.6

Weighted average shares in issue during

the year less EBT (m) 1,013.9 1,016.4 1,018.7 996.3 968.8

Number of ordinary shares in issue at

yearend(m) 22 1,018.3 1,018.3 1,022.6 974.6 974.6

212 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Non-financial five year record 2020 2021 2022 2023 2024

SHE audit compliance 96% 97% 97% 96% 97%*

Injury Incidence Rate 256 416 262 289 302*

Average training days per employee (days/employee) 4.1 3.9 3.3 4.1 4.1

Employee turnover (%) 10% 12% 17% 15% 13%

Employee engagement index (%) 84.2% N/A 79.4% 84.4% 74.9%

Number of employees at 30 June 6,655 6,329 6,837 6,728 6,270

Proportion female (%) 31% 31% 32% 31% 32%

Graduates, apprentices and trainees on programmes 492 426 391 483 353

Number of senior managers 286 283 328 331 332

Proportion female (%) 14% 16% 17% 18% 20%

Number of PLC Directors 8 9 9 8 9

Proportion female (%) 38% 44% 33% 37% 33%

Legally completed build area (100m

) 12,197 16,439 16,402 15,609 13,097

Carbon intensity (tonnes per 100m

legally

completed build area) 1.80 1.78 1.53 1.60 1.26*

Waste intensity (tonnes per 100m

legally

completed build area) 7.70 5.89 4.97 4.31 3.64*

Waste intensity (tonnes per 100m

house build

equivalent area) 6.93 6.29 4.83 4.34 3.83*

Diversion of construction waste from landfill (%) 96% 95% 96% 96% 97%*

Electricity on renewable tariffs (%) 68.0% 72.0% 76.0% 87.0% 94.0%

Average active sales outlets (inc. JVs) 366 343 332 367 346

Customer service (HBF Customer Satisfaction Survey)

5 star 5 star 5 star 5 star 5 star

NHBC Pride in the Job Awards (number awarded) 92 93 98 96 89

Owned and unconditional land bank (plots) 68,393 66,601 67,687 59,248 57,632

Conditional land bank (plots) 11,931 11,041 13,239 11,142 8,607

Owned and controlled land bank (plots) 80,324 7 7,642 80,926 70,390 66,239

JV owned and controlled land bank (plots) 5,400 4,661 4,548 4,356 4,631

Total owned and controlled land bank including

JVs (plots) 85,724 82,303 85,474 74,746 70,870

Land bank years owned (years) 5.7 4.0 3.9 3.6 4.3

Land bank years controlled (years) 1.0 0.7 0.8 0.7 0.6

Non-financial five year record 2020 2021 2022 2023 2024

Land bank total years (owned and controlled) (years)

6.7 4.7 4.7 4.3 4.9

Average selling price of homes in land bank at

year end (£000) 276 289 322 331 328

Land approvals (plots) 9,441 18,067 19,089 (812) 12,439

Land approvals (£m) 368.1 876.8 1,396.1 (14.9) 646.9

Planning consents secured in the year (plots) 14,768 14,280 14,988 12,969 9,026

Strategic land plots converted to owned and

controlled land bank (plots) 3,137 3,507 1,663 777 3,723

Strategic land bank (acres) 13,271 13,754 15,537 16,431 16,865

Expenditure on physical improvement works

benefiting local communities (£m) 477 572 699 726 536

School places provided (number) 2,211 3,591 5,346 3,327 4,632

Home completions from strategically sourced

land (homes) 2,929 4,172 4,530 3,938 3,290

Proportion of home completions from

strategically sourced land (%) 24.3% 25.3% 26.4% 24.0% 24.4%

Home completions using MMC (homes) 2,652 4,393 4,846 5,578 4,668

Proportion of home completions using MMC (%) 21% 25% 27% 32% 33%

Proportion of home completions using 2016

andlaterhousetyperange(%) 60.2% 65.3% 77.0% 71.0% 84.0%

Proportion of home completions EPC rated “B”

orabove(%) 99% 99% 99% 99% 99%

Average DER for completed properties (kgCO

/yr) 16.59 16.21 15.89 16.02 15.78*

Average SAP rating of home completions 84 85 85 85 85

Note: Additional granularity and more detailed sustainability metrics are available on our website at:

www.barrattdevelopments.co.uk/sustainability/performance-data/data.

Deloitte LLP (‘Deloitte’) have provided independent third-party limited assurance in

accordance with the International Standard for Assurance Engagements 3000 (ISAE 3000)

and Assurance Engagements on Greenhouse Gas Statements (ISAE 3410) issued by the

International Auditing and Assurance Standards Board (IAASB) over selected metrics in the

above table identified with an *. For Deloitte’s full unqualified assurance opinion, which

includes details of the selected metrics assured, our full Carbon Reporting Methodology

Statement, our ESG Basis of Reporting and a full breakdown of scope 3 GHG emissions, see

our website www.barrattdevelopments.co.uk/building-sustainably/our-publications-and-

policies/publications.

Five year record (unaudited) continued

Strategic Report Governance Financial Statements

213Barratt Developments PLC Annual Report and Accounts 2024

Act The Companies Act 2006

Active outlet A site with at least one plot for sale

AGM Annual General Meeting

APM Alternative performance measure

APPG All-Party Parliamentary Group

Articles The Company’s Articles of Association

ASP Average selling price

Barratt Barratt Developments PLC and its subsidiary undertakings

BEIS Department for Business, Energy and Industrial Strategy

BNG Biodiversity Net Gain

BREEAM

Building Research Establishment Environmental Assessment Methodology

BRIs Builder Responsible Items

Building for Life12 This is the industry standard, endorsed by the government, for well-

designed homes and neighbourhoods that local communities, local

authorities and developers are invited to use to stimulate conversations

about creating good places to live

Building Regulations The requirements relating to the erection and extension of buildings

under UK Law

Capital employed Average net assets adjusted for goodwill and intangibles, tax, cash, loans

and borrowings, prepaid fees, provisions in respect of legacy properties and

derivative financial instruments

CDP Charity that runs the global system for disclosure of environmental impacts

for investors, companies, cities, states and regions

CEO Chief Executive

CFO Chief Financial Officer

CITB Construction Industry Training Board

CMA Competition and Markets Authority

Code UK Corporate Governance Code issued in July 2018

(copy available from www.frc.org.uk)

Glossary

COINS Construction Industry Solutions (software used by the Group)

Connected Persons As defined in the EU Market Abuse Regulation

Contribution margin Housebuild revenue less land and directly attributable build and site costs,

divided by housebuild revenue

COO Chief Operating Officer

COVID-19 Coronavirus Disease 2019

DBP Deferred Bonus Plan

DTRs Disclosure Guidance and Transparency Rules

EBT Barratt Developments Employee Benefit Trust

ELTIP Employee Long Term Incentive Plan

EMC Ethnic Minority Communities

EPC Energy Performance Certificate

EPS Earnings per share

ESG Environmental, Social and Governance

EU European Union

EWS External Wall System

FCA Financial Conduct Authority

FHS Future Homes Standard

Foundation The Barratt Developments PLC Charitable Foundation

FRAEW Fire Risk Appraisal of External Wall construction

FRC Financial Reporting Council

FSC Forest Stewardship Council

FTSE Financial Times Stock Exchange

Future Homes

Standard

Changes to Building Regulations under the Future Homes and Buildings

Standard to reduce carbon emissions from the use of new homes

FY Financial year ended 30 June

214 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

GDP Gross Domestic Product

GHG Greenhouse Gas

GM General Meeting

HBF Home Builders Federation

HMRC HM Revenue & Customs

Housebuild

equivalent area

Measure of construction activity in the year, calculated by multiplying

the designed plot floor area of each individual unit by the proportion

of the total build work required for that unit completed in the period.

HR Human Resources

HVO Hydrotreated Vegetable Oil

IAS International Accounting Standards

IASB International Accounting Standards Board

IEA International Energy Agency

IFRS International Financial Reporting Standards

IIA Institute of Internal Auditors

IIR Injury incidence rate

IIRC International Integrated Reporting Council

ISAs International Standards on Auditing

ISAE International Standard on Assurance Engagements

ISO International Organisation for Standardisation

JVs Joint ventures

KPI Key performance indicator

LGBTQ+ Lesbian, gay, bisexual, transgender, queer and other gender expressions

LTPP Long-Term Performance Plan

LT V Loan to Value

MMC Modern methods of construction

MP Member of Parliament

MWh Megawatt Hours

NED Non-Executive Director

Net cash Cash and cash equivalents, bank overdrafts, interest-bearing borrowings

and prepaid fees

Net tangible assets Group net assets less other intangible assets and goodwill

NGFS Network for Greening the Financial System

NHBC National House Building Council

NPPF The National Planning Policy Framework

Ofcom

The regulator and competition authority for the UK communications industries

OHSAS Occupational Health and Safety Assessment Series

Operating margin Profit from operations divided by revenue

Oregon Oregon Timber Frame Limited, Oregon Timber Frame (England) Limited

andOregonContractManagementLimited

Paris Agreement International treaty on climate change adopted on 12 December 2015

andenteredintoforceon4November2016

PAS 9980 Code of practice setting out a method for the completion of a Fire

Risk Appraisal of External Wall construction

PBT Profit before tax

PEFC The Programme for the Endorsement of Forest Certification

PRS Private rented sector

PwC PricewaterhouseCoopers LLP

RCF Revolving Credit Facility

REGO Renewable Energy Guarantees of Origin

RIs Reportable Items - defects found during NHBC inspections

ROCE Return on capital employed calculated as described on page 210

RPDT Residential Property Developer Tax

Glossary continued

Strategic Report Governance Financial Statements

215Barratt Developments PLC Annual Report and Accounts 2024

RSPB Royal Society for the Protection of Birds

SAP Standard Assessment Procedure -quantifies a dwelling’s energy use per

unit floor area

SASB Sustainability Accounting Standards Board

SBTi Science Based Targets Initiative

SDLT Stamp Duty Land Tax

SECR Streamlined Energy and Carbon Reporting

Sharesave Savings-Related Share Option Scheme

SHE Safety, Health and Environment

Site ROCE Site operating profit (site trading profit less allocated administrative

overheads) divided by average investment in site land and work in progress

SONIA Sterling Overnight Interest Average

SUDS Sustainable Urban Drainage Systems

TCFD Task Force for Climate-related Financial Disclosures

tCO

e Tonnes of carbon dioxide equivalent

the Barratt group Barratt Developments PLC and its subsidiary undertakings prior to the

acquisition of Redrow plc

the Combination The acquisition of Redrow plc by Barratt Developments PLC and, subject

to CMA approval, the integration of the Redrow and Barratt businesses

the combined group The new group of companies comprising the Barratt group as defined

above, and Redrow plc and its subsidiaries

the Company Barratt Developments PLC

the Group Barratt Developments PLC and its subsidiary undertakings as at 30 June 2024

Total completions Unless otherwise stated, total completions quoted include JVs

Total indebtedness Net (cash)/debt and land payables

TSR Total shareholder return

Underlying ROCE ROCE as defined on page 210, with net assets also adjusted for land

payables as shown on page 211

UN SDGs United Nations Sustainable Development Goals

USPP US Private Placement

VAT Value Added Tax

WIP Work in progress

Glossary continued

216 Barratt Developments PLC Annual Report and Accounts 2024

Strategic Report Governance Financial Statements

Reporting approach

Our integrated report is primarily prepared for our shareholders; however, through our

activities we create value for a range of other stakeholders.

Reporting frameworks

Ourintegratedreportingisguidedbyvariouscodesandstandardsoutlinedinthe

table here.

Report scope and boundary

Our Integrated Report covers the performance of Barratt Developments PLC for the financial

year ended June 2024.

The report extends beyond financial reporting and includes non-financial performance,

opportunities and risks that may have a significant influence on our ability to create value.

Integrated reporting framework

The primary purpose of an integrated report is to explain to providers of financial capital

how an organisation creates value over time. An integrated report benefits all interested

stakeholders including employees, customers, suppliers, business partners, local

communities, legislators, regulators and policy-makers.

The IIRC’s vision is to align capital allocation and corporate behaviour to wider goals of

financial stability and sustainable development through the cycle of integrated reporting

and thinking.

Sustainability frameworks

Framework

The International Integrated Reporting Council’s Integrated Reporting

Purpose

Framework that is focused on articulating the value creation of an entity over time.

Framework

UnitedNationsSustainableDevelopmentGoals

Purpose

Outward-looking framework that covers the areas of the UN’s 2030 Agenda focused on

people, planet and prosperity.

The 17 UN SDGs define global sustainable development priorities and aspirations for 2030 and

seek to mobilise global efforts around a common set of goals and targets.

The UN SDGs call for worldwide action among governments, business and civil society to

end poverty and create a life of dignity and opportunity for all, within the boundaries of the

planet. The UN SDGs were launched in 2015 by the UN.

Framework

Task Force on Climate-related Financial Disclosures (TCFD) recommendations

Purpose

Recommendations for disclosing clear, comparable and consistent information about the

risks and opportunities presented by climate change.

Our primary disclosures aligning with TCFD recommendations as we continue on our journey

towards full alignment, are made through the CDP Climate survey, which we submit on an

annual basis. In 2018 the CDP Climate Survey format was aligned to TCFD recommendations.

Other TCFD related disclosures can be found within the content of this integrated report, and

onthesustainabilitysectionofourcorporatewebsite.

Legal requirements

Framework

International Financial Reporting Standards (IFRS)

Purpose

Globalframeworkforhowcompaniesprepareanddisclosetheirfinancialstatements.

Framework

Companies Act 2006

Purpose

Company law in the UK.

Framework

UK Corporate Governance Code

Purpose

The standards of good practice for listed companies on board composition and

development, remuneration, shareholder relations, accountability and audit.

Framework

StreamlineEnergyandCarbonReporting(SECR)

Purpose

Disclosures required by the UK Government on a company’s energy consumption and

greenhouse gas emissions.

Integrated reporting approach

Strategic Report Governance Financial Statements

217Barratt Developments PLC Annual Report and Accounts 2024

Registrars

Equiniti Group

Aspect House

Spencer Road

Lancing, West Sussex

BN99 6DA

Tel: 0371 384 2657

Statutory auditor

Deloitte LLP

London

Solicitors

Slaughter and May

Linklaters LLP

Brokers and investment bankers

UBS AG and Barclays Bank plc

Registered office

Barratt Developments PLC

Barratt House

Cartwright Way

Forest Business Park

Bardon Hill

Coalville

Leicestershire

LE67 1UF

Tel: 01530 278278

www.barrattdevelopments.co.uk