Barratt Redrow rises 4.3% after Phoenix call to speed buybacks

Barratt Redrow PLC (LON:BTRW) shares rose 6.6% to 281.00 pence each in London on Wednesday following a call from Phoenix Asset Management Partners, a major shareholder, to increase the company's share buyback programme. Phoenix, which has held a stake in Barratt Redrow since 1998, presented its analysis at the London Value Investor Conference, arguing that the company’s current valuation represents a compelling opportunity to create value for long-term shareholders through aggressive buybacks.

The firm emphasized that Barratt Redrow has the financial capacity to maintain its growth strategy while pursuing an expanded buyback programme. Phoenix’s analysis suggests that the company’s depressed stock price offers a unique chance to convert undervaluation into lasting shareholder value. Gary Channon, Phoenix’s chief investment officer, stated that the company could pursue buybacks aggressively while continuing to increase housing output.

Barratt Redrow recently completed a £50 million share buyback as part of its ongoing £100 million annual capital return programme. The next tranche of the buyback is expected to be announced in due course.