Barratt Redrow opts for buybacks over dividends as cash pile beats forecasts

Barratt Developments (BDEV) and Redrow (RDW) have opted to return cash to shareholders via share buybacks rather than dividends, as their cash piles beat forecasts.

The FTSE 100 and FTSE 250 housebuilders announced the move on Wednesday, with Barratt Developments saying it would buy back £200 million of shares, while Redrow confirmed a £100 million programme.

The announcements come as both companies revealed their cash piles had grown beyond expectations.

Barratt Developments said its net cash position stood at £1.3 billion at the end of June, up from £1.1 billion a year earlier, and ahead of the £1.2 billion expected by analysts.

Meanwhile, Redrow reported its net cash had risen to £900 million, from £800 million in the previous year, beating the £850 million anticipated by the market.

Both companies are set to release their full-year results next month.