Barratt Developments on track to beat profit targets
Solid sales figures and an increase in completions have led to a buoyant trading update at Barratt Developments.
The group, Britain’s biggest housebuilder by sales, said it is on track to beat its profit targets after the highest number of completions in a decade.
Barratt Developments completed 17,579 homes in the year to June, compared with 17,395 a year earlier. Its most productive year to date was 2008, when it completed 18,500 properties. It wants to build 20,000 homes a year within the next three to five years.
The strong level of completions pushed pre-tax profits up to £835 million, up from £765m last year, supported by a strong performance in the regions.
The value of Barratt’s forward order book rose 1.5% from £2.14 billion to £2.18bn, representing 10,155 plots.
The average selling price of a Barratt home was about £289,000 over the year, up from £275,200 in the prior 12 months, with affordable housing making up around a fifth of sales.
Completions totalled 17,579 for the year, up from 17,395 previously, marking the strongest performance in ten years.
Chief executive David Thomas said: “It has been a very good year for the group both operationally and financially with strong customer demand for our high quality new homes across our business.
“As we celebrate our 60th anniversary we have delivered our highest number of completion sin a decade, reinforcing our position as the UK’s largest housebuilder.”
He added: “We begin the new financial year with a healthy forward order book, a strong cash position and a continued focus on delivery of operational improvements across our business. Across the country we are building much-needed new homes, creating jobs and supporting economic growth.”