Barratt shareholders set for windfall amid 12-year production high
Barratt Developments announced today that it will pay shareholders a £350 million in special returns over the next two years as the housebuilder recorded the highest half-year home completion rate in 12 years.
The firm said a further extension to its capital return plan will see proposed special returns of £175m in November 2020 and November 2021.
A trading update issued this morning revealed Barratt made a profit before tax of £423 million in the six months to 31st December 2019, an increase of 3.7% on the £408m profit made in the same period the year before.
Half-year revenue was up 6% to £2.27 billion (2019 H1: £2.13bn).
A 9.1% increase in home completions to 8,314 is a 12-year high and puts the housebuilder “on track” for 3-5% growth in wholly-owned completions for the full year to June 2020.
Chief executive David Thomas said: “We have achieved a strong first-half performance, delivering continued volume growth and making good progress against our medium-term targets. We have made a good start to our second half and with substantial net cash, a well-capitalised balance sheet and strong forward sales, the outlook for the full year is in line with our expectations.
“The customer continues to be at the heart of everything we do. In 2019 we were proud to become the only major housebuilder to be awarded a 5 Star rating by our customers in the HBF survey for ten consecutive years and look forward to extending that record.
“We will continue to lead the industry in quality and service as we deliver the high-quality homes and developments the country needs, creating jobs and supporting economic growth across England, Scotland and Wales.”