logo-loader
viewBarratt Developments

Barratt sees profits soar thanks to stable housing market

house_schematic_350_4ffd4e8bd97b3.jpg

Homebuilder Barratt Developments (LON:BDEV) said today annual profits had soared thanks largely to the stability of the housing market.

Pre-tax profits increased by 158 per cent to £110 million for the full-year to 30 June.

Group revenues jumped 14 per cent to £2.3 billion as Barratt completed 12,637 houses compared with just over 11,000 the year before.

Group operating profit rose 41 per cent to around £191 million (2011:£135 mln).

Demand in the housing market has remained high thanks to a lack of new homes in the UK and a government drive to help the market move forward, with schemes including New Buy.

“This year has seen a rapidly improving performance across the group and shows that our strategy is delivering, with profits up more than 150 per cent and an almost halving of our net debt,” said chief executive Mark Clare.

The “significant” improvement in operating margin to around 8.2 per cent from 6.6 per cent in 2011 reflected a focus on operational efficiency and bringing more recently acquired higher margin land into production.

Barratt reduced net debt to around £170 million, significantly lower than forecast, the company said.

The average selling price increased in the period to £180,000, with “greater robustness” shown in London and the South East.

Private sales were up 35 per cent to £378 million over the 12 months.

After climbing early, the share price slipped 0.9 per cent to 136 pence.

Quick facts: Barratt Developments

Price: 529.4 GBX

LSE:BDEV
Market: LSE
Market Cap: £5.39 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Phunware signs deal to use their technology for new app with City of...

Phunware (NASDAQ) COO Randall Crowder and Jeff Wagner, the Mayor of Pasadena, Texas joined Steve Darling from Proactive with news Phunware is going to deploy it SmartCity solution to Pasadena to help improve citizen engagement during the pandemic. Crowder telling Proactive why this app can so...

34 minutes ago

2 min read