Housebuilder returns to profit
Housebuilder Barratt Developments has announced a return to profit after a year of loss.
The company has posted a pre-tax profit before exceptional items of £42.7m for the year to June 30 2011 compared to a £33m loss last time.
The figures were released in the company’s annual results announcement for the year ended 30 June 2011. According to the report, profit from operations was £127m this year compared to £74.3m last year.
Completions were down marginally - 11,171 this year compared to 11,377 last year - but private average selling price grew to £198,900 from £185,200.
The company also said it had a high percentage of land bank with outline or detailed planning consent and a significant level of contracted government funding for affordable housing.
It also welcomed the governments pledge to release land on which to build up to 100,000 new homes.
Mark Clare, group chief executive, said: ‘The outlook for the housing market remains challenging as a result of continuing constraints on the availability of mortgage finance and overall economic uncertainty.
‘Whilst we saw greater stability in the second half, trading conditions remain challenging in some areas outside the South East. Our London business continues to perform particularly well, reflecting its strong position across the capital.
‘We will continue to drive profitability through optimising the value of the homes we sell, delivering additional outlets from our new higher margin land whilst maintaining a tight control over costs and improving operational efficiency.’