Monday, 05 December 2016

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.’

Readers' comments

Comments are only open to subscribers of Inside Housing

Already a subscriber?

If you’re already a subscriber to Inside Housing, your subscription may not be linked to your online account. You can link your subscription from within the My Account section of the website and clicking on Link My Account.

Not yet a subscriber?

If you don't yet subscribe to Inside Housing, please visit our subscription page to view our various subscription packages.

Have your say

You must sign in to make a comment

sign in register

Newsletter Sign-up



  • Grainger forecasts £50m profit

    11 October 2016

    The largest listed private landlord in the UK has told investors to expect profit of more than £50m for the year after strong growth despite stamp duty changes and the EU referendum.

  • Healey returns to Labour front bench

    10 October 2016

    John Healey has returned as shadow secretary of state for housing after resigning following the EU referendum.

  • Confidence returns following Brexit wobble, says Persimmon

    23 August 2016

    One of the UK’s largest house builders says confidence has returned to the sales market after “modest” jitters following the EU referendum in June.

  • Sargeant returns to housing brief

    20 May 2016

    Carl Sargeant has returned to the housing brief in the new Welsh cabinet.

  • Lakehouse boosts profit

    10 December 2015

    A contractor is eyeing a move into reactive repairs, after posting a 114% rise in underlying profit in its annual results.

IH Subscription