Barratt delivers more homes as revenues rise
House building giant Barratt has reported a 14 per cent increase in revenues and completions for the year ending 30 June.
It recorded revenue of £2,320 million and 12,637 completions in its trading update out today ahead of its annual results.
Social housing accounted for 22.2 per cent of the total completions for the full year, compared with 23.8 per cent last year. Shared equity accounted for 20.5 per cent, down from 22 per cent in 2010/11. Around two-thirds of these homes were supported by government initiatives.
The trading update says: ‘The group has made significant progress in both rebuilding profitability and reducing indebtedness during the year just ended.
‘Despite continued uncertainty surrounding the outlook for the wider UK market and constrained levels of mortgage finance, the industry has enjoyed a period of relative market stability.
‘Looking ahead, we expect the government’s housing initiatives, in particular its mortgage indemnity scheme Newbuy, to continue to provide the industry with support.’
The group’s operating profit was expected to be up by about 41 per cent at around £191 million, with average selling price up from £178,300 in 2010/11 to £180,000 in 2011/12.
Mark Clare, group chief executive, said: ‘This year has seen a rapidly improving performance across the group and shows that our strategy is delivering.
‘We expect to make further good progress in the year ahead thanks to a strong forward order book, with private forward sales up 35 per cent and more higher return land coming into production.’
Barratt’s full annual results will be announced on 12 September.