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Barratt boosts profits despite dip in homes built
The UK’s largest house builder has announced boosted profits in the six months to the end of December, despite a dip in the number of homes it built.
Barratt Developments recorded pre-tax profits for the period of £321m, an 8.8% rise on the same period in 2015.
This was derived despite completing 7,180 homes in the half year, down from 7,626 the year before. Revenue fell to £1.816bn, a fall from the £1.876bn the year previously.
The decrease in completions was concentrated in London, with homes built outside the capital hitting their highest point for nine years.
The house builder’s share price rose to its highest point since the EU referendum results were announced in the summer in the early trading.
It said it expected completions to grow in the first six months of 2017, with record forward sales up 17% on 19 February.
David Thomas, chief executive of Barratt, said: “As we reported in the January trading update, we have delivered another very strong first half performance, pre-tax profits were up nearly 9% and completions outside of London were at their highest level in nine years.
“With a record forward order book, strong consumer demand and a positive lending backdrop, we remain confident in our outlook for the full year. Our confidence in the business going forward is reflected in the improved and extended Capital Return Plan.”
