Strong demand boosts Barratt earnings

Barratt Developments said full-year profits were on track to beat forecasts, after buoyant demand for new homes helped sales return to pre-pandemic levels.

Providing a trading update before releasing full-year figures, the homebuilder said it had seen “strong” demand across the country, with total completions returning to pre-pandemic levels . A total of 17,908 homes were completed during the year, down from 17,243 a year earlier and 17,856 in 2019.

The total average selling price was £300,000, up from £288,800 in 2021.

Adjusted pre-tax profits for the year to June 30 are now expected to be between £1.05bn and £1.06bn, slightly ahead of the current market consensus for £1.048bn.

David Thomas, Managing Director, said: “We have delivered an excellent performance this year, reflecting the strong customer demand for our homes and the productivity of our sites.”

Looking to the current year, Barratt said he was well positioned, with total forward sales of 13,579 homes valued at £3.62billion as of June 30. Total home completions are expected to grow in line with the blue chip’s medium-term growth target of 3% to 5%.

Thomas said: “While there are clearly macro-economic uncertainties ahead, the housing market remains robust, our futures order book is strong and we have the resilience and flexibility to react to changes in the environment. operating environment.”

Barratt is due to release its annual results on September 7.