Barratt reports strong income growth and housing completions

The UK's biggest house builder by volume has reported its highest total of housing completions in eight years as it records a 20% rise in pre-tax profits.

The market remains strong for house sales, according to Barratt
The market remains strong for house sales, according to Barratt

Barratt Developments completed 17,319 plots in the financial year to 30 June 2016, up 5.3% from 16,447 the year before.

Turnover has increased by 12.7% from 3,759.5 in 2014/15 to 4,235.2 in 2015/16. The average private selling price increased by 10.4% to £289,800.

Chief executive David Thomas said that current trading trends were positive, with favourable Government support such as the Help to Buy (Equity Loan) scheme in England, Scotland and Wales, a long term undersupply of new homes and a liquid mortgage market.

"I remain confident in the fundamentals of the housing sector and of our business," he said, adding that during the year the company estimated it created more than 55,000 jobs either directly, indirectly or induced.

He added that Barratt had "excellent future land opportunities secure with 24,387 plots approved for purchase."

The results follow concern and a sharp drop in share prices after the Brexit vote. In July the company warned it may slow down operations in case of a slowdown in the market but now is saying there is no change.

Other housebuilders have also recently reported growth. Redrow said yesterday that its sales had risen by 8 per cent since 30 June and Persimmon said last month that it had seen an increase in reservations of new homes.

However Barratt added there was a continued slowdown in sales on London properties worth over £1m, a trend which has been going on for about a year.

The board has proposed a final dividend of 12.3 pence per share which added to other dividends due for the 2015/16 financial year to mean a total proposed return of 30.7p per share.

The PLC’s share price dropped by 40% in the weeks after the pro-Brexit vote and have continued to trade down today.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Read These Next

IoG Saltex 2016 - show preview

IoG Saltex 2016 - show preview

This year's Saltex will be looking to build on the success of last year by packing in a multitude of exhibitors and sessions over the two days, Sally Drury reports.



These tidy evergreen trees are not just for Christmas and come in a range of shapes and sizes, writes Miranda Kimberley.

Tree lifting, moving  and planting

Tree lifting, moving and planting

Successful relocations can see even big trees flourish while costing less than buying new stock, says Sally Drury.

Horticulture Jobs
More Horticulture Jobs

Are you a landscape supplier?

Horticulture Week Landscape Project Leads

If so, you should be receiving our new service for Horticulture Week subscribers delivering landscape project leads from live, approved, planning applications across the UK.

Landscape Contracts & Tenders

Industry Data

New: We have pooled the wealth of data from the past six months' worth of Landscape Project Leads to create an exclusive report for subscribers looking at the key development trends, clients and locations for 2016.