Record pre-tax profits and completions for Barratt in full year results

End of year financial results from the UK's biggest housebuilder Barratt demonstrate the current strength of the house building market, as the company recorded a 12% rise in pre-tax profit to £765 million.

Barratt's Catford Green site in south London. Image: Barratt Developments
Barratt's Catford Green site in south London. Image: Barratt Developments

Barratt built its highest number of homes in nine years, delivering 17,395 homes in the year to 30 June. Its total average selling price on completions also rose by 6% to £275,200.

Sales were up 9.8% from £4.2bn to £4.65bn. Gross profit rose from £800m to £932m. Basic earnings per share rose by 11.3% from 55p to 61p.

Chief executive David Thomas said: "This has been another excellent year for the group. We have delivered a strong operational and financial performance and our highest completion volumes for nine years. We are committed to increasing the supply of new homes as the UK’s largest housebuilder and we remain industry leading in terms of quality and customer service.

"The group starts the new financial year in a good position with a strong balance sheet, healthy forward sales and we continue to see robust consumer demand supported by a positive mortgage environment. We are focused on driving further operational improvements through the business with a particular focus on margin improvement."

Government figures released last month showed that newbuild starts are now at the highest level since 2008 with 164,960 new homes started in the year to June 2017, up 13% on the previous year.

In his statement in the accounts chairman John Allan said the snap general election had "created some uncertainty" but that Government support for housebuilding and a commitment to tackle the country’s housing shortage remained.

"The Government’s Housing White Paper published in February contained many positive measures, particularly those aimed at speeding up the planning system and bringing forward more land for new homes. Following the outcome of the EU referendum, the board continues to monitor carefully the potential impacts of the vote to leave the EU on our business. Market conditions remain good with a wide availability of attractive mortgage finance, which, alongside Help to Buy, continues to support robust consumer demand."

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