12th Nov 2014 08:14
LONDON (Alliance News) - Barratt Developments PLC on Wednesday said it was on track to deliver a strong year of growth with market conditions remaining robust for the group across the country and its sales rate increasing in the period between the start of July and November 9.
The FTSE 250-listed housebuilder said market conditions in the UK remain robust at present, with high customer interest levels and demand in all regions. The group said the more stable market gives it confidence in meeting its medium-term targets.
Barratt's group sales rate of 0.63 net private reservations per active site per week in the period between July 1 and November 9 is down from the 0.71 last year, but it is said it remains on track to hit its target of 15,000 completions for the year, with a further 700 from its joint ventures. It said the sales rate was driven higher in 2013 by the introduction of the UK government's Help to Buy scheme.
Private forward sales, excluding joint ventures, rose 11.9% in the period to GBP1.26 billion, up from GBP1.13 billion a year earlier. This equates to a total of 4,845 plots, the company said, with 4,693 of these set to be completed in the current financial year to June 2015.
Joint venture private forward sales, primarily focused on London, rose 49.7% in the period to GBP293.1 million from GBP195.8 million last year. This equates to 529 plots, against 356 plots at the same time last year, with 263 of these due for completion this financial year.
Barratt said it expects more completions in the first half its current financial year compared to last year.
The group said it is expecting to make further improvement in its performance in the current financial year and towards hitting its medium-term growth targets. It said its current performance is supportive of its Capital Return Plan, through which it expects to return around GBP950 million in ordinary and special dividends over the next three years.
Barratt shares were trading up 0.2% at the open on Wednesday at 426.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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