3rd May 2023 09:33
(Alliance News) - Housebuilder Barratt Developments PLC on Wednesday said it is now fully forward sold for financial 2023, thanks to an improved sales rates.
The Leicestershire-based housebuilder updated on the period from January 1 to April 31, ahead of its year-end on June 30.
Total forward sales as at April 23 stood at GBP2.96 billion, down 34% from GBP4.51 billion a year earlier.
Net private reservations per active outlet per average week was 0.65, compared to 0.93 a year before.
In the recent four-month period, Barratt delivered 3,194 total home completions, down from 3,915 a year earlier. This brings total home completions in the financial year to date to 11,820, compared to 11,982 a year earlier.
Barratt said it expects to deliver adjusted pretax profit in line with current market expectations of GBP876.8 million. This would be down from GBP1.05 billion in financial 2022.
Trading for financial 2023 is in line with the board's expectations, Barratt said, and it remains on track to complete between 16,500 and 17,000 homes, including around 750 joint venture completions.
Chief Executive Officer David Thomas said: "In February we reported early signs of recovery in our reservation rates following the exceptionally challenging trading conditions experienced at the end of 2022. Whilst the economic backdrop remains difficult, we are pleased that more positive sales rates have been maintained through this period, and we are now fully forward sold for [financial 2023]. As a result, we expect to deliver full year adjusted profit before tax in line with current market expectations."
Barratt said its GBP200 million share buyback programme continues. As at April 21, the firm had bought 38.6 million shares for cancellation at a total cost of GBP154.5 million.
Shares were down 0.2% at 504.20 pence each on Wednesday morning in London.
By Xindi Wei, Alliance News reporter
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