6th Jul 2020 09:00
(Alliance News) - Barratt Developments PLC said Monday its completion volumes in financial 2020 were "significantly" lower due to the lockdown restrictions put in place by the UK government to halt the spread of Covid-19.
Shares in the FTSE 100-listed housebuilder were 6.1% higher in London on Monday morning at 520.40 pence each.
For the year to June 30, Barratt completed 12,604 homes, down from 17,856 homes the year before.
"Prior to the Covid-19 pandemic, the group was delivering a strong year of progress on both volume and margin. The pandemic has caused significant disruption, but our highly skilled and experienced team have shown incredible resilience, flexibility and commitment both through the peak of the crisis and in the careful reopening of our sites," Chief Executive David Thomas said.
Barratt's sales rate for financial 2020 dipped to 0.60 from 0.70 the year before.
Before the lockdown hit, however, Barratt said it was on course to hit its medium-term targets.
Barratt said since the UK government's restrictions on housing market activity were lifted in mid-May there has been a welcome recovery in internet activity, site visitors and net reservations across both the industry and its business.
Following the reopening of its sales centres, the company has seen an increase in lead volumes, which are running at levels in excess of those achieved in the same period in 2019, Barratt said. In the six weeks since reopening it achieved a sales rate of 0.63, marginally lower from 0.69 net private reservations per active outlet per average week, with no "discernible change in pricing levels".
"Now, with our construction sites operational across the UK, we begin the new financial year with cautious optimism supported by our strong forward order book and our well capitalised balance sheet," CEO Thomas added.
The housebuilder said its selling prices have remained "resilient". Its total average selling for financial 2020 was about GBP280,000 compared to GBP274,400 the year before.
Barratt's forward order book ended June at 14,326 homes at a value of GBP3.25 billion, up from GBP2.60 billion at the same point the year before.
However, Barratt has decided against a shareholder payout for financial 2020, but said it will give further consideration to a future dividend policy. This includes, the company said, its previously announced GBP175 million special dividend.
The company ended June with net cash of about GBP305 million and land creditors of about GBP800 million.
By Paul McGowan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Barratt Developments