2nd Sep 2021 08:38
(Alliance News) - Blue chip housebuilder Barratt Developments PLC said Thursday annual profit has soared two-thirds higher on the back of "excellent progress" and has started the new financial year in a strong position.
Shares in Barratt were down 2.1% in London on Thursday morning at 727.20 pence each but are up 8.2% in 2021.
For the financial year ended June 30, revenue rose 41% to GBP4.81 billion from GBP3.42 billion a year ago and pretax profit was GBP812.2 million, up 65% from GBP491.8 million. The pretax profit figure was at the top end of the company compiled consensus range of GBP761 million to GBP812 million.
It said sales were catching up with pre-pandemic levels, with completions just 3.4% below 2019, although profit remains down 11% year-on-two-years.
During the period, Barratt completed 17,243 homes, up 37% from 12,604 completed last year and was in line with guidance given in July.
Barratt declared a total dividend of 29.4 pence, having paid out nothing the year before.
Turning to current trading, Barratt said its sales performance so far has been strong with forward sales as at August 22 of 15,734 homes, up from 15,660 homes at the same time last year.
Since the year end, which also marked the end of the full stamp duty relief, private reservations were 12% below those seen in the full-year, at 0.83 per active outlet per average week.
It added that forward orders were strong, at 15,734 homes worth GBP3.9 billion as at August 22, up from GBP3.7 billion a year ago.
"Our business is in a strong position with substantial net cash, a well-capitalised balance sheet and a strong forward sales position. We continue to deliver operational improvements throughout our business alongside high quality, sustainable homes and developments across the country. However, we recognise that the UK economy continues to face uncertainties arising from Covid-19," said Chair John Allan.
"We remain focused on our medium term targets. The board will continue to respond to changes in the market and the wider economy but believes that our operating performance, strong forward order book and further strengthened financial position provide us with the resilience and flexibility to react to changes in the operating environment in financial 2022 and beyond," Allan added.
Despite the recent easing back in reservations, Barratt said it still expects to see wholly-owned completions of between 17,000 and 17,250 homes in financial 2022, putting it on track for its long-term target of 20,000 a year.
David Thomas, chief executive, said: "We have begun the new financial year in a strong position and, whilst there are still uncertainties ahead, our strong balance sheet, forward order book visibility and construction activity to date all stand us in good stead."
By Paul McGowan; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Barratt Developments