4th Feb 2021 08:37
(Alliance News) - Barratt Developments PLC on Thursday posted a rise in its earnings for the first half of its current financial year, highlighting a record number of home completions in the period.
Shares in the FTSE 100 housebuilder were trading 3.2% higher at 695.19 pence each on Thursday morning in London.
For the six months ended December 30, Barratt posted pretax profit of GBP430.2 million, up 1.7% from GBP423.0 million recorded the year prior. This was as revenue climbed 10% to GBP2.49 billion from GBP2.27 billion.
Total home completions jumped a record 9.2% to 9,077 from 8,314. Operating margin was 20%, up from 19%.
The Leicestershire-based company said it will resume dividend payouts with the payment of 7.5 pence per share for the first half, compared to zero last year.
Turning to current trading, Barratt highlighted a "solid start" to the second half, with net private reservations per active outlet per average week for January at 0.77, down from 0.83 at the same period in 2020 but ahead of 0.74 at the same time in 2019.
Total forward sales at January 31 stood at 14,289 homes at a value of GBP3.43 billion, up from 2020's 13,043 homes at a value of GBP3.03 billion. It added 11,588 homes have been secured for completion beyond March 2021.
Looking ahead, the company stated its outlook for the full year remains in line with board expectations. Wholly-owned completions are expected to be between 15,250 and 15,750 homes, with joint venture home completions to be around 650.
"Whilst we are mindful of the continued economic uncertainties, the housing market fundamentals remain attractive and our outlook for the full year remains in line with expectations," said Chief Executive David Thomas.
Net cash held as at December 31, 2020 was GBP1.11 billion, up from GBP433.8 million on the same date in 2019.
By Ife Taiwo; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Barratt Developments