7th Sep 2016 06:23
LONDON (Alliance News) - Barratt Developments PLC on Wednesday said its sales trend since the end of June had been encouraging and underpinned a "business-as-usual" stance following the Brexit decision, as the UK housebuilder reported a 21% rise in pretax profit for its financial year.
Barratt reported 267 average weekly net private reservations since July 1, up from 265 in the same period of 2015, resulting in net private reservations per active outlet per average week of 0.75, up from 0.71 the prior year.
Regionally, Barratt said trading conditions in the North and Midlands had been stronger than those seen in the South, but the company said it had begun the new financial year in a good position. Barratt's forward order sales were up 4.1% on the prior year at a value of GBP2.42 billion equating to 11,364 plot at the year end on June 30.
"There remains an under-supply of new homes, strong government support including Help to Buy, and a mortgage market willing to lend. As a result, we remain confident in the underlying fundamentals of both the housing sector and our business," Barratt said in a statement.
"Our sales trends since the start of the new financial year have been encouraging, and underpin an increasingly 'business-as-usual' stance whilst we continue to monitor consumer, economic and other lead indicators closely following the EU referendum vote," the company added.
The comments came as Barratt reported a 13% rise in revenue for its year ended June 30 to GBP4.24 billion from GBP3.76 billion the prior year, after it sold more homes at higher prices.
The company's total completions during the year rose to 17,319 plots from 16,447 plots the prior year, and its average selling price was up 10% at GBP289,800 from GBP262,500.
This drove a 21% increase in pretax profit to GBP682.3 million from GBP565.5 million, and Barratt hiked its final dividend to 12.30 pence per share up from 10.3p per share. This, together with a 12.40p per share special dividend and the interim dividend, meant the full-year dividend offered was 30.70p per share, up from 25.10p per share the prior year.
"Barratt starts the new financial year in a good position with a strong balance sheet, good forward sales and an experienced management team. Whilst we continue to monitor market conditions closely, current trading trends are positive, and I remain confident in the fundamentals of the housing sector and of our business," said Chief Executive David Thomas.
By Hannah Boland; [email protected]; @Hannaheboland
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