24th Jul 2006 07:01
Barratt Developments PLC24 July 2006 BARRATT DEVELOPMENTS PLC TRADING UPDATE 24th July 2006 Barratt Developments PLC is today issuing an update on trading for the yearended 30th June 2006, ahead of Preliminary results which will be announced on27th September 2006. We expect to confirm our 14th consecutive year of growth with further increasesin completions and continuing pre-tax profit. In addition, we have againincreased our investment in land whilst maintaining strong cash disciplines,with average gearing of 11% throughout the financial year and net cash of circa.£38m at the year end. Total completions increased by 1.8% to 14,601 (2005: 14,351) at an averageselling price of £165,800, down 3.7% on 2005 as a result of an increasedproportion of social housing. Private completions were 5.5% lower at 11,899, atan increased average selling price of £182,800, up 0.4%. Social housingcompletions increased by 53.5% to 2,702, at an average selling price of £90,500,down 11% due to geographic mix. As we expected, a range of incentives and marketing support has been required ina steady but competitive marketplace. However, as a result of overheadefficiencies and strict control of building costs we expect to deliver Grouppre-tax profit in line with City expectations. We again strengthened the size and quality of our land bank which has nowincreased to c.66,500 plots (2005: 61,000), including 7,500 plots (2005: 7,000plots) agreed subject to contract. This equates to 4.5 years' supply at currentvolumes (2005 4.3 years). Overall, buyer confidence improved over the year and remains steady with sellingprices having risen in line with incomes. As a result of a good salesperformance, total reservations are now 8% better than a year ago and we haveentered our new financial year with a strong forward order book. Forward salesat 1st July increased to £845m, up 9%, the second highest level achieved. The fundamentals of the housing market remain sound and we expect it to continueto perform satisfactorily in the year ahead and provide a solid foundation forthe future development of the business. Whilst we expect to operate in acompetitive market, and some uncertainty exists as to future interest rates, weremain confident of our ability to compete successfully. The strength of ourforward sales, our national geographic spread and product range, combined withour urban regeneration and social housing expertise, leaves us well placed forthe future. Enquiries:- Weber Shandwick Square MileBarratt Developments PLC Chris Lynch/David Pretty, Chief Executive/ Terry GarrettMark Pain, Finance Director Tel: 0207 067 0700Tel: 0208 326 7240 Note to editors: Barratt Developments PLC is Britain's best-known house builder and has builtmore homes in the last decade than any other. We have a network of 7 regions and 33 divisions operating throughout Britain. Wedirectly employ over 4,400 people including 550 apprentices and 50 graduatetrainees. Our developments span the length and breadth of Britain developing on over 450sites, helping to meet housing demand in towns, cities and rural areas. Barrattis at the forefront of urban regeneration with over 80% of our developmentsutilising brownfield land. We are also one of Britain's leading suppliers ofsocial housing. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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