Housebuilder profit, selling prices, sales rates and completions all up in second half
Barratt beat market expectations in impressive trading in the second half of the year, the housebuilder revealed in a stock exchange announcement this morning.
Britain鈥檚 biggest housebuilder said profit growth and debt reduction during the first six months of this year beat market expectations.
The firm鈥檚 sales rate, total number of completions, average selling price and operating margin also grew.
The firm said profit before tax and exceptional items for the full year to 30 June 2013 would be circa 拢192m, which it said was 鈥渁head of the top end of analysts鈥� expectations鈥�.
The group鈥檚 net debt position also improved faster than expected, reducing over four fifths to 拢30m as at 30 June, compared to 拢167.7m the previous year.
Barratt鈥檚 sales rate was up 17.9% on the previous year and up 34.7% since the launch of Help to Buy in April.
The firm鈥檚 private average selling price was up circa 9% to circa 拢221,000, while total completions including joint ventures rose to 13,663, with private completions up 16.1%.
Barratt鈥檚 operating margin increased to circa 10.4% in the second half and circa 9.7% for the full year, up from 8.2% in the prior full year.
The group approved the acquisition of 18,526 plots worth 拢1bn during the year, up from 12,085 the previous year.
Chief executive Mark Clare said: 鈥淎s more house buyers return to the market, supported by improved mortgage availability and the Help to Buy scheme, we are in a strong position to continue to grow the value of the business.
鈥淲e are increasing our investment in land whilst reducing debt and have delivered a performance ahead of expectations.
鈥淢omentum is continuing to build and with forward sales up substantially, we are confident we can improve our performance still further in the year ahead.鈥�
The firm鈥檚 full year results will be announced on 11 September.
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