Despite difficult trading conditions housebuilder's pre-tax profit is up 10.2% to 拢194m, but forward sales are down 7%
Barratt made upbeat noises about the state of the housing market during its half-year results to 31 December 2007 today.
The housebuilder posted a 10.2% rise in pre-tax profit to 拢194.6m, up from 拢176.6m the previous year. Turnover jumped 38% from 拢1.2bn to 拢1.7bn.
Chief executive Mark Clare said: 鈥淭rading conditions over the last six months have been difficult and the business has had to adjust to this new environment. We are continuing to reduce costs, whilst improving sales effectiveness to ensure that prices and volume are maximised.
鈥淭he new calendar year has started well. We have increased outlets and have a strong forward order book. Visitor and reservation levels continue to improve and we remain optimistic that this will continue through the balance of the spring selling season.鈥�
Despite the positive mood, the company said that at 17 February this year forward sales were 7% down on last year at 拢1.6bn.
Completions increased by 25.7% to 9,056 (2006: 7,206) at an increased average selling price of 拢178,000, up by 7.9% (拢165,000).
But on a like-for-like basis, reflecting what the group called 鈥渕ore difficult trading conditions, the figure dropped 14.8% to 10,623 units.
Dresdner Kleinwort analyst Alastair Stewart said the company鈥檚 high debt level meant the rhetoric could be 鈥渨ishful thinking by an over-geared company
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