Strong demand boosts profits at Barratt

Barratt Developments said annual profits were on track to beat forecasts, after buoyant demand for new homes helped sales return to pre-pandemic levels.

Updating on trading ahead of publishing full-year numbers, the house builder said it had seen “strong” demand across the country, with total completions returning to pre-pandemic levels. A total of 17,908 homes were completed in the year, compared to 17,243 a year previously and 17,856 in 2019.

The total average selling price was £300,000, compared to £288,800 in 2021.

Adjusted pre-tax profits for the year to 30 June are now expected to come in between £1.05bn and £1.06bn, slightly ahead of current market consensus for £1.048bn.

David Thomas, chief executive, said: “We have delivered an excellent performance this year, reflecting the strong customer demand for our homes and the productivity of our sites.”

Looking to the current year, Barratt said that it was well positioned, with total forward sales of 13,579 homes valued at £3.62bn as at 30 June. Total home completions are expected to grow in line with the blue chip’s medium term growth target of 3% to 5%.

Thomas said: “While there are clearly macro-economic uncertainties ahead, the housing market remains robust, our forward order book is strong and we have the resilience and flexibility to react to changes in the operating environment.”

Barratt is due to publish full-year results on 7 September.