Barratt Developments sees full-year profit ahead of market expectations
By Michele Maatouk
Date: Wednesday 10 Jul 2019
(Sharecast News) - Barratt Developments hailed a \"record\" full-year performance on Wednesday, with pre-tax profit expected to come in above market expectations, partly underpinned by contributions from its joint ventures.
In an update for the year to 30 June 2019, the housebuilder said wholly-owned completions edged up 2.6% to 17,111 homes. Meanwhile, pre-tax profit is anticipated to be ahead of market expectations of £884m, at around £910m. This is up from £835.5m in 2018 and driven by continued strong progress from margin initiatives, a solid close to the year and additional contribution from joint ventures.
The group said it had total forward sales including JVs of £2.60bn as at 30 June, versus £2.18bn the year before. In addition, it was awarded the HBF\'s maximum 5 Star customer satisfaction rating for the tenth year in a row.
The operating margin for the year came in at around 18.9% compared to 17.7% the year before, with an underlying margin improvement of around 70 basis points, driven mainly by its margin initiatives.
Chief executive David Thomas said: \"It has been another very good year for the group both operationally and financially. We have delivered our highest number of completions for eleven years, made further improvements to our margin and as the only major housebuilder to be awarded a 5 Star rating for customer satisfaction for ten years in a row, we continue to lead the industry in quality and customer service.
\"We begin the new financial year with a strong forward order book and cash position, continued focus on the delivery of operational improvements across our business, and an ongoing commitment to deliver the highest quality homes across the country.\"
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