Record number of completions for Barratt

Barratt has delivered its highest number of completions for 11 years in the 12 months to the end of June with profit before tax expected to be ahead of expectation at around £910 million against £835.5 million last year.

Today issuing a trading update for the year, Barratt said it had completed 17,856 homes including joint ventures up 277 units compared to 2018, with wholly owned completions up by 2.6% to 17,111 homes from 16,680 in 2018. Operating margin is around 18.9% a rise from 17.7% in 2018.

Barratt ceo 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.”

Commenting on Barratt its new housing ranges Barratt said. “Our new house type ranges are suitable for modern methods of construction (MMC) which we aim to use in 20% of our homes by 2020. In addition, we recently acquired Oregon Timber Frame Limited, one of our key suppliers of timber frames, to complement our existing business operations.” The firm said build cost inflation was 3-4% during FY19 and anticipated a similar level of inflation for FY20.

Barratt’s total forward sales (including JVs) as of June 30 2019 stand at a value of £2,604.1 million a rise from £2,175.7 million, June 30 2018: equating to 11,419 homes up 10,155 homes from the equivalent time last year. Wholly owned forward sales were up 13.3% on the prior year at £2,283.5 million compared to £2,016.1 million, equating to 10,547 homes vs 9,609 homes.

On the outlook Barratt said: “Whilst there remains some economic and political uncertainty, the group is in a strong position. We have a substantial net cash balance, a well-capitalised balance sheet, a healthy forward sales position, a continued focus on delivery of operational improvements across our business and an ongoing commitment to deliver the highest quality homes across the country. We believe that this gives us the resilience and flexibility to react to potential changes in the operating environment in FY20 and beyond.”