Barratt sees profits build as it marks 60th anniversary

UK’s largest provider of new-build homes sees revenues rise

The UK’s largest housebuilding group has cemented its position after delivering a jump in annual profits.

Barratt Developments completed 17,579 homes across its UK developments in the year to June 30, the second highest in the group’s 60-year history.

Revenues climbed by 4.8% to £4.87 billion, while pre-tax profits moved 9.2% ahead to a record £835.5 million.

The average selling price on completion increased 5% to £288,900.

Barratt – which has numerous developments across Scotland and which is currently building out sites at Kirkcaldy, Dunfermline and at Victoria Grange at Monifieth – said conditions remain good and the availability of attractive mortgage finance and the government’s Help to Buy scheme.

Chief executive David Thomas said the business had entered the financial year in a “good position” with a strong balance sheet and healthy forward sales.

“The group has had another outstanding year delivering a strong operational and financial performance, and our highest volumes in a decade,” Mr Thomas said.

“As the UK’s largest housebuilder, we are helping to address the country’s housing shortage – creating jobs and supporting economic growth whilst continuing to lead the industry in quality and customer service.

“Our continued focus on operating efficiencies and margin initiatives is starting to deliver and we have today announced new medium term operational targets reflecting our confidence in the business going forward.”

The positive note comes despite reports over the weekend that Help to Buy will be scrapped in 2021, as well as warnings from rival firms over Brexit.

Shares in Barratt closed the trading session up 9.60p at 545.20 yesterday.

Picture: Mhairi Edwards. The Victoria Grange development.