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​Barratt profits boom

News   •   Feb 24, 2016 11:17 GMT

Strong performance for house builder in this half

Barratt Homes has released its figures for the last six months, showing a 40% surge in pre-tax profits for the house builder.

Commenting on the results David Thomas, Chief Executive of Barratt Developments PLC said: “In line with our strategy, we have stepped up the number of completions in the first half and we did this in a disciplined way, both financially and operationally, without compromising on the quality of the homes we’re building.

“In the past five years we have increased our annual output by more than 53%, built more than 71,7001 homes and approved the investment of over £4.4Bn in new land for housing. The market remains strong as a result of improved mortgage availability and Government support for first time buyers and we will continue to grow in a way that delivers for the needs of homebuyers and shareholders alike.”

Pleased with the strong market, which has been backed by Government support for first time home buyers, the results show a pre-tax profit of £295M, an increase from £210.2M the previous year. The Group believes that the pleased to extension of the UK government's Help to Buy programme until 2021 will prove an important boost to the housebuilding sector. It also welcomes the government's separate equity loan scheme for London, which helps those buying a new build property in the capital.

"Both changes will be important for our customers, particularly in helping buyers into the market," Barratt said in a statement.

"We remain supportive of the government's Starter Homes Scheme, which is aimed at providing 200,000 homes for first time buyers by 2020."

The Group has completed 7,626 homes so far this year, a nine per cent increase from the half year ending December 2014.

This strong start to the year is reflected with an expected net cash balance in excess of £250M come June.

Trading on the London stock market this morning shows shares in Barratt were up by 1.16% at 569.50 pence.

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