Barratt Developments profit more than doubles

House-builder Barratt Developments more than doubled half year profit and, after a good start to the second half, it expects a further improvement in profitability this financial year.

House-builder Barratt Developments more than doubled half year profit and, after a good start to the second half, it expects a further improvement in profitability this financial year.

Pre-tax profit surged 113.4% to £46.1m for the six months ended December 31st 2012. Revenues slipped to £951.1m during the period from £952.8m in 2011, in line with expectations.

Profit from operations rose 32.2% to £80.8m, with operating margin increasing to 8.5% from 6.4%. Completions fell to 5,085 units from 5,117 units a year earlier while private completions increased by 5.3% on the prior year to 4,241 units.

Commenting on the results Chief Executive Mark Clare said: "Our order book of more than £1.1bn reflects the strong customer interest we have seen in the early weeks of the year, supported by both NewBuy and better lending conditions."

"Although we remain cautious as to whether the thaw in lending conditions will be sustained, improvements in mortgage lending and the success of the NewBuy scheme have supported a strong start to the 2013 calendar year."

Barratt said it is making good progress towards its target of achieving zero balance sheet net debt by June 2015.

Net debt as at December 31st 2012 was £331.7m from £542.2m a year before and is forecast to be around £160m at June 30th from £167.7m in the equivalent period a year earlier.

The board expects to propose a final dividend for the year ended June 30th 2013.

CJ

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

The FTSE 100 is set for a makeover with an influx of new tech stocks
UK stockmarkets

The FTSE 100 is set for a makeover with an influx of new tech stocks

The FTSE 100 – the dullest index in the world – is about to reinvent itself as a host of new firms list on the market. The change is long overdue, say…
24 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021