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

How to profit from India’s high-tech recovery
Share tips

How to profit from India’s high-tech recovery

Professional investor David Cornell of the India Capital Growth Fund, selects three of his favourite Indian stocks to buy now.
27 Sep 2021
Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021