(Alliance News) - Housebuilder Barratt Developments PLC on Wednesday said it has started its new financial year well, with home deliveries rising 14%, though completions are to be at the lower end of a target range.
Barratt delivered 3,252 new homes during the 15 weeks to October 13, 14% higher than the year before. Total forward sales at October 13 were "strong", comprising 12,963 homes worth GBP3.07 billion. That was up from 12,903 homes at the same point last year, though the value was down from GBP3.15 billion.
Barratt's sales rate was 0.72 net private reservations per active outlet per average week, essentially flat on a year before.
The company, which is holding its annual general meeting on Wednesday, is making "good" progress on medium-term targets as it looks to improve margins.
Targets include 3% to 5% completions growth per year in the medium-term, as well as a minimum return on capital employed of 25%. It expects completions in the year ending June 2020 at the lower end of the range.
"We have started our new financial year well. Based on current market conditions, we continue to expect to grow volume towards the lower end of our medium-term target range this year," said Chief Executive Officer David Thomas.
"As we said in September, whilst there is increased economic and political uncertainty, the group is in a strong position. We recognise that the economic outlook will depend on the form of the UK's EU withdrawal in the medium term. 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 high quality homes across the country," Thomas added.
By George Collard; georgecollard@alliancenews.com
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Barratt Developments (BDEV)