Construction Industry Legend revises profits UP!
Barratt Developments PLC is today issuing a trading update for the Company and its subsidiaries (the “Group”) for the year ended 30 June 2012 ahead of its annual results announcement on Wednesday 12 September.
- Group revenues up by c. 14% for the full year to c. £2,320m, with total completions of 12,637 units
- Group operating profit before exceptional items for the full year expected to be up by c. 41% at around £191m
- Operating margin expected to increase to c. 9.5% in the second half and c. 8.2% for the full year, up from 6.6% in the prior full year
- Full year profit before tax and exceptional items expected to increase by c. 158% to c. £110m
- Net debt almost halved against the prior year to c. £170m as at 30 June 2012, significantly lower than previous guidance
- Private forward sales up 34.6% to £378.4m as at 30 June 2012
Mark Clare, Group Chief Executive commented,
“This year has seen a rapidly improving performance across the Group and shows that our strategy is delivering, with profits up more than 150% and an almost halving of our net debt. We expect to make further good progress in the year ahead thanks to a strong forward order book, with private forward sales up 35% and more higher return land
Barratt Developments has made significant progress in both rebuilding profitability and reducing indebtedness during the year just ended. Despite continued uncertainty surrounding the outlook for the wider UK market and constrained levels of mortgage finance, the industry has enjoyed a period of relative market stability. Looking ahead, we expect the Government’s housing initiatives, in particular its mortgage indemnity scheme NewBuy, to continue to provide the industry with support.
In the current financial year we expect to make further good progress with more than half of completions forecast to be delivered from our more recently acquired higher margin land.
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Posted on July 12, 2012, in Affordable housing, Building Construction Industry, Building Engineering Sector, Business, construction jobs, construction news, Employment, Energy Efficiency, Government, Green Deal, Heath and Safety, Housing Scheme, Infrastructure, Politics, t4ts, train4tradeskills, Train4TradeSkills News, UK Economy and tagged Annual Turnover, Barratt Developments, better employment opportunities, building engineering sector, building programme, construction industry, good financial year, Government, Housebuilders, Investment, new developments, new houses, new jobs, NewBuy scheme, Press Release, Profits, significant progress in housing market, t4ts news, the Group, trading update, train4tradeskillsnews, UK housing marker. Bookmark the permalink. Leave a comment.