Housebuilder's profits more than doubled

Published by Max Salsbury for 24dash.com in Housing and also in Development, Finance

The UK's biggest housebuilder has reported that its pre-tax profits more than doubled in the final six months of last year.

Barratt Developments PLC believes it will deliver a 108% increase in pre-tax profit of £45 million for July-December 2012.

Barratt announced:

• Group revenues of c. £950m, in line with prior year, and total completions of 5,085 units
• Private completions increased by 5.3% on the prior year to 4,241 units
• Group operating profit expected to be c. £80m for the period, up by c. 31% on the prior year
• Operating margin expected to increase to c. 8.4%, up from 6.4% in the prior year
• Profit before tax expected to be c. £45m, more than double the prior year
• Significant increase in approvals to acquire higher margin land with £453.0m of land acquisitions approved in the period equating to 9,320 plots on 67 sites

Mark Clare, Barratts' chief executive, said: "This has been a good first half performance. Pre-tax profit has more than doubled, net debt was significantly lower than the prior year, and we have started the second half with a strong private forward order book up by over 35%. In addition, we have been investing for the future, successfully securing higher margin land both in the South-East and across the rest of the country that will drive further profit growth."