Barratt announces massive rise in pre-tax profits
Published by Max Salsbury for 24dash.com in Housing and also in Development
House-building activity 'fails to lift construction gloom'
Barratt Developments PLC has announced a massive 113.4 percent rise in pre-tax profits for the final six months of 2012.
The housebuilder today revealed £46.1m in pre-tax profits for the six months to December 31, up from £21.6m during the same period in 2011.
However, group revenues and completions were slightly down on 2011.
Barratts completed 5,085 units in the second half of 2012, a drop from 2011's 5,117.
The firm's interim report also revealed:
- 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
- Net debt as at 31 December 2012 was £331.7m (31 December 2011: £542.2m) and is forecast to be around £160m at 30 June 2013 (30 June 2012: £167.7m)
Mark Clare, Barratt's group chief executive, said: “This has been a good first half performance with a 113 percent increase in pre-tax profit. Our order book of more than £1.1 billion reflects the strong customer interest we have seen in the early weeks of the year, supported by both NewBuy and better lending conditions. We’re continuing to invest in new land to drive the future performance of the business and we expect a further significant improvement in profitability in this financial year.”