Interim Results

Barratt Developments PLC
24 March 2004



                            BARRATT DEVELOPMENTS PLC

                     INTERIM RESULTS TO 31ST DECEMBER 2003

                              CHAIRMAN'S STATEMENT

This has been another outstanding period for the Group. We have achieved record
completions, turnover, margins and profits - and our 12th year of uninterrupted
growth.

The main features of the results for the half year ended 31st December 2003 are
as follows:-


  • Pre-tax profit amounted to £142.6m against £105.3m the previous year, an
    increase of 35%.

  • Basic earnings per share amounted to 43.6p against 32.5p the previous
    year, an increase of 34%.

  • An interim dividend of 6.9p per share will be paid, on 21st May 2004, to
    shareholders on the register on 30th April 2004, against 4.94p the previous
    year, an increase of 39.7%, 6.3 times covered. This rate of increase is not
    indicative of the total dividend for the year, containing as it does a
    significant element of re-balancing of the dividend between the interim and
    final payments. In the absence of unforeseen circumstances, we would expect
    to recommend an increase in the total dividend for the year in the region of
    20%.

  • UK completions rose to 6,705 homes, up 10%, at an average selling price
    of £161,700, up 11%.

  • Turnover rose to £1,174.5m against £950.5m the previous year, an
    increase of 24%.

  • UK land stocks increased by 1,345 plots over and above usage to 46,645
    plots.

  • Net cash in hand amounted to £25m, highlighting continued strong cash
    management. This strong balance sheet position was achieved notwithstanding
    a £125.6m increased investment in land stocks and work in progress.

  • Return on average capital employed was 30%, yet again amongst the
    highest in the industry.

  • Our Southern California operation made further excellent progress.
    Operating profits increased by 137% to £8.3m on turnover up by £26.4m to
    £82.4m from 353 completions. Local market conditions remain favourable with
    high levels of employment, good affordability and strong demand. We are
    confident of another successful year.


The strength of our organic growth strategy continues to be demonstrated with
improvements in both volumes and profits. Both elements are important to us. The
UK housebuild margin improvement, up from 12.3% last time to 13.3% has been
achieved whilst continuing to grow volume and market share. We are confident we
can achieve margin growth in the second half and achieve growth in both volume
and margin going forward.

There have been two modest interest rate increases since July but demand
continues to be robust. Further modest increases should help to stabilise and
sustain the housing market going forward. All of our regional markets are sound
and achieving sales improvements year on year.

We maintain a diverse product range across all market sectors and, together with
a wide geographic spread, this enables us to provide homes throughout Great
Britain, currently priced from around £80,000 to £1.7m. We also remain industry
leaders with a wealth of experience in inner city and urban renewal, as well as
social housing partnerships. Nearly 80% of our homes nationwide are now built on
brownfield sites, comfortably exceeding the Government's regeneration target.
These strengths also provide us with the widest range of land buying and
development opportunities. We are, therefore, very well positioned to maximise
on the Government's emphasis on the regeneration of our towns and cities.

We continued to secure quality sites in locations of proven demand. During the
half year we acquired 8,050 plots, 20% more than we used, increasing our land
stocks to 46,645 plots; one of the best quality land banks in the industry. A
further 9,700 plots are agreed subject to contract giving an overall land bank
of 56,345 plots. Despite a very difficult planning environment, we have again
been highly successful in winning approvals for 8,760 plots on 109 sites in the
period, bringing the total for 2003 to 18,600 plots on 242 sites.

The quality of the product and service we provide to our buyers was again
recognised when Barratt was judged Best Large Housebuilder in the prestigious
What House? awards. We also won a record number of NHBC Awards for quality
workmanship. In addition, we won 12 Greenleaf environmental awards, more than
any other builder for the second year running. Our product in California has
also been recognised, winning two American national design awards for the first
time.

We continue to address the national shortage of skilled labour and are already
industry leaders in apprentice training, with 500 young people currently
receiving instruction in a range of skills. Our new Graduate Trainee Scheme has
also started well with 50 entrants now embarked on fast-track careers.

Turning to current performance and the outlook for the future, forward sales are
strong and now stand at a record £833m. When taken with completions to date,
this secures 93% of our full year's projection. The market remains robust,
supported by high levels of employment and low interest rates and continues to
be underpinned by severely restricted supply due to the ongoing delays in the
planning system. We benefit enormously from our total geographic spread and wide
product range. We have outstanding urban regeneration expertise and a high
quality land bank. I am confident that Barratt will produce further excellent
results and is very well positioned for the future.




Charles Toner
Chairman

24th March 2004



For further information please contact:

Mr D A Pretty, Chief Executive/          OR     Ms C Lynch/
Mr C A Dearlove, Finance Director               Mr T Garrett

Tel: [phone] (24th March)                 Tel: [phone]
     0191 286 6811 (thereafter)                 (Weber Shandwick Square Mile)

The financial analysts' presentation slides will be available on the Barratt
corporate website: www.barratt-investor-relations.co.uk from 11.00am today,
together with photographic images of Charles Toner, David Pretty and a selection
of Barratt developments.

Further copies of the announcement can be obtained from the Company Secretary's
office at:

Barratt Developments PLC
Wingrove House
Ponteland Road
Newcastle upon Tyne NE5 3DP


The following are the unaudited results of the Group for the half year ended
31st December 2003.
--------------------------------------------------------------------------------
1. Group Profit and Loss Account Half year ended  Half year ended   Year ended
                                   31st December    31st December    30th June
                                            2003             2002         2003
                                              £m               £m           £m
--------------------------------------------------------------------------------
Group Turnover                           1,174.5            950.5      2,171.0
================================================================================

Operating profit                           147.6            109.5        298.7

Net interest payable                        (5.0)            (4.2)       (10.0)
--------------------------------------------------------------------------------
Profit on ordinary activities 
before taxation                            142.6            105.3        288.7
Taxation                                   (40.7)           (30.0)       (82.3)
--------------------------------------------------------------------------------
Profit on ordinary activities
after taxation                             101.9             75.3        206.4
Dividends                                  (16.1)           (11.4)       (40.2)
--------------------------------------------------------------------------------
Retained profit                             85.8             63.9        166.2
================================================================================             
Earnings per share - basic                  43.6p            32.5p        89.1p
================================================================================
Earnings per share - diluted                43.3p            32.2p        88.2p
================================================================================
Dividend per share                          6.90p            4.94p       17.26p
================================================================================
Dividend cover                               6.3x             6.6x         5.2x
================================================================================

All activities of the group are continuing.

--------------------------------------------------------------------------------
2. Statement of Total Recognised  Half year ended   Half year ended  Year ended
   Gains and Losses                 31st December     31st December   30th June
                                             2003              2002        2003
                                               £m                £m          £m
--------------------------------------------------------------------------------                     
Profit on ordinary activities
after taxation                              101.9              75.3       206.4
Currency translation differences 
on foreign currency net investments          (3.4)             (2.0)       (3.0)
--------------------------------------------------------------------------------
Total gains and losses
recognised in period                         98.5              73.3       203.4
================================================================================
--------------------------------------------------------------------------------                                        
3. Group Balance Sheet                         At               At           At
                                    31st December    31st December    30th June
                                             2003             2002         2003
                                                          Restated     Restated
                                               £m               £m           £m
--------------------------------------------------------------------------------
Fixed assets                                 
    Tangible assets                          11.2              7.4         11.0
--------------------------------------------------------------------------------
                                             11.2              7.4         11.0
================================================================================
Current assets                               
    Properties held for sale                  8.5              6.6          7.7                
    Stocks                                1,824.1          1,599.4      1,730.7 
    Debtors due within one year              39.8             26.8         37.0   
    Debtors due after more than one
    year                                      1.2              0.6          0.5                       
    Bank and cash                           182.8             12.4        121.4
--------------------------------------------------------------------------------
                                          2,056.4          1,645.8      1,897.3
   
   
Current liabilities                        
    Creditors due within one year          (968.0)          (749.5)      (922.4)
--------------------------------------------------------------------------------
Net current assets                        1,088.4            896.3        974.9
================================================================================
Total assets less current liabilities     1,099.6            903.7        985.9

Creditors due after more than one year     (105.5)           (99.7)       (77.0)
--------------------------------------------------------------------------------

Net assets                                  994.1            804.0        908.9
================================================================================

Capital and reserves                      
    Share capital                            23.9             23.8         23.9
    Share premium                           189.1            185.5        187.1
    Profit retained                         781.1            594.7        697.9
--------------------------------------------------------------------------------
Equity shareholders' funds                  994.1            804.0        908.9
================================================================================
 
Net assets per share                          416p             338p         381p
================================================================================

Gearing                                         -               10%          -
================================================================================

--------------------------------------------------------------------------------

4. Group Cash Flow Statement      Half year ended  Half year ended   Year ended
                                    31st December    31st December    30th June
                                             2003             2002         2003
                                               £m               £m           £m
--------------------------------------------------------------------------------
Net cash inflow/(outflow)
from operating activities                   
    Operating profit                        147.6            109.5        298.7 
    Increase in stocks                     (100.6)          (153.0)      (286.3)
    Increase in debtors                      (2.8)            (0.7)        (5.6)
    (Decrease)/increase in creditors        (26.6)           (72.3)       106.6                          
    Other non cash movements                 (0.4)            (0.1)        (0.8)
--------------------------------------------------------------------------------
                                             17.2           (116.6)       112.6

Returns on investments and                  
servicing of finance                         (5.5)            (3.6)       (10.3)
Taxation                                    (43.8)           (29.5)       (77.7)
Capital expenditure and financial 
investment                                    0.2             (5.4)        (7.5)   
Equity dividends paid                       (28.8)           (22.9)       (34.3)
--------------------------------------------------------------------------------
Cash outflow before financing               (60.7)          (178.0)       (17.2)
Financing                                     2.9              0.4         12.4
--------------------------------------------------------------------------------
Decrease in cash                            (57.8)          (177.6)        (4.8)
================================================================================
Reconciliation of net cash flow 
to movement in net debt                    
    Decrease in net cash, including 
    overdraft                               (57.8)          (177.6)        (4.8)              
    Cash flow from increase in debt          (0.8)               -        (10.3)
--------------------------------------------------------------------------------
Change in net debt resulting
from cashflows                              (58.6)         (177.6)        (15.1)
Exchange movements                            2.0             1.6           2.1
--------------------------------------------------------------------------------
Movement in net debt in the period          (56.6)         (176.0)        (13.0)
Net funds at 1st July                        81.6            94.6          94.6
--------------------------------------------------------------------------------
Net funds/(debt) at 31st
December/30th June                           25.0           (81.4)         81.6
================================================================================

The financial information set out above does not constitute statutory accounts
within the meaning of the Companies Act 1985. The figures for the year to 30th
June 2003 are an extract from the full accounts for that year which have been
filed with the Registrar of Companies and on which the auditors gave an
unqualified opinion.

The interim financial information has been prepared on the basis of accounting
policies adopted for the year ended 30th June 2003, other than as detailed
below. These policies are set out in the company's Annual Report and Accounts.

The Group has adopted Urgent Issues Task Force Abstract 38: 'Accounting for ESOP
trusts' for the 2003 interim results. As a result of the implementation of the
requirements of this Abstract, shares in the company held through an employee
share scheme trust which were previously reported as investments are now
recorded as a deduction from equity shareholders' funds. At 31st December 2003,
the carrying value of these shares was £15.0m which has been set against the
profit and loss reserve in the balance sheet. The comparative figures for
investments and profit and loss reserve have been amended to reflect the change
in treatment. The comparative figures have been restated in a prior year
adjustment to reflect this changed treatment such that shareholders' funds at
30th June 2003 and 31st December 2002 have been reduced by £15.8m and £17.7m
respectively.



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