Barratt Developments PLC
24 July 2006
BARRATT DEVELOPMENTS PLC
TRADING UPDATE
24th July 2006
Barratt Developments PLC is today issuing an update on trading for the year
ended 30th June 2006, ahead of Preliminary results which will be announced on
27th September 2006.
We expect to confirm our 14th consecutive year of growth with further increases
in completions and continuing pre-tax profit. In addition, we have again
increased our investment in land whilst maintaining strong cash disciplines,
with average gearing of 11% throughout the financial year and net cash of circa.
£38m at the year end.
Total completions increased by 1.8% to 14,601 (2005: 14,351) at an average
selling price of £165,800, down 3.7% on 2005 as a result of an increased
proportion of social housing. Private completions were 5.5% lower at 11,899, at
an increased average selling price of £182,800, up 0.4%. Social housing
completions increased by 53.5% to 2,702, at an average selling price of £90,500,
down 11% due to geographic mix.
As we expected, a range of incentives and marketing support has been required in
a steady but competitive marketplace. However, as a result of overhead
efficiencies and strict control of building costs we expect to deliver Group
pre-tax profit in line with City expectations.
We again strengthened the size and quality of our land bank which has now
increased to c.66,500 plots (2005: 61,000), including 7,500 plots (2005: 7,000
plots) agreed subject to contract. This equates to 4.5 years' supply at current
volumes (2005 4.3 years).
Overall, buyer confidence improved over the year and remains steady with selling
prices having risen in line with incomes. As a result of a good sales
performance, total reservations are now 8% better than a year ago and we have
entered our new financial year with a strong forward order book. Forward sales
at 1st July increased to £845m, up 9%, the second highest level achieved.
The fundamentals of the housing market remain sound and we expect it to continue
to perform satisfactorily in the year ahead and provide a solid foundation for
the future development of the business. Whilst we expect to operate in a
competitive market, and some uncertainty exists as to future interest rates, we
remain confident of our ability to compete successfully. The strength of our
forward sales, our national geographic spread and product range, combined with
our urban regeneration and social housing expertise, leaves us well placed for
the future.
Enquiries:- Weber Shandwick Square Mile
Barratt Developments PLC Chris Lynch/
David Pretty, Chief Executive/ Terry Garrett
Mark Pain, Finance Director Tel: 0207 067 0700
Tel: 0208 326 7240
Note to editors:
Barratt Developments PLC is Britain's best-known house builder and has built
more homes in the last decade than any other.
We have a network of 7 regions and 33 divisions operating throughout Britain. We
directly employ over 4,400 people including 550 apprentices and 50 graduate
trainees.
Our developments span the length and breadth of Britain developing on over 450
sites, helping to meet housing demand in towns, cities and rural areas. Barratt
is at the forefront of urban regeneration with over 80% of our developments
utilising brownfield land. We are also one of Britain's leading suppliers of
social housing.
This information is provided by RNS
The company news service from the London Stock Exchange
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