Barratt Developments eyes 'significant' year as pipeline nears six-year high

14th Jan 2015 07:34

Following updates from several housebuilders since the start of the year, Barratt Developments followed suit and reported a strong performance in the six months to the end of December, saying it was on track for another "significant improvement" in its financial performance for the full year.The FTSE 250 housebuilder, which said the 90 new sites it was poised to open would give it the highest average number of developments for six years, stepped up the total number of completions 12.5% to 6,971 and its total average selling price rose 8.4% to £229,000 per house.Margins were said to be increasing in line with expectations thanks to a higher proportion of completions from newer higher margin land, growth in volumes, operational improvements, and the benefit from underlying house price inflation net of cost inflation.The company recorded total forward sales on New Year's Eve up 17.1% against strong prior year figures, with a value of £1.68bn.Chief executive Mark Clare said: "We are on track for another significant improvement in our financial performance for the full year as we continue to operate in a disciplined way, building the highest quality homes in places people want to live.He said Barratt's significant investment programme in new land would see around 90 new sites opened in the next six months, which will give the company the highest average number of developments for six years and deliver another 13,500 new homes.These include the re-development of the former Terry's chocolate factory in York and the Hollygate Park development in the former Cotgrave colliery in Nottinghamshire.The group returned to a more balanced delivery profile in terms of both revenue and profit, Clare said, and given first half completions, management expect to be close to achieving its target of 45% of completions in the first half for the year to June 2015.Consumer demand across all of the group's regions remained robust.