Barratt Developments posts half-year completions surge

14th Jan 2014 07:13

- Robust half-year results, improved market conditions- Completions up nearly 20 per cent - Increase in underlying sales prices across the groupHousebuilding firm Barratt Developments reported a robust set of half-year results, helped by the continued recovery of the housing market across all regions, adding that it is well placed for 2014 and beyond.Total completions increased 19% while net private reservations per active site rose 37%. Affordable completions totalled 751 units compared to 844 units in 2012."With improved market conditions and stronger consumer demand the group is seeing some increase in underlying sales prices across the group, largely in the form of reduced incentives. This has resulted in an improvement in net pricing on reservations in the period of around 150 to 200 basis points," Barratt explained in a company statement.The group saw a strong finish to the first half with private reservations increasing by 36.7% in the period to 0.67.Barratt sees opportunities in the land buying market across all divisions, and in the first six months approved the purchase of 11,394 plots, up from 9,320 plots the year before.Margins are expected to increase in line with expectations reflecting the higher proportion of completions from newer high margin land, growth in volumes, and the early benefit of lower incentives on completions, it added.Net debt as at December 31st 2013 is expected to be around £155m, down from £331.7m in 2012.CJ