Housebuilder says performance driven by highest level of completions in 9 years
Companies: Barratt Developments PLC
Housebuilder Barratt Developments has said it expects to see its highest rate of completions in 9 years this year, as it confirms that pre-tax profit should be at the top-end of consensus when reported on 30 June.
Total completions are expected to be over 17,000 for the year, which would be the highest level of completions the firm has had since the financial crash in 2008. As a result, FY17 profit before tax should be at the top of the range of current analyst estimates, around £675-£733m.
In further good news for the company, total forward sales are at record levels, up by 12.7% by 7 May to £3.2bn. The firm said its net cash position is expected to be roughly £600m by 30 June.
CEO David Thomas said it had been another strong period operationally and financially for the Group, adding that it has been the Board's controlled approach to growth that has helped it deliver 17,350 competitions in the year:
"This has been another strong period both operationally and financially for the Group. We remain firmly committed to delivering industry leading build quality and customer service, recognised by the award of the Home Builder Federation's maximum five star customer satisfaction rating for the eighth consecutive year."
According to today's trading update, the company is on track to achieve its target of a minimum ROCE of 25%, which is ahead of the industry average of 14.6% and the wider market's 3.6% average.
