Housebuilder expects pre-tax profit to rise by 45% to 拢565m in trading update to the city
Housebuilder Barratt says it expects pre-tax profit to increase by 45% for the year ending 30 June 2015.
In a trading update to the City this morning, the firm said it expects to post a record pre-tax profit of 拢565m, up from 拢391m the previous year.
Barratt also said it will report an 11% rise in housing completions when it publishes its full-year results in September. Total completions will be up to 16,447 from 14,838 the previous year, which the firm said reflects 鈥渟trong consumer demand and increased site numbers.鈥�
Of these 12,746 were private completions, up 7% on the previous year, and 2,853 were affordable completions 鈥� a 27% increase on the same period for 2014.
Forward sales, including joint ventures, are up 30% to 拢1.77bn from 拢1.37bn the previous year, while the average private selling price is up by 8% to 拢262,000 from 拢242,000 in the year ending 30 June 2014.
Commenting on the results, chief executive David Thomas (pictured) said: 鈥淭he housing market has remained strong and our operating performance has been very good.鈥�
Thomas said the firm has opened 176 new developments and committed 拢1 billion of land investment for future housing.
He added: 鈥淲e start the new financial year with very strong forward sales and are well on the way to meeting our FY17 targets of a 20% gross margin and at least 25% return on capital.鈥�
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