House builder Barratts expects profits to rise by 20%

Barratt’s new home completions in the year to the end of June rose by 5.3% to 17,319, the firm said in a trading statement.

Pre-tax profits are expected to be up 20% to approximately £680m, compared with £565.5m last year.

The average selling price of a home was up more than 10% to around £290,000.

Barratt CEO David Thomas said: “We have delivered another strong performance for the year.

“Following the EU referendum, it is too early to say what the impact of the uncertainty facing the UK economy will be. The sector continues to receive focused government support, mortgage availability is good and there remains an under-supply of new homes.

“With a strong balance sheet and forward order book, and industry-leading quality and customer service, we remain confident in the positive fundamentals of both the housing sector and our business.”

The firm said it had contingency plans in place post-Brexit, suggesting it might mean drawing in its horns on new sites.

Barratt had “taken appropriate measures to reduce our risk, such as reassessing land approvals, as we continue to monitor the market”.

Written by: Houseladder