Barratt profits more than double
Housebuilder Barratt has seen a 113 per cent jump to £46.1m in pre-tax profit, alongside a dip in revenues and completions.
The results reinforce the impression that housebuilders are experiencing something of a renaissance after Bovis, Persimmon and Redrow all posted soaring profit rises.
Revenue was down around £2m to £951.1m, with completions down from 5,117 to 5,085.
However, private completions rose by 5.3 per cent to 4,241.
Operational profit was up 32.2 per cent to £80.8m, while operating margin rose to 8.5 per cent.
Net debt had shrunk significantly to £331.7m, down from £542.2m at the end of 2011, with forecasts predicting continued reductions.
The board has a target of hitting zero net debt on 30 June 2015.
There was also an increase in approvals to acquire higher margin land, with 9,320 plots on 67 sites.
Group chief executive Mark Clare said the results showed a “good first half performance”.
“Our order book of more than £1.1 billion reflects the strong customer interest we have seen in the early weeks of the year, supported by both NewBuy and better lending conditions.”
“We’re continuing to invest in new land to drive the future performance of the business and we expect a further significant improvement in profitability in this financial year.”