Half year pre-tax profits up 162% at Barratt Developments

Newcastle-founded homebuilder Barratt Developments has posted a strong start to its financial year, with pre-tax profits up to £120.4m

Housebuilder Barratt Developments Plc has reported strong trading
Barratts Developments has posted a very strong start to its financial year with pre-tax profits up 162%

Property business Barratts Developments has posted a very strong start to its financial year with pre-tax profits up 162%.

The Newcastle-founded housebuilder said it has seen significant increase in output, with the group responding quickly to uplift in consumer demand.

It said there has been a strong, broad-based recovery with higher sales rates across all areas of the country.

It also announced its recruitment target for apprentices, graduates and trainees has been increased to 1,100 over three years.

Total completions for the six months were 6,195, up from the 5,194 for the same period the previous year, and a lift of 19%.

Revenues now total £1,264.9m, a 33% increase on the £951.1m posted in the previous period.

Pre-tax profits rose a whopping 162%, from £45.9m to £120.4m.

Mark Clare, group chief executive of Barratt Developments said: “Underpinning this strong performance is an improved market and a business model that is delivering homes that people want to buy in places they want to live.

“Our disciplined approach means that we have been able to increase the number of new homes we are building whilst driving up profitability, return on capital and dividends.

“Our momentum has continued into 2014 with sales rates well above last year and forward sales of £1.7bn. We are now expanding our recruitment programme to 1,100 apprentices, graduates and trainees, demonstrating our commitment to further controlled growth.”

The firm said it expects to deliver full-year profit towards the top end of the range of current analyst estimates.

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