BARRATT Developments has issued a trading update for the year ended 30 June 2023 in which the housebuilder has hailed a ‘strong’ operational and financial performance.
The update was released ahead of publication of the firm’s annual results on 6 September 2023.
Chief executive David Thomas said, “Whilst the trading backdrop has become more challenging in recent months, with many of our customers facing significant cost of living pressures, we have responded decisively – increasing our reservations into the private rental sector, using incentives for customers in a disciplined way, and flexing our build activity, land-buying and operating costs to reflect market conditions.
“As a result, we enter the new financial year in a robust financial position with a solid forward order book and we are ready to respond to any further changes in the housing market.”
Total home completions stand at 17,206 (FY22: 17,908) including 828 from joint ventures (FY22: 746).
Barratt added that adjusted profit before tax is anticipated to be in line with current market expectations. This is stated before total adjusted items (including JVs) of around £180 million (FY22: £412.5m).
Balance sheet strength has been maintained with year-end net cash of circa £1,070m (30 June 2022: £1,138.6m) after completing the £200m share buyback and land spend of circa £820m during the year.
A ‘solid’ order book for FY24 includes total forward sales (including JVs) at 30 June 2023 of 8,995 homes (30 June 2022: 13,579) at a value of £2,223.4m (30 June 2022: £3,622.3m) with the order book ‘normalising’ to more typical levels of next year’s completions.
Barratt has also been awarded 96 Pride in the Job Awards for site management in the June 2023 NHBC Awards, more than any other housebuilder for the 19th consecutive year.
