Barratt Developments has delivered its highest number of completions for 11 years, as the housebuilders trading update for the year ended 30 June 2019 is revealed
Barratt Developments experienced a record full year, with a total of 17,856 homes completed, and wholly owned completions up by 2.6% to 17,111 homes.
The housebuilder revealed its profit before tax is expected to be ahead of market expectations at around £910m, an improvement on £835.5m in 2018. Barratt Developments associated this to strong progress in margin initiatives, a strong close to the year and additional contribution from joint ventures.
Barratt was also awarded the HBF’s maximum 5 Star customer satisfaction rating for the tenth year in a row.
David Thomas, chief executive of Barratt Developments, said: “It has been another very good year for the group both operationally and financially.
“We have delivered our highest number of completions for eleven years, made further improvements to our margin and as the only major housebuilder to be awarded a 5 Star rating for customer satisfaction for ten years in a row, we continue to lead the industry in quality and customer service.
“We begin the new financial year with a strong forward order book and cash position, continued focus on the delivery of operational improvements across our business, and an ongoing commitment to deliver the highest quality homes across the country.”
The housebuilder said it expected its FY19 performance to be ahead of current market expectations driven by continued improvements from margin initiatives.
Barratt remains focused on driving further margin improvement and delivering its medium-term targets of volume growth of 3-5% over the medium term, land acquisition at a minimum 23% gross margin and a minimum 25% ROCE.
Whilst there remains some economic and political uncertainty, the group believes it is in a strong position.
Barratt Developments will update on current trading, guidance for FY20 and progress against its medium-term targets alongside full-year results announcement on 4 September 2019.