Barratt Developments PLC Delivered a strong operational and financial performance

Barratt Developments PLC (LON:BDEV) today announced half year results for the six month period ended 31 December 2018

£m unless otherwise stated1,2

Half year ended 31 December 2018

Half year ended 31 December 2017

 

Change

Total completions (units)3

7,622

7,324

4.1%

Revenue

2,132.0

1,988.0

7.2%

Gross margin (%)4

22.6

20.6

200 bps

Profit from operations

409.7

355.2

15.3%

Operating margin (%)4

19.2

17.9

130 bps

Profit before tax

408.0

342.7

19.1%

Basic earnings per share (pence)

32.7

27.1

20.7%

Interim dividend per share (pence)

9.6

8.6

11.6%

ROCE (%)4

29.5

28.3

120 bps

Tangible net assets per share (pence)4

 360.8

333.4

8.2%

Net cash4

387.7

165.9

133.7%

 

Highlights

· Britain’s largest housebuilder with total completions3 for the first half at 7,622 homes, up 4.1%

· First half net private reservations of 0.64 (2017: 0.68) per active outlet per week

· Good progress on medium term targets including 200 bps improvement in gross margin to 22.6%

· Continued industry-leading customer satisfaction and build quality

· Our largest single charitable donation, £750,000, to RBLI to support the construction of a Centenary Village to provide crucial housing support to ex-servicemen and women

Current trading

· Net private reservations of 0.74 (2018: 0.78) per active outlet per average week

· Total forward sales3 up 7.3% to £3,021.0m as at 3 February 2019 (4 February 2018: £2,816.2m)

· Outlook for the full year remains in line with the Board’s expectations

Capital Return Plan

· Further extended Capital Return Plan with ongoing commitment to ordinary dividend cover at 2.5 times and intention to pay special returns of £175m in November 2019 and £175m in November 2020

Commenting on the results David Thomas, Chief Executive of Barratt Developments PLC, said:

“The Group has delivered a strong operational and financial performance across the half year. As Britain’s largest housebuilder, we are helping to address the country’s housing shortage by building high quality homes, growing volumes, creating jobs and supporting economic growth, whilst continuing to lead the industry in quality and customer service.

‘Operating efficiencies are delivering improved margins and our controlled and disciplined business model means we have a high-quality land bank, strong forward sales, excellent financial position and efficient cash flow generation.

‘Whilst we continue to monitor market conditions closely, current trading is in line with our expectations and we are confident of delivering a good financial and operational performance in FY19.”