Barratt Developments ‘confident’ despite post-Brexit tumble

One of Britain’s biggest housebuilders has reported a strong performance in the year to June.

Barratt Developments, whose shares plummeted following Britain’s vote to leave the EU, saw completions swell by 5.3% or by 872 more projects, delivering the highest total in eight years.

The firm’s pre-tax profits also jumped 20.7% to £682.3m (2015: £565.5m) with revenue up 12.7% and operational profits 15.9% higher than last year.

David Thomas, Chief Executive of Barratt Developments PLC said:

“Barratt starts the new financial year in a good position with a strong balance sheet, good forward sales and an experienced management team.

“Whilst we continue to monitor market conditions closely, current trading trends are positive, and I remain confident in the fundamentals of the housing sector and of our business.”

The housebuilder is reporting a “positive” start to the new financial year with net private reservations per active outlet per average week from 1 July 2016 of 0.75 (2015: 0.71) and total forward sales including joint ventures by 4 September up 4.1% compared to last year, at £2,416.5m (6 September 2015: £2,321.9m).

Barratt’s report will further boost the UK construction industry after on Monday the Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI®) showed an increase in the August output to higher levels than anticipated by economists.