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Barratt Developments Home Completions Up; Backs Medium Term Volume Growth View

UK home builder Barratt Developments Plc. (BDEV.L), in its trading update for the 15 week period from July 1 to October 13, reported Wednesday that it has started the new financial year well with good customer demand.

Based on current market conditions, the company continues to expect to grow volume towards the lower end of medium term target range this year.

The company said it is focused to reach volume growth in wholly owned home completions of 3 - 5% per annum over the medium term, land acquisition at a minimum 23% gross margin and a minimum 25% ROCE.

During the 15-week period, the company delivered 3,252 home completions, including JVs, up 14 percent from 2,852 home completions last year.

Total forward sales, including JVs, as at October 13 comprised 12,963 homes at a value of 3.07 billion pounds, compared to 12,903 homes at a value of 3.15 billion pounds a year ago.

Sales rate in the period was 0.72 net private reservations per active outlet per average week.

The company reported that 26 new developments launched in the period, including Jvs, down from 53 last year.

David Thomas, Chief Executive said, "Whilst there is economic and political uncertainty, we continue to be disciplined and have a strong balance sheet and cash position which we believe provide us with the resilience and flexibility to react to potential changes in the operating environment in FY20 and beyond."

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