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Barratt Developments FY20 Completion Volume Down; Forward Sales Rise - Quick Facts

UK home builder Barratt Developments Plc. (BDEV.L) reported Monday that completion volumes for the year ended June 30 were 12,6041 total homes including joint ventures, down from 17,856 homes last year, hurt by Covid-19 lockdown period.

During the year, the company delivered 9,568 private home completions, 2,466 affordable home completions and 570 JV home completions. This is compared to last year's 13,533 private homes, 3,578 affordable homes and 745 JV homes, respectively.

Total average selling price or ASP for the year was about 280 thousand pounds, up from 274.4 thousand pounds last year. Private ASP was at about 311 thousand pounds, down from 312 thousand pounds last year.

The company noted that it traded well across the country up to March 22 and was on track to meet its medium term targets. But, had to temporarily close all sales centres, construction sites and offices by March 27 due to Covid-19 spread.

By June 30, the company reopened all operational sites and all employees, other than those shielding, have now recommenced working in the business

The company reported high customer interest levels since sales centres reopened, with net private reservations per active outlet per average week of 0.63 for the last six weeks, compared to 0.69 last year.

The sales rate for the full year was 0.60, down from 0.70.

Forward order book is strong with total forward sales, including Jvs, as of June 30, of 14,326 homes, up from 11,419 homes last year. Forward sales value was 3.25 billion pounds, up from 2.60 billion pounds a year ago.

David Thomas, Chief Executive, said, "Prior to the COVID-19 pandemic, the Group was delivering a strong year of progress on both volume and margin. The pandemic has caused significant disruption,... Now, with our construction sites operational across the UK, we begin the new financial year with cautious optimism supported by our strong forward order book and our well capitalised balance sheet."

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