Barratt Developments Sees Full Year Results In Line

Barratt Developments PLC (BDEV), engaged in housebuilding and commercial development businesses on Thursday said it expects to deliver full year results in line with the Board's expectations. The company said it remained focused on the medium-term target of 20,000 homes a year.

The housebuilder released a trading update for the period 1 January 2022 to 1 May 2022 and said it was seeing huge demand across the country.

Net private reservations per active outlet per average week improved to 0.93, from 0.83 in the corresponding period of the previous year.

Construction activity as indicated by equivalent homes (including JVs) built per average week increased to 362 in the current period, from 321 in the prior period.

Total forward sales (including JVs) as at 1 May 2022 were 15,821 homes, 6.6 percent ahead of 14,846 homes, recorded as on May 2,2021.

Total forward sales (including JVs) at 1 May 2022 stood at 4,383.3 million pounds versus 3,696.3 million pounds as on 2 May 2021.

During the current period, the company delivered 4,625 total home completions versus 4481 in the prior period. The total home completions in the financial year to date however dropped to 12,692 from 13,558 in the year-ago period which is attributed to the tapering of the Help to Buy scheme and the original stamp duty holiday deadline, which fell within the comparative period in 2021.

The U.K. based company said it was on track to deliver total home completions of between 18,000 and 18,250 homes including around 750 JV home completions. This would imply a year on year growth of between 4% and 6%, resulting in a trading outlook for the full year in line with the Board's previous expectations.

Shares of Barratt Developments closed Wednesday's trading at 484.40 pounds, down 12.50 pounds or 2.52 percent from the previous close.

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