During its year ending June 30 2018, Barratt achieved its highest number of completions for a decade at 17,579 completions in total, although this was a modest 1.1% increase on FY 2017. Private completions rose 1% to 13,439.
Barratt’s total average selling price lifted 5% to £288,900 with the private ASP also increasing 5% to £328,800.
Profit before tax rose 9.2% to £835.5 million, with revenue improving 4.8% to £4,874.8 million. Barratt’s operating margin increased 50 basis points to 17.7% as its margin initiatives “have started to deliver”.
The firm said that its full year sales rate was in line with the prior year at 0.72 net private reservations per active outlet per week in the full year and 0.77 (2017: 0.76) in the second half. During the year, it operated from an average of 380 active outlets against 2017’s 377.
Forward sales as of September 2 2018 were up 11.1% against the equivalent period in 2017 to £3,054.0 million. Barratt’s net private reservations per active outlet per average week from July 1 were in line with the prior year at 0.75.
David Thomas, Barratt’s ceo, said: "The group has had another outstanding year delivering a strong operational and financial performance, and our highest volumes in a decade. As the UK's largest housebuilder we are helping to address the country's housing shortage - creating jobs and supporting economic growth whilst continuing to lead the industry in quality and customer service.”
Reporting on the period from May 1 to August 31 2018, Berkeley said that conditions in the London and south east market had remained unchanged since it announced its full year results in June. “Pricing has remained robust as there is demand for good quality, well located homes that enhance communities and meet the local housing need,” its statement read.
Berkeley continued: “In essence, this is a market that lacks urgency and London remains constrained by high transaction costs, restrictive income multiple limits on mortgage borrowing and prevailing economic uncertainty, accentuated by Brexit. These headwinds affect all segments of the market from home movers to downsizers and investors alike.”
Despite the tough market conditions, Berkeley said it had acquired five new sites in the period and anticipated that net cash at the half year would be above its year-end position of £687.3 million.
The London-based housebuilder said that its strong financial position “coupled with the visibility provided by its forward sales and landbank” meant the board could reaffirm its guidance to deliver at least £3.375 billion of pre-tax profits for the five year period from May 1 2016 to April 30 2021, with at least £1.575 billion of pre-tax profit to be delivered in the two years ending April 30 2019.
