Barratt Developments completions return to pre-Covid levels

Barratt Developments shares dipped 0.8% to 418.6p in early morning trading on Wednesday, after announcing a statutory pre-tax profit of £642 million in FY 2022 against £812 million the last year.

The company highlighted revenues of £5.2 billion in FY 2022 against £4.8 billion the last year.

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Barratt Developments reported total home completions of 17,908 compared to 17,243, marking a recovery to pre-pandemic levels. The group confirmed a targeted 3% to 5% growth in total home completions in FY 2023, representing between 18,400 and 18,800 houses.

The firm mentioned a statutory profit from operations decline to £646 million from £811 million, along with an operating margin slide to 12.3% compared to 16.9%.

Barratt Developments announced an adjusted profit from operations rise to £1 billion from £919 million, alongside an adjusted operating profit margin of 20% compared to 19.1%.

The group noted a basic EPS fall to 50.6p against 64.9p year-on-year, and an adjusted EPS of 83p compared to 73.5p.

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The company also highlighted a ROCE of 30% against 27.8% in FY 2022.

Barratt Developments confirmed net cash of £1.1 billion from £1.3 billion the year before.

“This has been a year of fantastic progress, with completions recovering to pre-pandemic levels and excellent productivity across our sites,” said Barratt Developments CEO David Thomas.

“Our financial strength and operational excellence position us well to navigate the macro-economic uncertainties ahead.”

“I’d like to thank our employees, sub-contractors and supply chain partners for helping us to continue to deliver the industry-leading, sustainable homes and developments our customers want and the UK needs.”

Barratt Developments hiked its dividend 25.5% to 36.9p against 29.4p in the previous year.

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