Barratt Developments expects pre-tax profit ahead of market expectations

Barratt Developments expects pre-tax profit ahead of market expectations

Barratt Developments (LON:BDEV) expects its annual pre-tax profit to be ahead of market expectations, the homebuilder said in a trading update on Wednesday.

The trading update comes ahead of the publication of its annual results later this year in September.

Barratt Developments said that profit before tax is expected to amount to roughly £910 million, ahead of market expectations and up on last year’s £835.5 million figure.

This profit figure is driven by continued strong progress from margin initiatives, a strong close to the year and further contribution from joint ventures.

Additionally, the homebuilder added that 17,856 total homes have been completed over the period, including joint ventures, just above the 17,579 homes completed in 2018.

Barratt Developments, which was awarded the HBF’s maximum five-star customer satisfaction rating for the tenth year in a row, added that it hade made good progress in its strategy to exit central London.

The homebuilder wants to focus instead on the strong growth opportunities that reside in the outer London area.

“It has been another very good year for the Group both operationally and financially,” Chief Executive David Thomas, said in a company statement.

“We have delivered our highest number of completions for eleven years, made further improvements to our margin and as the only major housebuilder to be awarded a 5 Star rating for customer satisfaction for ten years in a row, we continue to lead the industry in quality and customer service,” the Chief Executive added.

“We begin the new financial year with a strong forward order book and cash position, continued focus on the delivery of operational improvements across our business, and an ongoing commitment to deliver the highest quality homes across the country.”

Recent data from Nationwide reveals that UK house price growth in June remained weak as uncertainty surrounding the nation’s departure from the European Union prevails.

Shares in Barratt Developments plc (LON:BDEV) were up 0.45% as of 11:13 BST.