Residential property company Barratt Developments Plc (LON:BDEV) has reported an impressive start to the new fiscal year, with a 12.4% jump in on-year forward sales – this comes alongside strong activity by other players in the property development market.
The jump comes as the sales for the year just gone were up to £3.15 billion, a jump from £2.8 billion the year before.
While these figures are encouraging, net reservations per outlet have dipped from 0.74 to 0.72 per active outlet per week for the period between July and August. Similarly, the number of on-year new developments have dropped by 9 to 53, and the number of active outlets has dipped from 371 to 365.
Despite this, Barratt remain confident in delivering strong growth and operating performance for fiscal 2019, with targets reportedly set at between 3-5% volume growth per annum.
‘The group has started the new financial year in a strong position, with a good sales rate, healthy forward order book and customer demand supported by an attractive lending environment,’ said David Thomas, Chief Executive.
‘We are focused on delivering our medium term targets set out at our Full Year results, whilst maintaining our commitment to leading the industry in the design and quality of our homes and in customer service, which we believe is fundamental to our ongoing success.’
The firm’s shares are currently trading down 0.58% or 3p since trading began on Wednesday morning, at 511p. Analysts from Peel Hunt have reiterated their ‘Buy’ stance on Barratt stock, while Shore Capital analysts have reiterated their ‘Hold’ stance.