BARRATT Developments PLC (the ‘Group’) has issued a trading update for the year ended 30 June 2024 (the ‘year’ and ‘FY24’), ahead of publication of its annual results on 4 September 2024. Comparatives are to the year ended 30 June 2023 (‘FY23’) unless otherwise stated.
Highlights:
- Net private reservations per active outlet per week of 0.58 (FY23: 0.55) including a contribution of 0.08 (FY23: 0.10) from the private rental sector and additional sales to registered providers of social housing.
- Total home completions at the upper end of our guidance range for FY24 at 14,004 (FY23: 17,206) including 536 from JVs (FY23: 828).
- Total forward sales (including JVs) at 30 June 2024 of 7,239 homes (30 June 2023: 8,995) at a value of £1,912.3m (30 June 2023: £2,223.4m), in line with expectations.
- Adjusted profit before tax is anticipated to be slightly ahead of previous expectations.
- Legacy property charges of c. £192m (FY23: £179.2m) recognised as adjusted items, including the first half charge of £61.9m and c. £130m in H2 relating to legacy property issues previously disclosed.
- Strong balance sheet position with year-end net cash of c. £865m (30 June 2023: £1,069.4m) which positions the company well as land market activity increases.
- Given the expected profile of sales outlet openings in FY25, anticipate total home completions in a range of 13,000 to 13,500 in FY25, including c. 600 completions from our JVs.
- Awarded 89 Pride in the Job Awards for outstanding site management in the 2024 NHBC Awards, more than any other housebuilder for the 20th consecutive year.
- The combination of Barratt and Redrow was approved by both sets of shareholders on 15 May 2024. The CMA’s Phase 1 review commenced on 13 June 2024 and we are co-operating fully with their enquiries, which we expect will be decided by 8 August 2024.
Douglas McLeod, Regional Managing Director Barratt Developments Scotland, commented:
“During another year of economic and political uncertainty, we have delivered a strong operational performance, reflecting the exceptional work of our employees, sub-contractors and suppliers, and their commitment to delivering high quality homes that people want to live in.
Whilst we continue to navigate a challenging macroeconomic backdrop, we are delivering industry leading build quality, sustainability and customer service. Combined with the strength of our balance sheet, this has ensured we remain resilient and responsive through the cycle.
Looking ahead, we are pleased that the proposed combination with Redrow was strongly supported by both sets of shareholders in the Spring and, subject to the CMA’s approval, we look forward to bringing together two businesses to create an exceptional UK housebuilder ensuring we are well-positioned for the future.”
