Barratt Developments share price: Group unveils half-year results

Half year profit before tax rises 8.8%

Barratt Developments share price: Group unveils half-year results

Barratt Developments (LON:BDEV) has updated the market on its half-year performance this morning.

Highlights from the company statement:

Highlights

· Completions outside of London at highest level for nine years; London completions were in line with planned build programme, with significant uplift expected on wholly owned sites in the second half

· Half year profit before tax for the period of £321.0m, up 8.8%

· ROCE increased by 1.5 ppts to 27.0%, reflecting our fast build and sell model

· Maintained industry-leading customer satisfaction and build quality

Current Trading

· Completion growth expected in the second half with record total forward sales (including JV's) as at 19 February 2017 up 17.0% at £3,018.2m

· Net private reservations per active outlet per average week of 0.77 (2016: 0.76)

Capital Return Plan

· Improved and extended Capital Return Plan with ordinary dividend cover re-set at 2.5 times and special dividends of £175m in November 2017 and November 2018

Commenting on the results David Thomas, Chief Executive of Barratt Developments PLC said:

"As we reported in the January trading update, we have delivered another very strong first half performance, pre-tax profits were up nearly 9% and completions outside of London at their highest level in nine years.

Whilst we have increased volumes across the UK by 55% in the last five financial years, we have maintained our commitment to build quality and customer service and we are the only major housebuilder with the HBF 5 Star Customer Satisfaction Award.

With a record forward order book, strong consumer demand and a positive lending backdrop, we remain confident in our outlook for the full year. Our confidence in the business going forward is reflected in the improved and extended Capital Return Plan."

As of 07:10 GMT, Wednesday, 22 February, Barratt Developments Plc share price is 517.12p.

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