Barratt Developments (LON:BDEV) has updated the market on its half-year performance this morning.
Highlights from the company statement:
· 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
· 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."