Barratt share price: Company updates market on first-half performance

on Jan 14, 2015
Updated: Oct 21, 2019

Barratt Developments (LON:BDEV) today issued a trading update in respect of the six months ended 31 December 2014, ahead of its half year results announcement on 25 February 2015.

**Highlights from the company’s statement:**
Total completions (including JVs) were up by 12.5% in the period to 6,971 units (2013: 6,195 units).
For the period, total ASP (average selling price) on completions increased by c. 8.4% to c. £229k (2013: £211.2k), with private ASP up by c. 12.3% to c. £253k (2013: £225.3k), the increase split broadly equally between changes in mix and house price inflation. We expect the year on year increase in private ASP in the second half of FY15 to be lower than that of the first half. This reflects the mix of the London completions in the second half of FY14 which included The Courthouse in Westminster which had an ASP of £1.4m.

With the sales rate of 0.58 (2013: 0.67) net private reservations per active site per week in the period we are on-track to deliver our target of 15,700 completions (including 700 JV completions) in FY15. The sales rate in the prior year comparable period was exceptionally high reflecting the launch period of Help to Buy in 2013.
Our total forward sales (including JVs) as at 31 December 2014 were up 17.1% on the strong prior year figures at a value of £1,680.8m (2013: £1,435.3m), equating to 8,300 plots (2013: 7,291 plots).

Mark Clare, Group Chief Executive commented: “We have delivered a strong performance in our first half including a 12.5% step up in completion levels. We are on track for another significant improvement in our financial performance for the full year as we continue to operate in a disciplined way, building the highest quality homes in places people want to live.

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“Our significant investment programme in new land continues to pay off and over the next six months we plan to open around 90 new sites which will give us the highest average number of developments for six years. Over their lifetime, these new sites will deliver another 13,500 much needed new homes.”
**More to follow…**
As of 07:20 GMT, Wednesday, 14 January, Barratt Developments Plc share price is 425.50p.


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