Barratt Developments’ (LON:BDEV) share price has been little changed in London this morning as the company updated investors on its recent trading, revealing that it expects its pre-tax profit to come in ahead of market expectations. The update comes ahead of the blue-chip housebuilder’s full-year results on September 4.
As of 09:04 BST, Barratt’s share price had given up 0.04 percent to 576.20p, largely in line with the broader UK market with the benchmark FTSE 100 index currently standing 0.08 percent lower at 7,530.47 points. The group’s shares have added more than 23 percent to their value over the past year, as compared with about a two-percent fall in the Footsie.
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Barratt updates on recent trading
Baratt announced in a statement today that its full-year profit before tax is expected to be ahead of market expectations at around £910 million, compared with £835.5 million in the prior-year period, driven by continued strong progress from margin initiatives, a strong close to the year and additional contribution from joint ventures.
“It has been another very good year for the Group both operationally and financially,” Barratt’s chief executive David Thomas commented in the statement, adding that the company was starting “the new financial year with a strong forward order book and cash position”.
The FTSE 100 company said that it will update investors on current trading, guidance for FY20 and progress against its medium-term targets at its full-year results announcement in September.
Analysts on blue-chip housebuilder
The 14 analysts offering 12-month targets for the Barratt share price for the Financial Times have a median target of 628.50p, with a high estimate of 770.00p and a low estimate of 513.00p. As of July 5, the consensus forecast amongst 17 polled investment analysts covering the blue-chip group has it that the company will outperform the market.