Barratt Developments’ (LON:BDEV) share price has fallen deep into the red in London in today’s session as the FTSE 100 company posted its annual results this morning, revealing a drop in revenue. The update comes after the blue-chip housebuilder said in July that it expects its pre-tax profit to come in ahead of market expectations.
As of 09:58 BST, Barratt’s share price had given up 2.60 percent to 605.80p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.70 percent higher at 7,318.79 points. The group’s shares have added a little more than 17 percent to their value over the past year, as compared with about a 1.8-percent fall in the Footsie.
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Barratt posts annual results
Barratt announced in a statement this morning that its revenue had fallen 2.3 percent to £4.76 billion for the year ended June 30. The group’s operating margin meanwhile rose from 17.7 percent to 18.9 percent, while profit before tax came in at £909.8 million, as compared with £835.5 million.
“Whilst there is increased economic and political uncertainty, we begin the new financial year with a strong forward order book, balance sheet and cash position which we believe provides us with the resilience and flexibility to react to potential changes in the operating environment in FY20 and beyond,” Barratt’s chief executive David Thomas commented in the statement, adding that group maintained its “focus on the delivery of operational improvements”.
Analysts on FTSE 100 group
The 15 analysts offering 12-month targets for the Barratt share price for the Financial Times have a median target of 643.00p, with a high estimate of 770.00p and a low estimate of 513.00p. As of September 3, the consensus forecast amongst 17 polled investment analysts covering the blue-chip housebuilder has it that the company will outperform the market.