Barratt Developments profits rise 8.8 percent

Andrew Cummings
February 22, 2017

The company said sales were "particularly strong" in the West Midlands, the North of England and Scotland. Barratt's share price stands 2.14 percent higher at 525.50p.

However completions in London more than halved to 367 from 842 plots, which Barratt said was in line with its planned build programme, noting its expectations for "significant increase" in completions on wholly owned sites in London in its second half.

Barratt has been increasing home building outside of London as demand for homes in the city slows.

Barratt Developments (LON:BDEV) has been another notable Footsie risers after the company reported an 8.8-percent rise in pre-tax profits for the first half of its financial year.

Whilst we have increased volumes across the United Kingdom 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.

A surge in house building outside of London helped Barratt Developments record a almost 9 per cent rise in profits.

Barratt Developments PLC is a holding company.

The group is paying an interim dividend for this year of 7.3p, up 21.7% on the 6.0p paid at the same stage last year.

Barratt also unveiled an improved and extended Capital Return Plan with ordinary dividend cover re-set at 2.5 times and special dividends of £175m payable in November 2017 and November 2018. The company's forward order book as at February 19 stood at GBP3.02 billion, up 17%. That figure includes joint ventures.

Looking ahead, the company said it is confident it will deliver on its full year volume guidance and remains confident in its outlook for the full year.

Mr Thomas, who previously held the role of Barratt CFO for six years until July 2015, has reassumed temporary responsibility for the finance function supported by both Philip Schumacher and John Flynn, the group financial controller and housebuilding financial controller respectively.

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