22 Feb 2012
Interim Results for the 6 months ended 31 December 2011
Barratt Developments PLC (the 'Company') is today issuing the results for the Company and its subsidiary undertakings (the 'Group') in respect of the half year ended 31 December 2011 ('the period').
Substantial increase in profits
- Revenues for the half year to 31 December 2011 increased by 8.6% to £952.8m (2010: £877.6m)
- Average selling price increased by 3.1% to £181,200 (2010: £175,800), with private average selling price increasing by 4.2% to £199,900 (2010: £191,900) driven by further positive mix changes
- Profit from operations was £61.1m (2010: £43.5m), a 40.5% increase, with operating margin increasing to 6.4% (2010: 5.0%)
- Profit before tax of £21.6m (2010: loss before tax of £4.6m)
- Recently acquired higher margin land continues to be brought into production and is expected to contribute more than one third of this financial year's completions
- 98% (2010: 97%) of customers would recommend us to a friend
- Net debt as at 31 December 2011 was £542.2m (31 December 2010: £537.0m) and is forecast to be lower than previously expected at around £350m at 30 June 2012 (30 June 2011: £322.6m)
- Strong start to the second half with the Group delivering 246 (FY 2010/11 equivalent period: 202) private sales per week, up 21.8% in the seven weeks to 19 February driven by both an improved sales rate of 0.61 (FY 2010/11 equivalent period: 0.55) private sales per active site per week and new site openings. Overall underlying prices remain stable
- Private forward sales as at 19 February 2012 were up by 24.3% to £693.2m (20 February 2011: £557.9m)
- Second half gross margin and operating profit expected to increase from the prior year equivalent period
Commenting on the results Mark Clare, Group Chief Executive of Barratt Developments said:
"Over the last six months we have continued to improve the performance of the business, despite the wider economic uncertainty. We have delivered a further substantial increase in profits and recently acquired high margin land is now driving further recovery. We have again brought debt and land creditors in below expected levels. We have seen a strong start to 2012 and over the first seven weeks private reservations are running 21.8% ahead of this time last year."-
The Interim Management Report contains certain forward-looking statements about the future outlook for the Group. Although the Directors believe that these statements are based on reasonable assumptions, any such statements should be treated with caution as future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.
There will be an analyst and investor meeting at 8:30am today at UBS, Ground Floor, 1 Finsbury Avenue, London, EC2M 2PP. The meeting will be broadcast live on the Barratt Developments corporate website, www.barrattdevelopments.co.uk from 8:30am today. A listen only function will also be available.
Please dial: +44(0) 1452 565 124
Conference ID: 45738881
The Interim Management Report for the six months ended 31 December 2011 is available from today, 22 February 2012, on the Barratt Developments corporate website, www.barrattdevelopments.co.uk via the following link: www.barrattdevelopments.co.uk/barratt/en/investor/results.
Further copies of the announcement can be obtained from the Company Secretary's office at:
Barratt Developments PLC, Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.
For further information please contact:
Barratt Developments PLC
David Thomas, Group Finance Director 020 7299 4896
Susie Bell, Head of Investor Relations 020 7299 4880
For media enquiries, please contact:
Barratt Developments PLC
Patrick Law, Group Corporate Affairs Director 020 7299 4892
Liz Morley 020 7379 5151