Financial Highlights: Trading update - 14 July 2010
Barratt Developments PLC (“Barratt”) is today issuing a trading update for the twelve months to 30 June 2010 ahead of its annual results announcement.
Highlights
- Total completions (Note 1) of 11,377 for the full year in-line with guidance, with 6,324 completions delivered in the second half
- Average selling price up by c.11% for the full year to c. £174k and by c.18% in the second half on the prior year equivalent period, mainly due to changes in mix
- Net private reservations up 4.2% for the full year at 0.50 per week per active site
- Forward sales up by 27% to £591.7m as at 30 June 2010
- Operating profit (Note 2) of at least £85m for the full year, ahead of expectations, resulting in a full year operating margin (Note 3) of at least 4%, and a second half operating margin of at least 5.5%
- Net debt of c. £375m as at 30 June 2010, significantly lower than previous guidance
Mark Clare, Group Chief Executive commented
“In the last six months we have driven a significant improvement in operating margin, delivered a profit for the Group, and reduced debt levels by around £230m. This improved operating performance, combined with our success in agreeing terms on higher margin land means that the Group is well positioned to secure further margin growth in what continues to be a challenging market.”