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Half Year Results

22 Feb 2017

Strong half year for the Group, well on track for the full year

  Half year ended
31 December 2016
Half year ended
31 December 2015
Total completions1 (plots) 7,180 7,626 (5.8%)
Revenue (£m) 1,816.2 1,875.5 (3.2%)
Gross margin2 (%) 20.7 18.6 2.1 ppts
Profit from operations (£m) 324.0 301.8 7.4%
Operating margin3 (%) 17.8 16.1 1.7 ppts
Profit before tax (£m) 321.0 295.0 8.8%
Interim dividend per share (pence) 7.3 6.0 21.7%
ROCE4 (%) 27.0 25.5 1.5 ppts
Net Cash5 (£m) 196.7 24.2 712.8%


  • Completions outside of London at highest level for nine years; London completions were in line with planned build programme, with significant uplift expected on wholly owned sites in the second half
  • Half year profit before tax for the period of £321.0m, up 8.8%
  • ROCE increased by 1.5 ppts to 27.0%, reflecting our fast build and sell model
  • Maintained industry-leading customer satisfaction and build quality

Current Trading

  • Completion growth expected in the second half with record total forward sales (including JV's) as at 19 February 2017 up 17.0% at £3,018.2m
  • Net private reservations per active outlet per average week of 0.77 (2016: 0.76)

Capital Return Plan

  • Improved and extended Capital Return Plan with ordinary dividend cover re-set at 2.5 times and special dividends of £175m in November 2017 and November 2018

Commenting on the results David Thomas, Chief Executive of Barratt Developments PLC said:

"As we reported in the January trading update, we have delivered another very strong first half performance, pre-tax profits were up nearly 9% and completions outside of London at their highest level in nine years.

Whilst we have increased volumes across the UK 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.

With a record forward order book, strong consumer demand and a positive lending backdrop, we remain confident in our outlook for the full year. Our confidence in the business going forward is reflected in the improved and extended Capital Return Plan."

There will be an analyst and investor meeting at 9.00am today at Deutsche Bank, 1 Great Winchester Street, London, EC2N 2DB. The presentation will be broadcast live on the Barratt Developments corporate website,, from 9.00am today. A playback facility will be available shortly after the presentation has finished.

A listen only function will also be available.

Dial in: 0800 358 6377
International dial in: +44 (0) 330 336 9105
Access code: 7318349

Further copies of this announcement can be downloaded from the Barratt Developments corporate website or by request from the Company Secretary's office at: Barratt Developments PLC, Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.

1Includes joint venture ('JV') completions in which the Group has an interest

2Gross margin is calculated as gross profit divided by revenue

3Operating margin is calculated as profit from operations divided by revenue

4Return on capital employed ('ROCE') is calculated as earnings before interest, tax, operating charges relating to the defined benefit pension scheme and operating exceptional items, divided by average net assets adjusted for goodwill and intangibles, tax, cash, loans and borrowings, retirement benefit assets/obligations and derivative financial instruments

5Net cash / debt is defined as cash and cash equivalents, bank overdrafts, interest bearing borrowings and foreign exchange swaps

For further information please contact:

Barratt Developments PLC
David Thomas, Chief Executive
020 7299 4896

Analyst/investor enquiries
Chloé Barnes, Investor Relations
020 7299 4895

Media enquiries
Tim Collins, Head of Corporate Communications
020 7299 4874

Derek Harris, Head of Public Relations
020 7299 4873

Jonathan Glass/Wendel Verbeek
020 7404 5959

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