In its half-year results for the six months to December 31 2022, Barratt said its completions had risen from H1’s 8,067 to 8,626, supported by a “particularly strong” forward sales position. Revenue climbed from £2,247.1 million to £2,783.9 million.
Pre-tax profit for the half year saw a rise of 15.9% to £501.5 million. Profit from operations was also up, by 13.9% to £494.2 million. Its However, operating margins, fell 150bps to 17.8%, due to £20 million of net costs incurred relating to reinforced concrete frame remediation works on legacy properties.
Barratt’s private average selling price grew 13.6% to £372,000. Its overall private reservation rate during the six months was 44.3% below the same period the previous year, at 0.44.
This drop reflected political and economic uncertainty impacting the first quarter, exacerbated by “rapid and significant changes” in mortgage rates with affordability, home buyer confidence and reservations affected in the second quarter.
The housebuilder stressed that the current trading outlook remained “uncertain” with only four weeks of trading since the start of the calendar year. Reservations had uplifted “modestly” thanks to a levelling in future interest rate and energy cost expectations. “The sustainability of this recovery remains uncertain,” Barratt stated.
David Thomas, Barratt’s CEO, said: “We have delivered a strong operating performance for the six months to 31 December 2022. This was possible because of our significant forward order book at 30 June 2022 and the tremendous efforts of our employees, subcontractors and supply chain partners.
“We are well-placed to navigate the challenges ahead and are focused on driving revenue whilst taking a decisive and disciplined approach to costs. As always, our priority is delivering excellent quality and service for our customers.”
