The company said that its sales rate was 2.6% up on the same period the previous year at 0.79 net private reservations per active outlet per week and was “ahead of expectations” against the previous half-year.
At the same time, the firm’s half-year completions were 11.1% below the comparable period at 8,067 homes. Barratt said this reflected the return to a more regular seasonal pattern of completions, with the comparative half-year driven by an improved level of work in progress being carried into the new financial year. During the pre-pandemic HY20, the company completed 8,314 homes.
Its private average selling price rose to £327,400 against the previous half year’s £319,500 which Barratt said reflected house price inflation of around 5%, offset by less delivery in London and a “slight reduction” in the average size of homes completed during the period.
Revenue for the reported period fell 9.9% to £2,247.1 million, with pre-tax profit slightly up by 0.6% to £432.6 million.
Profit from operations lifted 2.6% to £434 million. The business incurred £15.9 million of costs related to legacy properties which it said were recognised outside of its adjusted gross and operating profit. This resulted in a reported gross margin of 24.3% (HY21: 20.6%, HY20: 22.2%) and a reported operating margin of 19.3% (HY21: 17%, HY20: 18.6%).
For the full year, the business expects to deliver total home completions of between 18,000 and 18,250, an increase of 250 homes on previous guidance.
Forward sales as of December 31 2021 were up 9.1% at 14,818 homes (December 31 2020: 13,588 homes; December 31 2019: 11,885 homes).
David Thomas, Barratt’s CEO, said Barratt's increase in construction activity “has not affected our focus on our customers, on quality and service and on acting in a responsible and ethical way. We continue to work hard to lead the industry in building the high-quality sustainable homes and developments the country needs."
