Issuing a trading update, the firm said that due to an “excellent operational and financial performance” for the full year, it anticipates its FY 2022 adjusted pre-tax profit to be in the range of £1,050m and £1,060m, slightly up on the current market expectations of £1,048m. Last year, its adjusted pre-tax profit was £919.7 million.
Barratt noted its “strong” net private reservation rate of 0.81 per active outlet per week, 3.8% above FY21.
Its private average selling price rose from £325,500 in 2021 to £341,000. And Barratt cited a strong forward sales position, with forward sales as of June 30 2022 at £3,622.3 million (June 30 2021: £3,473.5 million), representing 13,579 homes (30 June 2021: 14,334 homes).
At the same time, Barratt added it was currently experiencing total build cost inflation of between 9% and 10%. It will give its expectations for build cost inflation for FY 2023 when it announces its full results on September 7.
And Barratt’s adjusted items for the year will include legacy property costs resulting from building safety remediation activities of around £412 million, with Barratt’s commitment to the government’s building safety pledge making up the majority of the second half net charge of £395 million.
Also during its financial year, the firm introduced measures to tackle the cost of living for its staff. It brought forward its annual salary review from July to April, awarding a 5% increase to all eligible employees. All employees below senior management level will receive a temporary salary supplement of £1,000, phased over the six-month period from July 1.
Other support has included extending private medical cover to all employees and granting an extra day’s holiday.
David Thomas, Barratt’s CEO, said: “We have delivered an excellent performance this year, reflecting the strong customer demand for our homes and the productivity of our sites.
"While there are clearly macro-economic uncertainties ahead, the housing market remains robust, our forward order book is strong and we have the resilience and flexibility to react to changes in the operating environment.”
