First half housing completions at highest level in six years
Completion volumes(1) increased by 12.5%
Significant step up in the rate of site openings, with nearly 100 new sites (including JVs) opened in the half year
Build cost pressures moderated as the supply of materials and labour increased
Land market remains attractive with good supply of high quality new development opportunities
Disciplined approach has increased ROCE(2) by 740 basis points to 21.6% for the 12 months to 31 December 2014
|
|
Half year ended 31 December 2014 |
Half year ended 31 December 2013 |
Change |
|
Total completions (including JVs)(3) |
6,971 |
6,195 |
+12.5% |
|
Revenue |
£1,576.3m |
£1,264.9m |
+24.6% |
|
Profit from operations |
£224.1m |
£139.5m |
+60.6% |
|
Operating margin(4) |
14.2% |
11.0% |
+320bp |
|
Profit before tax |
£210.2m |
£120.4m |
+74.6% |
|
Basic earnings per share |
17.0p |
9.5p |
+78.9% |
|
Interim dividend per share |
4.8p |
3.2p |
+50.0% |
|
ROCE(2) |
21.6% |
14.2% |
+740bp |
Outlook
Strong start to the second half with 279 (2014: 285) net private reservations per week over the last eight weeks resulting in 0.71 (2014: 0.76) net private reservations per active site per week
Total forward sales including JVs as at 22 February 2015 up by 17.5% to £2,275.3m (23 February 2014: £1,936.1m)
Group expected to have net cash of between £50m and £100m as at 30 June 2015
Interim dividend payment of 4.8 pence per share (2014: 3.2 pence per share)
Capital Return Plan expected to return a total of 97.0 pence per share over the three years to November 2017(5)
Commenting on the results Mark Clare, Group Chief Executive of Barratt Developments PLC said:
"Since 2009 we have committed to invest over £4 billion in land for new housing and this is now paying off. Housing completions were up over 12% during our first half and are running at the highest level for six years, supporting over 12,000 suppliers and subcontractor companies. Over the next six months we plan to open a further 90 sites (including JVs) that will deliver another 13,500 new homes over their lifetime.
Our investment programme and the improvements to the business have driven a significant step up in our financial performance in the past year including a 75% increase in profit before tax. Our disciplined approach to land investment, delivering high quality homes and driving efficiency across the business, means we are well on our way to hitting our FY17 targets of a gross margin of at least 20% and a return on capital employed of at least 25%."
The Half Yearly Financial Report contains certain forward-looking statements about the future outlook for the Group. Although the Directors believe that these statements are based on reasonable assumptions, any such statements should be treated with caution as the future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.
There will be an analyst and investor meeting at 9.00am today at Deutsche Bank, 1 Great Winchester Street, London, EC2N 2DB. The meeting will be broadcast live on the Barratt Developments corporate website, www.barrattdevelopments.co.uk. A listen only function will also be available.
