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Barratt Developments Expects Full-Year Profit To Beat Expectations

July 9, 2014

Anthony Tshibangu

LONDON (Alliance News) - Housebuilder Barratt Developments PLC on Thursday said it expects pretax profit for the full year ended June 30 to be around GBP390 million, which it said is above the top end of analysts estimates.

In the year to June 30, 2013, the company reported pretax profit of GBP104.8 million and pretax profit before exceptional items of GBP192.3 million.

Barratt said the total average selling price increased to GBP220,000 during the recent financial year from GBP194,800 a year earlier.

"The majority of this increase continues to be driven by changes in mix but underlying sales prices have also strengthened throughout the year," the company said.

In addition, the private average selling price for the full-year increased 13% to around GBP241,000, from GBP213,900 a year earlier.

FTSE 100-listed Barratt said sales rates increased to 0.69 net private reservations per active site per week in the recent year, compared with 0.58 reservations a year earlier. The sales rate in the second half was 0.71 net private reservations per active site per week, compared with 0.66 reservations a year ago.

The company said it continues to secure land opportunities across all regions. Its landbank now totals 21,478 plots compared with 18,536 plots a year earlier.

Looking ahead, the company said it expects strong demand for new homes to continue and it hopes to open around 180 sites in the year to June 2015.

Barratt said it will announce its full results on September 10.

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Source: Alliance News

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