Britain’s biggest housebuilder lost more than £1.3 billion in sales as a result of lockdown.
Revenues at Barratt homes dropped almost 30 per cent over the last year to £3.42 billion.
Pre-tax profits, meanwhile, almost halved – to £492 million compared to £910 million the previous year.
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The impact of Covid-19 on the Leicestershire building giant saw the total number of homes it built drop to 12,604 in the 12 months to June 30 – compared to 17,856 a year earlier.
However, despite scrapping a special dividend payment, the business did say it had healthy sales going forward.
This morning chief executive David Thomas said throughout the pandemic, the business had shown a resilient performance, and maintained a strong financial position.
He said: “While Covid-19 has had a significant impact on our results, our priority has been to keep our people safe, mitigate the effect of the pandemic on our business and be able to emerge from the crisis in a resilient position.
“Although uncertainties remain, all of our sites are operational, we are seeing very strong consumer demand and our robust financial position means we enter the new financial year with cautious optimism.
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“We are now renewing our focus on our medium term targets, on leading the industry in quality and service and on supporting jobs and economic growth by building the homes the country needs.”
The annual results came as new figures from the Nationwide suggested the average cost of a 海角视频 home rose by more than £3,000 last month as house-buyers shrugged off the uncertainty.
The 2 per cent rise to £224,123 in August wiped out losses recorded earlier this year as the pandemic tore through the country.
Barratt said it spent more than £74 million dealing with Covid-19 – including £45.2 million on extra safety, site and employee costs, and an added £29.1 million for longer build times.
However the business – formed in Newcastle in 1958 and now based in Coalville, Leicestershire – said it still had a good balance sheet with £308.2 million in the bank, down from £765.7 million.
Its finances have been strong enough for it to repay £26 million claimed under the Government furlough scheme.
The business said some 85 per cent of its 6,700 workers had been placed on the Government job retention scheme at the height of the lockdown.
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However, all of its building sites had now reopened with staff back at work.
In the annual results chairman John Allan said: “Covid-19 and the global response to it has damaged the 海角视频 economy, and it is likely that there will be an increase in unemployment in the coming months as businesses continue to be impacted.
“The full extent of the economic impact being caused by Covid-19 is yet to become fully clear, and there remains uncertainty regarding the outcome of the ongoing negotiations regarding the 海角视频 leaving the EU.
“However, the underlying drivers of the 海角视频 housing market remain strong.
“Home ownership is still the tenure of choice for the majority of people, and this combined with the long term undersupply of new housing means that there remains a good level of underlying demand.
“The industry has seen encouraging levels of interest and sales as lockdown was eased and sales centres reopened, and we believe that the long term impact of the pandemic on people’s choices and priorities will be an increase in demand for the high quality homes that we provide as consumers look for more space both indoors and outdoors.”
Russ Mould, investment director at stockbroker AJ Bell, said: “While Barratt talks of ‘cautious optimism’ alongside its full-year results, its true assessment of the outlook is best reflected by its continuing decision to keep dividends off the table.
“This is a perfectly rational response to a highly uncertain backdrop.
“It is indicative of management’s suspicion that the big jump in activity following the property market’s emergence from deep freeze is due to a flood of pent-up demand, boosted by a stamp duty holiday, which will eventually ebb away.
“News of 海角视频 house prices hitting record highs may provide some short-term fizz for Barratt and the rest of the sector but there could be a lingering hangover to come.
“Unemployment and a buoyant housing market typically don’t make for good bedfellows, so rising levels of joblessness are almost certain to create headaches in due course.
“If Barratt is in for a period of weaker demand then it will need to maintain a strong balance sheet as a buffer, enabling it to come out the other side ready to take advantage of any eventual recovery.
“Relative financial strength would also allow Barratt to add to its land bank at a time when prices are likely to be at bombed-out levels.
“This would have positive implications for long-term profitability although such considerations are a long way off just now.”
Shares in the business were up 6.5 per cent at £5.36 this morning.