Barratt Development鈥檚 dominance of the 海角视频 housebuilding market looks set to continue as the firm revealed completions have surged to an 11-year high.
The company 鈥 the 海角视频鈥檚 largest housebuilder 鈥 has raised its full-year earnings outlook on the back of continued strong progress from margin initiatives and additional contribution from joint ventures.
Barratt, which was founded in Newcastle and is now headquartered in Coalville, Leicestershire, said it delivered 17,111 homes, excluding joint ventures, in the year to June 30 - up 2.6% on the previous year.
The firm also said efforts to boost its margins are set to see pre-tax profits beat market forecasts, at around 拢910m, which would mark an 8.9% rise on the previous year and another record high for the group.
However, the full-year trading update for the group showed a fall in the average private selling price, down 5% to around 拢312,000, due to changes in the mix of homes sold, which it said was partly offset by some underlying house price inflation.
The profit cheer comes as the group said it had boosted its profit margin 鈥渟ignificantly鈥 over the past five years, with an operating margin of around 18.9% expected from the year, up from 17.7% previously.
Total forward sales stood at 拢2.6bn as of June 30 - or 11,419 homes - up from 拢2.2bn the previous year.
Chief executive David Thomas said: 鈥淚t has been another very good year for the group both operationally and financially. We have delivered our highest number of completions for 11 years, made further improvements to our margin and as the only major housebuilder to be awarded a 5 Star rating for customer satisfaction for 10 years in a row, we continue to lead the industry in quality and customer service.
鈥淲e begin the new financial year with a strong forward order book and cash position, continued focus on the delivery of operational improvements across our business, and an ongoing commitment to deliver the highest quality homes across the country.鈥
The group said it was making good progress in its strategy to exit central London and focus on the strong growth opportunities that exist in outer London.
The trading update said: 鈥淥ur wholly owned central London portfolio comprises 18 private homes (June 2018: 145 private homes) remaining to legally complete.
鈥淲e have sold our 50% interest in the Aldgate Place joint venture to our joint venture partner. Following this sale, we now have two active central London joint ventures.鈥
It added that the land market 鈥渞emains attractive鈥 and that it has approved 拢859.8m of operational land for purchase in the year, which will equate to 18,448 plots 鈥 down on last year鈥檚 20,951 plots, but in line with its volume growth aspirations.
The group also brushed aside any worries over Brexit uncertainty hampering the new-build market.
It added: 鈥淲hilst there remains some economic and political uncertainty, the group is in a strong position.鈥
