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Barratt Developments posts 100% increase in profits

by: Samantha Partington
  • 10/09/2014
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Barratt Developments has reported a rise in profit before tax of more than 100%, to £390.6m, in its full year results.

Total completed plots rose from 13,663 in 2013 to 14,838, for the year ended 30 June 2014.

The group said the significant increase in housing completions was due to sustained strength in consumer demand across all areas of the country.

The average selling price of a Barratt home has risen by 12% to £241,600.

The group expects the market to calm and stablise following the spike in house buying driven by the launch of the Help to Buy shared equity loan scheme, which is available only for new home purchases.

Private forward sales at 7 September were £1,145.6m, 30% higher than they were at the same point last year.

Last year the group posted a profit figure of £192m and due to the strength of its 2013/2014 performance it has increased its basic earnings per from 7.7p to 31.2p.

Mark Clare, group chief executive of Barratt Developments, said: “This significant improvement in performance has been driven by the £3.8bn we have committed to land investment since mid-2009, together with the recovering market and improvements in design, quality and efficiency.”

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