A trading update from Britain’s largest housebuilder forecast its pre-tax profits for the year to June 2019 would be £910m, up from £835.5m in 2018.
It also revealed its total completions had risen to 17,856, up marginally from the 17,579 completed in 2018.
David Thomas, chief executive of Barratt Developments, said: “We 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.”
In its trading update, Barratt said it was “committed” to playing its part in addressing the housing shortage, noting it had made “refinements” to its housing range to enable it to build more efficiently, though it emphasised this would not impact its quality or design standards. It added that it aims to use modern methods of construction in 20 per cent of its homes by 2020.
Graham Spooner, investment research analyst at The Share Centre, described the update as positive, but said there were still risks from Brexit which could hit the sector.
“Despite concerns over political uncertainty and the UK economy there was a confident tone to the group’s outlook, highlighting a strong balance sheet and healthy forward sales.
“We still believe Brexit uncertainty will hang over the sector, which in turn increases the risk.”
