Barratt Developments Sees FY24 Profit ‘Slightly Ahead’ of Previous Expectations

UK housebuilder Barratt Developments (LON: BDEV) announced today that it expects to report a profit before tax for the fiscal year 2024 (FY24) that is slightly higher than previously anticipated.

This positive outlook comes despite a challenging market environment, with the company's strong performance attributed to a focus on operational efficiency and customer satisfaction.

“Whilst we continue to navigate a challenging macroeconomic backdrop, we are delivering industry-leading build quality, sustainability and customer service,” said Barratt's Chief Executive David Thomas in the trading update for the year ended June 30, 2024. “Combined with the strength of our balance sheet, this has ensured we remain resilient and responsive through the cycle. Looking ahead, we are pleased that the proposed combination with Redrow was strongly supported by both sets of shareholders in the Spring.”

BDEV's net private reservation rate per active outlet per week increased by 5.5% to 0.58. The company also achieved total home completions of 14,004 units, reaching the upper end of their guidance range. Adjusted profit before tax is anticipated to be slightly ahead of previous expectations.

Barratt Developments boasts a strong year-end net cash position of approximately £865 million, providing a solid financial foundation for the company. The combination of Barratt Developments and Redrow remains on track, subject to regulatory approval.

Looking ahead, Barratt Developments expects total home completions in FY25 to range between 13,000 and 13,500 units due to a reduction in average sales outlets. However, the company remains confident about its future prospects due to its strong financial position and healthy forward sales position.