Shares in Barratt Developments closed at a 10-month high today after the housebuilder said its results for the second half of 2020 had surpassed the management team’s expectations.
Despite concerns over the state of the housing market as the UK entered a third national lockdown, Barratt today said that during the second half of last year, completions jumped by more than 9% and forward sales by some 14% year-on-year. Goodbody equity analyst David O’Brien said the results put Barratt in a “very strong position” for the second half of its current financial year.
The company’s stock hit 720p per share, the highest level since before the UK entered its first Covid-19 lockdown last March. That 4.5% lift was one of the best performances today for a FTSE 100 stock, beaten only by asset management firm Hargreaves Lansdown, which rose by 5.4%.
And where Barratt led, other housebuilders followed, with rises for companies including Crest Nicholson (5.6%), Vistry Group (3.6%) and Taylor Wimpey (2.7%).
At its close, the FTSE 100 had gained 0.2% to reach 6,873 points. The FTSE 250 was at 21,064, a rise of 0.3%.
To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette
