Barratt looks to better-than-expected full-year profit

Barratt Developments expects its annual profit to be ahead of expectations despite a fall in completions and forward sales. In a trading update for the year to 30 June, the company said forward sales fell by a fifth year-on-year to 7,239, “in line with expectations”. Completions were “at the upper end of our guidance range” at 14,004, down from 17,206 a year earlier. Barratt said its adjusted profit before tax is anticipated to be “slightly ahead of our previous expectations”. The company is awaiting the Competition and Markets Authority’s findings on its proposed merger with Redrow. The first phase of the investigation commenced on 13 June and the housebuilder said it expects a decision by 8 August. Chief executive David Thomas said: “During another year of economic and political uncertainty, we have delivered a strong operational performance, reflecting the exceptional work of our employees, sub-contractors and suppliers, and their commitment to delivering high-quality homes that people want to live in. “While we continue to navigate a challenging macroeconomic backdrop, we are delivering industry-leading build quality, sustainability and customer service. Combined with the strength of our balance sheet, this has ensured we remain resilient and responsive through the cycle.” Image © Jeff Blackler/Shutterstock