Barratt Developments, the UK’s largest homebuilder by volume, has said it expects its operating profit to rise by around 40% to £61m in the first half.
The group said the increase would be driven by a focus on costs and high-margin land being built out.
In a strong half-year trading statement released today, the group said total completions rose by 7% to 5,198 units, helping turnover to rise by 8% to £950m.
Private completions grew most strongly, up by 9% to 4,028, while social housing completions slipped to 1,089 homes.
A 4% rise in the average selling price of private homes also helped to raise the operating margin from 5% to 6.4%, although this is still low for the sector.
Group net debt rose slightly to £550m compared with last year but was expected to fall to £350m by the year-end in June.
Earlier this week, rival Persimmon said it expected a 50% hike in full-year profits.
Mark Clare, Barratt’s group chief executive, said: “This has been yet another six months of good progress for our business despite the wider economic uncertainty.
“We have delivered a further substantial increase in profits, brought debt in below expected levels and are starting the second half with a much stronger forward order book.”
bridget.oconnell@estatesgazette.com
