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Barratt Developments full-year results

ended 06. September 2023

Barratt Developments has just announced its full year results, which you can read >> here <<. Some key points below:

  • Whilst there remains a clear need for increased housebuilding in the UK, short-term demand has been impacted by mortgage affordability challenges.
  • “We have delivered a strong operational performance in a challenging operating environment. Customers continue to face cost of living and mortgage affordability challenges, and new developments are increasingly constrained by an ineffective planning system.
  • Strong operational performance delivering 17,2063 (FY22: 17,908) total home completions, a decline of 3.9% year on year reflecting the market slowdown experienced from September 2022.
  • Adjusted gross profit of £1,130.4m (FY22: £1,308.1m) and adjusted gross margin at 21.2% (FY22: 24.8%), with reduced profitability reflecting the fall in customer demand, overall house price inflation running below build cost inflation and the operational gearing impact as the market has slowed down.

Any thoughts, send them across ASAP.

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Barrett are the latest house builder to announce results and they look to be the best of a bad sector. They have reinforced the view of the industry that uncertainty in politics and with monetary policy are making it difficult to forecast next years financials, but 2023 didn’t look too shabby compared with its peers. It’s clear that inflation in the sector squeezed margins, but revenue and profits held up and were mainly comparable to the previous year. This is a set of figures that management can be proud of.