Barratt sees profit rising in more stable market

City A.M. Reporter
Housebuilder Barratt Developments said it would post a big rise in full-year profit, while its strong forward orderbook meant it saw further scope for progress in the year to come as the UK market remained stable.

"The group has made significant progress in both rebuilding profitability and reducing indebtedness during the year just ended," Barratt said in a trading update.

"Despite continued uncertainty surrounding the outlook for the wider UK market and constrained levels of mortgage finance, the industry has enjoyed a period of relative market stability."

The group said that at its annual results on 12 September it expected to post a 41 per cent jump in operating profit before exceptional items to around £191m ($296m).

"This significant improvement reflects the group's objective of driving profitability by achieving best value for the homes we sell, a continued focus on operational efficiency, and bringing into production more recently acquired higher margin land," the company said.

Profit before tax and exceptional items was expected to surge 158 per cent to £110m, Barratt said.