UK housebuilder Barratt Developments announced it will resume dividend payments after posting record completions, but warned it will take a £56m hit on legacy properties, including issues related to cladding.
The firm said it will pay an interim dividend of 7.5p per share on 10 May following a “rapid and robust recovery and a further strengthened balance sheet”.
Barratt reported that first half year home completions were up 9.2 per cent to 9,077.
Revenue jumped 10.1 per cent to £2.49bn, and profit before tax was up 1.7 per cent to £430.2m.
Barratt said it incurred an additional £56.3m in costs related to legacy developments.
A review into faulty concrete frames discovered during cladding replacements at its Citiscape building in Croydon accounted for most of the extra costs.
It has spent £15.6m on developments where it has a legal liability to fix the cladding due to changing fire-safety advice in the wake of the Grenfell Tower tragedy.
The firm’s share price jumped more than three per cent this morning.
More to follow