Housebuilder Barratt Developments’ shares slid this morning despite its construction output recovering to pre-pandemic levels and a rosy revenue of £5.26bn.
The FTSE-listed housebuilder’s annual results coincided with a caution from Halifax today, warning of a housing market slowdown amid the cost of living crisis, soaring energy bills and rising mortgage interest rates.
Completions climbed nearly four per cent to 17,908 in the period, as the housebuilder targets an average of 366 homes completed per week next year.
While revenue rose 9.5 per cent in the 12-months to 30 June, Barratt’s pre-tax profit took a hit, tumbling a little over 20 per cent to £642.3m, from £812.2m a year prior.
The housebuilder warned that its land approvals in the new financial year will be lower than this year, “as the land market has become increasingly competitive”.
Barratt’s earnings per share were also down over the year, due in part to recent market turbulence. This morning, share sank one per cent to 418p per share.