Barratt Developments (LON:BDEV) today announced results for the year ended 30 June 2018.
|
£m unless otherwise stated1,2 |
Year ended 30 June 2018 |
Year ended 30 June 2017 |
Change |
|
Total completions (units)3 |
17,579 |
17,395 |
1.1% |
|
Revenue |
4,874.8 |
4,650.2 |
4.8% |
|
Gross margin (%) |
20.7 |
20.0 |
70 bps |
|
Profit from operations |
862.6 |
799.2 |
7.9% |
|
Operating margin (%) |
17.7 |
17.2 |
50 bps |
|
Profit before tax |
835.5 |
765.1 |
9.2% |
|
Basic earnings per share (pence) |
66.5 |
61.3 |
8.5% |
|
Total dividend per share (pence) |
43.8 |
41.7 |
5.0% |
|
ROCE (%) |
29.6 |
29.8 |
(20) bps |
|
Tangible net assets per share (pence) |
366 |
340 |
7.6% |
|
Net cash |
791.3 |
723.7 |
9.3% |
Highlights
· Strong financial and operational performance for the full year
· Leadership of quality and customer service recognised through both 14 consecutive years of achieving more NHBC Pride in the Job Awards than any other housebuilder and receiving the HBF maximum 5 Star customer satisfaction rating for nine consecutive years
· 50 bps of operational margin improvement as our margin initiatives have started to deliver
· Profit before tax up by 9.2% to £835.5m
· 4.7% increase in final ordinary dividend per share to 17.9p (2017: 17.1p) together with 17.3p (2017: 17.3p) special dividend per share, resulting in a total dividend for the financial year of 43.8p (2017: 41.7p)
Medium term targets
· 3-5% volume growth per annum
· Land acquisition hurdle rate of a minimum 23% gross margin
· Minimum 25% ROCE
Current trading
· Forward sales (including JVs) up 11.1%, as at 2 September 2018 at £3,054.0m (3 September 2017 at £2,749.9m)
· Net private reservations per active outlet per average week from 1 July were in line with the prior year at 0.75 (FY18: 0.74)
Commenting on the results David Thomas, Chief Executive of Barratt Developments PLC said:
“The Group has had another outstanding year delivering a strong operational and financial performance, and our highest volumes in a decade. As the UK’s largest housebuilder we are helping to address the country’s housing shortage – creating jobs and supporting economic growth whilst continuing to lead the industry in quality and customer service.
Our continued focus on operating efficiencies and margin initiatives is starting to deliver and we have today announced new medium term operational targets reflecting our confidence in the business going forward.
The Group starts the new financial year in a good position with a strong balance sheet, healthy forward sales and robust consumer demand supported by a positive mortgage environment.”
