Barratt Developments PLC (LON:BDEV) has provided an annual results announcement for the year ended 30 June 2021.
Commenting on the results David Thomas, Chief Executive of Barratt Developments PLC said:
“We have made excellent progress this year thanks to the resilience, flexibility and hard work of our employees, sub-contractors and suppliers, who have also continued to deliver the highest standards of quality and service. We have begun the new financial year in a strong position and, whilst there are still uncertainties ahead, our strong balance sheet, forward order book visibility and construction activity to date all stand us in good stead. There is very strong demand for houses across the country and we play a crucial role in providing the high quality and sustainable homes this country needs. As we work towards our medium term target of growing completions to 20,000 homes a year, we are committed to doing so as the leading national sustainable housebuilder – building homes which have a positive environmental, social and economic impact today and into the future.”
| £m unless otherwise stated1,2,3 | Year ended30 June 2021 | Year ended30 June 2020 | Change | Year ended30 June 2019 | Change |
| Total completions (homes)4 | 17,243 | 12,604 | 36.8% | 17,856 | (3.4%) |
| Revenue | 4,811.7 | 3,419.2 | 40.7% | 4,763.1 | 1.0% |
| Gross margin (%) | 21.0 | 18.0 | 300bps | 22.8 | (180bps) |
| Profit from operations | 811.1 | 493.4 | 64.4% | 901.1 | (10.0%) |
| Operating margin (%) | 16.9 | 14.4 | 250bps | 18.9 | (200bps) |
| Profit before tax | 812.2 | 491.8 | 65.1% | 909.8 | (10.7%) |
| Basic earnings per share (pence) | 64.9 | 39.4 | 64.7% | 73.2 | (11.3%) |
| Total ordinary dividend per share (pence) | 29.4 | nil | n/m | 29.1 | 1.0% |
| ROCE (%) | 28.3 | 15.6 | 1,270bps | 29.7 | (140bps) |
| Net cash | 1,317.4 | 308.2 | 327.4% | 765.7 | 72.1% |
Highlights
· Excellent operational and financial performance throughout the year with total home completions4 increasing by 36.8% to 17,243 (2020: 12,604), just 3.4% below the 17,856 total completions achieved in 2019.
· Gross margin of 21.0% (2020: 18.0%; 2019: 22.8%) with the adjusted gross margin recovering to 23.2% (2020: 18.5%; 2019: 22.8%) reflecting market strength and completion volume recovery.
· Strong cash generation with net cash at 30 June 2021 of £1,317.4m (30 June 2020: £308.2m; 30 June 2019: £765.7m) which enables our growth plans.
· Maintained competitive position in the land market, whilst remaining disciplined. Approved £876.8m (2020: £368.1m; 2019: £859.8m) of operational land for purchase, equating to 18,067 plots (2020: 9,441 plots; 2019: 18,448 plots) on 97 new sites (2020: 51; 2019: 90).
· Continued industry leadership in quality and customer service recognised through a seventeenth consecutive year of achieving more NHBC Pride in the Job Awards than any other housebuilder and the twelfth consecutive year of receiving the HBF maximum 5 Star customer satisfaction rating.
· Made significant progress towards being the country’s leading national sustainable housebuilder, with an increased focus on significantly reducing our environmental impact.
· Final ordinary dividend per share of 21.9p (2020: nil; 2019: 19.5p) together with the interim dividend of 7.5p (2020: nil; 2019: 9.6p) resulting in a total ordinary dividend for the financial year of 29.4p (2020: nil; 2019: 29.1p).
Current trading
· Net private reservations per active outlet per average week at 0.83 from 1 July through to 22 August, 11.7% below the equivalent initial post lockdown period in FY21 at 0.94, but 22.1% above the 0.68 achieved in the same period in FY20.
· Strong forward sales4 as at 22 August 2021 with 15,734 homes (23 August 2020: 15,660 homes; 25 August 2019: 13,064 homes) and a value of £3,939.9m (23 August 2020: £3,706.5m; 25 August 2019: £3,037.5m).
· Construction activity on track to deliver planned output growth with 335 equivalent homes per average week built to date in the new financial year (FY21: 290 homes; FY20: 361 homes).
1. Refer to Glossary for definition of key financial metrics
2. Unless otherwise stated, all numbers quoted exclude JVs
3. In addition to the Group using a variety of statutory performance measures it also measures performance using alternative performance measures (APMs). Definitions of the APMs and reconciliations to the equivalent statutory measures are detailed in the Definitions of alternative performance measures and reconciliation to IFRS section. Net cash definition in Note 5.1
4. Including JVs in which the Group has an interest
There will be an analyst conference call and webcast at 8.30am today.
An archived version of the webcast will also be available on our website during the afternoon of 2 September 2021.
Dial in UK toll free: 0808 109 0700
International dial in: +44 (0) 203 003 2666
The presentation will also be webcast live with the follow on Q&A. Please register and access the webcast using the following link:
https://broadcaster-audience.mediaplatform.com/#/event/610bcc07ab59730374da68e7
Further copies of this announcement can be downloaded from the Barratt Developments PLC corporate website at www.barrattdevelopments.co.uk or by request from the Company Secretary’s office at: Barratt Developments PLC, Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.
