Barratt Developments Announce Resilient Performance And Strong Financial Position
Barratt Developments PLC (the ‘Group’) last week issued their trading update for the year ended 30 June 2020 ahead of publication of its annual results on 2 September 2020.
The Group reported that following a shutdown of sites during the lockdown, all operational sites were reopened by 30 June 2020 and all employees, other than those shielding, have now recommenced working in the business, following health and safety working practises and protocols.
As sites had been closed, completion volumes were significantly reduced with 12,6041 total homes including joint ventures completed during the year, compared to 17,856 in 2019.
The Group also announced that their forward order book is strong with total forward sales (including JVs) as at 30 June 2020 of 14,326 homes, this is a large increase when compared to the 30 June 2019, where 11,419 homes were on the order book. This was reflected in the value which currently stands at £3,249.7m (compared to £2,604.1m in 2019).
The year end net case of around £305m and land creditors at £800m, showed a resilient balance sheet, and is equivalent to c.25% of the owned land bank.
David Thomas, Chief Executive commented:
“Prior to the COVID-19 pandemic, the Group was delivering a strong year of progress on both volume and margin. The pandemic has caused significant disruption, but our highly skilled and experienced team have shown incredible resilience, flexibility and commitment both through the peak of the crisis and in the careful reopening of our sites.
“Now, with our construction sites operational across the UK, we begin the new financial year with cautious optimism supported by our strong forward order book and our well capitalised balance sheet.”