Britain’s biggest housebuilder was in bullish form today as it unveiled plans for an extra 1000 homes in London and said it would more than double annual profits.
Barratt Developments chief executive Mark Clare, who has been putting the company back on firmer ground since its ill-timed £2 billion acquisition of Wilson Bowden in 2007, will also pay a first dividend to investors since the credit crunch later this year.
The firm has snapped up two major sites with a gross development value of £400 million, at Blackfriars Road in Southwark and Cannon Wharf in Surrey Quays, adding to the 26,000 homes Barratt has built since setting up shop in the capital 30 years ago. Barratt has 22 sites under way in 17 boroughs. London remains particularly buoyant but the housing market is picking up across the country, Clare said: “There are more signs of life in the mortgage market, which I think is important.”
Like the rest of the industry, Barratt is benefitting from the £2 billion it has spent on much cheaper land since the crash, which allows it to grow profits despite a slight fall in completions to 5085 in the six months to December 31.
Pre-tax profits will be around £45 million for the full year, more than double the year before.
Panmure Gordon’s Rachael Applegate said: “Although top-line growth remains muted, profitability continues to advance strongly as margins progress.”
