Barratt posts upbeat half-year results

Barratt made upbeat noises about the state of the housing market during its half-year results to 31 December 2007 today.

The housebuilder posted a 10.2% rise in pre-tax profit to £194.6m, up from £176.6m the previous year. Turnover jumped 38% from £1.2bn to £1.7bn.

Chief executive Mark Clare said: “Trading conditions over the last six months have been difficult and the business has had to adjust to this new environment. We are continuing to reduce costs, whilst improving sales effectiveness to ensure that prices and volume are maximised.

“The new calendar year has started well. We have increased outlets and have a strong forward order book. Visitor and reservation levels continue to improve and we remain optimistic that this will continue through the balance of the spring selling season.”

Despite the positive mood, the company said that at 17 February this year forward sales were 7% down on last year at £1.6bn.

Completions increased by 25.7% to 9,056 (2006: 7,206) at an increased average selling price of £178,000, up by 7.9% (£165,000).

But on a like-for-like basis, reflecting what the group called “more difficult trading conditions, the figure dropped 14.8% to 10,623 units.

Dresdner Kleinwort analyst Alastair Stewart said the company’s high debt level meant the rhetoric could be “wishful thinking by an over-geared company