BARRATT DEVELOPMENTS PLC
Half year results for the six month period ended 31 December 2021
Strong build performance, well positioned for the second half with increased guidance for full year completions.
Commenting on the interim results David Thomas, Chief Executive of Barratt Developments PLC said:
“We have delivered an excellent first half and the strong rebound in our construction activity means that we now expect to complete more than 18,000 homes, including 750 from JVs, this year, ahead of previous expectations and pre-COVID levels.
This increase in construction activity has not affected our focus on our customers, on quality and service and on acting in a responsible and ethical way. We continue to work hard to lead the industry in building the high-quality sustainable homes and developments the country needs.”
£m unless otherwise stated^1,2 Half year ended Half year ended Change
31 December 2021 31 December 2020
Total completions (homes)^3 8,067 9,077 (11.1%)
Revenue 2,247.1 2,494.7 (9.9%)
Profit from operations 434.0 422.9 2.6%
Adjusted operating margin^4 20.0% 20.3% (30bps)
Operating margin^4 19.3% 17.0% +230bps
Profit before tax 432.6 430.2 0.6%
Basic earnings per share (pence) 34.5 34.3 0.6%
Adjusted basic earnings per share 35.9 40.5 (11.4%)
(pence)^4
Interim dividend per share (pence) 11.2 7.5 49.3%
ROCE^4 26.8% 17.7% +910bps
Net cash^4 1,131.7 1,106.7 2.3%
Highlights
· Strong build performance with 341 (HY21: 298) construction equivalent
homes built each week^3, an increase of 14.4%.
· Total home completions^3 of 8,067, 11.1% below the prior period,
reflecting the unusually high completions in HY21 due to COVID lockdown
dislocation and a return to the more normal seasonal phasing of completions
across our fiscal year.
· Now on track to deliver total home completions of 18,000 – 18,250 in
FY22 (including 750 JV completions), an increase of 250 homes on previous
guidance and in excess of the total home completions delivered in FY19.
· Continued industry leadership in quality and customer service recognised
through a seventeenth successive 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.
· Significant progress as the leading national sustainable housebuilder
with the completion of the Z House, a unique zero carbon concept home
showcasing the future of sustainable living in the UK; awarded “2021
Sustainable Housebuilder of the Year”; and ranked Top 30 in Glassdoor's “Best
Places to Work 2022″.
- Continued strong cash generation with period end net cash of £1,131.7m
(HY21: £1,106.7m) after significant incremental investment in land and work in
progress. Net indebtedness surplus of £449.4m (HY21: £505.6m) after deducting
land creditors of £682.3m (HY21: £601.1m). - Phased reduction of ordinary dividend cover commenced, with cover
reducing to 2.25x in FY22, 2.0x in FY23 and 1.75x in FY24.Current trading
· Net private reservations per active outlet per average week for January
were 0.90, 16.9% above the 0.77 rate in the equivalent period in 2021,
reflecting continued strong demand. - Strong total forward sales^3 as at 30 January 2022 of 15,736 homes (31
January 2021: 14,289 homes) at a value of £4,109.7m (31 January 2021:
£3,425.8m) with 11,362 homes of these total forward sales either exchanged or
contracted.