 saw higher completion rates, higher revenues and more profit for 2017, the company announced on Wednesday.){kind=link}
Barratt Developments (LON:BDEV) continued its successful year with higher completion rates, higher revenues and more profit, the company announced on Wednesday.
The UK’s largest house builder said its average selling price in the year to June 30 rose by 6 percent to £275,200 from the year before.
The FTSE 100 company said pre-tax profits for the year were £765 million, climbing 12.1 percent from £682 million the year previously.
In addition, revenues across the period rose 9.8 percent to £4.7 billion.
The company suggested a final dividend of 17.1p, compared to 12.3p for last year, with a special dividend of 17.3p.
This was facilitated by the company’s strengthened balance sheet, with net cash up 22.2 percent to £723.7 million from £592 million.
Chief Executive David Thomas commented on the update:
“This has been another excellent year for the group. We have delivered a strong operational and financial performance and our highest completion volumes for nine years.
In regards to future outlook, the company did acknowledge potential uncertainty in the London housing market, with higher stamp duty and demanding planning requirements proving a deterrent.
Nevertheless, the group still anticipated “modest growth” into 2018.
“The group starts the new financial year in a good position with a strong balance sheet, healthy forward sales and we continue to see robust consumer demand supported by a positive mortgage environment. We are focused on driving further operational improvements through the business with a particular focus on margin improvement,” he continued.
Despite the record full-year results, shares in the company fell on Wednesday morning, with investors failing to be convinced with Barratt Developments failing to outpace its rivals.
Moreover, concern remains over the effect of the Government’s withdrawal of the Help to Buy Scheme from 2021, which has yet to impact the UK’s housing developers.
As of currently, shares are down 3.38 percent, as the shares balance off rallies earlier on in the year.