In a trading update today Barratt said that its pre-tax profits for the year to 30th June 2014 were at the top end of analysts' estimates at around £390m. This is roughly double the £192m profit it made the previous year. Full details will be revealed when the company reports its numbers in September.
The doubling in profits comes on the back of a 13% rise in average sale price and 9% rise in unit completions.
Chief executive Mark Clare said: "The market remains positive with strong demand for new homes across the country. The land we have acquired in the last five years together with our disciplined operating model is delivering a very strong business performance. Our focused approach to land buying will enable us to maintain a land supply of around 4.5 years and support a significant increase in profitability and return on capital employed."
Barratt’s rude health mirrors the success being enjoyed across the sector on the back of what is effectively a subsidy from taxpayers in the form of the government’s Help to Buy programmes. Earlier this week Taylor Wimpey said that nearly half of its new private home sales benefited from Help to Buy equity loans. And Bovis Homes said that it was at record levels of productivity, building 50% more homes this year than last year.
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