Barratt Developments has posted interim pre-tax profit of £408m for the six months to 31st December 2018, an increase of 19% on 2017, on revenue up 7% to £2.13bn.
“Operating efficiencies are delivering improved margins and our controlled and disciplined business model means we have a high-quality land bank, strong forward sales, excellent financial position and efficient cash flow generation,” said chief executive David Thomas. “Whilst we continue to monitor market conditions closely, current trading is in line with our expectations and we are confident of delivering a good financial and operational performance in FY19.”
Barratt’s return on capital employed (ROCE) has grown from 14.2% to 29.5% since December 2013, and it expects it to remain at a minimum of 25% over the medium term, Mr Thomas said.
Construction efficiency improvements were attributed to new house-type ranges and the use of so-called modern methods of construction.
Between July and December 2018 Barratt built and sold more than 1,100 homes using timber frame, large format block and light gauge steel frame. It also uses offsite manufactured ground floor solutions and roof cassettes. It aims to use these sorts of modern methods of construction on 20% of homes by 2020.