HOUSEBUILDER Barratt says 2010/11 has been a year of recovery for the business in which it has made “considerable progress in rebuilding profitability”.

The Newcastle-founded company’s sales remained flat at £2,035.4m in the 12 months to the end of June but there was a 50% increase in profits before exceptional items to £135.0m.

After exceptionals, which included the cost of arranging a group refinancing deal, Barratt made a pre-tax loss of £11.5m, much reduced from last year’s £162.9m loss.

Chief executive Mark Clare said: “We have made considerable progress in rebuilding profitability - by optimising selling prices, improving operational efficiency and securing new higher margin land.

“Whilst we expect progress to continue, further recovery in the housing market remains dependent on improving economic conditions and the ability of our customers to secure mortgage finance.”

There was a slight fall in the number of deals completed from 11,377 to 11,171 but the average selling price rose by 7.4% to £198,900.

Chairman Bob Lawson said: “We have returned to profit before exceptional items which is an important milestone.

“We recognise that economic uncertainty and mortgage availability will continue to influence the housing market.

“However, we have a skilled workforce, an evolving land bank and a strengthened financial position.”