HOUSEBUILDER Barratt today said a "rapidly improving performance" will result in a full-year profit increase of more than 150%.
The Newcastle group, which was issuing a trading update for the year to the end of June, said its full year revenues would jump by around 14% to an estimated £2,320m, with pre-tax profits before exceptionals of around £110m.
Private forward sales for the new financial year are more than a third higher at £378.4m and the average selling price of a Barratt home has increased to £180,000 from £178,300. Barratt also almost halved its debt compared to the previous year to £170m.
Again, the company said there was “greater robustness” in London and the South East markets.
Group chief executive, Mark Clare, said: “This year has seen a rapidly improving performance across the group and shows that our strategy is delivering, with profits up more than 150% and an almost halving of our net debt.
“We expect to make further good progress in the year ahead thanks to a strong forward order book, with private forward sales up 35% and more higher return land coming into production.”
Despite the general economic gloom and continued constraints on mortgage finance, Barratt said the housing industry has “enjoyed a period of relative market stability” and that it expects further support from the latest Government incentive schemes for first time buyers.