Barratt Developments reveals a profit jump, despite Brexit concerns in the construction sector…
Housebuilder Barratt Developments has shaken off concerns that it could have felt the impact of the vote to leave the EU after reporting a profit jump.
The firm said it had seen the highest number of completions for eight years, which saw pre-tax profits increase 20.7 per cent.
The data showed a 5.3 per cent increase in completions, growing to 17,319 homes in the year ending 30 June. Profits rose to £682.3m, up from £565.5m in the previous year.
Baratt’s balance sheet also grew 217.43 per cent to £592m in 2016.
Chief executive David Thomas said: “Whilst the outcome of the EU referendum has increased levels of economic and political uncertainty, the group is in a strong position, with a substantial year end net cash balance, healthy forward sales position and an experienced management team.
“The board will continue to monitor the market and economy and take appropriate action where necessary. The wider market for new homes remains healthy across Britain, with a long term undersupply of new homes, strong government support to the sector and a liquid mortgage market.
“Consequently, we remain confident in the strong fundamentals of the housing sector and our business.
“We’re very pleased with where we are in Scotland,” he added.
“Following the EU referendum, it’s been people’s main concern in the market, but the customer is behaving normally and the banks are behaving normally, so our take on that is that we should adopt a business-as-usual stance and get on with buying land, building houses and selling houses.”
