05 Sep 2018

£m unless otherwise stated1,2 Year ended
30 June 2018		 Year ended
30 June 2017		 Change
Total completions (units)3 17,579 17,395 1.1%
Revenue 4,874.8 4,650.2 4.8%
Gross margin (%) 20.7 20.0 70 bps
Profit from operations 862.6 799.2 7.9%
Operating margin (%) 17.7 17.2 50 bps
Profit before tax 835.5 765.1 9.2%
Basic earnings per share (pence) 66.5 61.3 8.5%
Total dividend per share (pence) 43.8 41.7 5.0%
ROCE (%) 29.6 29.8 (20) bps
Tangible net assets per share (pence) 366 340 7.6%
Net cash 791.3 723.7 9.3%

Highlights

  • Strong financial and operational performance for the full year
  • Leadership of quality and customer service recognised through both 14 consecutive years of achieving more NHBC Pride in the Job Awards than any other housebuilder and receiving the HBF maximum 5 Star customer satisfaction rating for nine consecutive years
  • 50 bps of operational margin improvement as our margin initiatives have started to deliver
  • Profit before tax up by 9.2% to £835.5m
  • 4.7% increase in final ordinary dividend per share to 17.9p (2017: 17.1p) together with 17.3p (2017: 17.3p) special dividend per share, resulting in a total dividend for the financial year of 43.8p (2017: 41.7p)

Medium term targets

  • 3-5% volume growth per annum
  • Land acquisition hurdle rate of a minimum 23% gross margin
  • Minimum 25% ROCE

Current trading

  • Forward sales (including JVs) up 11.1%, as at 2 September 2018 at £3,054.0m (3 September 2017 at £2,749.9m)
  • Net private reservations per active outlet per average week from 1 July were in line with the prior year at 0.75 (FY18: 0.74)

Commenting on the results David Thomas, Chief Executive of Barratt Developments PLC said:

'The Group has had another outstanding year delivering a strong operational and financial performance, and our highest volumes in a decade. As the UK's largest housebuilder we are helping to address the country's housing shortage - creating jobs and supporting economic growth whilst continuing to lead the industry in quality and customer service.

Our continued focus on operating efficiencies and margin initiatives is starting to deliver and we have today announced new medium term operational targets reflecting our confidence in the business going forward.

The Group starts the new financial year in a good position with a strong balance sheet, healthy forward sales and robust consumer demand supported by a positive mortgage environment.'

Certain statements in this document may be forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Accordingly undue reliance should not be placed on forward looking statements.

There will be an analyst and investor meeting at 9.00am today at Deutsche Bank, 1 Great Winchester Street, London, EC2N 2DB. The presentation will be broadcast live on the Barratt Developments corporate website, www.barrattdevelopments.co.uk, from 9.00am today. A playback facility will be available shortly after the presentation has finished.

A listen only function will also be available.

Dial in: 0800 376 7922

International dial in: +44 (0) 207 192 8000

Access code: 2599157

Further copies of this announcement can be downloaded from the Barratt Developments PLC corporate website www.barrattdevelopments.co.uk or by request from the Company Secretary's office at: Barratt Developments PLC, Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.

1 Refer to Glossary for definitions of key financial metrics.

2 Unless otherwise stated, all numbers quoted exclude JVs.

3 Includes JV completions in which the Group has an interest.

For further information please contact:

Barratt Developments PLC
Jessica White, Chief Financial Officer
01530 278 259

Analyst/investor enquiries
 Chloé Barnes, Head of Investor Relations
020 7299 4895

Media enquiries
Tim Collins, Head of Corporate Communications
020 7299 4874

Brunswick
Jonathan Glass/Wendel Verbeek
020 7404 5959

05 Sep 2018 Final Results for the year ended 30 June 2018

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Barratt Developments plc published this content on 05 September 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 05 September 2018 06:11:05 UTC