Press Releases
10 Sep 2014
Final Results for the year ended 30 June 2014 A year of outstanding progress
£m unless otherwise stated Year ended
30 June 2014 		Year ended
30 June 20131 		Change
Total completions2 (plots) 14,838 13,663 8.6%
Revenue 3,157.0 2,606.2 21.1%
Profit from operations3 409.8 252.7 62.2%
Operating margin4 (%) 13.0 9.7 330bps
Profit before tax5 390.6 192.0 103.4%
Basic earnings per share (pence) 31.2 7.7 305.2%
Total ordinary dividend per share (pence) 10.3 2.5 312.0%
Return on capital employed6 (%) 19.5 11.5 800bps

Highlights

  • Significant increase in housing completions with the Group7 responding to sustained strength in consumer demand across all areas of the country
  • Private average selling price increased by 12.9% to £241,600 (2013: £213,900) driven by further changes in mix and some house price inflation
  • Profit before tax more than doubled to £390.6m (2013: £192.0m before exceptional items)
  • Strong cash generation resulting in net cash at 30 June 2014 of £73.1m (2013: £25.9m net debt), the first net cash position for eight years
  • Continue to secure excellent land opportunities approving 21,478 plots for purchase and increased Group's controlled land supply to 4.7 years

Return on capital employed target and medium term Capital Return Plan

  • ROCE up 800 basis points to 19.5% (2013: 11.5%) with new ROCE target set of at least 25% for FY17 
  • Ordinary dividend set at three times cover with final dividend proposed of 7.1 pence per share, giving a total ordinary dividend of 10.3 pence per share
  • Special cash payment programme expected to return an incremental £400m to shareholders in the three years to FY17, with the first payment of £100m in November 2015

Outlook

  • A return to more normal seasonal trends following exceptionally high levels of activity post the launch of Help to Buy in April 2013
  • Private forward sales as at 7 September 2014 at £1,145.6m (2013: £880.4m) up 30.1% on the same point last year

Commenting on the results Mark Clare, Group Chief Executive of Barratt Developments PLC said:

"This significant improvement in performance has been driven by the £3.8bn we have committed to land investment since mid-2009, together with the recovering market and improvements in design, quality and efficiency. Our disciplined approach will support a further significant increase in performance this year and we are now targeting a return on capital of at least 25% by FY17. Our special cash payment programme for the next three years combined with our ordinary dividend, is expected to return around £950m of cash to our shareholders."

1 Comparatives restated where applicable following the adoption of IAS 19 (Revised) 'Employee Benefits' in the year
2 Includes joint venture ('JV') completions in which the Group has an interest
3 Year ended 30 June 2013 profit from operations before exceptional items £252.7m, profit from operations £249.9m
4 Operating margin is profit from operations divided by revenue
5 Year ended 30 June 2013 profit before tax before exceptional items £192.0m, profit before tax £104.5m
6 Return on capital employed ('ROCE') is calculated as earnings before interest, tax, operating charges relating to the defined benefit pension scheme and operating exceptional items, divided by average net assets adjusted for goodwill and intangibles, tax, cash, loans and borrowings, retirement benefit obligations and derivative financial instruments
7 In this Annual Results Announcement, Barratt Developments PLC is defined as the 'Company' and together with its subsidiary undertakings is defined as the 'Group'

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 953 1287
International dial in: +44 (0) 1452 560 297
Access code: 84241416#

Further copies of this announcement can be obtained from the Company Secretary's office at: Barratt Developments PLC, Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.

For further information please contact:

Barratt Developments PLC
David Thomas, Group Finance Director 
020 7299 4896

Analyst/investor enquiries
Susie Bell, Head of Investor Relations
020 7299 4880

Media enquiries
Patrick Law, Group Corporate Affairs Director
020 7299 4892

Liz Morley, Maitland
020 7379 5151

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