Barratt Developments : Half Year Results

24 Feb 2016

• Completion volumes increased by 9.4%
• Land market remains attractive with £559m (10,967 plots) of land approved for purchase
• ROCE increased by 3.9 percentage points to 25.5% for the 12 months ended 31 December 2015
• Continued focus on Customer Satisfaction - HBF Five Star Customer Satisfaction Award for the 6th consecutive year
• Build Excellence - 81 NHBC Pride in the Job Awards in 2015, more than any other housebuilder for the 11th year in a row

Half year ended 31 December 2015	Half year ended 31 December 2014	Change
Total completions (including JVs)	7,626	6,971	9.4%
Revenue	£1,875.5m	£1,576.3m	19.0%
Gross margin	18.6%	17.4%	1.2 ppts
Profit from operations	£301.8m	£224.1m	34.7%
Operating margin	16.1%	14.2%	1.9 ppts
Profit before tax	£295.0m	£210.2m	40.3%
Basic earnings per share	23.9p	17.0p	40.6%
Interim dividend per share	6.0p	4.8p	25.0%
ROCE	25.5%	21.6%	3.9 ppts

Current Trading and Outlook

• Strong start to the second half with 260 (2015: 279) net private reservations per week at a rate of 0.71 (2015: 0.71) net private reservations per active site per week
• Total forward sales including JVs as at 21 February 2016 up by 13.4% to £2,579.5m (22 February 2015: £2,275.3m)
• Group now expected to have a net cash balance in excess of £250m as at 30 June 2016
• Interim dividend payment of 6.0 pence per share (2015: 4.8 pence per share)
• Capital Return Plan expected to return a total of 67.8 pence per share over the two year period to November 2017

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

'In line with our strategy, we have stepped up the number of completions in the first half and we did this in a disciplined way, both financially and operationally, without compromising on the quality of the homes we're building.

'In the past five years we have increased our annual output by more than 53%, built more than 71,700 homes and approved the investment of over £4.4 billion in new land for housing. The market remains strong as a result of improved mortgage availability and Government support for first time buyers and we will continue to grow in a way that delivers for the needs of homebuyers and shareholders alike.'

Includes joint venture ('JVs') completions in which the Group has an interest

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 for the 12 months to December divided by average net assets adjusted for goodwill and intangibles, tax, cash, loans and borrowings, retirement benefit assets/obligations and derivative financial instruments

Unless otherwise stated all numbers exclude joint ventures

Gross margin is gross profit divided by revenue

Operating margin is profit from operations divided by revenue

All final dividends and the special cash payment programme are subject to shareholder approval

The Half Yearly Financial Report contains certain forward-looking statements about the future outlook for the Group. Although the Directors believe that these statements are based on reasonable assumptions, any such statements should be treated with caution as the future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

There will be an analyst and investor meeting at 9.00am today at Deutsche Bank, 1 Great Winchester Street, London, EC2N 2DB. The meeting will be broadcast live on the Barratt Developments corporate website, www.barrattdevelopments.co.uk. A listen only function will also be available.

Please dial:
UK: 0800 694 0257
International: [phone]
Conference ID: 31517021#

The Half Yearly Financial Report for the six month period ended 31 December 2015 is available from today, 24 February 2016, on the Barratt Developments corporate website, www.barrattdevelopments.co.uk via the following address: www.barrattdevelopments.co.uk/barratt/en/investor/results

Further copies of the 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
Neil Cooper, Chief Financial Officer
020 7299 4862

Abi Genis, Investor Relations Manager
020 7299 4895

For media enquiries, please contact:
Barratt Developments PLC
Patrick Law, Group Corporate Affairs Director
020 7299 4892

Maitland
James Devas
020 7379 5151

24 Feb 2016 Half Year Results

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