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    BDEV   GB0000811801

BARRATT DEVELOPMENTS PLC

(BDEV)
  Report
Delayed London Stock Exchange  -  11:35 2022-12-09 am EST
407.90 GBX   +1.07%
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British homes to stay affordable despite rising rates, Barratt CEO says

02/09/2022 | 02:40am EST
FILE PHOTO: A Barratt homes sign is seen at a Barratt housing development near Haywards Heath

* HY pre-tax profit rises 0.6% to 432.6 mln pounds

* Targets FY home completions of up to 18,250 homes

* Shares rise as much as 4% in morning trade

Feb 9 (Reuters) - British homes will likely remain affordable and demand will stay strong despite a climate of rising interest rates, the head of the UK's largest homebuilder Barratt said on Wednesday.

His comment comes amid signs of a possible lull in a housing market boom amid potential rises in mortgage rates and a growing cost-of-living squeeze, although many London-listed homebuilders have forecast robust demand persisting in the medium term.

Last week, the Bank of England raised interest rates for the second time in two months, with nearly half of its policymakers asking for a bigger rise to contain rampant price pressures, a policy move that could indirectly weaken demand in the housing market.

But Barratt Chief Executive Officer David Thomas said that increased levels of household savings during the pandemic had helped consumers reassess their options, leading to higher transaction levels, and purchasing power has stayed strong.

"Affordability for the consumer is in a relatively good place and that is because interest rates have been and continue to be so low," he told Reuters. "So once we understand that interest rates are rising - and we saw a base rate increase last week ... affordability remains more than historic benchmarks, but we will clearly keep that under review."

Barratt shares gained up to 4% in morning trade after it forecast building up to 18,250 homes in the 2022 fiscal year, 250 more than its previous outlook, which would also cross pre-pandemic volume levels.

The homebuilder posted about a 1% rise in half-yearly pretax profit at 432.6 million pounds ($586.30 million) and also announced an interim dividend of 11.2 pence a share, up from 7.5 pence a year earlier.

"Barratt continues its impeccable delivery with strong H1 margins, a FY volume guidance raise and the introduction of progressively lower dividend cover," analysts at Deutsche Bank said in a note.

The FTSE 100 firm said total forward sales as of Jan. 30 were 4.11 billion pounds, compared with 3.43 billion pounds a year earlier.

Barratt's smaller rivals, Persimmon and Taylor Wimpey, last month forecast strong demand to continue, while midsized players Bellway and Vistry reported healthy trading on robust demand. Countryside Properties unexpectedly reported a weak quarter. (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich and Nick Macfie)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
BARRATT DEVELOPMENTS PLC 1.07% 407.9 Delayed Quote.-46.04%
BELLWAY P.L.C. 0.93% 1951 Delayed Quote.-42.06%
COUE PARTPAR 0.00% 229.8 End-of-day quote.-48.93%
FTSE 100 0.06% 7476.63 Delayed Quote.1.19%
PERSIMMON PLC 0.71% 1282 Delayed Quote.-55.43%
TAYLOR WIMPEY PLC 1.51% 104.3 Delayed Quote.-41.45%
VISTRY GROUP PLC 1.92% 610 Delayed Quote.-49.45%
All news about BARRATT DEVELOPMENTS PLC
02:22aUK housebuilder Berkeley reaffirms annual outlook after interim profit fall
RE
12/07LONDON MARKET MIDDAY: Stocks slide amid risk-off mood after China d..
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12/07LONDON MARKET OPEN: Pharmaceutical stocks led by GSK spare FTSE 100
AN
12/05LONDON BROKER RATINGS: Jefferies cuts Persimmon; BoA cuts GSK
AN
11/28LONDON MARKET OPEN: Stocks down after Covid-19 protests in China
AN
11/25Berenberg Keeps Barratt Developments at Hold, Trims PT
MT
11/25LONDON BROKER RATINGS: UBS cuts Man; RBC prefers Lloyds to NatWest
AN
11/25LONDON MARKET OPEN: European blue-chips edge higher in subdued start
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11/10LONDON MARKET CLOSE: Cooling US inflation triggers risk-on rally
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11/09Analysis-Heavily discounted UK Plc may have further to fall
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More news
Analyst Recommendations on BARRATT DEVELOPMENTS PLC
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Financials
Sales 2023 5 379 M 6 616 M 6 616 M
Net income 2023 679 M 836 M 836 M
Net cash 2023 981 M 1 206 M 1 206 M
P/E ratio 2023 6,05x
Yield 2023 8,47%
Capitalization 4 055 M 4 988 M 4 988 M
EV / Sales 2023 0,57x
EV / Sales 2024 0,64x
Nbr of Employees 6 837
Free-Float 99,0%
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Technical analysis trends BARRATT DEVELOPMENTS PLC
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Income Statement Evolution
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Mean consensus BUY
Number of Analysts 19
Last Close Price 407,90 GBX
Average target price 500,18 GBX
Spread / Average Target 22,6%
EPS Revisions
Managers and Directors
David Fraser Thomas Group Chief Executive Officer & Executive Director
Mike Scott Chief Financial Officer & Executive Director
John Murray Allan Non-Executive Chairman
Steven John Boyes Deputy CEO, COO & Executive Director
Jock Fyfe Lennox Senior Independent Director
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