Barratt Developments : 2023 Annual Report and Accounts

We are

leading the future

of housebuilding

Annual Report and Accounts 2023

Alternative performance measures

Non-financial and sustainability information statement	Our fifth integrated report
The information below is intended to help stakeholders understand	We are committed to being a sustainable and responsible
our position on these key non-financial matters. We have		business. This is demonstrated in this integrated Annual
considered these non-financial matters and disclosed in the		Report. Our focus is the connection of economic, environmental,
relevant sections, when determining what information should		social and governance matters to create and preserve long-
be included in the Annual Report and Accounts, the information		term value for all our stakeholders.
needs of different stakeholders and their relative importance as		For a detailed description of our approach to integrated
well as the relevant time horizons in each matter. The following
	reporting, go to the Appendix on page 243.
complies with the non-financial reporting requirements contained
in Sections 414CA and 414CB of the Companies Act 2006.		Notice regarding limitations on Directors' liability
Description of the business model		under English law
Our business summary	12	Under the Companies Act 2006, a safe harbour limits the
Our business model	14	liability of Directors in respect of statements in, and omissions
Non-financial key performance indicators relevant to		from, the Strategic Report contained on pages 2 to 100 and the
the company's business	16	Directors' Report contained on pages 101 to 171. Under English
Social matters		Law, the Directors would be liable to the Company (but not to
	any third party) if the Strategic Report and/or the Directors'
Market review	20
Report contains errors as a result of recklessness or knowing
Our sustainability focus areas	40	misstatement or dishonest concealment of a material fact, but
Affordability	30	would not otherwise be liable.

Employees

Development and training

Diversity

Wellbeing

Employee engagement

Gender pay gap

Board diversity

Human rights

Human rights

Third parties

Anti-bribery and corruption

Group policy

Working with suppliers

Environmental matters

Climate-related financial disclosures Waste

Building sustainably

Greenhouse gas emissions disclosure

Policy, due diligence and outcomes

Risk management

Principal risks

Long-term viability statement

Audit Committee Report

36	Strategic Report and Directors' Report
Pages 2 to 100 inclusive, and the Non-financial and
38
sustainability information statement here, comprise the
38
35	Strategic Report, and pages 101 to 171 inclusive comprise the
37	Directors' Report, both of which have been drawn up and
84	presented in accordance with, and in reliance on, English
	Company Law. The liabilities of the Directors in connection with
	the reports shall be subject to the limitations and restrictions
39	provided by such law.
39	Cautionary statement regarding
39	forward-looking statements
The Group's reports, including this document and written
39	information released, or oral statements made, to the public

	in future by or on behalf of the Group, may contain forward-looking
78	statements. Although the Group believes that its expectations
are based on reasonable assumptions, any statements about
33
future outlook may be influenced by factors that could cause
40
actual outcomes and results to be materially different. Nothing
97
contained in this Annual Report or on the Group's website
	should be construed as a profit forecast or an invitation to deal

71 in the securities of the Company.

73

99

124 In addition to the Group using a variety of statutory performance measures it also measures performance using alternative performance measures (APMs). Definitions of the APMs and reconciliations to the equivalent statutory measures are detailed on pages 235 to 237. The definition of net cash is included in note 18 of the Financial Statements.

Cover image 1: Orchards Rise, Swindon

Cover image 2: Victoria Chalmers, Site Manager at Hopecroft and NHBC Pride in the Job Award winner

We are leading the future of housebuilding for our customers

96

NHBC Pride in the Job Quality Awards

Strategic Report
Highlights	8
Investment case	9
Chair's Statement	10
At a glance	12
Business model	14
Key performance indicators	16
Marketplace	20
Chief Executive's Statement	23
Our strategy	29
Building sustainably	40
Section 172	50
Stakeholder engagement	54
Chief Financial Officer's review	66
Risk management	71
Climate-related risks and opportunities	78
Viability Statement	99

Corporate Governance		Financial Statements
Board of Directors and Company Secretary	102	Independent Auditor's Report	173
Executive Committee	106	Consolidated Income Statement and
Regional Managing Directors	107	Consolidated Statement of
Corporate Governance Report	108	Comprehensive Income	182
Nomination Committee Report	116	Statement of Changes in Shareholders'
Audit Committee Report	124	Equity - Group	183
Safety, Health and Environment		Statement of Changes in Shareholders'
Committee Report	133	Equity - Company	184
Remuneration Report	137	Balance Sheets	185
Other statutory disclosures	169	Cash Flow Statements	186
Statement of Directors' Responsibilities	171	Notes to the Financial Statements	188
		Definitions of alternative
		performance measures and
		reconciliation to IFRS (unaudited)	235
		Five-year record (unaudited)	238
		Glossary	240
		Integrated reporting approach	243
		Group advisers and Company information	244

Interactive report

See page

QR codes for more

Tap to move to

information online

allocated page

www.barrattdevelopments.co.uk

Strategic Report G F

Tap to move between sections

Barratt Developments PLC Annual Report and Accounts 2023

1

Strategic Report	G	F

Sustainability

We are determined to be the leading national sustainable housebuilder.

We were recognised on the CDP Climate Change A List for Leadership, one of fewer than 300 companies worldwide. We believe that fundamental to building quality homes is building a positive environmental, social and economic legacy for future generations. This is reflected in our ambitious targets

and clear plans and actions.

Leadi

Employees committed to excellence

Our site managers compete every year to secure industry-wide recognition for their management

of excellent site standards and build quality, through the Pride in the Job Awards. Our site managers won

96 awards in 2023 - more than any other housebuilder for the 19th year running.

96

Pride in the Job Awards

2 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report	G	F

Build quality

Build quality is monitored across our developments by the NHBC. There are five key stages in the home building process, each marked by NHBC inspections and the logging of reportable items, (RIs). Barratt has delivered the lowest rate of RIs across the major housebuilders consistently for each of the last four years, highlighting our focus on build quality controls and high standards across our developments.

0.16

reportable items (RIs) in FY23

ngSee page 33

Scale

We are the largest housebuilder in the UK with our operations spanning England, Scotland and Wales and encompassing both greenfield development and brownfield regeneration activities. Through our network of 29 divisions, we deliver more homes than any other housebuilder across the UK.

17,206

homes completed in FY23

Building at scale and great customer service is at the heart of what we do

Everything was perfect and as we wanted it."

Francesca and Jordan,

Barratt customers

Barratt Developments PLC Annual Report and Accounts 2023

3