Housebuilder performing well
Barratt says market conditions remain strong
Barratt Developments said market conditions remain strong, with the group trading well since the start of the new financial year.
It said there is good consumer demand for our homes across the country, supported by a positive economic backdrop.
“The Government remains focused on enabling additional housebuilding and it continues to seek to increase supply through improving the planning system and implementing its public land release programme. We will continue to support the Government on its Starter Homes Scheme that is aimed at providing 200,000 homes for first time buyers over the next five years. Help to Buy (Equity Loan), which has been confirmed to run until 2020, remains an important scheme for our customers particularly in helping first time buyers into the market.
“The increasing competition within the mortgage sector has resulted in good availability of attractive mortgage finance, which continues to support consumer demand.
David Thomas, chief executive, said: “Against the backdrop of a significant structural shortage of new homes in Britain, we have made a strong start to the year. Operationally the business is performing well with strong sales, good control of input costs and continued land investment. Our targeted recruitment programme has delivered a further 250 new apprentices, graduates and trainees to the business.
“With our disciplined strategy and focus on achieving efficiencies across the business, we are on track to deliver further good progress in FY16. The outlook is positive and we are driving towards our FY17 targets of at least a 20% gross margin and at least a 25% return on capital employed.”