Barratt Developments has become the latest housebuilder to report robust trading figures. It reported a 20% rise in annual profit before tax to £682.3 million.

The sector took a hammering after the Brexit vote as investors anticipated a slowdown in property activity, but they have recovered over the last two months.

In a statement, Barratt chief executive David Thomas said: “Barratt starts the new financial year in a good position with a strong balance sheet, good forward sales and an experienced management team.

“Whilst we continue to monitor market conditions closely, current trading trends are positive, and I remain confident in the fundamentals of the housing sector and of our business.”

Highlights

·      Disciplined growth in housing completions, delivering our highest total in eight years

·      Private average selling price increased by 10.4% to £289,800 (2015: £262,500), predominantly reflecting mix

·      Strong growth in profit before tax, up by 20.7% to £682.3m (2015: £565.5m)

·      ROCE up 3.2 ppts to 27.1% (2015: 23.9%), reflecting our fast asset turn model

·      Positive cash generation resulting in strong balance sheet and net cash at 30 June 2016 of £592.0m (2015: £186.5m)

·      Excellent future land opportunities secured with 24,387 plots approved for purchase; controlled land supply of 4.5 years at year end

·      Step up in the delivery of strategic land with 22% (2015: 17%) of completions from strategic land

·      19% increase in final ordinary dividend per share to 12.3p (2015: 10.3p) together with 12.4p special dividend per share

·      Total FY16⁵ capital return of £308m (2015: £250m), equating to 30.7 pence per share (2015: 25.1 pence per share)

Current trading

·      Positive start to the new financial year, with net private reservations per active outlet per average week from 1 July 2016 of 0.75 (2015: 0.71)

·      Total forward sales including JV’s as at 4 September 2016 up by 4.1% compared to last year, at £2,416.5m (6 September 2015: £2,321.9m)