Week Ahead

Barratt updates ahead of possible interest rate cut

Barratt Developments
Barratt has said nothing since its Redrow deal

Shares in FTSE 100 housebuilder Barratt Developments, which updates on Wednesday, have forged a steady recovery since the chaos of Trussonomics and they have gained nearly 50% since autumn 2022.

Analysts at AJ Bell note that progress has slowed in the past year, with a 15% advance, given uncertainty over when the Bank of England will start to cut interest rates.

However, Bell’s analysts also note that house prices are relatively stable and mortgage approvals are way off their lows, too, “which is something”.

Barratt has said nothing on current trading since its interim results in February and its last official release was the prospectus for its proposed (and recommended) all-stock takeover of FTSE 250 housebuilder Redrow.

At the time of those first-half figures, chief executive David Thomas flagged an improvement in the net private reservation rate per active outlet to 0.60 and refined the company’s guidance completions of 13,500 to 14,000 (compared to the previous range of 13,250 to 14,250).

The headline pre-tax profit number is estimated to drop to £321 million from £705 million.

DIARY

Monday 8 July

  • Trading updates from UNITE, Hunting and Ferrexpo

Tuesday 9 July

  • British Retail Consortium retail sales

Wednesday 10 July

  • Trading update from Barratt Developments, JD Wetherspoon
  • UK bank stress test results from the Bank of England
  • In the US, quarterly results from Manchester United

Thursday 11 July

  • Full-year results from Jet2
  • Trading updates from John Wood, Trustpilot and Renewi
  • UK construction, manufacturing and industrial output
  • US inflation figures
  • US weekly initial unemployment claims

Friday 12 July

  • Trading statements from Vistry and Ashmore


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