Barratt Developments reported a 20.7% surge in profits for the year ended 30 June 2016. The housebuilder reported a profit before tax of £682.3 million, compared to £565.5 million for 2015.
“The strong operational and financial performance in FY16 reinforces the progress we have made over the last few years as does our disciplined volume growth,” said David Thomas, Chief Executive of Barratt Developments. “This was underpinned by our fast asset turn model and our industry leading customer service and construction excellence.
“Whilst the outcome of the EU referendum has increased levels of economic and political uncertainty, Barratt Developments is in a strong position, with a substantial year end net cash balance, healthy forward sales position and an experienced management team,” said John Allan, Chairman of Barratt Developments. “The Board will continue to monitor the market and economy and take appropriate action where necessary. The wider market for new homes remains healthy across Britain, with a long-term undersupply of new homes, strong government support to the sector and a liquid mortgage market.
“The UK government continues to recognise the need to see more homes built across the country as evidenced by its policies to improve land availability, planning and support for buyers.
“By increasing the number of homes that we are building, in a disciplined way, we are not only playing our part in reducing the housing shortage but are also generating significant economic activity, creating jobs and enhancing communities. During the year we estimate that we supported over 55,000 jobs either directly, indirectly or induced.”