Barratt Developments PLC on Thursday said it delivered an ‘excellent’ performance for its recently ended financial year, reflecting strong customer demand for homes and the productivity of its sites despite build cost inflation.

For the financial year that ended June 30, the Leicestershire-based property developer said adjusted pretax profit is anticipated to be in the range of £1.05 billion and £1.06 billion, slightly ahead of current market consensus expectations at £1.048 billion, and up from £919.7 million in financial 2021.

Barratt said total home completions returned to pre-pandemic levels, with 17,908 homes completed in the year, up 3.9% from 17,243 homes the year before.

Total forward sales as at June 30 amounted to 13,579 homes at a value of £3.6 million, compared to 13,334 homes at a marginally lower value of £3.5 million on the same date a year ago. Barratt said 72% of these homes in financial 2022 were contractually exchanged.

The UK’s largest housebuilder by volume said it experienced a total build cost inflation of about 6% in financial 2022, in line with previous guidance. ‘Reflecting the continued strength of the market, the impacts of escalating energy costs and fuel cost inflation in relation to transportation, we are currently experiencing total build cost inflation of between 9% and 10%,’ Barratt noted.

Chief Executive David Thomas said: ‘We have delivered an excellent performance this year, reflecting the strong customer demand for our homes and the productivity of our sites. While there are clearly macro-economic uncertainties ahead, the housing market remains robust, our forward order book is strong and we have the resilience and flexibility to react to changes in the operating environment.

‘Our focus remains on addressing the UK’s housing shortage with the high-quality, energy-efficient, sustainable homes and developments which we pride ourselves on building.’

Looking ahead, Barratt said it has significant net cash balances, a well-capitalised balance sheet, and a strong forward sales position. It also said it has ‘clear plans’ to secure both incremental home completion growth and further operating efficiencies in the year ahead.

Shares were down 3.3% at 449.93 pence each on Thursday morning in London.

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