Barratt Developments profits jump 41 per cent to £576.8m

Barratt Developments, the UK's third-largest homebuilder by market value, reported a 41 per cent increase in full-year profit as property values gained and demand remained strong.

Profit from operations jumped to £576.8 million in the 12 months to the end June, from £409.8 million a year earlier, the company said yesterday. Revenue climbed 19 per cent to £3.76 billion.

Total house completions rose 11 per cent to 16,447 during the period, as the company took advantage of rising house prices across the UK. "The market is strong," chief executive David Thomas said. "We're continuing to invest, buying new land, opening sites and employing more people."

Barratt is on track to meet its 2017 fiscal targets of 20 per cent gross margin and a 25 per cent return on capital employed, he said. – Bloomberg