HOUSEBUILDER BARRATT Developments plans to pay a dividend in 2013 for the first time in five years, it said yesterday, after a drive to build on cheaper land and government moves to support the housing market boosted its annual profit.
Britain’s biggest housebuilder by volume said the country’s housing market remained stable, despite the economic recession.
While the number of house purchases has been hit by a reduction in risky lending by banks, prices have been supported by a shortage of new homes and government schemes, such as its NewBuy project to provide financial help for first-time buyers.
Last week, the government also unveiled reforms to ease planning laws and boost construction.
Barratt said pre-tax profit leapt 159 per cent to £110.7 million in the year to the end of June – ahead of market expectations – on a 14 per cent rise in revenue to £2.32 billion. Profit margins improved to 8.2 per cent from 6.6 per cent a year earlier
The company, which aims to be debt free by the end of its 2015 fiscal year, said net debt halved during the year to £167.7 million.
– (Reuters)
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