Housebuilder upbeat as it builds on firm foundations

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Housebuilder Barratt Developments is confident it has firm foundations in place to achieve its targets.

The Coalville-headquartered group, which also builds under the David Wilson Homes brand, expects to meet forecasts for the current financial year and achieve its medium-term ambitions.

Barratt’s chief executive David Thomas said: “The positive start to the new financial year has continued in recent weeks with private reservations remaining strong.

“This is particularly encouraging given the significant year on year reduction in Help to Buy reservations and the ending of the stamp duty holiday.”

Barratt says it has not experienced any “significant disruption” to its build programmes from the widespread supply chain issues that have caused disruption in many sectors.

It expects to increase its wholly-owned completions to between 17,000 and 17,250 homes in this financial year with joint ventures adding a further 750 home completions.

It wants to continue to increase housebuilding up towards its current capacity of 20,000 homes.

The group has reported a strong financial position with “a substantial net cash balance and strong forward sales”. It made a surplus of £812m in the year to June on revenues of £4.8bn.

Barratt has also confirmed incoming chief financial officer Mike Scott will join on December 6 as he completes the move from Countryside Properties.