Barratt reports troubled second quarter

Leicestershire-headquartered housebuilding giant Barratt has warned investors against a “challenging economic backdrop” as it revealed its half-year results to the end of 2022.

The company says it enjoyed a strong performance because of a “significant” forward order book, but said that the second quarter of the period saw lower reservation rates for future sales.

Barratt said that it has seen some early signs of improvement during January, but that momentum will have to continue before it can be confident that the current economic troubles are easing.

Adjusted profit before tax was up 15.9% at £521.5m and reported profit before tax also rose 15.9% to £501.5m during the 26-week period.

David Thomas, chief executive, said: “Our business remains fundamentally strong, both operationally and financially, with an experienced leadership team, a strong net cash position and a resilient and flexible business model. We are well-placed to navigate the challenges ahead and are focused on driving revenue whilst taking a decisive and disciplined approach to costs. As always, our priority is delivering excellent quality and service for our customers.”