For the year ended 30th June 2019, Barratt made £909.8m profiot before tax (2018: £835.5m) on revenue of £4,763.1m (2018: £4,874.8m).
During the year Barratt completed 7,856 new homes, a 1.6% increase on the previous year’s 17,579. Of these 20% were built using some form of offsite prefabrication or so called ‘modern’ methods of construction (MMC).
“We continue to develop, trial and implement MMC,” said chief executive David Thomas, “building and selling 2,626 homes using timber frame, large format block and light gauge steel frame. We also use offsite manufactured ground floor solutions and roof cassettes.”
He said: “We have achieved our 2020 target of 20% of home completions using MMC a year ahead of schedule. Our new target is to use MMC to build 25% of our homes by 2025.”
Barratt has now built 5,274 homes using timber frame construction over the last three years. Most have been in Scotland but the developer is also increasing its use across England and Wales. In June 2019, Barratt acquired Oregon, one of its key suppliers of timber frames.
“Timber frame construction is a sustainable, low energy method of build manufacture from the world’s most renewable building material and is built in factories to high standards,” David Thomas said.
Barratt Developments’ balance sheet shows year-end net cash of £765.7m (2018: £791.3m), net tangible assets of £3.96bn (2018: £3,7bn and gearing (including land creditors) of 4.9% (2018: 5.5%).
“It has been another outstanding year delivering a strong operational and financial performance,” David Thomas said. “The group’s long term investment in quality and operational excellence continues to drive margin improvements, alongside our highest number of completions for 11 years.”
He added: “Whilst there is increased economic and political uncertainty, we begin the new financial year with a strong forward order book, balance sheet and cash position which we believe provides us with the resilience and flexibility to react to potential changes in the operating environment in FY20 and beyond. We maintain our focus on the delivery of operational improvements across our business, and our commitment to deliver the highest quality homes across the country.”