Barratt Looking to Open 110 Sites in next 6 Months

Barratt Developments issued an 6 month trading Statement today giving details of  its half year trading to End of December 2010 including details of Plot sales and land purchases with them looking to open 110 new sites in the next six months (net gain after closure of finished sites of 60 sites). The agreement of terms on 57 sites equating to a total of  6,078 plots (£318.0m of land purchases) in the last 6 months.

The relevant sections of the Statement are given below but a full copy showing the previous 18 months of land deal totals can be obtained from the link to their site and report given at the bottom of this post.

Barratt Developments PLC

TRADING UPDATE

Barratt Developments PLC is today issuing a trading update for the Company and its subsidiary undertakings (“the Group”) for the six months to 31 December 2010 (“the period”) ahead of its interim results announcement.

“The Group has delivered a significant improvement in both average selling prices and operating margin even though sales volumes have been affected by difficult trading conditions.  We are on course to make further progress in the second half as we open new higher margin sites and continue to be value and quality focused.” 

Trading 

During the period the Group operated from an average of 352 active sites, down from 368 for the equivalent period in the prior year and 353 in the second half of FY 2009/10.  The Group opened 79 active sites and closed 52 active sites, resulting in a net increase in active sites to 366 as at 31 December 2010.  In the second half we expect to open a further c. 110 sites, and taking into account site closures, the net increase in active sites as at 30 June 2011 is expected to be c. 60, taking active sites at 30 June 2011 to c. 400. 

Net private reservations per active site per week were down in the period at 0.39 (H1 2009/10: 0.49), reflecting weaker customer sentiment.  The cancellation rate for the first half was 20.1% (H1 2009/10: 17.8%). 

Total completions (Note 1) for the period were 4,832 units (H1 2009/10: 5,053) with private completions of 3,669 (H1 2009/10: 4,381), social housing completions of 1,127 (H1 2009/10: 647) and joint venture completions of 36 (H1 2009/10: 25).  Social housing accounted for 23.5% (H1 2009/10: 12.9%) of completions (excluding joint ventures). The social housing mix has increased due to the higher level of new site openings over the past twelve months and the phasing of social delivery upon existing sites… 

Given the constraints on mortgage finance, particularly at higher loan to value ratios, shared equity products have remained an important part of our sales mix.  In the period, total shared equity product represented 28% of completions (H1 2009/10: 27%).  Of these completions, 537 (H1 2009/10: 754) used the Government HomeBuy Direct initiative and the remainder used our own schemes.  We have also targeted and achieved an increase in part-exchange, with 13% (H1 2009/10: 10%) of our completions supported by this in the period.  We continue to manage our part-exchange stock effectively.

Land and planning

During the first half we have continued to pursue land opportunities where they provided attractive returns.

In the six months to 31 December 2010 we have agreed terms on £318.0m of land purchases equating to a total of 57 sites and 6,078 plots, of which 81% are for houses (Note 4).  For the full year 2010/11 we anticipate agreeing terms on around 8,000 plots (mid 2009 to June 2010: 13,359 plots).

The majority of the Group’s landbank already has outline or detailed planning consent.  Specifically the Group has detailed planning consent for 100% of budgeted volumes for FY 2010/11.  For FY 2011/12, 86% of budgeted volumes have detailed planning consent, with a further 7% having outline planning consent.

The Group’s owned land bank totalled around 50,800 plots as at 31 December 2010 (2009: 50,990).  This equates to approximately 4.5 years supply based on FY 2009/10 completion volumes.

Stock and work in progress

Stock and work in progress have been tightly controlled throughout the period.  Unreserved stock units as at 31 December 2010 totalled 837 (2009: 691), 2.3 units per active site (2009: 1.9 units).

A full copy of the statement from Barratts can be obtained from their website http://www.barrattdevelopments.co.uk/barratt/en/home or the following link Statement Report

Andrew Fella at Onyx Construction Consultants is pleased to have counted Barratt as one of his first Clients when he first went freelance many years ago helping them set up their new offices in the Eastern Region at Brentwood before they moved to new premises at Chelmsford a couple of years later having out grown the old offices. Its great to see some of the guys are still there and getting the job done.

If you are a house builder and need  assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Barratts then contact Andrew Fella at Onyx Construction Consultants Ltd

UK’s 20 Biggest House Builders by Turnover

The Top 20 house builders league table ranks the UK’s 20 biggest house builders by turnover and profit.

2010 Rank by turnover

2010 Rank by profit

Company

Latest turnover (£m)

Previous turnover (£m)

Latest pre-tax profit (£m)

Previous pre-tax profit (£m)

Latest margin (%)

Previous margin (%)

2009 Rank by Turnover

2009 Rank by Profit

1

20

Taylor Wimpey

2,596

3,468

-700

-1,970

-27.0

-56.8

2

25

2

19

Barratt

2,285

3,555

-679

137

-29.7

3.9

1

2

3

2

Persimmon

1,421

1,755

77.8

-780

5.5

-44.4

3

24

4

12

Bellway

684

1,150

-36.6

34.8

-5.4

3.0

4

4

5

1

Berkeley

615

702

110

120

17.9

17.1

5

1

6

8

Bloor *

311

335

-1.5

-51.9

-0.5

-15.5

13

18

7

17

Miller

310

646

-157

52.9

-50.6

8.2

12

21

8

16

Redrow

302

650

-141

-194

-46.7

-29.8

7

22

9

6

Bovis Homes

282

282

4.8

-78.7

1.7

-27.9

15

20

10

10

Stewart Milne

276

420

-27

25.1

-9.8

6.0

11

6

11

13

Crest Nicholson **

238

544

-50.7

-383

-21.3

-70.4

8

23

12

14

Galliford Try

235

486

-53.8

10.6

-22.9

2.2

6

8

13

3

McCarthy & Stone ***

226

457

19

114

8.4

24.9

10

3

14

7

Fairview

224

223

0.4

-32.3

0.2

-14.5

17

17

15

9

Countryside

188

518

-25.7

26.5

-13.7

5.1

9

5

16

11

Cala

168

175

-33.9

-266

-20.2

-152.0

14

11

17

5

Telford

159

107

7.3

4.3

4.6

4.0

24

12

18

15

Kier

151

312

-62.4

-21.2

-41.3

-6.8

16

15

19

18

McInerney

127

256

-164

-175

-129.1

-68.4

22

14

20

4

Morris

112

163

11.9

17.3

10.6

10.6

18

9

Totals

10,910

16,204

(1,901)

(3,410)

All companies ranked according to their most recently filed accounts.

For more details on how Onyx Consultants Ltd and its Onyx Construction Marketing can help you do more work for the top house builders contact Andrew Fella 01473 743682 or visit the Onyx Website for more details.

%d bloggers like this: