The company generated pre-tax profits of £682.3m for the year to 30 June 2016, up from £565.5m a year earlier.
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“Our sales trends since the start of the new financial year have been encouraging, and underpin an increasingly “business-as-usual” stance whilst we continue to monitor consumer, economic and other lead indicators closely following the European Union referendum vote”.
House builder Barratt Developments made record pre-tax profits in the year to June as its average sale price grew 10% to £289,800. The company previously said it expected pretax profit of GBP680 million.
Barratt Developments said it is “business as usual” following the European Union referendum, pointing to “a long-term under-supply of new homes, strong Government support to the sector and a liquid mortgage market” as the main factors propping up house prices.
Chief Executive David Thomas said the firm would be undertaking a larger scale trial of this house building method this year.
“Consequently, we remain confident in the strong fundamentals of the housing sector and our business”.
Mr Thomas commended the continuation of the help to buy scheme and said the programme running to 2021 gave the company confidence to buy land.
Total forward sales including joint ventures to data this year are up by 4.1% per cent compared to the same stage of 2015.
“Throughout the year the mortgage market remained positive, with increased competition among lenders and new market entrants resulting in good availability of attractive mortgage finance”.
“I remain confident in the fundamentals of the housing sector and of our business”.
“There remains a long term housing shortage of all tenures that can only be addressed through additional supply; we are committed to playing a leading role in addressing this issue without compromising our operational or financial strength”, said the company. He noted that “my overall experience is that it is becoming more streamlined”.
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Shore Capital reaffirmed a “hold” rating on shares of Barratt Developments Plc in a research report on Wednesday, May 11th.
