Another bumper year looks in prospect for houses builder Barratt Developments PLC (LON:BDEV), with the sales rate in line with fiscal 2016/17 levels.
In a trading statement covering trading this calendar year, Barratt said trading was strong and its outlook for the full-year (to the end of June) remained unchanged.
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Net private reservations per average week edged up to 302 from 299 in the corresponding period of 2017.
The sales rate of 0.8 net private reservations per active outlet per average week has been in line with the previous year.
Total forward sales were at record levels, up 2.5% year-on-year as at May 6 to £3.29bn, versus £3.21bn at the same stage of 2017.
Most of the house builders have been rolling in cash since the government introduced its ‘Help to Buy’ initiative, and Barratt said it expects its net cash position at the end of June to be better than it has previously indicated at around £550mln, down from £723.7mln at the end of June 2017.
“We have a healthy forward order book and a robust balance sheet,” said David Thomas, the chief executive of Barratt.
“We continue to expect to approve the purchase of more than 20,000 plots (FY17: 18,497 plots) in the current financial year,” the company said.
“Strong” trading performance for Barratt Developments https://t.co/iYAEGPql7V pic.twitter.com/xovpqjTe1B
— Insider (@insidereastmids) May 10, 2018
Liberum Capital Markets said the reservation rate of 0.80 per site per week was in line with last year but “a little light” compared to its forecast of 0.82.
“Year-end net cash guidance is raised to £550mln (from £500mln) with spend on land as expected but some reduction in other working capital (which is helpful),” it added.
The shares were up 1.4p at 569.9p.