Barratt Developments has reported a rise in half-year sales and profits as it continues to shrug off Brexit pressures hitting the wider property market.
The country’s largest housebuilder posted a 7.2% rise in revenues to £2.1 billion in the six months to December 31, while pre-tax profits jumped 19.1% to £408 million.
Barratt, which operates nationwide, said demand continues to be supported by the Government’s Help to Buy initiative for first-time buyers, as well as the wide availability of “attractive” mortgage finance.
Chief executive David Thomas said: “The group has delivered a strong operational and financial performance across the half year.
“Operating efficiencies are delivering improved margins and our controlled and disciplined business model means we have a high-quality land bank, strong forward sales, excellent financial position and efficient cash flow generation.”
Completions in the first half came in at 7,622 homes, up 4.1%, while the average selling price of homes was broadly flat at £282,200.
Total forward sales were up 7.3% at £3 billion and the outlook for the full year remains in line with expectations.
On Brexit, Barratt said it is working with suppliers to ensure the “continuity of supply of non-UK manufactured components”, as it seeks to mitigate chaos at ports in the event of a disorderly exit.
However, despite the wider economic uncertainty that Brexit is bringing, Barratt insisted it is in a strong position.
Mr Thomas added: “Whilst we continue to monitor market conditions closely, current trading is in line with our expectations and we are confident of delivering a good financial and operational performance in full year 2019.”
The stellar results come despite a string of rivals such as Crest, Telford Homes and Bellway sounding the alarm bell over Brexit.
Telford has cautioned that Brexit sentiment is affecting demand for homes costing above £600,000, with buyers adopting a “wait and see” approach as Britain’s exit day looms.
Newcastle-based Bellway flagged worries over the threat of a Brexit hit to spring’s busy selling season.