Profit rise and strong demand for properties
Barratt Developments announced record profits before tax of £835m for the year ending June 30, 2018.
By Hull Daily Mail | Posted: 20 Jul 2018
DEMAND for Barratt homes has been “really strong” in East Yorkshire, the company’s regional sales director has announced, as the developer reveals a rise in profits.
Paul Hogan said the company was now focused on “supporting economic growth across the region,” as Barratt Developments announced record profits before tax of £835m for the year ending June 30, 2018.
The news comes just days after tributes were paid to the property developer’s managing director for Yorkshire East Paul Newman, who died suddenly.
Discussing the firm’s sales results Mr Hogan said: “It’s been a very good year for Barratt Developments; delivering the highest number of completions in a decade and achieving a five star award for customer satisfaction for the ninth year in a row, reinforcing our position as the UK’s leading housebuilder.
“Regionally we’ve seen really strong demand across North and East Yorkshire, with many buyers looking to move to, or within, the area to our high-quality new homes.
“As our brand Barratt Homes celebrates its 60th anniversary, and we start our new financial year, our focus is on building much-needed new homes, creating communities and jobs, and supporting economic growth across the region.”
Profits before tax were up by £70m from last year, as Barratt enjoyed a strong end to the financial year.
Paul Newman, managing director of Barratt Developments Yorkshire East, had been with the company for more than 30 years.
Barratt has now said it is confident in the future progress of the group, as it enters a new financial year with “good momentum supported by a strong forward order book.”
Across the country, Barratt completed 17,579 homes in the last year – up from 17,395 in the previous 12 months.
Mr Newman oversaw Barratt in its Yorkshire East area, and the death of the former managing director came as a shock to those within the company.
Speaking about the news, Mike Roberts, regional managing director, northern, at Barratt Developments, said: “We’re incredibly shocked and saddened by the passing of Yorkshire East’s managing director, Paul Newman.
“Paul was a key member of the Barratt team, having joined the company back in 1986 at the age of 16 and then worked his way up to become managing director.
“He was enormously respected and valued by all who knew him. Our thoughts are with his friends, family and colleagues at this extremely difficult time and we thank everyone in advance for respecting their privacy.”
Barratt has flourished in the region in recent months, with eight new sites opening in 2018, creating more than 500 new jobs.
The company has also announced it finished the financial year with a net cash balance of almost £800m – ahead of previously expected figures and substantially above the £723.7m recorded for 2017.
David Thomas, chief executive, said: “It has been a very good year for the group, both operationally and financially, with strong customer demand for our high-quality new homes across our business.
“We begin the new financial year with a healthy forward order book, a strong cash position and a continued focus on delivery of operational improvements across our business. Across the country we are building much-needed new homes, creating jobs and supporting economic growth.”