Barratt Developments saw its profit before tax slump by 75.8% to £170.5m for the financial year ended 30 June 2024.
In the reporting period, the company’s revenue fell 21.7% to £4,168.2m and gross profit fell 47.7% to £509.5m. The number of new homes it completed fell 18.6% to 14,004, which the company said was at the upper end of its expected range for the year.
Barratt said it had entered the 2025 financial year with a “solid forward sales position” with 42% of homes forward sold as of 25 August 2024. However, it added that the housing market remained subdued due to affordability constraints. The housebuilder said it was only likely to finish between 13,000 and 13,500 new homes next year.
David Thomas, chief executive of Barratt Developments, said: “We are pleased to have delivered total home completions at the upper end of our expectations for the year, despite the challenging backdrop. I am grateful to our skilled and dedicated teams of employees, sub-contractors and suppliers for continuing to deliver high quality homes that people want to live in. We were delighted to complete the acquisition of Redrow in August and are now working constructively with the CMA to finalise competition clearance so that we can begin the integration process.
“Whilst demand continues to be sensitive to mortgage affordability, and reduced land buying activity during the past two years has had a near-term impact on the number of outlets we are operating from, we are well-positioned to meet the strong underlying demand for new homes of all tenures in the UK. We welcome the government’s proposed reforms of the planning system as one of the key levers to increase housebuilding, drive economic growth and tackle the chronic undersupply of high-quality, sustainable homes.”
