Barratt Developments PLC disclosed that although selling prices increased, completions decreased in fiscal 2023. They also anticipate fewer completions in the current fiscal year.
Rise in Selling Prices
In the year ending June 30, Barratt reported that the average selling price rose to £320,000 ($415,616) compared to £300,200 the previous year.
Decrease in Completions
The number of completions, including joint ventures, fell by 3.9% to 17,206 from the previous year’s 17,908.
Decline in Net Private Reservations
Net private reservations per active outlet declined from 0.81 to 0.55 per week compared to the previous year. This decline was attributed to a significant deterioration in demand during the second quarter. Although the situation improved in the third quarter, reservations slowed more than expected from mid-May to the end of June.
Full-Year Adjusted Pretax Profit Expectation
Barratt anticipates that its full-year adjusted pretax profit will align with the market consensus range, amounting to £880.6 million based on estimates from 18 analysts.
Order Book Status
The order book has experienced a decrease but remains stable. As of June 30, forward sales amounted to 8,995 homes, valued at £2.23 billion. This reflects a decline from the previous year’s figures of 13,579 homes valued at £3.62 billion.
Outlook for Fiscal 2024
Barratt projects a reduction of approximately 6% in average active sales outlets for fiscal 2024. Additionally, they anticipate completing between 13,250 and 14,250 homes.