Barratt Developments reports 45 per cent rise profits

Barratt HomesHousebuilder Barratt Developments has said it is to report a better-than-expected 45 per cent rise in profit for the year to end June after it completed more homes than forecast, and helped by house price inflation.

The group rose 4.4 per cent, or 26p, to 620.5p after telling investors that it expects a 45 per cent rise in annual profits to about £565 million.

The company said the pre-tax profit would beat a market consensus of £555 million and expected further progress in its 2016 financial year.

“The fundamentals for the market remain very positive,” it said.

Chief executive David Thomas said: “The housing market has remained strong and our operating performance has been very good.”

Barratt said the land market remains attractive and it continues to acquire options over strategic land.

Shares in Persimmon rose 78p, or 4 per cent, to 1,954p on the news and Taylor Wimpey lifted nearly 5 per cent, or 8.7p, at 184.9p.

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