Barratt Redrow reports strong FY24 completions, revenue hits £5.8 bln
Investing.com -- Barratt Redrow (LON: BTRW ) on Wednesday reported strong housing completion figures for the fiscal year ending June 30, 2024.
Total (EPA: TTEF ) completions reached 17,724 units, including both private and affordable homes, up from 7,875 in the first half of the year (ending December 31, 2023).
Of the full-year total, 13,500 were private completions, with the remainder being affordable housing.
The home construction company also saw improvement in its private reservation rate, a key indicator of future sales, rising from 0.45 per outlet in the first half to 0.55 for the full year.
Average selling prices varied between private and affordable homes. The private homes had an average selling price of £373,200 in the half-year and £371,100 in the full year.
Affordable homes sold for an average of £178,700 and £175,900 in the respective periods. Across all properties, the average sales price came to £329,100 in the half-year and £324,600 in the full year.
Revenue from housebuilding reached £2.59 billion in the half-year and £5.75 billion for the full year. When including other revenues, such as land sales and partnerships, total revenue stood at £2.61 billion and £5.80 billion for the respective periods.
Gross profit margins showed a contrast between the two companies, with Redrow achieving higher margins than Barratt. The combined gross margin for Barratt Redrow was 16.8% in the half-year and 17.0% in the full year.
Operating profit before adjustments stood at £183.8 million in the half-year and £361.7 million for the full year.
After adjustments, which exclude one-off costs and exceptional items, operating profit was reported at £241.2 million and £571.6 million, respectively. Profit before tax followed a similar pattern, reaching £179.2 million in the half-year and £355.5 million for the full year.
The balance sheet showed strong liquidity, with combined net cash of £1.16 billion at the end of the full year. Land holdings remained a major asset, with total land inventory valued at £4.75 billion as of June 30, 2024.
However, the company also carried liabilities, including land creditors of £633.8 million and provisions for building safety issues totaling £681.2 million.