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Business & Economy

Record profit at Tyneside-founded housebuilder Barratt Developments

A housebuilder with roots on Tyneside says it is primed for further market success after decade-high sales helped deliver record profit.

Barratt Developments expects annual pre-tax profit to be ahead of market expectations at around £910 million in the year to June 30, which would mark a rise on the £835.5 million in the previous 12-month period.

The business, founded in the 1950s when young accountant Sir Lawrie Barratt built his own four-bedroom home in Newcastle, says its performance comes after strong demand for its properties, with wholly-owned sales up 2.6 per cent to 17,111.

Bosses added its forward sales position is also strong, with total forward sales, including joint ventures, standing at £2.6 billion at June 30, compared to £2.1 billion a year ago.

Chief executive David Thomas said the company, whose developments include estates in Newcastle, Morpeth, Hebburn and Washington, had made strong progress, adding it had also been awarded the Home Builders Federation’s maximum five-star customer satisfaction rating for a tenth year in a row.

He said: “It has been another very good year for the group, both operationally and financially.

“We have delivered our highest number of completions for 11 years, made further improvements to our margin and as the only major housebuilder to be awarded a five-star rating for customer satisfaction for ten years in a row, we continue to lead the industry in quality and customer service.

“We begin the new financial year with a strong forward order book and cash position, continued focus on the delivery of operational improvements across our business, and an ongoing commitment to deliver the highest quality homes across the country.”

Barratt, which runs a divisional office out of Gateshead, has further developments in Stockton-on-Tees, Consett and Spennymoor, County Durham.