Barratt Developments Share Discussion Threads

[taffee] 12/7/2017 11:04

results were good which they should be given all the props builders have..the question is whether its sustainable...outlook was for a bit of growth in completions I believe for next financial year.

Banks all gave record results in 2007

The market is uncertain

[dr_smith] 12/7/2017 09:57

"We expect to meet our FY17 financial targets, set in 2014, of 20% gross profit margin and 25% ROCE, with ROCE expected to increase to around 29% (2016: 27.1%)."

As ROCE is derived from NET profit, how can ROCE be greater than Gross profit?
House inflation is say 1% p.a. so disinclined to believe that accounts for difference.

At a guess, cheap rate loans/finance meaning a higher turnover than otherwise possible on "Capital employed"?

As these are bread and butter figues I am guessing there is a simple answer I am missing.

[shauney2] 12/7/2017 08:52

Cash is well ahead of guidence.Plenty of room for an increase in the special dividends.

[salver2] 12/7/2017 07:55

Barratt have again given a thumping riposte to taffee who has totally missed the last eight years like rip van winkle - please give us more of your collapse - unsustainable blah blah - while I enjoy - a 7.5 percent yield - about 50 percent yield on my original stake and a share that trades on a forward Le of less than nine - happy days - I am not stupid enough to realise that it will last forever ever but you should know when your beaten taffee!!

[the_equaliser] 12/7/2017 07:37

Cannot remember full details
on trading updates

Psn = 5% rise
Bkg or Bwy = 5% rise

Not slowing down in housing sector
Low int rate and no hike by BOE says it all

[the_equaliser] 12/7/2017 07:30

BoE's Broadbent says not ready to hike rates - Press and Journal newspaper

hxxps://uk.investing.com/news/economy-news/boe's-broadbent-says-not-ready-to-hike-rates---press-and-journal-newspaper-501421

[the_equaliser] 12/7/2017 07:28

Forward Sales

:)


Our forward sales position is strong, with total forward sales (including JVs) as at 30 June 2017
at a value of £2,144.4m
(2016: £1,762.0m),

equating to 9,762 plots
(2016: 8,724 plots).

Our wholly owned forward sales were up by 18.8% on the prior year to £1,909.2m (2016: £1,607.2m), equating to 8,953 plots (2016: 8,054 plots).


Barratt FY to be ahead of forecasts

StockMarketWire.com

Barratt Developments expects its pre-tax profits for the year ended 30 June to increase to around £765m - up from £682.3m last time and

ahead of market forecasts.

Barratt said total completions including joint ventures rose to 17,395 (2016: 17,319), the highest level of completions in nine years.

[r ball] 12/7/2017 07:20

It's the outlook that's important. Everything else priced in. Could be a mild profit warning.

[the_equaliser] 12/7/2017 07:15

David Thomas, Chief Executive commented,



"It has been another very strong year for the Group both operationally and financially.

We have delivered our highest number of completions for nine years, more than any other housebuilder, <-----------

and continue to see a positive mortgage environment and strong consumer demand.

[the_equaliser] 12/7/2017 07:11

Very good /strong update

Forward looking sales very good

Highlights
· The UK's largest housebuilder with total completions including joint ventures ('JVs') at 17,395 (2016: 17,319), the highest level of completions in nine years
· Profit before tax expected to increase to around £765m (2016: £682.3m), ahead of market expectations(1)
· Expect to deliver our financial targets set in 2014 of 20% gross profit margin and 25% return on capital employed ('ROCE')(2) for FY17
· Year end net cash(3) balance of c. £720m (30 June 2016: £592.0m), ahead of guidance, driven by strong performance and the timing of land and working capital payments
David Thomas, Chief Executive commented,
"It has been another very strong year for the Group both operationally and financially. We have delivered our highest number of completions for nine years, more than any other housebuilder, and continue to see a positive mortgage environment and strong consumer demand.
Completions (including JVs) for the period were 17,395 units (2016: 17,319 units). Affordable housing represented 20% (2016: 17%) of total completions.
Profit before tax for the period is expected to be around £765m (2016: £682.3m) and ahead of market expectations. We expect to meet our FY17 financial targets, set in 2014, of 20% gross profit margin and 25% ROCE, with ROCE expected to increase to around 29% (2016: 27.1%).
Total average selling price ('ASP') on completions in the year increased by c. 5.9% to c. £275k(4) (2016: £259.7k), with private ASP increasing by c. 8.0% to c. £313k (2016: £289.8k) benefiting from mix changes as well as some underlying house price inflation.
The sales rate for FY17 was 0.72 (2016: 0.69) net private reservations per active outlet per week in the full year and 0.76 (2016: 0.72) in the second half. During the year, we operated from an average of 377 active outlets including JV's (2016: 378).
Capital Structure and Returns
As at 30 June 2017 the Group had a net cash balance of c. £720m (2016: £592.0m), ahead of guidance, driven by strong performance and the timing of land and working capital payments.
We remain committed to our capital return policy announced in February and will announce in September the proposed full year ordinary dividend based on 2.5 times dividend cover. As previously announced, the Board also proposes to pay a special dividend of £175m in November 2017 and 2018. We expect to deliver cash returns of c. £1.4bn(6) of dividends (based on consensus earnings) in the four year period to November 2018.

Outlook
This has been another strong year for the Group and we continue to drive operational improvements through the business, with a particular focus on improving operating margin.

[r ball] 12/7/2017 07:08

Sector read across anyone?

[the_equaliser] 10/7/2017 16:31

THis is from last update
Says it all

Barratt expects FY to be at top end of forecasts
StockMarketWire.com
House builder Barratt Developments expects full-year profit before tax to be at the top of the range of current analyst forecasts.

It said total completions (including joint ventures) were expected to be around 17,350 for the year, the highest number of completions in nine years.

And it said its commitment to build quality and customer service was reflected in the award of the Home Builder Federation's maximum five star customer satisfaction rating for the eighth consecutive year.

Other highlights:

- Sales rate of 0.80 (2016: 0.78) net private reservations per active outlet per average week

- Total forward sales (including JVs) at record levels, up by 12.7% as at 7 May 2017, to £3,205.7m (8 May 2016: £2,844.0m)

- Net cash position at 30 June 2017 now expected to be around £600m

Chief executive David Thomas said: "This has been another strong period both operationally and financially for the group.

"We remain firmly committed to delivering industry leading build quality and customer service, recognised by the award of the Home Builder Federation's maximum five star customer satisfaction rating for the eighth consecutive year.

"Our controlled approach to growth means we are on track to deliver 17,350 completions in the year, the highest number of completions in nine years.

"This, combined with the strong market backdrop, means we now expect full year profit before tax to be at the top of the range of current analyst estimates."

[the_equaliser] 10/7/2017 16:27

Date Broker New target Recomm.
3 Jul Deutsche Bank 703.00 Buy
26 Jun Jefferies... 735.00 Buy

[taffee] 17/6/2017 07:31

Wait til the truth comes out that there is no shortage of property and only 6% of land is built on and its a speculative bubble based on cheap money and props

For the bulls:why have property prices rocketed after 2008/2009 when wages have bearly risen?

[rwlly] 16/6/2017 18:32

I think the top can now safely be called on the housing market. Rising interest rates around the corner and probably a labour government before too long.

[podium] 09/6/2017 08:23

Heh heh- down because of Brexit, now down because... err maybe no hard Brexit. Housebuilders do get a bashing, but gives some nice trading opportunities for what are high yield stocks. Today is another freebie.

[bricktycoon] 09/6/2017 07:46

This will soar to £6.30 today markets blue and Jeremy will push for 50000 new homes buy buy buy gla

[monty panesar] 09/6/2017 06:46

Forget about foreign investment in the UK for 5 years.

Get ready for some pain is my feeling.

[taffee] 09/6/2017 06:20

Oh dear looks like people want change

Never underestimate anything!

[bricktycoon] 08/6/2017 06:21

This will soar on Theresa's win gla £6.20 today buy buy buy the billion dollar upside is about to begin

[bricktycoon] 07/6/2017 16:27

Buy buy buy the billion dollar upside is about to begin get in while u can this about to soar to new highs £10 plus imminent

[robbiereliable] 26/5/2017 07:07

Haha Lauders, I left BOO early as well... Why did I do it? Regarding bubbles, I have mentioned previously about population growth vs. housing growth. There is always more and more demand, and unless house building starts increasing.There are lots of unsold houses, why... Because the builders can afford to keep them at inflated prices knowing that some poor soul will eventually buy at a very close price.For me the only "bubble" that might occur is if the builders decide to get some cash in for faster expansion and temporarily drop prices for a bit. Otherwise it's onwards and upwards. I have held and added to these shares for a long while.

[lauders] 25/5/2017 02:46

Decided to exit my position yesterday. Not really concerned about the company or prospects but more the general market and think I would prefer to be out for now when it comes to housebuilders. Probably the wrong move but feel happier taking my profit and considering something that pays a high yield (like BDEV) but will suffer less if the market takes a beating. Many people are talking of "bubbles" in the market & probably being over cautious. Never wrong to take a profit although I did that with BOO at 120p and now look at them!

[salver2] 18/5/2017 08:18

Or even the short!