RNS Number:0679Q
Barratt Developments PLC
24 September 2003




                      BARRATT DEVELOPMENTS PLC

                PRELIMINARY RESULTS TO 30TH JUNE 2003


                        CHAIRMAN'S STATEMENT

The Barratt Group has yet again delivered record results with pre-
tax profit rising to #288.7m and earnings per share increased by
30%.  This outstanding performance extends to 11 years our record of
uninterrupted and consistent growth, increasing earnings per share
by over 20% per year.

We are also well placed to continue this progress.  We ended the
financial year with record forward sales of #800m, up 29%.  With
sales progress since 1st July, forward sales now stand at #880m
which, together with completions to date, already secures 60% of our
full year projection and gives us great confidence for the year
ahead.

Group results for the year ended 30th June 2003 are as follows:-

*    Pre-tax profit amounted to #288.7m against #220.0m the previous
     year, an increase of 31%.

*    Basic earnings per share amounted to 89.1p against 68.6p the
     previous year, an increase of 30%.

*    Final dividend of 12.32p per share will be recommended against
     9.89p the previous year, giving a total dividend for the year of
     17.26p, an increase of 20%, 5.2 times covered.  This rate of
     increase, which is higher than the recent historic growth in our
     dividends, reflects the confidence of the Board.

*    Turnover rose to #2,171m against #1,799m the previous year, an
     increase of 21%.

*    UK completions rose to 13,304, up 9% at an average selling
     price of #152,800, up 12.8%.

*    UK land stocks increased from 40,050 plots to 45,300 plots,
     equating to over 3 years' current volume.

*    Net cash in hand at the year end amounted to #82m, which
     highlights the emphasis placed on cash management.  This continued
     strong balance sheet position was achieved notwithstanding a #290m
     increased investment in our land stocks and work in progress.

*    Return on capital employed was 34%, maintaining our position
     amongst the highest in the industry.



These excellent results illustrate how we have again
strengthened the key aspects of our business.

We continue to benefit from our total geographic spread and by
selling to all market sectors, at prices from #70,000 to
#1.5m, with an average price of #152,800.   All our markets
remain sound and we produced increased sales and profits in
all regions.  The market overall continues to perform
satisfactorily and in line with our expectations.  Demand is
underpinned by low interest rates, low unemployment and
restricted supply due to planning constraints.

We continue to demonstrate our commitment and ability to grow
the business organically, which is largely attributable to our
land-buying and planning skills.  This has enabled us to
progressively strengthen our land bank - essential in view of
planning delays.

Our operation in Southern California, USA, continues to make
sound progress with operating profits up over 50% to #10.7m on
turnover up 2% to #126.3m.

On 1st July 2003 we were pleased to announce the appointment
of Harold Walker, the Chairman of our Central Region, as
Deputy Chief Executive.  In addition, Clive Fenton, who was
formerly Managing Director of our West London division, was
appointed to the Board as Chairman of our Southern Region.

Our strong management team has once again demonstrated its
ability to succeed and on behalf of the Board I would like to
thank all my colleagues throughout the Group, both office and
site based.  Our record results reflect their hard work,
enthusiasm and skill.

Looking ahead, we are extremely well-placed to build on our
proven track record and we have confidence for the future.
Low interest rates, continuing affordability and a more normal
and sustainable market have added welcome stability.
Difficulties in the current planning system ensure the supply
of new homes cannot meet demand and this will continue to
underpin the market.  We will continue to benefit from our
full geographic coverage and wide product range, supported by
increased selling outlets, our strong forward sales of over
#880m, together with one of the largest developable land banks
in the industry.



Charles Toner
Chairman


CHIEF EXECUTIVE'S OPERATIONAL REVIEW

UK HOUSING

I am very pleased to report that our team across the country
has produced yet another successful year for the Barratt
Group.  We again demonstrated the fundamental strengths which
underpin our success and drive our business forward, with all
key financial statistics improving for the 11th consecutive
year.  Our record of consistent organic growth is unrivalled
in the house-building industry.

We completed 13,304 new homes in the UK, 9% ahead of last year
at a time when industry completions continued to lag well
behind need.  These helped generate Group turnover to a new
record of #2,171m, up 21% which, together with further
improvements in our margin, produced record pre-tax profit of
#288.7m, 31% better than last year.


The operating profits of our core UK housing activity rose 30%
to #290.5m and our operating margin continued its improvement
to 14.3%.  This was due to a high sales rate, together with
improvement in sales revenues, strong control of all overhead
and building costs and improved land acquisition criteria.

Our average selling price for private sales rose to #158,600,
up 13.6% against #139,600 last year, which was partly due to
increased completions south of the Midlands.  Our wide
geographic spread has, however, a healthy balance throughout
the country with 50% in the North and Midlands and 50% in the
South.

As always, all overheads are strictly controlled and
administration overheads were maintained at 3% of revenue,
amongst the lowest in the industry, and construction cost
increases are being contained.  Last year they amounted to
5.4% and they are again not expected to exceed that in the
current financial year.

HOUSING MARKET

All of our regional markets have remained active and produced
improved performance, including London and the South East.
Sales activity across the country has been encouraging since
the beginning of the new financial year and in line with our
objectives.   We have a limited exposure to the higher priced
Central London market but there has been renewed sales
activity there in recent months.

The demand for new homes is supported by low interest rates,
good employment levels and the serious constraint on supply
caused by continuing delays within the planning system.

Whilst the fundamentals remain sound, our Group activities
benefit from a number of other factors which consistently
assist our performance and provide added protection from
fluctuations in the market.

GEOGRAPHIC AND PRODUCT DIVERSITY

We greatly benefit from our total geographic spread.  We have
33 operating divisions throughout England, Scotland and Wales
run by local men and women with good knowledge of their local
markets and sensitive to local needs.  In addition, our policy
of building homes serving all market sectors, but with an
emphasis on affordability, maximises our opportunities to
appeal to the widest range of buyers.  It also prevents an
over-dependence on any market sector and increases our ability
to adjust production in line with any market changes.

URBAN REGENERATION

We remain industry leaders in the redevelopment of Britain's
towns and cities with experience stretching back over 25 years
- well before it became fashionable.  Over 75% of our homes
are built on brownfield sites, comfortably exceeding the
Government's 60% urban regeneration target.  The Group is,
therefore, well positioned to maximise on the challenges of
the current planning regime and Government's emphasis on urban
regeneration.

LAND AND PLANNING

Our success in consistently growing our business organically
is very much due to our land acquisition and planning skills.
These have enabled us to continue to strengthen both the size
and quality of our land bank.  During the year we acquired a
record 18,554 plots, 39% more than we used, increasing our
total UK land stocks to 45,300.  This represents over 3 years'
volume and is in line with our requirements.  In addition, we
have 10,000 plots agreed subject to contract.  This amounts to
over 55,000 plots secured and being processed, equal to over 4
years' supply.

Our land and planning teams were again highly successful,
despite a difficult planning environment, bringing a record
21,000 plots through to planning consent, on 300 sites, more
than sufficient to service our requirements in the new
financial year and maintaining our land bank as one of the
largest developable in the industry.  This is reflected in our
selling outlets, which increased by 6% to 408 at the
commencement of this financial year and has since increased to
415 today.

PARTNERSHIPS

For many years, Barratt has also been at the forefront of
providing affordable housing.  In the year just ended we
completed over 1,000 homes for our Housing Association
partners.

There is a large and growing shortage of low cost homes and
our network of  local divisions ensures we are well placed to
help satisfy this ever growing need.  Indeed, we have recently
agreed more than 80 new social housing partnerships across
Britain to provide over 2,000 new homes for rent and shared
ownership, worth over #170m.  These will be built over the
next 2 years and more are under negotiation.

USA

Barratt American, which operates in Southern California,
continued to make sound progress in the year.  598 homes were
completed, up 19%, generating turnover of #126.3m, up 2% and
operating profit of #10.7m, up 53%.  Local market conditions
remain favourable with restricted supply, low interest rates
and strong demand.  Our continued focus on a diverse product
range with an emphasis on affordable product remains highly
successful, producing increased returns which more than
compensate for the planned lower average selling price.  Sales
since 1st July continue to show a healthy increase.  Our
strategic emphasis on controlled re-investment in the better
markets of Southern California with an affordable average
selling price, coupled with our strong forward order book,
gives confidence for another successful year.

SKILLS TRAINING

The industry has still not recovered from the departure of
thousands of skilled workers in the early 90s and the
resulting skills and labour shortages continue to constrain
the house-building and the wider construction industry.  To
help counter this, some years ago we established our Group
apprentice programme and, reflecting our substantial and
ongoing investment in developing future skills, this programme
has now grown to over 400 apprentices nationwide.  This is
already the largest in the industry and we plan to extend this
further.  In addition, we have recently established a graduate
training scheme with 35 graduates already on fast-track career
paths.  We plan to increase this to 50 during 2004.  We are
greatly encouraged by the attitude and performance of these
young recruits, many of whom are already progressing within
the Group.

LOOKING FORWARD

We have an unrivalled track record in the industry and we are
in a good position to continue our growth.  Our forward sales
are strong, the market across the country remains sound and
sufficient for us to achieve our goals.  We are confident our
fundamental strengths of geographic spread and diverse product
mix present us with not only more development opportunities,
but also greater insulation from any market fluctuations.

We have a strong balance sheet, low gearing and a high return
on capital.  Our urban renewal skills, our planning successes
and the quality of our land bank are also great assets and the
strengths needed to prosper in the years ahead.  These,
together with the strength of our management teams across the
Group, give us confidence for the future.




David Pretty
Group Chief Executive
24th September 2003



For further information:

Mr C A Dearlove       OR                      Ms C Lynch/Mr T Garrett
Group Finance Director                        Weber Shandwick Square Mile
Barratt Developments PLC                      Tel: 020 7067 0700
Tel:020 7067 0700 (24th September)
    0191 286 6811 (thereafter)

Further copies of the announcement can be obtained from the

Company's Registered Office:

Barratt Developments PLC, Wingrove House, Ponteland Road,

Newcastle upon Tyne NE5 3DP





The following are the unaudited results of the Group for the year ended 30th June 2003.

-------------------------------------------------------------------------
1.Group Profit and Loss Account             Unaudited    Audited
                                                 2003       2002
                                                   #m         #m
-------------------------------------------------------------------------
Group Turnover                                2,171.0    1,799.4
=========================================================================
Operating profit                                298.7      227.9

Net interest payable                            (10.0)      (7.9)
-------------------------------------------------------------------------
Profit on ordinary activities before
taxation                                        288.7      220.0

Taxation                                        (82.3)     (61.9)
-------------------------------------------------------------------------
Profit on ordinary activities after taxation    206.4      158.1

Dividends                                       (40.2)     (33.3)
-------------------------------------------------------------------------
Retained profit                                 166.2      124.8
=========================================================================
Earnings per share - basic                       89.1p      68.6p
=========================================================================
Earnings per share - diluted                     88.2p      67.7p
=========================================================================
Dividend per share                              17.26p     14.38p
=========================================================================
Dividend cover                                    5.2x       4.8x
=========================================================================

All activities of the group are continuing.

-------------------------------------------------------------------------
2.Statement of Total Recognised Gains and Losses  Unaudited   Audited
                                                       2003      2002
                                                         #m        #m
-------------------------------------------------------------------------
Profit on ordinary activities after taxation          206.4     158.1
Currency translation differences on foreign
currency net investments                               (3.0)     (2.1)
-------------------------------------------------------------------------
Total gains and losses recognised since last
annual report                                         203.4     156.0
=========================================================================




-----------------------------------------------------------------
3.Group Balance Sheet                     Unaudited  Audited
                                               2003     2002
                                                 #m       #m
-----------------------------------------------------------------
Fixed assets
  Tangible assets                              11.0      2.4
  Other investments: interest in own
  shares                                       15.8     17.7
-----------------------------------------------------------------
                                               26.8     20.1
=================================================================
Current assets
  Properties held for sale                      7.7      6.1
  Stocks                                    1,730.7  1,451.3
  Debtors due within one year                  37.0     26.4
  Debtors due after more than one year          0.5      0.5
  Bank and cash                               121.4    131.8
-----------------------------------------------------------------
                                            1,897.3  1,616.1
Current liabilities
  Creditors due within one year              (922.4)  (753.3)
-----------------------------------------------------------------
Net current assets                            974.9    862.8
=================================================================
Total assets less current liabilities       1,001.7    882.9

Creditors due after more than one year        (77.0)  (123.4)
-----------------------------------------------------------------
Net assets                                    924.7    759.5
=================================================================
Capital and reserves
  Called up share capital                      23.9     23.8
  Share premium                               187.1    185.2
  Profit retained                             713.7    550.5
-----------------------------------------------------------------
Equity shareholders' funds                    924.7    759.5
=================================================================
Net assets per share                            388p     320p
=================================================================



--------------------------------------------------------------------
4. Group Summary Cash Flow Statement     Unaudited       Audited
                                              2003          2002
                                                #m            #m
--------------------------------------------------------------------
Net cash inflow from operating activities
  Operating profit                           298.7         227.9
  Increase in stocks                        (286.3)       (280.9)
  Increase in debtors                         (5.6)         (1.7)
  Increase in creditors                      106.6         199.5
  Other non cash movements                    (0.8)         (0.6)
--------------------------------------------------------------------
                                             112.6         144.2

Returns  on investments and servicing  of
finance                                      (10.3)         (8.8)
Taxation                                     (77.7)        (59.7)
Capital expenditure and financial
investment                                    (7.5)         (7.1)
Acquisitions and disposals                       -           3.7
Equity dividends paid                        (34.3)        (30.8)
--------------------------------------------------------------------
Cash (outflow)/inflow before financing       (17.2)         41.5
Financing                                     12.4           5.6
--------------------------------------------------------------------
(Decrease)/increase in cash                   (4.8)         47.1
====================================================================
Reconciliation  of  net  cash flow to
movement in net funds
  (Decrease)/increase in cash                 (4.8)         47.1
  Cash flow from increase in debt            (10.3)            -
--------------------------------------------------------------------
  Change in net funds resulting from cash
  flows                                      (15.1)         47.1
  Exchange movements                           2.1           2.6
--------------------------------------------------------------------
  Movement in net funds in the period        (13.0)         49.7
  Net funds at 1st July                       94.6          44.9
--------------------------------------------------------------------
  Net funds at 30th June                      81.6          94.6
====================================================================


The  financial  information  set out  above  does  not  constitute
statutory  accounts within the meaning of the Companies Act  1985.
The  figures in the preliminary statement have been taken from the
group's  draft statutory accounts which have not yet  been  signed
but  upon  which the auditors are expected to give an  unqualified
opinion.   The  figures  for the year to 30th  June  2002  are  an
extract from the full accounts for that year which have been filed
with the Registrar of Companies and on which the auditors gave  an
unqualified opinion.

The  preliminary  financial information has been prepared  on  the
basis  of  accounting  policies set out in  the  company's  Annual
Report for the year ended 30th June 2002.




----------------------------------------------------------------------
                                                  2003          2002
5.  Cash in Hand/(Bank Debt)                        #m            #m
----------------------------------------------------------------------
   Due within one year                            (5.3)        (10.9)

   Due after more than one year                  (34.5)        (26.3)

----------------------------------------------------------------------
                                                 (39.8)        (37.2)

   Bank and cash deposits                        121.4         131.8

----------------------------------------------------------------------
   Total net funds                                81.6          94.6
======================================================================

6.   Dividends

     The  directors propose a final dividend of 12.32p  per  share
     (2002: 9.89p) making a total for the year of 17.26p per share
     (2002: 14.38p).  It is proposed that the final dividend  will
     be  paid  on    21st  November 2003, to shareholders  on  the
     register, at close of business, on 3rd October 2003.

7.   Earnings Per Share

     Basic  earnings  per ordinary share is based  on  the  profit
     after  taxation of #206,400,000 (2002: #158,100,000) and  the
     weighted  average  number of ordinary  shares  in  issue  and
     ranking  for  dividend during the year of 231,641,125  (2002:
     230,518,421).  For diluted earnings per share,  the  weighted
     average number of shares in issue and ranking for dividend is
     adjusted  to assume the conversion of all dilutive  potential
     shares.   The  effect  of the dilutive  potential  shares  is
     2,253,881  (2002:  3,008,294), this gives a diluted  weighted
     average number of shares of 233,895,006 (2002: 233,526,715).

8.   Net Assets Per Share

     Net assets per ordinary share are based on the net assets  at
     30th  June 2003 of #924.7m (2002: #759.5m) and the number  of
     shares   in   issue  at  that  date  of  238,431,250   (2002:
     237,592,250).

9.   Taxation

     In  the  current year, a deferred tax asset of #3.6m (2002  :
     #1.9m)  relating to past trading losses incurred  by  the  US
     operation  has  been  recognised.   In  the  opinion  of  the
     directors the asset will become recoverable based upon future
     profitable trading within the US.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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