Scottish surge helps to drive Barratt’s sales

By Dominic Jeff,
ScotsmanBusiness.com
The Scotsman Friday 13 January 2012

HOUSEBUILDER Barratt yesterday revealed a rise in revenues and a burgeoning order book, helped by a 25 per cent increase in Scottish sales.

Revenues hit £950 million in the six months to 31 December, an increase of 8 per cent on the same period a year earlier, after the firm completed 5,198 homes.

Chief executive Mark Clare said sites in Scotland had made a robust contribution. As a result Barratt is buying land and opening sites in Aberdeen, Edinburgh, and Inverness which will eventually see 750 more homes built.

“We are having some of our strongest successes in Aberdeen, Edinburgh and Glasgow,” Clare added.

The firm’s average selling price increased by 3 per cent overall, including social housing, and 4 per cent for private sales, due to changes in the mix of property it sold. The company also saw improvements to its margin, and expects operating profit for the half-year to reach £61m, a rise of 40 per cent.

But Clare said the most significant improvement was in the forward order book, which on 31 December stood at £698.1m, up 8.1 per cent year-on-year, with private forward sales up 29.8 per cent to £415.3m.

He said sales had been aided by new designs and a revamped website, the first point of contact for four out of five customers. A UK government scheme to help first-time buyers access 95 per cent loan-to-value mortgages had the potential to lift sales further, Clare added, especially if the Scottish Government followed suit.