Barratt returns to profit in first half

Barratt, one of the larger listed housebuilders, posted an upbeat performance despite a wider stagnant property market, helped by its strategy of an increased focus in building homes in higher-margin areas.

The company reported pre-tax profit in the six months to December 31, 2011, of £22m versus a loss of £4.6m in the same period the year before.

Revenue increased by 8.6 per cent to £953m, against weak comparative figures impacted by bad weather last year.

“Over the last six months we have continued to improve the performance of the business, despite the wider economic uncertainty,” Barratt chief executive Mark Clare said in a statement.

“We have seen a strong start to 2012 and over the first seven weeks private reservations are running 21.8 per cent ahead of this time last year.”

The average price for Barratt properties rose 3.1 per cent to 181,000 pounds in the six months to the end of December.

Barratt operated from around 400 sites at the end of December last year. It plans to open about 20 Yorkshire sites during 2012, including in Hull, Howden, Whitby, Castleford and Wakefield. The sites will create close to 2,000 new homes.