Financial Highlights

Results for the 6 months ended 31 December 2009

Highlights:

• Total completions (including 25 joint venture completions) for the half year were 5,053 (2008: 6,905). Group revenue was £872.4m (2008: £1,261.8m).
• The average selling price (excluding joint ventures which are equity accounted) increased by 3.5% to £166,300 (2008: £160,700) largely driven by changes in mix.
• The operating margin before exceptional items was 2.4% (2008: 1.3%). Operating profit before exceptional items was £21.0m (2008: £16.0m ¹). Operating profit was £5.2m (2008: £497.9m loss ¹).
• Exceptional items of £129.9m (2008: £513.9m ¹) primarily related to the Group’s amended financing arrangements, which came into effect following the Placing and the Rights Issue (2008: impairment of inventories and restructuring costs).
• The Group made a loss before tax and exceptional items of £48.5m (2008: £80.6m ¹), and a loss before tax after exceptional items of £178.4m (2008: £594.5m ¹).
• Net debt was £605.3m at 31 December 2009 (2008: £1,422.8m), a reduction of £671.6m since 30 June 2009 due to the net proceeds of the Placing and the Rights Issue, the sale of a commercial property and ongoing strong cash management.
• Forward sales at 31 December 2009 were £651.2m (2008: £455.8m) representing 3,995 plots (2008: 3,529 plots). At 21 February 2010 forward sales had increased to £847.4m, which, taken with completions to date, means that the Group has secured around 77% of its full year requirement.
• Since mid-2009 the Group has agreed terms on £358m of land, comprising 74 sites and 9,038 plots, which will deliver attractive margins based on current selling prices.
• For the last 6 weeks the Group has delivered 0.55 private sales per active site per week up 12.2% on the first half of the financial year.
  

¹ The results for the period ended 31 December 2008 have been restated for the change in accounting policy relating to the defined benefit pension scheme as explained in note 3.

The Interim Management Report contains certain forward-looking statements about the future outlook for the Group. Although the Directors believe that these statements are based on reasonable assumptions, any such statements should be treated with caution as future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.
 

A presentation will be broadcast live on the Barratt Developments corporate website, www.barrattdevelopments.co.uk, from 8.45am today. A playback facility will be available shortly after the presentation has finished. Those wishing to listen-only to the presentation at 8.45am may dial:

Live dial-in 
UK toll free 0800 358 1448
International +44 (0)20 8609 0582
Replay 
UK toll free 0800 358 2189
International +44 (0)20 8609 0289
Conference reference 282278#

The presentation slides will be available on the Barratt Developments corporate website, www.barrattdevelopments.co.uk.

The Interim Management Report for the six months ended 31 December 2009 is available from today, 24 February 2010, on the Barratt Developments corporate website, www.barrattdevelopments.co.uk via the following link: www.barrattdevelopments.co.uk/ir/reports/.

Further copies of the announcement can be obtained from the Company Secretary’s office at:
Barratt Developments PLC, Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.

For further information please contact:

Barratt Developments PLC 
Mark Clare, Group Chief Executive 020 7299 4898
David Thomas, Group Finance Director 020 7299 4896
Susie Bell, Head of Investor Relations 020 7299 4880
For media enquiries, please contact: 
 
Barratt Developments PLC 
Dan Bridgett, Head of External Affairs 020 7299 4873
 
Maitland  
Liz Morley 020 7379 5151
Neil Bennett 

Click here to read complete Interim Results for the half year ended 31 December 2009 (PDF)