Barratt Development rises on year-end update

The price of shares in FTSE 100 housebuilder Barratt Development (LON:BDEV) climbed by 6.13% to 520.35p (as of 09:00 BST) after it noted a strong recovery in the market since Government restrictions were lifted in mid-May. Activity resumed at all sites by the end of June and all non-shielding employees have returned from furlough. Completions for the year ended 30th June were down substantially due to the lockdown, but the forward sales position was 25% stronger than at the end of the prior period. Management remain confident in the group’s position despite the unclear economic outlook.

CEO David Thomas commented: “Prior to the COVID-19 pandemic, the Group was delivering a strong year of progress on both volume and margin. The pandemic has caused significant disruption, but our highly skilled and experienced team have shown incredible resilience, flexibility and commitment both through the peak of the crisis and in the careful reopening of our sites.

Now, with our construction sites operational across the UK, we begin the new financial year with cautious optimism supported by our strong forward order book and our well capitalised balance sheet“.