New accounts released by homebuilding giant Barratt Developments have been used as the backdrop for an upbeat assessment of the market - despite the figures themselves being less than celebratory.

The final results for the year ended June 30, 2024 showed a "solid delivery in a challenging market, well positioned for FY25," said the household name, which is a busy entity in Gloucestershire's current development landscape, given key projects that include Fiddington Lane, near Tewkesbury, and Winnycroft Lane in Matson. Barratt also owns David Wilson Homes.

David Thomas, Chief Executive of Barratt Developments PLC, said: "We are pleased to have delivered total home completions at the upper end of our expectations for the year, despite the challenging backdrop. I am grateful to our skilled and dedicated teams of employees, sub-contractors and suppliers for continuing to deliver high quality homes that people want to live in."

Barratt was delighted, he added, to have completed the acquisition of Redrow PLC in August and was now working constructively with the CMA to finalise competition clearance in order to begin the integration process.

He added: "Whilst demand continues to be sensitive to mortgage affordability, and reduced land buying activity during the past two years has had a near-term impact on the number of outlets we are operating from, we are well-positioned to meet the strong underlying demand for new homes of all tenures in the UK.

"We welcome the Government's proposed reforms of the planning system as one of the key levers to increase housebuilding, drive economic growth and tackle the chronic undersupply of high-quality, sustainable homes."

The figures themselves offered less to smile about:

● Adjusted gross profit came in at £689m, against FY23's £1,130.4m. This was "mainly reflecting lower home completions and average selling prices, reduced margin due to site based fixed cost levels and build cost inflation," the report said.

● Adjusted profit before tax came to £385m (FY23: £884.3m), slightly ahead of the firm's interim expectations and "reflecting home completion delivery at the upper end of the guided range".

● Adjusted items relating to costs associated with legacy properties of £192.1m (FY22: £179.2m) and acquisition-related transaction costs of £22.4m (FY23: nil), resulted in reported profit before tax of £170.5m, a 75% drop on FY23's £705.1m.

● A resilient balance sheet was revealed though, with net cash at June 30 2024 of £868.5m (30 June 2023: £1,069.4m), after dividend payments of £270.6m, legacy properties remediation spend of £91.5m, and a further reduction in land creditors.

● ROCE also declined to 9.5% (FY23: 22.2%), reflecting the decline in profitability in the year.

With total home completions at 14,004(3) (FY23: 17,206), the tally was at the upper end of the builder's expected range for the year, it said, but 18.6% lower than FY23, "reflecting the lower private order book entering FY24 and lower average outlet numbers during the year".

As key points from the year though, the firm stressed it has maintained industry leadership in build quality, customer service and sustainability, having achieved its twentieth consecutive year of achieving more NHBC Pride in the Job Awards than any other housebuilder, its fifteenth consecutive year of receiving the maximum HBF 5 Star customer satisfaction rating and having gained membership of CDP's Climate Change A List for Leadership, being one of fewer than 365 companies globally.

The report added: "Completion of the acquisition of Redrow which, subject to obtaining CMA clearance, will create an exceptional UK housebuilder and positions the business well for future growth."

Looking ahead, the report added: "Whilst the housing market remains subdued due to affordability constraints, we welcome the Government's proposed reforms of the planning system as key to both unlocking economic growth and tackling the chronic undersupply of new homes. Underlying demand in the UK is strong and we look forward to working with Government and wider stakeholders to deliver the new homes, of all tenures, the country needs.