Housebuilder’s volumes fall by a third, but order book grows
By Matt Hall | 6th July 2020
In it's latest trading statement, Barratt Developments revealed that its completion volumes had significantly fallen due to the coronavirus crisis, but the business remained in a strong financial position.
Figures show that homes completed during the lockdown period fell by a third, with 12,604 homes up to the period ending March 22, compared to 17,856 in the previous year.
In contrast, Barratt said that their forward order book was strong, with forward sales as of June 30 totalling 14,326 homes at a value of £3.25billion - compared to £2.6billion in 2019.
The firm's balance sheet shows year‐end net cash of around £305m and land creditors at around £800m, equivalent to circa 25 per cent of the owned land bank.
Barratt reopened all operational sites by June 30 and all employees (aside from those shielding) have now returned to work.
David Thomas, chief executive said: "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."
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