Barratt Developments – Back To Business As Usual

Barratt Developments – Back To Business As Usual

Barratt Developments PLC (LON:BDEV)’s full year (ended 30 June) revenue was £4.8bn. That’s up 40.7% on 2020 and 1.0% on 2019, reflecting increased completions and higher average prices compared to both 2020 and 2019.

.first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; }

Get The Full Walter Schloss Series in PDF

Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q2 2021 hedge fund letters, conferences and more

Mohnish Pabrai On Spawner Stocks And Targeted Rates Of Return

Earlier this month, value investor Mohnish Pabrai took part in a Q&A session with Brown University as part of the organization’s Value Investing Speaker Series. One of the first questions the host asked the value investor was his thoughts on “mechanical filters,” the set filters that can help value investors identify undervalued equities. Mechanical filters Read More

Operating profits came in at £811.1m, up 64.4% year-on-year but still 10.0% below 2019. The decline on 2019 reflects lower gross margins due to legacy property costs and repayment of coronavirus grants from the government. Without which margins would have improved.

The board announced a final dividend of 21.9p per share, up from 19.5p in 2019 and nothing in 2020.

Barratt Developments shares fell 2.5% in early trading.

Barratt Developments’ FY Results

Nicholas Hyett, Equity Analyst at Hargreaves Lansdown:

“All the signs in Barratt’s results are that the housing market remains robust. Average selling prices are climbing again, more than offsetting a 4-5% increase in build costs, while forward sales are some 20.4% ahead of pre-pandemic levels. With coronavirus related costs fading into the background underlying profits are growing once again.

Despite the progress the market seems disappointed with the results, and we suspect that’s down to limited detail about additional shareholder returns. The group exited the last financial year with over £1.3bn in net cash. A good portion of that is earmarked for helping the group reach 20,000 completions a year, but with land purchases already approaching that level that still leaves some surplus.

Still, with a dividend yield north of 5%, profits back on track and end markets that look robust despite the recent housing boom, Barratt’s weathered the storm well, coming out of the pandemic with solid foundations on which to build.”

About Hargreaves Lansdown

Over 1.64 million clients trust us with £135.5 billion (as at 30 June 2021), making us the UK’s largest digital wealth management service. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

Updated on Sep 2, 2021, 4:45 pm

Comments are closed.