More on Barratt
Barratt: Trading statement
The housebuilder Barratt is expected to report growth in volumes, margins and pre-tax profit for the year to June 2005. The results will be in line with market expectations.
Completions have risen 2% to 14,351 at an average price of c£170,000, up 2%. Private completions were down 1% but were offset by a 35% increase in social(low cost) housing.
Forward sales at the end of the year stood at £774m, down 12% from last year and indicative of the tighter market conditions. The company is cautious in its short term outlook for the market stating that “the economic outlook remains uncertain” and that it is too early to assess the market for next year.If sales do not pick up in the next Autumn and Spring seasons the company expects little or no growth in completions next year.
The share trades at 704.5p on a prospective PE (2006 earnings) of 6x, in line with the sector. The yield is 4.2%.
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