Barratt Developments forecasts profit rising on market stability


Reuters

LONDON — British housebuilder Barratt Developments forecast a big rise in full-year profit, and said its drive to build new homes on higher-margin land would allow more progress as long as the housing market remained relatively stable.

The group said that at its annual results on Sept. 12 it expected to post a 41 percent jump in operating profit before exceptional items to around 191 million pounds (US$296 million) for its 2011-12 year to end-June. The leap in profitability was due to a move towards building on high-margin land, a focus on containing costs and a significant increase in volumes — with 12,637 completions compared with 11,078 in the year-earlier period, chief financial officer David Thomas told reporters on a conference call.