Barratt share price leads the FTSE 100 on upbeat sales

Barratt Developments (LSE: BDEV) headed the FTSE 100‘s biggest winners Wednesday morning, on the back of an AGM day trading update. Shares in the housebuilder gained 4% in early trading, on a day when the index opened in subdued fashion.

The current financial year kicked off in July, and the company described its performance so far as strong and sustained.

Supply chain problems? Not for Barratt. Chief executive David Thomas said: “We continue to work closely with our suppliers and sub-contractors and have not experienced any significant disruption to our build programme as a result of the challenging supply chain environment.”

He pointed out that the encouraging start to the year comes despite the ending of the stamp duty holiday and a reduction in Help to Buy reservations.

Barratt says it is on track to achieve between 17,000 and 17,250 wholly-owned home completions in the current year. And we should see around 750 completions from joint ventures.

Barratt sales growing

Total forward sales at 10 October were only slightly ahead of the equivalent point a year ago, up just 1.7%. That is against the stamp duty holiday, though. And we’re looking at an 18.7% rise in forward sales compared to 2019.

But it’s not all sweetness and light. In a period of renewed inflation, cost pressures are going to hit the building industry. For the full year, Barratt says it expects build costs to rise between 4% and 5%.

The Barratt share price might be winning on the day. But that’s after a few months of weakness following the stock’s 2021 peak in April. Still, the shares are up 21% over the past 12 months, slightly ahead of the Footsie’s 18%.

The post Barratt share price leads the FTSE 100 on upbeat sales appeared first on The Motley Fool UK.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

Since 2016, annual revenues increased 31%
In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

More reading

These growth shares have tumbled over 40%! Time to buy?
How I’d try to build a £10k passive income from FTSE 100 shares
Growth investing: are Deliveroo shares a better bet than Darktrace?
The ASOS share price continues to dive! Time to invest?
2 of the best-value penny stocks to buy right now!

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Leave a Reply

%d bloggers like this: