Trading Statement

Barratt Developments PLC 24 July 2006 BARRATT DEVELOPMENTS PLC TRADING UPDATE 24th July 2006 Barratt Developments PLC is today issuing an update on trading for the year ended 30th June 2006, ahead of Preliminary results which will be announced on 27th September 2006. We expect to confirm our 14th consecutive year of growth with further increases in completions and continuing pre-tax profit. In addition, we have again increased our investment in land whilst maintaining strong cash disciplines, with average gearing of 11% throughout the financial year and net cash of circa. £38m at the year end. Total completions increased by 1.8% to 14,601 (2005: 14,351) at an average selling price of £165,800, down 3.7% on 2005 as a result of an increased proportion of social housing. Private completions were 5.5% lower at 11,899, at an increased average selling price of £182,800, up 0.4%. Social housing completions increased by 53.5% to 2,702, at an average selling price of £90,500, down 11% due to geographic mix. As we expected, a range of incentives and marketing support has been required in a steady but competitive marketplace. However, as a result of overhead efficiencies and strict control of building costs we expect to deliver Group pre-tax profit in line with City expectations. We again strengthened the size and quality of our land bank which has now increased to c.66,500 plots (2005: 61,000), including 7,500 plots (2005: 7,000 plots) agreed subject to contract. This equates to 4.5 years' supply at current volumes (2005 4.3 years). Overall, buyer confidence improved over the year and remains steady with selling prices having risen in line with incomes. As a result of a good sales performance, total reservations are now 8% better than a year ago and we have entered our new financial year with a strong forward order book. Forward sales at 1st July increased to £845m, up 9%, the second highest level achieved. The fundamentals of the housing market remain sound and we expect it to continue to perform satisfactorily in the year ahead and provide a solid foundation for the future development of the business. Whilst we expect to operate in a competitive market, and some uncertainty exists as to future interest rates, we remain confident of our ability to compete successfully. The strength of our forward sales, our national geographic spread and product range, combined with our urban regeneration and social housing expertise, leaves us well placed for the future. Enquiries:- Weber Shandwick Square Mile Barratt Developments PLC Chris Lynch/ David Pretty, Chief Executive/ Terry Garrett Mark Pain, Finance Director Tel: 0207 067 0700 Tel: 0208 326 7240 Note to editors: Barratt Developments PLC is Britain's best-known house builder and has built more homes in the last decade than any other. We have a network of 7 regions and 33 divisions operating throughout Britain. We directly employ over 4,400 people including 550 apprentices and 50 graduate trainees. Our developments span the length and breadth of Britain developing on over 450 sites, helping to meet housing demand in towns, cities and rural areas. Barratt is at the forefront of urban regeneration with over 80% of our developments utilising brownfield land. We are also one of Britain's leading suppliers of social housing. This information is provided by RNS The company news service from the London Stock Exchange
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