Dailymail Money: Insights on Barratt Developments' Profit Slump in Money Markets
Dailymail Money Highlights Profit Slump
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, comments on Barratt Developments' latest results:
Performance Review
Barratt Developments has struggled to build momentum, leading to disappointing full-year numbers for investors. The group completed around 14,000 new homes last year, which was towards the top end of group guidance. However, this figure marks a significant drop from the 17,206 homes completed in the prior year due to ongoing mortgage and affordability pressures affecting potential buyers.
- New home completions down from previous year
- Mortgage pressures impacting buyer activity
- Incentives elevated to attract buyers
Investor Implications
While momentum did improve slightly as the year progressed, further easing of mortgage rates will be essential for activity to increase significantly. With fewer homes sold at lower prices, cash flow has diminished, and underlying pre-tax profits have experienced a substantial decline, more than halving year-on-year.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.