Pre-tax profits for Barratt Developments (BDEV) are expected to have doubled to around £45m in the last six months of 2012, and solid cash flow means that net debt has fallen from £542m a year earlier to around £332m. And the strong performance is set to continue, with private forward sales of £536.5m up 35.5 per cent from the previous year.
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Operating margins are expected to have increased from 6.4 per cent to 8.4 per cent, helped by greater use of cheaper land and a 2.1 per cent rise in average selling prices on private sales to around £202,000. And the group is also increasing its exposure to inner London, with sites acquired in Southwark and Surrey Quays for 1,000 new homes.
