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09 May 2019 | 07:47

Barratt Developments says outlook 'modestly ahead' of prior expectations amid 'strong' start to year

Barratt Developments said its outlook for the year was 'modestly ahead' of its previous expectations amid a strong start to the year driven by 'good' customer demand. For the period from 1 January to 5 May 2019, net private reservations per active outlet per average week slipped to 0.79 from 0.80.

Total forward sales (including JVs) were up 2.4% to £3,365.1m, from £3,286.7m a year earlier. Based on current market conditions, the company said it continue to expect to grow volume towards the lower end of its medium term target range in FY19, in line with current market expectations. The company is targeting medium term volume growth of 3-5%, land acquisition at a minimum 23% gross margin and a minimum 25% ROCE. 'This has been another strong period for the Group. As Britain's largest housebuilder we remain firmly committed to delivering industry-leading build quality and customer service and we are proud to have been awarded 5 stars for customer satisfaction for ten years in a row,' said David Thomas, Chief Executive. 'Trading since the beginning of the year has been strong, the outlook for the year is modestly ahead of our previous expectations and we are encouraged by our continued progress in driving operating efficiencies through the business.' 'Whilst we continue to monitor the market closely, we are confident of delivering a good financial and operational performance in FY19.

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