Barratt Developments, a leading UK house builder, is scheduled to report its financial results for fiscal 2023 on Wednesday. Here are the key details you should know:
Revenue Forecast
According to a consensus of 16 analysts taken from FactSet, Barratt Developments is expected to report revenue of approximately £5.32 billion ($6.72 billion) for the year ended June 30. This marks a slight increase from the previous year's revenue of £5.27 billion. The rise is primarily attributed to a higher average selling price, despite a decrease in housing completions.
Pretax Profit Forecast
Analysts are expecting Barratt Developments' pretax profit to rise to £756.0 million, compared to £642.3 million in the previous year. This forecast is based on a consensus of nine analysts from FactSet.
Adjusted Pretax Profit
In an update on July 13, the company stated that it expects its full-year adjusted pretax profit to align with market expectations of around £880.6 million. Last year, Barratt Developments reported an adjusted pretax profit of £1.05 billion.
Key Highlights to Watch:
- Dividends
The board is anticipated to declare a full-year dividend of approximately 33.44 pence per share, down from 36.9 pence.
- Forward Sales
As of June 30, Barratt Developments had forward sales of 8,995 homes with a total value of £2.23 billion. This is a decrease from 13,579 homes with a value of £3.62 billion in the previous year. The company provided updated forward sales figures in its full-year results.
- Macroeconomic Outlook
Despite facing challenges in 2023, Barratt Developments' share price has rebounded from the lows experienced in October last year. The Chief Market Analyst at CMC Markets UK, Michael Hewson, points out that although the economic backdrop remains difficult and interest rates are expected to remain high, the recovery of the share price is promising. However, Hewson notes that looking ahead, with the conclusion of the "Help to Buy" program and the potential struggle to match previous years' booking levels, forward bookings may face challenges.
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