Buoyant Barratt builds up profits

BRITAIN'S biggest housebuilder, Barratt Developments, will be sending analysts reaching for their notepads as it smashed through their profit expectations at the half-year mark by around £15m.

Demand for new homes is stronger than ever. In London, Barratt properties range from a one-bedroom flat in Abbey Wood for £145,000 to a £1.7m house in Richmond.

Barratt has sold 40 of its 140 upmarket flats in Regents Park for between £400,000 to £1.2m, none of which will be ready until 2006, in its Visage housing and leisure complex over the old Swiss Cottage swimming pool. Chief executive-David Pretty said: 'We are on our way to our 12th consecutive year of growth without the need for an acquisition. We will build 14,000 homes this year.'

Barratt turned in pre-tax profits for the six months to 31 December of £142.6m, 35% more than last year and against average market expectations of £128m. UK completions rose 10% to 6705 homes at the halfway stage. The average selling price rose 12% to £161,700.

Forward sales stand at £883m meaning that, with completions to date, 93% of the full-year projection has been met.