Two of Britain’s biggest house-builders have today reported strong revenue growth and a doubling in their first-half profits.
Barratt Developments saw its pre-tax profit for the six months to 31 December 2013 rise 162% to £120.4m and revenue rise 33% to £1,264.9m.
Redrow £47.5m pre-tax profit, an increase of 107% on the previous year, on revenue up 41% to £363.0m.
Both companies improved their return on capital employed from around the 9% mark to 14.2% for the half-year.
Barratt completed the sale of 6,195 new homes in the period, a 19.3% increase on the previous year’s 5,194.
Redrow’s completions were up 30% from 1,202 to 1,565.
The Redrow board has decided to pay shareholders their first interim dividend for six years, handing them 1p per share.
Barratt shareholders will get 3.2p per share.
Bother companies said that the momentum seen in the six months to 31 December 2013 had continued into 2014. Over the last eight weeks Barratt has recorded 0.76 net private reservations per active site per week, up from 0.64 this time last year, and total forward sales as at 23 February 2014 up 56% to £1,748.1m.