In the year to 30th June 2022 Barratt Developments completed 17,908 homes, a 3.9% increase on the previous year and a return to pre-pandemic levels. Revenue was up 9.5% to 拢5,267.9m (2021: 拢4,811.7m)
However, pre-tax profit was down 21% at 拢642.3m (2021: 拢812.2m).
The results include a 拢396m provision for post-Grenfell building safety remediation commitments.
Adjusted gross profit improved by 17.3% to 拢1,308.1m (2021: 拢1,114.7m)
Net cash at 30th June 2022 stood at 拢1,138.6m (30 June 2021: 拢1,317.4m) and construction activity is on track to deliver planned output growth this year, the board said.
This means completing between 18,400 and 18,800 homes, including approximately 750 joint venture completions.
Beyond the current financial year, the target is annual volume growth at between 3% and 5% until reaching 21,500 total home completions a year.
Chief executive David Thomas said: "This has been a year of fantastic progress, with completions recovering to pre-pandemic levels and excellent productivity across our sites鈥�. Our financial strength and operational excellence position us well to navigate the macro-economic uncertainties ahead.鈥�
However, he also had a pop at the state of the planning system, saying: 鈥淒espite some planning delays during the year, planning consents have remained ahead of home building activity at a national level. Planning delays are however becoming more commonplace, reflecting constrained planning resources, the delayed impacts of the pandemic and emerging land use issues, notably the challenges created by nutrient neutrality. We are currently engaging with the consultation around future planning reform. We would urge the government to ensure any changes deliver a planning system that is responsive to housing need, predictable and timely, and well-resourced at local authority level, to ensure a flow of consented land, which will allow the housebuilding industry to deliver the homes the country needs.鈥�
Barratt鈥檚 annual result statement also revealed some details of the company鈥檚 use of so-called 鈥榤odern鈥� methods of construction (MMC).
Barratt delivered 4,846 homes using MMC in the year to 30th June 2022 鈥� 27% of total home completions. The previous year MMC were used on 4,393 homes 鈥� 25% of the total. Here is a breakdown of the frequency of the various methods employed:
| MMC | FY22 | FY21 |
|---|---|---|
| Timber frame | 3,736 | 3,003 |
| Roof cassettes | 194 | 696 |
| Offsite ground floors | 614 | 360 |
| Large format block | 226 | 334 |
| Light gauge steel frame | 76 | - |
| Total | 4,846 | 4,393 |
| Percentage of completions | 27% | 25% |
David Thomas explained: 鈥淎 key dimension to both our MMC and carbon reduction strategy is the delivery of an increased share of timber frame homes. Timber frame provides an efficient method of construction with lower levels of embodied carbon. Our core English housetypes have been designed so they can be built using either traditional brick and block or timber frame construction, and we delivered 3,006 timber frames from Oregon, our timber frame manufacturer, to our sites this year.鈥� [In financial year 2021 that number was 1,638.]
He continued: 鈥淲e are targeting the use of offsite-based products and systems in 30% of our home completions by 2025. The continued adoption of timber frame construction in England will be a significant contributor to meeting this target. The group's additional investment in a new timber frame facility near Derby, scheduled to begin production in FY24, will be important in further expanding MMC and specifically our timber frame capacity looking to 2030.鈥�
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