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Barratt Developments sees forward sales rise

Barratt Developments has predicted it will forward sell more than 25 per cent of next year’s private completions by June in its interim management statement for 1 January 2014 to 4 May 2014.

Total forward sales were up 46.5 per cent on the prior year to £1.9bn for the period, compared with £1.3bn for the year before.

Private forward sales were up 50.5 per cent to £1.5bn, compared with £1bn the prior year.

Barratt Developments chief executive Mark Clare said improvements in the group’s operational performance had been “embedded” in the business.

He added: “Our focus is now on FY15 and by June we expect to have secured more than 25 per cent of our FY15 private sales, with planning now in place for 98 per cent of total FY15 completions. 

“Our disciplined approach to land-buying will enable us to maintain an owned landbank of around 3.5 years and will support a significant increase in profitability and return on capital employed.”

Barratt Developments approved 19,439 plots for the financial year to date, compared with 16,118 plots for 2013. The company expects to approve a total of around 21,000 plots for FY 2014.

It is targeting a 4.5 year landbank, with 3.5 years of owned land and one year of conditionally contracted land.

The group said where land is more competitive in areas such as London and the South-east, it was focused on securing public sector land and more complex sites.

The group said it confident it will deliver its FY 2016 ROCE target of 18 per cent.

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