The UK’s largest housebuilder Barratt has recorded a 44.8 per cent year-on-year profit surge, fueled by the government’s Help to Buy scheme.
Pre-tax profit grew to £565.5m for the year to 30 June 2015, compared with £390.6m a year earlier.
The group’s revenue soared 19.1 per cent to £3.76bn, with a significant increase in housing completions.
The firm said private average selling price rose by 8.7 per cent to £262,500, driven mainly by further changes in mix and house price inflation.
Completions were up 11 per cent to 16,447 during the year despite a number of market challenges, particularly labour shortages.
The housebuilder ended the year with a net cash balance of £186.5m.
Barratt chairman John Allan said the market for new homes remained strong across the UK, with demand continuing to exceed supply.
The mortgage market has continued to improve both in terms of availability and rates, as well as government support for the new-build market.
Chief executive David Thomas said: “The new financial year has started very well: we have a strong forward sales position and are making very good progress towards our FY17 targets of at least a 20 per cent gross margin and at least a 25 per cent return on capital employed.”
The government’s Help to Buy scheme has been extended to 2020, which Barratt said provided good visibility in terms of the company’s land investment strategy.
Already this week, fellow housebuilders Redrow and Cala have posted record results, citing the influence of Help to Buy.
Redrow broke the £1bn turnover barrier, while Cala said it was targeting similar levels of sales within five years.