Barratt Delivers Over a Thousand Homes During Lockdown

BARRATT DEVELOPMENTS PLC, Britain’s largest housebuilder, has provided an update on its performance during the Covid-19 crisis.

Barratt closed all of its sales centres, construction sites and offices by 27 March 2020.

Home completions

Between 23 March 2020 and 12 April 2020, Barratts delivered 1,349 home completions bringing the total to 11,713 homes sold this financial year, compared to 10,954 last year.

Barratt total forward sales are 12,376 homes at a value of £2,891.9m. The company says it expects any further home completions and reservations to be very limited while its sales centres and construction sites remain closed.

Furlough

Around 85% of the company’s employees are currently furloughed and receiving their normal pay until at least the end of May 2020.

Directors have agreed to a voluntary 20% reduction in base salary and fees, effective from April 2020, until the firm is able to restart work on site and they have agreed to waive any salary or fee increase for the next financial year.

Finances

The house builder has suspended all land buying, stopped recruitment activity, and postponed all non-essential capital expenditure. However, suppliers and subcontractors are being paid on time, the company says.

Shareholders have had the interim dividend of 9.8 pence per share due to be paid on 11 May 2020 cancelled.

Barratt says it is financially strong, with a balance sheet showing c. £450m of cash as at 14 April 2020.