Barratt forward sales up 2.5% with trading in line

House builder Barratt Developments said total forward sales were up 2.5% in the calendar year to May 6 to £3.3bn, adding that current trading was in line with expectations.

The company said it expected its net cash position at 30 June 2018 to be better than previous guidance at around £550m.

Barratt said it continued to secure “excellent operational land opportunities that exceed our hurdle rates” as it expected to approve the purchase of more than 20,000 plots in the current financial year.

“We continue to secure attractive deferred payment terms on land and expect land creditors to be between 30% and 35% of the land bank at 30 June 2018. Reflecting the excellent land opportunities we have seen, we expect the land cash spend for FY18 to be higher than FY17 at around £1.1bn,” Barratt said.

Chief executive David Thomas said trading had been driven by good customer demand for its new new homes and an “attractive lending environment”.

“We have a healthy forward order book and a robust balance sheet,” he said.