Barratt Developments extends capital return programme as H1 profits rise

In the six months to the end of December, pre-tax profit increased 3.7% to £423m on revenue of £2.27bn, up 6.3%. Total home completions rose 9.1% to 8,314 and Barratt said customer demand for its new homes was "good", supported by a "stable" market backdrop.

Barratt announced special returns of £175m in November 2020 and November 2021, in addition to ordinary dividend cover at 2.5 times. Net cash pushed up to £433.8m from £387.7m and the interim dividend was lifted 2.1% to 9.8p a share.

The adjusted operating margin rose 40 basis points to 19.4% even as the average selling price declined to £279,800 from £282,200.

Chief executive David Thomas said: "We have achieved a strong first half performance, delivering continued volume growth and making good progress against our medium-term targets. We have made a good start to our second half and with substantial net cash, a well-capitalised balance sheet and strong forward sales, the outlook for the full year is in line with our expectations."