Barratt improves margins and prices

Barrat improved its margins from 2.4% to 5% in six months to 31 December 2010. Although underlying selling prices remained stable, a change in product mix saw the company’s average selling price rise 6% to £176,000.

A trading update from Barratt Developments plc for the first half of its fiscal 2010/11 year reports that group revenues remained steady at £875m, similar to the same period .

Total completions were 4,832 units, down from 5,053 last time.

The company said that forward sales as at 31 December 2010 were in-line with the prior year at £645.7m.

Group chief executive Mark Clare said: "The group has delivered a significant improvement in both average selling prices and operating margin even though sales volumes have been affected by difficult trading conditions.  We are on course to make further progress in the second half as we open new higher margin sites and continue to be value and quality focused."

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