Barratt Developments (LSE: BDEV) has reported a dramatic 76% drop in profits for the year ending June 30, as high mortgage rates and inflation continue to impact the UK housing market. Shares in the housebuilder fell 1.8% to 510.60 pence in early trading on Wednesday.

The company’s pretax profit plummeted to £170.5 million from £705.1 million, while revenue decreased by 22% to £4.17 billion from £5.32 billion. Home completions dropped 19% to 14,004 from 17,206 last year. Looking ahead, Barratt expects completions to fall further to between 13,000 and 13,500 for the financial 2025 but anticipates that average sales outlet numbers will exceed 2024 levels in 2026.

The company declared a final dividend of 11.80 pence per share, down 50% from 23.50 pence. The profit reductions are attributed to fewer home completions, declining house prices, and stabilising customer demand at lower levels.

This update follows Barratt’s recent £2.52 billion acquisition of Redrow PLC, a smaller housebuilding peer. The company is now working to finalise competition clearance before integrating the new acquisition.


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