FTSE 100

Barratt share price: what is the latest company news?

In the past few months, there have been a few different company announcements made relating to the Barratt share price (LON: BDEV).

They include the FTSE 100 housebuilder’s half year results for the period to 31 December 2020 that were released on 4 February. In the period, the company delivered a 9.2% increase in total completions, while revenue increased by 10.1% to just short of £2.5 billion.

The company’s adjusted operating margin rebounded to 20.3% after it had fallen to 5.9% in the first half of the year as a result of the pandemic. Profit before tax moved marginally higher to £430 million versus £423 million in the same period of the previous year.

Barratt decided to resume dividend payments after its half year performance. It announced an interim dividend of 7.5p per share, and is targeting full year dividend cover of around 2.5 times net profit.

In terms of its financial standing, the firm increased its net cash position by 155% during the first half of the year. It now stands in excess of £1.1 billion.

Commenting on the results, the company’s CEO, David Thomas, stated: “Whilst we are mindful of the continued economic uncertainties, the housing market fundamentals remain attractive and our outlook for the full year remains in line with expectations”.

Other news items concerning the Barratt share price in recent weeks have included changes to its Board. Jessica White, CFO, announced her intention to step down from the Board on 30 June for personal reasons. The company is now undertaking a search for her replacement, and expects to update investors about this in due course.

The company also announced its performance targets for senior management remuneration on 1 April. The update was due to be released in November 2020, but was delayed due to Covid-19.

There have been no director deals in Barratt shares over the past few months, although options have been granted under the firm’s Savings-Related Share Option Scheme.

Since the start of the year, the BDEV share price has risen by 20%. Over the past year and five years, the firm’s shares are up 81% and 54% respectively. In comparison, the FTSE 100 index is up 25% over the past year, and has risen by 10% in the past five years.

The housebuilder is due to release a trading update on 6 May. Its shares go ex-dividend on 15 April. At the time of writing, the Barratt share price is trading at 785p.

Not Investment Advice Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.