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Highlights

  • In H1FY24, BDEV achieved 6,171 home completions and ended with £753.4 million in net cash as of 31 December 2023
  • BDEV paid an interim dividend of 4.4 pence per share on 17 May 2024, despite experiencing revenue and profit declines
  • For FY24, BDEV achieved total home completions of 14,004 and total forward sales of 7,239 homes valued at £1,912.3 million

Barratt Developments PLC (LSE: BDEV) specializes in land acquisition, residential property design, and construction. It is listed on the FTSE 100 index. It has a market cap of GBP 4.85 billion.

In the first half of FY24, BDEV achieved 6,171 home completions and maintained a robust balance sheet, ending with £753.4 million in net cash as of 31 December 2023. On 17 May 2024, the company paid an interim dividend of 4.4 pence per share, with the ex-dividend date set on 11 April 2024. However, BDEV experienced declines of approximately 33.5% in revenue and 81% in profit before tax in this period.

On a positive note, the company had a higher current ratio of 4.92x and a lower debt-equity ratio of 0.05x in H1FY24, compared to the industry median of 3.82x and 0.17x, respectively.

Recent business update

As per the company’s FY24 trading update, BDEV has achieved total home completions at the upper end of the guidance range at 14,004 for FY24. Further, total forward sales (including JVs) reached 7,239 homes at a value of £1,912.3 million.

Company outlook

BDEV started FY25 with strong assurance, bolstered by substantial net cash reserves, a well-supported balance sheet, and promising forward sales figures. Additionally, the Company anticipates FY24 adjusted pre-tax profit to exceed its earlier projections. BDEV aims to capitalize on the new government's emphasis on housebuilding and planning system reform for further advantages.

Top 10 shareholders

The top 10 shareholders of BDEV together hold approximately 45.17% of the total shares. Leading the group is BlackRock Investment Management (UK) Ltd., holding around 9.30% of the shares, followed closely by Fidelity Management & Research Company LLC, which holds about 8.85%, as illustrated in the chart provided.

Stock performance

Over the past month, BDEV's stock price has increased by approximately 1.52%. However, over the last six months, it has seen a decline of 8.67%. The stock's 52-week range spans from a low of GBX 384.15 to a high of GBX 582.60, with its current trading price around the midpoint of this range.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 12 July 2024. The reference data in this report has been partly sourced from EODHD/Others.