Barratt Developments targets 180 new sites in 2014
Up to 180 new sites will be opened by Barratt Developments in 2014. The home builder is responding to the requirements of the market and hopes to build on the strong demand seen in recent months. With attractive new developments across all six of its regional divisions, the group thinks it is well on its way to reaching its target of 16,000 total completions (including joint ventures) in 2016.For the year that ended June 30th, housing completions were at 14,838, which represents an 8.6 per cent year-on-year increase. Average selling prices were also ahead by 13 per cent as they rose to £220,000.Mark Clare, group chief executive at Barratt Developments, said strong demand for new homes across the country means that the market is remaining positive. "The land we have acquired in the last five years together with our disciplined operating model is delivering a very strong business performance. Our focused approach to land buying will enable us to maintain a land supply of around 4.5 years and support a significant increase in profitability and return on capital employed," he added.Significant improvements have been recorded in all six operating regions, with the disciplines and efficiencies enshrined in the operating structure leading to better results. During June 2014, site managers for Barratt Developments received the highest number of awards for quality workmanship in the National House Building Council Pride in the Job Quality Awards. This is the tenth year in a row the organisation has received more accreditations than its competitors. The builder also continues to make land acquisitions as it plans for its future; all of the 21,478 plots approved for purchase in 2014 have met or exceeded minimum hurdle rates of 20 per cent gross margin and 25 per cent return on capital employed.
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