Although demand remained weak, housebuilder Barratt Developments reported improved operating margins over better price realisations.
The company reported flat sales of £875 million for the first six months while number of completed units dropped to 4,832 from 5,053. The company expects volumes to be lower for the complete year.
The large volumes housebuilder said average price rose by 6 percent to £176,000, while developers increased their product mix.
“Whilst the Group will benefit from the opening of approximately 110 sites during the second half of FY 2010-11, we anticipate that any volume growth for the year will be limited”, the company announced in a trading statement on Wednesday.
Barratt’s peer Persimmon had issued a warning on the outlook in 2011 although it said pre-tax earnings will be at the top end of expectations.
Barratt’s operating profit margin improved to 5 percent from 2.4 percent, recorded a year earlier. The company’s market capitalization is £889.9 million, based on Tuesday’s closing price.