Barratt profit drops by three quarters amid fresh building safety costs and market slowdown

By Carl Brown2024-09-04T08:09:00

Source: Shutterstock

Completions drop 19% and expected to fall further this year

Barratt’s has reported a 75% drop in its statutory pre-tax profit and a fall in completions.

Britain’s largest housebuilder reported pre-tax profit of £170.5m in its financial results for the year to 30 June, compared top £705.1m the previous year. When adjusted for one-off costs, profit fell from £884m to £385m, while its overall turnover fell 22% from £5.3bn to £4.2bn.

Barratt’s balance sheet was hit by an extra £125.9m in charges for fire safety and external wall systems. It said it had identified a further 26 buildings requiring potential building safety remedial work, meaning it now has 262 buildings across 92 developments under review.

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