The resurgent housing market triggered a profits upgrade from Barratt Developments today while rival Redrow announced its first interim dividend in six years.
Barratt chief executive Mark Clare said homes sales since Christmas were “back in 2007 territory” as it speeded up dividend payment plans, and pre-tax profits almost trebled to £120.4 million in the six months to December 31. Barratt guided the City to full-year earnings towards the top of expectations at £370 million. “After five years, we are seeing that pent-up demand coming through,” Clare said.
Redrow founder and 40% shareholder Steve Morgan added £150,000 to his £500 million-plus fortune following the 1p dividend. The Wolverhampton Wanderers owner is targeting growth, ruling out the cash returns announced by industry rivals. He has promoted John Tutte to chief executive to help oversee the expansion.
