Current Trading and Outlook
Strong start to the second half with 260 (2015: 279) net private reservations per week at a rate of 0.71 (2015: 0.71) net private reservations per active site per week
Total forward sales including JVs as at 21 February 2016 up by 13.4% to £2,579.5m (22 February 2015: £2,275.3m)
Group now expected to have a net cash balance in excess of £250m as at 30 June 2016
Interim dividend payment of 6.0 pence per share (2015: 4.8 pence per share)
Capital Return Plan expected to return a total of 67.8 pence per share over the two year period to November 2017[6]
Commenting on the results David Thomas, Chief Executive of Barratt Developments PLC said:
"In line with our strategy, we have stepped up the number of completions in the first half and we did this in a disciplined way, both financially and operationally, without compromising on the quality of the homes we're building.
"In the past five years we have increased our annual output by more than 53%, built more than 71,7001 homes and approved the investment of over £4.4 billion in new land for housing. The market remains strong as a result of improved mortgage availability and Government support for first time
buyers and we will continue to grow in a way that delivers for the needs of homebuyers and shareholders alike."
The Half Yearly Financial Report contains certain forward-looking statements about the future outlook for the Group. Although the Directors believe that these statements are based on reasonable assumptions, any such statements should be treated with caution as the future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.
Dividend
The Board is pleased to announce an interim dividend of 6.0 pence per share (2015: 4.8 pence per share). This dividend represents one-third of the expected dividend for the financial year, based upon the full year dividend being covered three times by current consensus earnings in line with our three times dividend cover policy. It will be paid on Friday 20 May 2016 to all shareholders on the register on Friday 29 April 2016.
Our Capital Return Plan combines the ordinary dividend together with a special cash payment programme. Under the special cash payment programme we anticipate proposing a special cash payment of £125m proposed with our FY16 results payable in November 2016, and a special cash payment of £175m proposed with our FY17 results payable in November 2017.
We therefore expect to return around £678m of cash through ordinary dividends and special cash payments to our shareholders over the two years to November 2017, which equates to a total of 67.8 pence per share.
|
Capital Return Plan A |
Ordinary dividend £m |
Special cash payment £m |
Total £m |
Total pence per share |
|
Proposed payment |
|
|
|
|
|
Year to November 2016 |
180 B, C |
125 |
305 |
30.5 C |
|
Year to November 2017 |
198 B, C |
175 |
373 |
37.3 C |
|
Total proposed payment |
378 B, C |
300 |
678 |
67.8 C |
A All final dividends and the special cash payment programme are subject to shareholder approval.
B Based on Reuters consensus estimates of earnings per share of 54.1p for FY16 and 59.5p for FY17 as at 19 February 2016 and applying a three times dividend cover in line with previously announced policy.
C Based upon 31 December 2015 share capital of 1,002,277,333 shares for proposed payments.
