UK’s Barratt to buy back shares worth $229 million, posts record annual profit

(Reuters) -Barratt Developments Plc said on Wednesday it would buy back shares worth 200 million pounds ($229.50 million), after UK’s biggest housebuilder posted a record annual profit and said it was on track to meet volume output target for fiscal 2023.

Barratt’s announcement comes at a time when the UK housing sector is showing signs of losing some heat, with HSBC warning of an imminent downturn amid soaring inflation and rising interest rates.

The FTSE 100 firm said construction activity was on track to deliver planned output growth with an average 366 equivalent homes per week built to date in the 2023 fiscal, compared with 336 homes a year earlier.

Barratt said the share buyback programme would start shortly, with an initial tranche of 50 million pounds to be completed by the end of the calendar year and the total programme completed no later than June 30, 2023.

Adjusted pre-tax profit rose about 15% to 1.05 billion pounds for the year ended June 30, compared with a profit of 919.7 million pounds a year earlier. It was also in line with market expectations.

On Tuesday, high-end housebuilder Berkeley pointed to persistent robust demand offsetting cost pressures and said it was on track to meet its annual profit forecast.

($1 = 0.8715 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; editing by Uttaresh.V and Rashmi Aich)