Barratt sets new MMC target after beating 2020 aims
Barratt Developments workers installing the SIG I-House system
Housebuilder Barratt has met its target to build 20% of its homes using an element of modern methods of construction (MMC) a year ahead of its 2020 target.
It has now set itself a new target of using MMC in 25% of homes by 2025.
The company revealed the news as it posted a 9% increase in pre-tax profit to £909.9m for the year to 30 June 2019. The company’s revenue fell slightly over the period to nearly £4.8bn, while its operating margin rose to 18.9%.
The company announced in May that it would aim to use MMC in 20% of its new houses by 2020 but has now revealed that it has already exceeded that target, building 2,626 homes using timber frame, large format block and light gauge steel frame in the year to 30 June 2019. It also built a number of homes using manufactured ground floor solutions and roof cassettes and in June announced the acquisition of timber frame supplier Oregon. In total, Barratt completed 17,111 homes during the year.
David Thomas, chief executive of Barratt Developments said: “It has been another outstanding year delivering a strong operational and financial performance. The Group’s long-term investment in quality and operational excellence continues to drive margin improvements, alongside our highest number of completions for 11 years.
“Whilst there is increased economic and political uncertainty, we begin the new financial year with a strong forward order book, balance sheet and cash position which we believe provides us with the resilience and flexibility to react to potential changes in the operating environment in FY20 and beyond.”