The UK’s largest housebuilder by volume, Barratt Developments plc, dramatically reduced its losses during the second half of 2010, recording pre-tax losses of £4.6m (2009: £178.4m loss).
Operating profits were in positive territory at £43.5m (2009: £5.2m).
Its sales for the six months ended December 31 were similar to a year ago at £877.6m.
Completions totalled 4,832 (2009: 5,053), while the average selling price increased by 5% (2009: 0.6%).
“By focusing on price, not volume and improving the underlying efficiency of our business, we have achieved a significant improvement in our operating margin despite a challenging autumn selling season,” said Mark Clare, Barratt’s group chief executive.
“2011 has started well with encouraging sales and stable underlying pricing. We expect to see further operating margin growth in our second half as we continue to optimise prices, reduce costs and open new higher margin sites from recently acquired land.”
However, he said the market remained fragile and long-term recovery depended on greater availability of mortgage finance.