Barratt Developments Plc (BDEV), the U.K.’s largest homebuilder by volume, posted its first full-year profit since 2008 as the company widened margins by building on land acquired at discounted prices.
Net income was 67.4 million pounds ($108.3 million) compared with a loss of 13.8 million pounds a year earlier, the London-based company said in a statement today. Revenue increased 14 percent to 2.32 billion pounds and the operating margin widened to 8.2 percent from 6.6 percent.
“Despite continued uncertainty surrounding the wider U.K. market and constrained levels of mortgage finance, we expect to make further good progress in 2012/13 with more than half of our completions forecast to be delivered from recently acquired higher margin land,” Chief Executive Officer Mark Clare said in the statement.
British homebuilders have increased revenue amid restrained mortgage lending and little change in home values after focusing on widening margins. The U.K. government has tried to bolster the housing market by easing planning laws and reducing the down payments needed by some first-time buyers.