Barratt Developments Plc, the second-biggest U.K. homebuilder by market value, said fiscal 2013 profit before items beat analyst estimates as government support for buyers helped the company exceed sales targets.
Pretax profit before taxes and one-time items will total about 192 million pounds ($285 million) in the year through June, the London-based company said in a statement today. Analysts expected pretax profit of 181.5 million pounds, the average of 16 estimates compiled by Bloomberg.
“As more house buyers return to the market, supported by improved mortgage availability and the Help to Buy scheme, we are in a strong position to continue to grow the value of the business,” Chief Executive Officer Mark Clare said in the statement.
Prime Minister David Cameron is seeking to stimulate the U.K. economy through home construction. The government in March announced that it would offer equity loans for new home purchasers, adding to other measures to support buyers.
Barratt rose as much as 4.1 percent in London trading, boosting its gain for the year to 69 percent. The stock, the second-best performer in the Bloomberg EMEA Homebuilders’ Index this year, was up 1.9 percent at 349.5 pence as of 8:11 a.m.
Barratt’s weekly sales rate was up 17.9 percent in the second half, with an increase of 34.7 percent since the government introduced its Help to Buy program in April.
The Bank of England’s Funding for Lending Scheme also eased home lending and the government has tried to bolster housing by simplifying planning policies.
The company will report annual results on Sept. 11, according to the statement.
Home completions increased from a year earlier 16.1 percent to 13,663 and the average private home selling prices increased 9 percent to 221,000 pounds. The company said it may reach its target of 16,000 completions annually earlier than expected.