July 10 (Bloomberg) -- Barratt Developments Plc, the U.K.’s third-largest homebuilder by market value, said fiscal 2014 earnings more than doubled as prices rose and the company built larger homes in better locations.
Pretax profit for the 12 months through June climbed to about 390 million pounds ($668 million), the company said in a statement today. Barratt reported pretax profit of 192 million pounds excluding one-time items a year earlier.
Barratt is increasing the number of homes it builds as demand grows, the company said. The value of homes sold before they were completed rose 45 percent to 1.2 billion pounds for the fiscal year.
Barratt’s return on capital exceeded 18 percent two years ahead of schedule as rising prices increased the value of its assets, according to the statement. The homebuilder said it welcomed the Bank of England’s planned introduction of loan-to-income caps on mortgage lending as the central bank attempts to prevent a housing bubble.
“The market remains positive with strong demand for new homes across the country,” Chief Executive Officer Mark Clare said in the statement. “Our focused approach to land buying will enable us to maintain a land supply of around 4.5 years and support a significant increase in profitability and return on capital employed.”
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