I bet Barratt’s chairman wishes it was already (permanent) personal holiday time

You may have heard the other day that the latest Nationwide house price survey observed that apparently annual house prices rose by 11.2% in May, making the average UK home costs £269,914…or a mere 6.9 times average earnings.  I am sure many people are excited about this but most probably know the reality of significantly slowing - if any! - house price growth over full year 2022.  Spot the impact of higher interest rates and a slowing economy… And on possibly related factors I read in the press today that the “titan housebuilder Barratt (BDEV) is planning to begin a search for a new chairman, with City grandee John Allan to step down”. 

Barratt Developments (#BDEV) – full-year in line with expectations, on track to deliver home completions of 18,000-18,250

Whilst I wait for GlaxoSmithKline to split itself…more on the UK housing market via Barratt Developments

I am looking forward to the GlaxoSmithKline (GSK) conference call later today. Whilst technically it is focused on the full year 2021 numbers out earlier today (which showed rising sales and falling profits), far more important is the confirmation that it is ‘on track to demerge a new world-leading Consumer Healthcare business mid-2022’. Last month I was amused by the (ultimately unsuccessful) partial bid approach by Unilever (ULVR) but my instinct is that the Pharmaceutical / Vaccines business is still underappreciated going forward. I was certainly pleased to see the ‘pipeline of 21 vaccines and 43 medicines’ angles and I do wonder - when the business split occurs in a few months time - whether not only retaining but adding to this part of the business. Something to be more thoughtful about later this year whilst, despite the excellent total return performance over the last year, I remain a strong HOLDer. So whilst I continue to hang onto my GlaxoSmithKline shares…what do I make of today’s interim results announcement from FTSE 100 housebuilder Barratt Developments (BDEV)?...

Barratt Developments (#BDEV) – H1 adj. EPS -11%, DPS +49%, “continued strong demand”

Barratt Developments shareholders need to note too much anticipated house price excitement in 2022

I see there is more comedy occurring in the energy sector as yet another company - the wonderfully named Zog Energy - collapsed. I have never heard of it but given I recall ‘Zog’ as a 2010 children's picture book about a young accident-prone dragon which I think both my daughters at some time read, you have to smile at the choice of its name. Yet another energy company which needs to fully understand that not being sensibly hedged means you can be materially exposed to any price volatility. Meanwhile as Ofgem put it following a collective four million household problem “under our safety net we'll make sure your energy supplies continue...You can rely on your energy supply as normal”. Far smarter if Ofgem also tells all customers that simply trying to find the cheapest short-term company is not smart. Still, you cannot regulate everything otherwise we would not also have shares that exhibit either too much fear or (more recently) too much greed judging by their crazy multiples. At the moment I am trying to work out which side housebuilding stocks are in.

Barratt Unperturbed by Rising Raw Material Costs and Shortages so the Future Looks Sparkly

Hello, Share Slammers. This old punter has been saying for some months that Blighty’s house builders are likely to see further rising share prices as something of a boom is going on. Well, one of them Barratt Developments (BDEV) has just issued a three month trading statement that says it’s having ‘a strong and sustained start to the new financial year’.

More progress by Barratt Developments and Vertu Motors

I am quite impressed today by two names that I do not own but probably should. That’s life in the investment world sometimes (actually quite often). But the key is to keep on looking.

Barratt Developments (#BDEV) – YTD “net private reservations per average week of 281 (FY21: 288; FY20: 262)”

Is Barratt Developments going to peak in early 2022?

The last time I moved was about fifteen years ago and I bought that without a mortgage in any case. In other words, I am of no interest for mortgage names and housebuilders. Nevertheless, even I have become a bit more interested in the sector over the last eighteen months as noted most recently a couple of months ago. One name I have commented on a few times is Barratt Developments (BDEV), which has published full year numbers this morning.

Barratt Developments (#BDEV) – FY EPS recovered to -11% v. FY19, DPS +1%

Barratt Developments (#BDEV) – argues FY strong performance & “well positioned” for FY22

Hopes Build For Bubbly Barratt as the Spending Power of Stay-at-Home Customers Continues to Grow

Hello, Share Plumpers. Shares in housebuilders are bowling ahead. One of those at the forefront of the advance is Barratt Developments (BDEV). It completed nearly 4,500 homes in the first quarter of this year. That’s up by nearly a third on this time last year. And 5.7% better than before the pandemic first struck. Plus, the group has been able to boost its cash pile to £1 billion.

Is Barratt Developments near its share price top?

Back in early February HERE I wrote ‘Barratt Developments really, really loves Help to Buy’ but had to admit that the share was going to go up a bit more. Since then the stock (BDEV) has moved a quid or so and now has a 775p stock price. So happy days for holders but, given the share price in early 2020 was only a little over 800p, is there anything left for shareholders to chase?

Barratt Developments (#BDEV) – “net private reservations per active outlet per average week of 0.83 (2020: 0.52; 2019: 0.79)”

Take Another Look at Barratt's Homes. It's Elementary, My Dear Watson

Hello, Share Followers. It seems optimism towards housebuilders has won another example of vindication. Barratt Developments (BDEV) has just announced a record half-year with 9,077 home completions. And that’s up by 9.2% on last time. My more brilliant colleague Chris Bailey likes those figures but allow me to proffer even more encouragement...

Barratt Developments really, really loves Help to Buy

Back in September here, I was a bit sceptical about buying shares in homebuilder Barratt Developments (BDEV), on the basis that I have a lot of concern about initiatives such as Help to Buy, which is due to stop in early 2023.  Whilst I preferred names such as bricks and mortar company Ibstock (IBST) - shares in which have gone up by well over a third in price since then - FTSE-100 giant Barratt Development has also performed pretty similarly.  So what to make of today’s first half update?

Barratt Developments (#BDEV) – H1 sales growth but expects less in H2 “reflecting the reduced level of work in progress carried forward”

Covid Hasn't Knocked Down House Prices And Builders' Shares Should Rise on Higher Valuations.

Hello, Share Chasers. The great thing about my perpetually bullish stance on shares in British builders is that nothing seems to shake house prices. Not even the Covid scare has done anything to halt their unrelenting rise and rise. The main reason is that supply can't keep up with demand, but there are other catalysts too, like low-interest rates. 

There's No Place Like a Barratt Home say More Buyers even During a Pandemic

Hello, Share Grafters. A trading report just in from Barratt Developments (BDEV) helps to bear out what I’ve been saying about house builders and the virus – that it currently makes little difference to them. In the last three and a half months, the company put the last brick into 4,032 homes. That’s 780 up on the same period of 2019. The sales rate was better, too...

Barratt Developments (#BDEV) – recent sales rate “0.87 net private reservations per active outlet per average week, up 20.8% on last year”