Barratt Developments has reported a revenue of £4.16bn ($5.48bn) in financial year 2024 (FY24), marking a 21.7% decrease from £5.32bn reported in the previous fiscal year.  

For the year ending 30 June 2024, the company's gross profit saw a 47.7% decrease, coming in at £509.5m compared to £974.9m in FY23.

The adjusted gross profit for FY24 was £689m, a 39% fall from £1.130bn last year.  

This downturn was attributed to the combined effects of higher sales incentives, inflation in building costs, and a decrease in completion volumes, which reduced fixed cost efficiencies. 

Basic earnings per share (EPS) plummeted by 77.8% to 11.8p per share, down from 53.2p in FY23. 

Joint ventures (JV) contributed to the financial strain, delivering a lower adjusted profit of £14.9m, a drop from £32.5m in the previous year.  

After accounting for adjusted charges for JV legacy properties of £12.6m, down from £23.7m in FY23, JV reported profits fell to £2.3m from £8.8m in FY23. 

As a result, reported profit before tax for the year sharply declined 75.8% to £170.5m, from the £705.1m reported in FY23.  

The operating margin also suffered, falling 910 basis points from 13.3% in the 2023 financial year to just 4.2% in FY24. 

The company also reported an approximately 18.6% drop in total home completions, with 14,004 homes completed compared to 17,206 in 2023.  

Barratt Developments CEO David Thomas said: “We are pleased to have delivered total home completions at the upper end of our expectations for the year, despite the challenging backdrop.  

“I am grateful to our skilled and dedicated teams of employees, subcontractors and suppliers for continuing to deliver high-quality homes that people want to live in.” 

Barratt Developments recently completed the acquisition of Redrow, subject to obtaining Competition and Markets Authority clearance.