MARKET REPORT: Barratt builds on record sales by restoring dividend

Savers and pensioners were given a boost after housebuilder Barratt Developments reinstated its dividend.

Record sales allowed the group to set aside a half-year payout of 7.5p per share. The housing market rebounded sharply after the first Covid lockdown brought viewings and sales to a standstill for weeks last spring.

But estate agents were quick to adapt by offering online viewings and pent-up demand led to a surge in completions.

Sales boom: Barratt Developments profits rose 2 per cent to £430m in the six months to December after it sold 9,077 new homes – up 9.2 per cent on the same period of 2019

Low interest rates and a temporary stamp duty holiday until the end of March have turbo-charged it since then.

Barratt profits rose 2 per cent to £430million in the six months to December after it sold 9,077 new homes – up 9.2 per cent on the same period of 2019.

More than 95 per cent of the company’s homes have been forward sold for the second half of its financial year as buyers – especially first-time homeowners – race to lock in a deal.

Housebuilders will be pleased to know there is chatter in Westminster that the stamp duty holiday may be extended. Despite the buoyant first-half results, Barratt and its peers could be in for a difficult time if the recent burst of activity burns out later in the year.

Stock Watch – Eco Animal Health

A recovery in China’s pig population helped drive a jump in profits at animal medicine maker Eco Animal Health.

Half-year profits at the AIM-listed group rose to £4.5million in the six months to September 30, up from £1.1million in the same period a year before.

Millions of pigs in China were culled after an outbreak of African swine flu – but herds have been restocked far quicker than expected. 

Shares in the group, which also had a strong performance in Brazil, rose 31.3 per cent, or 77.5p, to 325p.  

House prices fell for the time in seven months in January as new Covid restrictions and the end of the stamp duty holiday looms.

For the time being though, investors celebrated another dividend boost to their pockets after a drought across the Footsie last year, with Barratt shares rising 2.4 per cent, or 16p, to 689.4p.

Rivals were also on the move, with Persimmon up 1.3 per cent, or 36p, to 2736p, Taylor Wimpey rising 1.7 per cent, or 2.6p, at 158.4p and Berkeley Group gaining 0.3 per cent, or 13p, to 4365p. 

It was a mixed day for the wider market, with the FTSE 100 losing ground, falling 0.06pc, or 4.1 points, to 6503.72, while the FTSE 250 rose 0.3 per cent, or 56.86 points, to 20809.3.

Silver prices dropped by around 2 per cent to lows of $24.28 an ounce – dragging with it shares in Footsie-listed Fresnillo (down 3.3 per cent, or 34p, to 1000p), Polymetal (down 2.3 per cent, or 37p, to 1600.5p) and mid-cap group Hochschild Mining (down 3.9 per cent, or 8.8p, to 215p).

The value of the grey metal rocketed by as much as 10 per cent after Reddit’s army of retail investors piled in last week – shortly after using their flashmob tactics on US stocks Gamestop and AMC.

JD Sports rose by 2.2 per cent, or 18p, to 833p after raised £464million by selling new shares. The retailer went cap in hand to shareholders to fund a raft of new deals.

It is keen to expand – particularly in the US – and said lots of takeover opportunities have been cropping up lately. 

Rolls-Royce, on the other hand, was higher after it sold a division based in Norway called Bergen Engines to Russia-based TMH Group for £130million.

The takings will go towards Rolls’ target to sell £2billion worth of businesses as it tries to recuperate from Covid. 

The engineer, whose shares rose 2.2 per cent, or 2.02p, to 93.9p, has been battered by Covid and last week warned the latest lockdowns would reduce the flying hours of its engines even further.

The North Sea oil industry was given a vote of confidence by Enquest, which has shelled out £240million to buy a 27 per cent stake in an oil field about 70 miles north-east of Aberdeen. 

It will partly fund the deal through a share placing – and the news that investors’ holdings might be diluted sent shares down 7.4 per cent, or 1.02p, to 12.8p.

Sausage maker Cranswick benefited from a very merry Christmas as Britons stayed at home and scoffed endless festive meals.

Sales were ‘robust’ in the 13 weeks to December 26 and annual results would come in ahead of expectations. Shares climbed 0.4 per cent, or 12p, to 3450p.

This post first appeared on Dailymail.co.uk