Announcing its annual results for the year ended 30 June 2023, the housebuilder grew pre-tax profit by 10% to £705.1 million (2022: £642.3m) on revenue up 1% at £5,321.4m (2022: £5,267.9m).

Adjusted gross profit of £1,130.4m was down (FY22: £1,308.1m) and adjusted gross margin also fell to 21.2% (FY22: 24.8%), with reduced profitability reflecting the fall in customer demand, overall house price inflation running below build cost inflation and the operational gearing impact as the market has slowed down, the company said.

Total home completions also declined by 3.9% to 17,2063 (FY22: 17,908) reflecting the market slowdown experienced from September 2022.

Douglas McLeod, regional managing director for Barratt Developments Scotland, said: “We have delivered a strong operational performance in a challenging operating environment. Customers continue to face cost of living and mortgage affordability challenges, and new developments are increasingly constrained by an ineffective planning system. Today’s results reflect the hard work and dedication of our teams and the decisive actions we have taken as a business to respond to market conditions.

“Whilst we expect that the backdrop will continue to be difficult over the coming months, we are a resilient business with a strong balance sheet and an experienced management team. We remain committed to building the communities that our customers want to live in – delivering high-quality, sustainable homes at competitive prices to help address the country’s housing crisis and drive long term, sustainable growth for our business.”