The chairman of Barratt, the UK's biggest housebuilder, has backed the chancellor's decision to raise interest rates.
Frank Eaton said: "I think it is a gentle nudge on the tiller to make sure there are no peaks and troughs. But even if the rate rises higher, I don't think it will affect our performance." Barratt's pre-tax profit for the year ending 30 June 1999 rose 20% to £112m. Turnover increased 13% to £1bn on last year.
Completions in the UK rose 10% to 9556 at an average selling price of £99 500, a rise of 4%. Eaton said he wanted average selling price to stay at about £100 000 but that he expected another 10% increase in volume this year.
Margins improved by 2.2% to 12.6%. Eaton said that, although margins were not the highest in the sector, return on capital was among the best at 26.2%.
