Shares in Barratt Developments were down on the FTSE 250 in afternoon trading despite the housebuilder reporting a more than doubling of pre-tax profit for the full year ended 30 June 2012.
The group saw revenues increase 14.1 per cent to over £2.3 billion, thanks in part to a rise in average selling prices from £178,300 to £180,500.
Full year pre-tax profit soared 159.3 per cent to £110.7 million while the group slashed its net debt nearly in half to £167.7 million.
Despite the apparently positive results Barratt said it would not be paying out any dividend but added that a final dividend would be likely next year.
Keith Bowman, Equity Analyst at Hargreaves Lansdown Stockbrokers, commented,
"Unlike consumers, housebuilders continue to benefit from lower land prices. The differential between selling prices and land prices - the core industry cost - has widened in recent years, with the likes of Barratt now reaping wider profit margins. The government has also played its part, lending its balance sheet to buying schemes and encouraging banks to lend if possible.
"More specifically, Barratt has adjusted its offering, moving up the scale towards higher value houses where possible, whilst moving its marketing effort online. Costs have remained a focus, whilst a strategy to reduce debt continues to be pursued.
"On the downside, the delay of a dividend payment until next year arguably signals a degree of caution, whilst the industry's concentration on the more buoyant London and the South East has seen the chase for land firming up prices. Furthermore, the planning environment remains complex, whilst volatility in commodity prices continues to underwrite uncertainty over raw material costs.
"In all, and despite the share price outperforming the wider FTSE-250 index by over 100% over the last year, analyst opinion currently remains favourable in tone (buy)."
By 12:25 shares in Barratt Developments were down 6.66 per cent on the FTSE 250 to 158.40 pence per share.