Terry Robinson [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons
The largest housebuilder in Britain is considering relocating its construction block manufacturing operations from Germany to the United Kingdom in order to mitigate the possible effects of Brexit.
Barratt Developments stated that 90 percent of the large format blocks of the company that are used in residential projects are sourced from the United Kingdom. However, the remainder are imported from abroad – possibly leaving it vulnerable to a shortfall in materials after Brexit.
As talks between the European Union and Britain turn towards safeguarding the free movement of goods until 2020, Barratt is one of many businesses in the United Kingdom that is working to develop contingency plans to make sure that any knock-on effects from the withdrawal of the United Kingdom from the European Union are minimal.
David Thomas, the chief executive officer, stated: “We’re currently having a discussion with the supplier about whether production can come from the UK rather than directly from Germany.”
The said news comes on the same day that the company posted a healthy 7 percent rise in pre-tax profits for the second half of last year as compared to the same period in 2016, to £342.7m. Revenues increased by 10 percent to £1.9bn.
The average selling price of the company for its properties increased by 7 percent to £281,000 over the six-month period.
Barratt stated that it was able to complete 3,342 new affordable homes last year as a whole and credited the performance to “good customer demand” and the “positive market backdrop.”