BARRATT Developments has pledged to go it alone and steer clear of recent merger activity in the housebuilding sector.

The Newcastle group said its landbank was large enough to enable it not to follow a trend which has seen seven of the UK's top 12 housebuilders join forces.

The comments come as Barratt unveiled a 24 per cent rise in pre-tax profits to £178.4m in the year to June 30.

Chairman Frank Eaton said: "Our successful track record in securing our land stocks and developing the business organically means that we have no requirement to purchase a land bank via company acquisition."

Barratt said it now had one of the largest landbanks in the sector, doubling in size during the last five years.

Mr Eaton said he had been encouraged that Barratt had increased sales completions by six per cent at a time when the industry-wide figure fell by eight per cent.

He said: "Despite the extensive planning delays facing the industry, our land teams have again been highly successful and have secured quality sites in locations of proven demand."

Barratt reported sales growth in all its regional markets, with the southern area continuing to be the strongest.

Turnover rose 21 per cent to £1.51bn as the group continued to benefit from a stable housing market and a competitive mortgage market.

Sales reservations since July 1 are ahead nine per cent year-on-year, with forward sales at a record £480m.

Yearly completion levels have risen from 5,000 nine years ago to more than 11,000, with the average selling price of £127,400 - up 13 per cent on last year. That reflects the group's quest to build more homes at the higher end of the market, with Barratt's portfolio stretching from first-time buyer homes at £40,000 to six- bedroom houses for £2.9m.

The group's operations in the North-East include 19 developments at prices ranging from £58,500 to £290,000.

Mr Eaton said: "Across the North-East we have a range of developments which are well-located in areas of good demand and where there is a shortage of good quality housing, including Newcastle, Sunderland, Teesside and Whitley Bay."

The company also has operations in California, which saw turnover rise by £35.8m to £107.8m. Barratt said local market conditions remained favourable with high employment and strong demand.

Shareholders will receive a total dividend of 13.07p a share, an increase of ten per cent on the previous payout