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Barratt predicts tough times ahead despite profit boost

HOUSEBUILDER Barratt Developments today reported full-year operating profit that beat analysts’ estimates after cutting costs and selling more expensive homes and fewer apartments.

In a trading update the Newcastle firm said profit for the 12 months to June 30 was at least £85m, compared to the average estimate of seven analysts of £75.9m, according to Bloomberg data.

“The outlook for the new housing market in the U.K. is likely to remain challenging as a result of continued constraints on the availability of mortgage finance and overall economic concerns,” the company said in the statement.

Operating profit in the second half equalled about 5.5% of sales, compared with 1.8% in the year-earlier period, the firm said.

Barratt’s net debt was £375m as of the end of June, about £230m lower than six months earlier, Barratt said.

This was posted in Bdaily's Members' News section by Ruth Mitchell .