Partner Article

Market remains tough, says Barratt

HOUSEBUILDER Barratt Developments today said wider economic fears and the lack of mortgage finance meant the market for new housing remained challenging as it reported a climb in profits.

House prices fell much faster than expected last month, according to a monthly survey from mortgage lender Nationwide, stoking concerns that the country could be headed for a double-dip recession.

Newcastle-headquartered Barratt said it would therefore continue to focus on prices rather than volume and would not reinstate dividends.

For the year to end-June it reported operating profit of £90.1m, up from £34.2m one year ago.

The company said: “During the year we have seen a very significant improvement in the performance of the business - operating margin in the second half increasing to 5.9%, returning us to profitability and gearing falling to 18%__.

_“_Whilst the outlook for the UK housing market is still challenging, our priority remains optimising prices rather than volume and securing high quality land that will continue to drive our margin recovery.“

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