Partner Article

Barratt remains in buoyant mood

HOUSEBUILDER Barratt Developments has predicted a return to the black in the second half of the year - after enduring heavy losses in 2009 – as forward sales reach a two-year high.

The Newcastle firm said forward sales are up 32% on this time last year at £1.07bn, compared to £811.9m in May 2009.

It is now gearing up to deliver a profit for the second half of the year, after suffering a loss of £48.5m before tax and exceptional items in the six months to the end of December 2009.

The group expects the average selling price of properties to be up 15% in the six months to the end of June 2010, in comparison to the first half of last year.

It said it is continuing to buy land at attractive values, with terms agreed on land worth £447.8m worth, equating to 12,286 plots since mid 2009.

Group chief executive Mark Clare said: “The increase in our selling prices coupled with effective cost control is leading to good margin growth and we expect to deliver a profit for the second half.

“Our forward sales now exceed £1bn, the highest level we have reported for two years, and we’re continuing to secure highly desirable land that meets our hurdle rates and will further accelerate our margin recovery. Nevertheless while the market has seen a measure of recovery we remain cautious given continuing economic uncertainty and constrained lending.”

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