Barratt Development report decline in profits

Preliminary Financial Results for the year ended 30 June 2008 showed profit before tax pre exceptional costs decreased by 13.0% to £392.3m and profit before tax was £137.3m (2007: £424.8m).

Owned and controlled plots of land totalled 78,700, 4.2 years supply at current completion rates, whilst forward sales at 30 June 2008 were £697.6m well down from £1,413.8m last year. However as of 31 August 2008, forward sales had increased to £783.3m.

Given the performance of the business for the full year and the Board’s view on the outlook for the current year, no final dividend for 2007/8 was declared. Presumably in a move to conserve cash which has been seen thoughout the industry in these uncertain times.

Mark Clare, Group Chief Executive of Barratt Developments commenting on the results said: “Whilst we have produced a satisfactory set of results in an extremely challenging market, there is little prospect for any material improvement in trading conditions until mortgage finance and customer confidence return. In the meantime, we have successfully refinanced our business. Our focus today and looking forward is to maximise sales revenues, reduce costs and generate cash to reduce debt.”