This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7498978.stm
The article has changed 8 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| House builder Barratt cuts jobs | House builder Barratt cuts jobs |
| (20 minutes later) | |
| UK house builder Barratt Developments has confirmed it is cutting more than a thousand jobs due to the housing slump and the squeeze on mortgage lending. | UK house builder Barratt Developments has confirmed it is cutting more than a thousand jobs due to the housing slump and the squeeze on mortgage lending. |
| Barratt, which employs 6,700 staff, said it was cutting 1,200 jobs by closing two divisions and merging other parts of its business. | Barratt, which employs 6,700 staff, said it was cutting 1,200 jobs by closing two divisions and merging other parts of its business. |
| The company also said it had reached a deal with its lenders to give it extra breathing space to pay back its debt. | The company also said it had reached a deal with its lenders to give it extra breathing space to pay back its debt. |
| It added it expected housing production to hit a 50-year low in 2008. | It added it expected housing production to hit a 50-year low in 2008. |
| Barratt said a £400m debt facility, which was due to be paid next April, has been extended to July 2011. | |
| 'Challenging period' FROM THE TODAY PROGRAMME More from Today programme | |
| It has also agreed a new deal with its banks to reduce the chance of breaching it debt covenants. | |
| Chief executive Mark Clare said: "We have now substantially improve our competitive position and are better placed to deal with what will be a very challenging period ahead." | Chief executive Mark Clare said: "We have now substantially improve our competitive position and are better placed to deal with what will be a very challenging period ahead." |
| The firm has been hit by a sharp drop in the number of available mortgages for consumers and the wider housing downturn. | The firm has been hit by a sharp drop in the number of available mortgages for consumers and the wider housing downturn. |
| Barratt said total sales completions fell by 13.8% in the year to June, compared with 2007. | |
| Completions for private homes fell 18.4%. | |
| More than a fifth of completions were for social housing. | |
| Average sales rates to private buyers fell 43% year-on-year in the past six months. | |
| Cancellation rates for its homes jumped 33.6% over the past year, reflecting the "acute shortage of mortgage finance", Barratt said. |