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/7607573.stm
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Barratt profits hit by downturn | Barratt profits hit by downturn |
(20 minutes later) | |
UK housebuilder Barratt Developments has reported a steep fall in profits as the property slump begins to bite. | UK housebuilder Barratt Developments has reported a steep fall in profits as the property slump begins to bite. |
The firm, which is cutting more than 1,000 jobs, said profit before tax totalled £137.3m in the year to 30 June, down 68% from a year earlier. | The firm, which is cutting more than 1,000 jobs, said profit before tax totalled £137.3m in the year to 30 June, down 68% from a year earlier. |
But Barratt said in light of "the extremely challenging market", the results were satisfactory. | But Barratt said in light of "the extremely challenging market", the results were satisfactory. |
The firm said its average selling price had risen 6% because of high-value sales in upscale London locations. | The firm said its average selling price had risen 6% because of high-value sales in upscale London locations. |
"There is little prospect for any material improvement in trading conditions until mortgage finance and customer confidence return," said the firm's chief executive Mark Clare. | |
Barratt, like many housebuilders, is suffering as both house and land prices fall. | |
Barratt was forced to write down the value of its land and work in progress by £208.4m. | |
The firm also sustained £15.9m of reorganisation costs, including redundancies, however this figure did not include the costs related to the 1,200 jobs cuts announced in July. | |
"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 will be paid," it announced. |