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| Version 1 | Version 2 |
|---|---|
| Barratt profits hit by downturn | Barratt profits hit by downturn |
| (10 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. | "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, 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, following a fall in prices. | |
| 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. | 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. | "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. |