Barratt recruits ex-tobacco firm chief

Apr 29 2008 by Peter McCusker, The Journal

STRUGGLING housebuilder Barratt has appointed a former tobacco finance chief to its board as it searches for a path out of its difficulties.

The UK’s third-biggest housebuilder, with its registered office in Newcastle, has suffered a dramatic fall in its share price from 1100p in February last year to 285p last night.

There has been speculation it is about to undertake a rights issue or offload its commercial property wing – acquired just last year when it bought Wilson Bowden for £2.2bn – in an effort to raise cash.

Some analysts say it faces the most severe cash flow problems in the housing sector.

In the light of these difficulties, the company yesterday appointed Mark Rolfe as a non executive director.

Mr Rolfe, an accountant, was finance director of the Gallaher Group for seven years. He is also an executive director with Sage and Hornby.

Barratt chairman Charles Toner said: “His track record and breadth of experience as a finance director of a leading international company will be a great asset to us and he will no doubt make a unique contribution to the work of the board and its committees.”

Mr Rolfe will also serve on Barratt’s audit and nominations committee.

Analyst Alastair Stewart, of Dresdner Kleinwort, yesterday reduced his target price for Barratt to 199p, saying investors should sell “aggressively” before an interim management statement on May 14.