Barratt dips despite good start

May 15 2008 by Graeme King, The Journal

THE FTSE 100 index opened in positive territory, mainly spurred on by ongoing bid speculation surrounding the mining companies Rio Tinto and BHP Billiton. The index finally ended the day four points higher at 6216.

A number of regional companies were also in focus. Against a background of weakening housing market sentiment, Barratt Developments published its interim management statement for the 19-week period from January 1, 2008.

While the group stated that it had made an encouraging start to the year, conditions since the end of March have deteriorated. Total house building revenues for the period were £825m compared with £893m from the previous year, a decline of 7.6%. Shares closed 8.75p lower at 248.5p.

Elsewhere in the regional list, structural steel group Severfield-Rowen also published its interim statement. According to management, the company’s financial position remains strong and results were in line with expectations.

It also said that the forward order book remains strong and will underpin growth for the next 12 to 18 months.

The shares ended the day 11p lower at 308.5p.

Biofuels company D1 Oils announced its intention to conduct trials in the poor soil conditions of Sumatra, Indonesia for the growth of its principal biodiesel crop Jatropha curcas.

D1 Oils has been undertaking a series of strategic research and development partnerships with the objective of improving cultivation and productivity.

The shares ended 4p lower at 21p.

Fiona Erdozain FionaE@brewin.co.uk