Newcastle housebuilder cuts debt

Jan 15 2009 By nebusiness

NEWCASTLE housebuilder Barratt Developments has revealed that it has reduced its debt by £230m but its outlook for the housing sector remains bleak whilst mortgage lending is constrained.

The housebuilder reported a pick-up in sales during the Autumn selling period, but total completions fell by 23.8 percent to 6,905 in the six months to December 31.

It also said that despite cost savings, operating margins for the full year are seen lower than its previous guidance.

Net debt was reduced to £1.42bn at the end of the year, while the company also made an early repayment of a £200m loan which was due in April.

Today's announcement comes after the housebuilder completed a £400m refinancing package in 2008, with new covenants in place until 2011.