Signs of life out there, says £600m loss builder

Feb 26 2009 by Peter McCusker, The Journal

HOUSEBUILDER Barratt Developments has seen its losses soar to almost £600m after huge writedowns in land values.

But the Newcastle company’s share price rose more than 13% as it reported signs of recent increased activity. Shares in other housebuilders, including the other Newcastle giant Bellway, also responding positively.

The firm’s pre-tax loss of £592.4m in the six months to December 31 compared with a £196.4m profit in the same period last year.

Mark Clare, chief executive of the company which was founded in Newcastle in 1958, said: “This remains an intensely difficult market with little forward visibility. During the last six months we have driven sales, removed costs and cut our debt levels.

“We’ve reduced our prices and we’re now seeing some signs of increased activity levels in terms of visitor numbers and sales. However, there will be no recovery in the housing market until the availability of mortgage finance improves.

“So, we are continuing to offer customers every possible assistance to move house, ranging from shared equity products to part exchange on their current home.”