Barratt says to return to full year pretax profit

Published 14th Jul 2011

Homebuilder Barratt Developments (BDEV.L) said it would return to full-year pretax profit after second-half trading was boosted by its London business, but added conditions outside of the capital remained challenging.

Barratt, which last month secured a 128 million pound deal with partner London & Quadrant to build 375 new homes in north London, said it expected full-year pretax profit before exceptional items of 40 million pounds compared with a loss of 33 million pounds in 2010.

The country's largest housebuilder by volume said on Thursday completions for the second half had been in line with the prior year but added that its operating margin increased to 7.8 percent from 5.9 percent in 2010.

Barratt said it expected full-year operating profit to be around 135 million pounds compared with 90.1 million in 2010.

"Whilst we have seen greater stability in the second half, trading conditions remain challenging in some areas outside London and the South East, where activity remains constrained due to the limited availability of mortgage finance," a statement read.

Rivals Persimmon (PSN.L), Taylor Wimpey (TW.L), and Bovis Homes (BVS.L) all said last week sales in the traditionally buoyant spring period have held up, lifting shares across the sector and giving a boost to an industry that is suffering from a four-year hangover from the credit crisis.

Source: ' Reuters '

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