Profits up, debts down at Barratt
Barratt Developments, headquartered in Leicestershire, expects to report a significant rise in profits and reduction in debt for the year to 30 June 2010.
In a trading update to the Stock Exchange ahead of its annual results, the company said it profits of £85m, up from £34.2m the previous year. As of 30 June, the group net debt stood at £375m.
Despite the reduced debt, the company recorded £129.9m in exceptional costs arising from this outstanding debt, restructuring costs and impairment on Atlantic Quay 5. However, this is significantly lower than the £534.8m of exceptional costs incurred last year.
Mark Clare, group chief executive, said: “In the last six months we have driven a significant improvement in operating margin, delivered a profit for the group, and reduced debt levels by around £230m.
“This improved operating performance, combined with our success in agreeing terms on higher margin land means that the group is well positioned to secure further margin growth in what continues to be a challenging market.”
