Exceptionals hit improving Barratt Developments
Barratt Developments has hailed a year of improvement, despite exceptional costs keeping it in the red.
The Coalville-based business reported a pre-tax and pre-exceptionals profit of £42.7m for the year to 30 June 2011, up from a loss of £33m the previous year.
However, it also faced costs of £54.2m, comprising £7.7m restructuring costs and £46.5m finance costs.
Chairman Bob Lawson called the return to pre-exceptionals profit as "an important milestone" in the business' recovery.
Mark Clare, group chief executive, said: "We have made considerable progress in rebuilding profitability by optimising selling prices, improving operational efficiency and securing new higher margin land.
"Whilst we expect progress to continue, further recovery in the housing market remains dependent on improving economic conditions and the ability of our customers to secure mortgage finance."
The company reduced its net debt in the period to £322.6m, down from £366.9m, and said it has a refinancing package in place with £1bn of committed facilities and private placement notes.
Private average selling price (excluding joint ventures) rose by 7.4 per cent to £198,900 from £185,200.
