Housebuilder sees modest growth in trade but warns of uncertainty caused by government cuts in funding
Barratt saw a modest increase in completions and rising profit margins during the previous year, according to a trading update issued today.
The housebuilder said 11,377 completions had been made in the twelve months ending June 30, with 6,324, slightly more than half, falling in the second half of the year.
They expected an £85m operating profit, up from £34.2m in 2009,
Operating margins were 5.5% for the second half of the year compared to a figure of 4% for the whole period.
Net debt at 30 June 2010 was around £375m, a dramatic fall from £1,276.9m in 2009.
The statement warned that “there is some uncertainty surrounding planning and government funding.”
Barratt is worried about coalition plans to devolve planning decisions to local authorities that could spell the end of housing quotas in many regions, and the £450m cut from the housing budget proposed for this year.