Barratt may need to make further land writedowns after a slump in profit, analysts have warned.
The UK housebuilder said on Wednesday that its pre-tax profit was £137.3m in the year to 30 June 2008, down by 68% over the same period in 2007. However, its average selling price has risen 6% as a result of higher value sales. Turnover rose 16.7% to £3.6bn, up from £3bn the previous year.
The results follow a tumultuous year for Barratt, which arranged a relaxation of lending agreements with its banks in July. Its share price has climbed since, but analysts fear more land writedowns may be needed.
Mark Clare, group chief executive, said the results were “satisfactory against the backdrop of a rapidly deteriorating UK housing market”.