Housebuilder issues City statement after share price is halved this week

Barratt has moved to calm investors’ nerves after the company’s share price fell by more than half since Monday from 120p to 60p.

It followed a fall of 78% over the last month from 276p.

Mark Clare, Barratt chief executive

In a statement to the City Barratt said: “The company remains comfortable with market consensus forecasts for completions numbers (18,300) and profit before tax and exceptional charges (£395m).

“The Group continues to operate within its £2.6bn of committed facilities and its banking covenants. Given anticipated completion numbers, net debt at the end of June is expected to be approximately £1.7bn in line with previous guidance.”

One analyst said the statement may have done more harm than good. He said: “I can’t see the point of saying anything unless you’ve got a remedy. They have completely ignored the fact the share price has been decimated.”