Barratt expects to reduce debt to £700m by end of year
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Barratt Developments expects to cut its debt by £722m from £1.4bn to £700m by the end of the year.
The housebuilder, which raised £720m via a rights issue and placing in September, anticipates that net debt as at December 31, 2009 will be around £700m, down from £1.42bn last year.
According to the group’s interim management statement, it says it expects to incur “exceptional costs” within the first half of 2010 of around £125m.
Barratt Developments chief executive Mark Clare says: “With the successful refinancing of the business now completed, we have substantially reduced debt levels and are in a strong position to buy land as opportunities emerge and to open new sites.
“While trading conditions in the housing market have improved, activity levels will remain constrained until the availability of mortgage finance increases particularly at higher loan to value levels.”
Going forward, the firm says further recovery will be dependent on increases in mortgage lending particularly in the higher loan to value segment.
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