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Barratt shares dive 42 per cent

Housebuilder Barratt Developments saw its shares fall 42 per cent yesterday as the liquidity squeeze continues to hit the building sector.

The group attempted to reassure investors with a statement stating that it remains comfortable with its position.

The firm has seen its shares dive 95 per cent since their peak early last year, and 50 per cent since Monday.

In a statement issued yesterday, the firm says it remains comfortable with market consensus forecasts for completion numbers at 18,300 and profit before tax and exceptional charges of £395m.

It says it 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.

Barratt says that based on the review of site margins at the time of the IMS, it continues to expect the requirement for land write downs in the current year to be limited.

It says once year end numbers are confirmed and a detailed review of the company’s 600 developments is completed with its auditors, the company will provide a full update.

The Group’s trading update is scheduled for 10 July.



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