Barratt crisis: still on line to make £395m pre-tax profit

Barratt has responding to the continuing surge of market speculation which it calls “misleading and inaccurate” by stating that as of today there is no change from the management statement it issued a month ago, back on 11 May.

The gist of Barratt’s current situation, then, with this ‘nothing has moved’ update issued on the Stock Exchange at 3.45pm this afternoon, is:

• Barratt is comfortable with market consensus forecast of completions figure of 18,300
• Barratt is also nodding its support for external analysts who forecast a £395m profit

Barratt says: “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.

“Based on the review of site margins at the time of the IMS (interim management statement), we continue to expect the requirement for development provisions (often referred to as land write downs) in the current year will be limited. Once year-end numbers are confirmed and a detailed review of the company's 600 developments is completed with our auditors, the company will provide a full update.” 

Barratt’s trading update is scheduled for 10 July. 

A spokesman said: “We have done as much as we can to put the correct position on record.”