Barratt Developments Aims For Growth In Challenging Market

14th Jul 2010 07:19

By Simon Zekaria Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Barratt Developments PLC (BDEV.LN), the U.K.'s largest house builder by volume, said Wednesday that it is well-positioned for further margin growth in a challenging market. "The outlook for the new housing market in the U.K. is likely to remain challenging as a result of continued constraints on the availability of mortgage finance and overall economic concerns", the group said in a statement. The company said it completed 11,377 home builds in the year to June 30, in line with its expectations. The average selling price rose by about 11% over the year to roughly GBP174,000, gaining around 18% in the second half. Barratt said it is targeting total completions in fiscal year 2011 to be approximately 5% to 10% higher than the previous year. The company, like fellow U.K. builders, is under pressure to start building on new and cheaply-bought land, to raise recession-battered margins. Barratt aims to return to its peak margin level of some 15% to 17%. Barratt shares closed Tuesday at 105 pence, valuing the company at GBP1.01 billion. They have fallen 13.6% in the past three months on fears of a renewed slump in home buyers' confidence amid U.K. government spending cuts. -By Simon Zekaria, Dow Jones Newswires; +44 20 7842 9410; [email protected] (END) Dow Jones Newswires July 14, 2010 02:19 ET (06:19 GMT)