Barratt orders see improvement

13th May 2009 07:24

Housebuilder Barratt's order book has risen by 70% since the start of 2009, but the group is still cautious over the market with demand held back by lack of mortgage availability.Orders rose to £778.2m equating to 5,253 plots up from £455.8m and 3,529 plots at 1 January 2009. Of the current forward order book, £437.9m (56%) is contracted.Barratt added it sold over 4,600 homes at "acceptable prices" since the beginning of the year. "We are on track to deliver volumes and margins in line with our expectations. Whilst there are early signs of stability, the housing market remains challenging, and is constrained by a lack of mortgage finance on appropriate terms," chief executive Mark Clare said."The Spring selling season has shown improved visitor traffic and reservation levels compared to the first half of our financial year," Clare added."However volumes are currently at low levels, mortgage finance remains constrained and visibility is limited. We therefore remain cautious as to near term trading prospects," he commented.Barratt added that it remains focused on cash generation through control of cost, land investment and lower stock and work in progress levels. Debt reduction is in line with management expectations, it added. Borrowings were over £1.4bn.The group lost £592.4m in the first half of this year reflecting hefty land writedowns.