Barratt to make second half profit

12th May 2010 07:24

Housebuilder Barratt expects to report an underlying profit in the second half of its current financial year after a pick-up in both prices and forward reservations.For the six months to 30 June 2010 its average selling price increased by around 15% on the prior year equivalent period and will be at least 10% up for the full financial year.Net private reservations during the period from 1 Juanury to 9 May were up 4% on the prior year and up 14% on the first half, with total forward sales up 32% on prior year at £1.07bn.The housebuilder, which lost nearly £70m in the second half of last year, added that net debt at the 30 June year end is anticipated to be below previous guidance at around £500m due to the deferral of land payments."The increase in our selling prices coupled with effective cost control is leading to good margin growth and we expect to deliver a profit for the second half. Our forward sales now exceed £1bn, the highest level we have reported for two years," chief executive Mark Clare said, though he remains cautious over the the general economic picture."While the market has seen a measure of recovery we remain cautious given continuing economic uncertainty and constrained lending," he commented.