Mark Clare, Group Chief Executive of Barratt Developments, commented:
“This has been an intensely difficult year for the Group following the sharp decline in the UK housing market. In the first half, as prices fell, we drove sales and reduced stock and debt levels. In the second half we have been able to maintain price levels and increase our reservation rates, with these encouraging trends continuing through the summer into the autumn.”
“The Board has therefore decided it is now an appropriate time to substantially strengthen the Company’s balance sheet and reduce its debt levels via a Placing and a Rights Issue. This will also enable the Group to develop a number of its existing sites and to take advantage of land purchasing opportunities as they arise.”
Highlights:
- Net private reservations per site per week were up 10.5% compared with the 2008 financial year, 6.0% down for the first half and 28.6% up in the second half.
- Completions for the full year were 13,202 (2008: 18,588), a decrease of 29.0%, at an average selling price of £157,200 (2008: £183,100). Group revenue decreased by 35.7% to £2,285.2m (2008: £3,554.7m).
- Operating profit before exceptional items was £34.2m (2008: £550.2m) at a margin of 1.5% (2008: 15.5%).
- Operating exceptional items totalled £519.5m (2008: £255.0m) including £499.5m (2008: £208.4m) impairment of inventories of which £494.9m (2008: £nil) was recognised at the half year. Exceptional items charged after operating profit totalled £15.3m (2008: £nil).
- The Group made a loss before tax and exceptional items of £144.1m (2008: £392.3m profit) and a loss before tax of £678.9m (2008: £137.3m profit).
- Adjusted basic loss per share before exceptional items was 23.8 pence (2008: 79.6 pence earnings). Basic loss per share was 135.8 pence (2008: 25.0 pence earnings).
- Net debt has reduced by £373.7m since 30 June 2008 (£145.9m since 31 December 2008) to £1,276.9m (2008: £1,650.6m).
- The Group continues to comply with the financial covenants in its existing financing arrangements.
- As previously announced no dividend will be payable for the year ended 30 June 2009 (2008: 12.23 pence per share).
- At 30 June 2009 net asset value per share was 672 pence (2008: 827 pence) and net tangible asset value per share was 415 pence (2008: 570 pence).
- Forward sales at 30 June 2009 were £464.3m (2008: £697.6m) representing 3,328 plots (2008: 4,586 plots). At 13 September 2009 forward sales had increased to £733.4m.
- Over the eleven weeks since the financial year end the Group has delivered 2,152 net private reservations (2008: 1,857). This represents an average of 0.46 net private reservations per site per week, up 53.3% on the equivalent period in the last financial year.
- The Board has today announced a fully underwritten Placing and Rights Issue to raise gross proceeds of approximately £720m, together with amended financing arrangements which will come into effect upon successful completion of the Placing and the Rights Issue.
-ends-
Certain statements in this document may be forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends or activities should not be taken as representation that such trends or activities will continue in future. Accordingly undue reliance should not be placed on forward looking statements.
There will be an analyst and investor meeting at 10.00am today at UBS, Ground Floor Presentation Suite, 1 Finsbury Avenue, London EC2M 2PP. The presentation will be broadcast live on the Barratt Developments corporate website, www.barrattdevelopments.co.uk/ir/equityraise/, from 10.00am today. A playback facility will be available shortly after the presentation has finished.
The financial analysts’ presentation slides will be available on the Barratt Developments corporate website, www.barrattdevelopments.co.uk/ir/equityraise/, this morning.
Further copies of this announcement can be obtained from the Company Secretary’s office at:
Barratt Developments PLC, Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.
The 2009 Annual Report and Accounts is available from today, 23 September 2009, on the Barratt Developments PLC website www.barrattdevelopments.co.uk on the following link: www.barrattdevelopments.co.uk/ir/reports/
Copies of the 2009 Annual Report and Accounts are being submitted to the UK Listing Authority and will shortly be available for inspection at the UK Listing Authority's Document Viewing Facility which is situated at:
The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS.
Telephone number: 020 7066 1000.
For further information please contact:
Barratt Developments PLC
Mark Clare, Group Chief Executive 020 7299 4898
David Thomas, Group Finance Director 020 7299 4896
Philip Bowcock, Group Financial Controller 020 7299 4882
For media enquiries, please contact:
Barratt Developments PLC
Dan Bridgett, Head of External Affairs 020 7299 4873
Maitland
Liz Morley 020 7379 5151
Neil Bennett
Click to open the complete Annual Results for the year ended 30 June 2009
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