Barratt Developments has no plans for fund-raising exercise
In a move which surprised many investors, Barratt Developments, the UK housebuilder, has today revealed very difficult trading conditions in the UK property sector and debts of £1.4 billion. While a number of rivals have taken advantage of the recent about turn in confidence to raise significant funds to pay down their debts, Barratt Developments apparently has no plan to take such action.
Many analysts had already been pencilling in a fund-raising exercise to pay down the significant debt pile and as a consequence of the company's decision not to consider this route at this moment in time, the shares were marked down. Yet again we have also seen a rather downbeat summary of the UK property market with Barratt Developments highlighting the fact that finance for house buyers is the key to an eventual recovery in the sector.
There was a suggestion that "early signs of stability" are appearing but the fact that companies such as Barratt Developments have very little stock in hand, and are effectively selling houses to order, does not bode well for the immediate future. Whether this downbeat forecast from Barratt Developments will be replicated across the sector remains to be seen but recent optimism has taken a significant hit.
Share this..
Related stories
Tenants 'live in fear of eviction'
Thousands of private tenants are continuing to live in poor housing because they fear their landlords may evict them if they complain, a new report has claimed.
A study by the Citizens Advice Bureau (CAB) claims that up to one million could be affected in the absence of a law to prevent eviction in such cases.
The charity's estimate is based on government figures concerning the n...
Improving the attractions of your home with a lick of paint
Even in the current downbeat property market if you're looking to sell your home you need to ensure that it stands out from the rest and offers good value for money. While surveys and the like will show any potential structural damage or issues in this area it is well-known that the vast majority people will fall in love with their future home simply by looking around.
As a conseque...
Sterling rallies against major world currencies
The UK currency was today centre stage on the currency exchange markets after a sharp rebound across the board. While there are suggestions that the Barclays bank statement, indicating that maybe the banking sector is on the turn, has breathed new life into the UK currency many traders believe the news from the high street was far more telling.
If the news on the high street is conf...
When Charity Begins At Home
When organisers of the Absolute Return for Kids (Ark) charity dinner sat down to discuss their hopes for the event, they were forced to scale down their target from the £28 million raised last year to a ‘mere’ £15 million. However, on the night the dinner managed to raise a mighty impressive £25 million, at an event where tickets cost a staggering £10,000 each.
Th...
RBS chief banned from city
Johnny Cameron, the former head of the Royal Bank of Scotland's investment banking division, has effectively been blacklisted by the Financial Securities Authority (FSA) in a compromise agreement. Johnny Cameron has agreed not to take a top job in the city ever again in exchange for the FSA confirming it will take no disciplinary action against him with regards to his role at Royal Bank of Scotlan...
Read More