New Build Developer Barratt Cautious
In a stock market announcement this morning Barratt, the new homes developer, announced that they have completed on 1349 new build homes between 23rd March and 12 April 2020 but they “expect any further home completions and reservations to be very limited.”
With their site sales offices and construction sites all closed and 85% of employees furloughed they have stopped reporting on future expected financial trends.
The are also:
- Suspending all land buying activity
- Ceasing all recruitment activity
- Postponing all non-essential capital expenditure
- Actively managing cash flows whilst ensuring that we are paying our suppliers and subcontractors on time
- Cancelling the interim dividend of 9.8 pence per share (c. £100m)1, which was due to be paid on 11 May 2020
- Furloughing around 85% of our employees.
- Cut the pay of senior Directors by 20%
Barratt Developments also report that they remain financially strong, with a well-capitalised balance sheet and a robust cash and liquidity position. As at 14 April 2020 the Group had c. £450m of cash plus other substantial banking facilities.
Are you a new build conveyancer working on the other side? How has this impacted your business? Let us know by contacting [email protected]