Rebuilding Barratt (TT DecJan09 p24-25)

No one could deny that housebuilders have endured a terrible time, with the credit crunch and the economic downturn both taking a heavy toll. But Barratt Developments is reacting by refinancing and strengthening its balance sheet. It announced a successful equity placing and rights issue, and amended its banking facilities, including a renegotiation of covenants. The result? A re-engineered balance sheet with substantially reduced gearing and a group ready to take advantage of the long-term market opportunities in new homes.