Tuesday, 10 June 2008

Barratts Development - taking a dip this morning

What is this all about?

Barratt - the UK house builder - is in free fall. The most recent price quote had them at 91.5 - down 24 percent on the close yesterday. A year ago, the company was trading at 1040. Today, Barratts is worth less than a tenth of what it was worth a year ago.

The BTL brigade might still have faith in the housing bubble, but Barratt investors started to run for the exit a year ago.


Anonymous said...

Waiting for another rights issue

Anonymous said...

Funny how the North East is doing now. Every year the local paper does a feature on the region's biggest employers. I forget the details exactly, but it's basically always the same:

1) Public sector
2) Barratt
3) Sage

This tumble does not bode well for the region, nor does an incoming Tory government and a destitute Treasury. What does that mean for all those 2-bed luxury apartments over the river?


aSteve said...

Barratt are not alone... all the builders have taken a pounding.

Redrow, Bellway, Bovis, Taylor Wimpey...

Even suppliers, for example, Travis Perkins, are in near free-fall.

Glad to see you're ahead of my comment below about looking at builders... ;)

aSteve said...

It would be great to know how many homes Barratt owns; what is their outstanding debt - and who finances it.

How would a Barratt bankruptcy affect the market?

aSteve said...

Here's something I think is interesting about Barratt... their Chairman:

-- From: http://www.barrattdevelopments.co.uk/ir/management/board.aspx --
Charles Toner, Chairman (Age 66). Charles was appointed a Non-Executive Director in May 2002. He was previously Deputy Group Chief Executive of Abbey National plc and is currently a Non-Executive Director of Ford Credit Europe (FCE) Bank plc. He was appointed Group Vice-Chairman in June 2002 and Group Chairman in October 2002.

So, the top man at Barratt has previous ties to mortgage lending and currently has another position within financial services. It all seems very incestuous.