| align="center"> | | | | Barratt Developments, like its rivals, has been hit |
| Barratt Developments Plc, the U.K.'s largest house | | | | hard by one of the worst housing downturns in |
| builder by volume, today said it made a H1 | | | | decades. But as demand for housing and house |
| pre-tax loss of £48.5 million before | | | | prices slowly recover, Barratt is planning to go |
| exceptional items, but expects significantly better | | | | through its land bank quickly and start |
| margins in the second half of the year after | | | | developments on new land to achieve higher |
| improving its trading performance in the first half. | | | | margins. |
| Chief Executive Mark Clare said: "During the last | | | | Since mid-2009 the Group has agreed terms on |
| six months, we have improved our trading | | | | £358million of land, comprising 74 sites and |
| performance, successfully refinanced the business | | | | 9,038 plots, with an average plot cost to average |
| and invested in new land. The value of our | | | | selling price ratio of 20%, which will deliver |
| forward order book is now up 27% year on year | | | | attractive margins based on current selling prices. |
| and with our ongoing focus on optimising selling | | | | The company previously said it plans to increase |
| prices we are expecting to see significant | | | | margins to their peak levels in three to four |
| improvements in operating margin in the second | | | | years. |
| half." | | | | Barratt cut its net debt to £605.3 million at |
| The company said that total completions for the | | | | Dec.31, a reduction of £671.6 million since |
| six-month period ended Dec. 31 were down to | | | | June 30, helped by the net proceeds of its Placing |
| 5,053 compared with 6,905 in the same period a | | | | and the Rights Issue, the sale of a commercial |
| year earlier. Revenue fell to £872.4 million | | | | property and ongoing strong cash management. |
| from £1.26 billion. The average selling price | | | | Exceptional items of £129.9million primarily |
| increased 3.5% to £166,300, driven by | | | | related to the Group's amended financing |
| changes in mix. Operating margin increased to | | | | arrangements, which came into effect following |
| 2.4% from 1.3% in 2008. | | | | the Placing and the Rights Issue. |