Barratt Developments is in a strong position to open new sites, therefore a potential ground for new building jobs, after it has successfully completed a refinancing of the company. It's £720.5 million rights issue was completed on 4 November this year, meaning it has significantly strengthened its financial position. At the end of this year, the company's net debt is anticipated to be around £700 million compared with last year when it stood at £1.42 billion.
Chief executive of Barratt Developments, Mark Claire said: "With the successful refinancing of the business now completed, we have substantially reduced debt levels and are in a strong position to buy land as opportunities emerge and to open new sites. Our net private reservation rates per site are running 34 per cent ahead of last year. While trading conditions in the housing market have improved, activity levels will remain constrained until the availability of mortgage finance increases particularly at higher loan to value levels."
Barratt is now operating from 362 active sites, starting with 39 for the first 19 weeks of the year, they expect the site numbers to stay balanced throughout next year.
The trading statement said: "Consistent with the re-planning and build programme, a shift in product mix towards a higher proportion of houses is expected. We continue to anticipate that this change in mix will improve average selling prices by around 8-10 per cent for the financial year."
The company is expected to build 12,000 new homes in 2010 which means new construction job offerings within the company. It continues to focus on managing stock levels to operate at the optimal level in this current economic climate.