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Realistbear

Barratt To Write Dowwn 100,000,000.00 On Monday

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http://www.telegraph.co.uk/money/main.jhtm...6/cnbarr106.xml

Barratt to reveal £100m writedown
by Jonathan Russell
Last Updated: 2:18am BST 06/07/2008
Struggling housebuilder Barratt Developments will this week write down the value of its landbank by about £100m and provide details on a waiver of its banking covenants in an attempt to reassure investors about its financial health.
Although the fall in the value of its assets is much smaller than the £620m hit taken by rival Taylor Wimpey last week, it will push Barratt closer to breaching banking covenants when it next faces a covenant test in December.
Barratt has been locked in talks with its 10 bankers for weeks to find a way through the slowdown in the property market without breaching loan to value covenants on its £1.7bn of debt...../
By cutting overheads and closing regional offices the companies hope they can ride out the downturn.
:lol:

Such bad news and so early in the crash cyle. The credit crunch has yet to hit employment and the lagging effects of consumer spending will not hit until Autumn. How much then will they be seeking to write-down?

Edited by Realistbear

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I was discussing this with a friend yesterday from the building trade.

Ultimately, what is a building company like Barratts or Wimpey? A few hundred people in an office building, sites around the country with workers on them, many of them sub-contracted, and a land bank. Oh, and a load of debt.

That's about it.

If Barratts go bust - so what? The land would come back on the market at a knock-down price, enabling other builders to snap it up and so making any new building viable. The ex-Barratt workers would get jobs with the new developers.

The only losers are the few hundered people in the office.

And the banks :lol:

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yeah but what about the heritage of the Barratt name? What about young Henry Barratt who built his first house just using a pick axe and shovel back in 1780?

Ah, its just a corporate name these days......

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http://www.telegraph.co.uk/money/main.jhtm...6/cnbarr106.xml
Barratt to reveal £100m writedown
by Jonathan Russell
Last Updated: 2:18am BST 06/07/2008
Struggling housebuilder Barratt Developments will this week write down the value of its landbank by about £100m and provide details on a waiver of its banking covenants in an attempt to reassure investors about its financial health.
Although the fall in the value of its assets is much smaller than the £620m hit taken by rival Taylor Wimpey last week, it will push Barratt closer to breaching banking covenants when it next faces a covenant test in December.
Barratt has been locked in talks with its 10 bankers for weeks to find a way through the slowdown in the property market without breaching loan to value covenants on its £1.7bn of debt...../
By cutting overheads and closing regional offices the companies hope they can ride out the downturn.
:lol:

Such bad news and so early in the crash cyle. The credit crunch has yet to hit employment and the lagging effects of consumer spending will not hit until Autumn. How much then will they be seeking to write-down?

This £100m sounds like a complete joke. I don't know when their year end is, but I'm guessing that this is just a 'swizz' figure, massaged from the accounting system in a way that can be justified but does not having and true basis.

If the have £1.7b in debt, then the land bank value of the books must be huge and I would have thought bigger than that of wimpey (anyone got figures). They must be in realy trouble and trying not to spook the market and their bankers by putting on a poker face and trying to bluff that £100m is the only damage done. Dreamers!

If their shares are up on Monday it just shows how gullible people are to believing this VI BS.

AFP

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Think must have been a Journo typo...

Struggling housebuilder Barratt Developments will this week write down the value of its landbank AS about £100m and provide details on a waiver of its banking covenants in an attempt to reassure investors about its financial health.

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PDs.100 million is not much.

They need to take bigger writedowns, and start selling off those excess inventories.

They may be writing off Pds.500 million - 1 billion before they are done

My guess is that BDEV will convince its banks to swap some debt for equity,

and then within 6-12 months, the banks will force a sellout to Berkeley Homes which is debt free

Any inside info on the Berkeley Homes point, Bubb?

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Barratts are hanging on by their finger nails at the moment but it looks like they are going to survive at the end of the day.

still, theres tommorrow to get through next.

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yeah but what about the heritage of the Barratt name? What about young Henry Barratt who built his first house just using a pick axe and shovel back in 1780?

Ah, its just a corporate name these days......

Well, at least they're still using the same traditional constuction methods.

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Barratts are hanging on by their finger nails at the moment but it looks like they are going to survive at the end of the day.

These are exactly the species that better get wiped off the map mate.... I honestly hope that if they do survive, there is some business sense in it. In any case, the incumbent shareholders will suffer big time, i.e. will learn how strong the financial markets' whip is as their stake will get diluted big time at this stage.

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100m?

so they think land values are down 2%??

someone i know who works in buying/selling land tells me it is closer to the 25-30% mark.

they should be writing down £1.5B

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Gleaned from the Barratts share forum on ADVFN

"Analyst Consensus 12 month target priceThe 6 analysts offering 12 month price targets for Barratt Developments (BDEV:LSE) have a median target of 150.00, with a high estimate of 619.00 and a low estimate of 100.00. The median estimate represents a 255.03% increase from the last price of 42.25."

Complete boolsheet! How do they estimate a high of 619.00?

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PDs.100 million is not much.

They need to take bigger writedowns, and start selling off those excess inventories.

They may be writing off Pds.500 million - 1 billion before they are done

My guess is that BDEV will convince its banks to swap some debt for equity,

and then within 6-12 months, the banks will force a sellout to Berkeley Homes which is debt free

Yup Pikey Pidgely at Berkely just paid out tens of millions in bonuses to himself and his mates (directors). They are either getting hold of the cash before the books are examined or they really are bucking the trend.

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  • 396 Brexit, House prices and Summer 2020

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      • down 5% +
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      • Even
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      • up 5%



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