Struggling UK housebuilder Barratt Developments today said it had crashed to losses of almost £600m sterling after huge writedowns in land values.
The firm's pre-tax loss of £592.4m in the six months to December 31 compared with a £196.4m profit the same time the previous year.
Most of the losses in an 'intensely difficult' market came from a £494.9m charge to reflect impairment charges on its land bank.
Barratt said it had seen 'some signs' of increased activity in the market, but warned underlying demand for homes was still being crippled by a lack of mortgages.
'Whilst there still appears to be a strength of demand for new homes, especially against the backdrop of very low production levels, without access to finance this is unlikely to deliver any short-term respite to the industry,' it said.
Barratt shed 29% of its staff - about 1,900 jobs - over the year to cope with the steep decline in the housing market. It has also identified a further £80m in cost savings during its next financial year.
It said that as of February 15, the company's forward sales had risen to £633m, representing about 80% of its full-year target. But the firm has had to tempt would-be buyers with heavy use of incentives and average selling prices fell almost 10% to £160,700 over the period.
Since the peak of the housing market in June 2007, Barratt added that average prices had fallen about 27%.
The housebuilder took on huge debts to buy rival Wilson Bowden as the boom was approaching its height two years ago - sending its share price plunging by more than 90% since the credit crunch struck.
