City File: Barratt builds back up from disaster

SIR Lawrie Barratt showed excellent timing with a visit to the City brokers Carr Kitkat on Friday, the day interest rates fell 1 per cent. Sir Lawrie returned from retirement to shore up the crumbling foundations of Barratt Developments last year, and now the cracks are beginning to disappear.

After last year's astonishing pounds 84m write-down, Barratt's land bank is down to just two years and no more provisions should be needed. Last month, the company revealed an pounds 11.3m pre-tax profit, and Carr Kitkat expects Barratt to chip in pounds 20m for the year ending in June. But some sign that the 2p dividend may be increased is needed if the shares are to motor from the current 64p.