nice starting point..

Interim Management Statement.

Highlights

Average weekly net private reservations up 25.9% in the period due to an increased number of sites and an improved reservation rate per site

Private average selling price ("ASP") in the period increased by c. 7% compared to the prior year equivalent period to c. 207,000 as a result of changes in product mix and new site starts

New site openings from recently acquired higher margin land are expected to drive a significant improvement in profit before tax for the full year

Private forward sales up 27.4% on the prior year at 3,221 plots

Net debt as at 30 June 2012 expected to be at the lower end of our previous guidance at around 400m

Just closed for a chunky +5 on the day.

Questor share tip: All is on track for Barratt
.Garry White, 7:16, Thursday 17 November 2011

Yesterday's trading update from housebuilder Barratt Developments was reassuring, confirming that everything is on track.

Barratt Developments 90.45p +6.35 Questor says BUY

Of course, what the company really needs is for banks to start lending again to first-time buyers. But with this not looking imminent, the company has focused on building properties aimed at people further up the chain who hold more equity. This means it has built more large houses and fewer flats.

This, and the company's strong focus on the South East of the UK is the reason that the average selling price of the company's properties have risen 7pc to 207,000. The average weekly number of reservations for new homes has jumped 25.9pc since the start of the new financial year. This is partly down to the fact that the equivalent period of last year was so bad, due to investors being spooked by the comprehensive spending review in October 2010. Around 17 percentage points of this figure are caused by that bounce, with about 9 percentage points from new site openings.

Barratt has been buying cheaper land throughout the downturn, so the houses built on these new plots are higher margin.

Barratt does have debt unlike other housebuilders which should be about 400m by the end of the year. However, its larger than usual land bank means that sales over the next few years should bring this down significantly, and the balance sheet does not look overstretched.

The investment case remains intact. Cheaper land bought in the downturn is leading to higher profitability without any substantial rise in house prices. The UK remains structurally short of houses as the population continues to rise.

The shares are trading on a June 2012 earnings multiple of 14.3 falling to just 8.7 in 2013. The yield is 0.5pc, rising to 1.9pc.

The shares were named as a tip of the year at 88.65p but have been tipped as high as 188p in May. They are down 24pc from this high.

The shares remain a buy.

I don't think this is going to be a penny share for much longer.

quite a brave call as industry prognostications are that the housing market, especially at the budget end, has further falls ahead

Would like to see 1.40 again then be out i think.,.

Me to - think I would even go at a slight loss - been a long wait.

I don't hold - but all things being equal (whatever that means atm) the share price has been fairly bullish of late - as ever, time will tell!

Not quite - it peaked at 99.3.

Note from Liberum Capital:
"News out of the FT over the weekend and today suggests that the government will shortly announce a MIG scheme for new housing. We await detail but this could be genuinely helpful as it could increase the supply of mortgage funding for new housing, by reducing risks to lenders. The volume players should be the main beneficiaries, and we reiterate our preference for Barratt, trading at 0.46x book v 0.8x for the sector.
Housing strategy to be unveiled today. The FT on Saturday (and today) carried a story that the government will unveil today a strategy to help the housebuilding industry. Three specific measures are mentioned: i) a MIG scheme for the new housebuilding industry; ii) funding for work in progress, and iii) bringing forward government land for housebuilding.
MIG genuinely helpful. Mortgage indemnity guarantee (MIG) schemes have been used in the past and are insurance schemes that pay out in the event of default. By paying 10-20% of the shortfall between the mortgage outstanding and resale value in the event of default, the scheme protects lenders from losses. This means that lenders risks are reduced and so, all else being equal, should be able to lend more to housing. From what has been written so far, it appears that the scheme will be funded by government and new housebuilders, as it will apply to new houses rather than all houses. This could be genuinely helpful as it should increase the supply of mortgages for new home buyers, by lowering the risk of mortgages, and so tying up less of banks capital, and should raise the demand for mortgages by increasing the LTV available to buyers.
Other measures. Bringing forward land could be helpful for industry volumes, but we believe that house building is constrained by mortgage availability rather than land, so this may not lead to greater supply of private housing. However, this land could be developed to provide affordable housing where waiting lists remain long. The other measure that has been hinted at is a repeat of the 2008/09 scheme to fund work in progress to bring forward development. However, current schemes tend to be houses rather than flats, with reduced work in progress requirements, so this may not be as helpful as it was in 2008/09.
Volume housebuilders most to gain. We believe that the volume builders (Barratt, Persimmon and Taylor Wimpey) have most to gain from an increase in mortgage supply and reiterate our preference for Barratt, which is trading at 0.46x Dec11E book value, compared to 0.8x for the sector."

bdev (blue) and tw. (red - pays yer money and takes yer choice

I saw this on the BBC this morning, and I must confess - I thought it would give the builders a bit of a fillip today - hey ho!

Finally got there today - 100.4.

Only got to go up another 44p for me, not holding my breath but nice to see it has hit the 1 mark, for how long who knows!!!

13 December: Panmure Gordon: BDEV: Buy - TP: 158.00p - Reiteration

19 December: Citigroup: Neutral - TP Down: from 110.00p to 104.00p

21 December: BDEV Panmure Gordon: Reiterates Buy - TP: 158.00p

Things have gone pretty much as expected for housebuilder Barratt Developments.

The share were recommended as a margin progression play, as the group sold houses on plots of land that it bought cheaply during the slump. The group's focus on the South East of England, which hasn't been hit as hard by the downturn, was also a supportive factor.

Questor's predictions duly came to pass and the group also managed to refinance its debt. This meant the shares hit 116p in May, before they were dragged down in the second half.

Although things do not look rosy in UK plc, meaning the housing market will remain sluggish for some time, structural shortage of housing in the country bodes well for the future. However, banks need to start lending again to first-time buyers for the shares to outperform.

The shares remain a buy.

BDEV: Northland Capital Partners reiterate Add - TP unchanged at 120p.

Trading Statement.

Strong first half performance

Barratt Developments PLC (the "Company") is today issuing a trading update for the Company and its subsidiaries (the "Group") in respect of the six months to 31 December 2011 ("the period") ahead of its interim results announcement on 22 February 2012.

Highlights

-- Group revenues of c. GBP950m, an increase of c. 8% on the prior year equivalent period, with total completions of 5,198 units (Note 1)

-- Average selling price ("ASP") increased by c. 3% against the prior year equivalent period to GBP181k, with private ASP increasing by c. 4% to GBP200k, driven by further positive changes in mix

-- Group operating profit expected to be c. GBP61m, a c. 40% increase on the prior year equivalent period, with operating margin improving to c. 6.4% versus 5.0% in the prior year equivalent period

-- Recently acquired higher margin land continues to be brought into production and is expected to contribute more than a third of this financial year's completions

-- Net debt as at 31 December 2011 was lower than previous guidance at around GBP550m
-- Total forward sales as at 31 December 2011 up 8.1% on the prior year equivalent period at GBP698.1m, with private forward sales up 29.8% to GBP415.3m