Barratt FY profits fall, no buyback as rising mortgage costs bite

(Sharecast News) - UK housebuilder Barratt on Wednesday reported a fall in annual profits, cut its dividend and said there would be no share buyback this year as higher borrowing costs hit mortgage affordability. The company recorded a 16% fall in adjusted pre-tax profit to £884.3m. The full-year dividend was cut to 33.7p a share from 36.9p each a year ago.

"Looking ahead, we recognise that there are significant macro-economic headwinds, most notably the continuing inflationary pressures and the resulting interest rate environment which is impacting mortgage affordability and availability in the UK, as well as economic growth, employment and consumer confidence and spending," Barratt said in a statement.

Reporting by Frank Prenesti for Sharecast.com