Barratt and Redrow Announce Rights Issues to Raise More Cash
British house builder Barratt is planning to raise £700m while Redrow is aiming for £150m. The companies are having to raise more cash from investors to finance future house builds due to a downturn in the current housing market. So far this year all the largest British house builders have risen cash through rights issues, with the exception of Persimmon.
Redrow has reported a poor set of annual results, marking a pre-tax loss of £140.8m, while Barratt lost a massive £678.9m.
According to the Nationwide Building Society average house prices are still down by 20% this year, with little sign of any change coming soon.
However, both companies are taking advantage of a shift in sentiment towards the sector, as their share prices have recovered significantly this year.
Shareholders Portal will be on hand to provide information to shareholders in both companies – be sure to bookmark the site and refer back during the process.