Housebuilder sticks to long-term profit guidance
Berkeley expects its net cash position at the end of this financial year to improve on its half-year figure of £422m.
In a trading update for the period from 1 November 2023 to 29 February 2024 the housebuilder said its sales rates had been consistent with the first half of its financial year.
It reported “good” enquiry levels but noted that customers were “looking for the prevailing political and economic uncertainty to recede and interest rates to begin to fall”.
“Cash due on private forward sales, which was £1.96 billion at the half year (31 October 2023), has continued to moderate over the second half through a combination of strong delivery and the prevailing sales rates,” the firm reported.
Berkeley reported stable pricing across sites in the period and negligible build cost inflation across most trades.
>> Berkeley halts investment in new development due to planning and regulation concerns
It re-affirmed profit guidance which had forecast £1.5 billion of pre-tax profit across the three years ending 30 April 2026, including pre-tax profit for the current financial year in line with consensus of £550 million.
The business also extended the term of its £800m bank facilities during the period by a year to February 2029.
No comments yet