Berkeley Group FY profits rise but outlook cautious

(Sharecast News) - Housebuilder Berkeley Group posted a 9.5% jump in full-year pre-tax profit on Wednesday but struck a cautious note over the outlook. In the year to 30 April, pre-tax profit rose to £604m from £551.5m as Berkeley hailed a "strong operating performance in a challenging environment". Revenues rose 8.6% to £2.6bn.

However, Berkeley said forward sales were down 15% on the year.

Chief executive Rob Perrins said: "Berkeley has delivered pre-tax profits in line with the guidance provided at the start of the financial year, maintained our shareholder returns programme and increased the net cash position.

"This is a very strong performance by our sales and construction teams, given market conditions and changing building regulations, and reflects the resilience of Berkeley's business model with its focus on the country's most undersupplied markets."

Perrins said that while the group is still seeing good levels of enquiry, it recognises that "the market is likely to lack urgency until there is more certainty over the trajectory of interest rates".