Share Prices & Company Research

Market News

07 Dec 2018 | 07:29

Berkeley Group raises guidance despite drop in profits amid housing market slowdown

High-end housebuilder Berkeley Group raised its full-year profit guidance Friday despite reporting pre-tax profit fell by more than quarter amid a slowdown in the London and Southeast housing market.

Berkeley increased its pre-tax profit guidance for the current year by at least 5% and now anticipated a similar split between the first and second half to last year when 55% was earned in the first six months of the year, the company said.

For the year ended 30 September 2018, pre-tax profit fell 25.7% to £401.2m and revenue declined by 0.7% to £1.65bn.

The company sold 2,027 homes, down from 2,190 a year earlier, at an average selling price of £740,000, up from £721,000 a year earlier.

Guidance for next two years unchanged with pre-tax return on earnings expected to normalise thereafter towards 15%, based on current market conditions, the company said.

The homebuilder said its short-remained uncertain due to the ongoing Brexit process and a number of headwinds in the operating environment in London and the South East. 'This uncertainty affects sentiment and confidence which has a consequential adverse impact on investment levels and transaction volumes with a number of developers withdrawing from these markets,' it added.

Story provided by
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.