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19 Jun 2019 | 08:01

Berkeley Group says profits met top end of expectations, but warns of further decline

Berkeley Group said annual profits fell by more than a fifth, but met the top-end of market expectations as the High-end housebuilder sold more homes at higher prices despite the impact of Brexit uncertainty. The company said, however, it expected pre-tax profits for the current fiscal year to fall by a third.

For the year ended 30 April, pre-tax profit fell 20.7% to £775.2m, but that was at the top end of market expectations, while revenues grew 4.1% to £2.96bn.

The homebuilder said it was 18% ahead of its December 2016 plans for £3.0bn of profits for the five years ending on 30 April.

The company sold 3,698 homes in the year, up from 3,678 last year at an average selling price of £748,000, up from £725,000.

But gross margin percentage decreased to 31.3% from 34.6%, while forward sales fell to £1.8bn for the year, down from £2.2bn at 30 April 2018.

The company reported net cash of £975.0m, down from £687.3m from a year earlier.

Looking ahead, the company said pre-tax profit for 2019/20 was anticipated to fall by around a third from 2018/19, in line with existing guidance, while pre-tax return on capital was expected to settle at around 15%.

'This has been another year of solid performance for Berkeley, delivering financial results ahead of expectations while unlocking an increasingly valuable mix of social, economic and environmental benefits for the communities in which we work,' the company said. At 8:01am: (LON:BKG) Berkeley Group Holdings The PLC share price was -46.5p at 3512.5p

Story provided by StockMarketWire.com
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