Berkeley reiterates full-year guidance

15th Mar 2024 07:01

(Sharecast News) - Berkeley Group reiterated its full-year outlook on Friday and said it had secured the bulk of sales for the next financial year.

The blue chip housebuilder, a specialist in developing brownfield sites for the luxury market, said it remained on track to deliver pre-tax profits of £550m and at least £1.5bn of profit across the three years to 30 April 2026.

Last year, Berkeley posted annual pre-tax profits of £604m.

In common with other housebuilders, Berkeley has been hit by surging inflation, higher interest rates and weaker demand.

The firm said sales in the second half had been consistent with the first six months of the year, around a third lower year-on-year.

However, it added that more than 70% of sales had already been secured for the next financial year.

It continued: "Enquiry levels are good, with customers looking for the prevailing political and economic uncertainty to receded and interest rates to begin to fall.

"Pricing has been stable across our sites during the period and above business plan levels, while cost build inflation is negligible across most trades."

Berkeley is due to publish results for the year to April end in June.