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The Markets
by Proactive
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The Markets
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Proactive UK has moved.
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Real Estate

Berkeley Group profits increase but reservations slide

Berkeley Group Holdings PLC (LSE:BKG) said reservations had dropped by 15% compared to a year ago though overall the order book remained healthy.

The FTSE 100-listed housebuilder said pre-tax profits in the year to 30 April 2023 jumped by 9.5% to £604mln, while earnings per share also grew by 2.1% to 426.8p.

“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,” said Berkeley chief executive Rob Perrins in a statement.

Berkeley also reiterated guidance of at least £1.05bn in profit over the next two financial years.

Pricing for sales also remains firm, with build cost inflation beginning to moderate, it said, although the near-term outlook for the market remains “uncertain.”

Berkeley said forward sales were £2.1bn, even with the 15% lower value of reservations.

“Looking forward, we are well placed to meet our guidance for the next two financial years and continue investing in our existing regeneration sites, but will remain cautious in committing to new investment until the conditions for growth are in place,” Perrins added.

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