It's set to be a busy week for housebuilders. Berkeley kicks things off with a trading statement on Tuesday, which analysts expect to be brief following a detailed guidance in its full year results in June.
The developer issued a target to make an aggregate of £2bn in pre-tax profit over the next three years, not dissimilar to the three largest housebuilders Barratt, Taylor Wimpey and Persimmon.
Numis Securities said: “this profit will be strongly cash backed and will enable Berkeley to outperform against its previously stated dividend guidance and potentially pay double digit dividend yield toward the end of the decade.”
With such lofty targets in mind, investors will be keeping an eye on Berkeley’s assessment of the current market conditions and the forward order book.
Elsewhere, Premier Inn and Costa Coffee owner Whitbread will be releasing a trading statement and investors will be looking for the firm to continue the growth reported in July.
“Its brands have done well in recent years offering value at a time when consumers were looking to cut back on costs,” Graham Spooner at The Share Centre said.
“Many will also be focusing on progress with the group’s expansion plans, especially relating to Costa in China and new concepts such as the smaller “hub” rooms offered in some city centre Premier Inns,” Spooner added.
Significant announcements
Finals: Mucklow Group (LON:MKLW), Ashmore group (LON:ASHM), ISG (LON:ISG), Frontier Developments (LON:FDEV).
Interims: Hydro International (LON:HYD), InterQuest Group (LON:ITQ), SQS Software Quality Systems (LON:SQS), Verona Pharma (LON:VRP), Gamma Communications (LON:GAMA), Curtis Banks Group (LON:CBP).
Trading statement: Whitbread (LON:WTB), Berkeley Group Holdings (LON:BKG).
Economic: UK – BRC sales monitor, EU – GDP, US – consumer credit.