Property developer Berkeley Group Holdings PLC (LON:BKG) has told investors that the stamp duty hike and uncertainty surrounding Brexit are to blame for its weaker-looking pipeline.
Forward sales for the coming six months stand at £2.9bn, down significantly from the £3.25bn it reported back in April.
“Reservations are 20% down on the same period last year, as a result of the market adjusting to increased stamp duty and the economic uncertainty arising from the result of the EU Referendum,” the group said in its half-year report today.
However, its share price added more than 8% on Friday after it reported a 33.9% rise in profits to just shy of £393mln for the six months to October.
The London-focused builder housebuilder sold 2,076 homes in the period – fewer than last year – but did so at an average price of £655,000 (2015: £506,000).
The balance sheet strengthened in the period as well, with net cash almost doubling to £207.9mln from £107.4mln.
The solid performance means that it is on track deliver a three-year pre-tax profit of £2bn come May 2018.
The group also told investors it has set itself a new target of posting a pre-tax profit of at least £3bn in the five years between May 2016 and May 2021.
Berkeley also gave a damning verdict on the government’s Help to Buy scheme, claiming it sold just 75 homes under the programme in the past six months.
Shares were up 8% to 2750p.
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