Berkeley’s profit falls by 16.6%
Berkeley Group has seen a 16.6% like-for-like dip in its pretax profit to £230.8m for the six months ended 31 October.
Revenue was also down by 3.8% to £895.9m and basic earnings per share dropped to 149.6p, compared to 176.4p for the same period last year.
The housebuilder said it still expected to deliver a pretax profit of £500m for the year as its housing production had recovered quickly from the impact of Covid-19 in part due to its decision not to furlough any employees.
Berkeley Group has seen a 16.6% like-for-like dip in its pretax profit to £230.8m for the six months ended 31 October.
Revenue was also down by 3.8% to £895.9m and basic earnings per share dropped to 149.6p, compared to 176.4p for the same period last year.
The housebuilder said it still expected to deliver a pretax profit of £500m for the year as its housing production had recovered quickly from the impact of Covid-19 in part due to its decision not to furlough any employees.
Berkeley currently has 66 developments, of which 22 are long-term regeneration projects, which it said supported its anticipated 50% increase in housing delivery by 2024/25 from 2018/19 levels.
Having acquired four new sites over the past six months, Berkeley is now anticipating increased future gross profit in its land holdings of £6.65bn, up from £6.42bn in April.
The firm reported that it has £455m of surplus cash, which it expects to use either for new land acquisitions or for enhanced cash returns to shareholders over the period to 30 April 2023.
Berkeley added that its forward sales have increased to £1.94bn, up from £186bn in April due to a resilient market boosted by the government’s temporary reduction in stamp duty
The housebuilder plans to unveil a new strategy next year, which it said would be based around 10 priorities, including new science-based targets to ensure the firm takes a leading role in the housing sector in tackling climate change, and increasing its use of digital technology.
Rob Perrins, chief executive of Berkeley, said: “It is encouraging that a route out of the pandemic from a health perspective appears to be emerging, yet the full effect on the economy remains uncertain and is likely to be long lasting.
“The government stimuli has undoubtedly boosted activity in the housing market and revealed the true scale of underlying demand for good quality housing. Beginning the second half of this financial year in a robust financial position, we plan to commit further capital to our sites.”
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Photo © Berkeley Group
