Berkeley expects profit to be stable in upcoming annual results

Berkeley Group expects its full-year profit to be “similar” to the £504m it delivered a year ago, saying “market fundamentals remain strong” across its business. In a trading update covering the four months to the end of February, the company said its business had “traded robustly” and forward sales are expected to be above £1.7bn at the financial year end on 30 April. Berkeley’s estimated future gross margin in its landbank is likely to be ahead of 2019’s £6.4bn, the company said, with net cash expected to be similar to the half-year figure of £954m. The company added that it was altering the timing of new launches while it waits for clarity on the post-lockdown performance of the economy. “Sales reservations have been robust where we have had availability of stock,” the company’s trading update read. “While enquiry levels have been consistently strong, Berkeley has re-profiled the launch of new developments and phases into the market until the economy opens up post-lockdown and, as a consequence, we anticipate the value of reservations for the current financial year to be around 20% lower than last year.” To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette