Berkeley sticks to profit guidance even as sales slow

Housebuilder Berkeley Group has reaffirmed its profit guidance for the coming years despite a slowdown in sales. In a trading update for the period from 1 November to 29 February, the company reiterated guidance from last December that it will post pretax profit of at least £15bn across the three years ending 30 April 2026. Consensus for this financial year is £550m. Sales for this year are secured, the company said, along with 70% of sales secured for the next financial year. Over the trading statement period, it added, sales rates were a third lower than a year earlier. “Enquiry levels are good, with customers looking for the prevailing political and economic uncertainty to recede and interest rates to begin to fall,” the company said. Cash due on private forward sales, which stood at £1.96bn for the half year at 31 October, “has continued to moderate”, while pricing has been stable. Berkeley extended £800m of bank borrowing by a year to February 2029. The company expects net cash at the year-end to be above the half-year position of £422m.