Tuesday 16 January 2018

Berkeley beats Brexit blues with full year results exceeding expectations

Residential property reservations have declined in London
Residential property reservations have declined in London
Louise Kelly

Louise Kelly

Pre-tax profits at the Berkeley Group was reported at £812m, well ahead of the company estimate of £766m.

London's largest publicly traded homebuilder released its results on Wednesday morning for the 12 months to April 2017.

In the full year, the company completed 3,905 homes with an average selling price of homes was £675,000 - 32pc above last year’s level.

In spite of the uncertainty around Brexit, the company reiterated both its three-year pre-tax profit guidance (£2bn in the three years to April 2018) and five-year pre-tax profit guidance (£3bn in the five years to April 2021).

According to the firm, net cash of £286m is slightly ahead of forecasts.

Overall, Berkeley has seen the London market stabilise in the second half of the financial year.

In March, Berkeley said the Brexit vote caused reservations to decline; and for the full year, the value of reservations was 25pc lower than last year

However, the firm maintained that the trend later in the year has seen reservations return to previous levels.

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