Berkeley expresses confidence in the long term market
Issuing a short trading update this month the Berkeley Group expressed confidence in the “long term resilience” of its markets while being “very mindful” of the potential for short term disruption. It reiterated the company’s updated pre-tax profit guidance issued with its interim results in December.
The update covering the period from November 1 to February 28 said that its trading environment had remained the same as the previous two years.
“This stability allows Berkeley to reiterate the updated pre-tax profit guidance it provided with its interim results in December 2018 for this, and the next two years, which represented an increase of around 8% in the guidance for the current year,” the firm’s statement read.
Berkeley added that it had continued to invest in its brand and place making, working alongside public and private sector partners “to successfully bring forward the next generation of its complex, long-term development sites that will deliver lasting social, economic and commercial value to local communities and the wider economy, while delivering quality new homes across all tenures on its numerous sites in production in London and the south of England”.
The housebuilder said its success in the current uncertain operating climate was a reflection of its “unique operating model, financial strength and resources”.
It added that it was exploring a “number of opportunities” and currently expected net cash as of April 30 2019 to be around the level reported at its half year of £859.7 million, “subject to investment levels and timing in the intervening period”.
“While very mindful of the potential for short term market dislocations from the current political backdrop, we remain steadfast in our belief in the long term resilience and attraction of our markets of London, Birmingham and the south east,” it said.