Berkeley shrugs off housing market woes and remains on track for three-year growth plan
British property developer Berkeley Group is on track to deliver £1.5bn of pre-tax profits over the next three years, according to an update by the firm this morning.
The business, which is based in Cobham, England, said it is in a “strong position” and has more than 70 per cent of sales secured for the next financial year.
Following a tumultuous period for the housing industry, Berkeley said enquiry levels are improving as economic uncertainty eases.
The board said: “Sales rates during the period have been consistent with the first half of Berkeley’s financial year, remaining around a third lower than the comparative year.
“Enquiry levels are good, with customers looking for the prevailing political and economic uncertainty to recede and interest rates to begin to fall.”
During the period, the term of Berkeley’s £800m bank facilities was extended by a year to February 2029. Net cash at the year-end is forecast to be above the half-year position of £422m.
An interim dividend of 33.00 pence per share (£35m) was declared on 29 February 2024.
When combined with the £21m of share buy-backs undertaken towards the £283m annual shareholder return, there is currently £227m due for return by the end of September 2024.