Housebuilder Berkeley Group announced a rise in pre tax profits

house building essex colchester

Last Friday 8th December 2017 The Berkeley Group Holdings plc announced its unaudited interim results for the six months ended 31 October 2017.  The company posted a 36% rise in their pre-tax profits to £533.3m in the six months to 31 October,  also revenue grew 14% to £1.6bn.

The housebuilder upgraded its long-term forecast off the back of strong demand in the South East, however the firm warns of political uncertainty hanging over the property market.

Berkeley highlighted that 2,117 homes delivered – includes more than 10% of London’s new private and affordable homes.

In the outlook section of the announcement Rob Perrins Chief Executive mentioned the following:

Berkeley’s unique operating model, which reflects the cyclical nature of the housing market and always prioritises quality and financial strength, means that we are well positioned at this time of macro uncertainty. While trading has been sufficiently robust to support an increase in our earnings guidance, we are appropriately cautious in our investment strategy at present.  We remain prepared to take on operational risk for the right opportunities, but this will be balanced by reduced overall financial risk while the uncertainty prevails and until we have sufficient visibility to invest more decisively.

This means that Berkeley anticipates being broadly working capital neutral as this reduced level of new investment is supplemented by the costs associated with bringing forward the 12,895 conditional plots in the land bank and residual payments on existing owned land holdings.

The fundamentals of the market in London and the South East remain strong and Berkeley remains committed to continuing its prominent position in delivering new homes of all tenures to Londoners. The focus at present is working hard with our partners and stakeholders to ensure we have the right planning consents to deliver the best outcome to address London’s housing challenge, reflecting the risks in today’s market.

Read the announcement 8th December 2017 unaudited interim results in full click here.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Rightmove logo
Breaking News

Ten years on: More first-time buyers moving to cities while the coast stands still

New ten-year analysis of the property market shows that more first-time buyers are looking to move to cities, while the coast has seen no growth in new buyers First-time buyer demand to move to Great Britain’s 50 largest cities (excluding London) is up by 16% on average over the last ten years, with Dundee topping…
Read More
Breaking News

Homeowners in England and Wales overvalue their properties by an average of 16%

Homeowners in England and Wales are overestimating the value of their property by an average of 16%, according to new figures. Data from Quick Move Now compares homeowner estimates with formal estate agent valuations and is broken down by both region and property type. Overall, homeowners overvalue in every single category.   Regional breakdown Region…
Read More
Visual blemishes on Roads due to service upgrades
Estate Agent Talk

Emergency Sidewalk Repairs: When to Act and Who to Call

Sidewalks are the unsung heroes of city infrastructure—quietly assisting tens of millions of footsteps every day. But when they crack, disintegrate, or shift all of sudden, they might quickly turn out to be volatile liabilities. In a town like New York, in which pedestrian site visitors are constant and belongings proprietors are legally chargeable for…
Read More
Breaking News

Reapit report reveals agents’ long-term market confidence amid legislative challenges

Despite the significant challenges posed by a shifting economic landscape and the largest wave of housing legislation in decades, estate and letting agents remain steadfast in their confidence about their long-term future in the industry. According to the first Reapit Property Outlook Report 2025, covering the full breadth of sales and lettings agency opinion countrywide,…
Read More
Breaking News

Owner-Occupiers Drive Resilient Commercial Property Market

Buying Becomes 37% Cheaper Than Renting The latest Commercial Property Demand Index from specialist property finance expert, Rangewell, reveals that while investor appetite across the sector held steady in Q2, strong levels of owner-occupied commercial mortgage activity are helping drive market performance, as business owners increasingly move from renting to buying their long-term premises for…
Read More
Breaking News

One year of Labour: Property market performance review

Investors left waiting for planning reform and incentives but majority plan to increase real estate allocation   Biggest failures: Lack of incentives for developers and investors, and ineffective planning reform Top priorities: Planning reform, tax incentives, and attracting international capital Where opportunities lie: Data centres, warehousing & logistics, and later-life housing Real estate debt is…
Read More