Berkeley sees FY profits at top end of expectations despite Brexit worries
BERKELEY GRP
n/a
00:00 15/08/22
Property group Berkeley said full year pre-tax profits were expected to be at the top end of analysts' expectations but added that Brexit uncertainties had hit underlying reservations.
Berkeley Group Holdings (The)
4,556.00p
16:30 19/04/24
Cboe Brexit High 50
9,492.45
17:05 19/04/24
Cboe UK 250
16,792.60
17:05 19/04/24
Cboe UK 250 NTR
24,339.84
17:05 19/04/24
Cboe UK 350
13,880.95
17:05 19/04/24
Cboe UK 350 NTR
22,368.30
17:05 19/04/24
Cboe UK All Companies
13,767.27
17:05 19/04/24
Cboe UK All Companies NTR
22,827.20
17:05 19/04/24
Cboe UK Finance Sector
11,122.97
17:05 19/04/24
Cboe UK Finance Sector NTR
19,070.96
17:05 19/04/24
Berkeley said the 2017 results would depend on completion timing of its larger developments, it added that a “similar level of profitability” is anticipated for the 2018 financial year.
However, Berkeley said underlying reservations in the seven months since the Brexit referendum effect (August to February) were down 16% on the comparable period last year, with the last two months ahead of last year.
"Enquiry levels remain robust, cancellation rates are at normal levels and pricing continues to be resilient and above business plan levels," Berkeley said in a trading statement.
"The reduction in reservations is across all price points and reflects the ongoing impact of both Brexit uncertainty and the changes in recent years to stamp duty land tax and mortgage interest deductibility. This has been partly offset by the continued availability of mortgage finance at low interest rates, favourable currency exchange rates and the quality of Berkeley's well-presented and well-located homes."
When coupled with the planning environment and increased demands from the combination of affordable housing, community infrastructure levies...has resulted in new starts in London falling by some 30%."
"Berkeley is concerned by this under-supply and the knock-on effect it has on the provision of housing of all tenures which, if not addressed, represents a threat to London remaining the inclusive and open global city which is so important to London and the UK's growth and prosperity."