Berkeley profit strategy on course

Berkeley says it remains on course to deliver at least £1.5 billion of pre-tax profit across the three years ending April 30 2026, a strategy set out with its interim results in December.

In a trading update issued today for the period from November 1 2023 to February 29 2024, the firm said pre-tax profit for the current financial year ending April 30 2024 will be in line with the consensus of £550 million.

All sales for the current year are secured and the firm also has more than 70% of sales secured for the next financial year, which it describes “as a strong position”.

Sales rates during the period remain 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,” Berkeley says in the statement.

Cash due on private forward sales, which was £1.96 billion at the half year (October 31 2023), has “continued to moderate over the second half through a combination of strong delivery and the prevailing sales rates.” Pricing has been stable across its sites during the period and above business plan levels, …