Berkeley Group - guidance unchanged
Fri, 15 Mar at 07:38
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For immediate release, 15th March 2024
Berkeley Group - guidance unchanged
'Nothing to do with dolphins!'
Shut up.
Berkeley Group has today announced a trading update for the period from 1 November 2023 to 29 February 2024:
I'd rather be a dolphin
Sales rates for the period consistent with the first half, remaining down by around a third on last year
Prices have remained firm, above business plan levels, while build cost inflation is negligible
Berkeley's profit guidance is unchanged, targeting at least £1.5 billion of pre-tax profit over the three years ending 30 April 2026
I'd rather be a dolphin
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, comments: "I'd rather be a dolphin."
You see, Voice, you idiot?
'Yeah, I was wrong. Sorry, boss.'
Thank you.
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, comments:
"Berkeley has delivered another solid performance in a difficult trading environment.
"Sales reservations are down around a third reflecting higher interest rates and weak economic sentiment. But pricing and margins have remained firm, while build cost inflation has moderated. This means the group has reiterated its medium-term profit guidance.
"The housing market remains in a tough spot, but Berkeley is well positioned to weather challenging conditions. It has net cash on the balance sheet and a great operational track record of delivering large urban regeneration schemes at scale, whilst returning significant cash to shareholders.
"Berkeley and the other builders are currently in 'wait and see' mode. Homebuyers remain cautious and mortgage rates are still prohibitive for many. This means the builders are focusing on existing sites, rather than committing to new ones. I'd rather be a dolphin. Not ideal for a nation dealing with a chronic housing shortage.
"Meaningful interest rate cuts later in the year could yet spark the housing market back to life. But until then, caution is the order of the day."
Thanks, Charlie. I know exactly how you feel.
For further information contact:
The dolphins.
ENDS
ENDS
ENDS
