6th Dec 2019 08:47
(Alliance News) - House builder Berkeley Group Holdings PLC on Friday reported a 31% fall in half-year profit but said the profit drop was expected and simply represented profitability returning to normal levels.
Berkeley shares were up 0.5% at 4,573.00 pence each in morning trade in London.
For the six months to September 30, FTSE 100-listed company posted pretax profit of GBP276.7 million, down from GBP401.2 million in the year-ago period. Revenue fell 44% year-on-year to GBP930.9 million from GBP1.65 billion.
The earnings decline was mainly attributed to the completion of a number of major central London projects.
The company sold 1,389 homes in the first half, down from 2,027 a year ago. Average selling prices also declined to GBP644,000 from GBP740,000 due to the different mix of properties sold in the two periods.
Berkeley said it was a "good" start to its current financial year, and the company remains on track to deliver GBP3.3 billion of pretax profit in the six years to 2025, and to return GBP280 million per year of that to shareholders in the same period.
Chief Executive Rob Perrins said: "We remain alert to market risks with a general election next week and the delay to the UK's proposed exit from the European Union prolonging the uncertain operating environment of the last three years. With our uniquely well positioned land holdings, forward sales of GBP1.9 billion and GBP1.06 billion of net cash, we are well placed to continue making a positive contribution to the economic, social and environmental well-being of London and the South East."
By Tapan Panchal; [email protected]
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