UK Stocks

Berkeley Group on track to meet earnings guidance

The property developer said the Group remains on track to meet its earnings guidance for the year ending 30 April 2022.

House-builder The Berkeley Group plc (LON: BKG) said on Friday that it was on track to reach full-year earnings forecast after trading “robustly” since November 1.

Forward sales, which represent revenue due under exchanged private sales, were projected to be over £1.70 billion at year-end, flat year on year, while net cash was likely to be approximately £900.0 million, up from £846.0 million, depending on the timing of certain land payments.

The FTSE 100 company reported that the value of underlying sales reservations remained somewhat higher than pre-pandemic levels, but cancellations were routine and sales price was “sufficiently ahead” of its business plan to absorb construction cost increases.

“Berkeley continues to focus on the investment programme in place to bring its portfolio of long-term brownfield sites into production, underpinning future delivery and earnings, and sustaining some 28,000 UK jobs directly and indirectly throughout its supply chain,” said the Cobham, Surrey-based property developer.

“The operating environment remains volatile with a number of challenges facing all businesses. For Berkeley, this is most immediately evident through continuing inflationary pressure and supply chain constraints, planning complexity and delays, the uncertainty associated with the combined efforts of the industry and Government to address concerns around the safety of people living in tall buildings and the developing implications of the tragic situation in Ukraine.”

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Not Investment Advice Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.

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