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(Alliance News) - Berkeley Group Holdings PLC on Friday highlighted good enquiry levels and a strong forward sales position as it backed profit guidance for the next three years.
Shares in Berkeley Group opened 0.2% lower at 4,668.00 pence each on Friday morning.
In a trading update, covering the period from November 1 to February 29, the Cobham, England-based housebuilder said it was on track to deliver at least GBP1.5 billion of pre-tax profit across the three years ending April 30, 2026, including pre-tax profit for the current financial year in line with consensus of GBP550 million.
Berkeley said all sales for the current financial year ending April 30 are secured, with more than 70% of sales secured for the next financial year, which it described as a "strong position".
Sales rates during the period have been consistent with the first half of the financial year, remaining around a third lower than the comparative year, the company said.
But Berkeley noted enquiry levels are good, with customers looking for the "prevailing political and economic uncertainty to recede and interest rates to begin to fall."
Pricing has been stable across our sites during the period and above business plan levels, while build cost inflation is negligible across most trades, Berkeley said.
Cash due on private forward sales, which was GBP1.96 billion at the half year has continued to moderate over the second half through a combination of strong delivery and the prevailing sales rates.
Net cash at the year end is forecast to be above the half year position of GBP422 million.
Berkeley said it remains on track to GBP227 million in shareholder returns by the end of September, via dividends or share buy-backs.
By Jeremy Cutler, Alliance News reporter
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