Berkeley one third down
Published: 26 June, 2009
LONDON: House builder Berkeley today reported annual profits down by more than a third. Berkeley said that although it has seen a recent improvement in transaction levels and steadying sales prices, the outlook for the industry remains uncertain.
A company spokesperson said: "The key to recovery is the feel-good factor which is currently being battered by rising unemployment and increased taxation, offset by the shortage in supply of new homes and low interest rates."
The company's profits fell 38% to £120.4m for the year to 30 April, down from £194.3m the previous year.
Berkley sold 1500 homes at an average price of £395 000. The company has not written down the value of its land holdings and is debt-free with £284m cash on its books so well placed to take advantage of opportunities in the land market, the spokesman said.