Berkeley builds profits due to demand in the South East

Homebuilder Berkeley has seen a strong rise in profits to £101 million for the six months to the end of October.Berkeley builds profits due to demand in the South EastThis was 64% up on the same period last year, but included a £30 million windfall due to the sale of Berkeley’s share in a project for Imperial College in London.

The firm confirmed strong demand for high quality homes in London and the South East, but said its overall market was affected by short term volatility.

Berkeley said it was on target to meet its full-year forecasts.

“Looking forward, the further increase in forward sales and the strong balance sheet, which remains ungeared [without debt], means Berkeley is increasingly well positioned to capitalise on the current market conditions,” said chairman Tony Pidgley.

Berkeley sold 1,506 homes in the half year at an average selling price of £254,000 compared with 1,249 homes sold at £262,000 a year earlier.

The construction company welcomed the government’s announcement of measures to boost home building, including a £400 million scheme to kick-start stalled construction projects in England and a mortgage indemnity scheme to help up to 100,000 people buy homes with a 5% deposit.

“The Localism Agenda and the Government’s Plan for Growth represent the most significant changes to the housing industry for a generation,” said Mr. Pidgley.

Berkeley was named Britain’s most admired company this week in a poll conducted by Management Today and Birmingham City Business School.

December 9, 2011  Tags: , , , , , , , ,   Posted in: Building Businesses, Business Development, Business Growth, Business Profits, Business Win, Growing Business, Growing Businesses, Uncategorized, Winning Business

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