Berkeley Group on course to meet full-year targets

Berkeley Group is on track to meet full-year profit guidance, the house builder said on Tuesday, despite a "volatile" operating environment.

Updating on trading ahead of its annual general meeting, Berkeley said it had continued to trade "well" during the first four months of the current financial year.

"The good level of demand continues to support pricing above business plan levels, which is sufficient to cover cost increases on a blended basis across Berkeley’s developments," it noted.

As a result, the firm said it was on track to meet pre-tax profit guidance of £600m for the current year, and £625m in the year to 30 April 2024.

Forward sales - representing cash due under exchanged private sales - are expected to be marginally above the £2.17bn held at 30 April 2022, while net cash is forecast to be around £269m, similar to the level held at the end of the last financial year.

However, the blue chip acknowledged that the operating environment remained "volatile", with overall cost inflation continuing at between 5% and 10% across its portfolio. Berkeley said that in response, new land would only be added to holdings "very selectively".