Results round-up
FTSE 100-listed house builder Berkeley Group said it expected current year results to be at the top end of expectations, after absorbing approximately £25m of accelerated operating expenses.
Berkeley added it remains on course to deliver £2bn of pre-tax profit in aggregate over the three years culminating in 2017/18.
"Reservations are approximately 4% lower than in 2014/15 due to a change in mix of product and the strength of the forward sales secured in recent years," Berkeley said.
"In spite of global macro uncertainty, including the impending UK European Referendum, underlying demand has remained strong. Transaction levels at the upper end of the housing market have been affected by the significant increase in transaction taxes over the last 18 months which will have consequential effects on both social mobility and the supply of new homes."
"Since the half year, we have sold 62 properties at prices over £2m - a similar number to the same period in 2014/15, when the market slowed in the run-up to the General Election."
Berkeley said it had remained selective in the land market, acquiring four sites in the period, including two conditionally contracted long-term regeneration schemes at the Oval Gasworks adjacent to the Oval cricket ground in Lambeth and an 11.2 acre site in Hornsey, North London.
In addition, two sites have been contracted outside of London; a 23 acre site in Ascot which has been acquired unconditionally and a 12 acre site in Cookham contracted on a subject-to-planning basis.
Berkeley has also made good progress in the period in enhancing its land holdings through three new and nine revised planning consents. The new consents are in Sevenoaks, Winchester and Kingston.
Dual-listed bank and asset manager Investec said on Friday that its results have been hit by the slump in the South African rand and equity market volatility, but operating profit will be a touch ahead of the previous year.
In a pre-close trading statement, Investec said results at its asset management arm will be behind last year.
On a brighter note, it expects results at the UK specialist banking business to be substantially ahead of the previous year, while results from the South African Specialist Banking business are expected to be comfortably ahead.
Investec’s wealth and investment arm is expected to report results slightly ahead of the previous year.
Overall, the group said its operating profit is likely to be marginally ahead.
Revenue is seen slightly lower than prior years in sterling but ahead in neutral currency, while recurring income as a percentage of total operating income is expected to be around 71% versus 74% in 2015.
Impairments are expected to be around 20% lower than the prior year while expenses will likely be lower, but higher in neutral currency.
For the period from the end of March 2015 to the end of February 2016, third party assets under management fell 6% to £116.2bn, while customer accounts deposits increased 2% to £23bn and core loans and advances rose 4% to £17.9bn.