Yahoo Finance FTSE 100 housebuilder Berkeley on track to deliver profits
Berkeley (BKG.L) expects forward sales to be above £1.7bn ($2.22bn) at the end of this fiscal year as the UK housebuilder said it was on track to deliver profits.
The Cobham-headquartered company said it is performing robustly despite a volatile business environment and it remained on track to meet its earnings outlook for the year ending 30 April.
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"Berkeley has continued to trade robustly since its half year, with the value of underlying sales reservations remaining slightly ahead of pre-pandemic levels," the FTSE 100 company said in a statement.
Berkeley stated that the value of underlying sales reservations remains "slightly" ahead of pre-pandemic levels.
Forward sales, representing cash due under exchanged private sales, are expected to be above £1.7bn at year end, whilst net cash is forecast to be around £900m, subject to the timing of certain land payments.
Cancellations are also at normal rates and sales pricing is "sufficiently" ahead of its business plan to absorb construction cost increases, it continued.
The housebuilder said it was feeling continuing inflationary pressure and supply chain constraints, planning complexities and delays, the uncertainty associated with the combined efforts of the industry and government to address concerns around the safety of people living in tall buildings and the developing implications of the situation in Ukraine.
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In January, the government ordered housebuilders to pay around £5bn to help remove dangerous cladding from buildings following the deadly Grenfell fire in 2017.
Berkeley also expects to deliver pre-tax profit growth of around 5% per year for the next three financial years.
In 2021, the company reported a pre-tax profit of £518.1m.
