Homebuilder Berkeley predicts higher profits for fiscal 2023 on continued demand

A builder assembles scaffolding as he works on new homes, in south London June 3, 2014. REUTERS/Andrew Winning/Files

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June 22 (Reuters) – British homebuilder Berkeley Group Holdings Plc (BKGH.L) forecast a 9% rise in annual profit for the financial year 2023 on Wednesday, helped by continued demand in an undersupplied British property market despite signs of a slowdown in the sector.

UK property prices have remained firm although the pace of growth has slowed in recent months and some industry analysts expect the market to cool as soaring costs of essential goods, fuel to household appliances, puts pressure on household finances.

The FTSE 100 (.FTSE) company said it expects pre-tax profit of around 600 million pounds ($733.92 million) for the year ending April 30, 2023 and 625 million books for the next two years.

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Cobham-headquartered Berkeley said it was “very aware of the current volatility in the operating environment” following a series of significant global and national events including Brexit, COVID- 19 and the Ukrainian conflict.

Surveys of the UK property market have shown signs of slowing in recent months as rapidly rising inflation and rising rates have tightened financial pressure for many households. Read more

Berkeley, which operates mainly in London, Birmingham and the south of England, said pre-tax profit for the year ended April 30 rose 6.4% to 551.5 million pounds.

($1 = 0.8175 pounds)

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Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.

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