Profit fall at property firm
PROPERTY developer and regeneration firm Berkeley said annual profits fell 38% after the company faced the toughest conditions in recent memory.
The profits haul of £120.4m for the year to April 30 came after it sold 1,500 homes at an average price of £395,000.Unlike rival operators, Berkeley said it had not been forced to write down the value of its land holdings and that it was debt free with net cash of £284m on its books at the end of the year.
It said the outlook remained uncertain but added the last quarter of the year saw an improvement in transaction levels and steadying in sale prices.
Berkeley said: ``The key to recovery is the feel-good factor which is currently being battered by rising unemployment and increased taxation, offset by the shortage of supply of new homes and low interest rates."
The company signalled It added: ``This is an exciting time for Berkeley. We have in place a clear long term strategy which will enable Berkeley to take advantage of the current market conditions to acquire new land at the right time in the cycle."
Outside London, Berkeley’s developments include Portsmouth’s £200m regeneration project at Gunwharf Quays and Kennet Island in Reading.
Unlike rival operators, Berkeley said it had not been forced to write down the value of its land holdings and that it was debt free with net cash of £284m on its books at the end of the year.
It said the outlook remained uncertain but added the last quarter of the year saw an improvement in transaction levels and steadying in sale prices.
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