LONDON: Berkeley Group Holdings yesterday reported a 13.3 percent decline in first half earnings before profit at £86 million.
The company which ranks number five among Britain’s biggest homebuilders, said the housing market remained stable promising full year earnings before tax to be in line with expectations at around £165 million.
The average sale price for a house rose, as expected, 0.7 percent to £292,000 during the first half ending October 31. Berkeley expects it to remain stable at this level for the next six years.
“The group is well paced for 2006 and beyond” said Chairman Roger Lewis and the current market conditions – stable sale prices, firmer costs of construction and competitive land market are conducive for business. The homebuilder is confident of a “more balanced supply and demand situation in the second half” Lewis said.
The company is gradually moving out of the traditional housebuilding business to focus on less capital-intensive urban regeneration.
As announced last year the company plans to return up £1.4 billion (£12 per share) to investors over the next six years. Its Crosby Homes deal with Australia’s Lend Lease Corp. had yielded a gain of £80 million.
Posted
on : Sat, 10 Dec 2005 20:10 GMT | Business News
By : Rob Davis
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