Berkeley defies cooling market with £62m profit

Aaron Morby 13 years ago
Share

London and South East house builder Berkeley Group has shrugged off the cooling housing market to deliver an 18.5% rise in pre-tax profits to £61.6m in the first half of the year.

Chairman, Tony Pidgley said: “This strong set of results represents an excellent performance from Berkeley at a time when the economy is looking to find traction for what is proving an elusive sustained recovery.”

The improvement was driven principally by an increase in revenue of 15.9% from £290.1m to £336.2m and leaves Berkeley boasting industry beating margins of 17.4%.

Managing Director, Rob Perrins, said: ‘Today’s results, which show an increase in both earnings and sales reservations approaching 20%, demonstrate the underlying resilience of the housing market in London and the South East over the last six months.

He said that since the start of the year Berkeley has acquired 13 new sites with 2,500 plots, including prime London sites in Westminster and on Hammersmith Embankment.

“Overall, this strong performance provides the board with confidence that Berkeley can outperform management’s original expectations for the current year and is well placed for the following year.”

Looking forward, Berkeley warned that the Government needed to tackle mortgage, building regulation and planning issues if the under-supply of new homes in London and the South East is to be addressed.

Perrins said: “Irresponsible lending must be prevented but there should be sufficient flexibility to allow hard-working people to acquire their own home, while providing a support mechanism for those who do fall into difficulty.

He also warned that changes to the building regulations in the pursuit of zero-carbon must not lose sight of the goal of providing well designed, comfortable and affordable homes.

“Achieving planning consents in the current market which are commercially viable is an industry wide challenge,” warned Perrins.

“While fully supporting local decision making, the lack of a common framework is creating uncertainty and delay which adds to the risk and cost of development and this unfortunately means that a number of new schemes cannot be brought forward.”

Latest news

BAM Co-op Live Arena opening delayed yet again

Another gig cancelled last night amid last minute safety concerns
1 hour ago

National Grid unveils winners for £9bn network upgrade

New 'enterprise model' to deliver infrastructure schemes quicker and cheaper
20 hours ago

Turkish insulation panel maker to build £45m UK factory

Assan Panel to open first UK plant at Freeport East
2 hours ago

Expanding consultant Stantec swoops for Hydrock

Stantec UK business expands by a third as 950 staff join from Bristol-based engineer
18 hours ago

Contractors wanted for £800m highways deal

Bids invited for Eastern Highways Alliance Framework 4
2 hours ago

Galliford Try names group head of infrastructure

David Lowery promoted to Divisional Managing Director – Infrastructure.
3 hours ago

Chigwell Group looks at stock market listing

Essex contractor registers as Public Limited Company
1 day ago

A57 Mottram Bypass clears final legal challenge

Balfour Beatty to get go-ahead to start shortly
1 day ago

100 jobs axed as Geoffrey Osborne confirms administration

Chairman Andrew Osborne calls it a 'sad day' as board loses fight for survival
2 days ago

Midgard set for Notting Hill office tower overhaul

Landmark project edges towards final approval after 10-year planning saga
1 day ago

Cumbrian civils firm clinches £40m Sellafield contract

Civils specialist Stobbarts will support McAlpine on groundworks and concrete
1 day ago

Designers named for London 2000-bed student rooms job

Bouygues will build £400m London School of Economics student scheme next to Tate Modern
1 day ago

£117m-turnover contractor files administration notice

ARJ Construction lodges court notice
2 days ago

£1bn London Blackfriars tower blocks approved

Trio of buildings rising to 45, 40 and 22 storeys approved by Southwark Council
2 days ago

Council decides to end Balfour deal after 13 years

Contractor has been maintaining roads across Herefordshire since 2013
2 days ago

Six civils clients to switch to low carbon concrete and steel

National Highways, Northumbrian Water and Sellafield sign fresh decarbonising pledge
3 days ago

Fortem extends homes repair deal across Birmingham

Willmott Dixon owned firm adds another two years to deal worth £170m
2 days ago

Kier wins £118m civil service Darlington hub

Work is expected to start towards the end of this year
3 days ago

Green light for 34-storey Digbeth apartments tower

480 flats will be delivered for Clarion housing association
2 days ago

LHC starts race for major retrofit and decarb framework

Hunt starts for firms to help with 6.1m social homes upgrade target
3 days ago

Windows giant Everest crashes into administration

Around 350 jobs at risk while hunt starts for a buyer to salvage business
3 days ago

Green light for £500m Newcastle health complex

Mixed use scheme will promote healthy living across all stages of life
3 days ago

Olympian Homes gets go-ahead for Bristol’s tallest building

Work on student and co-living towers to start this summer
3 days ago

ISG gets nod to start £20m Glamorgan school job

Ysgol y Deri specialist needs school is to built at Cosmeston, near Penarth
3 days ago

Walker Modular lands £5m bathroom pod contract

Specialist to work with Graham and Watkin Jones on major build-to-rent scheme

Banned building boss jailed for fraud

Court hears how disqualified director siphoned off cash from new housing company
3 days ago

Osborne staff start looking for new jobs

"Open to Work" flags appear on LinkedIn profiles
6 days ago

Plan rejected for 42-storey tower above historic building

Councillor describes as ludicrous plan to build 300 flats above Georgian mansion
6 days ago

Ventilation deal could hike product prices for contractors

Watchdogs at CMA launch probe after duct firm acquires rival
6 days ago

Tide gets go-ahead for London 412 student flats scheme

Volumetric developer secures planning for West Ealing project
6 days ago

Contractor services