Berkeley Group shares dipped slightly on Friday after the housebuilding firm said trading had been stable in the first four months of the year.
Berkeley shares were down 0.4% at the time of writing, although the drop was more a result of a drop in the wider market than major disappointment with Berkeley’s update.
After Barratts released a dismal update earlier in the week, a reaffirmation of full-year £525 million pre-tax profit guidance by Berkeley will be music to the ears of investors.
“There wasn’t any news to shake foundations as Berkeley released a short trading update ahead of its Annual General Meeting later today. Business has been stable over the first four months of the year,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“And given that 90% of the planned sales this year are already locked in, management reiterated its full-year pre-tax profit guidance of £525mn, which would mark a decline of around 5% on the prior year. Performance is expected to be weighted to the first half, which should help fund the £229mn of shareholder returns the group has planned in the period.”
Like many in the construction industry, Berkeley said they welcomed the proposed changes to the planning system and Labour’s plans to build 1.5 million homes.