Shares in high-end housebuilder Berkeley Group (LON:BKG) fell 3 percent on Wednesday morning, after warning on a continued subdued market.
The group raised their profit guidance for the year, after annual pre-tax profits rose 15.1 percent to £934.9 million in the 12 months to the end of April. However, weak demand meant that the company sold less properties throughout the period, sending revenue down 0.7 percent.
The average selling price of properties increased by 5.9 percent, but the group still halved their total dividend to 146.7 pence per share from 254.6 pence per share
“While the underlying demand for new homes remains strong, the housing market in London and the South East has remained subdued over the last year, in spite of the well documented endemic under-supply,” said Rob Perrins, chief executive.
However, a brighter spot came for investors with the news that Berkeley would be raising its pre-tax profit guidance for the two years ending 30 April 2019 to at least £1.575 billion.
Shares in Berkeley are currently trading down 3.12 percent at 4,008.00 (0817GMT).