Homebuilder Berkeley forecasts higher profit for fiscal 2023 on persistent demand

A builder assembles scaffolding as he works on new homes, in south London June 3, 2014. REUTERS/Andrew Winning/Files

June 22 (Reuters) – British homebuilder Berkeley Group Holdings Plc (BKGH.L) forecast a 9% rise in annual profit for the 2023 fiscal on Wednesday, helped by persistent demand in an undersupplied UK housing market despite signs of a slowdown in the sector.

UK house prices have remained firm although the pace of growth has slowed in recent months and some industry analysts expect the market to cool, as the surging cost of essentials from fuel to home appliances puts pressure on household finances.

The FTSE 100 (.FTSE) firm said it expects pre-tax earnings of about 600 million pounds ($733.92 million) for the year ending April 30, 2023 and 625 million pounds for the two years thereafter.

Cobham-headquartered Berkeley said it was “very mindful of the ongoing volatility in the operating environment” from a series of significant global and domestic events, including Brexit, COVID-19 and the Ukraine conflict.

Surveys on Britain’s housing market have showed signs of a slowdown in recent months as fast-rising inflation and higher rates tightened the financial squeeze for many households. read more

Berkeley, which operates mainly in London, Birmingham and the South of England, said pre-tax profit for the year ended April 30 rose 6.4% to 551.5 million pounds.

($1 = 0.8175 pounds)

Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Shailesh Kuber

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