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The price of shares in Berkeley (LON:BKG) rose by 1.93% to 3,385p (as of 14:30 BST) after it announced pre-tax profits of £401.2 million for the six months ended 31st October. While this is lower than profits for the same period of last year, management increased profit guidance for the full year by more than 5%.
CEO Rob Perrins commented: “Berkeley has had a good start to the year and this is reflected in our guidance which is increased for the full year, and reaffirmed for the next two years, based upon current market conditions. This is in the context of a short term outlook that is clearly uncertain due to the ongoing Brexit process and a number of headwinds in the operating environment in London and the South East. This uncertainty affects sentiment and confidence which has a consequential adverse impact on investment levels and transaction volumes with a number of developers withdrawing from these markets.
“However, we are confident that London will remain a vibrant, tolerant and diverse global city, attractive both domestically and internationally where the cumulative demand for new homes is only increasing.“