Berkeley results lift shares

Shares in FTSE 100 housebuilder Berkeley Group (LON:BKG) climbed 4.17% to 4,398p (as of 12:50 BST) after the firm provided results for the year ended 30th April. Pre-tax profits dropped by 35% relative to the previous year as they reverted to normal levels after the group finished delivering certain London projects acquired between 2009 and 2013.

Chairman Tony Pidgley commented: “These results reflect a strong performance for the year, driven by the fantastic progress of our long-term brownfield regeneration sites, many of which are now maturing into welcoming and popular communities.

“The onset of the Covid-19 lock-down in the last five weeks of the period had a significant impact on our operating environment, but Berkeley ended the year in a strong financial and operational position as our resilient business model and agile working culture defined our response. Berkeley’s strategy is designed for a high risk cyclical housing market, so when conditions shift for any reason we have high liquidity, long-term cash flow visibility and highly skilled teams with the grip to effect decisive operational change. This means we are well placed to manage the current period of uncertainty without call on the Government’s furlough scheme or its Covid Corporate Financing Facility.

“Our agility mitigated the early impacts of Covid-19 and ensured the safety and wellbeing of our people, customers, suppliers and local communities, which is always our first priority. The speed and precision of the implementation of the necessary far-reaching changes to our working practices showed our highly skilled people and suppliers at their very best“.