Berkeley shares drop after it warns on future profits

Property developer The Berkeley Group (LON:BKG) earned pre-tax profits of £934.9 million during the year ended 30th April, a 15.1% improvement over the prior year, and the company has upgraded its profit guidance for the current financial year by £75 million. However, the company warned that it expected profits to drop by around 30% following 2018/2019 after it exhausts the sites in its London land bank that were acquired between 2010-2013.

Get the latest from Master Investor directly in your inbox – Sign-up HERE for FREE

Chief Executive Rob Perrins said that the company was set up for the long term and that, while short term concerns may be weighing on sentiment, they are in a good position to look through the current volatility in London property markets with measured confidence. Shares in Berkeley Group were 3,935p at 13:50 BST, down by 4.88%.