Berkeley shares drop after it warns on future profits

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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.

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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%.

 

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