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Berkeley moves ahead on profit target

5 Sep 11 Conditions in the housing market have improved enough in London and the southeast that Berkeley now expects to achieve its five-year profit target two years early.

Tony Pidgley
Tony Pidgley

In May 2010 Berkeley set out a five-year plan, which included doubling pre-tax profit by 2015.This now looks like being achieved by 2013, or even earlier.

Chairman Tony Pidgley will tell the house-building company’s annual general meeting today: “Since the original plan was announced in May 2010, trading has been ahead of management expectations and Berkeley has achieved a significant number of planning consents and invested in work in progress in line with its strategy.  Together with the performance in the period since 1st May 2011, the board believes that it is now positioned to achieve the profit target set in the five-year plan at least two years earlier than originally anticipated, to the extent that market conditions prevail.  Market conditions in the four months ended 31 August 2011 have enabled further growth in forward sales which are currently in excess of £850m.”   

He adds: “Berkeley's emphasis on place making and putting the customer at the heart of every decision, coupled with a focus on London and the southeast, has enabled it to outperform despite the well-publicised wider market challenges we are experiencing.  Our ability to produce homes and places where people want to live gives us confidence that we can achieve our return to shareholders over the long term.”

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