Berkeley continues to have an upbeat view despite a 35% drop in bookings. On Friday, Berkeley Group Holdings (BKGH.L), a British high-end homebuilder, said it is maintaining its profit projection but is joining other companies in the industry in stressing a bleak trade climate. This is due to the increased borrowing rates and larger macroeconomic worries.
In recent months, the housing market in Britain has been experiencing difficulties due to a decline in demand. This decline occurred against the background of the Bank of England’s persistent series of interest-rate increases intended to curb inflation.
The FTSE 100 (.FTSE) builder revealed that underlying private sales reservations dropped by 35% in the first four months of its current fiscal year, which began on May 1. This year’s fiscal year began on May 1.
The pre-tax profit projection for the fiscal years 2024 and 2025 from Berkeley was restated as 1.05 billion pounds, equivalent to $1.31 billion.
The company has said that it anticipates forward sales, a statistic used in the construction sector to evaluate the demand for homes, to be close to 2 billion pounds by October 31, down from 2.14 billion pounds on April 30.
