By Sabela Ojea
Berkeley Group Holdings PLC (BKG.LN) on Friday reported a 31% fall in pretax profit for the first half of fiscal 2020 after selling less homes at a lower average price.
The FTSE 100 housebuilder's guidance for the year remains unchanged. The company expects to reach pretax profit in the range of 500 million - 700 million pounds ($656.8 million - $919.5 million) each year to 2025. Analysts forecast annual profit of GBP539.3 million, according to a FactSet consensus of 11 estimates. This compares with an annual profit GBP775.2 million last year.
Berkeley's pretax profit fell to GBP276.7 million for the six months ended Oct. 31 compared with GBP401.2 million for the same period a year earlier. The company said this was due to the completion of a number of developments acquired from 2009 to 2013
Operating profit decreased to GBP256.4million from GBP402.1 million, while net profit also fell to GBP223.7 million from GBP325.1 million.
Revenue fell 44% to GBP930.9 million from GBP1.65 billion, while earnings per share were GBP170.4 pence, down from GBP240.0 pence.
Berkeley sold 1,389 homes in the period at an average price of GBP644,000 compared with 2,027 homes sold last year at GBP740,000.
Write to Sabela Ojea at email@example.com; @sabelaojeaguix