Berkeley profits boosted

Berkeley Homes has turned in impressive results for the year-end to April with pre-tax profits up 10 per cent to £110.4 million (1998: £100.3 million) on a turnover up 16 per cent to £697 million (1998: £600 million).

Berkeley, the UK's largest - by market capitalisation - housebuilder, was helped by a surge in house prices in London and the South-east over the past six months, which have risen by up to 10 per cent.

Although the Surrey-based developer sold fewer homes during the year - 2,825 units against 3,056 in 1998 - the average selling price rose to £232,000.

Sales were helped by the return of Asian buyers and by people who were buying properties to let.

Chairman Roger Lewis said: "After a difficult period, the housing market strengthened in the new year with the reduction in interest rates. From January through to April, we have seen a positive and, at times, buoyant housing market. Given our policy of selling at an early stage of the development cycle, the upturn has had only marginal benefit on the year reported. Nevertheless, it has enabled us to strengthen considerably our sales position for 1999/00."

Lewis also said: "From September onwards, the land market softened as economic climate became less certain and we took advantage of the change to purchase a number of important sites which will contribute to profits in the current year and, more importantly, in the years beyond."

Berkeley current landbank stands at 14,300 units. The firm is also increasing its penetration in other areas such as mixed-use schemes, leisure and commercial activities.