Berkeley sees transaction levels normalise in first quarter

1st Sep 2014 07:28

Housebuilder Berkeley Group said that it has been able to maintain the level of forward sales during the first quarter despite a normalisation of the housing market over recent months.The firm had reported nearly £2.3bn of cash due on forward sales by the end of the previous financial year (30 April), up from £1.5bn the year before.Berkeley said on Monday that the market has "reverted to normal transaction levels from the high point in 2013". Nevertheless, it said that this provides a "stable operating environment"."Demand for the right product with good design in the best locations has remained resilient and, reflecting this, forward sales have been maintained at the levels previously reported," said chairman Tony Pidgley.Meanwhile, he said that the company has made good progress during the first quarter in unlocking a number of sites in its land pipeline, which comprises over 11,000 plots.Operating cash inflow was strong, helped by the disposal of a portfolio of Berkeley's ground rent assets for £100m in June."With a strong balance sheet and land bank Berkeley is well positioned to continue to invest in the business and deliver returns to shareholders. Earnings this year are anticipated to be in line with current market expectations," Pidgley said.BC