Dec 8 (Reuters) - Berkeley Group raised its annual
profit outlook on Wednesday, after sales recovered to
pre-pandemic levels on strong demand in an under-supplied UK
housing market that helped the high-end British homebuilder post
higher interim profit.
Berkeley, which operates mainly in London, Birmingham and
the South of England, said it has increased its earnings outlook
for the current fiscal year by 5%, and anticipates 5% annual
profit growth for the next three years.
Cheap mortgages have underpinned the UK housing sector after
a tax holiday introduced to prop up purchases was phased out in
September, while robust house prices have helped the builders
tackle cost pressures from supply chain disruptions, fuelled
partly by Brexit and the COVID-19 pandemic.
"We have continued to deliver ... progressing construction
across our portfolio of 64 live projects. These include 30
long-term, highly complex regeneration sites, of which 25 are
now in delivery," said Chief Executive Officer Rob Perrins.
Cobham-headquartered Berkeley, which in September had warned
of construction cost inflation and supply chain woes, said it
continues to have sufficient labour, with overall sales prices
offsetting the hit from higher costs.
Pre-tax profit for the six months ended Oct. 31 stood at
290.7 million pounds ($385.06 million), compared with 230.8
million pounds a year earlier.
Top three British homebuilders Barratt Developments
, Persimmon and Taylor Wimpey have all
forecast strong demand in spite of persistent supply chain woes.
($1 = 0.7549 pounds)
(Reporting by Pushkala Aripaka and Aby Jose Koilparambil in
Bengaluru; Editing by Sherry Jacob-Phillips)