Berkeley Group said this morning that profits are set to flatline this year, in line with expectations.
The UK housebuilder said it is on track to post a similar profit to last year’s £503m, and that forward sales are expected to be more than £1.7bn for the year.
It estimated that future gross margin in its land bank will be above last year’s £6.4bn level, and net cash will come in at around £954m.
The developer’s share price dropped 4.68 per cent following the trading update, which analysts at Jefferies described as “disappointing”.
In a note to investors it said: “We continue to see the strong land bank driving significant growth from FY23.
“However it will take time for investors to rebuild confidence, with updates on the destiny of the surplus capital, certainty of the cost cladding as well as discussion of the regeneration sites to drive delivery before investors may reconsider.