Barclay Group on Friday said it was raising its profit outlook for this year by more than 5%.
The company plans to raise its profit forecast after a “strong” start to the year. This is despite a pre-tax profit of £401.2m at the start of the year, down from £539.9m in the same period last year.
Sales also fell from £1.66 billion to £1.65 billion.
Chief Executive Rob Perrins said: “Following a strong start to the year, Berkeley is raising its pre-tax profit outlook for the year by at least 5%, and expects a first-half and second-half split similar to last year’s, which was 55%.” % earned in 6 months. ”
“This is in light of the clearly uncertain near-term outlook due to the ongoing Brexit process and a number of headwinds in the operating environment in London and the South East. This will impact confidence and cause many developers to exit these markets, with a consequent negative impact on investment levels and trading volumes.”
George Salmon, equity analyst at Hargreaves Lansdown, said: “Improving earnings and an even stronger looking balance sheet give the group confidence that it can deliver stable shareholder returns through to 2025.” Ta.
“However, there is only so much the group can do to preserve share prices. If disorderly departures trigger a housing meltdown, there is a good chance London will be caught in the storm, so sentiment will will continue to be closely related to the barometer of
He said: “In the short term the share price remains something of a 1/2 bet on Brexit, but looking further afield, given Barclay’s niche business model and enviable track record, Barclays remains a long-term bet. We think this should be a winner.”
Berkeley Group (LON: BKG) stock is trading +3.04% (1006GMT).
