Yahoo Finance Berkeley Group Warns of Inflation and Growth Risks
By Scott Kanowsky
Investing.com -- London-listed shares in Berkeley Group Holdings PLC (LON:BKGH) fell in early European trading on Wednesday, after the U.K. homebuilder warned of risks from inflation and a potential slowdown in growth in Britain.
In its annual results, Berkeley flagged that uncertainty is "ever increasing" as supply chain shortages and the war in Ukraine place upward pressure on prices and the broader economy.
"As a result of this ongoing volatility, it is right that our risk appetite remains dynamic, varying over time in line with the cyclical nature of our industry and complexity of our operating environment," Berkeley said.
But the group's outlook for its key markets of London and the South-East remained positive, thanks in part to an ongoing undersupply of housing in the regions.
For the year ended on April 30, Berkeley reported a 6.4% increase in pre-tax profit, up to £551.5 million, while operating expenses jumped 18% to £156.9 million.
Berkeley's latest earnings also come after data earlier this week from property website Rightmove predicted a slowdown in U.K. home prices in the second half of 2022. Shares in Berkeley and peers Barratt Developments PLC (LON:BDEV), Persimmon PLC (LON:PSN), and Travis Perkins PLC (LON:TPK) all slid following the release of the study.
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