Berkeley profits helped by rising house prices

House-builder Berkeley Group saw both revenues and profits surge in the 2011/2012 fiscal year and said it would hit its medium-term profit targets quicker than first thought.

Revenue jumped by 40.2% from £742.6m to £1,041.1m in the year to April 30th. The group sold 3,656 homes, up from 2,544 the year before, while the average selling price rose from £271,000 to £280,000.

Meanwhile, pre-tax profit climbed by 57.5% from £136.2m to £214.8m. Overheads jumped by £26.1m to £99.6m but reduced as a percentage of revenue.

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The group said it is well-positioned to meet its previous target of doubling its pre-tax profit from £110m to £220m by April 30th 2013, two years earlier than planned. Its first targeted dividend repayment is expected in September 2015.

"I am delighted to report a strong performance again this year," said Chairman Tony Pidgley.

He said that despite the challenging economic outlook in the UK and abroad, new housing is "uniquely placed" to deliver growth: "it is a sector that delivers employment both during and after the development process and stimulates activity throughout the supply chain in manufacturing and service industries."

Shares jumped 4.47% to 1,426p in early trading on Friday.

BC