Berkeley topping up the land bank

Berkeley Group, the house builder focused on London and surrounding areas, said demand for its residential property in 2012 has remained resilient, encouraging it to selectively invest further in stocking up its land bank in the area.

Despite the wider economic challenges, Berkeley has delivered a robust trading performance over the period, most noticeably through the further growth in cash due on forward sales which currently exceed £1 billion compared with £813m at May 1st 2011.

Berkeley had £84m of net debt at 29th February, 2012, against its available banking facilities of £450m. It is currently anticipated that Berkeley will be moderately indebted at the financial year-end of April 30th.

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The board reiterated its guidance provided on December 2nd 2011 that Berkeley aims to achieve a pre tax return on equity for the full year in line with the first half performance of 20.8%.

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