Strong cash position enables housebuilder to profit from land purchase opportunities
Housebuilder Berkeley said today that its full-year performance was in line with expectations in spite of sales falling to 50% below the historical average this financial year.
In an interim management statement for the period from 1 May to 31 August, the UK-based group said that cash generation had been 鈥渁head of plan鈥� and it had increased its net cash position to 拢71m, compared with a net debt of 拢4.5m at the start of the year.
Berkeley added that its 鈥渟trong cash position鈥� was enabling it to take advantage of the 鈥渘umerous land opportunities鈥� coming onto the market.
The group also announced that its shareholders had agreed to a restructuring of the final three pounds per share due to be returned under a scheme of arrangement, which will now be paid as a series of dividend payments and share buyback.
Berkeley welcomed the government鈥檚 initiatives to help first-time buyers onto the property ladder but said normal activity levels in construction and sales of housing would not come back without the return of liquidity to the mortgage market and the 鈥渇eel-good factor鈥�.
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