Berkeley hits a record high as it predicts a rosy future

SHAreS in Berkeley Group hit a record high after it said profits will be even higher than expected in the coming years.

the housebuilder, which specialises in luxury homes in London, said it expects to make profits of £3.3bn over the five years to April 2021.

that is 10pc higher than the previous target of £3bn, and shares at one stage yesterday jumped 9pc or 350p to an alltime high of 4196p – valuing the company at £5.7bn.

Berkeley Group founder and chairman tony Pidgley saw the value of his shares rise by £16m to £195m. the 70-year-old, who was adopted from Barnardo’s by travellers when he was four and left home and school at 15, was paid £29m last year and has sold more than £50m of Berkeley shares in recent months.

Pidgley said that this year’s results will represent the peak for Berkeley.

He added: ‘It is crucial that new housing policies support the London market, not least because the capital is so important to prosperity throughout the rest of the country.’

the housebuilder has faced headwinds including an 18pc slump in sales in London in the past year as increases to stamp duty on expensive homes, a tax raid on landlords and economic uncertainty surrounding Brexit take their toll.

But it sold 2,117 new homes in the six months to the end of october, earning it half-year profits of £533.3m, up 36pc on the same period last year. revenues rose 14pc to £1.6bn.

Shares closed up 7pc, or 267p, at 4113p.