Developer says it will still meet targets

Developer and regeneration specialist Berkeley Group Holdings saw its profits drop by £13m in its latest figures.

In its six month results to October 2005, the firm saw profit before tax tumble 13.3% from £99.2m in May to October 2004 to £86m in the same period in 2005.

The firm’s chairman Roger Lewis said difficult conditions would depress future margins. He said: “The overall effect of these market conditions - a competitive land market, stable sales prices and increases in both build and planning costs – is a reduction of 0.7% in the forward gross margin. We expect this trend to continue.”

However he said the group was in a strong position to hit its full year targets.

The group made £80.8m from the sale of Crosby Homes to Lend Lease in July.