Group says £300m net cash could be used to make more site acquisitions as market stabilises

Berkeley Group said it was going to hit previous profit forecasts on a “stabilising” housing market, ahead of its annual general meeting today.

It also said it had acquired a number of new sites in recent months, including the £22m Johnson House in Belgravia.

In an interim management statement for the period from 1 May to 31 August, Berkeley is expected to reveal it does not expect any writedowns and that the financial performance for both the half and full year will be in line with its expectations.

The group is also expected to highlight a strong balance sheet, with net cash in excess of £300m at 31 August 2009, after acquiring Saad Investments Company's shares in joint ventures of which Berkeley took complete control at the end of July.

Its strong cash position leaves Berkeley well placed to take advantage of any further such opportunities that could add value to the company, it said.

The group has drawn attention to a continuing increase in stability in the housing market in London and the South-east, and it is expected to note a continuation of this during the first four months of its financial year, with Berkeley's forward sales maintained above £600m.

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