Berkeley Group shares jump after profits beat forecasts

Riverlight development Image copyright Berkeley group
Image caption The Riverlight development in London is one of Berkeley's flagship schemes

Shares in Berkeley Group have risen more than 8% after the housebuilder posted a jump in annual profits.

The company posted a pre-tax profit of £539.7m for the year to the end of April, up 42% on the previous year.

Strong demand in the company's core markets of London and the South of England helped to bolster results.

But Berkeley warned of upcoming potential uncertainty amid plans for a referendum on Britain's membership of the European Union.

"We welcome the stability in central government following the general election and the commitment to increase housing supply, but political uncertainty remains with the London mayoral election and referendum on Britain's relationship with Europe on the horizon," said chairman Tony Pidgley.

The company supports the UK's membership of the EU.

It said that staying in the EU is "the best way for London to remain a world city".

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