Berkeley's strategy has been developed for a cyclical market. Residential development is not about individual reporting periods. It is about creating value over the long-term and this requires financial discipline and balance sheet strength. Berkeley acquires land differently to others. The primary focus is on adding value through its development expertise, for which we have an excellent record.
Above all else, enhancing property value is about having time. This is afforded to Berkeley by its strategy of taking low financial risk through a combination of matching production to demand, selling forward and only gearing when this is sufficient visibility of future cash flow.
Warning to Shareholders: Boiler Room Scams
The Directors are aware that some Shareholders have been contacted by "brokers" from overseas, usually from the USA, offering very high prices for their shares in the Company. These offers are a form of Boiler Room scam as discussed in the release Boiler Room Scams from the Financial Services Authority (FSA).
We would advise Shareholders not to engage in discussions with these "brokers" and to report any such activity to the FSA by completing an online form available at http://www.fsa.gov.uk/pages/doing/regulated/law/alerts/overseas.shtml