Berkeley Group releases the interim results of its performance
Berkeley Group, housing construction company, has reported a solid six month performance, according to its latest interim results.
The figures show business for the period ending 31 October 2023. The profit that Berkeley Group earned before tax had increased by 4.6%, amounting to £298 million.
Berkeley has also extended its earnings guidance by a year in order to cover the three years ending 30 April 2026. Over this period, Berkeley will be focused on delivering at least £1.5 billion of pre-tax profit which was previously £1.05 billion in two years to 30 April 2025.
“Berkeley has delivered a solid performance in a difficult trading environment,” said Charlie Huggins, manager of the quality shares portfolio at Wealth Club, a non-advisory investment broker.
Huggins noted that the firm’s sales reservations had declined by a third, which reflected the effect of the higher interest rate and the economic environment. However, its prices and margins remained firm, which showed a robust profit and cash flow performance.
He praised the strength of Berkeley’s operating model, which converts large and complex urban regeneration sites into beautiful homes.
“The planning and regulatory environment remains extremely complex, meaning Berkeley is focusing on existing sites rather than committing to new schemes,” said Huggins.
With the current housing shortage, he suggested that the government needs to deliberate on whether it may be able to do more work in incentivising urban regeneration.
“The message from Berkeley is clear - without changes to the planning and regulatory environment, it won't invest,” said Huggins. “That's not good news for anyone, least of all London's future home buyers,” he added.