REG - Berkeley Group Hldgs - Trading Statement

Berkeley groupAnnouncement

14/03/2025 07:00

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RNS Number : 6341A  Berkeley Group Holdings (The) PLC  14 March 2025

 The Berkeley Group Holdings plc

 Trading Update

 Period from 1 November 2024 to 28 February 2025

 14 March 2025

 

The Berkeley Group Holdings plc ("Berkeley") today announces its Trading
Update covering the period from 1 November 2024 to 28 February 2025.

 

"Berkeley set out its 10-year growth strategy - Berkeley 2035 - with its
interim results in December; a strategy focused on long-term value creation
through a flexible capital allocation framework which balances near-term
volatility in the operating environment with the ability to capitalise on
emerging investment opportunities.  Today, Berkeley reaffirms its earnings
guidance to deliver at least £975 million of pre-tax profit across FY25
(£525 million) and FY26 (£450 million).

 

Enquiries are at a consistently good level, and we have seen the modest
improvement in sales reservations that we noted at the time of the interim
results continue through this trading period with sales rates ahead of those
achieved last year.  For this improvement to continue and sales rates to
return closer to the levels of three years ago, there needs to be greater
confidence in the trajectory of interest rate reductions and wider economic
stability.

 

Berkeley has maintained its strong financial position, with net cash
anticipated to be around £300 million at 30 April 2025 (31 October 2024:
£474 million), reflecting an acceleration of shareholder returns since the
half-year through share buy-backs and the anticipated settlement of some £180
million of land creditors in the second half of the year.  The actual
out-turn will be determined by the pace of further share buy-backs, any new
land investment and the phasing of legal completions around the year-end.

 

We remain hugely encouraged by the change in mind-set over planning, brought
about by the Government's planning reforms and housing delivery ambitions
which we fully support. In the period, Berkeley has made good progress,
securing important amendments on 10 of our long-term regeneration sites. We
are now working with our local authority partners to finalise the Section 106
agreements and clear conditions on a number of these so they can be
implemented. We are also actively appraising a number of opportunities in the
land market.

 

Nonetheless, Berkeley remains concerned by the impact of the extent and pace
of regulatory changes of recent years, as we now await details of the new
Building Safety Levy. Taken together, these incremental changes place
significant pressure on the delivery of new homes.

 

We are also working hard in preparing the Building Safety cases required under
the pre-start on site Gateway 2 approval process implemented by the new
Building Safety Regulator. Alongside the rest of the industry, including the
G15 group of Housing Associations, we believe a review of this process is
necessary to ensure it meets its objectives without incurring further delays
to delivery, and thereby supports the Government's housing ambitions.

 

Since its interims results, Berkeley has returned £71.3 million via share
buy-backs (1.9 million shares at an average price of £37.92).  An interim
dividend of 33 pence per share (£33.0 million) has been declared for payment
on 28 March 2025.  Taking this and the share buy-backs in the first half into
account, there is currently £156.1 million residual shareholder return (to
complete the £283.5 million annual return) due by the end of September
2025.  To the extent this amount is not delivered as share buy-backs, it will
be returned in September as a dividend."

 

 

END

 

For further information please contact:

 

The Berkeley Group Holdings plc
                          Novella Communications

R J
Stearn
Tim Robertson

T: 01932 868 555
 
T: 020 3151 7008

 

LEI: 2138009OQSSLVVHQAL78

 

 

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