REG - Berkeley Group Hldgs - Final Results
Yesterday 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250620:nRST6622Na&default-theme=true
RNS Number : 6622N Berkeley Group Holdings (The) PLC 20 June 2025
PRESS RELEASE
20 JUNE 2025
YEAR END RESULTS ANNOUNCEMENT
Exceptional execution to deliver strong operational and financial performance
in volatile operating environment and on track for FY26
Very supportive Government policy but regulatory headwinds remain
92% of homes delivered by Berkeley in FY25 were on brownfield land with some
£580 million investment in socio-economic benefits
Great start to Berkeley 2035 strategy, with first 4 buildings transferred to
the BTR platform and good progress on planning, creating long-term shareholder
value
The Berkeley Group Holdings plc ("Berkeley") today announces its audited
results for the year ended 30 April 2025.
Rob Perrins, Chief Executive, said:
"Berkeley has delivered £528.9 million of pre-tax profit for the year, with
net cash at £337.3 million, in spite of ongoing geopolitical and
macroeconomic volatility. With over 75% of sales secured for the coming
year, we are well-placed to achieve our FY26 pre-tax profit guidance of £450
million.
This represents an excellent operational performance with highly disciplined
execution and close control of costs. We have added long-term value to the
business, both in our land holdings and through our Build to Rent (BTR)
platform, while returning £381.5 million to shareholders; a great start to
the Berkeley 2035 strategy.
There is good underlying demand for our homes, with transaction volumes
gradually improving over the course of the year. However, consumer confidence
remains finely balanced and a more meaningful recovery requires both improved
sentiment and macroeconomic stability.
Berkeley is fully committed to the Government's housing-led growth agenda, and
we are submitting planning applications on all our sites to accelerate
delivery. We continue to work with all levels of Government to ensure
planning consents are appropriately viable following a number of years of
extreme cost inflation and regulatory change and can move into production.
We welcome the Government's efforts to unblock housing supply and advocate
focused action to accelerate the completion of Section 106 agreements and
clearance of pre-commencement conditions; improve and speed-up the Building
Safety Regulator's new Gateway approval system; increase funding for the
Affordable Housing sector; and ensure Planning Authorities have the resources
and pro-active mind-set to facilitate housing delivery.
We were therefore delighted to see the increase in Affordable Housing funding
and the 10-year social housing rent settlement announced in last week's
Spending Review, which represent positive progress towards achieving their
housing ambitions.
Regenerating brownfield land remains central to Government policy with an
estimated 88,000 homes required to deliver the national annual housing target
to come from London. With our focus on London, Birmingham and the
South-East, Berkeley is the only large UK homebuilder with a business model
that prioritises brownfield development and is unique in having the expertise
and resources to unlock complex urban sites and their significant economic and
social value.
92% of the 4,300 homes delivered in the year are on regenerated brownfield
land and we have provided some £580 million in subsidies to deliver
affordable housing and commitments to wider community and infrastructure
benefits.
To capitalise fully on the opportunity presented by large-scale brownfield
regeneration, we advocate the use of bespoke Section 106 agreements instead of
the Community Infrastructure Levy (CIL), which would reflect the significant
on-site infrastructure and amenities they provide and allow for an increase in
delivery of much needed affordable housing.
We are delighted to have added a large site in Slough town centre to our
portfolio in the year and also to have been selected as development partner by
Birmingham City Council for the regeneration of the 148-acre Ladywood Estate,
with the potential to deliver over 7,500 new and refurbished homes. Both are
hugely exciting opportunities to drive growth in our towns and cities in
partnership with energised and forward-thinking public sector partners.
Under our new Berkeley 2035 strategy announced in December, which is fully
aligned to the Government's increased housing delivery ambitions, Berkeley can
allocate £5 billion of capital to new investment over the 10-year period,
including delivering 4,000 homes for rent through our own Build to Rent (BTR)
platform.
We have adapted our business to current market conditions over the last 18
months, which results in the pre-tax profit guidance for FY26 of £450
million, with FY27 likely to be similar, based on current sales rates. Our
long-term target is to make a pre-tax return on equity above 15% over the
cycle but will be below this in the medium-term while the current operating
environment volatility persists, and we invest in our BTR platform to increase
future delivery and maximise long-term value for shareholders.
Berkeley's performance is a result of the skill, passion and commitment of our
people. They continue to deliver hugely positive outcomes for communities, the
economy and environment through ambitious brownfield regeneration and I thank
them for this on behalf of the Board and shareholders."
Summary of FINANCIAL POSITION, Earnings AND Shareholder ReturnS
As at As at Change
Financial Position 30-Apr-25 30-Apr-24 absolute
Net cash ((1)) £337m £532m -£195m
Net asset value per share ((1)) £35.95 £33.63 +£2.32
Cash due on forward sales ((1)) £1,403m £1,701m -£298m
Land holdings - future gross margin ((1)) £6,722m £6,929m -£207m
Pipeline plots (approximately) 12,000 13,500 -1,500
FY to FY to Change
Earnings 30-Apr-25 30-Apr-24 %
Operating margin 20.1% 19.5% N/A
Profit before tax £528.9m £557.3m -5.1%
Basic earnings per share 371.8p 373.9p -0.6%
Pre-tax return on equity ((1)) 14.9% 16.2% N/A
Return on capital employed ((1)) 16.5% 18.3% N/A
FY to FY to
Shareholder Returns 30-Apr-25 30-Apr-24
Share buy-backs undertaken £129.7m £72.3m
Dividends paid £251.8m £98.1m
Shareholder returns £381.5m £170.4m
Share buy-backs - volume 3.3m 1.8m
Average price paid for share buy-backs £39.05 £39.62
Dividends per share £2.40 £0.92
( )
((1)) See Note 9 of the Condensed Consolidated Financial Information for a
reconciliation of alternative performance measures
· The value of private sales reservations has improved gradually
over the year, ending around 5% ahead of FY24, but below our long-term
aspiration.
· Operating efficiency maintained with operating costs 3% lower
than last year despite an inflationary environment.
· Net cash is £337 million, after shareholder returns of £382
million, land creditor payments of £210 million and £80 million of BTR
construction cost. £1.2 billion of borrowing capacity provides total
liquidity of £1.5 billion.
· Net asset value per share has increased by 7% to £35.95 and
reflects historic cost.
· Unrivalled land holdings with £6.7 billion of future gross
margin - with strong planning momentum during the year.
CAPITAL ALLOCATION AND BERKELEY 2035
· £381.5 million of shareholder returns in the year, with £121
million due by 30 September 2025 to complete the 2011 Shareholder returns
programme.
· New 10-year strategy, Berkeley 2035, announced to provide
resilience and flexibility for Berkeley to allocate capital between land
investment, growing its BTR platform and shareholder returns, as the operating
environment evolves.
· Next shareholder return target is £640 million to be returned by
30 September 2030.
· 3 new sites acquired in the year and 5 new planning consents
obtained.
· First 4 BTR buildings transferred to the platform and
well-advanced in establishing team, brand and operations.
DELIVERING FOR ALL STAKEHOLDERS
· 4,047 homes delivered, plus 282 in joint ventures (2024: 3,521,
plus 406) - 92% of which are on brownfield land.
· Approximately £580 million of subsidies provided to deliver
affordable housing and committed to wider community and infrastructure
benefits in the year.
· Berkeley is delivering over 10% of London's new private and affordable
homes - supporting an average of approximately 27,000 UK jobs per annum
directly and indirectly through its supply chain over the last five years.
· Industry leading Net Promoter Score (+81.6) and ranked the top UK
housebuilder for build quality by HomeViews.
· Industry-leading approach to biodiversity net gain, helping to
connect people and nature. 57 developments now committed, which will create
more than 1,200 acres of new or measurably improved natural habitats.
· Reducing embodied carbon within the materials used to construct
our buildings, through targeted actions through design, specification and
procurement. More than 60 embodied carbon assessments completed to date.
· Rated 'AAA' within the MSCI ESG ratings, a top 10% company within
S&P's Global Corporate Sustainability Assessment (CSA), an ESG Industry
Top-Rated company by Sustainalytics, and given 'prime' status by ISS Corporate
Solutions ESG Corporate Rating.
· Maintained our commitment to skills, training and social mobility,
with 9% of direct employees in 'earn and learn' positions as graduates,
apprentices or sponsored students in the year, retaining Gold membership of
the 5% Club.
· Named Britain's Most Admired Company for 2024 in the
longest-running annual survey of corporate reputation amongst FTSE100 and 250
companies, sponsored by the London Stock Exchange.
Investor and Analyst Presentation:
A pre-recorded presentation by the Directors of Berkeley on the results will
be made available on the Company's website at 11:00 today -
https://www.berkeleygroup.co.uk/investors/results-and-announcements
(https://www.berkeleygroup.co.uk/investors/results-and-announcements) .
For further information please contact:
The Berkeley Group Holdings
plc
Novella Communications
R J Stearn (01932 868555)
Tim Robertson (020 3151
7008)
CHIEF EXECUTIVE'S REVIEW
Purpose, Long-term Strategy and Capital Allocation
Berkeley's purpose is to build quality homes, strengthen communities and make
a positive difference to people's lives, using our sustained commercial
success to make valuable and enduring contributions to society, the economy
and natural world.
We are the only large UK homebuilder to prioritise brownfield land, as we
progress 32 of the country's most complex regeneration projects, 26 of which
are in delivery. Each of these neighbourhoods is uniquely designed in
partnership with local councils and communities and includes valuable public
amenities and infrastructure, alongside tenure-blind private and affordable
homes.
We have made strong progress across this portfolio in the year as we transform
neglected land into welcoming and sustainable neighbourhoods.
- At Kidbrooke Village in Greenwich we have now completed over 3,000
private and affordable homes and established a thriving village centre,
including a new train station, shops, cafes, a pub and community centre. This
popular neighbourhood is defined by its green open landscape and we are about
to start work on the next phase of the award-winning Cator Park, which will
include a new pavilion and education space for the London Wildlife Trust.
- At King's Road Park we have now completed the first private and
affordable homes and welcomed our first residents to this new community in the
South Fulham Regeneration Area. The first section of a new public park is now
open and a collection of carefully restored heritage assets has been unveiled.
Enabling work is also underway on the refurbishment of the site's Grade II
Listed Gasholder, thought to be the oldest in the world, which will become the
historic centrepiece of this new neighbourhood.
Berkeley is a unique, asset-focussed development business that seeks to manage
risk and generate value through market cycles, with its inherent latent value
rooted in its unrivalled land holdings. We seek to find the optimum
development solution for each site in terms of the social, environmental and
economic value for all stakeholders, alongside the returns we deliver to our
shareholders. We firmly believe these objectives are mutually compatible and
reinforcing. The pace at which we deliver homes from our land holdings is
determined by the prevailing operating environment and we will always adopt a
long-term approach, prioritising financial strength above annual profit
targets.
Our capital allocation policy is clear: first, ensure financial strength
reflects the cyclical nature and complexity of brownfield development and is
appropriate for the prevailing operating environment; second, invest in the
business (land and work-in-progress, including build to rent assets) at the
right time; and third, make returns to shareholders through share buy-backs
and dividends.
Strategy Positioning - "Berkeley 2035"
The Government's aspiration to deliver 1.5 million homes over this current
parliament has been a catalyst to unlocking the planning system. Berkeley is
well aligned to Government's ambition with its brownfield land holdings and
pipeline in well-connected urban areas.
In December 2024, Berkeley announced a 10-year strategy to drive long-term
shareholder value by using its operating expertise and balance sheet strength
to capitalise on investment opportunities as they arise while taking account
of the volatility that persists in the operating environment.
Berkeley 2035 is underpinned by an agile capital allocation framework that
identifies £7 billion of free cash flow to deploy over the next 10 years to
drive value, based upon the following initial allocation:
£'billion
Land investment to broadly replace land holdings used over 10 years 2.5
Existing BTR commitment for initial 4,000 home portfolio 1.2
Minimum level of shareholder returns committed 2.0
Flexible allocation to be invested or returned to shareholders 1.3
Free cash flow to be deployed over 10 years to 2035 7.0
As indicated by the £1.3 billion identified for flexible allocation, Berkeley
will adopt an agile approach able to flex a greater allocation to new land,
its BTR platform or shareholder returns as the operating environment evolves.
Capacity for further investment or shareholder returns will be created to the
extent third party funding (debt or equity) is introduced to the BTR platform
over the next 10 years.
Berkeley 2035 comprises three principal value drivers:
(i) Increase return on capital in the core business by:
· Optimising the value of existing sites through re-planning activity,
alongside the delivery of high-quality placemaking and customer service;
· Securing the inherent value within our pipeline sites and bringing
them forward into delivery; and
· Selective investment in new sites where Berkeley can use its added-value
development expertise to create great places and homes, and value for
shareholders.
(ii) Establish our own market-leading BTR platform and
significantly grow its value by:
· Creating a permanent route to market with income generating assets
attractive to institutional core capital to capture fundamental BTR value
drivers of rental growth and stabilised investment yields;
· Identifying multiple and flexible exit routes post stabilisation,
including:
- Disposal of individual BTR buildings or a series of portfolios;
- Introducing third-party equity, Berkeley retaining management under a
fee arrangement; or
- Debt introduction, with allocation to the BTR assets; and
· Maximising the opportunity to capture superior returns through
best-in-class platform and service.
(iii) Make returns to shareholders, through share buy-backs or
dividends; a strategy that will grow the long-term value of the Company, while
retaining financial strength:
· Targeting a minimum level of shareholder returns of £2.0 billion
over 10 years
· £0.9 billion of which will be returned on a phased basis by 30
September 2030
- Includes the final £260 million to be returned under the 2011 programme
of which £139 million already paid and remaining £121 million to be paid by
30 September 2025
- Residual £640 million to be paid via share buy-backs or dividends
· £1.1 billion to be paid by 30 September 2034
Berkeley 2035 incorporates the necessary resilience to navigate what remains a
volatile near-term operating environment, while providing Berkeley with the
flexibility to use its entrepreneurial property expertise to maximise the
value and potential of our land holdings and BTR platform, grow net asset
value per share over the investment phase of the 10-year period, growing
profitability and delivering returns to shareholders at the right point in the
cycle. We continue to target operating margin of 17.5% to 19.5% and a
long-term pre-tax ROE of 15%.
Shareholder Returns
Shareholder returns during the financial year totalled £381.5 million:
Shareholder Returns for the year ended 30 April 2025 2024
£'m £'m
Dividends paid 68.0 98.1
Special dividend paid 183.8 -
Share buy-backs undertaken 129.7 72.3
Shareholder return in the financial year 381.5 170.4
Dividends paid in the year of £68.0 million comprised a £35.0 million
payment in July 2024 (33 pence per share) and a £33.0 million payment in
March 2025 (33 pence per share).
The special dividend in the year of £183.8 million (174 pence per share) was
followed by a share consolidation which reduced the Company's share capital,
net of Treasury and EBT shares, by 3.7 million shares (3.5%).
The share buy-backs of £129.7 million were in respect of 3.3 million shares
(average price: £39.05 per share).
Under Berkeley 2035 there is £121 million due to be returned by 30 September
2025 which may be made through share buy-backs and a dividend in September to
the extent there is a residual amount following any share buy-backs (which
completes the annual return of £284 million by 30 September 2025 under the
2011 Programme). Thereafter, the next shareholder return hurdle is a further
£640 million over the five year period to 30 September 2030.
Housing Market and Operations
Sales
The value of underlying net sale reservations for the year was 5% ahead of
FY24, weighted slightly to the second half reflecting the improved momentum we
noted in December's interim results and March's Trading Update. While this
is encouraging, current sales levels are below our long-term aspirations and
around 30% lower than FY23.
While transaction sales volumes will only inflect in a meaningful way once
there is confidence in the trajectory of interest rate reductions and wider
economic stability, Berkeley's unique and beautiful developments with access
to nature and well connected to public transport, alongside outstanding
customer service, continue to differentiate our product and generate good
enquiry levels.
This underlying demand has underpinned the launch of three new developments in
London during the year: Wandsworth Mills, Bermondsey Place in Southwark and
Trillium in Marylebone and the next phases of a number of our established
developments, including White City Living, London Dock and TwelveTrees Park,
amongst others. These have all generated good levels of forward sales, with
customers who are able to commit funds recognising that this is a good time to
buy. In these market conditions, demand levels do vary between sites,
depending upon their individual characteristics, and this is also reflected in
pricing. Overall, sales prices secured across our portfolio have been slightly
ahead of business plan pricing at the start of the financial year. Forward
sales are £1,403 million (30 April 2024: £1,701 million) and will moderate
further over the next 12 months under prevailing market conditions.
Our outlook for the sales market is positive. The fundamentals are strong and
improving with good employment, real wage inflation, falling mortgage rates
and strong rental market dynamics. There is deep-rooted undersupply of new
homes in Berkeley's core markets. Focusing on London, which remains a
fantastic global city, the latest quarterly MHCLG data is stark with just over
6,300 new-build starts over the last 12 months to 31 December 2024, a
year-on-year decline of some 60%. London's housing need is now estimated at
88,000 homes per year based on the NPPF assessment, while the current London
Plan (which remains in place until 2026) has an annual housing delivery target
of 52,000 homes.
Land and planning
Berkeley has acquired three new sites in the year. These include: a strategic
site at Maidenhead in Berkshire for 220 homes, following the grant of a
planning consent; a brownfield site in Hersham, Surrey, for which a resolution
to grant planning has been received since the year end for 260 homes; and the
Queensmere and Observatory Shopping Centres in Slough, which have the
potential to deliver over 2,000 homes.
We have made good progress on the planning front, securing five new planning
consents at Bromley-by-Bow (2,150 homes), Leyton (640 homes) and Stratford
(245 homes) in London and Bath (611 homes) and the new Maidenhead site outside
London. In addition, there have been over 30 other planning amendments
agreed in the year, including additional homes at TwelveTrees Park in West
Ham, London Dock in Wapping, Heron Wharf in Poplar, and Horlicks Quarter in
Slough.
At 30 April 2025, Berkeley's land holdings comprise 52,714 plots across 64
developments (30 April 2024: 54,081 plots across 70 developments), including
those in the St Edward joint venture. The plots in the land holdings have an
estimated future gross profit of £6.72 billion (30 April 2024: £6.93
billion), which includes the Group's 50% share of the anticipated profit on St
Edward's joint venture developments.
Through the three new sites, planning activity (including transfers with the
pipeline) and market movements, Berkeley has replaced £0.5 billion of the
£0.7 billion of gross profit taken through the Income Statement in the
year. The estimated future gross margin in the holdings at the end of the
year was 24.7% (30 April 2024: 25.1%).
The estimated future gross margin represents Management's risk-adjusted
assessment of the potential gross profit for each site, taking account of a
wide range of factors, including current sales and input prices; the political
and economic backdrop; the planning regime; and other market forces; all of
which could have a significant effect on the eventual outcome.
In the year, Berkeley has provided some £580 million in subsidies to deliver
affordable housing and commitments to wider community and infrastructure
benefits through Section 106 agreements. At over 150% of post-tax profit, this
rate has doubled over the last 10 years. Over the same period new starts
across the industry in London have more than halved.
The pipeline comprises approximately 12,000 plots at 30 April 2025, following
the transfer in the year of the site at Bromley-by-Bow to the land holdings on
achieving planning consent net of other movements. The pipeline includes the
first phase of the St William site at Beckton (2,800 homes) and the St Edward
site in Brentford (2,100 homes), pending finalisation of its Section 106
agreement.
Construction
For Berkeley, build costs have remained stable over the course of the year.
The sluggish domestic economic backdrop, with low housebuilding and wider
construction activity, is leading subcontractors to absorb underlying
inflationary pressure on materials and labour within their tender pricing.
As we look forward, Berkeley expects this dynamic to continue as
subcontractors place value on securing the forward orders in a weak market.
We remain alive to inflation risk, conscious of the recent increase in
Employers' National Insurance Contributions, but more prominently from ongoing
regulatory change, including the transition to a new regulatory regime. In
respect of the latter, we continue to work with both the MHCLG and the
Building Safety Regulator (BSR) to resolve the ongoing process issues
encountered at Gateway 2 which, if left unresolved, would lower industry-wide
delivery over the medium-term.
Build to Rent Platform
Berkeley has made significant strides toward establishing a market-leading BTR
platform during this period.
The first four buildings have been transferred to the BTR platform as at 30
April 2025. Comprising 762 homes, this is nearly 20% of the initial 4,000 home
portfolio. The next two buildings (at Grand Union and Silkstream) have been
transferred since the financial year end:
Sites in the BTR Platform (30 April 2025) Location Initial BTR Total BTR
Homes Homes
- Alexandra Gate, Haringey Zone 3 187 402
- Kidbrooke Village, Greenwich Zone 3 90 206
- Eden Grove, Staines Surrey 158 158
- Horlicks Quarter, Slough Berkshire 327 327
In the BTR platform 762
- Grand Union, Wembley Zone 3 177 326
- Silkstream, Hendon Zone 3 183 183
Total homes in production 1,122
- BTR future production 2,878
- Other sites - 2,398
Initial BTR portfolio 4,000 4,000
A management team is in place, led by senior Berkeley employees augmented
through external hires from the BTR industry with operational, customer
service and digital experience. Six planning consents have been obtained to
revise the amenity provision or optimise the unit mix for a rental market in
the relevant buildings. An appropriate specification has been determined and
Berkeley is well advanced in establishing a distinct BTR brand identity
targeting a rental market that leverages the existing brand credentials.
Berkeley will be launching its first development to the rental market in
spring 2026 (Alexandra Gate).
The initial BTR portfolio homes are included in the land holdings plots and
future estimated gross profit.
CMA investigation
In February 2024, the Competition and Markets Authority (CMA) announced an
investigation into possible anti-competitive sharing of information in the
housebuilding industry. We continue to cooperate with the CMA and its
enquiries.
Self-Remediation Terms and Contract
On 13 March 2023 Berkeley entered into the Self-Remediation Terms and Contract
with MHCLG, under which developers have responsibility for any life-critical
fire safety defects in buildings they have developed in the 30-year period to
April 2022.
For the 820 relevant buildings Berkeley has developed over this period, we
have third party assessments on over 95%. All of the remaining buildings are
where Berkeley is not the freeholder and has not yet been provided access.
There are 36 buildings where works are still to be completed, 12 of which are
buildings where Berkeley is reimbursing Government for the works under the
Developer Remediation Contract. Where works are required and yet to commence,
Berkeley intends to begin works as soon as reasonably possible, subject to
access being provided by the freeholder. It is Berkeley's preference to take
full responsibility for all its relevant buildings and to complete any
required works itself as this will speed up the overall process of
remediation. We are seeking recoveries from the supply chain and insurers
where appropriate.
We continue to work closely with Government and the BSR to complete any
required remediation work as quickly as possible which, together with the
actions taken to date, should restore trust and confidence to the housing
market, enabling it to operate efficiently, effectively and fairly for all.
Outlook
Berkeley is determined to play a full part in helping Government meet its
growth ambitions and has been greatly encouraged by the tone set by the
brownfield-led housing agenda. Converting this into delivery is challenging
particularly as it comes after a period of extreme cost inflation and complex
regulatory change. However, the challenges must not dampen the ambition as
the prize is significant in the form of economic growth, revitalised towns and
cities and better prospects for young people.
We have a clear plan for the next 10 years and are ready to invest £5 billion
of capital into new sites and our new BTR platform, which will deliver at
least 4,000 additional homes over this period.
We are positive about the future, with strong fundamentals supporting both the
for sale and rental elements of our business including structural under-supply
and the prospect of falling interest rates and a supportive lending market.
Central to this is the UK and London's position in the global economy and the
ability to attract the investment required by both the public and private
sectors to meet the nation's housing need.
As always, we are positioning Berkeley for the long-term and embark upon the
new financial year in a strong financial position with net cash of £0.3
billion, £1.4 billion of cash due on exchanged private forward sales and
£6.7 billion of future gross margin in our land holdings.
Rob Perrins
Chief Executive
TRADING AND FINANCIAL REVIEW
Trading performance
Berkeley delivered pre-tax profits of £528.9 million for the year:
Year ended 30 April 2025 2024 Change
£'m £'m £'m %
Revenue 2,486.5 2,464.3 +22.2 +0.9 %
Gross profit 660.3 644.5 +15.8 +2.5%
Operating expenses (160.3) (164.8) +4.5 -2.7%
Operating profit 500.0 479.7 +20.3 +4.2%
Net finance income 14.2 12.0 +2.2
Share of joint ventures 14.7 65.6 -50.9
Profit before tax 528.9 557.3 -28.4 -5.1%
Pre-tax return on equity 14.9% 16.2%
Return on capital employed 16.5% 18.3%
Earnings per share - basic 371.8p 373.9p -2.1p -0.6%
Revenue of £2,486.5 million in the year (2024: £2,464.3 million) included
£2,432.2 million of residential revenue (2024: £2,395.7 million), £14.8
million of commercial revenue (2024: £47.2 million) and £39.5 million of
land sales (2024: £21.4 million).
4,047 new homes (2024: 3,521) were sold across London and the South-East at an
average selling price of £593,000 (2024: £664,000) reflecting the mix of
properties sold in the year.
The gross margin percentage is 26.6% (2024: 26.2%), reflecting the mix of
developments on which homes were completed in the year.
Overheads of £160.3 million have decreased £4.5 million (2024: £164.8
million). The operating margin is 20.1% (2024: 19.5%).
The cost of borrowings and amortisation of associated fees and imputed
interest on land creditors is outweighed by interest earned from gross cash
holdings, resulting in net finance income of £14.2 million for the year
(2024: £12.0 million).
Berkeley's share of the results of joint ventures is a profit of £14.7
million (2024: £65.6 million), with St Edward's profits arising from its
South-East developments following delivery of its central London developments
in the prior year.
The taxation charge for the year is £146.9 million (2024: £159.7 million) at
an effective tax rate of 27.8% (2024: 28.7%), which incorporates the
additional 4% RPDT and Corporation Tax of 25%.
Pre-tax return on equity for the year is 14.9% (2024: 16.2%) and return on
capital employed for the year is 16.5% (2024: 18.3%).
Basic earnings per share has decreased by 0.6% from 373.9 pence to 371.8
pence, which takes account of the share consolidation which accompanied the
special dividend during the year and the buy-back of 3.3 million shares for
£129.7 million under the Shareholder Returns Programme.
Financial Position
The Group's net assets are £3,560 million (2024: £3,561 million):
Summarised Balance Sheet as at 30 April 2025 2024 Change
£'m £'m £'m
Non-current assets (excluding investment properties) 379.3 393.4 -14.1
Investment properties 145.7 - +145.7
Inventories 5,052.2 5,283.9 -231.7
Debtors 100.4 127.0 -26.6
Creditors and provisions (2,455.1) (2,775.8) +320.7
Capital employed 3,222.5 3,028.5 +194.0
Net cash 337.3 532.0 -194.7
Net assets 3,559.8 3,560.5 -0.7
Shares, net of treasury and EBT 99.0m 105.9m -6.9m
Net asset value per share 3,595p 3,363p +232p
Investment Properties
Investment properties totalled £145.7 million as at 30 April 2025, measured
on a cost basis, in relation to assets under development which have been
transferred to the Group's BTR platform during the year.
Inventories
Inventories of £5,052.2 million include £554.3 million of land not under
development (2024: £725.8 million), £4,160.1 million of work in progress
(2024: £4,347.7 million) and £337.8 million of completed stock (2024:
£210.4 million).
During the year, five developments (Milton Keynes, Wandsworth Mills, Spring
Hill in Maidenhead, Hurlingham in Fulham and Trillium in Marylebone) have been
moved from land not under development into work in progress. The completed
stock is spread across 25 developments.
Creditors
Total creditors of £2,455.1 million include £711.5 million of on-account
contract receipts from customers (2024: £907.7 million) and land creditors of
£714.0 million (2024: £881.7 million). Of the total £714.0 million land
creditor balance, £251.2 million is classified as short-term given the
expected settlement within 12 months of the balance sheet date.
Creditors also include provisions of £229.6 million (2024: £209.8 million)
which represents post completion development obligations, including those
related to building fire-safety matters, and other provisions.
Net cash
The Group ended the year with net cash of £337.3 million (2024: £532.0
million), a decrease of £194.7 million:
Abridged Cash Flow for year ended 30 April 2025 2024
£'m £'m
Profit before taxation 528.9 557.3
Taxation paid (120.5) (170.5)
Net investment in working capital (215.5) (105.9)
Net contribution to joint ventures (15.8) (3.7)
Other movements 9.7 14.8
Shareholder returns (381.5) (170.4)
(Decrease) / increase in net cash (194.7) 121.6
Opening net cash 532.0 410.4
Closing net cash 337.3 532.0
The net cash of £337.3 million comprises gross cash holdings of £1,015.2
million and long-term borrowings of £677.9 million. Long-term borrowings have
increased by £17.9 million in the year following a drawdown of the Homes
England borrowing facility (see Funding below).
Net assets and NAVPS
Net assets decreased over the year by £0.7 million to £3,559.8 million
(2024: £3,560.5 million) as shareholder returns of £381.5 million and other
movements in reserves of £1.2 million offset the profit after tax for the
year of £382.0 million.
The shares in issue, net of treasury and EBT shares, closed at 99.0 million
compared to 105.9 million at the start of the year. The net reduction of 6.9
million shares comprises three movements (subject to rounding):
· The 3.3 million share buy-backs undertaken during the year
for £129.7 million (£39.05 per share),
· The issue of 0.2 million shares under the 2011 LTIP; and
· A reduction of 3.7 million shares resulting from the share
consolidation.
Consequently, the net asset value per share is 3,595 pence at 30 April 2025,
up 6.9% from 3,363 pence at the start of the year.
Funding
The Group's borrowing capacity of £1,200 million was unchanged during the
year and comprises:
· £400 million unsecured 10-year Green Bonds which mature in August
2031 at a fixed coupon of 2.5% per annum; and
· £800 million bank facility, including a £260 million Green Term
Loan and a £540 million undrawn Revolving Credit Facility.
Berkeley has allocated the proceeds of the Green Bonds and Green Term Loan to
its ongoing development activities in accordance with its Green Financing
Framework (available on its website).
Berkeley has a facility with Homes England whereby it may apply amounts
borrowed towards financing or re-financing certain infrastructure type costs
incurred on three of its developments. The facility totals £125.6 million, is
unsecured, has floating interest rates linked to UK base rate and requires
33.33% of any outstanding loans to be repaid by 31 December 2031, 50% by 31
December 2032 and 100% by 31 December 2033. As at 30 April 2025, £17.9
million was an outstanding loan (2024: £nil).
With borrowings of £678 million, the Group's gross cash holdings of over £1
billion throughout the year have been placed on deposit with its six
relationship banks.
Joint Ventures
Included within non-current assets are investments in joint ventures accounted
for using the equity method which are at £243.4 million at 30 April 2025
(2024: £227.0 million). The net £16.4 million increase in the year arises
from Berkeley's 50% share of two movements:
· Share of profits earned in joint ventures of £14.7 million;
and
· Share of loan contributions to site specific joint ventures
of £1.7 million.
In St Edward, 282 homes were completed in the year at an average selling price
of £499,000 (2024: 406 homes at £788,000). Completions occurred
predominately at its South-East developments, Hartland Village in Fleet, Green
Park Village in Reading and Highcroft in Wallingford.
In total, 2,429 plots (2024: 2,502 plots) in the land holdings relate to four
St Edward developments, all outside of London (Reading, Fleet, Wallingford and
Guildford).
Our Vision 2030: Transforming Tomorrow
Our Vision 2030 is Berkeley's responsible business strategy, designed to drive
our performance, foster innovation and reinforce our position as the country's
most sustainable developer through maximising our positive contributions to
society, the economy and the environment.
We were delighted to be named Britain's Most Admired Company for 2024 in the
longest-running annual survey of corporate reputation amongst FTSE100 and 250
companies. Alongside the overall rating, we also won the 'Gold' awards for
clarity of strategy, long-term value potential and reducing environmental
impact.
Delivering for our customers
Our customer-first approach is reflected in our Net Promoter Score (NPS) of
+81.6, which significantly outperforms the industry average of +59 (HBF, March
2025). 98% of our customers would 'recommend us to a friend'.
This year, 67% of our homes were reported by customers as defect-free,
compared to just 6% across the industry (HBF, March 2025). We were ranked as
the top UK housebuilder for build quality by HomeViews (part of Rightmove),
the only independent review platform in the country. For the 11(th)
consecutive year we received the 'Outstanding Achievement' and 'Gold' awards
from InHouse Research, an independent third party which undertakes our
customer surveys.
A focus on build quality is instilled throughout the business. All sites are
audited by an internal independent team against our stringent Building Safety
and Quality Assurance Standards. We have incorporated enhanced arrangements
this year to reflect the Building Safety Act, introduced additional training
for our teams and supported our supply chain to adapt to the new requirements.
Enduring contributions through brownfield regeneration
Reviving neglected urban sites is the most sustainable way to create new homes
and enables Berkeley to deliver valuable contributions. Over the past five
years, we have delivered 20,779 new homes, supported 27,000 jobs, and
contributed £2.3 billion in affordable housing funding. Our developments are
creating over 500 new public amenities, along with improvements to open
spaces, infrastructure, and transport links.
Our larger developments have tailored community plans, informed through local
research and developed in collaboration with partners, which support the
integration of new and existing communities and long-term neighbourhood
stewardship.
Environmental leadership
Having pioneered the successful implementation of Biodiversity Net Gain (BNG)
on new developments since 2017, we now have BNG strategies on 57 developments
covering an area of over 1,200 acres. Our priority is to implement BNG on
site, helping to connect people to nature and regreen our towns and cities. We
continue to share our experience and were delighted to win Property Week's ESG
Edge Award for Excellence in Habitat Restoration.
We are committed to playing our part in climate action and have submitted
updated science-based targets (SBTs) for validation this year. The SBTs
underpin our effort to reduce carbon emissions across three key areas: the
operation of the homes we build; the embodied carbon in the materials used to
build the homes; and our own day-to-day business activities.
Carbon emissions from the use of homes are regulated and we await further new
requirements via the Future Homes and Buildings Standard. In advance of this,
we have been preparing our developments for the expected changes and
incorporating technologies such as heat pumps and solar PV panels.
Since 2021 our focus has been on the unregulated embodied carbon, carrying out
over 60 embodied carbon assessments to build our knowledge on design, material
specification and sourcing. Direct engagement with manufacturers of
carbon-intensive materials, such as aluminium and concrete, has developed our
understanding of their decarbonisation plans and the availability of lower
carbon options. We support the launch of the pilot Net Zero Carbon Buildings
Standard, the first of its kind across industry, and have chosen to adopt the
limits it sets out for embodied carbon.
People and culture
This year's employee survey showed an improvement across all areas, with
recognition of recent enhancements to employee benefits including improved
parental leave and menopause support. We focus on Equity, Diversity and
Inclusion through five key areas: leadership commitment, external
partnerships, awareness and allyship, inclusive recruitment, and data-driven
change. Our teams are focused on inclusion initiatives, for example
participation in events such as the London Pride Parade.
We have a zero-harm goal across our sites and have an established and robust
approach to health and safety. Our Annual Injury Incidence Rate stands at 102
per 100,000 people, compared to the industry average of 306 (HSE, November
2024).
All employees are required to complete training on combatting modern slavery
and we have embedded due diligence and risk management processes within our
commercial and construction activities, including a questionnaire that is
completed for all new tenders. We are proud to be part of a construction
sector peer to peer working group to share and discuss our approach to a
variety of topics including modern slavery. This year, in collaboration with
the anti-slavery charity Unseen UK and other contributors, we produced a
publicly available short video to be used in construction site inductions to
raise awareness of modern slavery and labour abuse throughout the industry.
Investing in the next generation
Our emerging talent programmes are award winning for inclusive recruitment and
our commitment to social mobility and diversity, helping us to provide a
selection of routes into Berkeley for a broad range of people from different
backgrounds.
We retain Gold membership of The 5% Club and are named in the top five
companies in the UK for graduates and apprentices to work for by The Job
Crowd. 8.7% of our employees are in 'earn and learn' positions, including more
than 100 apprentices, 50 graduates and 60 sponsored students studying towards
an accredited external qualification. These past 12 months, we participated in
nearly 250 careers events and hosted over 100 work experience placements to
help young people explore careers in the sector.
Supporting the work of the Berkeley Foundation
This year, the Berkeley Foundation has given more than £3.3 million to
support young people and their communities. The Foundation is deeply embedded
across the business, and more than half of our people chose to get involved in
its work over the last 12 months, including 1,900 volunteering hours and
£839k raised. Along with fundraising and donations, they give their time and
expertise to support the Foundation's partners through offering work
placements and job opportunities, holding careers days and sharing expertise
to help young people start their journey into employment.
We are delighted that the positive impact we are having across our
partnerships has been recognised through Berkeley and the Berkeley Foundation
being awarded the Philanthropy Award at the 2025 Better Society Awards.
- End -
Principal risks and uncertainties
Financial risks
The financial risks to which Berkeley is exposed include:
· Liquidity risk - The risk that the funding required for the Group to
pursue its activities may not be available.
· Market credit risk - The risk that counterparties (mainly customers)
will default on their contractual obligations, resulting in a loss to the
Group. The Group's exposure to credit risk is comprised of cash and cash
equivalents, loans to joint ventures and trade and other receivables.
· Market interest rate risk - The risk that Group financing activities
are affected by fluctuations in market interest rates.
· Other financial risks - Berkeley contracts all of its sales and the
vast majority of its purchases in sterling, and so has no significant exposure
to currency risk, but does recognise that its credit risk includes receivables
from customers in a range of jurisdictions who are themselves exposed to
currency risk in contracting in sterling.
Management of financial risks
Berkeley adopts a prudent approach to managing these financial risks.
· Treasury policy and central overview - The Board approves treasury
policy and senior management control day-to-day operations. Relationships with
banks and cash management are co-ordinated centrally as a Group function. The
treasury policy is intended to maintain an appropriate capital structure to
manage the financial risks identified and provide the right platform for the
business to manage its operating risks.
· Low gearing - The Group is currently financing its operations
through shareholder equity, supported by £337 million of net cash on the
Balance Sheet and debt facilities. This in turn has mitigated its current
exposure to interest rate risk.
· Headroom provided by bank facilities - The Group has £800 million
of committed credit facilities maturing in February 2029. This comprises a
Green Term Loan of £260 million and the Revolving Credit Facility of £540
million. In addition, the Group has listed debt in the form of Green Bonds to
the value of £400 million maturing in August 2031.
Berkeley has a strong working partnership with the six banks that provide the
facilities and this is key to Berkeley's approach to mitigating liquidity
risk.
· Forward sales - Berkeley's approach to forward selling new homes to
customers provides good visibility over future cash flows, as expressed in
cash due on forward sales which stands at £1.4 billion at 30 April 2025. It
also helps mitigate market credit risk by virtue of customers' deposits held
from the point of unconditional exchange of contracts with customers.
· Land holdings - By investing in land at the right point in the cycle,
holding a clear development pipeline in our land holdings and continually
optimising our existing holdings, we are not under pressure to buy new land
when it would be wrong for the long-term returns for the business.
· Detailed appraisal of spending commitments - A culture which
prioritises an understanding of the impact of all decisions on the Group's
spending commitments and hence its Balance Sheet, alongside weekly and monthly
reviews of cash flow forecasts at operating company, divisional and Group
levels, recognises that cash flow management is central to the continued
success of Berkeley.
Risk Description and Impact Approach to Mitigating Risk
Economic Outlook
As a property developer, Berkeley's business is sensitive to wider economic Recognition that Berkeley operates in a cyclical market is central to our
factors such as changes in interest rates, employment levels and general strategy and maintaining a strong financial position is fundamental to our
consumer confidence. business model and protects us against adverse changes in economic conditions.
Some customers are also sensitive to changes in the sterling exchange rate in Land investment in all market conditions is carefully targeted and underpinned
terms of their buying decisions or ability to meet their obligations under by demand fundamentals and a solid viability case.
contracts.
Levels of committed expenditure are carefully monitored against forward sales
Changes to economic conditions in the UK, Europe and worldwide may lead to a secured, cash levels and headroom against our available bank facilities, with
reduction in demand for housing which could impact on the Group's ability to the objective of keeping financial risk low to mitigate the operating risks of
deliver its corporate strategy. delivery in uncertain markets.
Production programmes are continually assessed, depending upon market
conditions. The business is committed to operating at an optimal size, with a
strong Balance Sheet, through autonomous businesses to maintain the
flexibility to react swiftly, when necessary, to changes in market conditions.
Political Outlook
Significant political events in the UK and overseas, may impact Berkeley's Whilst we cannot directly influence political events, the risks are taken into
business through, for example, supply chain disruption or the reluctance of account when setting our business strategy and operating model. In addition,
customers to make purchase decisions due to political uncertainty and, we actively engage in the debate on policy decisions.
subsequently, policies and regulation may be introduced that directly impact
our business model.
Regulation
Berkeley is primarily focused geographically on London, Birmingham and the
South-East of England, which limits our risk when understanding and
Adverse changes to Government policy on areas such as taxation, design determining the impact of new regulation across multiple locations and
requirements and the environment could restrict the ability of the Group to jurisdictions.
deliver its strategy.
The effects of changes to Government policies at all levels are closely
Failure to comply with laws and regulations could expose the Group to monitored by operating businesses and the Board, and representations made to
penalties and reputational damage. policy-setters where appropriate.
Berkeley's experienced teams are well placed to interpret and implement new
regulations at the appropriate time through direct lines of communication
across the Group, with support from internal and external legal advisors.
Land Availability
Understanding the markets in which we operate is central to Berkeley's
strategy and, consequently, land acquisition is primarily focused on
An inability to source suitable land to maintain the Group's land holdings at Berkeley's core markets of London, Birmingham and the South East of England,
appropriate margins in a highly competitive market could impact on the Group's markets in which it believes the demand fundamentals are strong.
ability to deliver its corporate strategy.
Berkeley has experienced land teams with strong market knowledge in their
areas of focus, which gives us the confidence to buy land without an
implementable planning consent and, with an understanding of local
stakeholders' needs, positions Berkeley with the best chance of securing a
viable planning consent.
Berkeley's land holdings mean that it has the land in place for its business
plan requirements and can therefore always acquire land at the right time in
the cycle.
Planning Process
The Group's strategic geographical focus and expertise place it in the best
position to conceive and deliver the right consents for the land acquired.
Delays or refusals in obtaining commercially viable planning permissions could
result in the Group being unable to develop its land holdings.
Full detailed planning and risk assessments are performed and monitored for
each site without planning permission, both before and after purchase. The
The current complex and evolving nature of planning policies amplifies the planning status of all sites is also reviewed at both monthly divisional Board
risk. meetings and Main Board meetings.
This could have a direct impact on the Group's ability to deliver its product The Group works closely with local communities in respect of planning
and on its profitability. proposals and maintains strong relationships with local authorities and
planning officers.
Berkeley has planning consents in place for its immediate business plan needs.
Retaining People
An inability to attract, develop, motivate and retain talented employees could Two priorities within Our Vision 2030 are designed to help recruit and retain
have an impact on the Group's ability to deliver its strategic priorities. a high calibre work force.
Failure to consider the retention and succession of key management could The first is 'Employee Experience' which places a specific focus on areas
result in a loss of knowledge and competitive advantage. including employee engagement and equity, diversity and inclusion (EDI). The
second focuses on 'Future Skills' looking at how we can create tangible
long-term change and inspire people to join the industry.
Succession planning is regularly reviewed at both divisional and Main Board
level. Close relationships and dialogue are maintained with key personnel.
Remuneration packages are benchmarked against the industry to ensure they
remain competitive.
Securing Sales
The Group has experienced sales teams both in the UK and within our overseas
sales offices, supplemented by market-leading agents.
An inability to match supply to demand in terms of product, location and price
could result in missed sales targets and/ or high levels of completed stock
which in turn could impact on the Group's ability to deliver its corporate
strategy. Detailed market demand assessments of each site are undertaken before
acquisition and regularly during delivery of each scheme to ensure that supply
is matched to demand in each location.
Design, product type and product quality are all assessed on a site-by-site
basis to ensure that they meet the target market and customer aspirations in
that location.
The Group's ability to forward sell reduces the risk of the development cycle
where possible, thereby justifying and underpinning the financial investment
in each of the Group's sites. Completed stock levels are reviewed regularly.
Liquidity
The Board approves treasury policy and senior management controls day-to-day
operations. Relationships with banks and cash management are co-ordinated
Reduced availability of the external financing required by the Group to pursue centrally as a Group function.
its activities and meet its liabilities.
The treasury policy is intended to maintain an appropriate capital structure
Failure to manage working capital may constrain the growth of the business and to manage the Group's financial risks and provide the right platform for the
ability to execute the business plan. business to manage its operating risks.
Cash flow management is central to the continued success of Berkeley. There is
a culture which prioritises an understanding of the impact of all decisions on
the Group's spending commitments and hence its Balance Sheet, alongside weekly
and monthly reviews of cash flow forecasts at operating company, divisional
and Group levels.
Mortgages
Berkeley has a broad product mix and customer base which reduces the reliance
on mortgage availability across its portfolio.
An inability of customers to secure sufficient mortgage finance now or in the
future could have a direct impact on the Group's transaction levels.
Deposits are taken on all sales to mitigate the financial impact on the Group
in the event that sales do not complete due to a lack of mortgage
availability.
Climate Change
The transition to a lower carbon economy and the physical effects of Climate Action is a strategic priority within our business strategy, Our
temperature changes could have wide ranging impacts on Berkeley, with these Vision 2030.
assessed using climate scenario analysis.
We have set science-based targets (SBTs) to drive action to mitigate our
Identified risks and opportunities relating to the transition to a lower impact. Energy efficiency requirements are in place covering our direct
carbon economy include: evolving planning and design requirements; technology activities. In addition, our scope 3 SBT commits us to build more efficient
evolution; increasing raw material costs; and demand supply imbalance. homes and work with our supply chain to reduce the embodied carbon within the
materials and services that we procure.
Risks relating to the physical impacts of climate change include: heat stress;
drought stress; subsidence; windstorm; and flood. Evolving requirements and technologies are monitored by our Group
Sustainability Team and operational committees, working with external experts
and industry working groups as necessary.
We consider climate change risks and incorporate measures such as sustainable
drainage systems (SuDS) to build resilience into our homes and developments.
Sustainability
Berkeley is aware of the environmental and social impact of the homes and Our Vision 2030 covers our approach to sustainability across three areas:
places that it builds, both throughout the development process and during communities, climate action and nature.
occupation and use by customers and the wider community.
Sustainability Standards are set at a Group level and set out the minimum
Failure to address sustainability issues could affect the Group's ability to Berkeley requirements for new developments and the operation of our
acquire land, gain planning permission, manage sites effectively and respond construction sites, divisional offices and sales suites. These are supported
to increasing customer demands for sustainable homes and communities. by more detailed procedures within our Sustainability Management System,
including a requirement for an Environmental Risk Register for each site and
the completion of at least quarterly site sustainability assessments by our
internal sustainability professionals.
Health and Safety
Berkeley considers this to be an area of critical importance. Berkeley's
health and safety strategy is set by the Board. Dedicated health and safety
teams are in place in each division and at Head Office.
Berkeley's operations have a direct impact on the health and safety of its
people, contractors and members of the public.
Procedures, training and reporting are all regularly reviewed to maintain high
standards and ensure that comprehensive accident investigation procedures are
A lack of adequate procedures and systems to reduce the dangers inherent in in place. Insurance is held to cover the risks inherent in large-scale
the construction process increases the risk of accidents or site-related construction projects.
catastrophes, including fire and flood, which could result in serious injury
or loss of life, or impact the business through financial penalties or
disruption to operations.
The Group continues to implement initiatives to improve health and safety
standards on site.
Product Quality and Customers Detailed reviews are undertaken of the product on each scheme both during the
acquisition of the site and throughout the build process to ensure that
product quality is maintained.
Berkeley has a reputation for high standards of build safety and quality in
its product.
The Group has detailed quality assurance procedures in place surrounding both
design and build to ensure the adequacy of build at each key stage of
construction.
Failure to deliver against these standards and wider development obligations
could expose customers to issues with their home and Berkeley to reputational
damage, reduced sales and increased cost to rectify issues.
Customer satisfaction surveys are undertaken on the handover of our homes, and
feedback is incorporated into the specification and design of subsequent
schemes.
Build Cost and Programme
Build costs are affected by the availability of skilled labour and the price A procurement and programming strategy for each development is agreed by the
and availability of materials, suppliers and contractors. divisional Board before site acquisition, whilst a further assessment of
procurement and programming is undertaken and agreed by the divisional Board
prior to the commencement of construction.
Declines in the availability of a skilled workforce, and changes to these
prices could impact on our build programmes and the profitability of our
schemes. Build cost reconciliations and build programme dates are presented and
reviewed in detail at divisional cost review meetings each month.
Our Vision 2030 strategy includes ongoing commitments to training and support
across both our employees and our indirect workforce.
Cyber and Data Risk
The Group acknowledges that it places significant reliance upon the Berkeley's systems and control procedures are designed to ensure that
availability, accuracy and confidentiality of all of its information systems confidentiality, availability and integrity are not compromised.
and the data contained therein.
Our Information Security Programme focuses primarily on the detection and
The Group could suffer significant financial and reputational damage prevention of security incidents and potential data breaches.
because of the corruption, loss or theft of data, whether inadvertent or via a
deliberate, targeted cyber-attack.
An IT Security Committee meets monthly to address all cyber security matters.
The Group operates multiple physical data centres supported by cloud-based
services thereby reducing centralised risk exposure. An IT disaster recovery
plan is regularly assessed.
The Group has cyber insurance in place to reduce any potential financial
impact.
Condensed Consolidated Income Statement
For the year ended 30 April 2025 2024
Notes £m £m
Revenue 2,486.5 2,464.3
Cost of sales (1,826.2) (1,819.8)
Gross profit 660.3 644.5
Net operating expenses (160.3) (164.8)
Operating profit 500.0 479.7
Finance income 3 55.8 53.9
Finance costs 3 (41.6) (41.9)
Share of results of joint ventures using the equity method 14.7 65.6
Profit before taxation for the year 528.9 557.3
Income tax expense 4 (146.9) (159.7)
Profit after taxation for the year 382.0 397.6
Earnings per share (pence):
Basic 5 371.8 373.9
Diluted 5 370.0 371.1
Condensed Consolidated Statement of Comprehensive Income
For the year ended 30 April 2025 2024
£m £m
Profit after taxation for the year 382.0 397.6
Other comprehensive income/(expense)
Items that will not be reclassified to profit or loss
Actuarial gain/(loss) recognised in the pension scheme 0.2 (0.7)
Total items that will not be reclassified to profit or loss 0.2 (0.7)
Other comprehensive income/(expense) for the year 0.2 (0.7)
Total comprehensive income for the year 382.2 396.9
Condensed Consolidated Statement of Financial Position
As at 30 April 2025 2024
Notes £m £m
Assets
Non-current assets
Intangible assets 17.2 17.2
Investment property 6 145.7 -
Property, plant and equipment 27.2 28.0
Right-of-use assets 4.2 4.3
Investments accounted for using the equity method 243.4 227.0
Deferred tax assets 87.3 116.9
525.0 393.4
Current assets
Inventories 7 5,052.2 5,283.9
Trade and other receivables 88.8 119.8
Current tax receivables 11.6 7.2
Cash and cash equivalents 8 1,015.2 1,192.0
6,167.8 6,602.9
Total assets 6,692.8 6,996.3
Liabilities
Non-current liabilities
Borrowings 8 (677.9) (660.0)
Trade and other payables (462.8) (683.6)
Lease liabilities (2.3) (2.3)
Provisions for other liabilities and charges (153.6) (140.7)
(1,296.6) (1,486.6)
Current liabilities
Trade and other payables (1,758.4) (1,878.0)
Lease liabilities (2.0) (2.1)
Provisions for other liabilities and charges (76.0) (69.1)
(1,836.4) (1,949.2)
Total liabilities (3,133.0) (3,435.8)
Total net assets 3,559.8 3,560.5
Equity
Shareholders' equity
Share capital 6.0 6.2
Share premium 49.8 49.8
Capital redemption reserve 25.5 25.3
Other reserve (961.3) (961.3)
Retained earnings 4,439.8 4,440.5
Total equity 3,559.8 3,560.5
Condensed Consolidated Statement of Changes in Equity
Capital
Share Share redemption Other Retained Total
capital premium reserve reserve earnings equity
£m £m £m £m £m £m
At 1 May 2024 6.2 49.8 25.3 (961.3) 4,440.5 3,560.5
Profit after taxation for the year - - - - 382.0 382.0
Other comprehensive income for the year - - - - 0.2 0.2
Purchase of own shares (0.2) - 0.2 - (129.7) (129.7)
Transactions with shareholders:
- Charge in respect of employee share schemes - - - - (2.6) (2.6)
- Deferred tax in respect of employee share schemes - - - - 1.2 1.2
- Dividends to equity holders of the Company - - - - (251.8) (251.8)
At 30 April 2025 6.0 49.8 25.5 (961.3) 4,439.8 3,559.8
At 1 May 2023 6.3 49.8 25.2 (961.3) 4,212.3 3,332.3
Profit after taxation for the year - - - - 397.6 397.6
Other comprehensive expense for the year - - - - (0.7) (0.7)
Purchase of own shares (0.1) - 0.1 - (72.3) (72.3)
Transactions with shareholders:
- Charge in respect of employee share schemes - - - - (0.8) (0.8)
- Deferred tax in respect of employee share schemes - - - - 2.5 2.5
- Dividends to equity holders of the Company - - - - (98.1) (98.1)
At 30 April 2024 6.2 49.8 25.3 (961.3) 4,440.5 3,560.5
Condensed Consolidated Cash Flow Statement
For the year ended 30 April 2025 2024
Notes £m £m
Cash flows from operating activities
Cash generated from operations 8 285.8 383.0
Interest received 57.4 50.4
Interest paid (29.6) (29.5)
Income tax paid (120.5) (170.5)
Net cash flow from operating activities 193.1 233.4
Cash flows from investing activities
Additions to investment property (2.0) -
Purchase of property, plant and equipment (1.0) (1.4)
Proceeds on disposal of property, plant and equipment 0.1 0.3
Dividends from joint ventures - 74.9
Movements in loans with joint ventures (1.1) (12.9)
Net cash flow from investing activities (4.0) 60.9
Cash flows from financing activities
Lease capital repayments (2.3) (2.3)
Purchase of own shares (129.7) (72.3)
Dividends to equity holders of the Company (251.8) (98.1)
Drawdown of borrowings 17.9 -
Net cash flow from financing activities (365.9) (172.7)
Net (decrease)/ increase in cash and cash equivalents (176.8) 121.6
Cash and cash equivalents at the start of the financial year 1,192.0 1,070.4
Cash and cash equivalents at the end of the financial year 1,015.2 1,192.0
1 General information
The Berkeley Group Holdings plc (the "Company") is a public limited company
incorporated and domiciled in the United Kingdom. The address of its
registered office is Berkeley House, 19 Portsmouth Road, Cobham, Surrey, KT11
1JG. The Company and its subsidiaries (together the "Group") are engaged in
residential-led, mixed use property development.
2 Basis of preparation
2.1 Introduction
These results do not constitute the Group's statutory accounts for the year
ended 30 April 2025 but are derived from those accounts. Statutory accounts
for 2024 have been delivered to the Registrar of Companies and those for 2025
will be delivered following the Company's Annual General Meeting. The external
auditor has reported on those accounts; its report was unqualified, did not
contain an emphasis of matter paragraph and did not contain any statements
under section 498 of the Companies Act 2006.
The Consolidated Financial Statements have been prepared in accordance with
the requirements of the Companies Act 2006 and with UK-adopted International
Accounting Standards. The statutory accounts have been prepared based on the
accounting policies and method of computations consistent with those followed
in the preparation of the Group's annual financial statements for the year
ended 30 April 2024, except in relation to investment property, for which the
following accounting policy applies during the current year:
- Land and buildings being developed or held to generate capital
appreciation and to earn rental income are recognised as investment
properties. Investment property is measured at cost less accumulated
depreciation and impairment losses. Once the asset is ready for use,
depreciation is provided to write off the cost of the assets to the residual
values over the useful life. Any gain or loss on the disposal of investment
property is recognised in profit or loss.
2.2 Going concern
The Directors have assessed the business plan and funding requirements of the
Group over the medium-term and compared these with the level of committed debt
facilities and existing cash resources. As at 30 April 2025, the Group had net
cash of £337 million and total liquidity of £1,537 million when this net
cash is combined with banking facilities of £800 million (committed to
February 2029) and £400 million listed bonds (which mature in August 2031).
Furthermore, the Group has cash due on forward sales of £1,403 million, a
significant proportion of which covers delivery for the next 18 months.
In making this assessment, consideration has been given to the uncertainty
inherent in future financial forecasts and where applicable, severe but
plausible sensitivities have been applied to the key factors affecting the
financial performance of the Group. The Directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for not less than 12 months from the date of approval of these
Consolidated Financial Statements. For this reason, it continues to adopt the
going concern basis of accounting in preparing its Consolidated Financial
Statements.
3 Net finance income
For the year ended 30 April 2025 2024
£m £m
Finance income 55.8 53.9
Finance costs
Interest payable on borrowings and non-utilisation fees (29.0) (29.2)
Amortisation of facility fees (2.2) (2.0)
Other finance costs (10.4) (10.7)
(41.6) (41.9)
Net finance income 14.2 12.0
Finance income predominantly represents interest earned on cash deposits.
Other finance costs represent imputed interest on land purchased on deferred
settlement terms and lease interest.
4 Income tax expense
For the year ended 30 April 2025 2024
£m £m
Current tax (including RPDT)
UK current tax payable (123.5) (166.0)
Adjustments in respect of previous years 7.4 6.4
(116.1) (159.6)
Deferred tax (including RPDT)
Deferred tax movements (28.3) 2.8
Adjustments in respect of previous years (2.5) (2.9)
(30.8) (0.1)
(146.9) (159.7)
The effective tax rate for the year is 27.8% (2024: 28.7%). Corporation tax is
calculated at the rate of 25% (2024: 25%) and residential property developer
tax (RPDT) at 4% (2024: 4%) on profits arising from residential property
development activities.
5 Earnings per share
Basic earnings per share are calculated as the profit for the financial year
attributable to shareholders of the Group divided by the weighted average
number of shares in issue during the year.
For the year ended 30 April 2025 2024
Profit attributable to shareholders (£m) 382.0 397.6
Weighted average no. of shares (million) 102.7 106.3
Basic earnings per share (pence) 371.8 373.9
For diluted earnings per ordinary share, the weighted average number of shares
in issue is adjusted to assume the conversion of all potentially dilutive
ordinary shares.
At 30 April 2025, the Group had two (2024: two) categories of potentially
dilutive ordinary shares: 0.4 million (2024: 0.7 million) share options under
the 2011 LTIP and 0.1 million (2024: 0.1 million) under the Restrictive Share
Plan.
A calculation is undertaken to determine the number of shares that could have
been acquired at fair value based on the aggregate of the exercise price of
each share option and the fair value of future services to be supplied to the
Group, which is the unamortised share based payments charge. The difference
between the number of shares that could have been acquired at fair value and
the total number of options is used in the diluted earnings per share
calculation.
For the year ended 30 April 2025 2024
Profit used to determine diluted EPS (£m) 382.0 397.6
Weighted average no. of shares (million) 102.7 106.3
Adjustments for:
Share options - 2011 LTIP 0.4 0.7
Share options - Restrictive Share Plan 0.1 0.1
Shares used to determine diluted EPS (million) 103.2 107.1
Diluted earnings per share (pence) 370.0 371.1
6 Investment property
Under
development
£m
Cost:
At 1 May 2024 -
Transfer from inventory 143.7
Additions 2.0
At 30 April 2025 145.7
Carrying amount:
At 1 May 2024 -
At 30 April 2025 145.7
During the year, £143.7 million of cost was transferred from inventory to
investment property in relation to assets under development given management's
decision to hold these assets in the Group's BTR platform to earn rental
income and for capital appreciation. Management use criteria to ensure that
judgement is exercised consistently on the appropriate point of cost transfer,
the main criteria being the formal decision to contract for the transfer of
ownership of the building under development to asset specific entities which
form part of the BTR platform.
As at 30 April 2025, the Directors have internally assessed the fair value of
investment property under development, which approximates cost.
7 Inventories
Year ended 30 April 2025 2024
£m £m
Land not under development 554.3 725.8
Work in progress: Land cost 1,692.9 1,715.3
Total land 2,247.2 2,441.1
Work in progress: Build cost 2,467.2 2,632.4
Completed units 337.8 210.4
Total inventories 5,052.2 5,283.9
During the year an amount of £143.7 million was transferred to investment
property from inventory. Further disclosure is set out in note 6 above.
8 Notes to the Condensed Consolidated Cash Flow Statement
For the year ended 30 April 2025 2024
£m £m
Net cash flows from operating activities
Profit for the financial year 382.0 397.6
Adjustments for:
Taxation 146.9 159.7
Depreciation 3.8 4.8
Loss on sale of property, plant and equipment 0.1 5.2
Finance income (55.8) (53.9)
Finance costs 41.6 41.9
Share of results of joint ventures after tax (14.7) (65.6)
Non-cash charge in respect of share awards (2.6) (0.8)
Changes in working capital:
Decrease in inventories 87.9 18.2
Decrease/(Increase) in trade and other receivables 29.4 (24.4)
Decrease in trade and other payables (332.8) (99.7)
Cash generated from operations 285.8 383.0
Reconciliation of net cash flow to net cash
Net (decrease)/ increase in net cash and cash equivalents, including bank (176.8) 121.6
overdraft
Movement in borrowings (17.9) -
Movement in net cash in the financial year (194.7) 121.6
Opening net cash 532.0 410.4
Closing net cash 337.3 532.0
Net cash
Cash and cash equivalents 1,015.2 1,192.0
Non-current borrowings (677.9) (660.0)
Net cash 337.3 532.0
Cash equivalents comprise amounts placed in fixed term deposit and notice
accounts which are all held in order to meet short-term cash requirements and
are subject to an insignificant risk of changes in value. Cash equivalents
include an amount of £150.8 million (2024: £210.2 million) that is
accessible between 90 and 120 days.
9 Alternative performance measures
Berkeley uses a number of alternative performance measures (APMs) which are
not defined by IFRS. The Directors consider these measures useful to assess
the underlying performance of the Group alongside the relevant IFRS financial
information. They are referred to as Financial KPIs throughout the results.
The information below provides a definition of APMs and reconciliation to the
relevant IFRS information, where required:
Net cash
Net cash is defined as cash and cash equivalents, less total borrowings. This
is reconciled in note 8.
9 Alternative performance measures (continued)
Net assets per share attributable to shareholders (NAVPS)
This is defined as net assets attributable to shareholders divided by the
number of shares in issue, excluding shares held in treasury and shares held
by the Employee Benefit Trust.
As at 30 April 2025 2024
Net assets (£m) 3,559.8 3,560.5
Total shares in issue (million) 107.4 114.7
Less:
Treasury shares held (million) (8.3) (8.7)
Employee Benefit Trust shares held (million) (0.1) (0.1)
Net shares used to determine NAVPS (million) 99.0 105.9
Net asset per share attributable to shareholders (pence) 3,595 3,363
Return on capital employed (ROCE)
This measures the profitability and efficiency of capital being used by the
Group and is calculated as profit before interest and taxation (including
joint venture profit before tax) divided by the average net assets adjusted
for debt/(cash).
As at 30 April 2025 2024
Operating profit (£m) 500.0 479.7
Share of joint ventures using equity method (£m) 14.7 65.6
Profit used to determine ROCE (£m) 514.7 545.3
Opening capital employed:
Net assets (£m) 3,560.5 3,332.3
Net cash (£m) (532.0) (410.4)
Opening capital employed (£m) 3,028.5 2,921.9
Closing capital employed:
Net assets (£m) 3,559.8 3,560.5
Net cash (£m) (337.3) (532.0)
Closing capital employed (£m) 3,222.5 3,028.5
Average capital employed (£m) 3,125.5 2,975.2
Return on capital employed (%) 16.5% 18.3%
9 Alternative performance measures (continued)
Return on equity (ROE) before tax
This measures the efficiency of returns generated from shareholder equity
before taxation and is calculated as profit before taxation attributable to
shareholders as a percentage of the average of opening and closing
shareholders' funds.
As at 30 April 2025 2024
Opening shareholders equity (£m) 3,560.5 3,332.3
Closing shareholders equity (£m) 3,559.8 3,560.5
Average shareholders' equity (£m) 3,560.2 3,446.4
Return on equity before tax:
Profit before tax (£m) 528.9 557.3
Return on equity before tax (%) 14.9% 16.2%
Cash due on forward sales
This measures cash still due from customers, with a risk adjustment, at the
relevant Balance Sheet date under unconditional contracts for sale. It
excludes forward sales of affordable housing, commercial properties and
institutional sales as well as forward sales within the Group's joint
ventures.
Future gross margin in land holdings
This represents management's risk-adjusted assessment of the potential gross
profit for each of the Group's sites, including the proportionate share of its
joint ventures, taking account of a wide range of factors, including: current
sales and input prices; the economic and political backdrop; the planning and
regulatory regimes; and other market factors; all of which could have a
significant effect on the eventual outcome.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR SFDFWUEISEFMRecent news on Berkeley group
See all newsREG - Berkeley Group Hldgs - Transaction in Own Shares
AnnouncementREG - Berkeley Group Hldgs - Director/PDMR Shareholding
AnnouncementREG - Berkeley Group Hldgs - Directorate Change
AnnouncementREG - Berkeley Group Hldgs - Final Results
AnnouncementREG - Berkeley Group Hldgs - Total Voting Rights
Announcement