The Berkeley Group Holdings PLC (LSE:BKG) bemoaned the current planning system, as it backed profit guidance despite reporting a 35% fall in reservations reflecting the “elevated macro-economic and political volatility.”
In a trading update ahead of today’s AGM, the housebuilder said it expects to deliver pre-tax profit of at least £1.05 billion across the current and next financial years; likely to be weighted slightly to the financial year 2024.
Profits for the current year are expected to be split broadly evenly between the first and second half, it said.
Berkeley reported enquiries have stayed at similar levels over the last four months, but the value of underlying private sales reservations is some 35% below last year's rate.
Cancellation rates remain stable.
The firm said it had a strong opening forward sales position, with over 90% of financial 2024 revenue exchanged, and it anticipates cash due on forward sales to be around £2 billion at October 31.
“We remain on track to be working capital neutral over the course of this and the next financial year,” it said.
But Berkeley said it had not bought any land in the period and would only invest very selectively in new opportunities.
“The complexity and protracted nature of the current planning system and lack of clarity surrounding certain regulatory changes affecting our sector, at a time of considerable uncertainty for the UK economy with persistent high inflation and interest rates, continues to deter investment into brownfield regeneration and the wider housebuilding sector,” it stated.
Berkely said it was on track to deliver the next annual shareholder return of £282.7 million (currently £2.66 per share) by September 30, 2024, through a combination of dividends and share buy-backs, with at least £0.66 per share of the annual return made via dividends.