Shares in the high-end housebuilder Berkeley Group Holdings PLC (LSE:BKG) have stormed back recently as company statements that all is on track have aligned with the uptick in the mood over housing generally.
A trading update in October reaffirmed earnings guidance for the next two years.
Berkeley expects to make profits of £1.05 billion in total, before tax, in the 2024 and 2025 fiscal years, with analysts expecting a split of £540 million for fiscal 2024 and £500 million for 2025.
A 50/50 split this year implies profits of £270 million pre-tax in next week’s interims against £285 million a year ago.
As well as its apartment blocks, Berkeley is known for its shareholder cash handouts and has promised £283 million, or 266p a share, to shareholders each year through September 2025.
Analysts expect the breakdown this year to be 66p a share in dividends, leaving up to 200p a share for buybacks.
Confirmation of these numbers plus stability returning to reservation rates, which have dropped by around a third, would be well received by the market.