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Real Estate

Berkeley Group says trading 'stable' and on target for earnings outlook

Berkeley Group Holdings PLC (LSE:BKG) launched a new £640 million cycle of shareholder returns to be paid by 2030 and said trading has been "stable" in the first four months of its financial year.

In a statement ahead of its annual shareholder meeting on Friday, the FTSE 100-listed housebuilder said it is on target to achieve pre-tax earnings guidance of £450 million for the year to 30 April 2026.

It said 85% of earnings were already secured through exchanged sales contracts, with pre-tax profits expected to be weighted fairly evenly between the first and second half of the year.

A similar level of profit in the following year is also still anticipated, also in line with the reduced guidance given at its results in June.

Berkeley said £121 million of share buybacks had been distributed in the period, completing its 2011 shareholder returns programme, and delivering the first £260 million under its £2 billion 2035 strategy. The next milestone will be a further £640 million by September 2030.

Cash generation is expected to leave net cash of around £300 million in the coffered by next April,

The group shares some thoughts on the government’s planning reform agenda, calling for a focus on deregulation, as industry data shows that new housing starts in London slumped to levels not seen since the global financial crisis.

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