Berkeley Group Holdings PLC (LSE:BKG) reported a 7.8% fall in first half revenue and 7.7% fall in profits, which it said put it "on track" to hit full-year targets.
The FTSE 100 housebuilder reported pre-tax profits of £254 million for the six months to 31 October 2025, down from £275.1 million a year earlier, despite a 6% fall in operating costs.
Revenues shrank to £1.18 billion from £1.28 billion, as 2,022 homes were sold across London and the South-East, compared to 2,103 last time, with the average selling price falling to £570,000 from £600,000, which was said to reflect the mix of properties sold.
Net cash stood at £342 million after returning £132 million to shareholders through share buy-backs during the period.
Executive chair Rob Perrins called it a "highly creditable performance [that] reflects exceptional operational execution in a very challenging macro-economic and regulatory environment".
The group reiterated its pre-tax profit guidance of £450 million for the full year and a similar level for the 2027 financial year.
Berkeley said it will prioritise shareholder returns, with £132 million of returns completed by September 2025 as part of its 10-year Berkeley 2035 strategy. A further £11 million has been allocated toward its next target of £640 million in returns by September 2030.
“Based on our current financial position and operational focus, coupled with the dislocation in the share price, we will prioritise shareholder returns in this environment,” Perrins added.
Berkeley’s build-to-rent arm, Berkeley Living, is scheduled to launch in early 2026, with its first development welcoming residents in Spring. The platform now includes 1,122 homes following two additional site transfers.