Berkeley Group on Track for Pre-Tax Earnings Target

Berkeley Group Holdings (LON: BKG) announced Friday that its trading performance for the first four months of the fiscal year has remained steady.

The company said it is confident in its ability to achieve its pre-tax earnings guidance of £525 million for the full year ending 30 April 2025.

The housebuilder added that approximately 90% of the anticipated earnings have already been secured through exchanged sales contracts, providing a solid foundation for the year ahead.

While pre-tax profits are expected to be weighted towards the first half, similar to last year, the operating margin is projected to slightly exceed the company's long-term range of 17.5% to 19.5% during this period.

Berkeley also confirmed its net cash position on 31 October 2024 will be around £450 million, following shareholder returns of £229 million in the first half.

This includes the proposed special dividend of £184 million, which is subject to shareholder approval at today's Annual General Meeting.

Furthermore, the company expressed its support for the proposed changes to the planning system and the UK government's goal of delivering 1.5 million new homes during this Parliament.

“Achieving this ambition requires a change of attitude and a refreshed partnership approach to allow developments, that are currently stalled, to come forward and Berkeley is committed to playing its full part in delivering the new homes the Country needs,” said the company.
 
However, they cautioned that the “ambitious plan from the new Government brings with it a number of changes to the operating environment.” As a result, Berkeley said it will fully evaluate the potential changes ahead of updating the market with its Interim Results in December.