Berkeley Group claims it is on track to achieve its steady pre-tax profits for the full year ending 30 April 2025, following its latest Trading Update.
Berkeley predicts it is on target to achieve its pre-tax earnings guidance of £525 million, 90 per cent of which the group claims is already secured through exchanged sales contracts.
This follows what the UK property developer and house-builder said, has been a period of stable trading over the first four months of the year.
Berkeley’s latest full year results showed pre-tax profits of £557.3 million, down 7.7 per cent from FY2023 at £604.0 million.
Berkeley increased its pre-tax earnings guidance for FY2025 by five per cent in its 2024 results to £525 million due to “a strong order book and has already secured 80 per cent of its sales for next year.”
Pre-tax profits for the year are expected to be weighted towards the first half, as was the same for the year ended 30 April 2024.
As a result, the group expects its operating margin to be slightly ahead of its long-term range (17.5 per cent to 19.5 per cent) for this period.
In 2024, Berkeley delivered 3,500 new private and affordable homes, of which 87 per cent were on regenerated brownfield land, and provided over £370 million in subsidies to deliver affordable housing.
Net cash at 31 October 2024 is predicted to be around £450 million (30 April 2024: £532 million) following shareholder returns of £229 million in the first half, including the £184 million proposed special dividend that is subject to approval by shareholders.
In July, Berkeley and contractor Statom Group began the next phase of work to deliver 200 new homes on Oval Village and transform a former gasworks.
Newham Council also backed Berkeley’s plans for the regeneration of seven Grade II Listed gasholders to bring 2,000 new homes, in June.
In a statement the developer expressed support for the Government’s proposed changes to the planning system and its pledge to deliver 1.5 million new homes across this Parliament.
Berkeley said: “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.”
“This ambitious plan from the new Government brings with it a number of changes to the operating environment, the impact of which Berkeley will fully evaluate ahead of updating the market with its Interim Results in December.”
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