The Berkeley Group (BKG) H1 2025 earnings summary

Executive summary

• Launched the 'Berkeley 2035' 10-year strategy focused on capital allocation, BTR platform, and land investment, aiming to capitalize on improved planning and urban brownfield opportunities.

• Delivered pre-tax profit of £275.1m for the six months ended 31 October 2024, with results in line with guidance and strong execution despite a volatile environment.

• Sales volumes are stable but about a third lower year-over-year; sales prices are resilient and build costs remain stable.

• Over £300m in subsidies provided for affordable housing and community benefits in the period.

• On track to meet FY25 and FY26 profit guidance and to complete the current shareholder returns programme.

Financial highlights

• Revenue rose 7.3% year-over-year to £1,278.9m, driven by higher completion volumes.

• Operating profit increased 11.4% to £258.4m; operating margin at 20.2% (up from 19.5%).

• Pre-tax profit was £275.1m, down 7.7% year-over-year; basic EPS decreased 5.8% to 186.8p.

• Net cash position at £474m, down from £532m at year-end, mainly due to £242m in shareholder returns.

• Net asset value per share increased by 2.5% to 3,447p.

Outlook and guidance

• On track to deliver at least £975m pre-tax profit across FY25 (£525m) and FY26 (£450m).

• Operating margins expected to remain in the 17.5%–19.5% range, with stable overheads.

• Net cash targeted between £250m and £400m by end of FY2026, depending on investment pace.

• Future gross margin in land holdings projected to stay above £6bn at April 2026.

• Targeting minimum £2bn shareholder returns over the next 10 years under Berkeley 2035.