(Alliance News) – Berkeley Group Holdings PLC on Friday reported a dip in annual profit despite broadly flat revenue, but hiked its dividend and set out leadership succession plans, with Chief Executive Rob Perrins set to become executive chair.
The Cobham, England-based housebuilder posted pretax profit of GBP528.9 million for the financial year ended April 30, down 5.1% from GBP557.3 million the prior year. Revenue edged up to GBP2.49 billion from GBP2.46 billion.
Despite the earnings decline, Berkeley raised its full-year dividend to 240 pence per share from 92p. It returned GBP381.5 million to shareholders over the period, up from GBP170.4 million the year before.
Shares in Berkeley were 8.9% lower at 3,780.00 pence in London on Friday morning.
The company said it was “encouraged by the tone” set by the government’s brownfield-led housing agenda and backed the target to build 1.5 million homes over the current parliament.
“We are positive about the future, with strong fundamentals supporting both the for-sale and rental elements of our business,” said CEO Rob Perrins. He pointed to falling mortgage rates, wage growth and a structural undersupply of homes in key regions like London.
Berkeley reaffirmed guidance for pretax profit of GBP450 million in financial 2026, with a similar outcome expected for financial 2027 based on current sales trends. Over 75% of its targeted sales for the year ahead are already secured.
The builder delivered 4,047 homes during the year, with 92% of them on brownfield sites, and said it invested around GBP580 million in affordable housing and infrastructure contributions.
Berkeley also confirmed plans to invest GBP5 billion over the next decade under its ‘Berkeley 2035’ strategy, which includes building 4,000 homes through its own build-to-rent platform. The company has already transferred four buildings into the platform, totalling 762 homes.
Separately, Berkeley announced that Chair Michael Dobson will step down at the annual general meeting on September 5. CEO Perrins will take over as executive chair, while current Chief Financial Officer Richard Stearn will become CEO. The company is seeking a new CFO.
Berkeley ended the year with net cash of GBP337.3 million, down from GBP532.0 million, and said its land holdings have a future gross margin of GBP6.72 billion. It also noted a 5% rise in private sales reservations over the year, though levels remain about 30% below those in financial 2023.
“Berkeley is determined to play a full part in helping government meet its growth ambitions,” Perrins said. “We have a clear plan for the next 10 years.”
By Eva Castanedo, Alliance News reporter
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