Berkeley keeps FY profit targets after 'stable' start

(Sharecast News) - Housebuilder Berkeley has reiterated its full-year profit guidance after "stable" trading over the first four months of its financial year. The company said it is on target to hit the pre-tax earnings guidance of £450m for the 12 months to 30 April 2026, 85% of which is already secured through exchanged sales contracts, with a similar profit expected next year.

Net cash guidance was kept at £300m by the year-end, but may be slightly lower than this by the half-year stage due to the front-loading of shareholder returns - which have totalled £121m via share buybacks since 1 May.

At an annual general meeting on Friday, Berkeley addressed the government's "positive stance on planning reform".

However, it highlighted recent industry data that showed a continued decline in new housing starts in London to levels not seen since the financial crash of 2008-09 due to regulatory, economic and market factors.

"The Government is now increasingly focused on addressing the regulatory and viability challenges facing London's housing industry, which we are confident it can resolve through collaboration with the sector and applying the same single-minded determination to deliver the necessary change that has been so successful in driving its wider planning reforms," Berkeley said in a statement.

"The focus must be on de-regulation, resolving the challenges of the Building Safety Regulator and not increasing taxation over and above the Building Safety Levy introduced in the period; be this through the changes to Landfill Tax, currently being consulted upon, or further property taxation, as this will deter investment."