The Berkeley Group Holdings (LSE:BKG), the London-focused housebuilder, told shareholders ahead of today's annual general meeting, that it continues to operate within its four-year £1.4 billion pre-tax profit plan for the period covering 1 May to 31 August.
The housebuilder said enquiries remain good and stable, but customers without an immediate need to move continue to hold back amid ongoing economic and political uncertainty.
"The uncertainty and volatility in the market means that customers without an immediate need to move and readily available liquidity remain more cautious to commit," Berkeley said, adding the position mirrors that reported alongside its full-year results in June.
Berkeley expects pre-tax profits to be slightly weighted towards the first half of the current financial year, though it flagged that some buyers may defer purchases until after the October Budget and any election uncertainty clears.
The company returned £60 million to shareholders in the first four months of the year, buying back 1.7 million shares at an average price of £34.18, taking cumulative buybacks to £171 million against its £640 million target running to September 2030, ahead of the required run rate.
Net cash is expected to be around £250 million at the half-year, reflecting shareholder returns and continued investment in the core business and Build to Rent platform.
Berkeley also called on the Government to reform stamp duty for first-time buyers and downsizers, and to remove the 5% investor surcharge, arguing the current regime now depresses transaction volumes more than it raises in tax revenue.
News Intelligence what this means for the company
Berkeley reaffirmed its four-year £1.4 billion pre-tax profit plan at its AGM, but acknowledged that market conditions remain soft as buyers defer decisions ahead of the October Budget. The company is proceeding with shareholder returns—£60 million in buybacks over four months, putting it ahead of the required run rate toward its £640 million September 2030 target—while flagging that some purchases may shift into the second half of the financial year depending on political clarity.
The profit guidance reaffirmation is reassuring, but the repeated emphasis on buyer caution and potential deferrals suggests execution risk around timing within the four-year window. Net cash of ~£250 million at the half year provides flexibility, though it is materially below the £363 million reported at the prior year-end, reflecting both shareholder returns and continued investment.
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