Berkeley Group has confirmed its pre-tax profit target of £450 million for the current financial year, with a similar level expected for FY27, alongside a net cash position of around £300 million.
Like most of its peers, the housebuilder said trading conditions over the four months to the end of February remained difficult.
Being focused on the South East of England presents Berkeley with a fairly unique set of challenges compared to more diversified FTSE 350 peers, particularly in stagnant house prices and affordability issues.
Despite the soggy environment, the group said sales enquiries have held up, and underlying reservations have been recovering towards levels seen last summer before the Autumn Budget dampened activity.
“Berkeley reaffirmed its £450m pre-tax profit guidance for the current year and FY27, alongside a target of around £300m in net cash, signalling confidence in its balance sheet despite a challenging backdrop,” said Mark Crouch, market analyst for eToro.
“The broader market, however, remains fragile. Geopolitical tensions and macro-economic uncertainty have shaken consumer confidence, although Berkeley notes that sales enquiries remain solid and reservation levels are beginning to recover.
“Like many developers, it is also navigating regulatory headwinds, with Building Safety Regulator delays slowing the flow of new homes. For now, Berkeley appears focused on steady cash generation and riding out the bumps until calmer conditions return.”
Berkeley flagged the deteriorating situation in the Middle East as a fresh risk to sentiment, warning that inflation could prove stickier than hoped and interest rates may stay higher for longer.
On shareholder returns, the group has now handed back £330 million since launching its Berkeley 2035 strategy in December 2024, including £191 million of buybacks in the current year — ahead of schedule. A further £250 million has gone towards settling land creditors, while investment has continued into Berkeley Living, the group’s build-to-rent platform.
Looking beyond 2027, Berkeley said it would prioritise cash generation, balance sheet strength and shareholder returns over expansion, while optimising its land bank and pressing ahead with its BTR strategy.