Berkeley Group shares were higher on Wednesday after the housebuilder revealed an improving cash position despite a very difficult property market.
Profits were lower, but investors seem more concerned with the cash position and the return of cash to shareholders, and shares were 4% higher at the time of writing.
Berkeley Group has posted pre-tax profit of £451.4 million for the year to 30 April 2026, down from £529 million the year before but broadly in line with expectations, as the housebuilder navigated a tough market while growing its net cash position to £363 million.
The FTSE-listed developer completed 4,203 homes during the period, almost entirely on brownfield land, with net asset value per share rising 9% to £39.17. Share buy-backs totalled £233 million, up sharply from £130 million the prior year.
Mark Crouch, market analyst for eToro, said: “While Berkeley’s profits came in slightly below expectations, net cash actually increased to £363 million. That financial resilience is giving management the flexibility to step up share buy-backs when the stock trades below its underlying asset value, a signal of confidence in the long-term prospects of the business.”
“With higher build costs, cautious buyers, elevated interest rates and an increasingly complex tax and regulatory environment weighing on activity levels, the economic backdrop is far from perfect. Overall, the economic outlook remains unusually difficult to read. Inflation appeared to be heading back into its box, yet uncertainty over whether tensions in the Middle East have truly eased, mixed signals from the UK economy, and growing debate over the future direction of interest rates. For prospective homebuyers, that uncertainty can be enough to delay moving decisions.”