Berkeley see profits drop in ‘solid year’

Michael Lloyd

September 6, 2019

Berkeley Group sees a decline in profit before tax in 2019.

According to Tony Pidgley CBE, chairman of Berkeley Group, the group has sold more homes and has had “another year of solid performance”.

Berkeley delivered pre-tax earnings of £775.2m, down from £977m in 2018.

This is from the sale of 3,698 homes, 20 more than that of last year, at an average selling price of £748,000.

Berkeley has built 3,959 homes in 2018/19 and a total of 19,660 over the last five years, including joint ventures.

The housebuilder plans to deliver £3.3bn of pre-tax profits and a return of equity of over 15% by 2025.

Pidgley added: “This has been another year of solid performance for Berkeley, delivering financial results ahead of expectations while unlocking an increasingly valuable mix of social, economic and environmental benefits for the communities in which we work.

“I am extremely proud of these results, and the unique operating model which underpins them.

“Most of all, I am grateful and indebted to our superb staff and fantastic partners. The passion and care they bring to their work are what give the places we create their life, pride and enduring value.”

“We focus on large, complex and capital intensive regeneration opportunities in London, Birmingham and the South East of England, including a high proportion of former utility works and major industrial sites, which few other developers have the financial strength or development expertise to take on.

“Our approach is holistic, long-term and highly collaborative.

“We focus on the long-term strength and wellbeing of the local community and build strong local partnerships that maximise social value.

“This people-centred culture is what defines Berkeley’s brand and ensures we are the clear partner of choice within our sector.”

Berkeley’s portfolio has 69 sites under construction, 30 future sites and 99 total sites in land holdings.

In total, Berkeley has contributed £1.5bn as a subsidy for affordable housing and committed to additional payments of £0.6bn to help pay for a wide range of facilities and services for local communities.

During 2019, Berkeley made shareholder returns of £251.9m.

Berkeley started the year anticipating profits for 2018/19 would be approximately 30% lower than the year previous.

Rob Perrins, chief executive of Berkeley Group, commented: “This is therefore a strong set of results, reflecting robust trading in the year and the appeal of Berkeley’s developments.

“Berkeley’s purpose is to create homes, strengthen communities and improve people’s lives.

“Our sustained commercial success enables the valuable and enduring contributions we make to society, the economy and the natural world.”

Sign up to our daily email