Property developer and housebuilder Berkeley Group said on Wednesday that full-year pre-tax profits and earnings per share had both improved in the twelve months ended 30 April, reflecting the “stability” of its “uniquely long-term operating model” throughout an “exceptionally volatile” period.
Berkeley posted a 6.4% rise in pre-tax profits to £551.5m, a 23.1% surge in basic earnings per share to 417.8p, and a single percentage point increase in pre-tax return on equity to 17.5%. Revenues were up 6.6% at £2.38bn on the sale of 3,760 homes, compared to 2,825 in the prior year.
The FTSE 100-listed firm stated that the value of its underlying reservations was up 25% year-on-year and slightly ahead of pre-Covid levels, with cost inflation absorbed by sales prices.
Berkeley also highlighted that the value of its land holdings had shot up by £1.37m to £8.25m, with the net asset value of its portfolio rising by £2.06 per share to £28.18, but noted its net cash balance had fallen by £859.0m to £269.0m.
Chief executive Rob Perkins said: “These strong results reflect the stability of our uniquely long-term operating model throughout an exceptionally volatile period. They are underpinned by our portfolio of major brownfield regeneration projects, where patient and sustained investment is transforming disused land into distinct and highly sustainable mixed-use neighbourhoods within the UK’s most undersupplied markets.”
Reporting by Iain Gilbert at Sharecast.com
