Berkeley Group Holdings (LSE:BKG) reaffirmed its target of £1.4 billion in pre-tax profit over four years, while telling shareholders at its Annual General Meeting that trading since May has been affected by the prolonged Middle East conflict and UK political uncertainty.
The company said enquiry levels have remained stable, although prospective buyers continue to exercise caution. Berkeley is re-phasing its strategy and plans to reduce production by approximately 25% over four years, with an increased focus on cash generation.
For the current financial year, the group expects earnings to be slightly weighted towards the first half.
Berkeley returned £60 million to shareholders through share buybacks during the first four months of the financial year. The company said it is ahead of the required run rate for its target of returning £640 million to shareholders by 2030.
The housebuilder expects to have approximately £250 million of net cash at the half-year point.
Berkeley also called on the UK government to introduce targeted stamp duty reductions for first-time buyers, downsizers and investors. The company additionally advocated consistent implementation of planning reforms in London, saying these measures would support increased housing delivery.
More about The Berkeley Group Holdings
The Berkeley Group Holdings plc is a UK housebuilder focused primarily on residential development in London and the South East.
The company develops private homes, build-to-rent properties and affordable housing, with a significant portion of its activities involving large-scale brownfield regeneration projects.
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