8th Dec 2023 09:11
(Correcting headline to say profit grew instead of revenue)
(Alliance News) - Berkeley Group Holdings PLC on Friday reported bottom-line progress in its interim period.
The Cobham, Surrey-based housebuilder said in the six months to October 31, pretax profit climbed 4.6% year-on-year to GBP298.0 million from GBP284.8 million, as net operating expenses fell 11% to GBP79.7 million from GBP89.9 million the year before.
Revenue slipped 0.8% to GBP1.19 billion from GBP1.20 billion.
Berkeley more than doubled its interim dividend to 59 pence per share from 21p per share a year ago.
Looking ahead, the company said it is targeting at least GBP1.5 billion in pretax profit over the current and next two financial years.
"In the six months, we have delivered 1,785 new private and affordable homes, of which 87% are on brownfield land, and provided over GBP250 million in subsidies to deliver affordable housing and commitments to wider community and infrastructure benefits, more than 100% of the post-tax profit generated in the period," said Chief Executive Rob Perrins.
However, he added that uncertainty caused by planning, tax, and regulatory regimes is making urban regeneration increasingly difficult to progress.
The firm will remain focused on cutting costs and investing in work in progress. "We are ready and able to deploy capital into new opportunities once the market and regulatory cycles inflect and returns can be earned commensurate with the level of upfront investment and operational risk we undertake," Perrins explained.
Shares in Berkeley were down 2.0% at 4834.00 pence each in London on Friday morning.
By Sabrina Penty, Alliance News reporter
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