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Highlights

  • BKG recorded FY25 pre-tax profit of GBP 528.9 million with net cash at GBP 337.3 million.
  • The company returned GBP 381.5 million to shareholders, targets GBP 450 million FY26 profit
  • Berkeley delivered over 4,300 homes, 92% on brownfield land, during the year.

The Berkeley Group Holdings plc (LSE: BKG) is a UK-based residential property developer. Its core focus is the regeneration of complex brownfield sites in urban centres, particularly in London and the South-East. The company is known for integrating housing with community infrastructure and aims to deliver sustainable, mixed-tenure neighbourhoods.

The company has reported a pre-tax profit of GBP 528.9 million for the financial year ended 30 April 2025, despite continued macroeconomic uncertainty and cost pressures in the UK housing market. Net cash stood at GBP 337.3 million after accounting for shareholder returns, construction investment, and land payments.

The company noted that over 75% of sales are secured for FY26, supporting its guidance of £450 million pre-tax profit for the coming year. Berkeley anticipates a similar profit level for FY27, assuming market conditions remain unchanged.

Transaction volumes showed a gradual improvement over the year, though the company acknowledged that consumer sentiment remains sensitive and that a broader recovery in the housing market will depend on economic stability.

Berkeley’s operations are focused on brownfield redevelopment in London, Birmingham, and the South-East of England. In FY25, the company delivered 4,047 homes (plus 282 through joint ventures), with 92% of units constructed on previously used urban land.

During the period, Berkeley added a major development site in Slough town centre and was named as the preferred development partner for the regeneration of the 148-acre Ladywood Estate in Birmingham. The latter could see delivery of more than 7,500 homes across refurbished and new construction.

The company reaffirmed its support for the UK Government’s housing-led growth strategy. Planning applications were submitted across its land portfolio during the year, and Berkeley is engaging with local and national authorities on reforms to planning processes, funding for affordable housing, and regulatory timelines.

The group advocated replacing the Community Infrastructure Levy (CIL) with bespoke Section 106 agreements for complex regeneration schemes. Berkeley argued that these customised agreements better reflect the infrastructure delivered on-site and could enable greater provision of affordable housing.

Berkeley's 10-year investment plan, Berkeley 2035, was launched in December 2024. It allows for GBP 5 billion of capital deployment across land acquisitions, shareholder returns, and the growth of its Build to Rent (BTR) platform. In FY25, the company spent GBP 80 million on BTR construction and transferred four BTR buildings to its operational platform.

Over the full year, Berkeley returned GBP 81.5 million to shareholders. This includes GBP 121 million scheduled for distribution by September 2025 to complete the 2011 shareholder return programme. A new GBP 640 million return target has been set for completion by September 2030.

The company’s net asset value per share increased by 7% to GBP 35.95, based on historic cost accounting. Its land holdings support GBP 6.7 billion of future gross margin, and five new planning consents were secured during the year.

On the operational front, the group-maintained efficiency with a 3% year-on-year reduction in operating costs despite inflationary pressures. Liquidity remained high, with GBP 1.5 billion in total capacity, including GBP 1.2 billion in undrawn borrowing facilities.

Berkeley reported that it supports an average of 27,000 UK jobs annually through direct employment and its supply chain. Approximately GBP 580 million in subsidies were allocated during FY25 to support affordable housing and other community commitments.

Environmental and sustainability measures continued to be embedded in the company’s projects. Fifty-seven developments now incorporate biodiversity net gain principles, targeting the creation or enhancement of over 1,200 acres of natural habitats. More than 60 embodied carbon assessments have been completed to date, with further efforts underway to reduce emissions through procurement and design.