Shares of the FTSE 100-listed The Berkeley Group Holdings PLC (GB:BKG) declined by 1.7% as of writing after the company reported lower H1 profits for FY25. The company announced a pre-tax profit of £275.1 million for the first half, marking a 7.7% drop from the previous year. Nonetheless, Berkeley highlighted signs of market recovery following a challenging period for UK developers and reaffirmed its profit outlook for FY25 and FY26.
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Berkeley is among the top housebuilders in the UK, specializing in redeveloping former industrial sites.
Berkeley Maintains Annual Guidance amid Market Recovery
Moving ahead, Berkeley remains confident in meeting its pre-tax profit targets of £525 million for FY25 and at least £450 million for FY26. Moreover, it remains on track to fulfill the final annual payment of £283 million under the current shareholder returns program by September 30, 2025. This includes an interim dividend of 33p per share to be paid in March 2025.
Speaking of the overall housing market, the company is confident in the UK government’s goal of delivering 1.5 million new homes over the next five years and is committed to playing a key role in achieving this target.
Berkeley Group Unveils Ambitious “Berkeley 2035“
Berkeley unveiled its ambitious long-term plan, “Berkeley 2035.” This plan aims to strengthen the company’s financial stability by focusing on land investments, expanding its build-to-rent (BTR) platform, and driving long-term value for its shareholders. The company expects to generate around £7 billion in free cash flow over this period, which will be allocated to a mix of these three factors.
In H1 FY25, the company delivered 2,103 homes, along with 177 in joint ventures, compared to 1,785 homes and 204 in joint ventures in 2023. Meanwhile, revenue grew by 7.3% year-over-year to £1.28 billion.
Is Berkeley Group a Buy?
On TipRanks, BKG stock has received a Hold rating based on five Holds, one Buy, and two Sell recommendations. The Berkeley share price target is 4,769.46, which is 15.8% above the current trading levels.
