Berkeley Group’s full-year results beat estimates

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Jun 23, 2021
  • Berkeley Group says its profit and revenue increased in fiscal 2021.
  • The property developer to return £450 million to shareholders this year.
  • Berkeley Group is currently about 1.5% down on the intraday chart.

Berkeley Group Holdings plc (LON: BKG) published its full-year financial results on Wednesday that topped analysts’ estimates. In his statement on Wednesday, CEO Rob Perrins said:

“Today’s strong results reflect the consistent and focused application of Berkeley’s uniquely long-term business model, the quality of the homes and places we create and our proficiency in adapting to the challenges of the pandemic, sustaining production throughout.”

Berkeley Group’s full-year financial results

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Berkeley reported £2.20 billion of revenue in fiscal 2021. In comparison, its revenue was capped at £1.92 billion in the previous financial year. Pre-tax profit for the year that concluded on 30th April printed at £518.1 million versus the year-ago figure of £503.7 million.

According to FactSet, experts had forecast £2.02 billion of full-year revenue for Berkeley and £514.1 million of pre-tax profit. Berkeley’s pre-tax profit had slipped 17% in the first half.

In fiscal 2022, Berkeley Group said, it plans on returning £450 million in total to shareholders that translates to £3.70 per share. The British property developer delivered 2,825 homes in the recently concluded year at an average price of £700,000. In the previous financial year, it had delivered 2,723 homes at an average price of £677,000.

In separate news from the United Kingdom, AstraZeneca said its vaccine was effective against the Delta and Kappa variants of the Coronavirus.

CEO Perrins says London will flourish again

In London, Berkeley built only 10% of new homes in fiscal 2021. But CEO Perrins expressed confidence that the capital would gradually recover in the post-pandemic world.

“This is a very strong platform from which to continue serving the most undersupplied housing markets in the country once the disruption caused by the pandemic dissipates and London is again able to flourish as a global destination for culture, entertainment, education, recreation and business. London is one of the world’s greatest open and welcoming cities, and it has been wonderful to witness its vibrancy returning over recent weeks, with the gradual lifting of restrictions. People thrive on its energy, opportunity and unparalleled attributes,” Perrins added.

Berkeley Group is currently about 1.5% down on the intraday chart. The stock is now exchanging hands at £45.50 per share versus a year-to-date low of £40.53 per share in the last week of February. The Cobham-based company is valued at £5.53 billion and has a price to earnings ratio of 16.28.

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