Berkeley reveals leadership shake-up as housebuilder plots £7bn strategy rethink

Daily Mail​

11 hours ago

Berkeley Group has revealed major leadership changes and a new 10-year strategy to lift the housebuilder after profits came under pressure last year.
The housebuilder said on Friday that chief executive Rob Perrins, who has held his post since 2009, will replace Michael Dobson as its executive chairman following its annual general meeting on 5 September.
Richard Stearn will succeed Perrins, having been Berkeley's chief financial officer for the past decade.
After working at accounting giant PwC, Stearn joined Berkeley in 2002 as its financial controller, before departing nine years later to go and work for Quintain Estates and Development, a property developer in Wembley.
His promotion to CEO comes as Berkeley embarks on a 10-year strategy called 'Berkeley 2035' to grow the business.
The Surrey-based group intends to deploy £7billion of capital, with £2.5billion going towards land investment, £1.2billion on build-to-rent, and £2billion for shareholder returns.
It told shareholders the strategy will help the UK Government achieve its goal of constructing 1.5 million new properties over the current parliament.
Berkeley said it was 'very conscious of the complexity of today's operating environment in our industry, the role of housing in the government's growth agenda and the importance of the current executive team to maintaining Berkeley's unique business model and culture.'
Britain's housebuilding sector has struggled over the past few years with elevated interest rates, housing unaffordability, and the rising cost of raw materials.
For the year ending April 2025, Berkeley reported that its pre-tax profits decreased by 5.1 per cent to £528.9million, although this was above the company's forecast of £525million.
Turnover increased by 0.9 per cent to £2.49 billion, with higher commercial revenue and land sales compensating for the decline in residential sales.
Berkeley sold over 500 more homes in London and South East England during the period - 4,047 versus 3,521 in the prior 12 months - but these properties sold for an average of £593,000, compared to £664,000 the previous year.
For the coming year, the firm expects its pre-tax profits to shrink significantly to £450million.
Following the release of its results, Berkeley shares slumped 8.2 per cent to £37.78 on Friday morning, making them the FTSE 100's biggest faller by some distance.
Adam Vettese, market analyst at eToro, suggested that the drop could be due to a 'changing of the guard at the top level'.
He added: 'Regulatory costs as well as stickier interest rates, which are softening demand, could pose further challenges.'