Latest news with #RichardStearn
Daily Mail
15 hours ago
- Business
- Daily Mail
Berkeley reveals leadership shake-up as housebuilder plots £7bn strategy rethink
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.'
The Independent
15 hours ago
- Business
- The Independent
Berkeley Group announces leadership reshuffle amid housing pledge
Berkeley Group Holdings has reported end-of-year pre-tax profits of £528.9m and £337.3m in net cash. Rob Perrins, the current CEO, will transition to executive chairman, succeeding Michael Dobson, while Richard Stearn will become the new CEO. The company delivered over 4,000 homes, with 92 per cent on brownfield land, and distributed £251.8m in dividends to shareholders. Berkeley Group unveiled a new 10-year strategy, allocating £7bn in free cash flow and committing to return at least £2bn to investors. The group affirmed its commitment to the government's housing agenda, advocating for regulatory improvements to accelerate the delivery of 1.5 million affordable homes.
Forbes
16 hours ago
- Business
- Forbes
Berkeley's Shares Plummet As CEO Perrins Announces Move To Chairman
Photographer: Chris Ratcliffe/Bloomberg News of a personnel change at the top has caused shares in housebuilder Berkeley Group to sink in end-of-week trading. At £38.52 per share, the FTSE 100 company was last dealing 7.2% lower on Friday. Berkeley – which focuses on home construction in London and the South East of England – said that Rob Perrins will vacate his position as chief executive during the autumn. He will be replaced by chief financial officer Richard Stearn. Perrins – who has held the chief executive position since for 16 years – will take over the role of chairman after Michael Dobson steps down after Berkeley's AGM on 5 September. Berkeley commented that Perrins 'has overseen a period of exceptionally strong performance and value creation' since his appointment as CEO in 2009. It added that his replacement by Stearn 'will uphold Berkeley's longstanding tradition and preference for promoting from within which maintains the culture and values of the organization and provides continuity and stability for the company, our people and shareholders.' Alongside those boardroom changes, Berkeley announced full-year trading numbers that came in line with market forecasts. Revenues crept 0.9% higher to £2.5 billion, during the 12 months to April as the UK housing market remained under pressure. The FTSE firm delivered 4,047 new homes over the period, up from 3,521 previously. The builder's operating margin crept 0.6% higher, to 20.1%. Pre-tax profit ducked 5.1%, to £529 million, while net cash dropped to £337 million from £532 million the year before. Berkeley hiked the full-year dividend to 240p per share from 92p in financial 2025. Share buybacks totaled £130m, up from £72m. Chief executive Perrins commented that the full-year trading statement 'represents an excellent operational performance with highly disciplined execution and close control of costs.' He noted that 'we have added long-term value to the business, both in our land holdings and through our Build to Rent (BTR) platform, while returning £381.5 million to shareholders; a great start to the Berkeley 2035 strategy.' Under its 10-year growth program, Berkeley plans to create a market-leading BTR platform alongside delivering on pipeline sites and investing in new land. Perrins added that 'there is good underlying demand for our homes, with transaction volumes gradually improving over the course of the year.' But he added that 'consumer confidence remains finely balanced and a more meaningful recovery requires both improved sentiment and macroeconomic stability.' On Berkeley's full-year numbers, analyst Aarin Chiekrie of Hargreaves Lansdown commented that while 'sales continued to tick higher over the year,' he added that 'they remain well below the group's long-term targets, showing there's a lot of work still to be done.' He noted that 'a lot of this is outside of Berkeley's control though and will depend on further interest rate cuts and broader economic stability to help boost buyer confidence.' Chiekrie added that 'with over 75% of sales for the current year already locked in, Berkeley looks well-placed to hit its full-year pre-tax profit guidance of at least £450 million.'
The Independent
16 hours ago
- Business
- The Independent
Berkeley reveals leadership reshuffle as profits fall
Housebuilder Berkeley Group has unveiled an overhaul at the top as it posted lower annual profits and confirmed earnings would remain under pressure over the next two years. The group, which specialises in building homes in London, said chief executive Rob Perrins would become executive chairman when current chair Michael Dobson steps down in September after three years in the role. Chief financial officer Richard Stearn will then become chief executive, with the group saying his promotion 'will uphold Berkeley's longstanding tradition and preference for promoting from within'. The leadership reshuffle comes as Berkeley reported a 5.1% fall in pre-tax profits to £528.9 million for the year to April 30. It said it was on track for guidance for 2025-26 of £450 million in pre-tax profits, but this would mark a 15% drop year-on-year, with the group saying it expects a similar result for the following year too. The group had said it previously expected profits of 'at least' £450 million in 2025-26. Shares in the firm dropped more than 7% in morning trading on Friday. Mr Perrins said: 'There is good underlying demand for our homes, with transaction volumes gradually improving over the course of the year. 'However, consumer confidence remains finely balanced and a more meaningful recovery requires both improved sentiment and macroeconomic stability.' He added: 'We have adapted our business to current market conditions over the last 18 months, which results in the pre-tax profit guidance for 2025-26 of £450 million, with 2026-27 likely to be similar, based on current sales rates.'
