BERKELEY GROUP (BKG) – Construction
| Price: £36.58 +2.2% | P/E: 10.9x |
| Market Cap: £3.4bn | Yield: 3.6% |
London-focused appartment block builder Berkeley Group posted a positive update for the 1H to 31 October, although it’s somewhat upside-down as it starts with profits and NAV per share and there doesn’t seem to be a sales figure.
All the firm says is the value of private sales reservations was broadly in line with the first half of the last financial year, but activity has been more subdued since then due to speculation ahead of the budget so sales were down around 4% year-on year.
The firm has confirmed its pre-tax profit guidance for FY26 and FY27, although it hasn’t put a number on them and there is no analyst consensus on its website which is a bit of a fail.
Our View
Berkeley shares were right on their technical support at around £36 so a rally was on the cards, but as we’ve said before we’re in no rush to own housebuilders until there is solid evidence of an upturn.
Read the press release here: https://www.berkeleygroup.co.uk/investors
Disclaimer: This content is for information only and is not investment advice. Always do your own research before investing. Click here to see full disclaimer.
