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.”
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