Berkeley names new CEO as profits beat forecasts

(Sharecast News) - Housebuilder Berkeley posted slightly better than expected annual earnings and unveiled its new chief executive amid hopes that falling interest rates and government building targets would boost sales. The company posted a 5% fall in pre-tax profit for the year to April at £530m compared to analysts' forecasts of £526.3m. New house sales rose to 4,047 from 3,521 in 2024.

Berkeley said it was confident about the future against a backdrop of falling interest rates and government plans to ramp up supply using brownfield sites.

The company also revealed that finance chief Richard Stern would become CEO, succeeding Rob Perrins, who will take on the role of executive chair as chairman Michael Dobson steps down in September after the group's annual general meeting.

"Berkeley is determined to play a full part in helping government meet its growth ambitions and has been greatly encouraged by the tone set by the brownfield-led housing agenda. Converting this into delivery is challenging particularly as it comes after a period of extreme cost inflation and complex regulatory change," the company said on Friday.

Reporting by Frank Prenesti for Sharecast.com