Berkeley Group Shares Under Pressure After Cautious AGM Trading Update

Berkeley Group (LON: BKG) shares are under pressure, down around 1% on Thursday as the London-focused housebuilder used its Annual General Meeting to warn that buyers may delay purchases until after October’s Budget.

The stock, which has slid from around 16% year-to-date, continues to trade near the lower end of its recent range following the update.

In its trading statement covering the four months to 31 August, Berkeley said sentiment and core economic indicators had weakened further since the start of its financial year, citing the prolonged Middle East conflict and ongoing UK political uncertainty.

The company said enquiry levels remained “good and stable” but that cautious buyers without an immediate need to move continued to hold back, a pattern consistent with June’s full-year results.

Berkeley reiterated its four-year £1.4 billion pre-tax profit plan, unveiled in April alongside a 25% cut to planned production, and said profits would be slightly weighted towards the first half of the current year.

The group also confirmed it remains ahead of schedule on shareholder returns, having bought back £171 million of stock against a £640 million target running to 2030.

Investors appeared to focus on the cautious near-term outlook rather than the reaffirmed profit guidance, with the shares extending a decline that has taken the stock well below levels seen just a week earlier, as market participants weigh the impact of prolonged uncertainty on transaction volumes.