Homes
Communities
People
2024 Annual Report
Who we are
Berkeley builds homes and neighbourhoods
across London, Birmingham and the
South of England.
Our purpose
Our passion and purpose is to build quality
homes, strengthen communities and make
a positive difference to people’s lives.
We use our sustained commercial success
to make valuable and enduring contributions
that benefit all of our stakeholders.
Homes
Communities
People
Fulfilling our
purpose through
brownfield
regeneration
We believe reviving
brownfield land is the
most sustainable way
to solve the housing
crisis, strengthen left
behind places and
breathe new life into
our towns and cities.
We are the only
major UK homebuilder
focused on regenerating
brownfield land, as we
take forward 32 of the
UK’s most challenging
urban sites.
Oval Village
Contents
See our portfolio
pages 10 to 11
01–103 | Strategic Report
01 | Who we are
02 | Highlights of the year
04 | Delivering our purpose through
brownfield regeneration
10 | Brownfield regeneration at scale
12 | Our business model
14 | Creating long-term
sustainable value
16 | Chairman’s statement
18 | Chief Executive’s review
26 | Market overview
29 | Trading and financial review
32 | Key Performance Indicators (KPIs)
34 | Responsible business at a glance
36 | Our Vision 2030 strategy overview
38 | Our Vision 2030 progress
58 | Our stakeholders
58 | Section 172(1) Statement
66 | ESG performance
68 | Climate-related disclosures
89 | Non-financial and sustainability
information statement
90 | How we manage risk
93 | Viability statement
94 | Risks
104–164 | Corporate Governance
104 | Chairman’s introduction
106 | Board of Directors
110 | Board leadership and
company purpose
112 | Our cultural framework
114 | Stakeholder engagement
117 | Division of responsibilities
120 | Nomination Committee report
126 | Audit Committee report
130 | Directors’ remuneration report
157 | Directors’ report
165–232 | Financial Statements
165 | Independent Auditor’s Report
182 | Consolidated Income Statement
182 | Consolidated Statement
of Comprehensive Income
183 | Consolidated Statement
of Financial Position
184 | Consolidated Statement
of Changes in Equity
185 | Consolidated Cash Flow
Statement
186 | Notes to the Consolidated
Financial Statements
224 | Company Balance Sheet
225 | Company Statement of
Changes in Equity
226 | Notes to the Company
Financial Statements
231 | Five year summary
232 | Financial diary
232 | Registered office and advisors
Cover images: The Green Quarter, Ealing
Kidbrooke Village, Greenwich
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
Berkeley Group 2024 Annual Report | 01
Highlights of the year
£557m
2023 | £604m
Profit before tax
16.2%
2023 | 18.7%
Pre-tax return on equity1
£532m
2023 | £410m
Net cash
£33.63
2023 | £31.01
Net asset value per share1
£1,701m
2023 | £2,136m
Cash due on forward sales1
£6,929m
2023 | £7,629m
Future gross margin
in land holdings1
See our trading and financial
review on pages 29 to 31
3,521
homes delivered (plus 406 in
joint ventures), including some
10% of London’s new private
and affordable homes
Homes delivered
63%
homes had zero defects reported
by customers, compared to just
5% across the industry (HBF,
March 2024)
Quality
Homes
Financial highlights
87%
homes delivered during the
year are on regenerated
brownfield land
Brownfield
Horlicks Quarter, Slough
1 Read more about our alternative
performance measures on pages 214
to 216 (note 2.24)
32
long-term regeneration sites,
of which 27 are under
construction
Regeneration
+80.2
Net Promoter Score (NPS)
from our customers, compared
to an industry average of 44
(HBF, March 2024)
Customers
£370m
of subsidies provided to
deliver affordable housing and
committed to wider community
and infrastructure benefit
Community benefit
>580
acres of new or measurably
improved natural habitats across
56 biodiversity net gain sites
Regreening cities
Accreditations
See our ESG performance on
pages 66 to 67
Communities
People
9.5%
of our employees are graduates,
apprentices or sponsored
students
Employees
26,000
UK jobs supported per annum
over the last five years, an
average of 6.6 jobs per
completed home
Workforce
CDP Climate Change
2023
A rated
ISS ESG Corporate Rating
2024
Prime status
MSCI ESG Rating
2023
AAA
S&P Global Corporate
Sustainability Assessment
2023
Sustainability Yearbook
Member and Industry Mover
Sustainalytics ESG Risk Rating
2024
Low risk rating
FTSE4Good
Listed since 2003
Prince of Wales Drive, Battersea
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
02 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 03
Creating quality
homes where
they are
needed most
Our urban regeneration
sites deliver thousands
of high quality private
and affordable homes
in and around our towns
and cities.
87%
homes delivered
on brownfield land
DELIVERING OUR PURPOSE THROUGH BROWNFIELD REGENERATION
3,927
homes delivered
(including joint ventures)
Clarendon, Haringey
Every neighbourhood we create is
individually designed and built with
great care and attention to detail.
This is the only way to create places
of lasting quality and benefit.
All of our homes, private and
affordable, are tenure blind by
design and delivered to the same
high quality and safety standards.
Our focus on quality drives all
of our teams on a daily basis
from the initial planning of
each development, through to
detailed design, construction
and completion. We are proud to
outperform industry both in terms
of the quality of the homes and the
service received, as rated by our
customers.
63%
homes had zero defects
reported by customers,
compared to 5% across
industry (HBF, March 2024)
Poplar Gasworks
See more on Poplar Gasworks
on page 11
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
Berkeley Group 2024 Annual Report | 05
04 | Berkeley Group 2024 Annual Report
Creating
strong and
connected
communities
We focus on challenging
urban regeneration
sites, working closely
with local people and
councils to stitch left-
behind places back into
their local fabric. This
means we directly invest
into disadvantaged
communities and help
tackle the inequalities
and challenges facing
these places.
>580
acres of new or
improved natural
habitats being created
DELIVERING OUR PURPOSE THROUGH BROWNFIELD REGENERATION
Royal Arsenal Riverside, Woolwich
White City Living
We are long-term placemakers.
This means patiently transforming
underused land to create green and
welcoming neighbourhoods where
people of all backgrounds can enjoy
a great quality of life.
Community engagement is key to
our approach and we work hard to
understand and engage with the
communities around our sites. Then
we work in partnership to design
places which reflect local priorities
and character.
Our neighbourhoods are safe,
low carbon and rich in nature and
biodiverse. They provide private and
affordable homes, beautiful public
spaces and the amenities a healthy
community needs.
Bringing neighbours together
is a priority for us and we use
Community Plans to help people
mix, meet, have fun, support
each other and get involved in
community life. This helps to create
more friendly, happy and resilient
places.
£370m
of affordable housing
subsidies and community
infrastructure contributions
25
Community Plans being
delivered in partnership
with our residents and
neighbours
White City Living
Celebrating 15 years of partnership and
regeneration at Woodberry Down, Hackney
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
Berkeley Group 2024 Annual Report | 07
06 | Berkeley Group 2024 Annual Report
Making a
positive
difference to
people’s lives
Our regeneration projects
bring important benefits
to urban communities,
including affordable
and private homes,
public amenities such
as schools and parks,
and a lasting supply
of jobs and training.
DELIVERING OUR PURPOSE THROUGH BROWNFIELD REGENERATION
+80.2
Net Promoter Score from
our customers on a scale
of -100 to +100
Berkeley Group apprentices and
graduates at Royal Arsenal Riverside
Our regeneration sites demonstrate the wide-
ranging social benefits that come from transforming
underused urban land into green and welcoming
neighbourhoods. Many of these projects are helping
to catalyse a wider cycle of investment and renewal.
Social mobility is important to us and we work
hard to ensure people of all ages and backgrounds
can reach their potential and build a lasting career
on our sites. We provide a mix of high-quality
training pathways, including apprenticeship and
graduate schemes.
We work in partnership with councils, schools and
colleges to ensure training and career pathways
really work at a local level and reach people in
greatest need. This delivers valuable social and
economic legacies for communities around our sites.
Through the Berkeley Foundation we go even
further to achieve our purpose, funding long-term
social impact programmes that make a lasting
positive difference to thousands of disadvantaged
people within the communities in which we operate.
9.5%
of our employees are graduates,
apprentices or sponsored students
26,000
UK jobs supported on average
per annum
Mental Health Awareness Week at Oval Village
Hartland Village, Fleet
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165–232 | Financial Statements
Berkeley Group 2024 Annual Report | 09
08 | Berkeley Group 2024 Annual Report
London
Watford
Fleet
Slough
Reading
22
11
9
10
Oxford
Guildford
Southampton
M25
M3
M4
M40
M1
M23
Gatwick
Heathrow
London
Bridge
Euston
Waterloo
St.Pancras
Paddington
City
Airport
Heathrow
Victoria
2
23
20
2
26
25
5
1
7
27
24
21
15
16
18
6
13
12
3
14
19
4
5
4
3
1
Grand Union
Poplar Riverside
17
8
Brownfield regeneration at scale
In production
1
250 City Road, lslington
2
Beaufort Park, Hendon
3
Bermondsey Place,
Southwark
4 Bow Green
5
Camden Goods Yard
6
Chelsea Creek
7
Clarendon, Haringey
8
Grand Union, Brent
9
Green Park Village, Reading
10 Hartland Village, Fleet
11
Horlicks Quarter, Slough
12 Kidbrooke Village,
Greenwich
13 King’s Road Park, Fulham
14 Lombard Square, Plumstead
15 London Dock, Wapping
16 Oval Village
17 Poplar Riverside
18 Prince of Wales Drive,
Wandsworth
19 Royal Arsenal Riverside,
Woolwich
20 Silkstream, Barnet
21 South Quay Plaza, Docklands
22 The Eight Gardens, Watford
23 The Green Quarter, Ealing
24 TwelveTrees Park, Newham
25 West End Gate, Paddington
26 White City Living
27 Woodberry Down,
Finsbury Park
Future sites
1
Aylesham Centre, Peckham
2
Borough Triangle
3
Romford*
4 Sutton
5 Syon Lane, Brentford*
Berkeley is the only large UK homebuilder to align with Government on prioritising brownfield
land, as we progress 32 of the country’s most challenging projects, 27 of which are in delivery.
Grand Union
Poplar Riverside
Unlocking this 22-acre industrial estate
in Brent required an upfront capital
investment of £170 million, complex enabling
infrastructure and close engagement with
the council and surrounding community to
shape a unique masterplan which meets
local needs.
Grand Union is now a popular canal-side
neighbourhood, which will deliver 3,350
private and affordable homes, 10 acres of
public space, up to 400 permanent jobs
and 200 apprenticeships, community
amenities and an innovative multi-storey
industrial workspace.
Scan the code
for more information
Part of the Lower Lea Valley
Opportunity Area, this 20-acre former
gasworks is being transformed into a
welcoming riverside neighbourhood
with more than 2,500 private and
affordable homes.
The open landscape will include a
public square, 2.4 acres of parkland,
playspace and walking routes,
including a riverside walk, along
with a secondary school, crèche,
shops, cafés, restaurants and flexible
commercial space for employment,
enterprise and leisure.
Scan the code
for more information
* Pipeline sites
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00-00 | Financial Statements
10 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 11
Our business model
Long-term sustainable added-value model
Berkeley is a unique asset-focused development business
that seeks to manage risk and generate value through market
cycles, with its inherent latent value rooted in its unrivalled
land holdings.
We seek to find the optimum development solution for
each site in terms of both the social, natural and economic
value for all stakeholders, and the returns we deliver to
our shareholders. We firmly believe these two are mutually
compatible and reinforcing.
The pace at which homes are delivered from the land holdings
is determined by the prevailing operating environment and
Berkeley will always adopt a long-term approach, prioritising
financial strength above annual profit targets.
Capital allocation policy
First, ensure financial strength reflects the cyclical nature
and complexity of brownfield development and is appropriate
for the prevailing operating environment. Second, invest in
the business (land and work-in-progress) at the right time.
Third, make returns to shareholders through dividends and
share buy-backs.
Land acquisition
— Acquire land at the right time in the
cycle, targeting sites where we can add
value over the long-term through our
regeneration and place-making expertise
— Adopt an innovative approach to
partnering with land owners, such as with
joint venture partners and local authorities
— Focus on complex, large-scale brownfield
sites in undersupplied markets where we
can take a bespoke approach to each
development
Designing and planning new homes
— Reputation for successful regeneration
delivery underpins the planning process
— Embrace a highly collaborative approach
to placemaking
— Design unique and beautiful places in
partnership with local authorities and
communities
— Continually evolve development plans
to generate the best outcome for
all stakeholders
Building new homes and places
— Consistent health and safety, building
safety and quality standards embedded
into operations
— Highly experienced and expert in-house
site management teams and direct
partnerships with building trades, rather
than main contractor-led sites
— Utilising modern methods of construction
and investing in digital technologies to
enhance and modernise our production
processes
Marketing and selling new homes
— Berkeley’s brand leadership and reputation
for lasting product quality provides a clear
competitive advantage in core markets
— Diversified sales channels across owner-
occupiers, private and institutional
investors, retirement living and affordable
housing providers
Sustainability and climate change
— Ambitious, sustainable and long-term
business strategy Our Vision 2030:
Transforming Tomorrow
— Strong focus on climate action, nature
recovery and strengthening communities
— Focus on urban brownfield regeneration,
which is inherently sustainable, socially
inclusive and supports a lower carbon
model for modern living
Placekeeping and stewardship
— Demonstrable long-term track record
of high levels of customer service and
satisfaction
— Long-term strategies for effective
estate and community management,
working in partnership with residents
and managing agents
Our brands
100% owned:
Our values
Joint venture:
Excellence through detail
Be passionate
Respect people
Think creatively
Have integrity
For more information
www.berkeleygroup.co.uk
Read more about our culture and values
on pages 112 to 113
Read more about creating long-term
sustainable value on pages 14 to 15
Read more about our investment case
on page 19
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12 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 13
Creating long-term sustainable value
Berkeley delivers long-term value on every new development
and ensures that we make lasting contributions that enable
communities and people to thrive.
These outcomes demonstrate the impact of our long-term
investment and placemaking strategies.
Creation of high
quality new homes
Leading the industry in producing
high quality, safe homes
19,608
Berkeley built 3,927
homes in 2023/24 and a
total of 19,608 over the last
five years (including joint
ventures).
10%
Berkeley has delivered
10% of the homes built
in London over the past
five years.
30
Berkeley has had a
strategic partnership with
RoSPA for five years,
helping to create the Safer
by Design framework.
30 developments have
now achieved Gold status.
93%
Berkeley has a long-
standing reputation for
quality homes. 93% of
homes built in the last five
years have had fewer than
five defects reported by
customers, with an average
of just two.
Place creation
and impact
on services
Collaborative
placemaking to revive
under-used spaces
Community
creation
Ensuring relationships
are underpinned by
trust and partnership
>17,000
515
Berkeley has built more
than 17,000 homes on
brownfield land over the
past five years. 87% of
completed homes have
been on brownfield land.
Berkeley is delivering
515 public amenities
on our developments
currently under
construction, including
indoor community spaces,
grocery and retail stores,
sports facilities and
children’s play spaces.
£2.0bn
>40%
Berkeley made a
community contribution of
£0.4 million in 2023/24 and
around £2.0 billion over the
last five years; £1.4 billion in
affordable housing
subsidies and additional
payments of £0.6 billion to
help pay for a wide range
of facilities and services for
local communities.
The Berkeley Foundation
develops long-term,
transformational
partnerships to ensure a
sustained investment in
our local communities.
More than 40% of Berkeley
Foundation Partners have
been supported for more
than five years.
Promoting local
skills and
employment
Providing good, local
jobs and inspiring
people to join the built
environment sector
26,000
Berkeley has supported
on average, 26,000 jobs
per annum directly and
indirectly through its
supply chain over the
last five years.
2,500
Berkeley has supported
2,500 apprentices in the
past five years, including
700 directly and 1,800
gaining experience working
on our sites through our
contractor workforce.
Economic Contribution
On average, every new home built by Berkeley in
the last five years has generated £290,000 of value
to the state through taxation and contributions to
the community.
£13.3bn
Berkeley’s contribution
to UK GDP was £2.5 billion
in 2023/24 and £13.3 billion
for the last five years.
£3.6bn
Berkeley’s total
UK tax contribution was
£0.8 billion in 2023/24 and
£3.6 billion during the last
five years. This includes
taxes paid by its customers
and suppliers as a result of
Berkeley activities.
Development with
low environmental
impact
Creating sustainable
homes and places
Improving access
to nature
Connecting people with
nature and making
a measurable
contribution to the
natural environment
246
13,600
Berkeley incorporates
sustainable transport
measures on all sites.
Infrastructure is being
installed for 13,600 electric
vehicle charging points
across our developments
under construction.
Berkeley has committed
or delivered 246 acres of
woodland over a seven
year period since we made
our commitment in 2017,
together with 160 acres of
nature-rich grassland and
56 acres of green roofs.
>580
>15%
Berkeley has committed or
delivered more than 580
acres of new or measurably
improved natural habitats
across 56 biodiversity net
gain sites over a seven year
period since we made our
commitment in 2017.
Berkeley incorporates
water saving measures in
new homes. On average,
in the last five years
homes have been 15%
more water efficient than
the requirements of the
Building Regulations.
EY completes an Economic Impact
Assessment each year based on
Berkeley’s financial data as well as
publicly available statistics.
01–103 | Strategic Report
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14 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 15
Chairman’s statement
In the financial year ended
30 April 2024 Berkeley delivered
positive outcomes for all its
stakeholders.
Pre-tax profits of £557.3 million
were slightly in excess of the
guidance we had given at the
beginning of the year. With
interest rates remaining high,
demand has been subdued and
we have seen a significant decline
in sales volumes. We achieved
these results, therefore, due to
the resilience of our long term
business model with a high level
of forward sales, a continuous
commitment to quality and
stringent cost management.
We met our shareholder returns
target through dividends and
share buybacks totalling £170.4
million, and announced a 33
pence per share dividend to be
paid in July and a special dividend
of £184 million, or 174 pence per
share, to be paid in September
along with a share consolidation,
subject to shareholder approval.
Our vision is to transform
challenging sites into exceptional
places and to maximise the
positive impacts we can have on
society, the economy and the
natural world.
Last year we delivered £370
million of value by way of
affordable housing subsidies
and infrastructure contributions
to the communities in which we
work. Notably, 87% of the homes
we sold were on regenerated
brownfield land, underscoring
our commitment to this most
sustainable form of development.
Although the current environment
is challenging, going into
2024/25 we are well positioned
for continued success. We have
already secured 80% of our
projected sales for the year, we
have a strong cash position and
land holdings of £6.9 billion
represent a solid foundation for
future growth. We are ready and
willing to invest further, as soon
as we see the right opportunities
and conditions for growth.
Recognising the acute
shortage of high quality rental
accommodation in our core
markets, we believe there is
a compelling opportunity to
establish a build to rent platform
which will accelerate the delivery
on our existing assets, and ensure
optimal value creation from them
as we build a substantial portfolio
over coming years. This aligns
with our goals of addressing
housing needs and enhancing
long term shareholder value.
Berkeley’s performance over
the past year is testament to
the strength and resilience
of our business model. We
have successfully navigated a
challenging environment and
delivered on our financial targets.
We will continue to invest in
high quality developments,
maintain our focus on operational
excellence and drive innovation
across the business. Looking
ahead, we remain confident that
this strategy, a strong financial
position and an outstanding
management team will deliver
sustainable growth.
The results achieved over the
past year and our strong position
today are due to the commitment
of the entire Berkeley team to
putting customers first and doing
everything to the highest quality.
On behalf of the Board, I would
like to extend our sincere thanks
for their hard work.
Michael Dobson | Chairman
19 June 2024
Unlocking brownfield sites
Berkeley is currently the only
UK homebuilder with the
skills and resources to deliver
urban brownfield regeneration
at scale.
What are the challenges?
— Building trust; with local
communities and councils
— Planning and regulatory
regimes; which are highly
complex and uncertain
— Capital; high up-front
investment
— Land assembly; with multiple
land ownerships
— Design challenges; to
address unique site-specific
constraints
— Infrastructure delivery; such
as new roads, bridges and
stations
— Operations; building in
complex urban environments
How do we solve them?
— Partnership working; based
on strong relationships with
local stakeholders
— Diverse inhouse expertise;
to work through complex
challenges
— Design-led solutions; to
unlock sites and create high
quality neighbourhoods
— Patient placemaking; to help
shape strong and engaged
communities
— Strong capital base; to
deliver multiple capital
intensive programmes
— Long term sustainable
operating model; to create
value through market cycles
Before regeneration: Battersea gasworks
After regeneration: Prince of Wales Drive
Berkeley’s performance over the last
year is testament to the strength and
resilience of our business model.
Michael Dobson | Chairman
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16 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 17
Chief Executive’s review
Recognising the strong
occupational and institutional
investment demand for high
quality, well-managed rental homes
in London and the South East,
Berkeley is establishing its own
Build to Rent (“BTR”) platform to
maximise returns in today’s market
conditions.
Berkeley has identified some 4,000
homes across 17 of its sustainable
and well-connected brownfield
regeneration sites as an initial
portfolio for this platform.
Developed over the next ten years,
and broadly representing a 10%
increase in delivery, the portfolio
will be financed by a combination
of internally generated funds
(over and above annual scheduled
shareholder returns), debt secured
against rental properties once
income generating, and the
introduction of third-party capital at
the appropriate time, thereby fully
supporting Berkeley’s long-term
corporate 15% pre-tax ROE target.
Berkeley’s passion and purpose is
to build quality homes, strengthen
communities and make a positive
difference to people’s lives. We
stand out as the only large-scale
UK homebuilder focussed on
brownfield regeneration, which
is a vital driver for growth and a
powerful force for good in our
towns and cities.
We are heartened by the strong
political consensus behind
increasing the delivery of new
homes across the country and
the recognition that regenerating
brownfield land is the most
sustainable and popular way to
deliver this vital goal. The next step
is to ensure that brownfield sites
can come forward at real scale
and pace.
For this to happen, planning
policy and public funding needs to
prioritise the provision of affordable
homes over the other significant
financial demands placed upon the
development industry through the
planning, taxation and regulatory
regimes. The industry has absorbed
many regulatory changes over
recent years and, while all well-
intended, when taken together they
have stifled investment, housing
delivery and growth. In terms of
corporation tax alone, the industry’s
rate has increased by 10% (from
19% to 29%) over the last two years,
including the 4% RPDT.
We are supportive of the initiatives
being discussed to provide
customers with greater access to
higher loan to value mortgages and
to reduce stamp duty. We believe
that all surcharges on stamp duty
should be removed as, ultimately,
these constrain supply.
I would like to thank all of Berkeley’s
people for their hard work,
resilience and steadfast focus on
our customers and communities
to achieve the best possible
outcomes for all stakeholders in
this exceptionally challenging
environment.
Investment Case
Berkeley has a strong
track record of delivery,
profitability and cash
generation through
market cycles, reflecting
its uniquely long-term
business model, which
is underpinned by five
key features:
Sustained Shareholder
Returns
526% TSR
(Total Shareholder Return)
since 1 January 2007
1
Only large UK homebuilder
focused on brownfield
regeneration at scale
— Delivering sustainable homes and
neighbourhoods on brownfield
land with significant socio-
economic benefits
— Aligned with Government’s
brownfield first agenda
— Each project individually designed
in partnership with local authorities
and communities
2
Core London and South East
markets are systematically under
supplied
— London has global appeal,
with deep and proven demand
— Berkeley delivers over 10%
of London’s new private and
affordable homes each year
3
Significant financial strength
giving the business strategic
optionality
— Net cash of £532 million, with
£1,200 million of available debt
facilities
— Cash due on private forward sales
under exchanged contracts of
£1.7 billion
— Land holdings estimated future
gross margin of £6.9 billion across
54,000 homes
4
Unrivalled land holdings
sustaining delivery profile
for the next 10 years
— Not under pressure to buy land
— Over 70% of homes are in London
— 90% of homes have outline or full
planning consent
5
Added value developer focused
on maximising returns on
every site
— Bottom-up approach which
identifies the best development
solution and maximises absolute
returns from each site
— Sales volumes important on a site-
by-site basis, but are not the sole
determinant for creating value
— Long-term value is created through
the land and planning strategy at
any point in the cycle
— Risk managed through land
approach and forward selling
— Agile and responsive to the
prevailing operating environment
Grand Union, Brent
Berkeley has delivered pre-tax
profits of £557 million in line with
the guidance provided at the start
of the year and increased its net
cash position to over £500 million.
This is a strong performance in a
challenging and volatile operating
environment, demonstrating the
resilience of Berkeley’s business
model with its focus on the
country’s most undersupplied
markets.
We continue to see good levels
of enquiry for well-located homes
built to a high standard of design
and quality but recognise that
the current lack of urgency in the
market is likely to remain until
the long-anticipated reduction in
interest rates commences. Berkeley
continues to benefit from a strong
order book and has already secured
80% of its sales for next year,
underpinning today’s 5% increase in
guidance for FY25’s pre-tax profit
to £525 million, with guidance for
FY26 re-affirmed at £450 million.
In the year, we have delivered 3,500
new private and affordable homes,
of which 87% are on regenerated
brownfield land, and provided
over £370 million in subsidies to
deliver affordable housing and
commitments to wider community
and infrastructure benefits.
— Strong performance in
continued challenging
operating conditions and
ready to increase investment
once the conditions for
growth are re-established
— £283 million annual
shareholder return to be
completed by 33 pence per
share ordinary dividend
in July and 174 pence per
share special dividend to
be paid in September and
accompanied by a share
consolidation
— FY25 guidance increased
by 5% to £525 million
— 87% of homes delivered by
Berkeley in FY24 were on
brownfield land with some
£370 million investment in
socio-economic benefits
— Berkeley is establishing
its own Build to Rent
platform, alongside its core
trading business, adopting
a strategic approach to
maximising returns from its
long-term regeneration sites
We are the only large-scale UK
homebuilder focused on brownfield
regeneration, which is a vital driver
of growth and a powerful force for
good in our towns and cities.
Rob Perrins | Chief Executive
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Berkeley Group 2024 Annual Report | 19
Chief Executive’s review continued
We continue to take action on
our ambitious long‑term strategy,
Our Vision 2030, helping to drive
our performance, spur innovation
and maximise our positive
impacts on society, the economy
and the natural world.
Rob Perrins | Chief Executive
Planning and Regulatory
Environment
The operating environment has
become increasingly uncertain
over recent years as a high number
of well-intended regulatory and
policy changes came into effect.
This contributed to a marked
decrease in private and affordable
homebuilding activity, with
SME developers and housing
associations particularly impacted.
This significant decline in housing
delivery has been acknowledged
by policymakers at all levels and
triggered a renewed focus on
addressing barriers within the
regulatory and planning system.
This positive response has
carried through to the General
Election campaign and we are
greatly encouraged by the tone
and substance of manifesto
commitments in support
of homebuilding and urban
regeneration.
Berkeley continues to work
alongside industry partners,
including other leading urban
regeneration specialists and
housing associations, to make
the case for a stable and efficient
regulatory environment which
enables all parts of the market to
invest with confidence.
Our core asks for the next
Government include:
— refraining from a further round
of major reforms in favour of
a focussed effort to resolve
a number of relatively small
operational challenges within the
planning and regulatory system
to make it faster and more
predictable;
— greater resources for severely
overstretched local authorities
and statutory bodies so they
can operate the system more
effectively;
— stronger policy support for
well-designed, high density
neighbourhoods on sustainable
brownfield sites close to
transport and employment hubs;
— replacing fixed CIL tariffs (which
fund off-site infrastructure)
with locally negotiated S106
agreements which prioritise
on-site affordable housing and
public amenities;
— refinancing under pressure
housing associations so they can
get back into the market and
perform their key role in driving
housing delivery; and
— simplify the complex Government
grant funding regimes so they
can become faster and more
flexible.
Strategy Positioning and
Establishment of Rental Fund
Core Business Strategy
In December, Berkeley set out a
medium-term plan to respond to
the extended period of volatility
in the housing market, that began
with the sharp increase in interest
rates in September 2022, which
also reflects the wider challenges
presented by the planning and
regulatory environment. Despite this
challenging backdrop, Berkeley’s
long-term business model continues
to be resilient with good forward
visibility:
Near-term (FY25 and FY26)
— Having met its guidance for
FY24, Berkeley is targeting at
least £975 million of pre-tax
profit across the next two years
with the guidance for FY25
increased by 5% to £525 million.
— Operating margins are expected
to be within the long-term
historical range (17.5% to 19%)
following a 7.7% reduction in
operating costs in FY24 and
targeting no increase in FY25.
Huntley Wharf, Reading
— While the sales market remains
subdued, cash due on private
forward sales remains strong
at £1.7 billion but will continue
to moderate until transaction
volumes recover. Consequently,
Berkeley will carry higher
completed stock levels than in
recent years over this period.
— Berkeley will continue to review
the development solution on all
its sites to achieve the optimum
outcome for all stakeholders,
including accommodating our
best current assessment of the
impact of evolving regulations,
such as the requirements
surrounding second staircases in
buildings over 18 metres.
— In the absence of material
new land investment, the land
holdings future gross margin will
be targeted at around £6 billion
at the end of this period.
— Pre-tax ROE will be above 15%
for the period as a whole but is
likely to fall slightly below this for
FY26.
Medium-term (FY27, FY28 and
FY29)
— Until the planning and regulatory
environments unlock, alongside
an inflection in the sales market,
pre-tax profitability is anticipated
to remain around the level to be
delivered in FY26.
— The focus will be on maintaining
operating margin through our
added-value approach to each
site’s development solution and
ensuring our operating costs
are aligned to the size of the
business.
Capital allocation flexibility
— We are on track to continue with
the current shareholder returns
programme into the future but
remain agile and are ready to
switch our capital allocation
emphasis to invest in value
accretive opportunities should
these present themselves.
For more detail
see pages 36 to 57
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Chief Executive’s review continued
— Berkeley’s position has always
been that, if it cannot deploy
capital to deliver appropriate
risk-adjusted returns, it will return
surplus capital to shareholders.
With the creation of the BTR
platform, the surplus capital that
we indicated in December would
be available to make additional
returns from 2027, should no
new investment opportunities
arise, will now be allocated to
the development of the rental
portfolio.
— Berkeley sees this as an attractive
opportunity to accelerate
delivery of its existing assets by
building a best-in-class London
and South-East focused BTR
residential portfolio and platform
that will enable us to maximise
value on our brownfield
regeneration sites from this
growing market segment to
the benefit of both society and
shareholders.
Establishment of Berkeley Build
to Rent (“BTR”) Platform
Recognising the severe shortage of
high-quality rental accommodation,
Berkeley is today announcing a
natural extension of its strategy
that will see the establishment of
its own BTR platform, which will
be developed over the next ten
years, comprising some 4,000 new
homes across 17 of the Group’s well-
connected, nature-rich, low-carbon
brownfield urban regeneration
developments.
This will represent additional
delivery of around 10% of much
needed new homes, when
compared to the plan set out in
December with the Company’s
interim results, along with the
acceleration of place-making and
affordable homes on these sites.
There is strong, unsatisfied
demand for quality residential
rental property built at scale in
and around London, the country’s
most under-supplied market,
from institutional capital which is
attracted to its inflation-correlated
attributes. Having sold over 1,000
homes across five sites in the last
three years to institutional investors
on a forward commitment basis, we
now believe that adopting a more
strategic route to this market will
drive best value for these assets
by creating a portfolio of scale,
professionally managed, with
proven income levels stabilised prior
to disposal.
With strong demand and a systemic
under-supply of high-quality homes
to rent in and around London,
upward pressure on rents is forecast
to remain. We will be locking in
build costs early in the investment
cycle and with yields linked to long-
term interest rates, there is strong
potential to drive value accretion
over the next ten years, as well
as incremental income while the
properties in the portfolio remain
owned by Berkeley.
Drawing on our experience in
2011–2014 when we developed
and managed a portfolio of 900
homes, and utilising our ongoing
site presence, we will create our
own operating and management
platform to provide tenants with
the high levels of customer service
experienced by our purchasers.
The establishment of the portfolio
will be financed by a combination
of internally generated funds
(over and above annual scheduled
shareholder returns), debt
secured against rental properties
once income generating, and
the introduction of third-party
capital at the appropriate time,
thereby enhancing the efficiency
of Berkeley’s balance sheet and
fully supporting the long-term
15% pre-tax ROE target. It will not
inhibit new land investment in the
core business when appropriate
opportunities arise.
The platform being established
is flexible, ensuring Berkeley is
able to dispose of the properties
individually or in stand-alone blocks
at any time should this become the
more compelling exit route for any
reason over the course of the next
ten years.
Housing Market
and Operations
Sales
Throughout the year, the value of
underlying private reservations
has been consistently around a
third lower than FY23, reflecting
the ongoing macroeconomic and
geopolitical uncertainty and, in
particular, the prolonged period of
elevated interest rates. Sales prices
have been largely stable across
our sites and above business plan
levels, with cancellation levels in the
normal range.
Our core markets are underpinned
by the systemic under-supply of
new homes, the related strong
rental growth of recent years and
a supportive mortgage market.
Enquiry levels remain robust, with
the slow-moving nature of the
second-hand market impacting
transaction timescales for sale-
dependent owner-occupiers.
We anticipate sales reservations
will remain around current levels
until we see the first reduction in
interest rates and customers have
confidence in the trajectory for
rates and the wider economy.
We continue to benefit from a
strong order book. Cash due on
exchanged private forward sales
stands at £1.70 billion, down from
£2.14 billion at the start of the year,
with 80% of private sales for FY25
already secured. This level will
moderate over the course of the
coming year while the prevailing
sales rates continue. Equally,
and as anticipated, Berkeley’s
completed stock has increased in
this environment, providing readily
available homes for those currently
in the zone to move and for when
the market conditions normalise.
Positively, inflation is now abating,
and the market expectation is for
measured interest rate reductions
over the near term against a
backdrop of full employment levels
and resilient wage growth which
has improved affordability in real
terms. Nonetheless, Berkeley is
mindful of the ongoing uncertainty
on a number of macro fronts which
weighs on market sentiment.
Shareholder Returns
The current shareholder returns framework is based upon an annual
return of £283 million through to September 2025 (as the shareholder
returns year runs from 1 October to 30 September each year), which
can be made through either dividends or share buy-backs, subject to a
dividend underpin of 66 pence per share (approximately £70 million).
Shareholder returns during the financial year totalled £170.4 million:
Shareholder Returns for the year ending 30 April:
2024
£m
2023
£m
Dividends paid
98.1
98.5
Share buy-backs undertaken
72.3
155.4
Shareholder return in the financial year
170.4
253.9
Dividends paid during the financial year of £98.1 million comprised:
— A £63.1 million dividend in September 2023 (59.30 pence per share)
which completed the return of £283 million for the year ended 30
September 2023; and
— A £35.0 million dividend in March 2024 (33.00 pence per share)
representing half of the dividend underpin in respect of the
scheduled return of £283 million for the year ending 30 September
2024.
The total amount returned via share buy-backs in the financial year was
£72.3 million across 1.8 million shares at an average price of £39.62 per
share.
This includes £29.2 million in respect of the year annual return to
30 September 2024. When combined with the £35.0 million dividend
paid in March, there is currently £218.9 million still due for return by
30 September 2024. This will be completed by:
— A further £34.9 million (33.00 pence per share) interim dividend to
be paid on 26 July 2024 to shareholders on the Company’s register
of members at close of business on 28 June 2024. The ex-dividend
date is 27 June 2024; and
— A special dividend of £184.0 million (174 pence per share) to be paid
in September 2024 accompanied by a share consolidation, subject
to approval by shareholders at the September AGM.
Any further share buy-backs undertaken in the intervening period
will therefore count towards the £283 million return for the year to
30 September 2025, which currently equates to £2.67 per share and
compares to the initial £2.00 per share initiated in 2016.
Oval Village
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Berkeley Group 2024 Annual Report | 23
Chief Executive’s review continued
CMA investigation
Berkeley notes the outcome of the
Competition and Markets Authority
(“CMA”) market study into house-
building, which concluded on
26 February 2024 with the CMA’s
decision not to launch a market
investigation at this time. As one
of the eight large housebuilders
covered by the CMA’s subsequent
investigation into possible anti-
competitive sharing of information
in the housebuilding industry, we
continue to cooperate with the
CMA and their enquiries.
Self-Remediation
Terms and Contract
On 13 March 2023 Berkeley
entered into the Self-Remediation
Terms and Contract with DLUHC,
under which developers have
responsibility for any life critical
fire safety defects in buildings they
have developed in the 30 year
period to April 2022.
For the 820 relevant buildings
Berkeley has developed over
this period, we have third party
assessments on over 95%. All of
the remaining buildings are where
Berkeley is not the freeholder and
has not yet been provided access.
There are 40 buildings where
works are still to be completed,
12 of which are buildings where
Berkeley is reimbursing Government
for the works under the Developer
Remediation contract. Where works
are required and yet to commence,
Berkeley intends to begin works as
soon as reasonably possible, subject
to access being provided by the
freeholder.
It is Berkeley’s preference to take
full responsibility for all its relevant
buildings and to complete any
required works itself as this will
speed up the overall process
of remediation. We are seeking
recoveries from the supply chain
and insurers where appropriate.
Berkeley is therefore positioned
for sales rates to remain subdued
for the near-term but is alert to
the prospect of these responding
decisively to evolving market
conditions.
More fundamentally, Berkeley’s
core markets in London and the
South East are under-supplied.
Focussing on the capital, the latest
DLUHC data is new-build starts for
the 12 months to December 2023
of just under 17,000 (including
private, PRS and affordable homes)
below both the current London
Plan target of 52,000 per annum
and Government’s identified local
housing need of 94,000 per annum.
Land and planning
Following extended planning
processes and timescales, Berkeley
has secured five new consents
during the year:
— 199 homes in Spring Hill,
Maidenhead;
— 470 homes in Guildford, Surrey
(St Edward);
— 550 homes adjacent to West End
Gate, Marylebone;
— 970 homes in Chalk Gardens,
Sutton; and
— 2,150 homes at Syon Lane,
Brentford (St Edward).
The sites in Maidenhead and
Guildford have been added to the
land holdings during the year, with
the former a strategic land site
and the latter transferred from the
pipeline. While consent was secured
in December 2023 for the large-
scale regeneration development
in Brentford, the site will remain
in the pipeline while Berkeley re-
plans the development to reflect
building regulation changes,
notably to accommodate second
staircases, that have arisen since
the application was called-in by
central Government in late 2021.
In addition, Berkeley has obtained
some 30 amendments to planning
consents on existing sites.
Looking forward, Berkeley is
ensuring its procedures are
compliant with new legislation and
is working closely with the new
Building Safety Regulator which,
together with the actions taken
to date, should restore trust and
confidence to the housing market,
enabling it to operate efficiently,
effectively and fairly for all.
At 30 April 2024, Berkeley’s land
holdings comprise 54,081 plots
across 70 developments (30 April
2023: 58,045 plots across 73
developments), including those in
the St Edward joint venture.
The plots in the land holdings have
an estimated future gross profit of
£6.93 billion (30 April 2023: £7.63
billion), which includes the Group’s
50% share of the anticipated
profit on St Edward’s joint venture
developments. The net reduction
in future gross profit of £0.70
billion principally arises through
the gross profit taken through the
Income Statement, with the two
new sites added partly mitigating
the impact of market movements
and regulatory changes on the
anticipated future gross profit in
the land holdings. Consequently,
the estimated future gross margin is
25.1% (30 April 2023: 26.2%).
The estimated future gross
margin represents Management’s
risk-adjusted assessment of the
potential gross profit for each site,
taking account of a wide range
of factors, including current sales
and input prices; the political and
economic backdrop; the planning
regime; and other market forces; all
of which could have a significant
effect on the eventual outcome.
The pipeline comprises
approximately 13,500 plots across
13 sites at 30 April 2024 (30 April
2023: 14,000 plots on 14 sites)
following the transfer of the
Guildford site to the land holdings.
Construction
For Berkeley, build cost inflation in
today’s market is at negligible levels
apart from some isolated trades
where demand is high, reflecting
a combination of reduced energy
prices, the reversal of the very
high materials inflation of recent
years and reduction in new homes
starts and construction output
more broadly. For the early trades
and those most impacted by the
decline in orders we are already
seeing some reductions in current
tender pricing. We expect these
market-led dynamics to continue
placing downward pressure on build
costs, but this will continue to be
balanced by the costs associated
with ongoing regulatory change.
These include the impacts of
evolving building regulations, the
introduction of the new building
safety regime and the requirements
for second staircases in buildings
above 18 metres.
We continue to work with
and support our established
supply chain partners to ensure
sustainability of the supply chain
and delivery on our development
sites as the market continues to
adjust to these changing dynamics.
Outlook
The last 12 months has seen a continuation of the volatile and uncertain
operating environment for Berkeley. However, while interest rates have
stayed at elevated levels for longer than the market had anticipated,
there are signs that the outlook is improving with inflation greatly
reduced, the first interest rate cut expected later this year and a return
to growth.
Housing is a central issue in the upcoming General Election and we
are optimistic that the next Government will prioritise increasing
housing supply of all tenures to deliver the homes the country badly
needs where they are needed most. This is not straight-forward due
to the multiple demands on development and the impact of policy
and regulatory changes of recent years. However, we look forward
to working with all levels of Government to unlock development on
brownfield sites which have a vital role to play in tackling the housing
crisis and re-energising our towns and cities to meet the challenges
of tomorrow.
Berkeley enters the coming year in a robust position with over
£0.5 billion of net cash, £1.7 billion of cash due on exchanged private
sales and £6.9 billion of future gross margin in our land holdings.
We have in place a clear strategy for capital allocation, maintaining
our previously announced scheduled annual shareholder returns
programme and investing surplus capital to increase delivery by
around 10% to develop our own BTR platform to deliver much needed
quality homes for the rental market on our well-connected, nature-rich
regeneration sites.
Our focus for the next twelve months is to find the best development
solution for each of our sites, adding value to maintain operating
margins in the long-term historic range of 17.5% to 19.5%. The challenge
in the near-term is maintaining pre-tax return on equity above our 15%
hurdle rate given the subdued sales market and the time required to
achieve satisfactory planning consents in the current planning and
regulatory environment.
We are delighted that over the last year our advocacy has helped
the development of brownfield land to be recognised as the most
sustainable way of solving the UK’s housing crisis, and we will continue
to fulfil our purpose and transform the most challenging sites into
exceptional places with a real sense of community, yielding a long-term
positive impact for society, the UK economy and natural world.
Land holdings as at
30 April 24
Change
30 April 23
Owned
53,600
-4,445
58,045
Contracted
481
+481
–
Plots
54,081
-3,964
58,045
Sales value
£27.6bn
-£1.6bn
£29.2bn
Average selling price (ASP)*
£516k
+£8k
£508k
Average plot cost*
£49k
-£1k
£50k
Land cost (%)
9.4%
-0.4%
9.8%
Gross margin
£6,929m
-£700m
£7,629m
GM%
25.1%
-1.1%
26.2%
* Reflects joint venture sites at 100%
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Figure 1 – Construction starts activity
Figure 2 – Regional housing supply
Figure 3 – Transaction volumes
-68%
Pandemic
& recovery
-50%
125,000
100,000
25,000
50,000
75,000
150,000
175,000
200,000
275,000
300,000
225,000
250,000
5,000
40,000
10,000
15,000
20,000
35,000
30,000
25,000
45,000
50,000
55,000
60,000
London Starts (rolling 12 months)
England Starts
London Target
England Target
England Starts (rolling 12 months)
2023
Q4
2021
Q4
2019
Q4
2017
Q4
2015
Q4
2013
Q4
2011
Q4
2009
Q4
2007
Q4
London Starts (rolling 12 months)
3% SDLT
levy imposed
Pandemic
& recovery
Mini
budget
200,000
100,000
50,000
150,000
1,250,000
250,000
London
England (excl. London)
England Starts (rolling 12 months)
250,000
1,000,000
500,000
750,000
2022
Q4
Q4
2018
Q4
2016
Q4
2014
Q4
2012
Q4
2010
Q4
2008
Q4
2006
Q4
East of
England
East
Midlands
London
North
East
North
West
South
East
South
West
West
Midlands
Yorkshire
and the
Humber
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
2021/22
2022/23
2023/24 (EPC data)
Housing target
Berkeley’s core markets
–
–
–
–
–
London Starts
2020
Market overview
The housing market is
sensitive to underlying
sentiment and the
prevailing macro-economic
environment. It is therefore
cyclical in nature, and
Berkeley is experienced
at operating in this
environment, with a unique
long-term business model
that enables us to deliver
homes and outcomes for
all stakeholders through
market cycles.
Over the last year, the housing
market has continued to face
multiple challenges. In addition
to the backdrop of sustained
international economic and political
instability, short-term domestic
uncertainty exists, characterised
by the upcoming General Election,
muted economic growth and
a planning and regulatory
environment that continues
to constrain supply.
Inflation, having been in double
digit territory a little over a year
ago, reduced to 2.3% in April 2024,
nearing the Bank of England’s
2% target. Build cost inflation has
stabilised with a more competitive
supply chain, although the financial
strength of a number of smaller
subcontractors has come under
pressure.
Inflation and higher mortgage
rates have impacted upon market
sentiment. However, this could start
to ease with inflation expected to
reduce further and the Bank of
England expected to commence
base rate reductions cautiously later
in the year.
The layering of planning and
regulatory changes in recent
years have introduced a variety
of challenges and increased
uncertainty for the sector, including
the removal of housing targets
for local authorities, changes
to energy efficiency standards
and environmental measures, as
well as the continued changes to
building regulations which, for a
prolonged period, did not provide
clear and definitive specification or
transitional arrangements.
Whilst Berkeley supports positive
changes, the increasingly
challenging operating environment
has resulted in subdued
construction activity nationally,
which is impeding much needed
supply.
However, importantly, the
fundamentals of the housing sector
and Berkeley’s core markets in
London and the South East remain
strong:
— London’s position as a global city
remains compelling;
— systemic and compounding
under supply in London and the
South East of England continues;
— unemployment remains at
low levels, despite economic
uncertainty, with strong wage
growth countering inflation;
— interest rates appear to have
peaked and the anticipated
future trajectory is supportive
of restoring sentiment and
affordability;
— a competitive lender market
supports good mortgage
availability; and
— strong growth in the rental
market means both home
ownership is a viable preference
despite higher interest rates, and
investors can achieve appropriate
yields, supporting the much
needed rental market.
London and the South East is
systemically under-supplied
The Government’s long-term
annual delivery target of 300,000
homes per year has only ever been
achieved six times, all during the
1960s, when Government directly
delivered around 40% of all new
build homes.1 How this target is
to be achieved in the future is a
key point of focus of the General
Election in July.
During 2023/24, the number of new
homes completed across England
was around 232,000,2 comparable
to the levels achieved in each of
the preceding two years,3 but still
some 23% below the Government’s
ambition and compounding the
national under supply issue further.
Future completions look set to
remain materially below targets,
based upon current permissions
granted and starts activity.
There were 149,000 starts reported
in England in 2023, the lowest level
since 2016, excluding the short-term
pandemic impacted period (see
Figure 1).4 This is less than half of
the Government’s national target.
The number of homes that gained
planning permission in 2023 was
the lowest since 2014. Whilst all
regions had a general downward
trajectory, the declines were among
the greatest in London (34%, lowest
since 2011) and the South East (13%,
lowest since 2015).5
Based upon the Government’s most
recent assessment of housing need,6
this under supply will therefore
continue to be concentrated in
these two regions more than any
others (see Figure 2).
London’s housing need was last
estimated at 94,000 homes per
year.6 However, the current London
Plan has an annual housing delivery
target of 52,000 homes. Even if
this target were reached, this would
still represent a shortfall of 42,000
homes or around 45% relative to
London’s assessed housing need
every year.
In 2022/23, there were 35,000
homes delivered in London, of
which nearly 31,000 were new
build.3 The delivery in 2023/24 is
expected to be broadly similar,2 a
63% shortfall compared to need.
This supply constraint in London
looks set to continue in the medium
to long-term, with new build starts
currently just under 17,000 per
annum (see Figure 1),7 having been
below 20,000 for much of the
last decade. The decline appears
particularly acute within affordable
housing delivery, with claimed starts
in the year to March 2024 down
over 90% on the prior year.8
The situation is similar in the South
East, which has a housing need
assessment of 50,000 homes
per year,6 compared to average
completions of just over 40,000
per year over the last five years,3
an annual shortfall of 10,000 homes
(20%).
Transaction volumes
Transaction activity had recovered
well post-pandemic. However, the
full impact of recent economic
events upon consumer confidence
is now much clearer. Current
transaction levels have reduced
by around 35% in the period since
September 2022 and are now close
to the volumes back in 2009 at the
height of the financial crisis (see
Figure 3).9
The reaction to temporary SDLT
cuts in recent periods demonstrated
the positive impact a more
permanent rationalisation of the
SDLT regime could have on housing
market activity. Conversely, the
introduction of the 3% SDLT levy
on additional properties in 2016
showed the adverse impact of
increased transactional taxation,
which initiated a contraction of
activity, exacerbated in London (see
Figure 3). Current volumes are now
45% and 52% lower nationally and
in London respectively than prior to
this change.9
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
26 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 27
Such investment (including some
overseas purchasers, who have also
been impacted by the introduction
of a further 2% SDLT surcharge) is
a crucial element of new housing
supply. They typically invest early
in the development cycle, which
allows developers and their funders
to bring forward larger and more
capital intensive developments, thus
creating significant additionality
beyond their direct purchases.
Setting the conditions
for growth
Increasing housing delivery in a
sustainable manner should be an
increasingly important priority
for the UK Government. Rents
are currently rising at historically
significant rates, and the falling
number of housing starts is now
so significant it is likely acting
as a drag on overall economic
performance.
Berkeley strongly supports the
ambition to reform the planning
system to make it faster and more
predictable, with the clear objective
of delivering more homes in the
places where they are most needed.
In particular, the increased focus
on the importance of brownfield
housing delivery as a core part of
this overall ambition is encouraging.
When individual homebuyers,
investors, and developers like
Berkeley have the confidence and
ability to invest for the long-term,
this supports significant economic
activity, improves social mobility,
and permanently increases the
country’s asset base. Berkeley
believes that the following further
actions could help support
sustainable economic growth:
— Create a separate planning
category for brownfield
development, with differing
levies and planning tariffs which
appropriately reflect the more
complex nature and higher
capital investment required for
such development.
— Refocus attention on increasing
the supply of homes on
brownfield land by recognising
the positive nature of investment
in the built environment and
offer incentives for investment in
brownfield urban regeneration.
This will deliver more homes and
raise more tax revenue in the
medium to long-term.
— Increase the amount of direct
Government investment in
affordable housing, assisting
with the private sector’s
efforts to replicate historical
record delivery levels achieved
in tandem with significant
Government involvement.
— Strengthen housing delivery
targets and ensure changes to
the National Planning Policy
Framework appropriately
address the shortcomings of
the existing system, which will
result in the building of more
high quality, well designed and
beautiful homes in the most
undersupplied markets.
— Provide more resources to the
planning system and ensure that
a robust plan-led system is able
to deliver the number of homes
targeted by the Government.
— Increase market liquidity through
reduced transaction taxes,
particularly for first time buyers
in the absence of continued
support and downsizers.
Market overview continued
Trading and financial review
Revenue of £2,464.3 million in
the year (2023: £2,550.2 million)
arose primarily from the sale of
new homes in London and the
South East. This included £2,395.7
million of residential revenue (2023:
£2,508.3 million), £21.4 million of
land sales (2023: £nil) and £47.2
million of commercial revenue
(2023: £41.9 million).
3,521 new homes (2023: 4,043)
were sold across London and
the South East at an average
selling price of £664,000 (2023:
£608,000) reflecting the mix of
properties sold in the year.
The gross margin percentage is
26.2% (2023: 27.3%), reflecting the
mix of developments on which
homes were completed in the year.
Overheads of £164.8 million (2023:
£178.5 million) have decreased by
£13.7 million (7.7%). The operating
margin is 19.5% (2023: 20.3%).
Berkeley’s share of the results of
joint ventures is a profit of £65.6
million (2023: £96.3 million),
with St Edward’s profits arising
predominately from completions at
Royal Warwick Square and Millbank.
Taxation
The Group has an overall tax
charge of £159.7 million for the
year (2023: £138.3 million) and
an effective tax rate of 28.7%
(2023: 22.9%). The Group
manages its tax affairs in an
open and transparent manner
with the tax authorities and
observes all applicable rules
and regulations in the countries
in which it operates. Factors
that may affect the Group’s
tax charge include changes in
tax legislation and the closure
of open tax matters in the
ordinary course of events.
Total tax paid
(year ended 30 April 2024)
£285.4m
Corporate Tax
£170.5m
SDLT
£1.8m
PAYE
£70.3m
Employees’ NI
£15.0m
Employer’s NI
£27.8m
For the year ended 30 April 2024,
the total tax contribution to the UK
Treasury was £285.4 million; split
between taxes borne by Berkeley
of £200.1 million (corporation tax,
employer’s NIC and SDLT) and taxes
borne by our employees of £85.3
million (PAYE and employees’ NIC).
This total tax contribution does not
include the indirect tax contribution
paid by Berkeley’s suppliers and
customers. The wider indirect tax
impact is set out on page 15.
The cost of borrowings,
amortisation of associated fees and
imputed non-cash interest on land
creditors is outweighed by interest
earned from gross cash holdings,
resulting in net finance income of
£12.0 million for the year (2023: net
finance cost of £10.6 million).
The taxation charge for the year is
£159.7 million (2023: £138.3 million)
at an effective tax rate of 28.7%
(2023: 22.9%), which incorporates
the additional 4% RPDT and
Corporation Tax of 25%, following
the increase from 19% from April
2023.
Pre-tax return on equity for the year
is 16.2% (2023: 18.7%).
Basic earnings per share has
decreased by 12.4% from 426.8
pence to 373.9 pence, which takes
account of the buy-back of 1.8
million shares at a cost of £72.3
million under the Shareholder
Returns Programme.
Trading performance
Year ended 30 April
2024
£m
2023
£m
Change
£m
%
Revenue
2,464.3
2,550.2
-85.9
-3.4%
Gross profit
644.5
696.8
-52.3
-7.5%
Operating expenses
(164.8)
(178.5)
+13.7
-7.7%
Operating profit
479.7
518.3
-38.6
-7.4%
Net finance costs
12.0
(10.6)
+22.6
Share of joint ventures
65.6
96.3
-30.7
Profit before tax
557.3
604.0
-46.7
-7.7%
Pre-tax return on equity
16.2%
18.7%
-2.5%
Earnings per share – basic
373.9p
426.8p
-52.9p
-12.4%
Sources: (1) DLUHC Live Table 244;
(2) DLUHC EPC data; (3) DLUHC Live Table 118;
(4) DLUHC Live Table 213; (5) HBF; (6) DLUHC
Indicative Local Housing Need (December 2020);
(7) DLUHC Live Table 253a; (8) GLA;
(9) Land Registry
Woodberry Down, Hackney
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
28 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 29
Financial Position
The Group’s net assets increased
by £228.2 million during
the year to £3,560.5 million
(2023: £3,332.3 million).
Inventory
Inventories of £5,283.9 million
include £725.8 million of
land not under development
(2023: £927.1 million),
£4,347.7 million of work in
progress (2023: £4,249.2 million)
and £210.4 million of completed
stock (2023: £125.8 million).
During the year, three sites moved
from land not under development
into work in progress: Broadway
East in Bethnal Green, Bow Green
and Winterbrook Meadows in
Wallingford.
Creditors
Total creditors of £2,775.8 million
include £907.7 million of on-
account receipts from customers
(2023: £921.3 million) and land
creditors of £881.7 million (2023:
£900.7 million). Of the total £881.7
million land creditor balance, £198.1
million is short-term, with a further
£227.9 million due to settlement
in the financial year ending 30
April 2026 and the residual £455.7
million is spread over the following
seven years.
Creditors include provisions of
£209.8 million (30 April 2023:
£193.6 million) which represents
post-completion development
obligations, including those related
to building fire-safety matters, and
other provisions.
Summarised Balance Sheet as at 30 April
2024
£m
2023
£m
Change
£m
Non-current assets
393.4
394.9
-1.5
Inventories
5,283.9
5,302.1
-18.2
Debtors
127.0
92.3
+34.7
Creditors
(2,775.8)
(2,867.4)
+91.6
Capital employed
3,028.5
2,921.9
+106.6
Net cash
532.0
410.4
+121.6
Net assets
3,560.5
3,332.3
+228.2
Shares, net of treasury and EBT
105.9m
107.5m
-1.6m
Net asset value per share
3,363p
3,101p
+262p
Abridged Cash Flow for year ended 30 April
2024
£m
2023
£m
Profit before taxation
557.3
604.0
Taxation paid
(170.5)
(133.7)
Net investment in working capital
(105.9)
(50.1)
Net investment in joint ventures
(3.7)
(33.0)
Other movements
14.8
8.2
Shareholder returns
(170.4)
(253.9)
Increase/(decrease) in net cash
121.6
141.5
Opening net cash
410.4
268.9
Closing net cash
532.0
410.4
Net cash
The Group ended the year with net
cash of £532.0 million (30 April
2023: £410.4 million), an increase of
£121.6 million.
The net cash of £532.0 million
comprises gross cash holdings
of £1,192.0 million and long-term
borrowings of £660.0 million.
Net assets and NAVPS
Net assets increased over the
year by £228.2 million, or 6.8% to
£3,560.5 million (2023: £3,332.3
million) primarily due to the profit
after tax for the year of £397.6
million outweighing the shareholder
returns of £170.4 million and
other movements in reserves of
£1.0 million.
The shares in issue, net of treasury
and EBT shares, closed at 105.9
million compared to 107.5 million
at the start of the year. The net
reduction of 1.6 million shares
comprises two movements:
— The 1.8 million share buy-backs
undertaken during the year for
£72.3 million (£39.62 per share);
— The issue of 0.2 million shares
under the 2011 LTIP.
Consequently, the net asset value
per share is 3,363 pence at
30 April 2024, up 8.4% from the
3,101 pence a year ago.
Trading and financial review continued
The Green Quarter, Ealing
Funding
The Group’s borrowing capacity
of £1,200 million was unchanged
during the year and comprises:
— £400 million unsecured 10-year
Green Bonds which mature in
August 2031 at a fixed coupon of
2.5% per annum; and
— £800 million bank facility,
including a £260 million Green
Term loan and a £540 million
undrawn revolving credit facility
(“RCF”).
In February 2024, Berkeley
exercised the second of two one-
year extensions on its £800 million
bank facility, which extended the
term to February 2029.
Berkeley has allocated the proceeds
of the Green Bonds and Green Term
Loan to its ongoing development
activities in accordance with its
Green Financing Framework
(available on its website).
With borrowings of £660 million,
the Group’s gross cash holdings of
over £1 billion throughout the year
have been placed on deposit with
its six relationship banks.
In February 2024, Berkeley
entered a borrowing facility with
Homes England whereby it may
apply amounts borrowed towards
financing or re-financing certain
infrastructure type costs incurred
on three of its developments.
The facility totals £125.6 million,
is unsecured, has floating interest
rates linked to UK base rate and
requires 33.33% of any outstanding
loans to be repaid by 31 December
2031, 50% by 31 December 2032
and 100% by 31 December 2033.
There are no loans outstanding as
at 30 April 2024.
Joint ventures
Included within non-current
assets are investments in joint
ventures accounted for using
the equity method which are at
£227.0 million at 30 April 2023
(2023: £223.4 million).
The net £3.6 million increase in the
year arises from Berkeley’s 50%
share of three movements:
— Profits earned in joint ventures of
£65.6 million;
— Dividend distribution from
St Edward of £74.9 million; and
— Cash contributions (loans) to
site specific joint ventures of
£12.9 million.
In St Edward, 406 homes were
completed in the year at an average
selling price of £788,000 (2023:
594 homes at £885,000). The
completions occurred at Royal
Warwick Square and Millbank in
London, Hartland Village in Fleet,
Green Park Village in Reading and
Highcroft in Wallingford.
In total, 2,502 plots (30 April 2023:
2,435 plots) in Berkeley’s land
holdings relate to five St Edward
developments, one in London
(Westminster) and four outside the
capital (Reading, Fleet, Wallingford
and Guildford).
The Strategic Report on pages 01 to
103 was approved by the Board
and signed on its behalf by:
Rob Perrins
Chief Executive
19 June 2024
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
30 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 31
Our KPIs are aligned to the business strategy
and are used to actively monitor business performance.
Key Performance Indicators (KPIs)
Financial KPIs
Profit before tax
(£m)
604.0
551.5
518.1
503.7
2020
2021
2022
2023
2024
This is our core measure of profitability,
our absolute return from the sale and
delivery of new homes in the year.
Definition: Profit earned by the Group
during the year, including any finance
income and costs and share of results of
joint ventures, but before any tax expense.
Link to strategy:
Pre-tax return on equity
(%)
000.0
17.5
16.5
16.6
2020
2021
2022
2023
2024
This is the efficiency of the returns
generated from shareholder equity
in the business.
Read more on remuneration page 131
Definition: This is measured by calculating
profit before tax as a percentage of the
average of opening and closing
shareholders’ funds. See page 216.
Link to strategy:
Net cash
(£m)
268.9
1,128.2
1,138.9
2020
2021
2022
2023
2024
This provides a measure of the financial
strength of the Group.
The £0.5 billion of net cash at 30 April
2024 combined with £1.2 billion of
borrowing capacity provides the Group
with total liquidity of £1.7 billion.
Definition: Cash and cash equivalents,
less total borrowings. See page 211.
Link to strategy:
Net asset value per share
(£)
31.01
28.18
26.12
24.72
2020
2021
2022
2023
2024
This Balance Sheet measure reflects the
value of shareholders’ interests in the
net assets of the business.
Definition: Net assets attributable to
shareholders divided by the number
of shares in issue, excluding shares
held in treasury and shares held by the
Employee Benefit Trust. See page 215.
Link to strategy:
Cash due on forward sales
(£m)
1,701
2,136
2,171
1,712
1,858
2020
2021
2022
2023
2024
This measures cash due from customers
under unconditional contracts and
reflects the strength and financial
stability of the business from secured
future sales.
Definition: This measures cash still due
from customers at the relevant Balance
Sheet date during the next three years
under unconditional contracts for sale.
It excludes forward sales of affordable
housing, commercial properties and
institutional sales, and forward sales
within the Group’s joint ventures. See
page 216.
Link to strategy:
Future gross margin
in land holdings
(£m)
8,258
6,884
6,417
2020
2021
2022
2023
2024
This provides a measure of expected
value in the Group’s land holdings,
including its share of joint ventures, in
the event that it successfully sells and
delivers the developments planned for.
Definition: This represents management’s
risk-adjusted assessment of the potential
gross profit for each of the Group’s sites,
including the proportionate share of its
joint ventures, taking account of a wide
range of factors, including: current sales
and input prices; the economic and
political backdrop; the planning regime;
and other market factors; all of which
could have a significant effect on the
eventual outcome.
Link to strategy:
557.3
16.2
532.0
410.4
18.7
33.63
7,629
6,929
Non-Financial KPIs
Net Promoter Score (NPS)
(Rate)
78.8
2020
2021
2022
2023
2024
Our six month rolling NPS is an indicator
of the success of our efforts to provide
world-class customer service. Our NPS
significantly exceeds the sector average
of 44 (HBF, March 2024) and compares
favourably with top-performing
consumer brands.
Definition: Customers register a score
between 0 – 10 of how likely they are to
recommend us to a friend; 9 – 10 being
classified as promoters, 7 – 8 being
passive, and 0 – 6 being detractors.
The NPS is the percentage of promoters
less the percentage of detractors, on a
scale of -100 to +100.
Link to strategy:
Annual Injury Incidence
Rate (AIIR)
(Rate per 100,000 people)
2020
2021
2022
2023
2024
This measure shows the number of
reportable injuries during the year,
in relation to the number of Berkeley
employees and on-site contractors.
Our AIIR significantly outperforms the
construction industry average of 296
(HSE, October 2023).
Definition: This rate is calculated by
taking the number of reportable injuries
across our operations throughout the
year, multiplied by 100,000, divided by
the average number of people working
across our activities in the year.
Link to strategy:
Direct apprentices and training
(%)
7.2
9.3
2020
2021
2022
2023
2024
This measure shows the proportion of
our employees who are an apprentice,
graduate or sponsored student.
On average, we had 150 apprentices
and approximately 50 graduates and 55
sponsored students during the course
of the year.
Definition: Calculated as the average
monthly percentage of our direct
workforce who are apprentices,
graduates or sponsored students, in line
with the definition provided by The 5%
Club.
Link to strategy:
Greenhouse gas (GHG)
emissions intensity
(tCO2e/100 sq m)
0.30
0.27
0.61
0.95
1.24
2020
2021
2022
2023
2024
This measure relates to our annual
scopes 1 and 2 (market-based) GHG
emissions resulting from our direct
activities to the floor area legally
completed in the year. The figure is
disclosed on an operational reporting
boundary, as further explained in the
Directors’ report on page 160.
Definition: This is calculated by
dividing our absolute market-based
GHG emissions by the floor area legally
completed in the year, including joint
venture activities.
Link to strategy:
Affordable housing subsidies
and wider contributions
(£m)
370
560
556
204
270
2020
2021
2022
2023
2024
This measures our contribution to
affordable housing subsidies and wider
community and infrastructure benefits
delivered or committed to during
the year. The value in any one year is
influenced by the number and mix of
homes delivered.
Definition: This is the total financial
value of community and infrastructure
benefits committed to under Section
106 agreements during the year,
together with the affordable housing
subsidy on affordable homes delivered
in the year with reference to open
market value.
Link to strategy:
Brownfield regeneration
(%)
87
89
2020
2021
2022
2023
2024
This measure shows the proportion of
our homes delivered during the year
(including joint ventures) on brownfield
regeneration land.
Definition: This is measured by
calculating the number of homes
delivered during the year on brownfield
regeneration land as a percentage of
total homes delivered during the year.
Link to strategy:
Key | Strategy
Customers
Quality
Communities
Climate action
Nature
Employee experience
Modernised production
Future skills
Supply chain
Shared value
80.2
79.2
77.2
77.9
52
79
72
124
117
9.5
10.0
8.9
87
86
86
01–103 | Strategic Report
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32 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 33
Responsible business at a glance
Berkeley has an established approach to responsible
business. We define this as the holistic way we
manage the business that takes into account
economic, social and environmental value.
Our Vision 2030 is our ambitious strategy for the business. It centres
on 10 strategic priorities that we will focus on over a decade, helping to
drive our continued success, whilst setting us apart and maximising the
positive impact we make.
Tackling material issues
A materiality assessment was
undertaken when developing our
strategy in 2020, based on
international best practice from the
Global Reporting Initiative (GRI) to
help identify the priorities. It included
extensive research, together with
input from more than 40 internal
and external stakeholders.
Scan the code
for more information on
our materiality study
Ambitious goals
Through Our Vision 2030 we strive
to go above and beyond typical
requirements, where appropriate.
Each priority includes a long-term
goal and is supported by an
underlying action plan with targets
and a set of core KPIs which we use to
measure outcomes and impacts.
We are now in the medium-term
implementation phase of our strategy.
A sustainable business
We take action to reduce the long-
term impacts of both our operations
and the places we build. In addition
to Communities, Climate Action and
Nature contained within Our Vision
2030, our Sustainability Standards
and management system cover
resource use and environmental
management.
We are committed to playing
our part in achieving the United
Nations’ Sustainable Development
Goals (SDGs). We have identified
six goals that we have the greatest
opportunity to contribute to the
achievement of through the
implementation of Our Vision 2030.
Scan the code
to find out more about our
approach to sustainability
Our vision is to be a world-class
business, trusted to transform
the most challenging sites
into exceptional places and to
maximise our positive impact
on society, the economy and
the natural world.
An integrated strategy for ESG
Our Vision 2030 provides a framework for how we address Environmental,
Social and Governance (ESG) issues. It includes topics such as sustainability,
health and safety and build quality, and encompasses our approach with a
number of stakeholders such as customers, employees and the supply chain.
Read more about Our Vision
2030 on pages 36 to 57
Engaging
stakeholders
The nature of our business means
that we have a wide variety of
stakeholder groups, with a range
of interests from the activities of
individual developments through
to strategic business performance.
We engage with stakeholders to
understand their opinions and
respond to their requirements.
Getting this engagement right is
fundamental to the success of our
business, with the interests of our
stakeholders embedded into the
long-term strategy of the business.
Awards
Read more about our
stakeholders on pages 58 to 65
The Berkeley
Foundation
We established the Berkeley
Foundation in 2011 as an independent
charity to support young people
and their communities. It is funded
by Berkeley and our employees
volunteer their time, expertise and
money to support the Foundation’s
charity partners.
Read more about the Berkeley
Foundation on pages 56 to 57
Performance
and disclosures
ESG performance
pages 66 to 67
Climate-related disclosures
pages 68 to 88
Link to ESG disclosures
www.berkeleygroup.co.uk/esg
Non-financial and sustainability
information statement
page 89
Strong governance
Our Vision 2030 is overseen by a
team at Group level and managed by
a network of subject matter experts
across the business. Monthly Board
meetings are held with the CEO, CFO,
Responsible Business Executive
and Head of Sustainability. We
use the existing network of Group
committees (see page 119) to embed
Our Vision 2030, drive progress and
communicate on the priorities.
Embedding it
day‑to‑day
Our Vision 2030 is underpinned
by detailed policies, standards
and management systems in areas
such as sustainability and health and
safety. These set a clear framework
for the teams within each of our
autonomous businesses to follow.
Building Awards 2023
Housebuilder of the Year
RESI Awards 2024
Large Developer of the Year
National Sustainability Awards 2023
Conservation Award
In-house Research
Outstanding Achievement Award
for ten years running
Better Society Awards 2024
Environment Award
Policies
We have policies in place to govern
our day-to-day activities and
the behaviour of our employees,
partners and supply chain across
key topics such as business ethics,
human rights, sustainability, quality,
health, safety and wellbeing.
Kidbrooke Village, Greenwich
Construction activity at Bow Green
01–103 | Strategic Report
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165–232 | Financial Statements
34 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 35
Our Vision 2030 strategy overview
Places that stand the test of time
What we create
Customers
Quality
Communities
Climate action
Nature
Put our customers
at the heart of our
decisions and provide
an industry-leading
home buying
experience.
Lead the industry
in producing high
quality, safe homes
for all.
Transform underused
land into unique,
well connected and
welcoming places
where people
and communities
can thrive for the
long‑term.
Play an active role
in tackling the global
climate emergency by
creating low carbon,
resilient homes.
Create a biodiversity
net gain (BNG) and
make a measurable
contribution to the
natural environment
on every
development.
Maintaining the trust,
loyalty and advocacy
of our customers
is fundamental to
our business model
and sets Berkeley
apart from other
homebuilding brands.
Creating unique
homes and places
of lasting quality
is fundamental
to our brand,
purpose, values
and working culture.
Long-term
regeneration and
placemaking
can strengthen
communities and
make a lasting
positive difference
to people’s lives.
We believe every
business has a duty
to tackle the global
climate emergency
and we want to
continue leading our
industry in taking
decisive action.
We want to play a
lead role in nature’s
recovery and to
create more beautiful,
wild and open
spaces in the heart
of cities, towns and
communities.
Long-term goal
Why is this a priority?
Link to stakeholders
Link to risks
Our business strategy sets out our vision to maximise
our positive impact on society, the economy and
the natural world through 10 strategic priorities. It is
an integrated and holistic strategy, so each priority
supports the others and makes a valuable contribution
to achieving our vision.
Scan the code
to read more about
Our Vision 2030
1
4
5
7
9
13
3
6
7
13
14
4
5
11
13
10
11
13
10
11
13
— Environment
— Customers
— Communities and
local government
— Environment
— Customers
— Government,
regulators
and industry
— Customers
— Communities and
local government
— Customers
— Government,
regulators
and industry
— Customers
Exceptional people and resources
How we work
Employee
experience
Modernised
production
Future
skills
Supply
chain
Shared
value
Create a positive
working environment
for our people; one
that fosters respect,
support, wellbeing,
safety and inclusivity.
Innovate and harness
modern methods of
construction and
digital technology
to achieve
higher standards
of quality, safety
and sustainability.
Equip our people with
the skills they need
both now and for the
future, enhancing
social mobility and
inspiring new talent
to join the industry.
Build a responsible
and constructive
supply chain; one
that is productive,
practical and
profitable,
sustainable, ethical
and dependable.
Allocate capital to
deliver sustainable
returns to our
shareholders whilst
creating value for our
other stakeholders
including through
the work of the
Berkeley Foundation.
Our highly skilled
people are the drivers
of our success and
we want to build
an increasingly
diverse, talented and
productive workforce.
We want to address
the housing need,
whilst delivering
higher standards for
our customers and
creating a sustainable
and increased skills
base for the future.
We want our people
to have the skills to
embrace innovative
technologies and
working practices,
while attracting a
new generation to
drive our growth.
We want to maintain
strong partnerships
with our supply chain,
sharing goals and
collaborating to
ensure we are the
client of first choice.
We want to make
a lasting positive
impact, using our
unique operating
model and resources
to fulfil our purpose
and deliver value
for all.
Long-term goal
Why is this a priority?
Link to stakeholders
Link to risks
6
12
11
12
13
14
6
14
1
2
10
11
12
14
1
2
3
8
Key | Risks
1
Economic outlook
2
Political outlook
3
Regulation
4
Land availability
5
Planning process
6
Retaining people
7
Securing sales
8
Liquidity
9
Mortgages
10 Climate change
11 Sustainability
12 Health and safety
13 Product quality and customers
14 Build cost and programme
15 Cyber and data risk
— Customers
— Communities and
local government
— Employees
— Government,
regulators and
industry
— Environment
— Supply chain
— Investors
— Supply chain
— Environment
— Employees
— Supply chain
— Customers
— Supply chain
— Government,
regulators
and industry
— Employees
— Supply chain
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Berkeley Group 2024 Annual Report | 37
Our Vision 2030 progress
Places that stand the test of time
What we create
Customers
Quality
Communities
Climate action
Nature
— A personalised
experience for
our customers,
resulting in an
industry-leading
Net Promoter
Score (NPS)
of 80.2.
— 10 years of
outstanding
customer
experience,
demonstrated
through the In-
house Research
Gold Award and
Outstanding
Achievement
Award.
— Updated our
arrangements for
Building Safety
and Quality
Assurance (BSQA)
in line with the
Building Safety
Act.
— Upskilled our
teams through
detailed training
and a new guide to
the Building Safety
Act.
— 63% of our homes
had zero defects
compared to just
5% across industry.
— Progressed with
the development
of our long-term
regeneration sites.
— Delivered 3,927
private and
affordable homes.
— Made community
contributions of
£370m.
— Extending
Community
Plans across all
developments.
— Delivering 515
public amenities
such as shops and
play areas.
— Achieved a
place on CDP’s
prestigious
Climate A List for
transparency and
performance.
— Completed 48
embodied carbon
studies to date.
— Engaged with
aluminium
manufacturers
on lower carbon
products.
— Progressed with
developing our
Net Zero Transition
Plan.
— Led the industry
on BNG for seven
years, developing
strategies for
more than 56
sites ahead of
it becoming
mandatory.
— Partnered with
Natural England
in delivering a
series of sessions
to upskill Local
Authorities and
SMEs on BNG.
— Progressed with
our approach to
environmental
net gain.
Achieve a Net
Promoter Score
of 70 or above
annually.
Achieve a
Recommend to
a Friend Score
of at least 95%
annually.
Encourage 90%
customers sign up
to MyHome Plus,
our customer
information
portal.
Transform our
digital offering to
enable customers
to interact with us
24/7 by 2026.
Adjust and embed
processes in
response to the
Building Safety
Act requirements.
Ensure
appropriate
competence
of our people
and supply chain
for building safety.
Further enhance
our internal
training
programme for
building safety,
year by year.
Deliver all homes
to RoSPA’s Safer
by Design Gold
standard.
Target 90% of our
homes to be built
on brownfield
land.
Embed a
Community
Plan on all
developments by
2026.
Maximise the
value to society
that each
development
brings.
Work with
external experts
to assess
people’s quality
of life on new
developments.
Undertake
embodied carbon
assessments and
target reductions
for each
development.
Engage with
manufacturers
of the top five
impact materials
by 2026.
Re-baseline and
achieve validation
on our science-
based targets and
Net Zero target.
Achieve a
15% reduction
in energy
consumption from
2023 to 2030.
Develop an overall
approach for
environmental
net gain and trial
it by 2025.
Assess the impact
of nature within
our supply chain
in line with the
Taskforce on
Nature-related
Financial
Disclosures
(TNFD).
Reduce
construction
waste intensity
by 50% by 2026
compared to
2023.
2024 Performance highlights
2023–2029 key medium-term targets
Exceptional people and resources
How we work
Employee
experience
Modernised
production
Future
skills
Supply
chain
Shared
value
2024 performance highlights
2023–2029 key medium-term targets
— Hosted a series of
events in support
of our approach
to equity, diversity
and inclusion
(EDI).
— Created action
plans to improve
employee
engagement.
— Maintained
industry-leading
health & safety
standards and
introduced a new
app to encourage
any issues to be
raised.
— Continued to
implement our
bespoke system
for capturing
digital information
about each
home from pre-
construction to
post-completion.
— The vast majority
of our projects use
pre-manufactured
assemblies and
components.
— Investigated
innovative
techniques and
products.
— Retained Gold
membership of
The 5% Club,
with 9.5% of our
employees in
‘earn and learn’
positions.
— Expanded our
apprenticeship
programmes to
support social
mobility and
diversity and
provide a range of
entry routes.
— Ran almost 200
skills events with
schools and
communities.
— Held a Group-
wide supply chain
conference with
more than 170
trade contractors,
manufacturers and
consultants.
— Supported our
supply chain with
understanding
and responding
to the evolving
requirements of
the Building Safety
Act and product
provenance.
— Ran training
on combatting
Modern Slavery.
— Achieved a pre-tax
return on equity of
16.2%.
— Contributed
£2.5bn to UK GDP
in FY24, including
an average of
£290k per home of
value to the state
through taxation
and contributions
to the community.
— Continued
to support
the Berkeley
Foundation,
with employees
raising £940k and
volunteering 1,990
hours of time.
Achieved
Increase staff
engagement year-
on-year.
Embed our
approach to
Equity, Diversity
and Inclusion
(EDI), focusing
on leadership,
awareness and
training.
Achieve an AIIR
of 250 or below
per 100,000,
targeting zero
harm.
Raise the
proportion
of women in
management
positions to 33%
by 2026.
Further embed
our new digital
platform to
capture the
‘golden thread’
of information for
every home.
Apartment
schemes over 18m
to utilise Building
Information
Modelling (BIM).
Measure and
increase the
proportion of
Pre Manufactured
Value (PMV)
within our
developments.
Ensure the
Berkeley
Competency
Framework is
being effectively
implemented.
Maintain
membership of
The 5% Club.
Host a range
of careers
events focused
on increasing
the diversity
of individuals
attracted to work
in the industry.
Gift
Apprenticeship
Levy to support
SMEs.
Achieve the
requirements of
the Chartered
Institute of
Procurement and
Supply (CIPS)
Excellence Award
by 2027.
Work with Code
for Construction
Product
Information
(CCPI) to ensure
information
standards are
improved across
the supply chain
by 2026.
Assess all
contractors for
modern slavery
risk.
Achieve a 15%
pre-tax return
on equity across
the cycle.
Increase
employee
engagement with
the Foundation
year-on-year.
Leverage skills
and expertise
across the Group
to support the
Foundation’s
charity partners.
Demonstrate
the impact of
the Berkeley
Foundation’s work
supported by the
Group.
On track
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Berkeley Group 2024 Annual Report | 39
A personal
touch for our
customers
Buying a new home is a significant
milestone and we strive to make
this an enjoyable and exciting
experience, setting standards for
the wider industry to match. From
exceptional customer service to
the quality of our homes, we aim
to delight our customers in
every detail.
Our highly trained in-house
sales and customer teams are
equipped with the skills and values
to connect with our customers.
From the moment a customer first
contacts us, we provide a personal
touch, getting to know them and
supporting them throughout their
journey to buying and settling into
their new home. We complement
face-to-face communications with
virtual tours and video updates
and use MyHome Plus, a custom-
built interactive portal for sharing
information about our homes,
the buying process and
customer choices.
+80.2
Net Promoter Score
compared to an industry
average of 44 (HBF,
March 2024)
91%
of our homes had zero
defects or fewer than
five defects, as reported
by our customers
98%
customers would
recommend us to
a friend, compared
to an industry
average of 90 (HBF,
March 2024)
Our Vision 2030 progress continued
10 years of
outstanding
customer
experience
We use an independent market
research agency to measure
customer satisfaction using two
nationally recognised metrics. We
consistently score above industry
averages. This year we celebrated
our 10th consecutive year rated
as outstanding by In-house
Research and were also delighted
to have collected a ‘Gold Award’
in recognition of our outstanding
customer service and high
quality homes.
We fully support the revised
Consumer Code for Home Builders
launched this year which aims to
ensure home buyers are treated
fairly, know what service levels
to expect, are given reliable
information and can access dispute
resolution arrangements. We have
refreshed training and processes
for our customer-facing teams to
ensure that we remain compliant.
Our Vision 2030 is helping
to drive our performance,
spur innovation and
reinforce Berkeley’s position
as a responsible and
sustainable developer.
This section highlights key
initiatives and progress
across our 10 priorities.
The Berkeley Group’s unwavering commitment
to excellence and dedication to ensuring
customer satisfaction is deserving of this
remarkable achievement, winning both the
prestigious 2024 Outstanding Achievement
Award for Customer Satisfaction in the
housebuilding industry alongside the 2024
Gold Award. The outstanding performance
is a testament to Berkeley’s hard work and
the commitment to ensuring customers
are satisfied throughout their purchase.
Tom Weston | Chief Executive Officer, In-house Research
Strategy in action
Delivering high
quality homes
We pride ourselves on our
reputation for quality. This drives
all of our teams on a daily basis
from the initial planning of each
development, through to
detailed design, construction
and completion.
We instil a culture in our teams to
focus on all aspects of a home’s
delivery, from intrinsic building
safety and design to the final
finishes visible to the customer. We
maintain stringent Building Safety
and Quality Assurance (BSQA)
arrangements that ensure work
is inspected and approved at all
stages – and, in particular at new
key regulatory gateways – before
handover to the customer.
Excellence
through detail
A personalised
customer journey
Follow up post enquiry
Visit to development sales
and marketing suite
Follow up post visit
Meet and greet post
reservation
Ad hoc video updates
of site progression
Customer moving in
guide provided
Meet the team
community evening
Customer open day
to measure up
Handover to the customer
Continued support
A focus
on quality
Quality training for all
construction staff
Detailed training on high
risk areas
Robust internal standards
and processes
First line of defence
Site controls and checks
Second line of defence
Local quality team checks
Third line of defence
Group quality team checks
Regulatory compliance
Regulatory requirements
and submissions
Customer
service
teams and
opportunity to
provide
feedback
Two year
warranty
covered by
Berkeley
10 year
build warranty
through a
third-party
provider
Work in
partnership
to ensure the
stewardship
of communal
spaces and
facilities
Key | Strategy
Customers
Quality
Communities
Climate action
Nature
Employee experience
Modernised production
Future skills
Supply chain
Shared value
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Our Vision 2030 progress continued
Using
Community
Plans to
bring
neighbours
together
Each regeneration site with
residents in place has a Community
Plan and we are now creating them
for all developments, from early
community engagement to long-
term governance and stewardship.
Every plan is bespoke, built on
community engagement and
underpinned by research into
community priorities and needs.
The plans identify actions and
opportunities for activities, projects
and strong local partnerships, which
help to support the development of
a thriving neighbourhood.
Our specialism is the regeneration
of well-connected brownfield sites
in the heart of our towns and cities.
Reviving neglected sites is often the
most sustainable place to build new
homes, breathing life into existing
communities and delivering new
homes, amenities, jobs and growth
where they are needed most.
We continue to progress with 32
long-term regeneration sites.
For example, the community-
led regeneration of Woodberry
Down will deliver 5,500 mixed-
tenure homes in total. Over the
last 15 years, this partnership has
delivered more than 2,300 mixed-
tenure homes, the first 7.5 acres
of parkland, a new home for the
Redmond Community Centre,
boardwalk access to Woodberry
Wetlands, and many shops and
eateries for local people to enjoy.
More than £25 million has been
invested in community infrastructure
through section 106 contributions.
Community
engagement
Community
needs analysis
Vision for the
community
Partnerships
Schedule of
engagement
Quality of life
Long-term governance
and stewardship
At Oval Village there
was a need for more
commercial space
within the local area.
In response, we are
building a BREEAM
‘Excellent’ and WELL
certified office space for
more than 750 people.
Your Story, a local
charity, needed a space
to hold family forums
and we now provide
them with a monthly
meeting space, as well
as supporting them on
various other community
projects.
Meaningful community
engagement is the
vital first step on every
project to understand
local communities
and key stakeholders
and involve them in
shaping our proposed
developments from the
outset. This year we
have updated guidance
for our teams and are
supporting the Quality
of Life Foundation by
testing their community
engagement charter.
At Bromley-by-Bow,
plans to redevelop
the Grade II Listed
gasholders have been
shaped not only through
public exhibitions and
consultations, but
through more than 270
people attending art and
heritage site tours and
engaging with more than
300 local young people
through a mix of careers
events and workshops.
Community engagement
and local research
enables us to understand
the interests, aspirations
and needs of local
stakeholders. We seek
to address both physical
and social needs; for
example, actions to
combat people feeling
unsafe could include
improving lighting
and enhancing design,
setting up safety
partnership groups or
hosting Ward Panel
meetings.
We use the information
gathered to set an
initial vision for the
development, taking
into account the specific
site attributes, needs
of the area and desired
outcomes. This is
updated as we continue
to engage and develop
the proposals.
At Poplar Riverside,
the vision for the
development is to
be East London’s
most progressive
riverside community,
motivating people to
be more sustainable
and inspiring them to
appreciate and nurture
the natural landscape
they live in. In addition
to the riverside park,
we will provide a new
community green at the
heart of the development
for all to use.
Partnerships allow for
the development of long-
lasting projects where
resources are shared,
participation levels increase,
and communications
are broadened. The
considerations for
redevelopment within a
local area can be complex
and require the application
of many minds to address
them; partnerships are often
the most effective form of
decision making.
St George partners with
the East End Community
Foundation to deliver the
London Dock Community
Fund, which has provided
funding for more than 90
projects in line with local
need. Also at London Dock,
we have an established
partnership with Bow Arts
Trust, who manage the
meanwhile use of affordable
arts studios. Almost 40 local
artists are in residence at the
site and they have a schools
programme in place to
encourage greater access to,
and interaction with, the arts.
With our partners and
stakeholders, we create a
programme of community
events and engagement
activities based on
identified needs to support
residents and the wider
local community. Through
programmes of community-
oriented events, we help
to create environments
where locals can meet with
their neighbours, interact
with different generations
and give back through
volunteering within
the community.
At Hartland Village we run
and support a range of
community events from
World Mental Health Day
to summer barbeques,
photography competitions
and cultural celebrations. We
have also connected local
businesses, organisations
and residents which has
led to a number of positive
initiatives such as the
Men’s Sheds Association,
encouraging people to come
together to support projects
in their local communities.
We recognise that the
ultimate test of each
place is through the
lived experiences of our
customers and residents.
Surveys can help to evaluate
the successes, and feed any
learnings into future phases
and developments.
This year at Highwood
Village we have been
working with State of Life to
survey residents using the
Wellby approach, which aims
to assess the experience of
our customers and residents
living at the development,
helping us to learn further
about what our customers
and communities want.
We look to establish the
most appropriate form of
long term governance for
each site, which gives local
residents clear ownership
and agency over the way
their neighbourhood is
managed and looked after
long into the future. We
actively encourage residents
to join and form social clubs
and decision-making bodies
which shape and influence
the local area in the long-
term.
At Woodhurst Park, we
provided a community fund
of up to £5,000 per year for
the first five years to provide
a catalyst for the community
to evolve. The Community
Plan and all communications
are now managed by the
Woodhurst Park Residents’
Events Committee. They
are self-facilitated and
coordinated and assume
responsibility for a
programme of annual events
and established clubs such
as gardening and tennis.
15
years of partnership
at Woodberry Down
A focus on
brownfield sites
where we can
make valuable
and enduring
contributions
Woodberry Down, Hackney
25
Community Plans
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Our Vision 2030 progress continued
Lowering carbon from
construction activities
92%
developments under
construction incorporate
community facilities
515
public amenities overall,
including:
10
schools providing 5,900
places, together with 14
children’s nurseries
20
indoor community spaces
20
sports facilities
Playing our part
in climate action
In 2020 we set independently
validated science-based targets
(SBTs) to reduce our carbon
emissions and we were pleased
to have met our scopes 1 and 2
target for 2030 several years early
in 2023. As a result of our progress
against our targets, together with
our planned journey to net zero
and extensive investigation and
collaboration on embodied carbon,
we are delighted to be recognised
by CDP as a climate leader
and awarded their highest
available rating.
This year we have been compiling
our Net Zero Transition Plan,
recalculating our near-term SBTs
and setting a long-term target
for net zero using the latest best
practice guidance. Further detail
is provided in the climate-related
disclosures section on pages 74
to 77.
We set high energy efficiency
standards for our sites and are
increasingly replacing traditional
fossil diesel with low carbon
biodiesel in construction, together
with adopting renewable
technology and hybrid or
electric machinery.
As part of our proactive approach
to eliminate fossil diesel from
our sites, 96% of our directly
purchased diesel was biodiesel
HVO (Hydrotreated Vegetable Oil),
saving more than 850 tonnes of
direct emissions. We are working
with our contractors to include
biodiesel HVO as a requirement
within packages, where we cannot
eliminate fossil diesel-powered
plant completely. At London Dock,
diesel-powered wacker plates have
been replaced with fully-electric
alternatives. This year 17 of our sites
operated fossil diesel free.
Several sites incorporate renewable
technologies into their construction
set up, such as photovoltaic (PV)
panels to power the site cabins, or
‘Solar Loos’.
This year some of our sites have
adopted energy monitoring systems
and consumption alarms, helping
us to understand consumption
patterns in more detail, particularly
out of hours usage.
Audits of our sites and offices
were completed by the Carbon
Trust as part of the Energy Savings
Opportunity Scheme (ESOS). We
will use the recommendations to
strengthen our energy reduction
standards for sites, offices and
sales suites.
Delivering amenities and
connecting new developments
We provide the physical
infrastructure to keep our
neighbourhoods connected,
including delivering or contributing to
new roads, bridges and train stations
where needed. Reading Green Park
Station opened this year, providing a
sustainable travel option for residents
and businesses in the Green Park
Village area, the first station to open
in Reading for more than 100 years.
We prioritise the early delivery of
public amenities and natural spaces
to ensure local communities feel the
benefits of regeneration as soon
as possible. This year we opened
a range of new facilities including
Parkside Yards at The Green
Quarter, with an outdoor piazza
and opportunities to eat, meet,
drink, work, play, and shop in green
surroundings. We also became the
first major developer to deliver padel
courts on a residential scheme in the
UK. At Horlicks, the memorial square,
residents’ facilities, a new cafe and a
central piazza have opened and plans
are underway for a day nursery.
Our homes and communities are also
digitally-connected from move-in day
to serve our customers’ needs.
Earning a place on the A
List is about more than the
score. It’s an indication of
high quality, complete data
that equips companies
with a holistic view of their
environmental impact, serves
as a baseline for transition
plans and – crucially – enables
them to follow through on
their ambitions.
Sherry Madera | CEO, CDP
The Green Quarter, Ealing
Construction activity at Woodberry Down,
Finsbury Park
96%
directly purchased diesel was
biodiesel HVO, with 17 sites
operating fossil diesel free
77%
reduction in scopes 1 and 2
emissions since 2019
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Our Vision 2030 progress continued
Reducing
embodied
carbon
Since 2021 we have completed 48
embodied carbon assessments
across a range of developments and
building types. Our knowledge of
the impact of design, specification
and sourcing of materials continues
to grow and our teams are
identifying ways to drive down
embodied carbon. Since we set our
SBTs and stringent internal targets
for embodied carbon, there have
been changes to the regulatory and
policy landscape. New Approved
Documents to meet the building
regulations often require additional
secondary staircases, lifts and
mechanical and ventilation systems,
whilst planning policy in some areas
has altered core design and led to
more heavily articulated façades, all
factors which increase embodied
carbon and build costs. We are
currently reviewing the impact
of these changes and updating
internal guidance for our teams.
Through wind tunnel testing at
Paddington Green, we have been
able to reduce concrete volume in a
building by a third. We also intend
to reuse existing materials on site to
reduce the volume of new concrete
required and to incorporate the use
of high recycled content aluminium
within the façade. At Wandsworth
Mills, a significant volume of
embodied carbon has been saved
through the reuse of historical
buildings, combined with plans
for the new buildings that reduce
concrete volumes and the density
of rebar and alter the glazing
specification and aluminium frames.
Driving climate
action within
our supply
chain and
industry
Whilst our teams can take action
through design and specification
and sourcing choices, the embodied
carbon of materials is outside of
our direct control and it is essential
that we – and others – engage
with product manufacturers
and send strong signals of our
decarbonisation aims. We have
been engaging with our supply
chain over several years and are
delighted to have been listed as a
CDP Supplier Engagement Leader
in 2023.
This year we have implemented a
supply chain engagement strategy
for high carbon impact material
groups, beginning with a detailed
review of aluminium manufacturers.
They were found to already be
reducing their operational carbon
and the carbon intensity of their
products, but we will now be
working together to maximise the
available benefits at a project level.
Detailed information and guidance
has been shared with our project
teams to ensure the identified
carbon savings are made.
We play an active role in several
industry working groups and use
our knowledge and lessons learnt
to contribute fully to the debate
around a just transition to Net Zero,
including through the Future Homes
Hub and the UK Green Building
Council (UKGBC).
Leading the
industry on
biodiversity
net gain
Having championed and pioneered
the successful implementation of
biodiversity net gain (BNG) on
new developments since 2017, we
welcomed the national milestone
of mandatory BNG for new
developments in February 2024.
We were delighted to have been
cited as a best practice case study
for the launch of mandatory BNG
by Government and public bodies.
Our Head of Sustainability chaired
the Construction Leadership
Council’s Biodiversity and
Environmental Net Gain Group
which published a Biodiversity
Roadmap for the industry in
February 2024.
56
developments committed
to BNG since May 2017
48
embodied carbon
studies completed
93%
completed homes achieved
an EPC rating of B or above
>580
acres of newly created
or enhanced habitat
Scan the code
to watch a video about some
of Berkeley’s BNG sites and the
many benefits they offer local
communities and wildlife.
Strategy in action
Partnering with Natural
England to upskill local
authorities on BNG
Berkeley brought real insight
to the sessions, providing
inspiring examples of how
they have successfully
delivered BNG on their
schemes with tips and ideas
that could be transferable
to and implemented by
SME developers
Nick White | Principal Advisor,
Natural England
Building on our collaboration
with Natural England and the
Local Government Association
to run the Biodiversity
Conference for the industry
in February 2023, this year
we partnered with Natural
England to run a number of
smaller sessions aimed at
upskilling local authorities, SME
housebuilders and local habitat
bank biodiversity unit providers.
One of the sessions was
held at Sunningdale Park, a
development that will achieve
a 280% biodiversity net gain,
reconnecting the previously
inaccessible 47 acres of Grade
II Listed historic parkland to the
community for the first time
in centuries.
Designing lower
carbon, resilient
homes for
our customers
Carbon emissions from homes are
heavily regulated and there has
been significant focus on this for a
number of years across the industry.
The first step is to design and
specify a high performing building
fabric, followed by the most
appropriate renewable and low
carbon technologies for each site.
This year, Government consulted
on the Future Homes and
Buildings Standards. In advance
of this, we have been preparing
our developments for the move
away from gas boilers towards
heat pumps and are supportive
of incorporating additional
technologies such as solar PV
panels on houses to reduce energy
bills for our customers. On our
long-term regeneration sites, the
energy transition can be more
complex, with phased delivery of
new homes and energy strategies
often approved many years ago in
line with local or regional planning
policy and infrastructure in place at
the time.
We continue to take a holistic
view to climate, using our focus on
creating nature-rich landscapes to
ensure developments are adapted
to future climate change impacts,
using nature-based solutions and
with each of our sites incorporating
sustainable drainage systems
(SuDS).
Sunningdale Park, Berkshire
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Our Vision 2030 progress continued
Delivering
bespoke
solutions
on every
site to connect
people
with nature
Our landscape-led developments
enhance the environment and
provide beautiful, friendly and
sustainable places where people
can interact with nature. We obtain
specialist, external support from
a qualified ecologist using local
knowledge and emerging nature
recovery strategies to understand
the priorities specific to each
site. We then incorporate the
recommendations in a bespoke and
locally appropriate way.
We typically work with local Wildlife
Trusts to engage communities in
landscape design, nature recovery
and the long-term stewardship of
the biodiverse places we create.
We are delighted to be working
with the London Wildlife Trust
on a broader project to upskill
our project teams, landscape
contractors and managing agents
to ensure the habitats we create
and enhance are appropriately
maintained and managed.
The benefit of greening new
developments and our towns
and cities is vast, not only for the
natural environment and resilience
to climate change, but also for
customers and communities. This
year we sponsored Create Streets
to produce its Greening Up report
for local authorities, focusing on
how trees and other habitats can be
incorporated within existing streets.
Expanding BNG to
environmental net gain
Strategy in action
The Green
Quarter – a
place for people,
communities
and nature
The 88-acre former Southall Gasworks is being
transformed into a nature-rich neighbourhood
of 3,750 homes, characterised by 13 acres of
beautiful parks, meadows and wetlands, designed
in partnership with the London Wildlife Trust.
Close to half of the site will be public space,
including a mix of natural habitats, fitness
trails, public squares, outdoor event space and
children’s play and recreation areas. The new
neighbourhood also brings a wide range of public
amenities to Southall, including a health centre,
primary school, community centre and a mix of
shops, cafés and office space.
Scan the code
to read the 2024 Community Social
Impact report for The Green Quarter
We are expanding our established
approach to enhancing biodiversity
to deliver an even more valuable
and holistic contribution to the
environment on every site. An initial
step was to trial water neutrality
in a first pilot of this scale at Royal
Exchange in Kingston, an award-
winning project with Thames Water.
This year we have used specialist
support to identify metrics which
we will now trial to demonstrate
net gain across other topics within
our framework, including climate,
pollution and water.
Alongside our own work, we have
reviewed the recommendations of
the Taskforce for Nature-related
Financial Disclosures (TNFD) to
ensure we are prepared for future
reporting requirements in this area.
A focus this year has been the
launch of our new Waste Strategy
to target zero avoidable waste
on every site by 2030. Our teams
have been running ‘designing out
waste’ workshops to highlight areas
where waste can be minimised.
For example, at Bow Green, cobble
stones that were found on site have
been cleaned and reused to pave
the sales suite entrance.
Whilst making progress in
these areas, we continue to
operate strong environmental
management practices and our
network of dedicated sustainability
practitioners undertake regular
audits of our construction activities.
Each year we also complete an
audit of procurement practices to
ensure timber and wood-based
products are certified.
Climate
Carbon sequestration
Cooling and shading
Pollution
Air quality
Noise reduction
Light reduction
Water
Water supply
Water quality
Flooding
Ecological
Access to nature
Soil health
Pollination
Habitats
Species
This year we have been delighted to have worked
in partnership to deliver the following at The Green
Quarter:
— More than 65 community activities and events,
engaging more than 8,000 local people and
bringing together the local community.
— Supported more than 35 apprentices, hosted 12
work experience placements and 28 site tours.
There have also been nearly 30 engagement
sessions with local schools to showcase the range
of careers available within the built environment
sector.
— A new electric bike hire scheme has been launched,
helping residents and the local community travel
sustainably between the station and all areas of
the development.
— A new tree nursery, consisting of 600 air-potted
trees of six different species grown in the UK. These
will remain on site for at least 15 years before being
planted for permanent use across future St George
developments.
— A 14-week youth leadership programme with
Groundwork London, one of the Berkeley
Foundation’s Strategic Partners, alongside Southall
Community College.
— A ‘Go Green’ event in October 2023 which
brought the community together in celebration
of sustainability and the great outdoors, including
workshops led by the London Wildlife Trust.
— A Meanwhile use community hub, Parkside Yards,
with retail opportunities and creative activities
for all.
Tree nursery at The Green Quarter
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24
dedicated safety visits by
directors at each site per year
52
Annual Injury Incidence Rate
per 100,000 people
Our Vision 2030 progress continued
Taking action on Equity,
Diversity and Inclusion
Our goal is to foster an environment
where all differences are valued,
practices are equitable and
everyone experiences a sense
of belonging.
In summer 2023 we launched our
approach to EDI focused across five
areas:
— Setting the tone by leading from
the top.
— Partnering with external
organisations that can support us
on our journey.
— Awareness, allyship and
celebration.
— Attracting and recruiting the best
talent.
— Using analytics and feedback to
drive change.
We have signed up to the
Fairness, Inclusion and Respect
(FIR) programme, an industry-
wide initiative that aims to make
workplaces better for everyone.
We are currently growing our
network of FIR ambassadors in
a variety of job roles and levels
of the business.
Each of our operating companies
is taking action to enhance EDI
locally. EDI training is delivered for
new starters all the way through to
senior leadership teams. We have
also increased our mechanisms for
supporting and listening to staff
by creating networks, including for
Women, LGBTQ+, Ethnic Minorities
and Parents and Carers and their
allies.
We have also brought colleagues
together from across the Group
for events such as the London
Pride Parade and International
Women’s Day, with an emphasis
on celebration, networking and
allyship. In July we held our first
event for women in the construction
department, a historically
underrepresented area. We
learned from their experiences and
offered 10 individuals a place on
the Mentoring Circle Programme,
supporting them to grow in their
own roles and become the senior
leaders of the future.
32%
line managers are female
We continue to target zero harm on
every site, as we champion health
and safety for every employee and
contractor working with us. We
have an established and robust
approach, helping us to consistently
outperform the industry; our Annual
Injury Incidence Rate for the year is
52 per 100,000 people, compared
to an industry average of 296 (HSE,
October 2023).
Our teams operate to stringent
health and safety standards set out
at a Group level. They are regularly
assessed by a Group audit team,
which completed more than 320
audits this year. We have updated
our strategy, maintaining our
three established programmes:
Good Order targeting the physical
working environment; Good Work
focusing on risk management and
encouraging positive behaviour
and attitudes; and Good Health
targeting improvements in health
and wellbeing. The nature of
regeneration and developing
apartments results in higher risk
activities which must be managed.
Our Working at Height campaign
remains in place to instil a focus
on this key topic and we apply the
same high standards to all of
our sites.
Within each of our operating
companies there are local
arrangements, including detailed
procedures and processes.
Directors undertake dedicated
safety visits twice a month on every
site to maintain strong leadership,
totalling more than 1,700 during the
year. We have a large team of more
than 50 divisional health and safety
managers who provide expert
advice and guidance to the teams
on a daily basis extending across
safety, occupational health and
wellbeing, and welfare standards.
Strategy in action
This year we have launched
a new intervention app to
provide an easy way for our
teams to report any potential
issues. Colleagues can
anonymously log an issue using
a phone or tablet by scanning
a QR code on posters around
the site. In addition to health
and safety we have included
sustainability topics such
as pollution prevention and the
protection of nature.
Encouraging our site
teams to raise issues
We are proud to have once again
been recognised by the Royal
Society for the Prevention of
Accidents (RoSPA) in 2024, with
Berkeley Capital winning the
Construction Housebuilding &
Property Development Industry
Sector award.
We continue to work with RoSPA
in our long-term partnership to
extend our influence out of the
homebuilding sector, with current
sponsorship supporting a falls
prevention programme focused
on vulnerable people living in social
housing and social care.
Engaging with
our employees
Our 2023 employee survey
provided useful insight into how our
colleagues feel about working life
at Berkeley, guiding us in creating
action plans for improvement within
each of our operating businesses
and through our cross-divisional
People Committee.
Since the last survey we were able
to demonstrate a number of positive
changes including: an increased
focus on health and wellbeing; the
introduction of core working hours
to allow for more agile working; the
launch of our approach to Equity,
Diversity and Inclusion (EDI); and
investment in a number of our office
facilities.
Our employees are clear on business
goals and objectives, helping them
feel confident in what is expected
of them. In addition, many feel
challenged each day and remark
that Berkeley has given them
opportunities that they do not
believe they would have elsewhere.
We will now focus on our current
areas for improvement to enhance
the experience of all employees at
Berkeley, including further focus
on women within the business and
progression pathways.
Maintaining industry-leading
standards of health and safety
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Our Vision 2030 progress continued
Improving
mental health
and wellbeing
Each of our operating businesses
offers a range of initiatives with the
aim of having a positive impact on
the health of our employees. We
now have more than 260 mental
health first aiders.
We also scheduled a range of
interactive sessions with Mental
Health professionals that were
available for all staff to attend.
These covered topics such as
Financial Wellbeing, Building
Resiliance and Supporting
Working Parents.
We recognise the potential to
influence more than 8,500 people
on a daily basis through our
contractor workforce. Within our
Berkeley Capital business, a Mental
Health Awareness Roadshow was
held which included a partnership
with The Lions Barber Collective,
an international collection of top
barbers that have come together
to help raise awareness for the
prevention of suicide. We are also
working with The Lighthouse
Construction Industry Charity to
raise awareness of mental health
on our sites.
Investing in the
talent of the future
We retain our Gold membership
of The 5% Club, with 9.5% of our
employees in ‘earn and learn’
positions. On average, this includes
more than 150 apprentices, 50
graduates and 55 sponsored
students studying towards an
accredited external qualification.
Our graduate programme is listed
10th on the Job Crowd’s Top 50
Graduate Schemes and won the
best scheme in the Property &
Housebuilding industry.
This year we extended our
apprenticeship programme
to provide a broader range of
opportunities and programmes
into the business to support
diversity and social mobility.
In addition, we work with our supply
chain to grow their own talent and
help to tackle some of the industry’s
skills shortages; this year more than
325 additional apprentices gained
experience working on our sites.
We also gifted £100,000 of our
unallocated Apprenticeship Levy
through Workwhile, with a particular
focus on built environment roles
within London’s SMEs.
9.5%
employees in ‘earn
and learn’ roles
Inspiring
people to join
the industry
We believe that every business
within the built environment sector
has a role to play in attracting
people to join the industry. We
undertake a range of engagement
activities with people who may
not typically be aware of the range
of fulfilling careers available and
are growing our network of STEM
(Science, Technology, Engineering
and Maths) ambassadors who
can raise awareness of careers in
Berkeley and the wider sector.
This year we ran almost 200 careers
events with schools, colleges and
universities, together with more
than 55 work placements to give
people an opportunity to experience
working life in the sector. These
included placements for several
students studying towards the
new T Level programme in Design,
Surveying and Planning.
In June we ran a T Level insights
day for trainers and colleges to
hear from industry about topics
such as sustainability and Building
Information Modelling (BIM).
Enhancing social mobility
and diversity through
our programmes
We recognise the opportunity to
enhance social mobility through
providing a range of good jobs
local to the communities in which
we work.
We have signed up to the Social
Mobility Foundation’s pledge as a
framework to help us strengthen
our approach. We want to provide
a range of routes into the company,
to attract a broad range of people
from different backgrounds,
including those who may not have
previously considered the sector.
We have introduced Group-wide
apprenticeship programmes at
level 3, using updated recruitment
practices. We are now using video
content on social media platforms,
understanding the change in
mindset around how young people
learn about job opportunities.
In addition, we removed CVs
and designed an anonymised
assessment, which was blind
of background, education and
experience and based solely on an
applicant’s ability to complete job-
relevant tasks.
Upskilling our employees
We run training for employees
across a range of topics, from
health and safety, to building quality
and sustainability. The Berkeley
Academy is an Approved Training
Organisation (ATO) with the CITB
(Construction Industry Training
Board) and delivers training for
our employees across two training
centres. In addition, our divisions
run training locally covering
topics such as leadership and
management skills, and EDI.
Colleagues are also given the
opportunity to upskill using external
qualifications or apprenticeships,
with more than 20% of our
apprentices being existing
employees choosing to continue
their learning and development.
We also offer opportunities to work
towards professional accreditations,
particularly for those who join
us through an emerging talent
programme.
Berkeley graduates and apprentices
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Our Vision 2030 progress continued
Ensuring competence in
our teams and supply chain
With the emergence of the Building
Safety Act regime, a key focus has
been ensuring both individuals
and organisations are capable and
competent to undertake work.
We have developed a Berkeley
competence framework which sets
out core competencies to align
with our values, together with role
competencies for each department
and leadership and management
competencies for people managers.
We have also created a guide
for our teams to understand and
implement the legislation and every
employee in a production role is
trained on building safety. Within
the year we developed detailed
training on the new Principal
Contractor dutyholder role; this
course has now been published as
a training standard by the CITB,
helping to guide the industry in
this area. More than 1,000 of our
employees completed detailed
building safety and quality training
this year.
We focus on strong leadership and
competence at senior management
level, supported by three lines of
defence: competent project teams
delivering the new developments;
local, dedicated building safety
and quality managers to work
with project teams and undertake
checks on procedures; and, finally,
a Group Building Safety and
Quality Assurance team which
undertakes regular audits. The
nature of our developments,
including taller buildings, results in
additional challenges beyond those
encountered within more traditional
housebuilding sites; we apply the
same high standards and lessons
learnt from the most complex
of projects to each and every
development.
A strong supply chain is critical and
we must ensure competence of
both the companies we partner with
and their operatives working on
our sites. We have used our leading
role in industry as an opportunity to
support our supply chain to develop
their understanding of competence,
building safety and quality.
Playing a
pivotal role
in leading the
industry on
building safety
We have played a pivotal role in
building safety across the industry,
being an active participant in
working groups and discussions
with Government to ensure the
emerging regulatory regime is
fit for purpose. A member of
our Executive Committee, Karl
Whiteman, has been involved every
step of the way with industry and
Government and was selected
to lead the industry as the
Construction Leadership Council’s
Building Safety Sponsor. One of our
Managing Directors was selected
to speak at the Building Safety
Regulator (BSR) Conference 2024
and our Group Head of Building
Safety and Quality Assurance
also represents us on industry
groups. The Building Safety regime
is continuing to evolve and we
intend to remain at the forefront
of knowledge, understanding and
influence in this area.
Supporting
our valued
supply chain
Our supply chain is critical to
maintaining production and our
teams liaise and collaborate with
our contractors and suppliers on
a daily basis. This year we have
focused on providing visibility of
future work pipelines and sharing
our growing knowledge around
topics such as building safety and
competence.
We ran a 360 degree feedback
process with more than 50
contractors and have begun to
take action in areas that our supply
chain highlighted for improvement.
This includes streamlining our
assessment process and reviewing
our procedures, also informed by
the best practice guidance we have
obtained from working with the
Chartered Institute of Procurement
and Supply (CIPS).
Whilst continuing to develop
bespoke designs on every site,
we are embedding our common
materials strategy. We have
worked with manufacturers of
various product groups, forming
agreements with those that can
meet our stringent requirements
across a range of topics from
health and safety to quality and
sustainability.
Our recent commercial activity
has been particularly focused on
building safety and competence,
with a product provenance and
traceability trial completed with
Kingspan and Travis Perkins during
the year. Reducing embodied
carbon is also a strategic priority
and we are engaging with
manufacturers of high impact
materials. See page 46 for more
information.
Strategy in action
Aligning our supply
chain to our strategic
priorities
We held our first Group-wide supply chain conference in November,
bringing together more than 170 trade contractors, manufacturers
and consultants to ensure we work collaboratively and strengthen
relationships. This was an opportunity to reinforce our priorities on
topics such as quality, climate action and combatting modern slavery,
together with raising awareness of the industry’s Fairness, Inclusion
and Respect (FIR) programme and communicating the aims of our
new strategy to target zero avoidable waste.
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Our Vision 2030 progress continued
Supporting the work of
the Berkeley Foundation
61%
Berkeley employees involved
with Berkeley Foundation
activities in the year
1,990
hours volunteered by
Berkeley employees
Combatting
modern slavery
All Berkeley employees complete
training on modern slavery and we
have embedded due diligence and
risk management processes within
our commercial and construction
activities.
This year we organised bespoke
in-person training for all Site Modern
Slavery Leads; these are the most
senior person on each construction
site. This was delivered by Unseen,
the UK charity that provides
safehouses and support for survivors
of modern slavery and runs the UK
Modern Slavery Exploitation Helpline.
One of the outputs from the training
was an increased understanding of
the scale of labour exploitation in
the UK. This led us to create new
posters promoting the hand signal
victims can subtly use to draw
attention to their situation and
highlighting worker rights in the UK.
We continue to collaborate with
industry and are part of the Supply
Chain Sustainability School’s
Modern Slavery Group, the largest
anti-slavery collaboration in the
UK built environment. In addition
to this we share our support and
improve our understanding through
attending industry events such as
CCLA Investment Management’s
roundtable discussion on modern
slavery and labour exploitation in
construction with the Cabinet Office
which took place in April 2024.
Scan the code
to read our Modern Slavery Statement
Last year was another
successful year for the
Berkeley Foundation, working
with its charity partners
and Berkeley employees to
deliver programmes in the
communities where Berkeley
operates.
The Foundation renewed
two of its key Strategic
Partnerships during the
year. Its flagship partnership
with Crisis, which is taking
a place-based approach
to tackling homelessness
in Brent, was extended
for a further three years.
The Foundation also
continues to work with
the Lord’s Taverners to
provide year-round cricket
coaching and competition
for disabled young people.
Berkeley staff will be
supporting this partnership
through volunteering and
employability support for the
young participants over the
coming years.
The Berkeley Foundation continues
to be deeply embedded at Berkeley
and our employees give their time,
expertise and donations to support
its strategic and community
partners. More than 60% of our
colleagues chose to get involved in
the Foundation’s work over the last
12 months.
We have offered work placements
and job opportunities, held careers
days to help young people about to
start their journey into employment,
and shared our expertise.
These long-term,
transformational partnerships
represent a sustained
investment in our local
communities. Over the last
year, the Foundation has
increased the average length
of its charitable partnerships,
working with charities over an
extended period to deepen
the impact of its work.
The Foundation has also
focused on building the
resilience of a voluntary sector
under real pressure. This year
saw the second year of the
Resilience Fund get underway,
with a cohort of 10 charities
working to support the mental
health of young people from
global majority communities
embarking on projects to
increase their organisational
resilience. Alongside this, the
Foundation met the immediate
needs of its charity partners
through the cost of living crisis
with a programme of targeted
grants totalling £262,000 over
two years.
In October, the Foundation
launched its Equity, Diversity
and Inclusion (EDI) plan,
setting out priorities both
within the organisation, and
through its grant-making
activities. This has included
reviewing application forms
and funding criteria to
ensure that grant-making
processes are equitable,
as well as involving young
people directly in the
Foundation’s work.
The Berkeley Foundation
A force for change
Scan the code
to find out more about
the Berkeley Foundation
£940k
raised by Berkeley employees
for the Foundation and its charity
partners through fundraising and
Give as You Earn (GAYE)
£3.6m
given to the Berkeley Foundation’s
charity partners through grants,
staff fundraising and GAYE
>6,000
people reached through
the Foundation’s charity
partnerships
We’re a children’s charity based in London that
seeks to empower young people who face
challenges and who might be at risk of under-
achieving to fulfil their social, personal and
academic potential. The grant from the Berkeley
Foundation is enabling us to add to our core team,
so that we can develop our strategy to reach even
more children and help them rise up above their
negative behaviour patterns and environments.
Success Club | Resilience Fund Partner
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Our stakeholders
Members of the Board as a whole
and individually are bound by their
duties under section 172(1) (a) to
(f) of the Companies Act 2006 (the
Act). In this statement, we describe
how our Directors have considered
the matters set out in section
172(1) of the Act (section 172) when
performing their duty to promote
the success of the Company.
This engagement, both directly
and through regular reports from
individual business areas and various
functions, ensures the Board is made
aware of key issues to enable the
Directors to comply with their legal
duty under section 172.
This statement summarises how the
Company promotes its success for
the benefit of its key stakeholder
groups by having regard to:
— the likely consequences of any
decisions in the long-term;
— the need to foster the Company’s
business relationships with
suppliers, customers and others;
— the desirability of the Company
maintaining a reputation of high
standards of business conduct;
— the interests of the Company’s
employees;
— the impact of the Company’s
operations on the community and
environment; and
— the need to act fairly between
members of the Company.
We believe that to progress our
strategy and to deliver substantial
sustainable long-term growth
opportunities, the Board should
consider all stakeholders relevant to a
decision and satisfy themselves that
any decision upholds our values and
aligns with Our Vision 2030.
The Board recognises that stakeholder
engagement is essential to understand
what matters most to our stakeholders
and the likely impact of our key
decisions.
The following sections demonstrate
how the Directors fulfil their duties
in respect of these obligations by
addressing in turn some of the key
areas of focus for the Board.
Further detail of Board activity
in the year is described in the
Corporate Governance section
pages 110 to 119
Customers
Placing the customer at the heart of every decision,
all the way through the development process
Actions and outcomes
— Prompt resolution of issues.
— Continued innovation to
ensure we are providing
aspirational homes with leading
specifications.
— Senior level review of each
customer survey, with targeted
actions.
— Sales & Marketing and Customer
Service Committees review any
trends in customer feedback and
identify areas for improvement.
— Consistent achievement of
world-class levels of customer
satisfaction as recorded through
the NPS and ‘recommend to a
friend’ figures.
— Maintaining a Gold standard from
an independent customer service
body.
— Considering energy efficiency
and the right energy strategy for
the home, whilst accommodating
existing regulations and
investigating emerging
technology.
What matters to them?
— A bespoke, tailored service that
responds to their needs.
— Clear and timely communication
throughout their customer
journey.
— Regular updates on the progress
of their home.
— Providing their new home on
time and making them feel
special and valued.
— High quality specification and
construction.
— Quick rectification of any
problems that arise.
— Energy prices.
How we engage
— Each customer has a dedicated
point of contact and is
encouraged to provide feedback
at any stage.
— Six weeks after a customer has
completed on their new home
they are given the opportunity to
complete a detailed, independent
survey covering all aspects of
their experience, from the home
and the development to the
levels of service they received.
— Direct engagement between
senior management teams and
the Main Board and customers if
any key issues arise.
— Through our online portal,
MyHome Plus, via which they
have access to information,
videos and progress updates.
Culture
and values
The culture and values of the business are continuously
considered by the Directors when discharging their
duties to ensure they are embedded into the business.
Read more on pages 112 to 113.
Business model
and strategy
The Directors have collective responsibility for promoting
the long-term success of the Company in a safe and
sustainable manner in order to create and enhance
shareholder value. Read more on pages 12 to 15.
Risk
management
The Directors are responsible for setting and monitoring
the risk appetite for the business. For more detail of risk
management see ‘How we manage risks’ on pages 90 to
103.
Stakeholder
engagement
The Board reviews and confirms its key stakeholder
groups for the purposes of section 172 annually. In 2024,
they were confirmed as customers, communities and
local government, employees, supply chain, government,
regulators and industry, investors and the environment.
The following pages set out how the interests of each of
these key stakeholders is embedded into the long-term
strategy of the business.
For more
information
Customers
see pages 40 to 41 and 59.
Communities
and local government
see pages 42 to 44 and 60.
Employees
see pages 50 to 51 and 61.
Supply chain
see pages 45 to 46, 54 to 55 and 62.
Government, regulators
and industry
see page 63.
Environment
see pages 45 to 49 and 64.
Investors
see page 65.
Key engagement
activities this year
We continued to offer
each and every customer
the opportunity to provide
feedback throughout the
buying process and to
complete a survey six weeks
after move in through an
objective third party.
Link to strategy
see pages 40 to 41
for further detail
Link to KPIs
Net Promoter Score
Section 172(1) Statement
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Our stakeholders continued
Communities and local government
Making a positive contribution to the communities in which
we work through engagement and partnership working
What matters to them?
— Delivering high quality homes
and places that improve people’s
quality of life.
— Meaningful engagement on
development plans.
— Influencing development to
deliver local priorities and
positive outcomes, such as public
amenities and services.
— Securing inward investment,
growth and job and training
opportunities.
— Minimising negative impacts,
such as traffic and noise.
— Respect for local priorities,
heritage and culture.
How we engage
— Site-specific consultation
and engagement strategies
seek out contributions from
a representative mix of local
people and stakeholders.
— From an early stage, pre-
planning, with the aim of
nurturing lasting, collaborative
relationships throughout
project delivery.
— In a variety of ways, including
open days, community design
workshops, presentations
to local groups, one-to-one
meetings, door knocking, walking
tours, pre-application planning
meetings, exhibitions, Design
Review Panels, newsletters,
notices, advertising, surveys,
site-specific websites and a
mix of digital consultation and
engagement tools.
— Some developments have
dedicated community
engagement specialists who
expand our local networks and
ensure we address local needs.
Actions and outcomes
— The creation of enduring local
partnerships based on shared
objectives for the community’s
future.
— Bespoke masterplans and
placemaking strategies which
reflect local views, aspirations
and concerns.
— Site-specific Community Plans to
create social links and integration
with the wider community.
— Prioritising local people for
training and job opportunities
on our sites.
— Partnerships with local charities
and good causes which improve
community life.
— Responsible and respectful
construction activities through
registration of every site with
the Considerate Constructors
Scheme (CCS), which
independently assesses
our conduct.
Employees
Creating a positive working environment
and promoting health, wellbeing and inclusion
What matters to them?
— Delivering positive outcomes
for local communities.
— Pride in creating great places
and high quality homes.
— Career progression.
— Competitive pay and benefits.
— Equity, Diversity and Inclusion
(EDI).
— Health, safety and wellbeing.
— The increasing cost of living
and travel costs.
How we engage
— Group-wide employee surveys.
— A range of engagement initiatives
through our operating businesses
including staff conferences, staff
surveys and ‘sessions with the
management’.
— Via our Group People Committee.
— Induction process for new
graduates and apprentices who
get to meet senior management
and have a Q&A session with
the CEO.
— Our employee intranet, which
provides updates and key
information.
Actions and outcomes
— Enhancing health and wellbeing
strategies, such as wellbeing
webinars and menopause plans.
— Implementing our approach to
Equity, Diversity and Inclusion,
with actions taken and events run
to raise awareness and foster a
culture of inclusion.
— Providing a range of learning
and development opportunities,
hosted by our in-house training
venue, the Berkeley Academy.
Key engagement
activities this year
We undertook several
site-specific community
engagement activities across
our developments.
We ran a series of events
in partnership with Natural
England to upskill local
authorities on biodiversity
net gain (BNG).
Link to strategy
see pages 42 to 44
for further detail
Link to KPIs
Affordable housing subsidies
and wider contributions
Direct apprentices and training
Brownfield regeneration
International Women’s Day
Trent Park, Enfield
Key engagement
activities this year
We completed a Group-wide
employee survey in autumn
2023; the feedback has been
used to create local and
Group-wide action plans.
We also engaged and
requested feedback at
events, such as one held for
International Women’s Day.
Link to strategy
see pages 50 to 53
for further detail
Link to KPIs
Annual Injury Incidence Rate
Direct apprentices and training
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Our stakeholders continued
What matters to them?
— Understanding the pipeline of
future opportunities.
— Early engagement and the
ability to feed into the project
programme and logistics.
— High standards of health, safety
and welfare.
— Receiving feedback on their
tenders.
— Payment in a timely manner.
— Being treated as an extended
part of the project team.
— Building long-term relationships
with us.
How we engage
— Events such as supplier days
and conferences.
— Through our Supply Chain
Portal which includes our health
and safety, build quality and
sustainability standards.
— Throughout the tender process
with frequent communication from
our commercial team, together
with formal tender meetings.
— Pre-start meetings before site
works commence.
— Regular site meetings, signage
and ‘toolbox talks’.
— Dedicated Director-level Trade
Sponsors provide a platform
for engagement.
— Through corporate memberships
and industry groups, such
as the Chartered Institute
of Procurement and Supply
(CIPS) Construction Senior
Leadership Group, the Supply
Chain Sustainability School and
Construction Leadership Council
Material Supply Chain Group.
Actions and outcomes
— Long-term, collaborative supply
chain partnerships which ensure
that we can make full use of the
expertise and specialist skills of
our suppliers.
— Procurement on overall value
rather than cost alone.
— Compliance and buy-in around
our site safety, quality, ethics,
human rights and environmental
standards and behaviours.
— Prompt payment of suppliers,
as a signatory to the Prompt
Payment Code.
— Issuing trade-specific
opportunity schedules every six
months to provide the supply
chain with visibility of future
work.
— Working with our supply chain
to help mitigate the risks around
financial stability.
Government, regulators and industry
Working in partnership to shape a delivery environment
which creates the conditions for growth and supports
high quality homebuilding and placemaking
Supply chain
Ensuring responsible procurement and collaborative delivery
through engagement and effective communication at all levels
with our supply chain
What matters to them?
— The delivery of private and
affordable homes.
— Regenerating brownfield land.
— High standards of design and
build quality.
— Heritage conservation.
— High standards of operational
and building safety.
— Delivering economic growth
and job opportunities.
— Tackling climate change,
biodiversity loss and other
environmental challenges.
How we engage
— Responding to policy and
regulatory consultations.
— Maintaining constructive dialogue
at a senior level with Government
departments, agencies and
regulatory bodies.
— Engaging with well-regarded
think tanks, academic institutions
and the wider policy community.
— Active membership of
collaborative initiatives and
membership bodies, including
the Construction Leadership
Council, UK Green Building
Council (UKGBC), Supply Chain
Sustainability School, Natural
England’s Developer Forum,
Considerate Constructors
Scheme, Construction
Industry Advisory Committee,
New London Architecture,
Opportunity London and
Business London.
— Senior management engaging
in public debate via conferences
and roundtables.
Actions and outcomes
— Alignment of our business
strategy with long-term national
and local policy objectives such
as brownfield regeneration, high
quality new homes, affordable
housing, climate action, safety
and social value.
— Research, trials and
implementation of solutions
to these key public policy
challenges.
— Publication of information so
others can learn from our work,
for example, our established
approach to biodiversity
net gain.
— Active contribution to public
debate around housing delivery
and meeting with regulators and
policy makers to share insights
into key business and market-
related matters.
— The CEO has actively
participated in the housing
debate speaking at various
housing conferences including,
Restitch, Centre for London,
UK REiiF, and London Resi
Conference.
Key engagement
activities this year
We carried out 360 degree
feedback with contractors.
We held a supply chain
conference with more
than 170 of our contractors,
manufacturers and
consultants.
Link to strategy
see pages 54 to 55
for further detail
Link to KPIs
Annual Injury Incidence Rate
Key engagement
activities this year
Executive Committee
member Karl Whiteman is
the industry lead on building
safety through his role as
the Construction Leadership
Council’s Building Safety
sponsor, including
direct engagement with
Government as key changes
are introduced.
Link to strategy
see pages 40 to 57
for further detail
Link to KPIs
Brownfield regeneration
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Environment
Reducing negative impacts and working towards
environmental net gain
What matters?
— Reduction of environmental
impact from both construction
activities and longer-term
through the developments
we create.
— Global impacts via the
supply chain.
— Movement towards having a
positive environmental impact.
How we engage
— Directly with local planning
authorities, who then consult
relevant regulators such as the
Environment Agency, Natural
England and water authorities
on development proposals.
— With the public via our
partnership with the Considerate
Constructors Scheme.
— With industry organisations and
initiatives, including the UKGBC,
the Supply Chain Sustainability
School, the Construction
Leadership Council’s Green
Construction Board and the
Wildfowl and Wetlands Trust
Blue Recovery Leaders Group.
— By responding to consultations,
research and innovation,
for example Government
consultations on changes to the
Building Regulations.
— Through our supply chain to
understand the environmental
credentials of materials.
Actions and outcomes
— Incorporation of key
environmental targets and
actions into our business
strategy, Our Vision 2030.
— Inclusion of Our Vision 2030 and
Sustainability within Main Board
reporting and monthly Board-
level meetings on the topic.
— Clear standards for our project
teams covering all aspects of
our operations and the homes
and developments we create,
with additional focus areas on
environmental management and
resource use.
— A dedicated team of
sustainability practitioners taking
action at a local level on a daily
basis.
— The reporting of our impact
publicly across a range of
indicators.
Key engagement
activities this year
We responded to
Government’s consultation
and attended a roundtable
on the Future Homes and
Buildings Standards relating
to energy usage in new
homes. We were also actively
involved with Government
and industry in the move for
BNG becoming mandatory
for new development from
February 2024.
Link to strategy
see pages 45 to 49
for further detail
Link to KPIs
Greenhouse gas (GHG)
emissions intensity
Brownfield regeneration
Our stakeholders continued
Investors
Delivering long-term sustainable shareholder returns
What matters to them?
— Secure financial investment
that provides sustainable risk-
adjusted returns over the
long-term.
— High standards of Environmental,
Social and Governance (ESG)
matters.
How we engage
— Twice yearly equity investor road
shows in the UK and USA led by
the CEO and CFO.
— One-to-one meetings, often
combined with site visits,
enabling investors to view
the business operations.
— Group meetings held at periodic
investor conferences.
— Structured shareholder
consultations on key governance
matters, such as capital returns,
remuneration policy and Board
composition.
— Equity analyst briefings.
Actions and outcomes
— An added-value model that
recognises the risks of a cyclical
housing market and operational
complexities of the sites Berkeley
develops.
— A focus on financial strength,
resilience and liquidity.
— Investing in land holdings to
ensure sufficient pipeline and
value-added development
opportunities.
— Securing forward sales which
underpins the upfront investment
in our regeneration sites.
— Disclosure of both financial
and non-financial information
covering a range of ESG topics.
Key engagement
activities this year
We have continued to run
road shows led by the CEO
and CFO, held one-to-one
meetings with investors and
attended investor conferences.
We also conducted an
institutional shareholder
perceptions review.
Link to strategy
Link to KPIs
Profit before tax
Pre-tax return on equity
Net cash
Net asset value per share
Cash due on forward sales
Future gross margin in
land holdings
Chelsea Creek
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ESG performance
We monitor a range of Environmental, Social and Governance
(ESG) indicators across our business activities.
Indicator
Metric
Unit
2024
2023
2022
Link to
strategy
New homes
Completed homes, including joint ventures
#
3,927
4,637
4,632
Benchmarks
and indices
CDP Climate Change questionnaire rating
Rating
A
A-
A-
FTSE4Good Index Series listed company
Y/N
Y
Y
Y
MSCI ESG rating
Rating
AAA
AAA
AAA
Environmental
Indicator
Metric
Unit
2024
2023
2022
Link to
strategy
Environmentally
responsible
operations
Number of environmental prosecutions
#
0
0
0
Monetary cost of environmental fines and penalties
£
0
0
0
Scopes 1 and 2 (location-based) emissions
tCO2e
5,245
5,223
7,832
Scopes 1 and 2 (market-based) emissions
tCO2e
917
963
2,211
Water consumption
m3
182,285
201,979
236,234
Total waste generated (including construction,
demolition and excavation wastes)
tonnes
388,765
596,921
734,320
Total waste reused or recycled
%
95
97
90
Total waste classified as hazardous
tonnes
4,082
4,799
5,669
Construction waste generated
tonnes
111,957
106,466
126,765
Construction waste reused or recycled
%
94
95
95
Construction waste classified as hazardous
tonnes
224
225
606
Sustainable
homes
Completed homes with an EPC rating of at least a B
%
93
93
89
Average EPC score
#
84
84
83
Completed homes with an Environmental Impact
Rating (EIR) of at least a B
%
96
98
–
Average internal water efficiency of completed
homes
lpppd
101.2
102.6
104.2
Completed homes constructed on brownfield land
%
87
86
86
Completed homes with internal recycling facilities
%
100
100
100
Sustainable
places
Developments newly committed to deliver
biodiversity net gain
#
2
8
6
Developments newly committed to deliver
biodiversity net gain on site
%
100
100
100
Developments newly committed to deliver
biodiversity net gain greater than 10%
%
100
100
100
Live development sites regenerating brownfield
land
%
75
76
80
Live development sites with SuDS
%
100
100
92
Live development sites with cycle storage being
provided
%
100
100
100
Live development sites with electric car charging
infrastructure being provided
%
98
98
93
Social
Indicator
Metric
Unit
2024
2023
2022
Link to
strategy
Charitable
giving and
the Berkeley
Foundation
Employees involved with GAYE
%
29
30
29
Employees involved with the Berkeley Foundation
%
61
59
55
Considerate
construction
Average Considerate Constructors Scheme (CCS)
score
#/50
44.2
44.1
43.4
Customer
experience
Six month rolling average NPS (to March 2023)
#
80.2
79.2
77.2
Customers who would recommend us to a friend
(to March 2023)
%
97.7
97.5
98.0
Health and
safety
AIIR per 100,000 people – direct employees and
on-site contractors
#
52
79
72
AIIR per 100,000 people – direct employees only
#
36
0
33
AIIR per 100,000 people – on-site contractors only
#
57
106
85
Work-related fatalities – direct employees and on-
site contractors
#
0
0
0
Accident Frequency Rate (AFR) per 100,000 hours
– direct employees and on-site contractors
#
0.02
0.04
0.03
Skills and
training
Average monthly percentage of direct workforce
who are graduates, direct apprentices or sponsored
students undertaking formal training
%
9.5
10.0
8.9
Graduates joining the business via Berkeley’s
Graduate Scheme programme
#
21
43
38
Average monthly number of directly employed
apprentices
#
151
162
121
Society and
community
contributions
Contribution to UK GDP, including through direct
activities by Berkeley, indirectly through supply chain
spend and the induced effect of household spend
£bn
2.5
2.6
3.2
Contribution to UK tax, including taxes paid directly
by Berkeley and the taxes paid by customers and
suppliers as a result of Berkeley activities
£m
800
837
774
Contribution to facilities and services for local
communities, including affordable housing subsidies
£m
370
560
556
UK jobs supported annually directly and indirectly
through the supply chain
#,000
24
29
29
Supply chain
Average number of days taken to pay suppliers
#
29
30
30
Average monthly number of on-site contractors
#
8,825
9,473
9,415
Quality
Homes with fewer than five defects reported by
customers on completion
%
91
91
94
Governance
Indicator
Metric
Unit
2024
2023
2022
Link to
strategy
Board of
Directors
Executive Directors
#
2
5
5
Independent Non-Executive Directors
#
7
10
11
Board of Directors – Male
%
56
67
69
Board of Directors – Female
%
44
33
31
Average tenure of Board of Directors
yrs
6
7
6
Employees
(as of 30 April)
Total employees
#
2,610
2,802
3,030
Total employees – Male
%
62
63
63
Total employees – Female
%
38
37
37
Non-Board senior management – Male
%
50
29
40
Non-Board senior management – Female
%
50
71
60
Reporting to Board or senior management – Male
%
68
69
71
Reporting to Board or senior management – Female
%
32
31
29
Key to strategy
Customers
Quality
Communities
Climate action
Nature
Employee
experience
Modernised
production
Future skills
Supply chain
Shared value
Scan the code
for data notes and
more metrics
Note: Metrics include joint venture activities.
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Climate-related disclosures
Theme
Disclosures and
disclosure level
Summary and next steps
Page
reference
Governance
a) Board’s
oversight
– The Board is provided with updates on Berkeley’s climate actions
and progress against goals as part of each meeting through Our
Vision 2030 reporting.
– CEO and CFO attend monthly Our Vision 2030 and Sustainability
Board meetings at which key climate actions, including targets
and progress on our transition to net zero are reviewed.
– Climate-related matters are assessed at development level which
informs strategic business planning activity.
70 to 71
b)
Management’s
role
– CEO is lead sponsor for climate action.
– Executive Committee receives updates on climate action from the
Responsible Business Executive at each meeting.
– CEO and CFO attend divisional board meetings to review
financial and operational performance.
– Responsible Business Executive and Group Head of Sustainability
meet with Group operational committees, divisional management
teams and operational sustainability teams to review progress and
plan next steps.
Strategy
a) Climate-
related
risks and
opportunities
– Climate change is a key risk monitored as part of the Group’s risk
management process.
– Climate scenario analysis identified key transitional risks in the
short-term (0–2 years) to medium-term (to 2030) and physical
risks in the long-term (to 2050), based on financial scenarios and
probabilistic loss modelling where possible.
71 to 77
b) Impact
of risks and
opportunities
on strategy
and financial
planning
– Our strategy in relation to climate-related issues is defined across
four areas of focus and involves engagement with stakeholders
across our industry, supply chain and government bodies.
– Work is ongoing in relation to the impact of climate-related issues
and a just transition on areas such as our supply chain.
– Consideration of climate change in preparing our Financial
Statements is detailed in note 1.3 on page 187.
c) Resilience of
strategy
– Climate scenario models have been used to assess our resilience
including transition to a low carbon economy consistent with a
1.5⁰C scenario and the increased physical risks associated with a
4⁰C scenario.
Risk
management
a) Risk
identification
and assessment
processes
– Main Board, Responsible Business Executive, Group sustainability
team and operational teams all form part of the process to
identify risks and assess their relative importance.
– Climate scenario analysis completed in 2022; results are still
considered to be relevant.
78 to 83
and
100 to 101
b) Risk
management
processes
– Responsible Business Executive and Group sustainability team
manage strategic compliance with evolving requirements.
– Divisional management teams embed risk management in our
day-to-day operations, integrating mitigation measures for each
development as required.
c) Integration
with overall risk
management
– Climate change identified as a standalone principal risk
to the business since 2018.
– Climate-related risk incorporated within the Group’s risk
management framework, combining a top-down and
bottom-up approach.
Metrics and
targets
a) Metrics to
assess risks and
opportunities
– Relevant key metrics identified and disclosed, including industry-
based metrics in line with SASB.
– The seven cross-industry metric categories recommended in
TCFD guidance continue to be reviewed for implementation.
84 to 88
b) Scopes 1,
2 and 3 GHG
emissions and
risks
– Emissions under scopes 1, 2 and 3 (material categories 1 and 11)
monitored and reported.
– GHG emissions calculated in line with the GHG protocol
methodology.
c) Targets
to manage
risks and
opportunities
– Science-based targets in place for scopes 1, 2 and 3 GHG
emissions with performance against these disclosed.
– Targets in line with the seven cross-industry metric categories
recommended in TCFD guidance to be reviewed for
implementation.
Berkeley aims to play an active role in tackling
the global climate emergency.
Our climate actions are holistic,
involving transformational changes
to our business operations and to
the ways in which we design and
create new homes and places in
partnership with our supply chain.
Our actions and transparency
have been externally recognised,
having achieved ‘A List’ status
for our response to CDP’s 2023
Climate Change Questionnaire
and been listed as a CDP Supplier
Engagement Leader.
Ensuring that we take action in
relation to climate change is not
new to Berkeley; we set our first
carbon reduction targets for our
day-to-day operations through
the original Our Vision business
strategy launched in 2010. Having
identified flooding, overheating and
water shortage as key issues in our
2014 risk identification exercise, we
placed a focus on climate change
adaptation, creating new homes
and places that are more resilient to
the challenges of a warmer climate,
which embrace the great potential
of nature-based solutions.
Climate action continues to be a key
strategic priority for the business
and is embedded within Our Vision
2030. We are proud to have met our
validated near-term scopes 1 and 2
greenhouse gas (GHG) emissions
science-based target (SBT) last
year and have updated this to
push ourselves further. Electricity
consumed in the UK is backed by
Renewable Energy Guarantees of
Origin (REGOs) and our construction
sites are reducing their use of fossil
diesel; this year, 96% of directly
procured diesel was biodiesel HVO
(Hydrotreated Vegetable Oil) as a
low carbon alternative.
Berkeley recognises that our
greatest impact occurs through
our scope 3 emissions, in particular
those associated with the materials
used to build new homes. We are
undertaking embodied carbon
assessments during planning and
design stages, to enable our teams
to make more informed decisions in
relation to design, specification and
sourcing. We are also engaging with
our supply chain to understand the
decarbonisation pathways of high
impact material groups.
Our climate action strategy seeks
to mitigate both transitional and
physical risks identified by climate
scenario analysis, and evolves to
ensure that it remains relevant. This
year we have been engaging key
internal stakeholders to compile
a Net Zero Transition Plan in line
with the recommendations of the
Transition Plan Taskforce (TPT)
published in October 2023.
Omitted
Partial
Full
Disclosure level
In developing its climate-related
disclosures, Berkeley has reviewed
the Task Force on Climate-related
Financial Disclosures (TCFD) report
‘Recommendations of the Task
Force on Climate-related Financial
Disclosures’, including the 2021
Annex detailing Guidance for All
Sectors and Supplemental Guidance
for Non-Financial Groups in relation
to Materials and Buildings. We
are pleased to confirm that our
disclosures are consistent with
these guidelines and align with the
UK Listing Rules (as referred to in
Listing Rule 9.8.6R (8)), save for
certain items which we summarise
in the table on page 69. Work is
ongoing as our understanding of
these areas has developed over the
years and we have identified areas
where more work is required.
This year, we have reviewed and
updated our reporting in line with
the International Sustainability
Standards Board (ISSB) IFRS S2
Climate-related Disclosures; a
Sustainability Disclosure Standard
published in June 2023. The
Standard integrates and builds
on the TCFD recommendations
and incorporates industry-based
disclosure requirements derived
from SASB Standards. We believe
our disclosures cover the majority
of the requirements within IFRS
S2 and will look to further align in
future reporting years.
Hareshill, Fleet
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Climate-related disclosures continued
Key roles with responsibility for climate action:
1 Chief Executive Officer
2 Chief Financial Officer
3 Executive Committee member with responsibility for sustainability
4 Responsible Business Executive
5 Group Head of Sustainability
Key to the success of our
governance structure is the
involvement of our CEO and other
key senior management with
responsibility for climate action
across all levels and aspects of the
business. The tone and culture set
by their involvement encompasses
all of the autonomous businesses
and teams across the Group.
To provide a governance framework
for our approach, Berkeley has
an overarching Climate Change
Policy detailing guiding principles
of action, delivered through our
Climate Action priority area of Our
Vision 2030 business strategy and
supporting Sustainability Standards.
Our standards set out minimum
requirements for our developments,
as well as our construction site and
supply chain activities, for topics
such as energy efficiency, risk
mitigation measures and reporting.
They ensure that we are aligned
to deliver the objectives, priorities
and milestones outlined within our
climate strategy.
Management tools are in place to
monitor action and performance.
For example, each development
uses a Project Sustainability
Strategy to track compliance with
Sustainability Standards from land
purchase through to completion,
whilst our online data management
system allows for live reporting
of GHG emissions from our site,
office and sales activities to assess
progress against our scopes 1 and
2 SBT. Our management tools
enable the regular communication
of performance across the business,
enabling insights and areas for
further action to be identified and
discussed.
Strategy
Taking action on climate has been
a priority for Berkeley since the
launch of Our Vision in 2010. To help
ensure the ongoing resilience of our
strategy, the actions undertaken
under our key areas of focus (see
pages 72 to 73) are continually
reviewed against evolving risks and
opportunities by the Responsible
Business Executive and Group
Head of Sustainability, along with
Group operational committees and
working groups.
Where necessary, key processes and
controls such as our Sustainability
Standards are updated.
Overview of climate risks
and opportunities
Transitional climate change risks
and opportunities are assessed in
the short-term (0–2 years) and the
medium-term (to 2030) to align
with the time horizons of Berkeley’s
overarching business strategy,
Our Vision 2030. Recognising that
physical risks manifest themselves
over a longer period, these are
considered in the long-term (to
2050).
Climate scenario analysis
undertaken in 2022 indicates that
Berkeley has relatively low residual
exposure to transition risk in the
short-term, although pricing of GHG
emissions and increased cost of raw
materials present moderate risk.
In the medium-term, Berkeley is
more moderately exposed, partly
due to risks associated with moving
to lower emission technologies,
such as the use of less established
suppliers and obsolete technology.
Higher raw material costs could also
be incurred by 2030 as a result of
the increasing intensity of carbon
pricing policy. Whilst not financially
quantified, skills shortages are
expected to be moderate by 2030.
Changing customer demands is
considered to present a minor
opportunity in the medium-term.
The analysis showed that by 2050
under a 4⁰C ‘Hot House World’
scenario, areas in which Berkeley’s
developments are located will see
an increase in heatwave days and
a corresponding increase in the
occurrence of prolonged drought
stress. Increases in precipitation
with drier summers and wetter
winters could also increase
the prevalence of subsidence
conditions. Exposure to flood risk
may also increase with particular
sites flooding more often.
Governance
Berkeley’s governance structure for monitoring climate-related risks and opportunities, implementing strategic
actions to address these and monitoring performance is summarised below.
Main Board Level
Board of Directors
Audit Committee
— Overall responsibility for oversight of our strategy and
management of climate-related risks and opportunities.
— Monitor progress towards strategic climate targets, with the
Board report for each meeting including action taken in the year
to date and planned next steps.
— Review Group Risk Management Report presented at each Board
meeting. Climate change considered as a principal operating risk.
— Restricted Share Plan awards include an ESG underpin whereby
up to 20% will be forfeited in the event of unsatisfactory progress
against strategic and ESG priorities.
— Oversight of Company-wide risk management process, including
climate action alongside other principal risks.
— Undertake annual assessment of principal and emerging risks,
along with the adequacy and effectiveness of internal control
systems.
— Consider climate change impacts on the financial reporting
judgements and estimates in the Financial Statements
(see page 127).
Management Level
Chief Executive Officer
Executive Committee
Our Vision 2030 and
Sustainability Board
— Designated as accountable lead sponsor
for the Climate Action strategic priority
under Our Vision 2030.
— Review climate-related commitments and
actions to ensure that they are ambitious
and appropriate for the business.
— Review and sign off detailed plans and
specifications of each development,
from land purchase through all stages of
development.
— Assess and manage strategic and
operational risks.
— Discuss progress under the Climate
Action priority area and measures
to be implemented to further drive
improvement.
— Consists of CEO, CFO, Executive
Committee member with responsibility
for sustainability, Responsible
Business Executive and Group Head of
Sustainability.
— Meet monthly with climate action a key
topic on each agenda.
— Discuss progress against goals and
targets to agree planned next steps.
Group Level
Group Risk Function
Group Responsible Business
and Sustainability Teams
Group Committees
and Working Groups
— CEO ensures the appropriateness of the
Group’s risk management strategy.
— CFO leads on strategic risk management,
including oversight of climate scenario
analysis.
— Risk Executive manages Group risk
process and register, including climate
change as a principal operating risk.
— Identify strategic climate change risks
and opportunities facing the Group and
communicate these to the Group’s Risk
Executive.
— Develop targets and strategic climate
action, including our transition to
net zero.
— Integrate actions into day-to-day
activities.
— Actively collaborate with external experts
and industry working groups.
— Operational committees (e.g. Technical
Committee and Sustainability
Committee) consisting of senior
representatives from each of our
businesses meet regularly, with climate
action raised at each meeting by
the attending Responsible Business
Executive and/or Group Head of
Sustainability.
— Cross-disciplinary working groups
take action in specific areas, such as
embodied carbon and implementation
of the Future Homes and Buildings
Standards, guided by the Group Head
of Sustainability.
Operational Level
Divisional Management Teams
Operational Sustainability Teams
Development Project Teams
— Responsible for climate action in relation
to the specific developments of their
business.
— Nominate a management sponsor for the
Climate Action strategic priority for their
business.
— Maintain a risk register for their business,
which includes sustainability and climate
change risks.
— Communicate business performance
to CEO and CFO at divisional board
meetings.
— Meet with Responsible Business Executive
and Group Head of Sustainability to
identify improvement areas.
— Dedicated sustainability practitioners
within each business.
— Support local management and
development teams to implement Group
Sustainability Standards and to help
drive continual improvement.
— Monitor climate action performance
and present this to the divisional
management and project teams.
— Ensure Environmental Risk Register
in place throughout the lifespan of a
project, to identify and control risks
from land purchase through to design
and construction.
— Manage day-to-day energy efficiency,
implementation of new measures and
achievement of targets.
1
2
3
4
5
3
4
5
4
5
1
2
3
4
1
2
4
5
4
5
1
1
2
1
2
2010
Carbon reduction targets set
for our operations since the
launch of Our Vision in 2010.
2014
Climate change adaptation risk
exercise identified flooding,
overheating and water shortage
as the key risks for the homes
and places we develop.
2016
All new homes designed to
incorporate climate change
adaptation measures and
a bespoke overheating risk
assessment launched.
2018
First public reporting in line
with TCFD recommendations.
Procurement of 100%
renewable electricity for UK
operations.
2019
Undertook research and
implemented the outcomes on
designing low carbon homes.
2020
SBTs validated by the Science
Based Targets initiative (SBTi)
and new strategy for climate
action launched.
2022
Completed climate scenario
analysis to assess risks and
opportunities.
2023
Achieved original SBT for
scopes 1 and 2 (market-based)
emissions seven years early.
Launched embodied carbon
reduction targets at a project
level.
Embedded findings of climate
scenario analysis into risk
management processes.
2024
Achieved ‘A List’ status from
CDP for climate change action
and transparency.
Implemented a detailed supply
chain engagement strategy for
high impact material groups
and recognised as a CDP
Supplier Engagement Leader.
Completed energy audits
complying with the Energy
Savings Opportunity Scheme
(ESOS).
Climate progress
and roadmap
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Climate strategy
To respond to the key areas of risk and opportunities for the business, our climate strategy focuses on
reducing embodied carbon, operating low carbon construction sites, delivering low carbon homes and
integrating climate change resilience measures. Details on key climate actions taken in the year can be
found on pages 45 to 46.
Embodied carbon
Why this is a focus area
The majority of our scope 3 emissions relate to embodied
carbon arising from the activities of our supply chain,
from the energy used to extract raw materials, processing
these into construction products and transporting to site.
Reductions are targeted as part of our scope 3 SBT in
relation to category 1: purchased goods and services.
Link to business model
– Designing and
planning new homes
– Building new homes
and places
Link to climate risks
– Raw material cost
Key strategic actions
In 2021 we undertook embodied carbon assessments on an initial 15 projects to determine the impact of the
materials used to construct the homes we build. Using this information, our consultants set out a clear approach
for us to calculate our upfront embodied carbon on our future developments and in July 2022 we launched
quantitative targets for reducing emissions in line with our SBT. Embodied carbon assessments are now a
requirement of Berkeley’s Sustainability Standards. The assessments are undertaken during planning and design
stages, enabling our project teams to make more informed design, specification and sourcing decisions and to
take tangible action to reduce the carbon impact of each development and meet targets.
Recognising that embodied carbon is largely out of our direct control, we engage with suppliers and have
implemented a detailed supply chain engagement strategy for high impact material groups. We also play an
active role within several industry groups to share knowledge and lessons learnt. This includes the UKGBC’s
Advancing Net Zero programme and working groups through the Future Homes Hub and the Chartered
Institution of Building Services Engineers (CIBSE). We have also formed a peer-to-peer partnership with several
contractors to collaborate on a number of topics, including carbon.
Low carbon operations
Why this is a focus area
Emissions related to the energy used during our
construction, sales and office activities are under the
direct control of Berkeley and we have the greatest
ability to reduce these.
Reductions are targeted as part of our scopes 1
and 2 SBT.
Link to business model
– Building new homes
and places
Link to climate risks
– Pricing of GHG
emissions
Key strategic actions
Berkeley’s Sustainability Standards include minimum energy efficiency requirements for our construction sites,
offices and sales suites. Since 2018, 100% of UK electricity has been backed by Renewable Energy Guarantees
of Origin (REGOs).
To drive performance improvements, Berkeley’s operating divisions are set individual annual carbon budgets that
are actively monitored through live reporting in our online data management system. We also have an internal
carbon fee levied on each division, incentivising low carbon alternatives which may have a greater capital cost
but that deliver reduced operational costs. Best practice initiatives and lessons learnt are shared through
engagement events and via our intranet.
Low carbon homes
Why this is a focus area
A significant proportion of our scope 3 emissions relate
to the regulated energy use (such as heating, hot water
and lighting) of the homes that we are creating for our
customers.
Reductions are targeted as part of our scope 3 SBT in
relation to category 11: use of sold products.
Link to business model
– Designing and
planning new homes
– Building new homes
and places
– Marketing and selling
new homes
Link to climate risks
and opportunities
– Demand supply
imbalance
– Planning and design
requirements
– Technology evolution
– Skills shortages
Key strategic actions
Berkeley applies a fabric-first design approach, in combination with the most appropriate technology and
infrastructure solution for each individual development. We engage with our designers and collaborate with
wider industry through the UKGBC, Future Homes Hub and CIBSE to understand how to reduce the impact
of our buildings.
Berkeley’s Sustainability Standards include minimum energy efficiency requirements, including the provision
of 100% LED lighting. We communicate sustainable features to customers through the sales process, providing
accessible and home-specific information.
We measure the impact of our homes as part of our scope 3 SBT using the dwelling emission rate (DER);
calculated for new build homes to comply with building regulations. Performance also forms part of our Green
Finance Framework issued in 2022, with the eligibility criteria for this linked to homes achieving an Energy
Performance Certificate (EPC) rating of at least a B on brownfield land. In 2023 we set a requirement for all new
homes (excluding refurbishments) to meet a minimum energy efficiency rating of B. In addition to EPC ratings, we
monitor the Environmental Impact Rating (EIR) of new homes as a measure of carbon impact.
Climate change resilience
Why this is a focus area
Berkeley recognises that climatic changes will occur and
may affect the homes and places we develop. We need
to prepare our business for anticipated changes to the
climate and take action to mitigate risks.
Link to business model
– Land acquisition
– Designing and
planning new homes
– Building new homes
and places
– Placekeeping and
stewardship
Link to climate risks
and opportunities
– Heat stress
– Drought stress
– Subsidence
– Windstorm
– Flood
– Demand supply
imbalance
Key strategic actions
Key risks, such as subsidence and flood risk, are identified and assessed prior to land acquisition, with mitigation
measures identified and implemented as necessary.
Berkeley’s Sustainability Standards set minimum requirements, including the provision of rainwater harvesting
and sustainable drainage systems (SuDS). We target internal water efficiency levels beyond building regulation
requirements, delivered through the integration of water efficient fixtures and fittings.
Recognising the intrinsic link between nature and climate, Berkeley has pioneered biodiversity net gain (BNG) in
our industry since 2017. Having worked in partnership with the Wildfowl and Wetlands Trust (WWT) to develop
a Code of Practice for blue and green infrastructure, an integrated water management approach is now followed
whereby rainwater is stored and released into natural features to help manage surface water, also reducing the
urban heat island effect.
Climate-related disclosures continued
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Supply chain
– Our Common Materials Strategy for 10 key material
groups includes embodied carbon and other
sustainability requirements alongside technical
compliance and quality.
– New detailed supply chain engagement for high
impact materials (concrete, steel, aluminium, glass
and bricks) to assess the maturity of key suppliers
in their decarbonisation journey.
– Sustainability Standard for on-site contractors
includes requirements in relation to energy and
carbon reporting, as well as minimum energy
efficiency measures.
– Climate action raised in Group-wide Supply Chain
Conference in November 2023.
– Partner of the Supply Chain Sustainability School.
Industry
– Members of the UKGBC Advancing Net Zero
programme and active participants in working
groups, including developing guidance on
embodied carbon reporting.
– Active participants of the Future Homes Hub,
helping industry to understand and shape the
future for new and decarbonised homes.
– Contribute to CIBSE’s Homes for the Future
working group.
– Formed a peer-to-peer group to collaborate and
share learnings with several contractors, including
Skanska, Morgan Sindall and Laing O’Rourke.
Government
and
regulators
– Actively respond to Government consultations to
share our insights and experience, including both
the Future Homes and Buildings Standards and
scope 3 emissions reporting consultations in 2024.
– Met with Government representatives as part of
the Future Homes Hub to discuss our response
to the Future Homes and Buildings Standards
consultation.
– Host visits to our development sites to directly
engage and demonstrate challenges and progress.
Customers
– Development-specific information provided,
including climate change mitigation and
adaptation measures.
– Home demonstration at handover to ensure
customers aware of technologies integrated into
their home and efficiency measures.
– Sales employees receive sustainability training.
Employees
– Sustainability training provided to all employees,
with subject specific training (e.g. embodied
carbon, Future Homes and Buildings Standards
requirements) provided to relevant departments.
– Awareness campaigns including ‘lunch and
learn’ sessions and internal intranet to share best
practice.
Transition planning
Berkeley acknowledges the SBTi
definition of net zero, namely that
scopes 1, 2 and 3 emissions should
be reduced in the long-term (by
2050) by at least 90%, with residual
emissions neutralised.
This year we have been engaging
key internal stakeholders to compile
a Net Zero Transition Plan in line with
the October 2023 recommendations
of the Transition Plan Taskforce
(TPT). Our aim is to publish our plan
in 2025.
An overview of key elements within
our focus areas that we seek to
action on our route to net zero can
be found on pages 76 to 77.
Our transition plan is based on
decarbonisation routes and actions
that we currently understand to be
the direction our industry is moving
in, but plans and capabilities in this
area are constantly evolving, with
new pathways identified once
certain levers are triggered. We
have identified some of our key
dependencies and challenges on
page 75.
Given the significant dependencies
and challenges we face, and
uncertainty of the decarbonisation
pathways that will be available to
us in the medium to long-term, we
have selected a net zero date of
2045. Across scopes 1 and 2 we
are confident that we can achieve
net zero much earlier, however
we need to work further with our
supply chain to understand the
decarbonisation pathways of key
manufacturers and suppliers before
committing to a more stringent
timeline across all scopes. Our aim
is to update projections within
future iterations of our plan.
Our workforce
The transition to a low GHG economy will impact
our workers due to the rapid change in required
skills. We will invest in the training and competency
of our employees and supply chain workforce to
manage our transition and ensure that no one is
left behind as we meet our future goals.
Our customers and communities
Solutions to address climate change should not
come at an unaffordable price to our customers
or negatively impact the communities we help
to create. Customer insight is essential to gather
feedback about the technology installed in
new homes.
Our industry
We acknowledge the need for a coordinated
industry approach, as current inconsistencies are
leading to a lack of trust and investment across
the supply chain and delaying progress. Berkeley
will continue to work with others in the sector
and share feedback on new practices and
technologies to push forward the most effective
low carbon solutions.
Our environment
Recognising that nature helps to both mitigate
and adapt to future climate change pressures,
we will continue to prioritise the incorporation
of nature within our developments and work with
managing agents to ensure that these habitats
will be maintained for years to come.
Engagement
Collaboration is key to delivering climate action with key activities
as follows:
A just transition: recognising stakeholder impacts
Berkeley aims to ensure that our decarbonisation efforts include a fair and equitable ‘just transition’ that identifies
potential effects on our stakeholders, including our employees and communities.
Our transition is dependent on:
— The willingness, ability and speed of our direct supply chain to
decarbonise and reduce the embodied carbon of materials.
— The rate at which connected industries (e.g. utilities, transport,
education and skills) set out detailed transition plans.
— Customer acceptance of low carbon alternatives for heating
and powering homes.
— An industry-wide shift to low carbon alternatives and new
technologies.
— Workforce behaviour change to reduce avoidable emissions.
Our transition is challenged by:
— A low number of suppliers and contractors that measure their
emissions or have SBTs.
— The changing policy and regulatory landscape for housing.
— Customer concern over increased costs for electric homes, and
behavioural change required to operate non-traditional heating
solutions.
— A potential lack of capacity in the electricity grid to connect
new homes.
— The pace at which the electric machinery market develops.
— The cost uplift and sustainability credentials of biodiesel HVO.
Climate-related disclosures continued
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2024
2025
2026
2027
2028
2029
2030
2035
2040
2045
Climate-related disclosures continued
Key to milestones:
Low carbon operations
Low carbon homes
Embodied carbon
External milestones
From 2028 start
to undertake post
completion embodied
carbon assessments
All completed homes
to have undertaken
an upfront embodied
carbon assessment
by 2028
From 2030 all
completed homes
have a post completion
embodied carbon
assessment
First ‘zero carbon
ready’ homes that
are fossil fuel free
by 2026
Ensure all landlord
supplies with
managing agents
are on renewable
tariffs by 2029
All completed homes
‘zero carbon ready’
(excluding existing
district heating
systems) by 2030
All new homes to
be on a renewable
tariff on move in
day by 2030
All new UK
homes designed
to be ‘zero
carbon ready’
in 2025
Emissions (tCO2e)
Any replaced
vehicles to
be electric
from 2026
UK electricity grid
100% decarbonised
in 2035
UK ban on sale
of petrol and diesel
cars in 2035
Near-term SBTs
Net Zero
Reduce emissions
to <10% of our
baseline. Residual
emissions to be
offset using carbon
removal credits
Taking action in the near-term to meet our SBTs
• Engage with
manufacturers of high
impact materials
• Design to lower
embodied carbon
• Identify key
manufacturers
to support innovation
• Increase use of heat
pumps and renewables
• Transition district
heating to be net
zero ready
• Continue to research
new technologies
• Continue to purchase
100% renewable
electricity in the UK
• Transition away from
natural gas use in our
offices and sales suites
• Focus on energy
efficiency, particularly
out of hours usage
Our long-term aims to reach net zero
• Encourage and support
suppliers in setting SBTs
• Work in partnership
with our supply chain to
reduce emissions
• Ensure that all suppliers
provide product specific
EPDs
• Focus on as-built
performance, rather
than as-designed
• Improve energy demand
management in homes
• Focus on renewable
generation on our
developments
• Operate net zero
construction sites
• Install and use renewable
technology on our larger
construction sites
• Increase the use
of electric plant
• Explore nature-based solutions for carbon capture and storage
Our transition plan
600,000
500,000
400,000
300,000
200,000
100,000
0
Hartland Village, Fleet
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Risk management
Berkeley has recognised climate
change as one of its principal
operating risks since 2018. Our
regular process to identify and
assess climate-related risk is
incorporated within the Group’s risk
management framework, combining
a top-down strategic review and a
bottom-up review (see page 91).
The Responsible Business
Executive and Group Head of
Sustainability identify and monitor
strategic climate-related risks and
opportunities facing Berkeley
through the evaluation of evolving
legislation, customer feedback,
and industry and global trends.
Risks and opportunities are
identified for the short-term (e.g.
increased energy costs), through
to the medium-term (e.g. changes
to building regulations) and long-
term (e.g. transition to net zero
carbon homes).
The risks and opportunities cover
our upstream value chain (such
as material costs), our direct
operations, and the impact on our
customers of a changing climate.
Identified risks and opportunities
are shared with the Group’s Risk
Executive and reported on at each
Board meeting, with feedback
provided back down the business to
operating companies.
A fundamental principle of the
operating structure of Berkeley
is that the prime responsibility
for assessing, managing and
monitoring the majority of
operational risks rests with
divisional management teams,
ensuring that risk management
is embedded in our day-to-day
operations. At a development
level, the site-specific Project
Sustainability Strategy tracker and
Environmental Risk Register identify
risks and monitor action taken to
mitigate these from land purchase
through to completion.
Climate scenario analysis
Supplementing our regular
approach to risk management,
in 2022 Berkeley undertook
climate scenario analysis with
the support of WTW (formerly
Willis Towers Watson) to assess
risks and opportunities relating to
the transition to a lower carbon
economy and the physical impacts
of climate change. The climate
scenario analysis was overseen by
the CFO, the Executive Committee
member with responsibility for
sustainability, the Responsible
Business Executive and the Group
Head of Sustainability.
Selected climate scenarios draw
from widely used publicly available
and peer reviewed sources. These
include the Intergovernmental Panel
on Climate Change (IPCC) sixth
assessment report (AR6) and other
representative sources including
the International Energy Agency
(IEA). The scenarios selected are
not intended to be forecasts for the
future, but provide mechanisms to
assess plausible outcomes against
which Berkeley can assess its risks.
The results of the climate scenario
analysis (see tables on pages 78
to 83) are still considered to be
relevant and we continue to use
them within our strategic planning
processes. It is our intention to
periodically update the analysis,
as new information and modelling
becomes available or as significant
changes are made to our business.
Read more on our methodology
www.berkeleygroup.co.uk/
sustainabilitydisclosures
Transition risks
and opportunities
Representative scenarios assessed
included a below 2°C (using IEA
Sustainable Development Scenario
(SDS)) and limiting global warming
to 1.5°C (IEA Net Zero Emissions
by 2050). Where possible to
differentiate across the two scenarios
the assessment focused on the Net
Zero by 2050 scenario, in line with
the Paris Agreement targets.
Transition risks and opportunities
were assessed in relation to
aggressive climate mitigation
measures in both the short-term (0–2
years) and medium-term (to 2030).
The transition risks and opportunities
detailed in the table on pages 78 to
81 have been identified as having
potentially greater exposure or
impact on Berkeley, albeit none of
these are considered individually
material in the context of the Group’s
current year financial statements.
In addition, Berkeley has been
assessed as having a very
low exposure to the following
transitional drivers, with more detail
available in the climate scenario
analysis methodology document
on our website:
— Risks: Enhanced emissions
reporting obligations
requirements; climate change
litigation.
— Opportunities: Electric vehicle
use; cost and availability of
capital; reputational risk and
perceptions of investors,
employees and other
stakeholders.
Transitional risk description
Risk exposure and potential impact
Mitigation strategy
Pricing of GHG emissions could
be introduced as part of aggressive
climate mitigation and carbon
tax regimes.
Emissions offsets may see
an increase in demand and
therefore cost.
Demand for REGOs which Berkeley procures for its UK electricity consumption
is expected to rise. In the short-term the additional cost of REGOs is likely to
be less than £1 million per annum. By 2030, the supply of REGOs is expected
to stabilise as electricity use is anticipated to continue to shift away from fossil
fuel sources.
The introduction of direct carbon taxes through UK regulation in relation to
scopes 1 and 2 emissions, if implemented by 2030, would result in a new annual
cost which is likely to be less than £1 million.
Under Berkeley’s long-term plans to become a net zero business, depending
on supply chain actions and technology advances in the meantime, residual
scope 3 emissions may need to be offset at a point beyond 2030. The cost of
this could be significant given the relative size of scope 3 emissions compared
to scopes 1 and 2 (see metrics and targets on pages 84 to 86), over £10 million
per annum, although this amount and timing thereof is uncertain.
Our teams continue to focus on energy and carbon efficiency to reduce our electricity consumption and emissions.
We have seen a 77% reduction in scopes 1 and 2 (market-based) emissions since 2019, reducing the potential impact of
future carbon pricing regimes.
This year we completed energy audits across our divisional offices, sales suites and construction sites in line with the
requirements of the Energy Savings Opportunity Scheme (ESOS) with the recommendations being incorporated into
our energy reduction action plans and transition to net zero.
Berkeley monitors the implementation of potential carbon tax regimes, including the proposed UK Carbon Border
Adjustment Mechanism (CBAM) (see the raw material costs transitional risk).
Our approach to offsetting is being reviewed as part of the further development of our net zero transition plan.
Planning and design requirements
become increasingly stringent as
part of the UK’s efforts to meet its
2050 Net Zero target.
As part of its effort to meet its 2050 Net Zero target, it is possible that the
UK will need to increase the stringency of building planning and design
requirements. Berkeley would be required to respond to changing building
regulations which may have a cost impact.
In the short-term, homes on future phases of developments that are under
construction may require a different heating solution from current planned
solutions, for example switching to the installation of air source heat pumps.
These changes have been anticipated so there is little additional cost impact
expected.
In the longer term, planning regulation is not anticipated to lead to significant
costs as emerging requirements form part of development appraisals at the
land purchase stage or subsequently.
Operational committees of relevant functions (Land and Planning, Technical and Sustainability) monitor and discuss the
evolving regulatory landscape and impacts on the business, taking action as required.
Berkeley actively participates in Government consultations to help shape the direction of future regulation. In March
2024, we submitted a response to the consultation on the Future Homes and Buildings Standards. An inter-disciplinary
working group was set up to develop our response and a webinar was held to brief the business on the requirements of
the Standards.
We also participate in industry initiatives such as the Future Homes Hub, established to facilitate the collaboration
needed within and beyond the new homes sector to help meet the climate and environmental challenges ahead.
To negate potential additional cost impacts, emerging requirements form part of development appraisals at the land
purchase stage.
Summary of scenarios
1.5°C scenario – IEA Net Zero Emissions by 2050 and IPCC RCP 2.6
— Actions are taken to reduce emissions in the short-term and consequently high
transition risk is experienced.
— Physical risks are less severe than under the 4°C scenario and broadly similar
to the 2°C scenario.
Below 2°C scenario – IEA Sustainable Development Scenario (SDS)
— Actions are taken to reduce emissions in the short-term, albeit slightly less
aggressive than the 1.5°C scenario, and consequently high transition risk is
experienced.
— Physical risks less severe than under the 4°C scenario and broadly similar to
the 1.5°C scenario.
4°C scenario – IPCC RCP 8.5
— Increased level of warming associated with greater levels of acute and chronic
weather events.
— Geographic climatic shift in the South East of the UK.
Climate-related disclosures continued
Transitional risks
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165–232 | Financial Statements
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Berkeley Group 2024 Annual Report | 79
Transitional risk description
Risk exposure and potential impact
Mitigation strategy
Skills shortages impacting ability
to install low carbon technology
may result if sufficient investment
and training is not provided, leading
to a shortfall in supply of suitably
qualified professionals.
In order to reduce emissions to meet more stringent planning requirements
and sustainability targets, Berkeley will need access to skilled workers.
Berkeley is exposed to industry-wide resourcing issues. Whilst these are
currently not specific to low carbon technology, in the medium-term there
could be an increase in labour shortages, in part due to an aging workforce and
the need to upskill workers for net zero.
Whilst it is not possible to quantify the financial impact of this, we are taking
practical steps to mitigate the current skills shortage.
Berkeley is part of The 5% Club, maintaining at least 5% of its workforce in formal training and we work with our
supply chain to support and encourage training opportunities.
We upskill our staff through internal training, with all employees required to complete an ‘Introduction to Sustainability’
module via our Learning Management System. Awareness campaigns are also used to inform our people about low
carbon technologies being deployed on our sites and in our homes and how to communicate these to our customers.
Technology evolution leads to a
risk that technologies selected at
the outset of a planning process
could become outdated and
obsolete upon building completion
as a result of the development of
lower emission alternatives. Over
the long-term, increasing pace
of technological adaptation may
accelerate risk of obsolescence.
There is also the risk that
replacement of systems that are
dependent on fossil fuels could
result in higher costs.
Electrification of residential heating is encouraged through the proposed
Future Homes and Buildings Standards. The consultation set out the principle
of ‘sleeving’ for existing heat networks, which may require us to upgrade
existing energy centres and associated infrastructure on our major regeneration
sites with air source heat pump technology.
The pace of our progress may be hampered by planning regulations and at
points in time there is a risk we will not be able to deliver optimal technologies
as building regulations adjust more slowly to emerging technologies.
In the long-term, the inherent risk is that the market for the latest technologies
is nascent, which gives a risk of unreliable supply chains and reputational
damage, should technology selected for our developments not perform as
expected. Consequently, the potential costs could be significant, although are
considered unlikely as regulation and supply chain testing mean the adoption
of untested technologies remains improbable.
Berkeley continually assesses nascent technologies and has already invested in heat pumps and photovoltaics.
In some cases, particularly in our out of London sites, we need to ensure the necessary localised infrastructure
upgrades are in place to support additional electrical loads ahead of the implementation of the Future Homes and
Buildings Standards, whilst noting that there is a dependency on the national grid to decarbonise. There are no
significant additional costs expected in the short-term.
Raw material costs could increase
if suppliers pass through the impact
of carbon pricing for high embodied
carbon building materials. For
example, widely used steel,
concrete, cement and glass all have
energy intensive production which
could require increased energy
input costs or be subject to carbon
tax regimes.
Under a 1.5°C scenario, energy intensive raw materials such as steel, concrete
and glass will be particularly impacted by carbon-driven cost increases in the
absence of alternative technological advances.
In the short-term, there is a low exposure to cost increases in the region of £1
million per annum. Nonetheless, by 2030 the inherent risk from additional raw
material costs could be significant (exceeding £10 million per annum) relative
to the cost today, although it is inherently difficult to disassociate this cost from
other market forces and technology advances (both positive and negative).
Berkeley has a diverse supply chain drawing material from a wide range of suppliers and we regularly assess material
costs as part of development appraisals.
We are undertaking embodied carbon assessments to better quantify the emissions within the materials of our
developments to inform future design. The marketplace will also change as suppliers decarbonise their own direct
activities, technology evolves and macroeconomic factors impact costs (and house pricing).
This year we have developed a new supply chain engagement strategy to work with our supply chain to understand
and drive down embodied carbon. This focuses on high impact materials (concrete, steel, aluminium, glass and bricks)
and aims to assess the maturity of our key suppliers in their decarbonisation journey, providing our teams with practical
information to support their decision-making process.
To understand the potential impact the introduction of the UK CBAM may have on Berkeley and its supply chain, we are
actively involved in HMRC’s consultation.
Transitional opportunity
Transitional opportunity description
Opportunity exposure and potential impact
Realisation strategy
Demand supply imbalance may
lead to an opportunity whereby
homes with strong sustainability-
related credentials are preferable to
buyers as energy prices increase.
Whilst in the short-term the scale of opportunity for higher demand is not
necessarily significant, as climate awareness and energy prices increase,
property buyers are expected to favour lower carbon homes and expect
greater operational energy efficiency. In addition, customer preference for new
build over second-hand housing stock could further support demand for more
efficient homes, with the latest technologies.
Responding to the increasing barriers to entry as regulation rapidly changes
will require experienced and well capitalised companies; this could further
reduce the supply of new homes.
Berkeley’s focus on urban, brownfield regeneration development is inherently more sustainable. Through climate action,
wider Our Vision 2030 initiatives and our Sustainability Standards, we look to positively influence customer demand. In
2023, we set a requirement for all new homes (excluding refurbishments) to meet a minimum EPC rating of B.
We actively communicate sustainable features to customers throughout our sales process, providing accessible and
home-specific information within marketing information.
Climate-related disclosures continued
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Berkeley Group 2024 Annual Report | 81
Chronic risks
Physical risk description
Risk exposure and potential impact
Mitigation strategy
Heat stress increases
gradually and
becomes a moderate
risk beyond 2050 and
towards the end of the
current century. This
could mean frequent
heatwaves (more than
20 days annually).
The majority of England (in particular South East, South West and the Midlands) will be
exposed to more material heat stress by mid-century.
Correspondingly, 84% of Berkeley’s homes will be exposed to heat stress in the decades
beyond 2050.
The potential for overheating in our homes arises through heat stress from climate change
and the urban heat island effect.
Berkeley introduced a bespoke internal overheating risk assessment in 2016. This helped to ensure that all project teams
assessed and mitigated this risk. Overheating risk is now incorporated within the 2021 Building Regulations. Where
homes are deemed to be at a higher risk, more detailed dynamic thermal modelling is undertaken.
Potential mitigation measures may include thicker insulation to external walls, smaller windows with thermally efficient
glass, incorporating shading through the design such as brise soleil to reduce heat gain, balconies and enhanced
ventilation. In addition, Berkeley incorporates soft landscaping as part of its biodiversity net gain (BNG) approach
which can partially mitigate the heat island effect.
Drought stress
becomes more
significant by the
2050s, which would
see three to four
months of drought
duration annually.
Similar to heat stress, the majority of England (in particular South East, South West and the
Midlands) will be exposed to more material drought conditions by mid-century.
Correspondingly, 92% of Berkeley’s homes will be exposed to drought conditions for three to
four months annually in the decades beyond 2050. A significantly smaller proportion (5%) of
homes could see drought conditions for six months of the year.
The main implications from drought stress are water scarcity and impact on green areas of
our developments.
Working with the Wildfowl and Wetlands Trust (WWT) we have developed a Code of Practice for our teams on
integrating blue and green infrastructure into our developments. An integrated water management approach is
followed, whereby rainwater is stored and released into natural features to help manage surface water. The attenuation
of water run-off provides significant opportunities to hold water for reuse in the home and our landscapes. We also
consider the impact of drought on the design of our green spaces by incorporating drought resilient planting.
As part of Berkeley’s Sustainability Standards, we have minimum requirements including provision of rainwater
harvesting and sustainable drainage systems (SuDS) on our developments. We reduce water usage by designing
homes with water efficient fixtures and fittings.
Subsidence conditions
and susceptibility for
soils like clay are likely
to be influenced in
the 2030s and further
increase beyond 2050
due to warmer and
drier summers as well
as wetter winters.
Large areas in the South East and Eastern England are exposed to increasing subsidence
conditions, including Greater London and the Thames Estuary due to the clay soils.
The soil conditions for 90% of Berkeley’s current homes could potentially be impacted
beyond 2050.
The risk of subsidence is assessed at a project level prior to land acquisition. During detailed design, external experts
undertake further assessment and ensure appropriate measures are incorporated to mitigate these risks.
In London, where the risk of subsidence is linked to the underlying London clay, our developments have piled
foundations which are engineered to ensure the buildings are anchored deep into the ground. There are additional
factors of safety margins for foundations/piling already in place which mitigates against the risk of subsidence.
For our housing developments, the foundation design is agreed with specialist consultants to ensure it is appropriate
for the underlying geology and risk of subsidence.
Acute risks
Physical risk description
Risk exposure and potential impact
Mitigation strategy
Windstorm risk
already exists for all of
Berkeley’s sites. There
is no current scientific
consensus that the UK
will see an increase in
windstorm intensity
and the risk therefore
remains unchanged
from the present day.
The typical windstorm hazard could pose a moderate risk for 100% of Berkeley’s sites. This
does not reflect a change to the present day levels of exposure, probability or potential losses
of such risk.
The main implication from windstorms are physical damage to completed property and
construction assets.
Each of our developments is designed by specialist teams, selecting appropriate materials and fixing details which can
withstand local conditions. In respect of mid- to high-rise buildings, wind engineering includes dynamic or physical
modelling, analysis and testing at the pre-planning stage. Façade design ensures mechanical fixings to areas such
as roofs and balconies to resist elements being removed by high wind, as well as other mitigating features such as
screening and planting.
In terms of the occupation of our buildings, mitigation includes wind alerts from anemometers being communicated to
residents with instructions to close windows and secure loose objects from high level amenity spaces.
High winds also pose a risk to construction operations. We monitor alerts for high wind events and send bulletins to our
site teams ahead of storms to ensure site safety measures are adhered to. Our tower cranes are fitted with anemometers
to alert the crane driver and safe lifting team, thus preventing crane operations during high winds.
Flood risk increases
due to the potential
for coastal flooding
from sea level rise, as
well as surface and
groundwater flooding
from heavy rainfall.
By 2050 there are no further sites exposed beyond the 6% of sites already at risk in the
present day, given the predominance of Berkeley’s portfolio in London and the flood defences
in place in London. However, these sites could flood more often.
The main implication from flood is physical damage to completed property and construction
assets.
Probabilistic loss modelling estimates that by 2050 the physical damage from flooding under
a 4°C scenario could exceed £27 million in a severe year (i.e. 1 in 200 year return period) and
£60 million in an extreme year (i.e. a 1 in 1,000 year return period).
Flood risk is assessed pre-acquisition for all sites. Flood risk assessments have been a standard part of our development
planning and design for many years if the developments fall within a flood zone. The flood risk assessments vary in
extent based on the potential risk and already include allowances for the effects of climate change. Our homes are
designed to the flood risk that is identified in the flood risk assessment. This includes designing to a 1 in 30 year, 1 in 100
year or 1 in 1,000 year flood. Within our developments, design mitigation measures include raising the levels of the lower
floors and designing SuDS to hold and store water in times of extreme rainfall.
Physical risks
Physical risks have been assessed over the long-term to 2050 as this is when the most significant impacts are likely
to manifest, with the below table summarising the predominant physical risks for the IPCC 1.5°C (RCP 2.6) and 4°C
(RCP 8.5) scenarios. Exposure details are in 2050 and beyond under a 4°C scenario.
Probabilistic loss modelling was used to analyse the financial impact of acute risks (windstorm and flood) before
any mitigation or adaptation measures, and irrespective of insurance or other recovery or consideration of financial
responsibility for any such losses. As Berkeley already insures against potential losses from catastrophic events, the
primary cost exposure for Berkeley under a 4°C scenario could be an increase to insurance premiums for assets
under construction.
Climate-related disclosures continued
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Berkeley Group 2024 Annual Report | 83
Berkeley continues to purchase
Renewable Energy Guarantees
of Origin (REGOs) to certify that
100% of UK electricity is from a
renewable source (i.e. solar, wind
or hydro power).
Further information on our scopes 1
and 2 (market-based and location-
based) emissions is contained
within the Directors’ Report on
pages 160 to 162.
Use of carbon credits
From 2018 to 2023, Berkeley
voluntarily supported verified
projects in realising carbon emissions
reductions elsewhere to neutralise
residual emissions from our direct
operations (scopes 1 and 2). In light
of the evolving voluntary carbon
market and emerging practice
around offsetting residual scope
3 emissions, we are reviewing our
approach to carbon credits as part
of our development of our Net Zero
Transition Plan. Consequently, this
year we have made the decision not
to purchase carbon credits to cover
our full scopes 1 and 2 emissions.
We have however continued with
our support of the UK-based
Retrofit Credits project developed
by HACT and PNZ Carbon, given
the pioneering approach this unique
programme is implementing; the
project uses funds to retrofit social
housing through the installation of
energy efficient measures such as
improved insulation, thereby reducing
emissions of existing housing stock
whilst also delivering social value.
Metrics and targets
To assess and manage performance
in relation to climate action, Berkeley
monitors and reports on a range of
metrics in line with its operational
boundary (including joint venture
activities). Progress against science-
based targets (SBTs) is disclosed,
in addition to topics detailed in the
SASB Home Builders Sustainability
Accounting Standard.
Scopes 1 and 2 emissions
Last year, Berkeley was pleased to
announce that it had surpassed its
original SBT for a 50% reduction in
absolute scopes 1 and 2 (market-
based) GHG emissions as validated
by the Science Based Targets
initiative (SBTi), having achieved a
76% reduction. As a result, in 2024
we have calculated an updated SBT
in line with the SBTi’s latest target
setting tools. Our new near-term
target is to ‘reduce absolute scopes
1 and 2 (market-based) emissions
by 82% by FY2030 from a FY2019
baseline year’. We plan to submit
this target to the SBTi for validation
in summer 2024.
This year we have seen a 77%
decrease compared to our baseline
year. Reductions to date have
primarily been the result of a
transition from using fossil diesel
on site to using biodiesel HVO
(Hydrotreated Vegetable Oil); 96%
of directly purchased diesel in 2024
has been this low carbon, renewable
alternative.
Scope 3 emissions
Berkeley’s most significant impacts
occur across our value chain
(scope 3), including the embodied
carbon of our homes resulting from
the activities of our supply chain
(category 1: purchased goods and
services) and the energy use by
our customers in homes once sold
(category 11: use of sold products).
These material categories account
for approximately 99% of our total
emissions.
Recognising the importance of
taking action to reduce scope 3
emissions, we have set a validated
SBT to ‘reduce scope 3 purchased
goods and services and use of
sold products GHG emissions by
40% per square metre of legally
completed floor area’.
Since our 2019 baseline year,
we have seen a 1% decrease in
emissions intensity. It should be
noted that reductions in emissions
from dedicated action taken at a
project level can take time to be
realised, due to there often being
several years between the planning
and design phase of a project
through to legal completions
occurring. Berkeley is also highly
dependent on supply chain
action to reduce emissions, with
our priority being to complete
embodied carbon assessments
to guide design and material
specifications, at the same time as
engaging with key contractors and
suppliers.
Embodied carbon (category 1:
purchased goods and services)
Berkeley currently uses a
methodology based upon spend
data to estimate the embodied
carbon of materials and services
used in the development of our
homes and places.
To convert spend in the financial
year into emissions we apply
Comprehensive Environmental Data
Archive (CEDA) factors; listed by
the GHG Protocol as a third-party
database to assist users in collecting
data for product lifecycle and
corporate value chain (scope 3) GHG
inventories.
The limitations of reporting using
a spend-based methodology are
recognised by Berkeley and we
have taken action to move away
from this method towards more
specific material data calculations in
future years.
By their very nature, supply chain
emissions are difficult to accurately
measure as they relate to processes
across multiple and wide-ranging
settings that we are unable to
control. We are however making
progress in our understanding
through the completion of
embodied carbon assessments, the
introduction of a material delivery
data capture system and supply
chain engagement (see page 46).
Another challenge that we and
others face across the industry
is defining the embodied carbon
impact of our developments in the
reporting context of a financial
year, as projects are at different
stages of the development lifecycle,
each with a complex and global
supply chain of materials. This
issue is compounded at Berkeley
by our bespoke approach to
development, with each site having
a unique design and procurement
undertaken locally by each of
our operating businesses, along
with the period of time our
developments span, particularly our
large-scale regeneration sites.
Recognising that positive change
is required to reliably report
embodied carbon data across our
industry, we are pleased to have
actively worked with the UKGBC in
its development and launch in 2024
of two guidance documents relating
to modelling embodied carbon and
using assessments within scope 3
reporting.
Low carbon homes (category 11:
use of sold products)
To estimate the lifetime carbon
impact of our completed homes,
we apply the calculated Dwelling
Emission Rate (DER) across
a 60-year period, in line with
industry guidance. We do not
take into account the anticipated
decarbonisation of the UK
electricity grid due to the variables
involved.
Significant reductions in this area
are anticipated in the coming years
through the implementation of
more stringent building regulations
and the Future Homes and
Buildings Standards. Our view is
that we are on track to achieve our
scope 3 SBT in relation to emissions
resulting from the use of sold
products.
Data enhancements to evolve
emissions reporting in this area are
also expected through the changing
regulations. We will continue to
work with industry and ensure our
reporting reflects the prevailing and
accepted methodology.
Industry-based metrics
Berkeley discloses industry-based
metrics in line with the SASB
Home Builders Sustainability
Accounting Standard and is an
active member of the Future Homes
Hub’s working group established
to develop a shared set of metrics
for the industry in relation to
climate change and sustainability
performance.
To recognise climate-related
risks and opportunities, we have
additional targets to our SBTs
with associated metrics included
within our climate action plans.
For example, we monitor measures
implemented to manage the
physical risks to our homes
and places such as heat stress,
drought stress and flood through
the reporting of overheating risk
assessments, water efficiency
and sustainable drainage systems
(SuDS).
Climate-related disclosures continued
HACT and PNZ Carbon would like to thank Berkeley
for their continued support of the Retrofit Credits
programme, which looks at assisting towards the
increased decarbonisation of UK homes and the
support of people who live in them.
Berkeley’s support in FY2023 created a real, tangible
difference, and positively impacted the environment
and the lives of residents with the part funding of
the retrofit measures undertaken on 1,133 UK homes,
resulting in the reduction of 250 tonnes of CO2 and
£145,000 of facilitated social value.
Antoine Pellet | Head of Retrofit Credits, HACT
Royal Arsenal Riverside, Greenwich
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84 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 85
Metric
2024
Detail
Number of controlled lots
(IF-HB-000.A)
54,081
Lots on owned or unconditionally contracted sites as of the last day of the
reporting period.
Number of homes
delivered (IF-HB-000.B)
3,927
The number of homes that completed within the reporting period.
Number of active selling
communities
(IF-HB-000.C)
51
Includes sites that have an implementable planning consent and that are
in production.
Land use and ecological impacts
Number of (1) lots and
(2) homes delivered on
redevelopment sites
(IF-HB-160a.1)
(1) 46,041
(85%)
(2) 3,421
(87%)
Redevelopment sites are those that have been previously developed, including the
replacement or refurbishment of existing structures, i.e. those sites considered to be
brownfield land.
Number of (1) lots and
(2) homes delivered in
regions with High or
Extremely High Baseline
Water Stress
(IF-HB-160a.2)
(1) 46,351
(86%)
(2) 3,668
(93%)
London and large areas of the South of England are identified as an area of High
Baseline Water Stress within the World Resources Institute’s (WRI) Water Risk Atlas
Tool. We recognise the need to balance providing new homes in these areas with
reducing their impact on existing resources through the incorporation of water
efficient fittings and sustainable drainage systems (SuDS).
Total amount of monetary
losses as a result of legal
proceedings associated
with environmental
regulations
(IF-HB-160a.3)
£nil
The Group had no environmental prosecutions in the reporting period and
subsequently no monetary losses.
Discussion of process to
integrate environmental
considerations into site
selection, site design, and
site development and
construction
(IF-HB-160a.4)
N/a
Our Vision 2030 is supported by our Sustainability Strategy which includes
Sustainability Standards and procedures detailing the minimum Berkeley
requirements for our day-to-day operations and our new developments. These
ensure that we have processes in place to integrate environmental considerations
throughout the development process. For example:
• Site selection: Berkeley focuses on urban brownfield regeneration, which is
inherently sustainable. Prior to land purchase, Berkeley completes an assessment
which seeks to identify all types of risks, including those related to environmental
factors, such as climate change (e.g. flood risk), land contamination and
ecology. These assessments are site specific, taking into account the unique
characteristics of each development.
• Site design: Our Sustainability Standards detail minimum requirements for new
developments including achieving an internal water use of less than 105 litres per
person per day, designing for climate change adaptation (e.g. through the use of
SuDS) and providing electrical vehicle charging points.
• Site development and construction: Berkeley has dedicated sustainability
professionals within each of our operating companies, who support project
teams by providing advice and driving environmental improvements (e.g. energy
and water efficiency). Each site has an Environmental Risk Register and a site
sustainability assessment is undertaken by our internal sustainability team at
least quarterly to monitor performance.
Design for resource efficiency
(1) Number of homes
that obtained a certified
residential energy
efficiency rating and
(2) average rating
(IF-HB-410a.1)
(1) 3,927
(100%)
(2) 84
(‘B’)
All homes legally completed by Berkeley in the year had an Energy Performance
Certificate (EPC) with an average energy efficiency rating of 84 (‘B’). Note that
ratings range from ‘A’ (very efficient) to ‘G’ (inefficient). In the year, 93% legally
completed homes were rated B or above.
Percentage of installed
water fixtures certified
to a water efficiency
standard (IF-HB-410a.2)
N/a
The UK does not currently have water efficiency standards for fixtures;
mandatory water efficiency labelling is due to be launched in 2025. The internal
water efficiency of our legally completed homes in the year is provided as an
alternative. Target: 105 litres per person per day; Achieved average: 101.2 litres per
person per day.
Metric
Unit
2024
2023
Baseline
2019
Link to
climate
strategy
Link to climate
risks and
opportunities
Reduce absolute scopes 1 and 2 GHG emissions by 82% by FY2030
Absolute scopes 1 and 2 (market-based)
emissions
tCO2e
917 A
963
3,980
Pricing
of GHG
emissions
Emissions
offsets
Percentage change in emissions compared
to FY2019 (SBT baseline year)
%
-77
-76
–
Energy consumption associated with
scopes 1 and 2 emissions
MWh
27,505 A
30,420
35,681
Energy consumption from
renewable sources
%
88
89
60
Purchased electricity backed by REGOs
%
98.3
98.7
99.1
Purchased electricity in the UK backed
by REGOs
%
100
100
100
Reduce scope 3 purchased goods and services and use of sold products GHG emissions by 40% per square metre of
legally completed floor area by FY2030
Absolute scope 3 emissions
(categories 1 and 11)
tCO2e
519,040 A
574,709
585,690
Pricing
of GHG
emissions
Emissions
offsets
Planning
and design
requirements
Skills
shortages
Technology
evolution
Raw material
costs
Demand
supply
imbalance
Scope 3 (categories 1 and 11)
emissions intensity
tCO2e/
100 sqm
169
161
171
Percentage change in emissions intensity
compared to FY2019 (SBT baseline year)
%
-1
-6
–
Absolute emissions for category 1:
purchased goods and services
tCO2e
304,476 A
321,314
352,087
Emissions intensity for category 1:
purchased goods and services
tCO2e/
100 sqm
99
90
103
Absolute emissions for category 11:
use of sold products
tCO2e
214,564 A
253,395
233,603
Emissions intensity for category 11:
use of sold products
tCO2e/
100 sqm
70
71
68
Completed homes with an Energy
Performance Certificate (EPC) rated A or B
%
93
93
93
Completed homes with an Environmental
Impact Rating (EIR) of A or B
%
96
98
–
Average Dwelling Emission Rate (DER)
of completed homes
kgCO2/
m2/yr
12.08
12.13
11.72
Average percentage improvement in
DER over Target Emission Rate (TER)
for completed homes
%
32
31
34
Implement measures to manage climate risks for our developments and business
Average internal water efficiency of
completed homes
lpppd
101.2
102.6
102.6
Drought
stress
Flood
Heat stress
Subsidence
Demand
supply
imbalance
Live development sites that have
sustainable drainage systems (SuDS)
%
100
100
98
Live development sites that have assessed
overheating risk
%
82
76
–
Live development sites that have assessed
subsidence risk
%
59
–
–
A 2024 information has been separately subject to limited assurance by KPMG LLP. Further details of the assurance provided in 2024,
including the independent assurance report and our methodology for reporting emissions, can be found at www.berkeleygroup.co.uk/
sustainabilitydisclosures
Berkeley targets and metrics
SASB metrics (climate-related)
Climate-related disclosures continued
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
86 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 87
Non-financial and sustainability
information statement
Reporting
requirement
Where to read more in this report to understand the impact
on the business, and the outcome of applying our policies
Page reference
Relevant policies in place that
govern our approach
Environmental
matters
Our Vision 2030 progress
Climate-related disclosures
Our stakeholders: Environment
ESG performance
45 to 49
68 to 88
64
66
– Sustainability
– Climate Change
– Sustainable Specification
and Procurement
Climate-related
financial
disclosures
Climate-related disclosures
Our Vision 2030 progress
Directors’ report: Scopes 1 and 2 greenhouse gas
emissions and energy consumption
68 to 88
45 to 46
160 to 162
– Climate Change
– Sustainability
Employees
Our Vision 2030 progress
Our stakeholders: Employees
ESG performance
50 to 54
61
67
– Employee
– Equality and Diversity
– Health, Safety and Wellbeing
Respect for
human rights
Our Vision 2030 progress
Our stakeholders: Employees, Supply chain
Whistleblowing
50 to 56
61 to 62
114
– Modern Slavery Statement
– Human Rights, Modern
Slavery and Child Labour
– Equality and Diversity
– Whistleblowing
– Sustainable Specification
and Procurement
Social matters
Our Vision 2030 progress
The Berkeley Foundation: A force for change
Our stakeholders: Communities and local government,
Employees, Supply chain
Creating long-term sustainable value
40 to 44 and
50 to 56
57
60 to 62
14 to 15
– Sustainability
– Sustainable Specification
and Procurement
– Building Safety and Quality
Assurance
Anti-bribery
and anti-
corruption
Bribery Act and Anti‑Money Laundering Regulations
115
– Anti-Bribery and Corruption
– Business Ethics
– Corporate Hospitality and
Promotional Expenditure
– Whistleblowing
– Anti-Facilitation of
Tax Evasion
How we
manage risk
How we manage risk
Climate-related disclosures
90 to 103
78 to 83
Business model
Our business model
Brownfield regeneration at scale
Creating long-term sustainable value
12 to 13
10 to 11
14 to 15
Non-financial
KPIs
Key Performance Indicators (KPIs)
In addition to these non-financial KPIs, Berkeley
monitors and reports on business performance
through a host of other data, highlights and awards.
Some of these are detailed within the Our Vision 2030
business strategy sections of this report
ESG performance
Creating long-term sustainable value
33
38 to 57
66 to 67
14 to 15
The following table summarises where our non-financial
information can be found in our Annual Report and within
our policies available on our website.
Climate-related disclosures continued
SaSB metrics (climate-related) continued
metric
2024
Detail
Design for resource efficiency continued
Number of homes
delivered certified to a
third-party multi-attribute
green building standard
(IF-HB-410a.3)
n/a
There is no established multi-attribute green building standard specifically for homes
in the UK. All Berkeley homes are subject to UK building regulations.
Description of risks and
opportunities related to
incorporating resource
efficiency into home
design, and how benefits
are communicated to
customers (IF-HB-410a.4)
n/a
We design to high fabric efficiency to reduce energy demand and install water
saving fixtures and fittings. A key risk associated with the design of energy efficient
homes is the unintended consequence of overheating and therefore we consider
overall building design and performance. We have Sustainability Standards to
communicate sustainability with customers at all stages in the purchasing process,
from initial marketing brochures to detailed information upon completion and
handover of the home.
Climate change adaptation
Number of lots located in
100-year flood zones
(IF-HB-420a.1)
11,266
(21%)
This figure includes lots in areas assigned as Flood Zone 3. We undertake flood
risk assessments on every site as part of the planning process and take measures
to ensure that the development design takes into account and mitigates flood risk.
Design measures include raising lower floor levels and designing SuDS to manage
rainwater by storing it and releasing it into well designed natural features to help
manage surface water and reduce the impacts of flooding.
Description of climate
change risk exposure
analysis, degree of
systematic portfolio
exposure, and strategies
for mitigating risks
(IF-HB-420a.2)
n/a
Berkeley routinely evaluates climate-related risks and opportunities as part of our
ongoing risk assessment process. Detailed climate scenario analysis was completed
in 2022. Read more on pages 78 to 83.
SaSB metrics (other)
In addition to the climate-related metrics of SASB, Berkeley has chosen to disclose the additional sustainability
topics and accounting metrics below in line with the Home Builders Sustainability Accounting Standard.
metric
2024
Detail
Workplace health and safety
(1) Total recordable
incident rate (TRIR) and
(2) fatality rate for
(a) direct employees and
(b) contract employees
(IF-HB-320a.1)
(1a) aiir:
36
(1b) aiir:
57
(2a; 2b) 0
Annual Injury Incidence Rate (AIIR) per 100,000 people reported in line with UK
Health and Safety Executive (HSE) methodology. Our combined rate for direct and
contract employees is 52 which outperforms the construction sector average of 296
(HSE, October 2023). There have been no work-related fatalities in the year.
Community impacts of new developments
Description of how
proximity and access to
infrastructure, services,
and economic centres
affect site selection and
development decisions
(IF-HB-410b.1)
n/a
At Berkeley, proximity to key transport nodes is a factor in the selection of land and
the majority of sites are on brownfield land, so are located within towns and cities
with existing transport and economic centres. Once the land has been purchased,
we have commitments within our Sustainability Standards around factors such as
sustainable transport.
Number of (1) lots and
(2) homes delivered on
infill sites (IF-HB-410b.2)
(1) 42,719
(79%)
(2) 3,210
(82%)
Infill sites are defined as vacant or underutilised lots of land, served by existing
physical installations such as roads, power lines, sewer and water, and other
infrastructure. In line with the SASB definition, our redevelopment sites are only
considered infill if they additionally meet this criteria.
(1) Number of homes
delivered in compact
developments and
(2) average density
(IF-HB-410b.3)
(1) 3,701
(94%)
(2) not
currently
analysed
The main types of compact developments delivered by Berkeley are mixed use
developments and neighbourhood developments with community facilities.
88 | BeRkeley GRoup 2024 ANNUAL REPORT
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104–164 | Corporate Governance
165–232 | Financial Statements
88 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 89
How we manage risk
The Group’s risk appetite is
reviewed annually and approved by
the Board. This review guides the
actions we take to implement our
strategy.
The last year has seen continued
market uncertainty and volatility
in the operating environment, with
interest rates remaining at elevated
levels alongside weak UK economic
growth projections, leading to
continued suppressed market
sentiment.
Accordingly, Berkeley has evolved
its strategy in the year to position
the business appropriately. The risk
landscape seems likely to remain
volatile in the medium term, and
hence our risk appetite will remain
dynamic and respectful of the
cyclical nature of our industry and
the risks and opportunities this
presents.
The principal operating risks and
our approach to mitigating them
are described in more detail on
pages 94 to 103.
Principal risks
The assessment of risk and embedding risk
management throughout Berkeley are key elements
of setting and delivering the Group’s strategy.
In accordance with provisions of the 2018 UK Corporate Governance Code,
the Directors have carried out a robust assessment of the emerging and
principal risks facing the Group, including those that would threaten its
business model, future performance, solvency or liquidity. There are also
areas of our existing principal risks that are evolving over time.
Risk appetite
The Board is responsible for
setting and monitoring the
risk appetite for Berkeley.
Risk appetite relates to the
amount of risk the Company
may seek or accept at any
given time when pursuing
its strategic objectives, in
the context of the prevailing
operating environment.
The Board’s approach to,
and appetite for risk is
summarised opposite.
Cyclical market
Berkeley’s business model is
centred on the Board’s appreciation
of the risks of the cyclical market in
which the business operates, where
market sentiment and transaction
levels can change quickly, requiring
us to adopt a flexible approach
to our investment decisions. This
can be dependent on where the
Board believes we are within any
particular cycle.
Autonomy and values
Berkeley has recognised brands
and autonomous, talented and
experienced teams who embrace
Berkeley’s values in their approach.
Berkeley creates bespoke and
innovative solutions for each
site which requires experienced,
intensive management.
Operational complexity
The business model also recognises
the complexity of the planning
and delivery of the sites Berkeley
undertakes, alongside their capital
intensive nature. It mitigates this risk
by focusing its activities in London
and the South East, recognising
the importance of relationships and
local knowledge and having highly
skilled and experienced teams
in place.
Financial strength
This translates into an approach
that, at all times through the cycle,
keeps financial risk low, recognising
the operational risks within
the business.
Through our strong financial
position we are therefore able to
take, under normal circumstances,
increased operational risk to
deliver robust risk-adjusted
returns, within the parameters
of our business model.
Culture and purpose
Berkeley’s unique culture is the
sum of its shared values, vision
and overarching sense of purpose.
Together, they have a dynamic
and energising effect on the way
the business operates, shaping
our purpose, long-term Our Vision
2030 business strategy, brand and
day-to-day behaviours. Our culture
sets the standards by which we
judge our behaviours, products and
internal processes.
Emerging risks
Berkeley faces a number of
uncertainties that have the potential
to be materially significant to our
long-term strategy but cannot
be fully defined as a specific risk
at present, and therefore cannot
be fully assessed or managed.
These emerging risks typically
have a long time horizon and
are discussed and agreed by the
Board on a regular basis.
Risk management framework
Our approach to risk management combines a top-down strategic
review and feedback of risks by the Board, coupled with a bottom-up
review and reporting of risk by each operating business.
Board
The Board takes overall responsibility for risk management, and the
assessment of risk. Embedding risk management into the business is
a key element of setting and delivering our strategy.
The top-down assessment of risk by the Board includes a review of the
external environment in which Berkeley operates, which complements
the deep seated knowledge of the industry and operations by the
Executive Committee members. This takes into account the likelihood
and impact of risks, whether pre-existing or emerging, which may
materialise in the short or longer-term.
Emerging risks are also considered at each Board meeting and are
then fed down to the operating businesses for further review and
consideration, if applicable.
Audit Committee
The Audit Committee has responsibility for ensuring the effectiveness
of risk management and internal controls on behalf of the Board. The
controls and processes surrounding how we assess risk across the Group
are explained further in the Audit Committee Report on pages 126 to 129.
Executive Committee
Risk registers at operational level are overlain by wider strategic risks
facing the Group, such as macro-economic risk. This is then assessed
and managed by the Board and Executive Committee.
Operational management
A fundamental principle of the operating structure of the Group is that
the prime responsibility for assessing, managing and monitoring the
majority of the risks rests with operational management, thus ensuring
that risk management is embedded in our day-to-day operations.
All employees
All employees are encouraged to be alert to risks associated with the
activities they perform and to report issues and suggest alternative
approaches as appropriate.
Our top-down approach
Our bottom-up approach
01–103 | Strategic Report
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Berkeley Group 2024 Annual Report | 91
Financial risks
Viability statement
Exposure to
financial risks
The financial risks to which Berkeley
is exposed include:
Liquidity risk
The risk that the funding required
for the Group to pursue its activities
may not be available.
Market interest rate risk
The risk that Group financing
activities are affected by
fluctuations in market interest rates.
Market credit risk
The risk that counterparties (mainly
customers) will default on their
contractual obligations, resulting
in a loss to the Group. The Group’s
exposure to credit risk is comprised
of cash and cash equivalents, loans
to joint ventures and trade and
other receivables.
Other financial risks
Berkeley contracts all of its
sales and the vast majority of its
purchases in sterling, and so has
no significant exposure to currency
risk, but does recognise that its
credit risk includes receivables
from customers in a range of
jurisdictions who are themselves
exposed to currency risk in
contracting in sterling.
Berkeley is a unique asset-focused
development business that seeks
to manage risk and generate
value through market cycles.
Berkeley’s approach centres on
using its development expertise
to maximise the returns from our
large-scale assets, creating the right
development solution for each site.
Financial strength underpins this
approach and is a fundamental risk
management principle, evident in:
— the scale of the land holdings and
focus on long-term brownfield
regeneration developments
which have the scope for value
creation through the market
cycle;
— a strong forward planning
position which provides visibility
on delivery and mitigates
regulatory risk in the near-term;
and
— the cash due on forward
sales which underpins near-
term delivery and cash flows,
alongside a strong balance
sheet with net cash and liquidity
provided through debt capacity.
The Group’s net cash increased to
£532 million at 30 April 2024 which,
coupled with the debt capacity of
£1,200 million, ensures Berkeley has
available liquidity of £1,732 million.
The debt capacity comprises £400
million of listed unsecured Green
Bonds which mature in August
2031, supported by Fitch Ratings
Ltd’s senior unsecured investment
grade rating of BBB- (Stable
Outlook), and bank facilities of
£800 million. The bank facilities are
in place until February 2029.
Cash due on forward sales are
resilient in the prevailing market
conditions at £1,701 million, while
the land holdings comprise an
estimated £6.9 billion of future
gross margin across 54,000
future homes.
In accordance with code provision 31 of the 2018
revision of the UK Corporate Governance Code, the
Directors have assessed the viability of the Group.
Management of financial risks
Berkeley adopts a prudent approach to managing these
financial risks.
Treasury policy and central overview
The Board approves treasury policy and senior management
control day-to-day operations. Relationships with banks and
cash management are co-ordinated centrally as a Group function.
The treasury policy is intended to maintain an appropriate capital
structure to manage the financial risks identified and provide the
right platform for the business to manage its operating risks.
Forward sales
Berkeley’s approach to forward selling new homes to customers
provides good visibility over future cash flows, as expressed in cash
due on forward sales which stands at £1.7 billion at 30 April 2024.
It also helps mitigate market credit risk by virtue of customers’
deposits held from the point of unconditional exchange of contracts
with customers.
Low gearing
The Group is currently financing its operations through shareholder
equity, supported by £532 million of net cash on the Balance Sheet
and debt facilities. This in turn has mitigated its current exposure
to interest rate risk.
Land holdings
By investing in land at the right point in the cycle, holding a clear
development pipeline in our land holdings and continually optimising
our existing holdings, we are not under pressure to buy new land
when it would be wrong for the long-term returns for the business.
Headroom provided by bank facilities
The Group has £800 million of committed credit facilities maturing
in February 2029. This comprises a green term loan of £260 million
and the revolving credit facility of £540 million. In addition, the Group
has listed debt in the form of Green Bonds to the value of £400
million maturing in August 2031.
Berkeley has a strong working partnership with the six banks that
provide the facilities and this is key to Berkeley’s approach to
mitigating liquidity risk.
Detailed appraisal of spending commitments
A culture which prioritises an understanding of the impact of all
decisions on the Group’s spending commitments and hence its
Balance Sheet, alongside weekly and monthly reviews of cash
flow forecasts at operating company, divisional and Group levels,
recognises that cash flow management is central to the continued
success of Berkeley.
Berkeley’s approach to risk
management and its risk appetite
are set out on pages 90 to 103 of
the Strategic Review. Most risks
are operational in nature, with
risk management appropriately
embedded in the business
processes and internal controls. Site
cash flow forecasts, which are used
to prepare the Group’s consolidated
cash flow forecast, take account
of operational circumstances and
risks. The Group’s cash flow forecast
includes appropriate allowances for
discretionary investment and the
quantum and timing of this is in turn
subject to the delivery of the site
cash flows and broader strategy for
the Group.
The viability assessment envisages
a severe but plausible deterioration
in economic outlook which impacts
the site level cash flows, principally
through lower sales volumes and
pricing. In response to such a
scenario, Berkeley’s focus would
shift further to cash generating
activities, comprising a myriad of
mitigating combinations of actions,
but the key principles modelled
include:
— Production effort re-focused
to buildings with forward sales
enabling these to be collected.
— Cautious approach to new
inventory investment as new
buildings or sites are placed
on hold or slowed, whilst all
discretionary investment is
suspended.
— Sales transaction levels and
pricing reduce considerably as
economic conditions decline.
— Shareholder returns beyond
those planned to 30 September
2024 are suspended.
The Directors have made this
viability assessment over a three
year period from 1 May 2024
to 30 April 2027 principally to
align with the period covered
by Berkeley’s forward sales as
this is the key area of focus
for the business under the
viability assessment.
Based on the assessment, the
Directors confirm that they have
a reasonable expectation that the
Group will be able to continue in
operation and meet its liabilities
as they fall due over the three year
period commencing 1 May 2024.
Read more on our going concern
on page 164
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
92 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 93
Risks
Risk description and impact
Approach to mitigating risk
Link to
strategy:
Residual
risk rating:
Likelihood
change:
Impact
change
during
year:
Commentary and developments if any during the year
Economic
outlook
As a property developer, Berkeley’s
business is sensitive to wider economic
factors such as changes in interest rates,
employment levels and general consumer
confidence.
Some customers are also sensitive to
changes in the sterling exchange rate in
terms of their buying decisions or ability to
meet their obligations under contracts.
Changes to economic conditions in the
UK, Europe and worldwide may lead to a
reduction in demand for housing which
could impact on the Group’s ability to
deliver its corporate strategy.
Recognition that Berkeley operates in a cyclical market
is central to our strategy and maintaining a strong
financial position is fundamental to our business model
and protects us against adverse changes in economic
conditions.
Land investment in all market conditions is carefully
targeted and underpinned by demand fundamentals and
a solid viability case.
Levels of committed expenditure are carefully monitored
against forward sales secured, cash levels and headroom
against our available bank facilities, with the objective of
keeping financial risk low to mitigate the operating risks
of delivery in uncertain markets.
Production programmes are continually assessed,
depending upon market conditions. The business is
committed to operating at an optimal size, with a strong
Balance Sheet, through autonomous businesses to
maintain the flexibility to react swiftly, when necessary, to
changes in market conditions.
High
The UK economy grew by 0.6% in Q1 2024, the fastest growth in two years, following two
successive quarters of decline at the end of 2023.
For the whole of 2023 the economy actually grew marginally when compared to 2022, but
this was the weakest annual growth figure since 2009 (excluding the Covid years) when
the UK and other major economies were significantly impacted by the global financial
crisis.
Whilst inflation continues to fall, the rate of decrease has been slower than expected and it
is now likely that interest rates will fall later in 2024 than originally forecast.
Read more on
pages 18 to 28
Political
outlook
Significant political events in the UK and
overseas, may impact Berkeley’s business
through, for example, supply chain
disruption or the reluctance of customers
to make purchase decisions due to political
uncertainty and, subsequently, policies and
regulation may be introduced that directly
impact our business model.
Whilst we cannot directly influence political events, the
risks are taken into account when setting our business
strategy and operating model. In addition, we actively
engage in the debate on policy decisions.
High
We continue to face macro-volatility from political instability at home and internationally,
as well as from an economy coming to terms with a more normal interest rate environment
and the financial and social consequences of the pandemic, global conflicts and Brexit.
The political uncertainty created by the upcoming General Election continues to dampen
market sentiment and both consumer and business confidence.
As the only large UK homebuilder delivering large-scale regeneration schemes, Berkeley
welcomes the Government’s recent measures committing to promoting brownfield land
and urban development, and we continue to work closely with Government to address the
specific barriers to brownfield development.
Read more on
pages 18 to 25
Regulation
Adverse changes to Government
policy on areas such as taxation, design
requirements and the environment could
restrict the ability of the Group to deliver
its strategy.
Failure to comply with laws and
regulations could expose the Group to
penalties and reputational damage.
Berkeley is primarily focused geographically on London,
Birmingham and the South East of England, which
limits our risk when understanding and determining the
impact of new regulation across multiple locations and
jurisdictions.
The effects of changes to Government policies at all levels
are closely monitored by operating businesses and the
Board, and representations made to policy-setters where
appropriate.
Berkeley’s experienced teams are well placed to interpret
and implement new regulations at the appropriate time
through direct lines of communication across the Group,
with support from internal and external legal advisors.
High
Housing and fire safety remain high on the agendas of the Government and the main
political parties, with the sector continuing to face increasing regulation and scrutiny,
together with proposed greater oversight from the Government through a single New
Homes Ombudsman.
We continue to cooperate fully with the Competition and Markets Authority in their
investigation into the sharing of information between housebuilders and whether this is
adversely affecting the competition of the supply of new build homes.
Regulatory uncertainty continues as the Building Safety Regulator is established, as well as
from carbon reduction.
The long awaited detailed guidance on the technical requirements for second staircases
was published in March 2024 and supports Berkeley’s approach. We will continue to work
closely with all statutory consultees throughout the design process.
Read more on
pages 18 to 25
Key to strategy
Customers
Quality
Communities
Climate Action
Nature
Employee
Experience
Modernised
Production
Future Skills
Supply Chain
Shared Value
Key to risk
Increase risk
No change
Decrease risk
01–103 | Strategic Report
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Risks continued
Risk description and impact
Approach to mitigating risk
Link to
strategy:
Residual
risk rating:
Likelihood
change:
Impact
change
during
year:
Commentary and developments if any during the year
Land
availability
An inability to source suitable land
to maintain the Group’s land holdings
at appropriate margins in a highly
competitive market could impact
on the Group’s ability to deliver its
corporate strategy.
Understanding the markets in which we operate is central
to Berkeley’s strategy and, consequently, land acquisition
is primarily focused on Berkeley’s core markets of
London, Birmingham and the South East of England,
markets in which it believes the demand fundamentals
are strong.
Berkeley has experienced land teams with strong market
knowledge in their areas of focus, which gives us the
confidence to buy land without an implementable
planning consent and, with an understanding of local
stakeholders’ needs, positions Berkeley with the best
chance of securing a viable planning consent.
Berkeley’s land holdings mean that it has the land in place
for its business plan requirements and can therefore
always acquire land at the right time in the cycle.
Low
The Group continues to focus on protecting and enhancing the value of the land holdings
through a combination of acquiring new sites, enhancing the value of existing sites and
bringing sites through the strategic pipeline of long-term options.
Investment decisions are affected by the uncertainty in the political and economic outlook,
as well as complexities in the planning system, although new opportunities may arise as
demand from other use classes evolves.
In the current environment Berkeley is not investing in new opportunities.
The two sites added to our land holdings in 2023/24 were transferred from existing
pipeline and strategic land.
Read more on
pages 18 to 25
Planning
process
Delays or refusals in obtaining
commercially viable planning permissions
could result in the Group being unable to
develop its land holdings.
The current complex and evolving nature
of planning policies amplifies the risk.
This could have a direct impact on the
Group’s ability to deliver its product and
on its profitability.
The Group’s strategic geographical focus and expertise
place it in the best position to conceive and deliver the
right consents for the land acquired.
Full detailed planning and risk assessments are performed
and monitored for each site without planning permission,
both before and after purchase. The planning status of
all sites is also reviewed at both monthly divisional Board
meetings and Main Board meetings.
The Group works closely with local communities in respect
of planning proposals and maintains strong relationships
with local authorities and planning officers.
Berkeley has planning consents in place for its immediate
business plan needs.
High
The planning process remains highly complex and time consuming with ongoing demands
from a combination of affordable housing, the Community Infrastructure Levy, Section 106
obligations, Gateway 2 tall building levy and review mechanisms. These all impact the cost
of development as well as the time taken to move through the planning process.
Whilst Berkeley has had a number of positive planning outcomes in the year, the Group
continues to experience significant delays in advancing its development proposals through
the planning system.
We are heartened by the strong political consensus behind increasing the delivery of new
homes across the country and the recognition that regenerating brownfield land is the
most sustainable and popular way to deliver this vital goal.
Read more on
pages 18 to 25
Retaining
people
An inability to attract, develop, motivate
and retain talented employees could have
an impact on the Group’s ability to deliver
its strategic priorities.
Failure to consider the retention and
succession of key management could
result in a loss of knowledge and
competitive advantage.
Two commitments within Our Vision 2030 are designed
to help recruit and retain a high calibre work force.
The first is ‘Employee Experience’ which places a specific
focus on areas including employee experience and
diversity and inclusion, and the second focuses on ‘Future
Skills’ looking at how we can create tangible long-term
change within the industry.
Succession planning is regularly reviewed at both
divisional and Main Board level. Close relationships and
dialogue are maintained with key personnel.
Remuneration packages are constantly benchmarked
against the industry to ensure they remain competitive.
Medium
The motivation, retention and progression of our people remains fundamental to the
delivery of our strategy.
The Group continues to have a stable senior management team and despite the normal
pressure of people retention, overall retention rates remained relatively stable during
the course of the year as a result of the ongoing focus on talent management, career
progression opportunities, training, benefits, health and wellbeing initiatives and flexibility
on working hours.
Read more on
pages 50 to 53 and 61
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
96 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 97
Risks continued
Risk description and impact
Approach to mitigating risk
Link to
strategy:
Residual
risk rating:
Likelihood
change:
Impact
change
during
year:
Commentary and developments if any during the year
Securing
sales
An inability to match supply to demand
in terms of product, location and price
could result in missed sales targets and/
or high levels of completed stock which in
turn could impact on the Group’s ability to
deliver its corporate strategy.
The Group has experienced sales teams both in the UK
and within our overseas sales offices, supplemented by
market-leading agents.
Detailed market demand assessments of each site are
undertaken before acquisition and regularly during
delivery of each scheme to ensure that supply is matched
to demand in each location.
Design, product type and product quality are all assessed
on a site-by-site basis to ensure that they meet the target
market and customer aspirations in that location.
The Group’s ability to forward sell reduces the risk of the
development cycle where possible, thereby justifying
and underpinning the financial investment in each of
the Group’s sites. Completed stock levels are reviewed
regularly.
Medium
Sales rates have been consistent throughout 2023/24, remaining around a third lower than
the comparative year. Enquiry levels are good, with customers looking for the prevailing
political and economic uncertainty to recede and interest rates to begin to fall.
Cash due on private forward sales were £1.7 billion at 30 April 2024, which has moderated
through a combination of strong delivery and the prevailing sales rates. 80% of required
sales for 2024/25 are already secured.
Pricing has been stable across our sites during the period and above business plan levels.
Customers remain at the heart of all of our decisions, and Berkeley prioritises customer
service, communities, nature and overall quality of place through its Our Vision 2030
targets. We are committed to understanding their needs and consistently meeting or
exceeding their expectations.
Read more on
pages 23 to 24
Liquidity
Reduced availability of the external
financing required by the Group to pursue
its activities and meet its liabilities.
Failure to manage working capital may
constrain the growth of the business and
ability to execute the business plan.
The Board approves treasury policy and senior
management controls day-to-day operations.
Relationships with banks and cash management are
co‑ordinated centrally as a Group function.
The treasury policy is intended to maintain an appropriate
capital structure to manage the Group’s financial risks
and provide the right platform for the business to
manage its operating risks.
Cash flow management is central to the continued
success of Berkeley. There is a culture which prioritises
an understanding of the impact of all decisions on the
Group’s spending commitments and hence its Balance
Sheet, alongside weekly and monthly reviews of cash
flow forecasts at operating company, divisional and
Group levels.
Low
The Group had net cash of £532 million at 30 April 2024, giving the Group
c.£1.7 billion of liquidity when combined with bank facilities.
In February 2024, we exercised the second of two one year extensions to the
£800 million bank facility at unchanged pricing.
In addition, in February 2024 Berkeley entered into a borrowing facility with Homes
England totalling £125.6 million, whereby it may apply amounts borrowed towards
financing or re-financing certain infrastructure type costs incurred on three of its
developments.
Berkeley has a strong working partnership with the six banks that provide the facilities
which is key to Berkeley’s approach to mitigating liquidity risk.
Read more on
page 31 and 214
Mortgages
An inability of customers to secure
sufficient mortgage finance now or in the
future could have a direct impact on the
Group’s transaction levels.
Berkeley has a broad product mix and customer base
which reduces the reliance on mortgage availability
across its portfolio.
Deposits are taken on all sales to mitigate the financial
impact on the Group in the event that sales do not
complete due to a lack of mortgage availability.
Medium
Whilst current fixed rate offers are substantially down on the highs seen in mid 2023, there
remains uncertainty over the timing of further reductions which is impacting customer
confidence and hence transaction levels.
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
98 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 99
Risks continued
Risk description and impact
Approach to mitigating risk
Link to
strategy:
Residual
risk rating:
Likelihood
change:
Impact
change
during
year:
Commentary and developments if any during the year
Climate
change
The effects of climate change could
impact Berkeley in different ways. Climate
scenario analysis has been undertaken
to evaluate climate-related risks and
opportunities.
Identified risks and opportunities relating
to the transition to a lower carbon
economy include: pricing of greenhouse
gas (GHG) emissions and emissions
offsets; evolving planning and design
requirements; skills shortages impacting
ability to install low carbon technology;
technology evolution; increasing raw
material costs; and demand supply
imbalance.
Risks relating to the physical impacts
of climate change include: heat stress,
drought stress, subsidence, windstorm
and flood.
Climate Action is a strategic priority within our business
strategy, Our Vision 2030, and we have set ambitious
science-based targets (SBTs) to mitigate our impact,
alongside continuing to incorporate adaptation measures
within our developments to make them more resilient to
the expected future impacts of climate change.
We have energy efficiency standards in place that cover
the activities of our sites, offices and sales suites and
encourage the identification and investment in measures
to take action under our scopes 1 and 2 GHG emissions
reduction target. In addition, our scope 3 SBT commits us
to working with our supply chain to reduce the embodied
carbon within the materials and services we procure, and
building more efficient homes.
To build resilience into our homes and developments, we
consider climate change risks and incorporate measures to
reduce these through minimum Sustainability Standards.
These cover areas such as energy efficiency, water
efficiency, rainwater harvesting, sustainable drainage
systems (SuDS) and leaving space for nature.
Read more about our mitigation actions for key
risks identified through climate scenario analysis
pages 78 to 83
Medium
Our project teams continue to focus on energy and carbon efficiency. This year we
completed energy audits across our divisional offices, sales suites and construction sites
in line with the requirements of the Energy Savings Opportunity Scheme (ESOS) with the
recommendations being incorporated into our energy reduction and net zero transition
plans.
Embodied carbon assessments continue to be undertaken for all developments with
completions from 2025/26 and further guidance has been provided to our teams based
on lessons learnt to date. Recognising that supply chain engagement is key to reducing
scope 3 emissions, we have finalised a supply chain strategy to engage suppliers and
manufacturers in our decarbonisation journey, beginning with aluminium as a key material
group.
In March 2024, we submitted a response to the consultation on the Future Homes and
Buildings Standards which requires all new homes to be ‘net zero ready’ and to use
heat pump technology. A webinar was also held for the business to brief teams on the
Standards.
Our 2023 response to the CDP Climate Change questionnaire achieved a Leadership rating
of ‘A‘.
Read more on
pages 45 to 46 and 68 to 78
Sustainability
Berkeley is aware of the environmental and
social impact of the homes and places that
it builds, both throughout the development
process and during occupation and use by
customers and the wider community.
Failure to address sustainability issues
could affect the Group’s ability to acquire
land, gain planning permission, manage
sites effectively and respond to increasing
customer demands for sustainable homes
and communities, with access to green
spaces and nature.
The strategic direction for sustainability is set at a Group
level within a dedicated Sustainability Strategy. Three
areas of the Sustainability Strategy have been identified
as being of material importance and integrated within our
business strategy, Our Vision 2030; Communities, Climate
Action and Nature. We have specific commitments to
enhance environmental and social value in the operation
of our business and the delivery of our homes and places.
Dedicated sustainability teams are in place at the Group’s
Head Office and within each division of the business,
identifying risks, providing advice, driving improvement
and monitoring performance.
Sustainability Standards set out the minimum Berkeley
requirements for new developments and the operation
of our construction sites, divisional offices and sales
suites. These are supported by more detailed procedures
within our Sustainability Management System, including
a requirement for an Environmental Risk Register for
each site and the completion of at least quarterly site
sustainability assessments by our internal sustainability
professionals.
Our ambition on every development is to strengthen the
local community, improve people’s quality of life and have
a positive and lasting social impact that is felt beyond our
site boundary.
Medium
The Group continues to focus on commitments and initiatives that enable the long-term
success of our business and developments, and that differentiate Berkeley. We continue to
embed our Sustainability Strategy internally, supporting our strategic plan for the business,
Our Vision 2030.
In February 2024, biodiversity net gain (BNG) became mandatory for development in
England. Having been at the forefront of delivering BNG for the last seven years, we were
delighted that our work was highlighted as being leading in the launch of the policy.
Building on BNG, we have continued to work on our approach to environmental net gain.
Following the internal launch of an updated waste strategy in autumn 2023, the business
has been undertaking designing out waste workshops at the early design stages and
increasing engagement with contractors to ensure disposal routes meet our requirements.
We are proud to have won the Conservation Award at the 2023 National Sustainability
Awards in recognition of our innovative approach to water neutrality at Royal Exchange,
Kingston. Working with Thames Water we explored how to deliver water neutrality on
a large-scale development within a water stressed area, which is a key environmental
challenge.
With the Levelling-up and Regeneration Act becoming law from October 2023, we have
been evolving our approach to communities to bring together social value indicators,
community needs analysis and best practice engagement, with a focus on the specific
needs of the unique communities in which we work.
We acknowledge that each community is different, evolving in different ways and at
different paces over time. In recognition of this we have developed a framework to
help structure our approach. This is in the form of a Community Plan, encouraging
links between neighbours and engaging residents in the long-term stewardship of their
neighbourhood.
Read more on
pages 34, 40 to 49 and 64
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
100 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 101
Risks continued
Risk description and impact
Approach to mitigating risk
Link to
strategy:
Residual
risk rating:
Likelihood
change:
Impact
change
during
year:
Commentary and developments if any during the year
Health
and safety
Berkeley’s operations have a direct impact
on the health and safety of its people,
contractors and members of the public.
A lack of adequate procedures and
systems to reduce the dangers inherent in
the construction process increases the risk
of accidents or site-related catastrophes,
including fire and flood, which could result
in serious injury or loss of life leading to
reputational damage, financial penalties
and disruption to operations.
Berkeley considers this to be an area of critical
importance. Berkeley’s health and safety strategy is set by
the Board. Dedicated health and safety teams are in place
in each division and at Head Office.
Procedures, training and reporting are all regularly
reviewed to ensure that high standards are maintained
and comprehensive accident investigation procedures are
in place. Insurance is held to cover the risks inherent in
large-scale construction projects.
The Group continues to implement initiatives to improve
health and safety standards on site.
Medium
High levels of production continue across the Group, with site based headcount stable at
around 10,000.
Health and safety remains an operational priority for Berkeley and our AIIR at the year end
was 52, well below our target of 250 and remains one of the best in the industry.
Read more on
pages 51 to 52
Product
quality and
customers
Berkeley has a reputation for high
standards of quality in its product.
If the Group fails to deliver against these
standards and its wider development
obligations, it could be exposed to
reputational damage, as well as reduced
sales and increased cost.
Detailed reviews are undertaken of the product on
each scheme both during the acquisition of the site and
throughout the build process to ensure that product
quality is maintained.
The Group has detailed quality assurance procedures in
place surrounding both design and build to ensure the
adequacy of build at each key stage of construction.
Customer satisfaction surveys are undertaken on the
handover of our homes, and feedback incorporated into
the specification and design of subsequent schemes.
Medium
The Group’s continued focus on improving the quality of design and product, with
attention to every detail in our homes, remains at the heart of our delivery.
We are constantly looking at ways to meet the demands of changing lifestyles, as well as
the rapidly changing levels of expectations from our customers.
Read more on
pages 40 to 41 and 59
Build
cost and
programme
Build costs are affected by the availability
of skilled labour and the price and
availability of materials, suppliers and
contractors.
Declines in the availability of a skilled
workforce, and changes to these prices
could impact on our build programmes
and the profitability of our schemes.
A procurement and programming strategy for each
development is agreed by the divisional Board before site
acquisition, whilst a further assessment of procurement
and programming is undertaken and agreed by the
divisional Board prior to the commencement of
construction.
Build cost reconciliations and build programme dates are
presented and reviewed in detail at divisional cost review
meetings each month.
Our Vision 2030 strategy includes ongoing commitments
to training and support across both our employees and
our indirect workforce.
Medium
Against a backdrop of reducing new homes supply and falling construction output, build
cost inflation is at negligible levels across most trades.
We expect these market-led dynamics to continue placing downward pressure on build
costs, but this is balanced by the costs associated with ongoing regulatory change.
Given the elevated macro uncertainty, Berkeley continues to work with and support our
established supply chain partners to ensure sustainability of the supply chain and delivery
on our development sites.
Read more on
pages 55 and 62
Cyber and
data risk
The Group acknowledges that it places
significant reliance upon the availability,
accuracy and confidentiality of all of
its information systems and the data
contained therein.
The Group could suffer significant financial
and reputational damage because of the
corruption, loss or theft of data, whether
inadvertent or via a deliberate, targeted
cyber-attack.
Berkeley’s systems and control procedures are designed
to ensure that confidentiality, availability and integrity are
not compromised.
Our Information Security Programme focuses primarily
on the detection and prevention of security incidents and
potential data breaches.
An IT Security Committee meets monthly to address all
cyber security matters.
The Group operates multiple physical data centres
supported by cloud-based services thereby reducing
centralised risk exposure. An IT disaster recovery plan is
regularly assessed.
The Group has cyber insurance in place to reduce any
potential financial impact.
High
The threat from cyber-attacks remains high and the methods of attack continue to evolve
such as through the use of QR codes. Attacks are becoming more sophisticated, requiring
additional technical controls changes to tools and awareness training.
The exploitation of trusted supply chain accounts poses an increasing risk, as adversaries
increasingly target our organisation through these channels.
Email based attacks remain a significant risk. Industry leading email security platforms are
in place and these are constantly reviewed with new tools being adopted in the period.
The Cyber Security team regularly sends awareness reminders when threats affecting the
Group are detected.
The Group also utilises third party services to review new and existing systems at key times
of change.
Read more on
page 115
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
102 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 103
CORPORATE GOVERNANCE
Chairman’s introduction
Michael Dobson | Chairman
I am pleased to introduce the
Corporate Governance Report for
the 2023/24 financial year. The
Board has continued to embrace
high standards of corporate
governance in accordance with the
Code. This report outlines Berkeley’s
governance arrangements
throughout the year and describes
how the Board and its Committees
have operated and discharged
their responsibilities in considering
and applying the Principles and
Provisions of the Code.
Berkeley is a business with a
distinctively long-term operating
model and value-added approach
with a commitment to generating
sustainable returns for its
shareholders across the business
cycle. Berkeley has a strong
purpose, to build quality homes,
strengthen communities and
improve people’s lives, a clear set
of values and a unique culture.
A strong governance framework
is of fundamental importance in
supporting Berkeley’s long-term
success and ensuring an effective
Board. Over the past year, the
principle focus of the Board has
continued to be on the Group’s
strategy, risks and opportunities,
talent and senior management
succession.
Since the September 2023 AGM,
at which three Non-Executive
Directors retired and three
Executive Directors stepped down
from the Board, Berkeley’s Board
Board attendance
Member
Meeting
attendance
% of
meetings
attended
Michael Dobson
Non-Executive Chairman
100%
Andy Kemp
Non-Executive Director
100%
Rob Perrins
Executive Director
100%
Richard Stearn
Executive Director
100%
Rachel Downey
Senior Independent Director
100%
The Ven. Elizabeth Adekunle
Non-Executive Director
100%
William Jackson
Non-Executive Director
100%
Sarah Sands
Non-Executive Director
100%
Natasha Adams
Non-Executive Director
100%
At a glance
Read more about the Board
site visit page 111
Board highlights from 2023/24
44.44%
Board female representation
3.29 yrs
Average Non-Executive
Director tenure
100%
Board meeting attendance
has comprised nine Directors:
an independent Non-Executive
Chairman, two Executive Directors
and six Non-Executive Directors.
It has been a significant year in
the development of Berkeley
and the Board. The Board has
undertaken a programme of deep
dives throughout the year with a
focus on better understanding all of
Berkeley’s stakeholders: customers,
shareholders and people. ESG was
also an important topic for the
Board during the year.
The Board has undergone a period
of significant transition over the
last three years and we have a
diverse Board with a wide range of
experience and knowledge.
During the year we undertook an
external board effectiveness review
led by Ffion Hague of Independent
Board Evaluation. The results of the
review and key areas of focus for
the 2024/2025 financial year are set
out on page 123.
The Board has continued to focus
on longer term succession planning,
and diversity and inclusion with
reference to the Board Diversity
Policy. As at 30 April 2024, 44.44%
of the Board are women and the
Board is compliant with all diversity
requirements. Further details are set
out on page 124 of this report.
I would like to thank all my
colleagues on the Board for their
contribution during the year. I look
forward to continuing to work with
the Board and everyone at Berkeley
to deliver long term value for
shareholders.
Michael Dobson
Chairman
19 June 2024
2018 UK Corporate Governance Code
(The ‘Code’)
The Code is the corporate governance code to which we referred
during the financial year to 30 April 2024, and can be found at
www.frc.org.uk.
Throughout the year, and in accordance with Listing Rule 9.8.6R, the
Board considers that it has applied the Principles and complied with
the Provisions of the Code.
The Board has reviewed the Annual Report and Accounts and
considers that, taken as a whole, it is fair, balanced and understandable
and provides the information necessary for shareholders to assess the
Company’s position, performance, business model and strategy.
Further details on how we comply with the Code are outlined in this
Governance Report.
104 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 105
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
Board of Directors
Michael Dobson
Chairman of the
Board and of
the Nomination
Committee
N R
Skills, experience and contribution
Michael was appointed to the Board on 8 June 2022 as an independent Non-Executive
Director and member of the Nomination Committee and, on 6 September 2022,
became Chairman of the Board and the Nomination Committee and a member of the
Remuneration Committee.
Michael brings extensive leadership, corporate and financial experience to the Board.
He stepped down as Chairman of Schroders plc in April 2022 after six years, following
an executive career in the City spanning over 40 years. Michael was Chief Executive of
Schroders plc from 2001 to 2016 and previously held a number of leadership positions
at Deutsche Bank AG, including Head of Global Asset Management, Head of Global
Investment Banking and a Member of the Board of Managing Directors. Prior to this he
was Chief Executive of Morgan Grenfell Group PLC and Deutsche Morgan Grenfell.
Other appointments
Chairman, Sienna Investment Managers
Appointed
8 June 2022 as Non-
Executive Director
and 6 September
2022 as Chairman
Tenure
1 year
Rachel Downey ACA
Senior Independent
Director
N A
Skills, experience and contribution
Rachel was appointed as a Non-Executive Director on 8 December 2017 and Senior
Independent Director on 8 September 2023. She is a member of the Nomination and
Audit Committees.
Rachel’s experience in real estate development and operation brings extensive
industry expertise to the Board. She is Project Director of Manchester Life, a joint
venture between Acre Real Estate Investment & Development LLC and Manchester
City Council, established in 2014 to make a significant contribution towards achieving
Manchester’s regeneration and residential growth ambitions. Manchester Life is
passionate about creating thriving communities and has delivered 1,500 homes, with
500 more planned for its third phase. Rachel is Managing Director of Manchester Life
Management Ltd, which leases and manages a portfolio of over 1,000 apartments
built by Manchester Life.
Rachel, a Chartered Accountant, is also currently a Non-Executive Director of
Lancashire County Cricket Club and Chair of the Club’s Development Committee
Other appointments
Project Director, Manchester Life
Managing Director, Manchester Life Management Ltd
Non-Executive Director of Lancashire County Cricket Club
Appointed
8 December 2017
and on 8 September
2023 as Senior
Independent
Director
Tenure
6 years
Rob Perrins BSc
(Hons) FCA
Chief Executive
Skills, experience and contribution
Rob joined Berkeley in 1994. He has been a Main Board member since 2001 and Chief
Executive since 2009, having previously been CFO from 2001. Under his management,
Berkeley has increasingly focused on transforming large-scale brownfield sites, which
are beyond the scope of conventional homebuilders.
Rob has worked extensively in property development throughout his career, working
on projects ranging from single houses to mixed use neighbourhoods with more than
10,000 homes. Rob champions Berkeley’s operating culture and values, which are based
on customer focus, individual design, exceptional placemaking and a commitment to
delivery for all stakeholders. He oversees a highly disciplined but decentralised operating
structure that fosters accountability and innovation, chairing the boards of Berkeley’s 21
autonomous operating companies. Rob additionally oversees Our Vision 2030 and is the
named Board-level sponsor for the Climate Action strategic priority area. He has a firm
foundation of knowledge and personal interest in the natural world and climate science
having completed a degree in Geology, together with an understanding of the business
need to take action.
Rob has been a Trustee and Chair of Trustees of the Berkeley Foundation since its launch
in 2011, stepping down as Chair in April 2024 and remaining a Trustee. This independent
charity works in close partnership with the Berkeley Group to maximise its positive
social impacts.
Other appointments
Trustee, Berkeley Foundation (since 2011)
Independent Non-Executive, Public Interest Body, PwC (since October 2023)
Appointed
1 May 2001
Tenure
23 years on the Main
Board (30 years with
the Company)
Richard Stearn BSc
(Hons) FCA
Chief Financial
Officer
Skills, experience and contribution
Richard re-joined Berkeley on 13 April 2015 as Chief Financial Officer, having previously
worked for the Company from 2002 to 2011 as Group Financial Controller. In the
intervening period, Richard spent three years at Quintain Estates and Development plc,
serving as the company’s Finance Director for most of that time.
Richard is responsible for the Group’s finance, investor relations, treasury, tax and
insurance functions. He also leads on strategic risk management and has oversight of the
Group’s IT function.
Richard has 21 years of direct experience in the property and development industry.
Prior to joining Berkeley, he trained and practised for 12 years as a Chartered Accountant
with PwC, auditing and advising a wide range of clients.
Other appointments
None
Appointed
13 April 2015
Tenure
9 years on the Main
Board (18 years with
the Company)
Andy Kemp
BA (Econ) FCA
Independent Non-
Executive Director
and Chair of the
Audit Committee
A R N
Skills, experience and contribution
Appointed as a Non-Executive Director on 1 July 2021, following his retirement from
PricewaterhouseCoopers LLP after a 39 year career with the firm. Andy is a Chartered
Accountant and was a senior partner at PwC in London, advising the boards of some of
the UK’s largest multinational companies.
Andy brings extensive knowledge of accounting, risk and governance matters having
been an audit partner for 27 years and through his chairmanship of the PwC Non-
executive Director Programme. Andy was previously a member of PwC’s Audit and Risk
Assurance Executive Board.
Andy was appointed Chair of the Audit Committee on 8 September 2023 and is a
member of the Nomination Committee and the Remuneration Committee. Andy was
previously Chair of the Remuneration Committee.
Other appointments
Chair, The Audit Committee Chairs’ Independent Forum
Non-Executive Director and Chair of the Audit and Risk Committee, Irwin Mitchell
Holdings Limited
Governor, Birkbeck University of London
Appointed
1 July 2021
Tenure
2 years
Natasha Adams
Independent
Non-Executive
Director and Chair
of the Remuneration
Committee
R N
Skills, experience and contribution
Natasha is Chief Executive Officer of Tesco Ireland since 7 March 2022 and is a member
of the Tesco PLC Executive Committee. Immediately prior to her current role, Natasha
was Group Chief People Officer of Tesco PLC. Natasha has experience as a Trustee of
the Tesco Pension Scheme and is a Trustee of the Institute of Grocery & Distribution.
Natasha brings to the Board valuable insight on commercial and social governance
matters.
Natasha was appointed Chair of the Remuneration Committee and a member of the
Nomination Committee on 8 September 2023.
Other appointments
Chief Executive Officer, Tesco Ireland
Executive Committee member, Tesco PLC
Trustee, Institute of Grocery & Distribution
Appointed
1 February 2022
Tenure
2 years
Key to Committees
A Audit Committee
N Nomination Committee
R Remuneration Committee
Committee Chairman
106 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 107
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
Board of Directors continued
The Ven.
Elizabeth Adekunle
Independent Non-
Executive Director
Skills, experience and contribution
Liz is currently a Non-Executive Director of The Royal Marsden NHS Foundation Trust
and a Chaplain to His Majesty the King. She was previously Chaplain to Her Majesty
Queen Elizabeth II (since April 2017) and Archdeacon of Hackney in the Diocese of
London. Liz was awarded the Freedom of the City of London in April 2019.
Liz is a Westminster Abbey Institute Fellow, an Associate at Ridley Hall Theological
College and an Honorary Fellow of St Augustine’s College of Theology. Liz is on the
Board of STRIDE, Metropolitan Police Board, a member of the National Police Chiefs’
Ethics Committee and also a Board Member of Hive Education Trust.
Liz was previously Chair of the Monuments and Plaques Committee at St Paul’s
Cathedral. Liz has considerable experience of social, political and ethical matters
and brings a valuable perspective on the potential of urban regeneration and good
placemaking to improve the lives of those living in the communities within which
Berkeley operates.
Other appointments
Non-Executive Director, The Royal Marsden NHS Foundation Trust
Chaplain to His Majesty the King
Board member, STRIDE, Metropolitan Police Board Member, National Police Chiefs’
Ethics Committee Board Member, Hive Education Trust
Appointed
5 January 2021
Tenure
3 years
William Jackson
Independent Non-
Executive Director
R N
Skills, experience and contribution
William is the Founder of Bridgepoint Group plc, one of Europe’s leading alternative
asset management groups, which he has led since 2001. William has served on a wide
range of UK and international boards during his career and stood down as Senior
Independent Director of British Land plc in 2020 and as a Non-Executive Director in
March 2021.
William is also Senior Independent Director and Non-Executive Director of The Royal
Marsden NHS Foundation Trust. William brings extensive property, commercial, financial
and PLC experience to the Board.
William is a member of the Remuneration Committee and is a member of the
Nomination Committee.
Other appointments
Founder, Bridgepoint Group plc
Non-Executive Director, The Royal Marsden NHS Foundation Trust
Appointed
5 January 2021
Tenure
3 years
Sarah Sands
Independent Non-
Executive Director
A
Skills, experience and contribution
Sarah is a journalist by profession and was Editor of the BBC Radio 4 Today programme
from 2017 to 2020. Prior to this, Sarah was Editor of The Evening Standard and The
Sunday Telegraph and has held Editor in Chief and Consultant Editor roles at Reader’s
Digest and the Daily Mail.
Sarah is a Non-Executive Director of Channel 4, a Partner at Hawthorn Advisors and a
Member of the Board of Trustees of The Science Museum Group. Sarah is a founder of
the Braemar Science Summit and was Chair of the Gender Equality Advisory Council
for G7 for 2021 and has continued to sit on the Advisory Council in 2022 under the
Germany Presidency, in 2023 under the Japan Presidency and in 2024 under the
Italian Presidency. Sarah sits on the board of Walpole and is also a trustee of the
Quintessentially Foundation. In 2023, Sarah was acting Chair of the British Council.
Sarah brings to the Board a broad insight on economic, political and social matters and
a valuable perspective on issues such as the environment, sustainability, community and
inclusivity.
Sarah is a member of the Audit Committee.
Other appointments
Non-Executive Director, Channel Four Television Corporation
Partner, Hawthorn Advisors
Trustee of the Board, The Science Museum Group
Trustee, Walpole
Trustee, Quintessentially Foundation
Appointed
30 April 2021
Tenure
3 years
Broadway East, Bethnal Green
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South Quay
Plaza site
visit
In February 2024, the Board and
Executive Committee visited
South Quay Plaza, where an
ageing office complex close to
Canary Wharf is being replaced
with three high rise residential
buildings designed by Foster &
Partners, including the 68-storey
Valiant Tower.
More than 1,200 private and
affordable homes are being
delivered on just a 4-acre site
footprint, along with 12,000
sq ft of commercial space for
waterside bars, restaurants and a
local creche. Over half the site will
be public open space, including
a riverside walk and biodiverse
public gardens.
The Board visit included a tour
and technical briefing with the
production and sales teams,
including an inspection of the
show apartment, residents lounge
and roof gardens. A Q&A session
explored the design vision,
delivery challenges, sales strategy,
build quality and product
specification.
Board leadership and company purpose
A focused and effective Board
The Board has collective
responsibility for promoting the
long-term success of the Company
in a safe and sustainable manner
in order to create value for
stakeholders. The Board provides
leadership and sets the Company’s
purpose, values and long-term
strategic objectives.
During the year, the Board has
focused on the Company’s purpose,
vision and values and has continued
to oversee the embedding of
the Group’s ambitious, ten-year
strategic agenda, Our Vision 2030
across the business. Details of
how Our Vision 2030 has been
implemented across the business
and updates on progress against
targets can be found on pages 34
to 56 of the Strategic Report and at
www.berkeleygroup.co.uk/ourvision.
Further information on how
the Company engages with its
stakeholders, and the impact on
them, in implementing Our Vision
2030, is set out on pages 59 to 65
of the Strategic Report.
The Board recognises the role
it plays in promoting the long-
term sustainable success of the
Company, generating value for its
shareholders and contributing to
wider society.
As the UK’s leading placemaker,
Berkeley’s purpose is to build
quality homes, strengthen
communities and improve people’s
lives, transforming underutilised
places to return sustainable social,
economic and environmental value.
In implementing Our Vision 2030
to ensure the delivery of long-
term sustainable success for all
stakeholders, it is the Board’s role
to ensure that this strategy and the
Company’s purpose, values and
culture are fully aligned.
Culture and values are central to
the successful implementation of
Berkeley’s strategy. At Berkeley, the
culture starts with the tone set by
the Board and encompasses all of
the autonomous businesses and
teams across the Group.
Further details on how the Board
ensures that Berkeley’s purpose,
values and culture are embedded
across Berkeley are set out on
pages 112 to 113.
The work of the Board provides
direction, support and constructive
challenge to the wider Executive
team.
The duties of the Board are set out
in a formal schedule of matters
specifically reserved for decision
by the Board. More details on
the governance structure of the
Company and key responsibilities of
the Board can be found on pages
117 to 119 of this report.
Board and Committees’
Composition
With effect from the conclusion
of the 2023 AGM, Rachel Downey
became Senior Independent
Director; Andy Kemp became Chair
of the Audit Committee; Natasha
Adams became Chair of the
Remuneration Committee; William
Jackson joined the Remuneration
Committee; and Natasha Adams
and Andy Kemp joined the
Nomination Committee.
Following the 2023 AGM, the Board
has comprised nine Directors:
an Independent Non-Executive
Chairman, two Executive Directors
and six Non-Executive Directors
delivering full compliance with
all aspects of Board composition
under the Code and the Board
meeting the diversity targets
set out in Listing Rule (LR)
9.8.6R(9)(a). Further explanation
of the Board’s compliance with
LR9.8.6R(9)(a) is set out on pages
123 to 124 of this report.
Meetings
The full Board met formally six times
during the year ended 30 April 2024
and there were no absences.
During the year the Board has
revisited the matters reserved
for the Board, set fresh Board
objectives and enhanced the
existing focus of the Board
through the addition of further
topic-specific deep dives
considering staff, customers and
markets, shareholders and wider
stakeholders.
There were also multiple email
exchanges and calls, including in
respect of periodic trading updates,
interim and full-year results and
interim dividends.
In addition to formal meetings
of the Board, the Non-Executive
Directors met with the Chairman
twice during the year. The Chief
Executive and Chief Financial
Officer attended part of these
meetings in order to provide an
update on the business activities of
the Group, including in respect of
health and safety, finance, trading
and performance and fire safety.
Thereafter, the Non-Executive
Directors met without the Executive
Directors being present.
During the year, the Non-Executive
Directors met without the Chairman
present at a meeting chaired by
the Senior Independent Director to
review his performance.
Board and Committee papers and
agendas are sent out in the week
prior to each meeting, thus allowing
sufficient time for detailed review
and consideration of the documents
beforehand. In addition, the Board
is supplied with comprehensive
management information on a
regular basis.
Non-Executive Directors also met
with members of the Executive
Committee to gain first hand
insight into the delivery of key
priorities under the Company’s Our
Vision 2030 strategy. The review
focused in particular on Berkeley’s
approach to engagement with local
communities with a view to creating
places that strengthen communities
beyond the site boundary
through the production of unique
holistic plans for each individual
development.
South Quay Plaza, Docklands
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1 Customers at the heart
of everything
The Board challenges the business
to deliver the highest standards
of customer service, monitors
customers satisfaction levels and
interrogates underlying trends.
The Board monitors the outcomes
of customer engagement at each
stage of the customer journey, and
actively seeks to ensure that any
issues arising are resolved promptly
and effectively.
2 Creating a positive,
safe and inclusive
working environment
The Board has reviewed and shaped
our people framework, including
our EDI approach and health and
safety strategy.
In December 2023 Board meeting
included a deep dive into our
people and culture framework
and agreed a ten-point plan to
drive further improvements. The
Board monitors and provides
challenge against a range of
performance metrics in this area,
including staff turnover, staff survey
results, accident rate, workforce
demographics and our future skills
programme including patronship
and graduate schemes.
3 Passion for people
and communities
The Board reviews the overarching
vision for Berkeley’s long-term
regeneration sites to ensure they
deliver positive outcomes for the
people and communities around
them. The Executive Committee
reviews the planning and
placemaking strategy’s for each site
prior to work starting, as-well-as
scrutinising bespoke Community
Development Plan to ensure they
are based on strong community
engagement and set a shared vision
for an inclusive and welcoming
neighbourhood.
4 Enhancing quality
in every small detail
The Executive Committee reviews
and signs off detailed plans and
specifications of each development
prior to construction. Directors
undertake regular visits to sites to
monitor and ensure the quality is of
the highest standard.
Non-Executive Directors site visits
highlight differing stakeholder
Perspectives and provide valued
feedback which is acted upon at
Board level.
The Board monitors and challenges
quality metrics and interrogates
underlying causes.
5 Sustainable, responsible
and long term
Sustainability and responsible
business practice are central to
Our Vision 2030, the long-term
strategy which is set and monitored
by the Board, and which includes
targets and actions to drive postive
outcomes.
The Board oversees Berkeley’s
uniquely long-term operating
model which enables the business
to unlock highly sustainable long-
term urban regeneration projects
few developers are willing or able to
take on.
6 Collaborative and
responsive partners
The Board monitors Berkeley’s long-
term regeneration partnerships
which are fundamental to the
successful delivery of large-
scale urban regeneration
projects. Directors maintain
regular engagement with central
government, local government,
community, housing association
and landowner partners to ensure
we continue to understand
and deliver against their goals.
The Board interrogates individual
challenges and solutions developed
across our sites to ensure learning
and innovation is shared across
the Group.
7 Autonomy, independence
and entrepreneurial flair
and trust our instincts
The Group operates through our
autonomous operating companies,
as well as a unique network of
international offices in key markets
across the globe. Our companies
are empowered to develop unique
solutions to unlock their site and
create places of lasting quality and
value, with support from strong
central functions including Legal,
Build Quality, Health and Safety and
Corporate Governance. The Board
monitors performance across all
operating companies to share best
practice and innovation, and to
ensure Berkeley’s standards and
culture are fully embedded.
8 Innovation and
industry leadership
The Board promotes innovation
and best practice across the
business and challenges Berkeley
to maintain its industry leading
performance across a wide range
of areas, including customer
satisfaction, build quality, brownfield
regeneration, community building,
climate action and nature recovery.
How do we embed
our culture?
Our strong, value-based
working culture is key to our
strategy and provides a clear
competitive advantage.
The Board continues to embed,
monitor and reinforce our culture
throughout the business.
Our cultural framework
Berkeley’s culture is defined by our
purpose, values and vision for the future.
This cultural framework has a dynamic
and energising effect on the way we
work and helps to create a positive
working environment for our people
that fosters respect, support, wellbeing,
safety and inclusivity.
Our unique culture is celebrated
throughout our business and has a
dynamic and energising effect on the
way we work. It informs goals, targets,
behaviours and drives our performance
and outcomes at all levels.
Our purpose
To build quality homes, strengthen communities and improve people’s lives.
Our values
Have
integrity
Be
passionate
Think
creatively
Respect
people
Excellence
through detail
Build trust by
being open, clear
and credible.
Take pride in what
we do and the
impact we make.
Find individual
solutions for every
site and situation.
Work together,
empower people
and value their
contribution.
Deliver the best
through attention to
detail in everything
we do.
Our vision
To be a world-class business, trusted to transform the most challenging sites into exceptional places
and to maximise our positive impact on society, the economy and the natural world.
Our culture in detail
These are the core features of
the Berkeley working culture:
1. We put our customers at the heart of everything
2. We strive to create a positive, safe and inclusive
working environment
3. We are passionate about people and communities
4. We enhance quality in every small detail
5. We are sustainable, responsible and always think long-term
6. We are collaborative and responsive partners
7. We value autonomy, independence and entrepreneurial flair
8. We lead by example, innovate and break the mould
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Stakeholder engagement
Board engagement with
stakeholders
The role of the Board is to deliver
value to all stakeholders and
promote the long-term sustainable
success of the Company. The Board
recognises the importance of
engaging with its stakeholders on
all aspects of the Group’s activities
and this enables their interests
to be considered in the decision
making of the Board. Throughout
this year, the Board sought to
ensure that it understood the views
of stakeholders when making
decisions.
At Board meetings, the Chief
Executive provides an overview
on how the Group has delivered
for its key stakeholders. Papers
to our Board and Committees
include assessments of the relevant
stakeholder impacts to aid the
Board’s decision-making. The Board
is aware that, in some situations,
stakeholders’ interests will be
conflicted, and they may have
to prioritise some stakeholders’
interests. The Board, led by the
Chairman, ensures that as part of
its decision-making process, the
Directors are aware and discuss the
impacts of their decisions on the
Group’s key stakeholders.
How the Board engages with
investors
The Company continues to
undertake active dialogue with its
current and prospective institutional
shareholders through annual and
interim results presentations and
ad-hoc meetings. During 2023/24
discussions focused around the
half year and year end results, and
covered topics such as operations,
performance, markets, business
strategy and capital allocation, and
governance matters. Shareholders
are also kept up to date with the
Company’s activities through the
results announcements and trading
updates. In addition, the corporate
website provides information on the
Group and latest news, including
regulatory announcements and
corporate governance updates.
The presentations made after the
announcement of the preliminary
and interim results are available on
the Investor section of the website.
In early 2023, the Company
engaged Lazard to undertake
an institutional shareholder
perceptions review. The review
produced a qualitative assessment
based on research interviews with
a balanced sample of 18 leading
global institutions that controlled
nearly half of the Company’s
shares between them. To ensure a
quantitative context, Lazard also
undertook analysis based on past
results and sell-side forecasts of
future performance and reviewed
how the Company’s share register
had developed over the two years
to December 2023.
The Chief Executive and Chief
Financial Officer meet with major
shareholders twice annually to
discuss the strategy and operations
of the Group as well as any issues
the shareholders wish to raise. The
Board is always available to meet
with any of the major shareholders
throughout the year.
The Chairman and Senior
Independent Director are available
to shareholders if they have
concerns and contact through the
normal channels has failed or when
such contact is inappropriate.
How the Board engages with
employees and the workforce
The aim of the Board is to
develop a highly talented and
skilled workforce that will work
together in a safe, healthy and
supportive environment, and take
pride in delivering outputs of the
highest quality that deliver value
to customers, local communities
and other stakeholders. The
Board recognises that talented
and motivated employees are the
Company’s strongest resource. The
health and safety of our employees
is paramount, in terms of both
physical and mental wellbeing, and
this continues to be a key area of
focus for the Board through Our
Vision 2030.
In addition to ensuring the safe
operation of our sites, the Board
engages with employees in a
number of different ways; the
Chief Executive and Chief Financial
Officer regularly visit the operating
companies and their developments
to oversee the site activities.
Members of the Board are present
at staff conferences to provide
business updates and encourage
open group discussions. The people
engagement forum is a single
platform for reviewing employee
matters, sharing best practice
and capturing its output for the
Executive Committee and Board.
This year, divisions have shared best
practice from their local people
plans, including items such as
health and wellbeing provisions, EDI
initiatives and exit interviews, which
helped to inform the Group People
Framework. This framework sets the
structure for action to be taken at
a Group level and for a consistent
approach in five areas across our
operating businesses, including
employee engagement, attraction
and recruitment, equity, diversity
and inclusion, staff upskilling and
employee benefits and wellbeing.
Whistleblowing
The Group has a Whistleblowing
Policy, which has been
communicated to all employees.
In accordance with this policy,
Directors, management, employees
and external stakeholders can
report in confidence, outside
of normal reporting channels,
any concerns they may have of
malpractice, financial irregularity,
breaches of any Group procedures,
or other matters.
Any such concerns are subject to
proportionate and independent
investigation. The policy is available
to view on the Group’s website.
Bribery Act and Anti-Money
Laundering Regulations
The Board has responsibility for
complying with the requirements
of the Bribery Act 2010 and The
Money Laundering, Terrorist
Financing and Transfer of Funds
(Information on the Payer)
Regulations 2017 and is charged
with overseeing the development
and implementation of the
Group’s policies and procedures
thereon and monitoring
ongoing compliance.
Board activities during the year
The governance structure on pages
117 to 119 of this report sets out the
key responsibilities of the Board.
These responsibilities are met
through a number of standing
Board agenda items for which
reports are presented, covering, for
example, health and safety, finance
and performance, risk, customer
service, ESG-related matters, the
housing and sales market, and
investor relations amongst others.
In addition, the Board undertook a
number of deep-dive reviews into
topics during the year including
on people (staff survey results
and talent and succession plans),
international sales markets,
ESG, external positioning and
shareholder perception review.
Strategy is a cornerstone of the
Board’s considerations and
remains enshrined in all reports
to the Board.
The focus of Board activities can
largely be categorised into four
areas: strategy, operations, finance
and governance.
Strategy
Build to Rent platform
In the context of the prevailing
operating environment, the Board
reviewed its capital allocation in
the year and took the decision
to deploy its free cash flow to
accelerate delivery of its existing
assets to build a London and
South East focused Build to Rent
residential portfolio and platform
that can maximise value from
this growing market segment to
the benefit of both society
and shareholders.
Our Vision 2030
The Board monitors performance
against the Our Vision 2030 targets
and long-term goals, receiving
progress reports at each meeting.
Our Vision 2030 Executive board
meetings are held monthly to
review progress against the targets
and to drive performance.
Further details of the Group’s
performance in respect of ESG
matters of strategic importance to
the Group are set out on pages 66
to 67 of the Strategic Report.
Planning status of future
developments
The Board receives updates at
each meeting on the planning
environment and key planning
milestones of sites. In particular,
the Board develops mitigation
strategies to deal with an
increasingly difficult planning
landscape.
Regulatory changes
The Board is provided with updates
to the regulatory landscape. This
year, the Board has monitored the
scope, transitional arrangements
and technical requirements of
second staircases in tall buildings,
alongside assessing the impact
from the new Building Safety
Regulator and of the wider
regulatory framework relating to
the Building Safety Act 2022.
Cyber security and data
protection
Mindful of continuing cyber
security risks and data protection
requirements, the Board reviews
emerging threats and responses.
Through a steering group chaired
by the CFO that meets monthly,
the Group assesses and actions
opportunities for improvement and
to ensure appropriate response
plans are in place.
Political and public affairs
As a consistent theme explored
by the Chief Executive’s Report
and as a specific agenda item at
a meeting during the year, the
Board receives presentations on
the current political landscape
and public affairs that help shape
Berkeley’s communication and
engagement approach.
Operations
Risk
Operational and strategic risk is
discussed at all Board meetings,
with emerging risks considered
on an ongoing basis. During the
year, the Board allocated one
of its meetings to discuss and
debate the evolving risk landscape
and the implication of this to
Berkeley’s strategy.
Health and safety
Health and safety is discussed at
all Board meetings. Being mindful
of its industry-leading approach to
health and safety, the Board keeps
under review initiatives to retain
focus in this area. Further details of
the Company’s health and safety
approach are set out on page 51 of
the Strategic Report.
Building fire safety matters
The Board authorised entry into
the Responsible Actor Scheme
introduced under the Building
Safety Act 2022. The Board receives
reports on the status of works
required by fire safety assessments
being instructed under the Self-
Remediation Terms and Contract.
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Stakeholder engagement continued
CMA market investigation
The Company continues
to cooperate fully with the
Competition and Markets Authority
in its investigation into the
sharing of information between
housebuilders and whether this
is adversely affecting pricing for
customers and build-out rates.
Supply chain resilience
The Commercial Committee
monitors risks around the Group’s
supply chain and works across the
divisions to mitigate such risks and
reports through to the Executive
Committee from which the Board
receives updates.
Finance
Shareholder returns
The Board reaffirmed its
shareholder returns programme,
based upon an ongoing annual
return of £283 million planned
through to September 2025.
In respect of the remaining
£218.9 million to be returned by
30 September 2024, the Board
resolved to make a further interim
dividend of £34.9 million in August
and a special dividend of £184.0
million in September accompanied
by a share consolidation, subject
to approval by shareholders at the
September AGM.
Core funding and liquidity
The borrowing capacity of
the Company was unchanged
during the year at £1,200 million,
comprising the £800 million bank
facility with a term to February
2029 and £400 million unsecured
listed bonds which mature in
August 2031.
Specific funding arrangement
During the year, the Board
approved the terms and loan
documentation for a £125.6 million
facility with Homes England
whereby it may apply amounts
borrowed towards financing or
re-financing infrastructure costs on
three developments.
Annual Report and Accounts
During the year, the Board reviewed
and approved the Annual Report
and Accounts and interim results,
along with associated press releases
and trading updates.
Company tax policy
The Group’s tax strategy is overseen
by the Board, under which Berkeley
seeks to meet its statutory and
regulatory tax obligations. The
Board undertakes an annual review
of the Group Tax Policy, or more
frequently if there are material
changes in the tax environment.
The aim is to ensure that risks
associated with the interpretation
and application of taxation laws
and regulations are appropriately
managed, identified and evaluated
in accordance with the Group’s risk
management framework.
Governance
Board and Committee
composition
At the conclusion of the 2023 AGM,
three Non-Executive Directors
who had served on the Board for
more than nine years: Sir John
Armitt, Diana Brightmore-Armour
and Andy Myers stepped down
and retired from the Board. While
the Board had reviewed the
independence and contribution of
each of the Non-Executive Directors
in accordance with Provision 10 of
the Code and concluded that they
each continued to maintain and
contribute an independent view in
all Board deliberations, consistently
providing robust challenge and
scrutiny, their retirement was
agreed in line with best practice
corporate governance.
The Board took this opportunity to
streamline the Board and did not
replace the three departing Non-
executive Directors. Accordingly,
and in line with best corporate
governance practice, three
Executive Directors, Justin Tibaldi,
Karl Whiteman and Paul Vallone,
stepped down from the Board at
the end of the 2023 AGM.
Following these changes, the
Board implemented a number
of committee and role changes:
Rachel Downey replaced Diana
Brightmore-Armour as Senior
Independent Director; Andy Kemp
replaced Andy Myers as Chairman
of the Audit Committee; Natasha
Adams replaced Andy Kemp
as Chair of the Remuneration
Committee; William Jackson joined
the Remuneration Committee; and
Natasha Adams and Andy Kemp
joined the Nomination Committee.
Board evaluation
The Code requires that the Board
undertakes an annual evaluation
which is externally facilitated at
least once every three years. As
the last external Board review
was undertaken in 2020/2021, the
review for 2023/24 was conducted
externally. Full details of the
2023/24 Board evaluation are on
page 123.
Division of responsibilities
The Chairman leads the Board
and is responsible for the overall
effectiveness of the Board and its
Committees, for setting and shaping
the culture in the Boardroom and
the Company, overseeing high
standards of corporate governance,
ensuring the Board determines the
nature and extent of significant
risks the Company is willing to
embrace in the implementation
of its strategy, ensuring effective
communications between the Board
and shareholders and ensuring the
Board understands the views of
the Company’s key stakeholders.
The Chief Executive has day-
to-day executive responsibility
for the running of the Group’s
businesses. His role is to lead the
Group’s strategic direction and
propose, develop and deliver the
overall strategy and business plans,
to enable the Group to meet its
objectives, to oversee and maintain
relations with investors and other
key stakeholders, to ensure the
appropriateness of the Group’s
risk management strategy, and
to ensure effective policies and
procedures for the management,
development and succession
planning of the management team
and the Company’s staff.
The Senior Independent Director’s
primary role is to work closely with
the Chairman, serving as a sounding
board, providing support in the
delivery of objectives and serving as
an intermediary for other Directors
and shareholders.
The Non-Executive Directors,
led by the Senior Independent
Director, Rachel Downey, have the
skills, experience, independence
and knowledge of the Company
to enable them to discharge
their respective duties and
responsibilities effectively.
Each Non-Executive Director
is prepared to question and to
challenge management. All of
the Non-Executive Directors
are considered to have been
independent throughout the year.
The Board reviews the independence
of Non-Executive Directors on an
annual basis taking into account
each individual’s professional
characteristics, behaviour and
their contribution to unbiased and
independent debate. See page 116 of
this report for more details.
The Group operates through
autonomous divisions and operating
companies, each with its own board.
Operating company boards meet
on a weekly basis and divisional
boards on a monthly basis, and
comprehensive information is
prepared for such meetings on
a standardised basis to cover all
aspects of the business. Formal
reporting lines and delegated
levels of authority exist within this
structure and the review of risk and
performance occurs at multiple levels
throughout the operating companies,
divisions and at Board level.
Strong central functions, including
Legal, Health and Safety and
Corporate Governance, provide
support and consistency to
the Board.
In addition, the principal treasury-
related risks, decisions and control
processes are managed by the
Group Finance function, under the
direction of the Chief Financial
Officer.
Board Committees
The Board has delegated certain
matters to individual Executives
and to the specific Committees
of the Board: Nomination, Audit
and Remuneration. The three main
Board Committees operate within
clearly defined Terms of Reference
pursuant to the provisions of the
Code. The Terms of Reference
for each of the three main Board
Committees can be downloaded
from the Corporate Governance
page of the Investor section of
the Company’s website. Copies
are also available to shareholders
on application to the Company
Secretary. The responsibilities of
the key Board Committees are
described within the relevant
reports on pages 120, 126 and 130.
Conflicts of interest
In accordance with the Companies
Act 2006, the Company’s Articles
of Association allow the Board
to authorise potential conflicts
of interest that may arise and to
impose such limits or conditions
as it thinks fit. The decision to
authorise a conflict of interest can
only be made by non-conflicted
Directors (those who have no
interest in the matter being
considered) and in making such a
decision the Directors must act in
a way they consider in good faith
will be most likely to promote the
Company’s success.
The Company has established
a procedure whereby actual and
potential conflicts of interest
of current and proposed roles
to be undertaken by Directors of
the Board with other organisations
are regularly reviewed in respect
of both the nature of those roles
and their time commitment, and
for proper authorisation to be
sought prior to the appointment
of any new Director. The Board
considers these procedures to be
working effectively.
The Board has a
range of experience
and has strong
knowledge in areas of
property development,
construction, media and
communications, public
sector, Government,
communities, inclusivity
and social engagement,
finance and banking,
and commerce and
governance, both in the
UK and internationally.
It is the balance of
skills, experience,
independence and
knowledge of the
Board as a whole which
ensures that the duties
and responsibilities
of the Board and
its Committees are
discharged effectively.
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Division of responsibilities continued
Nomination
Chair: Michael Dobson
The Nomination Committee
ensures that the membership
and composition of the Board,
including the balance of skills,
experience and diversity, is
appropriate, as well as giving
full consideration to succession
planning on a regular basis.
See page 120 for the Report of the
Nomination Committee.
Audit
Chair: Andy Kemp
The Audit Committee is
responsible for monitoring and
reviewing the financial reporting
and accounting policies of
the Company, reviewing the
adequacy of internal controls
and the activities of the
Group’s internal audit function,
including financial, operational
and compliance controls, and
overseeing the effectiveness of
the external auditor.
See page 126 for the Report of the
Audit Committee.
Non-Executive Chairman
Michael Dobson
Responsibilities:
– leading the Board and ensuring
its overall effectiveness, setting
the agenda and ensuring that
accurate, timely and clear
information is provided to the
Board as required;
– setting, shaping and sustaining
the culture in the Boardroom
and the Group;
– overseeing the implementation
of high standards of corporate
governance;
– encouraging constructive
Board relations and open
debate and ensuring that
each Director contributes to
effective decision making; and
– ensuring effective
communication between
the Board and shareholders
and ensuring the Board
understands the views of the
Company’s key stakeholders.
Senior Independent Director
Rachel Downey
Responsibilities:
– working closely with the
Chairman, serving as a
sounding board and providing
support and advice in the
delivery of objectives;
– leading the Chairman
succession process;
– serving as an intermediary
for other Directors and
shareholders, including
meeting with Non-Executive
Directors annually, without the
Chairman present to evaluate
the Chairman’s performance,
and provide feedback to the
Chairman and Chief Executive
Officer; and
– being available to shareholders
and other Non‑Executive
Directors to address any
concerns not otherwise dealt
with through usual channels of
communication.
Non-Executive Directors
Andy Kemp
Elizabeth Adekunle
William Jackson
Sarah Sands
Natasha Adams
Responsibilities:
– bringing an external
perspective in providing
additional advice and expertise
to support the Board in setting,
developing and monitoring the
implementation of the Group
strategy;
– providing sound judgment,
objectivity and an appropriate
level of constructive challenge
and scrutiny of Board
decisions;
– serving on Board Committees
to ensure that fair and
balanced policies are
implemented, including
Executive remuneration and
risk management; and
– having an awareness of
shareholder and other
stakeholder matters and
offering guidance as required.
Remuneration
Chair: Natasha Adams
The Remuneration Committee
is responsible for determining
the Company’s policy for
Executive remuneration and the
precise terms of employment
and remuneration of the Non-
Executive Chairman and the
Executive Directors.
See page 130 for the Report of the
Remuneration Committee.
Responsibilities of the board
Board Committees
The Executive Committee meets regularly and reviews
the financial and operating performance of all Group
divisions and companies. The Committee is chaired
by the Chief Executive and comprises the CEO,
the CFO, the heads of the Group’s main operating
divisions, Justin Tibaldi, Paul Vallone, Karl Whiteman,
Piers Clanford, Alison Dowsett, Elkie Russell and Dean
Summers, along with the Group Solicitor, Wendy
Pritchard, Responsible Business Executive, Lorraine
Fursland, and is supported by the Company Secretary,
Victoria Mee.
Key responsibilities include:
– business planning;
– reviewing the financial and operating performance
of all Group divisions and companies;
– risk management;
– cash management;
– delivery of Group strategy;
– legal and regulatory matters;
– brand and reputation;
– relationships with local authority and Government
stakeholders; and
– people.
Divisional and operating
company boards
Key responsibilities include:
– Health and safety
– Sales and marketing
– Land and planning
– People retention and
development
– Regulatory matters
– Production
– Assessing the impact of
the economic and political
environment
– Site-specific matters
– Customer service
Operational committees
Key responsibilities include:
– Health and Safety
– IT
– Production
– People
– Customer Service
– Land and Planning
– Commercial and Technical
– Sales and Marketing
– Sustainability
– Estates Management
Chief Executive
Rob Perrins
Responsibilities:
– day-to-day running of the Group’s businesses and
operations;
– leading the Group’s strategic direction, proposing,
developing and delivering the overall strategy
and business plans to enable the Group to meet
its objectives, having regard to the needs of key
stakeholders;
– overseeing and maintaining relationships with
investors and other key stakeholders;
– ensuring the appropriateness of the Group’s risk
management strategy; and
– ensuring effective policies and procedures for
the management, development and succession
planning of the management team and the
Company’s staff.
Chief Financial Officer
Richard Stearn
Responsibilities:
– managing the financial affairs of the Group,
including investor relations, tax, treasury, internal
audit and insurance functions;
– managing the relationship with the external
auditor;
– strategic risk management of the Group; and
– oversight of the IT and HR functions.
THE EXECUTIVE COMMITTEE
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30 Apr 2024
30 Apr 2024
0
0
5
4
10
8
0
5
10
Commerce/Governance
Finance/Banking
Recent relevant financial
experience
PLC Board experience
Public sector/Government/
Community
International
Construction
Development
People/Culture
Media/Comms
Nomination Committee Report
Michael Dobson | Chairman, Nomination Committee
The Board of Directors presents its
Nomination Committee Report for
the year ended 30 April 2024.
Committee purpose
and responsibilities
The key responsibilities
of the Committee include:
– reviewing the structure, size
and composition of the Board
and Board Committees and
making recommendations
to the Board having regard
to succession planning and
supporting diversity;
– evaluating the balance of skills,
knowledge, experience
and diversity on the Board;
– leading the process for
identifying and nominating
candidates for the Board; and
– led by the Chairman, the
appointment and management
of an external consultant
to undertake the Board
evaluation.
The Committee’s Terms of
Reference set out its full remit
and can be downloaded from
the Investor section of
the Berkeley website
(www.berkeleygroup.co.uk/
investors/corporate-governance).
Composition, Succession and Evaluation
Meeting items discussed
October 2023
— Board and Committees’
composition and succession
planning
— Diversity and inclusion
— External Board Review
April 2024
— Board and Committees’
composition and succession
planning
— Diversity and inclusion
Membership meetings and attendance
Committee
member
Date of
appointment
to Committee
Meeting
attendance
% of
meetings
attended
Michael Dobson (Chairman)
8 June 2022
100%
Rachel Downey
16 November 2022
100%
William Jackson
5 January 2021
100%
Natasha Adams
8 September 2023
100%
Andy Kemp
8 September 2023
100%
Board composition dashboard
Board gender balance
Non-Executive Director tenure
Male
Female
0–3 years
4–6 years
Board independence
Non-Executive
Chair
1
Non-Executive
Directors
6
Executive
Directors
2
Committee activities
Led by Michael Dobson, the
Committee gave further
consideration to Board and
Committee composition, having
regard in particular to tenure,
independence and diversity, to
ensure a mix of skills, knowledge
and experience.
The Board Diversity Policy is
available on the Company’s website
at www.berkeleygroup.co.uk/
investors/corporate-governance
and an update in respect of
diversity and inclusion is provided
on pages 123 to 124.
This year our Board evaluation
was carried out externally. Further
details in respect of the external
Board review are set out on
page 123.
Board and Committees’
composition and succession
planning
During the year the Committee
reviewed the Board’s composition
to ensure that it had the correct
balance of skills required for
the leadership of the Group.
Consideration was therefore given
to succession planning for both
Non-Executive and Executive
Directors.
At the conclusion of the 2023
AGM, we streamlined the Board by
reducing its size in line with best
corporate governance practice.
As a result of these changes, the
Board size was reduced from 15 to
nine, comprising an independent
Non-Executive Chairman, two
Executive Directors (the CEO
and CFO) and six Non-Executive
Directors.
The process for identifying and
recommending new appointments
to the Board utilises the services
of an independent recruitment
specialist, when appropriate. In
accordance with the Board Diversity
Policy, when considering the use
of open advertising or executive
search consultants, the Company
will use only those firms that have
Non-Executive Director skills matrix
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adopted the Voluntary Code of
Conduct in respect of diversity,
including in respect of gender and
ethnicity. There have been no new
appointments to the Board during
the year ended 30 April 2024.
While the Articles of Association
of the Company include the
requirement for Directors to submit
themselves to shareholders for
re-election every three years, all
Directors are subject to election
by shareholders annually in
accordance with the requirements
of the Code. Newly appointed
Directors are subject to election
at the first opportunity after their
appointment. All Directors will be
offering themselves for re-election
at the 2024 AGM to be held on
6 September 2024.
Induction and development
On appointment, Non-Executive
Directors are provided with a
detailed induction programme.
This covers an overview of the
Group’s operations and its policies,
corporate responsibility and
corporate affairs issues, legal
matters and also the opportunity
to meet with Directors and key
senior employees and to visit the
Group’s sites.
Ongoing training is available to all
Directors to meet their individual
needs. Board members also receive
regular guidance and updates
on regulatory matters and the
corporate governance framework
in which the Group operates.
Additionally, during the year,
Directors received training on the
Market Abuse Regulations.
Members of the Audit and
Remuneration Committees
receive briefings from the Group’s
auditor and remuneration advisor
respectively to ensure that they
remain up to date with current
regulations and developments.
All Directors have access to advice
from the Company Secretary and
independent professional advisors,
at the Company’s expense, where
specific expertise is required in the
course of their duties.
2022/23 Board
Evaluation
Following the 2022/23 Board
evaluation, the Board set itself the
following goals, progress against
which is as follows.
NED tenure
Review Board and Committees’
composition to address
independence considerations in
respect of long serving tenure
The Board and Committees’
composition was subject to careful
consideration in line with best
corporate governance practice,
the outcome led to the changes
at the 2023 AGM which delivered
compliance with all aspects of
Board composition under the UK
Corporate Governance Code and
Listing Rule 9.8.6R(9)(a).
Training and knowledge sharing
Consider fresh perspective to
NED training and knowledge
sharing
The Board continues to review
its training programme for NEDs
which incorporates standing
regulatory and legal briefings
and external training courses.
Significant developments and
matters of particular relevance
to the Company are the subject
of dedicated papers at both the
Board and Committees.
Board Schedule
Reassess Board schedule,
with a view to further
refining approach to Board
priorities and key matters
for consideration
The assessment led to a refreshed
approach to priorities in the
context of deep dives into specific
areas by the Board in 2024.
This approach received positive
feedback from the Board in the
2023/2024 evaluation.
People and Diversity
and Inclusion
Further develop the Company
and Board’s approach in
respect of people, succession
and diversity and inclusion
matters, in line with Parker
Review recommendations and
the FRC 2023 consultation
on proposed changes to the
Combined Code
This action has been addressed
throughout 2024 and in particular
through deep dives on People,
Succession and ESG. This subject
matter is, by its nature, an
ongoing focus for the Board.
2023/24 Board
Evaluation
The Company undertook a
comprehensive review of all
aspects of the Board’s effectiveness
through an externally facilitated
evaluation. Following a formal
tender process undertaken by
the Nomination Committee, the
Company appointed Ffion Hague
of Independent Board Evaluation
(IBE). IBE has no other connection
with the Company or any of the
directors. IBE is a member of The
International Register of Board
Reviewers and conducted the
evaluation in accordance with the
guidance in the UK Corporate
Governance Code.
Process
A comprehensive brief was given to
the assessment team at IBE at by
the Chairman, the Chief Executive,
and the Company Secretary, in
January and February 2024. The
lead evaluator observed main Board
and committee meetings in March
and April and support materials for
briefing purposes were provided by
the Company.
In April and May, detailed interviews
were conducted with every Director.
All participants were interviewed for
1.5 hours by Ffion Hague according
to a set agenda, tailored for the
Board. In addition, the team at IBE
interviewed members of the senior
management team and advisers.
The report’s conclusions were
discussed with the Chairman and
subsequently discussed with the
Board at its meeting on 12 June
2024. That discussion is recorded in
the minutes of the meeting.
In addition, Ffion Hague gave
feedback to Committee chairs
on the performance of each
Committee and discussed the
Board’s feedback on the Chairman’s
performance with Rachel Downey,
the Senior Independent Director.
The Chairman also received a
report with feedback on individual
Directors’ performance as an input
to the regular annual performance
review process.
Focus
The comprehensive brief to IBE
incorporated:
– Board role, performance and
effectiveness;
– Board agendas, papers,
information and minutes;
– Focus, structure and frequency
of Board meetings and informal
Board engagement;
– Board and Committees’
composition and succession
planning;
– Director contributions, knowledge
exchange, development and
training;
– Committees’ effectiveness and
performance;
– Stakeholder engagement;
– Approach to diversity and
inclusion and people and culture.
Outcomes
The external evaluation set out
key areas for the Board to discuss
and set goals which include the
following:
– Recognising similar tenure
of NEDs, develop a plan for
staggered rotation, based
upon review and assessment of
skills matrix and current Board
composition.
– Continue to develop succession
plans for Executive Director and
Senior Management roles within
the business.
– Increase NED site visits, reflecting
broad recognition of the value
of these in understanding the
corporate culture, engaging
with employees and the senior
management team beneath the
main Board.
– Continue to develop Board
induction processes and training,
particularly in readiness for future
NED appointments.
Diversity and Inclusion
Berkeley strives to create a positive
environment for its people, one that
fosters respect, support, wellbeing,
safety and inclusivity and continues
to work towards a workplace that
is representative of the areas and
communities in which it operates.
Berkeley is committed to equal
opportunities and aims to ensure
that all individuals receive equal
treatment, regardless of age,
disability, ethnicity, gender, sexual
orientation or socio‑economic,
educational or professional
background.
Recognising the benefits and
value that diversity in its broadest
sense brings to the Board, and
that the Board sets the tone for
diversity and inclusion across the
business, Berkeley believes in
promoting a culture of integrity,
openness and inclusivity. Noting
the recommendations of the
FTSE Women Leaders and the
Parker Reviews, and the targets
set out in Listing Rule (LR)
9.8.6R(9), the Board is committed
to sustaining a strong balance of
diversity, that reflects the diverse
range of perspective, insight and
challenge needed to enable the
Board to discharge its duties and
responsibilities effectively, and to
operate in a way that supports
the continued development of a
diverse and inclusive culture across
the Group.
At 30 April 2024, female
representation on the Board stood at
44.44%. The Group meets the ethnic
diversity target set by the Parker
Review, with one Non-Executive
Director identifying as being from
an ethnically diverse background.
Berkeley continues to help lead
the development of diversity and
inclusion within the construction
sector, bringing through a
generation of talented women
into senior positions within the
business. Across both the Board
and Executive Committee, female
representation in the most senior
roles within the Group stands at
47.37% at 30 April 2024.
Nomination Committee report continued
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A Group-wide Equality and
Diversity Policy is in place, in
line with Group strategy, making
it clear that Berkeley does not
tolerate discrimination in any form.
In accordance with Disclosure
and Transparency Rule 7.2.8AR,
the Board introduced the Board
Diversity Policy in June 2023
which sits alongside the Group-
wide Equality and Diversity Policy.
The Board Diversity Policy applies
specifically to the Board and its
Committees and sets out the
approach to diversity in respect
of Berkeley’s Board of Directors
and Senior Management and is
available on the Company’s website
at: www.berkeleygroup.co.uk/
investors/corporate-governance.
In accordance with the objectives
of the Board Diversity Policy, the
Nomination Committee regularly
reviews the structure, size and
composition of the Board. When
reviewing the composition of, and
succession plans for the Board and
making recommendations to the
Board in respect of changes, the
Nomination Committee has due
regard to all aspects of diversity
in determining the appropriate
balance of skills, experience,
knowledge and independence
to enable the Board to continue
to operate effectively in the best
interests of the Company.
During the year, the Board and its
Committees have complied fully
with the Board Diversity Policy.
Further information on diversity
and inclusion throughout the
organisation is set out on page 50
of the Strategic Report.
Michael Dobson
Chairman, Nomination Committee
19 June 2024
Nomination Committee report continued
In accordance with LR 9.8.6R(9), set out below is a summary of the Company’s compliance with Board diversity
targets at 30 April 2024, being the chosen reference date used for the purposes of LR9.8.6R(9)(a).
Targets
Compliance as at 30 April 2024
At least 40% of the individuals on the Board of
Directors are women.
At the reference date, 44.44% of the individuals on the
Board of Directors are women.
At least one of the senior Board positions (Chair,
Chief Executive, Senior Independent Director, Chief
Financial Officer) is held by a woman.
At the reference date, the position of Senior Independent
Director is held by a woman.
At least one individual on the Board of Directors is
from a minority ethnic background.*
The Berkeley Board currently includes one Director from
an ethnically diverse background.
* The following categories are used to define those from a minority ethnic background: Asian/Asian British; Black/African/Caribbean/
Black British; Mixed/Multiple Ethnic Groups; other ethnic group, including Arab.
In accordance with LR 9.8.6R(10), as at 30 April 2024, the numerical data on the gender identity and ethnic
background of the Board and Group Executive Committee, which was captured directly from the relevant
individuals, is as follows:
Number
of Board
members
Percentage
of the Board
Number
of senior
positions on
the Board*
Number in
executive
management
Percentage
of executive
management
Men
5
55.56%
3
2
58%
Women
4
44.44%
1
0
42%
Not specified/prefer not to say
–
–
–
–
0%
Number
of Board
members
Percentage
of the Board
Number
of senior
positions on
the Board*
Number in
executive
management
Percentage
of executive
management
White British or other White (including minority-white
groups)
8
89%
4
2
100%
Mixed/Multiple ethnic group
–
–
–
–
0%
Asian/Asian British
–
–
–
–
0%
Black/African/Caribbean/Black British
1
11%
–
–
0%
Other ethnic group, including Arab
–
–
–
–
0%
Not specified/prefer not to say
–
–
–
–
0%
* Senior positions on Board refer to the Chair, Chief Executive, Senior Independent Director and Chief Financial Officer.
Construction activity at White City Living
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Audit Committee report
Andy Kemp | Chairman, Audit Committee
I am pleased to present the Audit Committee Report for the year
ended 30 April 2024. This report describes the work undertaken by
the Audit Committee, including its consideration of the key areas of
estimation uncertainty underpinning the full year result, its review of
the Group’s risk management and internal control systems and its
assessment of the external auditor’s independence.
Introduction
The report has been prepared in accordance with the requirements
of the Code, the Listing Rules, Disclosure Guidance and Transparency
Rules 7.1 and 7.2 and the FRC Guidance on Board Effectiveness.
Details of the composition and experience of the Committee can
be found in the Directors’ biographies on pages 106 to 108 of this
Governance report and details of Committee meetings are summarised
in the table below.
The Board is satisfied that the Audit Committee has sufficient financial
experience and competence.
Membership meetings and attendance
Committee
member
Date of
appointment
to Committee
Meeting
attendance
% of
meetings
attended
Andy Kemp (Chairman)*
1 July 2021
100%
Andy Myers **
6 December 2013
100%
Rachel Downey
18 April 2018
100%
Sarah Sands
16 November 2022
100%
* Chairman of the Audit Committee since 8 September 2023
** Chairman of the Audit Committee from 1 September 2014 until 8 September 2023
Meeting items discussed
November 2023
– KPMG’s report on the audit
plan and strategy for the year
ending 30 April 2024
December 2023
– Interim results for the period
ended 31 October 2023
– KPMG’s report on the interim
review period
– Internal audit report
March 2024
– KPMG’s report on updates to
the audit strategy for the year
ending 30 April 2024
– FRC’s AQR report on KPMG’s
audit for the year ended 30
April 2023
– Annual formal review of risk
management and internal
control systems, including a
review of changes in the 2024
Corporate Governance Code
– Internal audit report
– Review of the Company’s
tax strategy
June 2024
– Financial results for the year
ended 30 April 2024
– KPMG’s report on the
Company’s consolidated
results and audit report
– Tax report for the year ended
30 April 2024
– Going concern and viability
assessment
– Assessment of fraud risk
– Internal audit report, including
approval of the audit plan for
the year ending 30 April 2025
– Auditor independence and
non-audit fees and services,
alongside an evaluation of the
annual audit process, including
KPMG’s response to the AQR
inspection findings
– Review of the narrative
reporting within the 2024
Annual Report
Meetings
The Committee met formally four
times during the year. By invitation,
the external auditor, Chief Financial
Officer, and Head of Finance were
present at all meetings, while the
Chief Executive Officer was present
at three meetings. The internal
auditor presented at three meetings
during the year.
In addition, the Chairman of the
Audit Committee meets with
the Chief Financial Officer and
the external auditor ahead of
each meeting. He also has the
opportunity to meet with the
internal auditor, as required, ahead
of each meeting.
The Chairman of the Audit
Committee approves any fees for
additional work undertaken by the
external auditor as permitted by the
Company’s policy on non-audit fees.
Financial Reporting
Ahead of the interim and full year
results announcements, the Chief
Financial Officer presented, and the
Committee debated, a report on
the consolidated financial results
of the Company, including the key
areas involving financial reporting
estimation uncertainty.
The Committee reviewed, prior
to their publication, the financial
disclosures in the Company’s
Annual Report and interim and year
end results announcements. The
Committee’s review incorporated
consideration of the appropriateness
of the relevant accounting policies
and financial reporting estimates
adopted therein. The reports to the
Committee by the external auditor
were considered in reaching its
conclusions.
Key accounting areas involving
estimation uncertainty that were
considered by the Committee
during the year were:
– Cost of sales recognition
The Group recognises a cost of sale
on each property sold and recorded
in revenue by reference to the
forecast development margin. The
development margin is an estimate
of the forecast profit percentage
for a development which, for
the most part, are developed
over multiple financial years. The
recognition of cost of sales at a
point in time is dependent on an
estimate of future selling prices,
direct costs and an allocation
of site-wide costs, including an
appropriate allowance for risk.
Consequently, the assessment of a
development’s margin evolves over
the development cycle in line with
the risk profile.
In addition, the Group’s particularly
complex, long-term regeneration
developments exhibit an inherently
higher degree of estimation
uncertainty given an exposure to
cross-cyclical market movements.
The Group applies an approach to
cost of sales allocation for these
sites whereby whole-site costs are
accelerated to the early stages of the
development to reflect the greater
uncertainty and the evolution of risk
over the life of such developments.
Management undertook an
assessment of these risks and
development assumptions and
reported the conclusions of these
assessments, by exception, to the
Committee in a financial overview
paper prior to the release of the
Group’s interim and year end results.
Following review of each paper, the
Committee concluded that it was
satisfied that the assumptions and
estimates adopted were appropriate.
– Post completion development
provisions
The accounting for provisions
relies on management estimating
the quantum and timing of cash
outflows to settle any legal or
constructive obligations.
The Group holds provisions for
post completion development
obligations in respect of the
construction of its portfolio of
complex mixed use developments
which are expected to be incurred
in the ordinary course of business,
based on historical experience of
the Group’s sites and current site-
specific risks, including matters
relating to building fire-safety, but
which are uncertain in terms of
timing and quantum.
The basis for determining these
provisions was presented to the
Committee for its consideration.
The Committee reviewed the
relevant papers and discussed
the assumptions underlying this
determination with management
and the Group’s external auditor
and concluded that it was satisfied
that the assumptions and estimates
adopted were appropriate.
A table of movements in provisions
over the year is included in note
2.16 to the Consolidated Financial
Statements. Other areas of financial
reporting focus for the year
included:
– Consideration of climate change
Through reporting to the Board
and consideration of narrative
reporting in the Annual Report,
the Committee concluded that
there was no material impact on
the financial reporting judgments
and estimates in the Financial
Statements as a result of climate
change for the year ended 30 April
2024. The Group’s disclosure in this
respect is set out in note 1.3 of the
Annual Financial Statements on
page 187.
– Review of the Annual Report
The Committee reviewed the
Annual Report and, taking into
account the views of the external
auditor, concluded that, taken as
a whole, it was fair, balanced and
understandable and provided the
information necessary for users
thereof to assess the Group’s
business strategy and financial
performance.
In March 2024, the Committee
was notified by the FRC that its
Corporate Reporting Review Team
(‘CRR’) had carried out a review of
the Company’s interim report for
the period ended 31 October 2023
in accordance with Part 2 of the
FRC Corporate Review Operating
Procedures and that there were no
questions that the CRR wished to
raise with the Company.
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Risk management
and internal control
The Board has overall responsibility
for monitoring the Group’s systems
of risk management and internal
control, ensuring that they comply
with the Code and the FRC’s
Guidance on Risk Management,
Internal Control and Related
Business Reporting, and for formally
reviewing their effectiveness
on an annual basis, but delegates
this responsibility to the
Audit Committee.
The Group has ongoing processes
and procedures for identifying,
evaluating and managing its
principal and emerging risks which
are embedded within the ongoing
business activities. At operating
company and divisional level, board
meetings are structured around
the key risks and opportunities
facing each of the businesses. In
addition, a quarterly formal process
involves each division producing a
risk and control report that identify
risks, the potential impact of these
and the actions being taken to
mitigate them. A consolidated
Group Risk Management Report is
presented at each Board meeting,
which overlays wider strategic risks
to those which are the focus of
the divisional reports. The Group
report sets out, and the Board
monitors, the evolving nature of risk
appetite which is a key element in
determining the Group’s strategy
and is set out on pages 90 to 91 of
the Strategic Report.
With risk assessment and
management being an ongoing
dynamic process, it is embedded
within the Group’s procedures and
debated at each Board meeting.
Nonetheless, the Audit Committee
undertakes the formal annual
review on behalf of the Board,
which covers:
– An assessment of the principal
and emerging risks:
The Committee reviewed a paper
covering the Group’s risk appetite
in response to the prevailing macro
and operating environment in
which the Group operated during
the financial year. In that context, it
also reviewed the risks reported in
the narrative of the Annual Report
for the year ended 30 April 2024,
which are set out on pages 90 to
103 of the Strategic Report.
– Assessment of the Group’s
control processes to mitigate
these risks:
The Group has five key components
to its internal control framework
and the Committee reviewed a
paper covering the assessment of
controls under each component
area with key areas of change
for the year ended 30 April 2024
highlighted therein:
1) Environment and culture;
2) Controls over investment
decisions and delivery;
3) Internal financial and operational
reporting;
4) Policies, procedures and IT
related security; and
5) Monitoring and challenge.
The Committee acknowledges
that internal control procedures
are designed to manage rather
than eliminate risk. They can
only provide reasonable, and not
absolute, assurance against material
misstatement or loss.
The Committee noted the
2024 changes to the Corporate
Governance Code, focusing
its initial review on the Board’s
requirement to establish and
maintain an effective risk
management and internal control
framework under Principle O, along
with the supporting provision
29 requiring the Board to review
the effectiveness of the Group’s
material controls and report
thereon in the Annual Report. The
Committee will continue to assist
the Board with its preparation
for compliance with the 2024
Code changes, with Provision 29
applicable for the Group’s financial
year commencing 1 May 2026.
A paper was also presented to the
Committee which summarised the
Group’s consideration, controls and
monitoring of fraud risk across its
activities.
– The effectiveness of internal
audit:
Internal auditors are in place at a
Group level and divisional level as
appropriate, to provide assurance
on the operation of the Group’s
internal control systems.
A report summarising the activities
of the Group internal audit function
was presented at three of the
Committee meetings during the
year. These reports covered:
– a summary of the key findings
arising from the internal audits
undertaken;
– management responses to control
weaknesses identified, the closure
of such weaknesses and any
recurring themes;
– the outcome of other operational
review work undertaken by the
Group internal audit function; and
– the internal audit plan for the
coming year for the approval of
the Committee.
The Committee also considered the
internal control recommendations
raised by the Group’s external
auditor during the course of the
audit and the Group’s response to
such recommendations.
The Committee was satisfied that
the scope, extent and effectiveness
of the internal audit function was
appropriate for the Group during
the year ended 30 April 2024.
– Going concern and viability
assessment
The Committee reviewed the
assumptions and methodology
behind the Group’s going concern
and Viability Statement, the period
that the assessment covered and
the sensitivity analysis undertaken.
The Committee was satisfied
that the Going Concern basis
and the Viability Statement were
appropriate and recommended
their approval to the Board. The
Viability Statement can be found on
page 93 of the Strategic Report.
External audit
Audit approach
KPMG presented its audit strategy
to the Committee which identified
its assessment of the key audit
risks and other areas of audit focus,
the scope of the audit work, and
included updates in respect of
regulatory changes for the current
year and those anticipated in future
years.
KPMG reported to the Committee
ahead of the release of the
interim and year end results on
its assessment of the Group’s
accounting estimates in respect of
the key audit risk areas and other
findings arising from its work.
The external auditor has open
recourse to the Non-Executive
Directors should it consider it
necessary. There is an opportunity
for private dialogue between the
Chairman of the Committee and
the external auditor throughout
the year and, more formally, prior
to each Committee meeting. After
each meeting there is also the
opportunity for the Committee
to meet with the external auditor
without management present.
Independence of
the external auditor
As part of its reporting to the
Committee, KPMG identified the
safeguards in place within its
internal processes and procedures
to protect, in respect of its own role,
the independence of its audit.
In order to safeguard auditor
independence, the Committee has a
policy on the provision of non-audit
services by the external auditor.
In accordance with that policy the
ratio of audit fees to non-audit fees
should be no greater than 0.7:1, with
a target of lower than 0.5:1 in any
one year and in aggregate over the
previous three financial years.
The ratio for the year ended
30 April 2024 was 0.10:1, well
within this limit. The non-audit
fees related to:
– The interim review, which is
closely related to the annual audit
process;
– Provision of limited assurance
over the Group’s scope 1, 2 and 3
carbon emissions data contained
within the Directors report on
page 160; and
– Provision of limited assurance on
the Group’s compliance with its
Green Financing Framework.
Audit and non-audit fee disclosures
are set out in note 2.4 to the
Consolidated Financial Statements.
Any departure from this ratio
will only be as a consequence of
transactional work and only where
such transactional work is non-
recurring. Where the Committee
considers it is right for the external
auditor to undertake such non-
recurring transactional work, the
Committee will ensure:
– that the nature of the work and
the basis for using the external
auditor shall be disclosed in the
Annual Report;
– that the work does not pose any
threat to the independence and
objectivity of the external auditor;
and
– that there is a presumption in
favour of using other firms to
provide transactional advice
unless such advice can only be
provided by the external auditor
on the grounds that:
– it is proprietary to them;
– it has pre-existing knowledge
and experience of a situation
which precludes the use of
alternative firms;
– the nature of the transaction is
such that the Group’s auditor is
the only practical appointment;
and
– it is at the discretion of
the Chairman of the Audit
Committee.
There is open dialogue between
KPMG and the Company’s senior
finance team to monitor any
proposed new instructions.
The Committee has concluded that
the auditor was independent during
the year ended 30 April 2024.
Appointment of KPMG
KPMG was first appointed as the
Group’s auditor with effect from 1
May 2014 by way of a competitive
tender. In line with applicable legal
and regulatory requirements, the
Group conducted a competitive
tender process during 2023 which
culminated in the reappointment
of KPMG as the external auditor for
the year ended 30 April 2024.
During the year, the audit by KPMG
of the Group’s financial statements
for the year ended 30 April 2023
was reviewed by the FRC’s Audit
Quality Review team (‘AQR’). The
FRC routinely monitors the quality
of the audit work of certain UK
audit firms through inspections
of sample audits and related
procedures at individual audit firms.
The AQR identified inspection
findings related to how the audit
team challenge and evidence their
consideration of the key audit risk
areas of cost of sales recognition
and post-completion
development provisions.
The Committee, management
and KPMG have discussed the
inspection findings and the agreed
actions and are satisfied with
responses implemented by KPMG
for the audit of the Group’s financial
statements for the year ended 30
April 2024. KPMG reported to the
Audit Committee as part of its June
2024 report on these matters.
On completion of the audit for
the year ended 30 April 2024,
the Committee reviewed the
performance and effectiveness
of KPMG, with feedback sought
from management. Taking this
review and KPMG’s response to
the findings of the FRC’s AQR
inspection together, the Committee
resolved to propose KPMG’s re-
appointment as the Company’s
auditor at the 2024 Annual
General Meeting.
The Company confirms that it
complied with the provisions of
the Competition and Markets
Authority’s Audit Order for the
financial year under review.
A Kemp
Chairman, Audit Committee
19 June 2024
Audit Committee report continued
128 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 129
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
130 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 131
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
Directors’ remuneration report
Natasha Adams | Chair of Remuneration Committee
Annual Statement of the Chair of the Remuneration Committee
Dear Shareholder,
I am pleased to introduce our Directors’ Remuneration Report for the year ended 30 April 2024. This is my first
Remuneration Committee report, having taken over as Chair at the 2023 AGM following Andy Kemp’s appointment
as Chair of the Audit Committee.
Berkeley operates a Remuneration Policy which is designed to reinforce long-term decisions and align with the
interests of our shareholders, and which comprises fixed pay alongside two simple equity-based awards both with
long vesting periods as portrayed on page 136. In the previous financial year, following approval of the current
Remuneration Policy, awards were made to the Executive Directors under the LTOP, and these one-off awards
will vest over the period through to 2030; no further decisions around the LTOP were required of the Committee
during 2023/24.
The Executive Directors also participate in the RSP, under which awards are made annually, as they were in the
current financial year, and which vest over a 4-year period. Vesting of the RSP awards is subject to achieving a 15%
Return on Equity over the 4-year period, with a further underpin adjusting the vesting downwards by up to 20% in
the event of unsatisfactory progress against strategic and ESG priorities. Whilst the RSP underpins are not finalised
until the end of the 4-year vest period, the Committee intends to monitor progress annually and report this to
shareholders; the first of these annual updates is included on page 132.
The only incentive to vest during 2023/24 was the eighth tranche under the 2011 LTIP on 30 September 2023.
The vesting of these awards was linked to (i) return targets – cumulative return to shareholders since 2011 and
returns for the 12 months to 30 September 2023 and (ii) financial targets – cumulative Return on Equity and
cumulative Profit before Tax, all of which were achieved in full. Consequently, this tranche vested in full, and no
discretion was required by the Committee other than to apply the total remuneration caps.
Shareholders will be aware that the number of Executive Directors on the Board was reduced at the 2023 AGM,
with now only the CEO and CFO representing the executive voice. As required by the reporting regulations, this
remuneration report discloses the pay information for the CEO and CFO for the full financial year, and for the
three previous Executive Directors for the time they served on the Board. No changes have been made to the
outstanding incentive awards for those executives who stepped down from the Board, and who continue to fulfil
their executive roles within the business in full.
No changes were made to the Executive Director salaries for 2023/24 and for the next financial year, 2024/25, no
changes will be made to their salaries, in line with the approach for other senior management. This compares to
average salary increases of 3.7% awarded to employees throughout the Group.
Financial highlights of 2023/24
The Company has had another strong year reflected in the following components of performance:
– Net cash of £532 million (2023: £410 million)
– Pre-tax return on shareholders’ equity of 16.2% (2023: 18.7%)
– Net asset value per share increased by 8.4% to £33.63 (2023: £31.01)
– Cash due on forward sales of £1.7 billion (2023: £2.1 billion)
– Future anticipated gross margin in the land bank of £6.9 billion (2023: £7.6 billion)
– Profit before tax of £557.3 million (2023: £604.0 million)
130-156 | Contents of the
Directors’ Remuneration
Report
131 Annual Statement of the
Chair of the Remuneration
Committee
134 Remuneration at a glance
135 Summary Remuneration Policy
139 Employment at Berkeley
142 How the Remuneration Policy
was operated in 2023/24 and
how the Policy will operate in
2024/25
145 Annual Report on Remuneration
Membership meetings and attendance
*
Natasha Adams was appointed Remuneration Committee Chair
on 8 September 2023.
** Andy Kemp stepped down as Remuneration Committee Chair
on 8 September 2023, but remains a member of the Committee.
*** Andy Myers stepped down from the Board and from his role
on the Remuneration Committee on 8 September 2023.
**** William Jackson was unable to attend the first Remuneration Committee meeting
following his appointment due to an existing diary commitment made prior to his
appointment.
Committee
member
Date of
appointment
to Committee
Meetings
attended
Natasha Adams (Chair)*
6 September 2022
3/3
Andy Kemp**
1 July 2021
3/3
Andy Myers***
1 May 2014
2/2
Michael Dobson
6 September 2022
3/3
William Jackson****
8 September 2023
0/1
Key responsibilities
of the Committee
The key responsibilities
include:
– Determine and agree with the
Board the broad policy for the
remuneration of the Group
Chairman, Executive Directors
and senior management.
– Review pay policies for the
wider workforce.
– Determine performance
conditions for the incentive
plans operated by the
Company and approve the
total annual payments made
under them.
– Determine all share incentive
plans for approval by the Board
and shareholders.
– Take into account the
views of shareholders and
the wider workforce when
determining plans under the
Remuneration Policy.
– Ensure that the contractual
terms on termination, and any
payments made, are fair to the
individual and the Company
and that failure is not rewarded.
– Note annually the remuneration
trends and any major changes
in employee benefit structures
across the Company or Group.
The Committee’s Terms of
Reference set out its full remit
and can be downloaded from
the section dealing with Investor
Relations on the Berkeley website
(www.berkeleygroup.co.uk).
Berkeley Group 2024 Annual Report | 133
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
132 | Berkeley Group 2024 Annual Report
Directors’ remuneration report continued
ESG highlights
Awards under the Restricted Share Plan are subject to an ROE underpin and a discretionary assessment by the
Remuneration Committee as to the Company’s progress towards its Our Vision 2030 priorities. This second
underpin is tested at the vest date but the Committee intends to report on the tracking against these priorities in
interim Directors’ Remuneration Reports. The Committee reviewed progress during the year, taking into account the
following aspects and noting the strong performance and leadership positions in these areas:
– Led the industry on biodiversity net gain (BNG), with all planning applications since May 2017 committing
to BNG ahead of it becoming mandatory in February 2024. To share lessons learnt from seven years of
implementation, we partnered with Natural England in spring 2024 to deliver a series of events to upskill local
authorities and SMEs on BNG.
– Awarded a place on the prestigious ‘A List’ by CDP for climate transparency and performance, the highest score
possible and held by just a small number of companies around the world.
– AAA rated in the MSCI global ESG index, ‘Prime’ status in the ISS ESG Corporate Rating, ‘low risk’ within
Sustainalytics and a Yearbook Member and Industry Mover within S&P Global’s Corporate Sustainability
Assessment (CSA).
– 48 embodied carbon studies completed as we progress our Climate Action programme. Awarded CDP’s Supplier
Engagement Award for our work with our supply chain on high impact materials.
– Prioritised the early delivery of public amenities and natural spaces to ensure local communities feel the benefits of
regeneration as soon as possible, with several facilities delivered during the year and more than 500 planned on our
live construction sites.
– Gold membership of The 5% Club maintained, with 9.5% of direct employees in ‘earn and learn’ positions as
graduates, apprentices or sponsored students.
– Tenth consecutive year rated as ‘outstanding’ by In-house Research Ltd, the third party we use to obtain
feedback from our customers. Industry leading Net Promoter Score (80.2) and customer satisfaction ratings
maintained.
– Established arrangements in place for Building Safety and Quality Assurance and detailed training for our teams,
helping us to create high quality homes and lead the industry as the Building Safety Act is embedded.
– Considerate and respectful construction, outperforming industry for health and safety standards and winner of
the coveted Considerate Constructors Scheme Most Considerate Site in the country at Eden Grove.
– Supporting the work of the Berkeley Foundation through funding, staff volunteering and fundraising to help
young people overcome barriers, improve their lives and build a fairer society.
Long-term Company performance
Berkeley’s Return on Equity compared with the sector over the last 10 years illustrates the relative performance of
the Company:
2014/15
2015/16
2016/17
2017/18
Restated
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
10-year
average
Berkeley
35.1%
30.8%
41.1%
41.9%
27.9%
16.6%
16.5%
17.5%
18.7%
16.2%
26.2%
Sector highest
35.1%
30.8%
41.1%
41.9%
34.1%
32.3%
23.1%
27.1%
20.7%
16.2%
26.2%
Sector lowest
12.2%
16.0%
15.7%
11.0%
15.9%
15.0%
5.7%
13.9%
8.8%
9.3%
12.9%
Sector average*
(excluding Berkeley)
18.2%
22.3%
24.2%
23.3%
24.9%
23.8%
10.5%
17.7%
13.7%
12.8%
19.1%
* Sector includes Barratt Developments, Bellway, Persimmon, Redrow, Taylor Wimpey and Vistry.
The performance over the last 10 years highlights Berkeley’s strategy to deliver long-term returns over the cycle.
Governance
The key governance highlights for the year were as follows:
– Appointment of a new member to the Remuneration Committee.
– The Committee reviewed the results of the shareholder vote on the Annual Report on Remuneration at the 2023 AGM, noting
86% of shareholders supported the report.
Decisions made during the year
The Committee determined the following during the year:
– Considered and approved the vesting of the eighth 2011 LTIP tranche in September 2023, including consideration
of the extent to which financial and individual performance conditions were met.
– Approved no salary increases for Executive Directors for 2023/24, compared to the average workforce increase
of 3.8%.
– Conducted a formal tender of the Remuneration Committee advisor. The process involved a request for proposal,
submissions by a number of leading remuneration advisory firms and presentations to the Committee. Following
the conclusion of this process Ellason LLP were appointed, replacing PwC.
Looking ahead – 2025 Remuneration Policy review
The Company is required to seek shareholder approval at the 2025 Annual General Meeting for a new
Remuneration Policy. During the forthcoming year the Committee will consider the current Remuneration Policy
and the extent to which it remains appropriate to support the delivery of the Company’s strategy over the next
Policy period. We intend to consult extensively with shareholders and proxy advisors in advance of seeking
approval of the new Policy at the 2025 AGM.
In conclusion
We believe that in the wider context of the Company, its stakeholders and the successful implementation of the
strategy that the remuneration outcomes for 2023/24 are appropriate. We look forward to shareholder support
for the Annual Report on Remuneration at the forthcoming AGM, and I welcome any comments you may have
on this report.
Natasha Adams
Chair of Remuneration Committee
19 June 2024
134 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 135
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
Remuneration at a glance
Executive Directors shareholdings
Looking ahead
Executive Directors’ remuneration for 2024/25
What we paid Executive Directors in the year
Executive Director £’000
Fixed pay1
LTIP
Total
2024
R C Perrins
659
7,367
8,026
R J Stearn
453
2,405
2,858
K Whiteman2
154
2,578
2,732
J Tibaldi2
152
1,922
2,074
P Vallone2
152
1,922
2,074
1. Fixed pay includes benefits, which are not included in the remuneration cap.
See page 145 for a full breakdown
2. K Whiteman, J Tibaldi and P Vallone stepped down from the Board on
8 September 2023 and remuneration amounts disclosed in the table is
to the date of stepping down from the Board.
R C Perrins CEO
Shares at 30/04/24
% base salary
10,719%
R J Stearn CFO
Shares at 30/04/24
Fixed pay
CEO salary
CFO salary
£597,000
£405,000
Benefits package remains unchanged.
Pension contribution of 6% of salary.
Restricted shares
– Annual grant: CEO 175% of salary; CFO 150% of salary
– Release of shares subject to performance underpin:
assessed after 4 years; ROE, strategic and ESG metrics
– One year post-vesting holding period
– Awards subject to malus and clawback
Read more
pages 145 to 149
Read more
pages 150 to 151
% base salary
2,778%
Read more
pages 143 and 147
Directors’ remuneration report continued
Remuneration Policy
Compliance statement
This report, prepared by the Committee on behalf of the Board, has been prepared in accordance with the
provisions of the Companies Act 2006 (the Act), the Listing Rules of the Financial Conduct Authority and the
Large and Medium-sized Companies and Groups (Financial Statements and Reports) (Amendment) Regulations
2013. The Act requires the Auditor to report to the Company’s shareholders on the audited information within this
report and to state whether, in their opinion, those parts of the report have been prepared in accordance with the
Act. The Auditor’s opinion is set out on pages 165 to 181 and those aspects of the report that have been subject to
audit are clearly marked. It is considered that throughout the year under review the Company has complied with
the governance rules and best practice provisions applying to UK-listed companies.
Our remuneration philosophy
We have developed a clear set of principles which embed our strategy into how we deliver remuneration to our
Executive Directors.
Remuneration principle
Details
Fixed pay should be aligned to
the market and the individual’s
experience.
The Committee sets salaries for the Executive Directors based on their
experience, role, individual and corporate performance. Salaries on appointment
to the Board may be set below that of the comparator group and subsequently,
based on appropriate levels of individual and corporate performance, may be
increased with experience gained over time.
Variable pay should be linked to
the long- term performance
of the Company.
The Committee believes that shareholders’ interests are best served by
remuneration packages that have a large emphasis on performance-related pay
which encourage the Executive Directors to focus on delivering the business
strategy.
Executives should be rewarded
for long-term sustainable
performance.
Our Remuneration Policy delivers all variable pay in the form of long-term
incentives. The long-term incentives, which extend to 2030, have been designed
to lock in the Executive team for a far longer period than is typical in most
publicly-listed companies. This helps to ensure that the Executive team is
focused on executing our capital allocations strategy and generating long-term
sustainable value for shareholders.
Executives should hold
substantial equity holdings.
In order to align the interests of Executive Directors and shareholders, the
reward strategy is designed so that, provided performance is delivered, the
Executive team become material (in relation to their overall compensation)
shareholders in the Company. We have a two-year post-cessation shareholding
period to align with best practice.
Executive remuneration should
not be excessive.
The Committee is cognisant of the broader environment regarding Executive
remuneration and the potential concerns regarding the quantum available to
Executive Directors notwithstanding the level of performance and growth which
may have been achieved by the Company.
The Committee considers the use of total remuneration caps to be an
appropriate response to these challenges.
136 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 137
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
Summary Remuneration Policy
The current Remuneration Policy was approved by shareholders at the 2022 AGM, and full details of the Policy
are set out on pages 18 to 28 of the 2022 Notice of Annual General Meeting which can be found on the Group’s
website at www.berkeleygroup.co.uk/about-us/investor-information/corporate-governance.
A summary of the elements under the Remuneration Policy is provided below.
Element
Remuneration link
Terms
Base salary, benefits and pension
– Modest fixed pay keeps costs low
with upside for achievement against
the priorities through variable pay.
– Pension: 6% of salary, in line with the
wider workforce.
Restricted Share Plan (RSP)
– Alignment with longer term
shareholder value.
– Strategic underpin tests progress
against the priorities of the Our
Vision 2030 on aspects such as
Climate action and Customers.
– Rolling RoE underpin measured
over 4 years tests sustainability of
returns for investors per the Shared
value priority.
– Together with fixed pay, provides
below-market median remuneration
to the extent that returns to
shareholders are median.
– Annual restricted share awards of
175% of salary for the CEO and 150%
for the CFO.
– Awards vest after 4 years subject
to achieving a 15% Return on
Equity over the 4-year period, with
a further underpin adjusting the
vesting downwards by up to 20% in
the event of unsatisfactory progress
against strategic and ESG priorities.
– Vested awards are subject to a
further 1-year holding period.
Long-Term Option Plan (LTOP)
– Progress against Our Vision 2030
priorities reflected in ability to
meet strategic objectives and grow
share price.
– Vesting over 2026 to 2030 aligns
reward to management with
realisation of the Vision.
– Level of potential upside reflects
stretch in the priorities across
the Vision.
– One-off grant in February 2023 of
1,000,000 options to the CEO and
350,000 options to the CFO
– Vesting in five equal tranches
between September 2026 and
September 2030, with a holding
restriction being in place until at
least 5 years from grant.
The exercise price ranges from
£48.50 to £58.50 (see page 148 for
further details), and will be reduced in
proportion to dividends paid over the
exercise period.
Cap
– Limits the amount of total
remuneration that can be paid
each year.
– Annual total remuneration caps of
£8 million for the CEO and £3.25
million for the CFO.
Shareholding requirement
– Enhanced to further align Executive
Directors with shareholder value per
the Shared value priority.
– Shareholding requirements of
1,000% of salary, to be achieved
within a 10-year period.
– An interim requirement equal to
400% of salary to be achieved
within 5 years.
– Post-cessation shareholding
requirement of 100% of actual
shareholding (or requirement if
lower) for 2 years post-cessation.
Directors’ remuneration report continued
Compliance with the 2018 UK Corporate Governance Code
Key remuneration element of the 2018 UK
Corporate Governance Code
Alignment with our Remuneration Policy
Five-year period between the date
of grant and realisation for equity
incentives
The RSP has a combined vesting and holding period of 5 years and the
LTOP has a vesting period of between 4 and 8 years, with a minimum
holding period from 5 years from grant.
Phased release of equity awards
The RSP ensures the phased release of equity awards through annual
rolling vesting.
Discretion to override formulaic
outcomes
The Remuneration Policy contains the ability to override formulaic
outcomes and apply discretion where deemed necessary.
Post-cessation shareholding
requirement
The Executive Directors are required to comply with a 2-year post-
cessation shareholding requirement.
Pension alignment
The pension entitlement for Executive Directors, of 6% of salary, is in
line with the eligibility for the majority of the wider workforce.
Extended malus and clawback
The current malus and clawback provisions already exceed the best
practice suggested in relation to the Code.
Long-Term
Option Plan
(LTOP)
Vesting period
Released
awards
Released
awards
Released
awards
Released
awards2
Released
awards2
Released
awards
Released
awards
Released
awards2
1 year
holding period
Vested
awards
Vested
awards
Vested
awards
Vested
awards1
Vesting period
Vesting period
Vesting period
Vesting period
Vesting period
Vesting period
Vesting period
Restricted
Share Plan
(RSP)
September
2023
2024
2025
2026
2027
2028
2029
2030
Notes:
1. Vesting February 2027.
2. Released February 2028.
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Service contracts
Details of the service contracts or letters of appointment of the Directors in office at year-end are as follows:
Date of contract/letter
of appointment
Expiry date
Notice period
by Company or
Director
Executive Directors
R C Perrins
15 July 2002
Rolling service contract with no fixed expiry date
12 months
R J Stearn
3 October 2014
Rolling service contract with no fixed expiry date
12 months
Non-Executive Directors
M Dobson
8 June 2022
Renewal annually on 1 May
n/a
R Downey
8 December 2017
Renewal annually on 1 May
n/a
E Adekunle
5 January 2021
Renewal annually on 1 May
n/a
W Jackson
5 January 2021
Renewal annually on 1 May
n/a
S Sands
30 April 2021
Renewal annually on 1 May
n/a
A Kemp
1 July 2021
Renewal annually on 1 May
n/a
N Adams
1 February 2022
Renewal annually on 1 May
n/a
All service contracts and letters of appointments are available for viewing at the Company’s registered office.
The Company’s practice is to appoint the Non-Executive Directors under letters of appointment, which are
renewable annually on 1 May. They are subject to the provisions of the Articles of Association dealing with
appointment and rotation every three years, however, in accordance with the UK Corporate Governance code all
Directors are subject to annual re-election.
When setting notice periods for Executive Directors, the Committee has regard to market practice and corporate
governance best practice. Notice periods will not be greater than 12 months.
Directors’ remuneration report continued
Fairness, diversity and wider workforce considerations
Our employees are our strongest resource; it is important that we attract, develop and retain talented teams
at every level. Each operating company runs personal and professional development programmes and ensures
individuals receive the support and training that they need. In the section titled ‘Our Vision 2030 progress’, on
pages 50 to 53, we set out how we are working towards creating a positive working environment for our people;
one that fosters respect, support, wellbeing, safety and inclusivity.
The Committee seeks to ensure that pay is fair throughout the Company and makes decisions in relation to the
structure of Executive pay in the context of the cascade of pay structures throughout the business.
Remuneration across the Company
The Committee carried out a review of key remuneration elements, policies and processes during the 2023/24
financial year, in order to ensure that wider workforce pay and policies were designed to support the Company’s
desired culture and values.
– A process was adopted whereby the Committee receives a report periodically from the Company setting out
key details of remuneration throughout the Company. Clearly the levels of remuneration and the types offered
will vary across the Company depending on the employee’s level of seniority and role and also the employee’s
location. The Committee is not looking for a homogeneous approach; however, when conducting its review, it is
paying particular attention to:
– Whether the element of remuneration is consistent with the Company’s Remuneration Principles;
– If there are differences, are they objectively justifiable; and
– Whether the approach seems fair and equitable in the context of other employees.
Once the Committee has conducted its review of the wider workforce remuneration and incentives it considers
the approach applied to the remuneration of the Executive Directors and Senior Management. In particular, the
Committee is focused on whether, within the framework set out above, the approach to the remuneration of the
Executive Directors and Senior Management is consistent with that applied to the wider workforce.
The following table sets out a summary of the information received by the Committee.
Element of remuneration
Key areas reviewed and summary of findings
Base salary
We set salaries to ensure that we remain competitive in the market and that levels are
appropriate considering roles and responsibilities of individuals. We have also committed
to ensuring that all our employees receive at least the voluntary Living Wage as set by the
Living Wage Foundation.
Pension
We provide either a contribution to a pension arrangement or a payment in lieu of
pension. The maximum pension contribution for the wider workforce is 15% of salary; the
average is 6%, the level to which pension contributions for the Executive Directors have
been aligned since 31 December 2022.
Benefit
We offer a range of benefits to our employees, including medical insurance.
Bonus
Each business operates a bonus scheme for its employees. For senior employees (other
than Executive Directors) elements of the bonus plan are linked to the performance of
the relevant Division and are deferred to ensure performance over the long-term and to
provide lock-in.
Executive Directors are not eligible for annual bonuses.
LTOP
A number of senior individuals participate in the LTOP, on largely similar terms to those
for the Executive Directors.
Medium-term incentives
In addition, medium-term incentive schemes are in place for all levels of staff below
Executive Director level.
In conducting the review process for wider workforce remuneration for the coming financial year, and recognising
the ongoing cost of living pressures, the Company focused reviews on lower salary levels and young talent, and
exhibited restraint at higher salary levels.
Employment at Berkeley
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The Committee is satisfied that:
– All employees are treated consistently and that the context and knowledge shared with the Committee is
a useful underpin to ensure that the Committee’s future decision making around Executives’ and Senior
Management’s pay supports fair and equal remuneration;
– Salary increases for employees across the Company are being applied on an equitable basis, and that average
employee increases are considered when setting pay increases for both the Executive Directors and Non-
Executive Directors;
– Our levels of variable pay continue to be linked to the achievement of stretching performance targets and a
strong governance framework, and all employees have the ability to share in the success of the Company. The
incentive approach applied to the Executive Directors aligns with the wider Company policy on incentives,
which is to have a higher percentage of at risk performance pay the more senior the employee and to increase
the amount of incentive deferred, provided in equity and/or measured over the longer term the more senior the
employee; and
– Overall the wider workforce pay policies and practices for all employees are in line with the remuneration
principles, and the approach to Executive remuneration aligns with wider Company pay policy and that there are
no anomalies specific to the Executive Directors.
Gender pay gap reporting
The median pay gap for Berkeley is 32.7%. Like much of our industry, this is primarily driven by the composition of our
workforce, with a lower proportion of women in senior, higher paid roles, and more women occupying junior, lower paid
roles, alongside Berkeley’s strategy for procurement whereby construction labour is procured through subcontractor
packages and not directly employed. The composition of our workforce also impacts our bonus gap, with our senior
executives participating in the Company’s Long-term Incentive Plans.
How we are improving diversity, fairness and equality across our organisation
Berkeley is committed to paying for performance equally and fairly, and rewarding and retaining our best people.
We are already taking steps to increase the proportion of women within Berkeley as a whole, recognising the
desire in the Group to promote from within and therefore providing increased opportunities for career progression
within the organisation and to more senior roles over the long-term.
Central to this is to create a positive working environment for our people; one that fosters respect, support,
wellbeing, safety and inclusivity. Our Vision 2030, Berkeley’s long-term strategy, contains two strategic priorities
focused on our workforce, ‘Employee Experience’ and ‘Future Skills’.
Employee experience
This places a specific focus on several areas, including employee experience and diversity and inclusion. We are
focusing on a range of actions across the business to help drive change; setting the tone from the top with strong
leadership; working in partnership with external organisations; training all of our people in equity, diversity and
inclusion; enhancing networking opportunities; raising awareness to all through communication on key topics and
employing best practice recruitment practices.
There is a historic under-representation of women in our industry and we believe there are real benefits in ensuring
diverse views, skills and perspectives which can lead to creative thinking and more effective problem solving. We
are committed to creating an engaged and inclusive environment by developing guiding principles and seeking to
attract and retain a diverse workforce.
Over the past year we have continued to develop our approach to Equity, Diversity and Inclusion for everyone
working in the Berkeley Group.
Over the past five years we have introduced enhanced maternity and paternity policies, with the view of attracting and
retaining more women, and also a more agile approach to working compared to traditional construction roles to attract
and retain a more diverse pool of talent.
In addition to these initiatives, as a business we understand the importance of recruiting responsibly to help with
the progression of women within the business. We understand the importance emerging talent schemes such as
apprentice and graduate programmes have in attracting women into the industry, as evidenced by almost 50%
of our women that currently work in construction at Berkeley Group having entered the business through one of
these structured schemes.
Directors’ remuneration report continued
Recruiting females into the business is a key step to addressing the gap but to strengthen the output we have also
committed to increasing the level of women in management positions to 33% by 2026 to be more representative
of our overall workforce. To help achieve this we have implemented mentoring programmes that focus specifically
on the progression of women in production roles. This year we have ten women enrolled in the Mentoring Circle
programme.
The health and wellbeing of our employees is also at the core of our values. All employees receive a suite of health
and wellbeing benefits and those that have been in the business for two years are eligible for a free comprehensive
health check that includes tests specific to female health such as breast cancer screening.
Throughout the individual operating companies local initiatives have been implemented to continue to improve
the personal and professional development of women within the business. Included in this is the establishment of
Employee Resource Networks (ERNs). Two of these groups are focused on addressing gender equality: Parents
and Carers, and Women and Allies.
These networks have evolved to include activities such as large-scale events bringing women together, the
implementation of training and development specifically focused on areas such as imposter syndrome and public
speaking, and improving resources and materials such as women returning to work from Maternity Leave.
We have held several events throughout the year to encourage networking and further conversation around how
women thrive at work, including our biggest event to date celebrating International Women’s Day. For this we
brought together 250 people across the business with the overarching aim of discussing the importance of allyship
and how we can strengthen and empower allies within the business.
Future skills
This focuses on looking at how we can create tangible long-term change within the industry and inspire a broad
range of people to join the built environment sector. This will naturally take a period of time but we are investing
for the long term.
Our apprenticeship scheme continues to target a balanced intake each year, aiming to identify the next generation
of leaders within the organisation, and in 2024 we saw 32% of positions filled by female candidates; a number of
these in job roles traditionally filled by males in our industry.
In line with our continued work with local communities we have completed a number of engagements with young
people in schools, some of which have been designed to specifically promote careers in the built environment to
young women and girls.
We have a number of affiliations with companies that promote women to work in the built environment. We have
enhanced a long-standing relationship with Women into Construction by becoming a Platinum Member and are a
founding partner for the Mayor’s Fund for London Firm Foundations diversity pledge.
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How the Remuneration Policy
was operated in 2023/24 and
how it will be operated in 2024/25
Element and key features of current
Remuneration Policy
How the Remuneration Policy was
implemented in 2023/24
How we plan to implement the Remuneration
Policy in 2024/25
Base salary
Set on appointment and reviewed
annually (effective from 1 May each
year) or when there is a change in
position or responsibility.
Determined taking into account
a number of external and
internal factors.
The salaries for 2023/24 are set out
below:
£’000s
%
Increase
R C Perrins
597.0
–
R J Stearn
405.0
–
K Whiteman
389.0
–
J Tibaldi
389.0
–
P Vallone
389.0
–
No changes were made to the
Executive Director salaries in 2023/24.
The salary increases awarded to
employees throughout the Group
were on average 3.8%.
Base salary levels for 2024/25 will be
as follows:
£’000s
%
Increase
R C Perrins
597.0
–
R J Stearn
405.0
–
In reviewing the salaries of the
Executive Directors for 2024/25,
the Committee took account of the
employment conditions and salary
increases awarded to employees
throughout the Group, which were on
average 3.7%.
Benefits
Benefits include a fully expensed
car or car allowance alternative, and
medical insurance.
Additional benefits may be offered
such as relocation allowances
on recruitment.
Normal Company benefit provision.
Normal Company benefit provision.
Pension
The Company provides either
a contribution to a pension
arrangement or a payment in lieu
of pension.
The pension contributions for
2023/24 were as follows:
% salary
R C Perrins
6%
R J Stearn
6%
K Whiteman
6%
J Tibaldi
6%
P Vallone
6%
Executive Director pension
contributions are aligned with the
wider workforce.
The pension contributions for
2024/25 will be as follows:
% salary
R C Perrins
6%
R J Stearn
6%
Executive Director pension
contributions are aligned with the
wider workforce.
LTIP
No new grants to be made under this
legacy plan.
The eighth vesting of options
under the 2011 LTIP occurred on 30
September 2023.
The ninth vesting of options under
the 2011 LTIP is due on 30 September
2024.
Directors’ remuneration report continued
Element and key features of current
Remuneration Policy
How the Remuneration Policy was
implemented in 2023/24
How we plan to implement the Remuneration
Policy in 2024/25
LTOP
A one-off grant of options, with
vesting in five equal tranches between
September 2026 and September
2030 (i.e. between 4 years and 8
years from grant), with holding
restriction until at least 5 years
from grant.
Exercise price operates as a ratchet
mechanism whereby price increases
by £2.50 per year for awards vesting
from September 2027 onwards.
N/A – one-off award was made in
2022/23, so no further awards will be
made to incumbent directors.
N/A – no further awards will be made
to incumbent Executive Directors.
RSP
Annual grant of restricted share
awards with vesting after 4 years
subject to underpin conditions, and
with a further 1 year holding period.
Annual grant of nil-cost options made
during 2023/24.
175% of salary per annum for the
Chief Executive Officer and 150% of
salary per annum for other Executive
Directors.
The vesting of awards is subject to
two underpin conditions:
1. In order for any of the award to
vest, the average Return on Equity
over the prior four years must be at
least 15%
2. Up to 20% of the award will
be forfeited in the event of
unsatisfactory progress against
strategic and ESG priorities over
the vesting period.
Malus and clawback provisions apply.
The Remuneration Policy allows
annual awards to be granted under
the RSP. The Committee and
Executive Directors are mindful of the
significant stretch now represented
by the 15% ROE underpin, which is
materially more challenging in the
current operating environment for the
sector than was envisaged at the time
of embedding this level of underpin in
the current Policy approved at the 6
September 2022 AGM.
Total Remuneration Cap
Individual caps will limit the amount
of total remuneration that can be paid
in respect of the financial year.
The Total Remuneration Cap for the
Executive Directors are set out below:
Total
Remuneration
Cap p.a. (£)
R C Perrins
8,000,000
R J Stearn
3,250,000
K Whiteman
3,250,000
J Tibaldi
2,400,000
P Vallone
2,400,000
The Total Remuneration Caps remain
unchanged.
Total
Remuneration
Cap p.a. (£)
R C Perrins
8,000,000
R J Stearn
3,250,000
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Element and key features of current
Remuneration Policy
How the Remuneration Policy was
implemented in 2023/24
How we plan to implement the Remuneration
Policy in 2024/25
Minimum shareholding requirement
The Committee operates a system of
shareholding guidelines to encourage
long-term share ownership by the
Executive Directors.
Shareholding requirement of 1000%
of salary for all Executive Directors,
to be achieved within the later of
10 years from appointment and the
effective date of the Remuneration
Policy.
An interim requirement equal to
400% of salary should be achieved
within the later of 5 years from
appointment and the effective date of
the Remuneration Policy.
The minimum shareholding
requirement remains unchanged.
Post-cessation shareholding
requirement
To ensure that Executive Directors
continue to be aligned with the
shareholders’ interests post their
cessation of employment with
the Group.
For two years following the cessation
of employment, Executive Directors
are required to hold shares to the
value of the shareholding guideline
that applied at the cessation of their
employment; or, in cases where the
individual has not had sufficient
time to build up shares to meet
their guideline, the actual level of
shareholding at cessation.
The post-cessation shareholding
requirement remains unchanged.
NED fee policy
All Non-Executive Directors have
specific terms of engagement and
their remuneration is determined by
the Board within the limits set by the
Articles of Association.
Each Non-Executive Director receives
a fee which relates to membership of
the Board and additional fees are paid
for being Committee Chair.
A minimum shareholding requirement
applies for the Non-Executive
Directors equal to 100% of net fees.
This should be achieved within three
years of appointment.
Non-Executive Director fee levels
for 2023/24 were not increased, and
were as follows:
– Chair: £400k;
– SID fee: £88.5k;
– Basic fee: £72.5k;
– Additional fee for Chair of the
Committee: £13k.
The average employee rise in salaries
was 3.8%.
Non-Executive Director fee levels for
2024/25 are as follows:
– Chair: £400k;
– SID fee: £88.5k;
– Basic fee: £72.5k;
– Additional fee for Chair of the
Committee: £15k;
– Membership of Committee fee
(Audit and Remuneration): £5k.
Non-Executive Director fees are being
increased through the introduction
of a Committee membership fee to
better reflect the time commitment of
individual Directors.
The average employee rise in salaries
was 3.7%.
Directors’ remuneration report continued
Annual Report on remuneration
This section of the Remuneration Report contains details of how the Company’s Remuneration Policy, approved by
shareholders at the AGM on 6 September 2022, was implemented for Executive Directors during the financial year
that ended on 30 April 2024.
Single total figure of remuneration (Audited)
The table below sets out the single total figure of remuneration and breakdown for each Executive Director paid
in the 2023/24 financial year. The components of the single figure for 2023/24 are aligned with the calculation
of the individual elements of remuneration for the purposes of the Total Remuneration Cap, which was first
introduced as part of the Remuneration Policy approved by shareholders at the 2017 EGM, re-approved at the 2019
and 2022 AGMs.
Executive Director
£’000
Salary
2024
Pension
2024
Total Remuneration
Benefits4
Total fixed
2024
Total
variable
2024
Total
2024
LTIP1
Cap2
Actual3
R C Perrins
597
36
7,367
8,000
8,000
26
659
7,367
8,026
R J Stearn
405
24
2,405
3,250
2,834
24
453
2,405
2,858
K Whiteman5
139
8
2,578
3,250
2,725
7
154
2,578
2,732
J Tibaldi5
139
8
1,922
2,400
2,069
5
152
1,922
2,074
P Vallone5
139
8
1,922
2,400
2,069
5
152
1,922
2,074
Notes
1. This represents the eighth tranche of the 2011 LTIP that vested on 2 October 2023 at a share price of £41.03 subject to the operation of
the Total Remuneration Cap (see table on page 147 for details). Where the LTIP value would have been greater without the Cap, it is the
capped amount which is payable and therefore disclosed in the single figure of remuneration. The capped amount is equivalent to the
Total Remuneration Cap less salary less pensions.
2. The Total Remuneration Cap limits the amount of total remuneration that has been earned over the financial year and is capable of
being paid out.
3. The Total Remuneration Cap operated for the 2023/24 financial year and where the remuneration would have been greater without the
Cap, it is the capped amount which is payable and therefore disclosed in the single figure of remuneration.
4. Benefits, which are not included in calculating the Remuneration Cap, include a fully expensed company car or cash allowance
alternative and medical insurance.
5. K Whiteman, J Tibaldi and P Vallone stepped down from the Board on 8 September 2023 and remuneration amounts disclosed in the
table is to the date of stepping down from the Board.
Comparative figures for 2022/23, as disclosed in last year’s Directors’ Remuneration Report, are set out in the
table below.
Executive Director £’000
Salary
2023
Pension
2023
Total Remuneration
Benefits4
Total fixed
2023
Total
variable
2023
Total
2023
LTIP1
Cap2
Actual3
R C Perrins
597
80
7,323
8,000
8,000
43
720
7,323
8,043
R J Stearn
405
49
1,782
3,250
2,236
23
477
1,782
2,259
K Whiteman
389
47
1,976
3,250
2,412
27
463
1,976
2,439
J Tibaldi
389
47
1,639
2,400
2,075
14
450
1,639
2,089
P Vallone
389
47
1,639
2,400
2,075
14
450
1,639
2,089
Notes
1. This represents the seventh tranche of the 2011 LTIP that vested on 30 September 2022 at a share price of £31.79 subject to the
operation of the Total Remuneration Cap. Where the LTIP value would have been greater without the Cap, it is the capped amount
which is payable and therefore disclosed in the single figure of remuneration. The capped amount is equivalent to the Total
Remuneration Cap less salary less pensions.
2. The Total Remuneration Cap limits the amount of total remuneration that has been earned over the financial year and is capable of
being paid out.
3. The Total Remuneration Cap operated for the 2022/23 financial year and where the remuneration would have been greater without the
Cap, it is the capped amount which is payable and therefore disclosed in the single figure of remuneration.
4. Benefits, which are not included in calculating the Remuneration Cap, include a fully expensed company car or cash allowance
alternative and medical insurance.
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Long-term incentives (Audited)
Vesting of the eighth tranche of the 2011 LTIP
The eighth tranche of the LTIP was the fourth to be subject to the enhanced performance conditions set out
on pages 112 and 113 of the 2020 Report and Accounts. The following table sets these out split between Return
Targets and Financial Targets:
Return Targets
No element of the 2011 LTIP can vest unless the cumulative returns target has been met through
the delivery of the targeted returns during the financial year.
Performance Condition
Detail
Actual Performance
Cumulative Return
Target returns in respect of the 12 months to 30
September 2023: £282.7 million.
Cumulative return target since 2011:
£1,961.8 million.
Actual returns made in respect of the 12 months
to 30 September 2023: £282.7 million.
Actual cumulative return since 2011:
£1,961.8 million.
Vesting
50% of the 2011 LTIP tranche will be capable
of vesting at the 2023 vesting date and will
vest on the satisfaction of the Cumulative
Return performance condition. Where this
performance condition is not met 100% of the
relevant tranche due to vest at 30 September
2023 will lapse.
This element of the award vested in full on
September 2023.
Financial Targets
Provided the Cumulative Return performance condition has been satisfied 50% of this tranche
under the 2011 LTIP is subject to the satisfaction of the following additional performance
conditions.
Performance Condition
Detail
Actual Performance
Cumulative ROE
30% of the tranche is subject to achieving a
cumulative pre-tax Return on Equity (ROE) of a
minimum of 15% (to be calculated commencing
1 May 2019).
Actual cumulative ROE 17.3%.
Full vesting of the 30% of the tranche subject
to this performance condition.
Cumulative Profit
before Tax
20% of the tranche is subject the cumulative
Profit before Tax; to achieve the target in any
one year:
1. The Company needs to deliver Profit before
Tax of at least £500 million; or
2. The Company must be on track to deliver a
cumulative Profit before Tax of £3 billion in
the six years ending 30 April 2025.
The Company delivered a Profit before Tax
of £604.0 million for the year ended 30 April
2023.
Full vesting of the 20% of the tranche subject
to this performance condition.
Vesting of the 2011 LTIP Tranche on
30 September 2023
100%
As detailed on page 128 of the 2021 Report and Accounts, the tranches of the 2011 LTIP which vest from 2021
onwards are subject to additional performance conditions based on the individual performance of the Executive
Directors. The Committee assessed the individual contribution of the Executive Directors and determined that no
adjustment to the formulaic outcome, as detailed in the table above, was appropriate.
Directors’ remuneration report continued
The eighth tranche of the 2011 LTIP award vested in the year as follows. The number of options released from the
Plan is limited to ensure the value of the Total Remuneration Cap for each individual is not exceeded:
Cumulative
Banked
options at
30/9/221
Net Total
Remuneration
Cap after
fixed pay2
Options
in each
annual
tranche for
2022 to
20253
Maximum
number
of banked
options
capable of
vesting4
Actual
number
of options
capable of
vesting5
Performance
measure and
outcome
Number
of options
vested after
performance
test
Value of
gain on
options
vested6
Cumulative
Banked
options
c/f7
R C Perrins
2,087,127
7,367,180
590,904
206,207
206,207
See
above for
performance
measures.
Vesting
outcome –
100%
206,207
7,367,157 1,880,920
R J Stearn
201,909
2,820,700
67,303
78,951
67,303
67,303 2,404,534
134,606
K Whiteman9
223,787
2,837,660
74,596
79,426
74,596
74,596
2,665,091
149,191
J Tibaldi9
185,637
1,987,660
61,879
55,634
55,634
55,634
1,987,636
130,003
P M Vallone9
185,637
1,987,660
61,879
55,634
55,634
55,634
1,987,636
130,003
Notes
1. This is the brought forward banked shares after the vesting on 30 September 2022.
2. The LTIP Cap continues to limit the LTIP vesting at each vesting date. The LTIP Cap operated for the 2023/24 financial year and where
the LTIP value would have been greater without the Cap based on the cumulative banked options vesting in four equal tranches, it is
the capped amount which is payable and therefore disclosed in the single figure of remuneration.
3. The banked options at 30 September 2021 vest in four equal tranches from September 2022 to September 2025, subject to the
application of the LTIP cap at each vesting.
4. This is the maximum number of options that could have vested up to the LTIP cap.
5. This is the maximum number of options that vested, being the lesser of (3) and (4)
6. This is the value of the options that vested, calculated using the opening share price of £41.03 on 2 October 2023 (the date the options
vested and became exercisable) less the exercise price of £5.30 per share.
7. These are the banked options carried forward to next year.
8. Each Executive Director exercised all the options that vested on 30 September 2023. Under the rules of the Plan, after the sale of
shares to pay tax, only 10% of shares are permitted to be sold each year until 30 September 2025 at which point the sale restriction falls
away.
9. K Whiteman, J Tibaldi and P Vallone stepped down from the Board prior to the vesting of the eighth tranche of the 2011 LTIP. The value
disclosed in the single total figure of remuneration table reflects the pro-rata value at 8 September 2023, the date of stepping down.
The Committee did not adjust the level of option vesting as a result of share price growth over the performance
period. It is an inherent feature of the 2011 LTIP that management and shareholders’ interests are aligned based
on Total Shareholder Returns (including share price growth) over the performance period. The Committee
did not exercise any other discretion in relation to the level of the option vesting other than to apply the Total
Remuneration Cap.
Restricted Share Plan awards granted in the year
Restricted Share Plan (RSP) awards were granted to the Executive Directors on 20 September 2023, as per the
table below.
Executive Director
Type of award
Number of
awards granted
Award as % of
salary
Aggregate
market value1
Vesting date
R C Perrins
Nil-cost option
25,378
175%
£1,044,728
20 September 2027
R J Stearn
14,756
150%
£607,455
1. Based on the average closing share price of £41.17 over the three days prior to grant.
The Awards entitle Executive Directors to acquire shares up to the maximum number set out above, subject to
continued employment and two underpins being:
– the Company’s average return on equity over the four financial years commencing with the financial year ending
30 April 2024 being at least 15% on an annualised basis; and,
– an additional discretionary underpin pursuant to which the Remuneration Committee of the Company may
reduce the level of vesting by up to 20% to reflect what it considers to be unsatisfactory progress over the
performance period against the strategic and ESG priorities set out in Our Vision 2030.
The Awards are also subject to a holding period ending on 20 September 2028.
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Long-Term Option Plan awards
Awards were granted to Executive Directors under the Long-Term Option Plan (LTOP) to the Executive Directors in
the previous financial year, on 9 February 2023. The awards vest in five equal tranches commencing on
30 September 2026, as summarised below.
Executive Director
Type of
award
Number
of awards
granted
Aggregate market
value1
Exercise price on
grant
Vesting dates (awards vest in
equal tranches)
R C Perrins
Option
1,000,000
£42.81m
Tranche 1:
£48.50
Tranche 1:
30 September 2026
R J Stearn
350,000
£14.98m
Tranche 2:
£51.00
Tranche 2:
30 September 2027
K Whiteman2
350,000
£14.98m
Tranche 3:
£53.50
Tranche 3:
30 September 2028
J Tibaldi2
350,000
£14.98m
Tranche 4:
£56.00
Tranche 4:
30 September 2029
P Vallone2
350,000
£14.98m
Tranche 5:
£58.50
Tranche 5:
30 September 2030
Notes
1. Based on the average closing share price of £42.81 over the three days prior to grant.
2. K Whiteman, J Tibaldi and P Vallone stepped down from the Board on 8 September 2023, they remain employees of the Company and
retain their interests in the LTOP.
The exercise price operates as a ratchet mechanism whereby the exercise price increases by £2.50 per year for
awards vesting from September 2027 onwards, as indicated in the table above. Dividends or other distributions to
shareholders (other than in relation to share buy-backs) are deducted from the exercise price between grant and
exercise. Tranches 1 and 2 are subject to a holding period beginning on the vesting date and ending 9 February
2028.
Dilution
A maximum of approximately 19 million shares were approved by shareholders under the 2011 LTIP. The actual
number issued is significantly lower due to a combination of remuneration caps, the settlement of awards net of
both the option price and participants’ tax obligations and leavers.
To date, 4.4 million shares have been issued under the 2011 LTIP since 2016 and it is anticipated that, applying the
same principles, a maximum of approximately 0.4 million further shares will be awarded by the scheme’s final
vesting in September 2025; in total 4.6% of the Company’s current issued share capital over a ten year period.
The Company intends to manage the level of dilution arising from the LTOP awards by implementing net settling
for tax and the exercise price where appropriate.
Beyond September 2025, the total maximum dilution in respect of discretionary share plans over a 10 year period
is anticipated to fall to around 3% based on the operation of the new plans under the Directors’ Remuneration
Policy.
Directors’ remuneration report continued
Non-Executive Directors single figure table (Audited)
The table below sets out the single total figure of remuneration and breakdown for each Non-Executive Director.
Non-Executive Directors do not participate in any of the Company’s incentive arrangements nor do they receive
benefits.
Non-Executive Director
£’000
Basic fees
Additional fees1
Total fees
2024
2023
2024
2023
2024
2023
M Dobson2
400.0
359.5
–
–
400.0
359.5
J Armitt3
31.3
87.8
–
–
31.3
87.8
A Myers4
25.9
72.5
4.6
13.0
30.5
85.5
D Brightmore-Armour4
31.5
88.5
–
–
31.5
88.5
R Downey5
82.6
72.5
–
–
82.6
72.5
E Adekunle
72.5
72.5
–
–
72.5
72.5
W Jackson
72.5
72.5
–
–
72.5
72.5
S Sands
72.5
72.5
–
–
72.5
72.5
A Kemp6
72.5
72.5
13.0
13.0
85.5
85.5
N Adams7
72.5
72.5
8.2
–
80.7
72.5
Notes
1. Additional fees represent fees paid for the role of Committee Chair.
2. M Dobson was appointed to the Board on 8 June 2022 and to the role of Chair on 6 September 2022.
3. J Armitt stepped down from the Board on 8 September 2023; he received a base fee of £87,800 to reflect his experience and pre-
eminent standing in construction and infrastructure, and the value he added to the Board.
4. A Myers and D Brightmore-Armour stepped down from the Board on 8 September 2023.
5. R Downey was appointed to the role of Senior Independent Director on 8 September 2023.
6. A Kemp stepped down from the role of Remuneration Committee Chair on 8 September 2023, he was appointed to the role of Audit
Committee Chair on the same date.
7. N Adams was appointed to the role of Remuneration Committee Chair on 8 September 2023.
Payments to past Directors (Audited)
No payments to past Directors were made in the year.
Payments for Loss of Office (Audited)
Following the decision made by the Company to streamline the Board by reducing its size, to ensure compliance
with all aspects of Board composition under the UK Corporate Governance Code and Listing Rule 9.8.6R(9)(a) Karl
Whiteman, Justin Tibaldi and Paul Vallone stepped down from the Board on 8 September 2023. They remain in
their current operational roles and members of the Board of the Company’s immediate subsidiary. There were no
payments for loss of office and their outstanding 2011 LTIP, LTIP and RSP awards will vest at their normal vesting
date and subject to performance conditions and/or underpins as set out on pages 146 to 148 of this report.
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165–232 | Financial Statements
Beneficially
owned
shares1
Banked
LTIP
options2
LTOP
options3
RSP
awards4
Total
interests
held
Executive Directors
R C Perrins
1,357,534
1,880,920 1,000,000
49,785
4,288,239
R J Stearn
238,676
134,606
350,000
28,948
752,230
K Whiteman5
341,778
223,787
350,000
13,631
929,196
J Tibaldi5
95,168
185,637
350,000
13,631
644,436
P Vallone5
99,067
185,637
350,000
13,631
648,335
Non-Executive Directors
M Dobson
8,259
–
–
–
8,259
J Armitt5
6,363
–
–
–
6,363
A Myers5
2,770
–
–
–
2,770
D Brightmore-Armour5
923
–
–
–
923
R Downey
1,191
–
–
–
1,191
E Adekunle
1,108
–
–
–
1,108
W Jackson
30,000
–
–
–
30,000
S Sands
874
–
–
–
874
A Kemp
2,636
–
–
–
2,636
N Adams
1,947
–
–
–
1,947
Notes
1. Beneficial interests include shares held directly or indirectly by connected persons.
2. Banked LTIP options may vest subject to the achievement of performance conditions depending on the number of banked options held
by a participant and the share price of the Company.
3. LTOP options vest in equal tranches subject to continued service.
4. RSP awards vest after four years subject to satisfaction of underpin conditions and continued service.
5. The Director stepped down from the Board on 8 September 2023 and their share and option interests are shown as at that date.
Directors’ remuneration report continued
Directors’ shareholding and share interests (Audited)
The Company has a shareholding requirement for both Executive and Non-Executive Directors, linked to the base
salary or net fee they receive from the Company. Using the Company’s closing share price of £47.14 on 30 April
2024, compliance with the requirements was as follows:
Obligation1
(% of base salary)
Actual Share-holding
as a % of base salary
at 30 April 2024
Achievement at
30 April 2024
Executive Directors
R C Perrins
400%/1000%
10,719%
R J Stearn
400%/1000%
2,778%
K Whiteman2
400%/1000%
3,490%
J Tibaldi2
400%/1000%
972%
P Vallone2
400%/1000%
1,012%
Obligation3
(% NED base fee)
Actual Share-holding
as a % of base fee at
30 April 2024
Achievement at
30 April 2024
Non-Executive Directors
M Dobson
100%
177%
J Armitt4
100%
523%
A Myers4
100%
243%
D Brightmore-Armour4
100%
75%
R Downey
100%
120%
E Adekunle
100%
136%
W Jackson
100%
3,680%
S Sands
100%
107%
A Kemp
100%
274%
N Adams
100%
203%
Notes
1. A 1000% of salary requirement for all Executive Directors is to be achieved within the later of 10 years from appointment and the
effective date of the Remuneration Policy. An interim requirement equal to 400% of salary should be achieved within the later of
5 years from appointment and the effective date of the 2022 Remuneration Policy.
2. K Whiteman, J Tibaldi and P Vallone stepped down from the Board on 8 September 2023 and their shareholdings are shown as at that
date.
3. To be achieved within three years of appointment.
4. J Armitt, A Myers and D Brightmore-Armour ceased to be Directors on 8 September 2023 and their shareholdings are shown as at that date.
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165–232 | Financial Statements
350
Total Shareholder Return (Rebased)
Remuneration £’000
30,000
300
25,000
250
20,000
200
15,000
150
10,000
100
5,000
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20 2020/21
2021/22 2022/23 2023/24
50
0
0
Chief Executive Single Figure
Berkeley
FTSE 250 Index
FTSE 100 Index
FTSE All-Share Index
Comparison of Chief Executive total remuneration and Total Shareholder Return
against the market
The graph below shows the Company’s performance, measured by Total Shareholder Return (TSR), compared with
the performance of the FTSE 250, FTSE 100 and the FTSE All Share indices. The Company considers these the
most relevant indices for Total Shareholder Return disclosure required under the Regulations.
To give context to the total single figure levels of the Chief Executive we have also included the single figure
historical outcomes from the table below onto the chart to demonstrate the clear alignment between shareholder
returns and the Chief Executive’s single figure pay that results from the nature of the remuneration structure in
place.
Chief Executive pay in the last 10 years
The table below shows the remuneration of the Chief Executive for each of the financial years shown in the graph
above.
Single figure total
of remuneration
(£’000)
R C Perrins
Chief Executive
Annual bonus
payout1 (as a
% of maximum
opportunity)
Multi-year incentive
vesting awards (as
a % of maximum
opportunity)
2023/24
8,026
–
100%
2022/23
8,043
–
100%
2021/22
8,043
–
100%
2020/21
7,971
–
100%
2019/20
8,303
–
100%
2018/19
7,809
100%
100%
2017/18
7,806
100%
100%
2016/17
27,963
100%
100%
2015/16
10,993
100%
100%
2014/15
12,357
100%
100%
1. The Remuneration Policy has not incorporated an annual bonus since 2019/20
Percentage change in Directors’ remuneration
The following table compares Directors’ pay (including salary, taxable benefits and annual bonus) with the wider
employee population. The Company considers the full time employee population, excluding the Main Board, to be
an appropriate comparator group and the most stable point of comparison:
Director
Base salary/fees
Taxable benefits
Annual Bonus
2024
2023
2022
2021
2024
2023
2022
2021
2024
2023
2022
2021
Executive
Directors
R C Perrins
0%
3.0%
3.5%
0%
-40%
1%
64%
-37%
n/a
n/a
n/a
n/a
R J Stearn
0%
3.0%
3.5%
0%
4%
1%
1%
1%
n/a
n/a
n/a
n/a
K Whiteman1
0%
3.0%
3.5%
0%
-28%
-14%
32%
-2%
n/a
n/a
n/a
n/a
J Tibaldi1
0%
3.0%
3.5%
0%
1%
1%
1%
0%
n/a
n/a
n/a
n/a
P Vallone1
0%
3.0%
3.5%
0%
1%
0%
-1%
-23%
n/a
n/a
n/a
n/a
Non-Executive
Directors
M Dobson2
0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
J Armitt3
0%
3.0%
3.5%
0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
A Myers3
0%
3.1%
3.5%
0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
D Brightmore-
Armour3
0%
3.0%
3.5% Note 4
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
R Downey5
0%
3.1%
3.5%
0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
E Adekunle
0%
3.1%
3.5%
0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
W Jackson
0%
3.1%
3.5%
0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
S Sands
0%
3.1%
3.5%
0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
A Kemp
0%
3.1%
3.5%
0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
N Adams
0%
3.1%
3.5%
0%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Average percentage
increase for
employees6
3.8%
6.2%
5.3%
0.2%
0%
5%
4%
4%
-7%
2%
5%
7%
Notes
1. K Whiteman, J Tibaldi and P Vallone stepped down from the Board on 8 September 2023 and the figures are based on FTE.
2. M Dobson was appointed to the Board on 8 June 2022.
3. J Armitt, A Myers and D Brightmore-Armour stepped down from the Board on 8 September 2023 and the figures are based on FTE
fees.
4. On appointment as Senior Independent Director on 23 July 2020 D Brightmore-Armour’s fee increased from £68k to £83k per annum.
5. On appointment as Senior Independent Director on 8 September 2023 R Downey’s fee increased from £72.5k to £88.5k per annum.
6. The listed Parent Company does not employ any staff. The data in respect of employees is therefore in relation to the whole Group
(excluding the Main Board).
The Committee considers the year-on-year change in salary between the Chief Executive and the employees as a
clear indication that there is not a divergence in the rate of fixed pay.
Directors’ remuneration report continued
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Pay comparisons
The following table provides the ratio of the Chief Executive to that of the median, 25th and 75th percentile total
remuneration of full time equivalent UK employees.
Year
Method1
25th percentile
pay ratio
Median
pay ratio
75th percentile
pay ratio
2023/24
Option B
176:1
111:1
77:1
2022/23
Option B
189:1
123:1
77:1
2021/22
Option B
200:1
109:1
85:1
2020/21
Option B
189:1
119:1
85:1
2019/20
Option B
189:1
125:1
84:1
Notes
1. CEO pay ratio is determined by reference to representative employee data as at the financial year end
The median pay ratio for 2023/24 is 111:1. The Company considers that the median pay ratio for 2023/24 is
consistent with the pay, reward and progression policies for the Company’s UK employees as a whole.
The Committee determined that it would be appropriate to use Option B of The Companies (Miscellaneous
Reporting) Regulations 2018, where the latest available gender pay gap data (i.e. from April 2024) was used to
identify the best equivalent for three Group UK employees whose hourly rates of pay were at the 25th, 50th and
75th percentiles for the Group. A full time equivalent total pay and benefits figure for the relevant financial year
was then calculated for each of those employees. No adjustments (other than the approximate up-rating of pay
elements to achieve full time equivalent rates) were made and no components of pay have been omitted. We
believe this provides a clear and robust methodology to facilitate year-on-year reporting whilst remaining simple
and providing a reasonable estimate for employee pay at these levels.
The Committee is satisfied that the individuals identified within each relevant percentile appropriately reflects the
employee pay profiles at those quartiles, and each was remunerated in line with Berkeley’s remuneration policies.
A small number of employees at either side of the quartile points identified from the gender pay gap data were
also considered, together with their corresponding full time equivalent total pay and benefits figures to ensure that
the employees identified at each of the three percentile points are reasonably representative of each quartile.
The table below sets out the salary and total pay and benefits for the representative employees.
25th percentile
Median
75th percentile
Salary
42,000
59,000
81,000
Total pay and benefits
45,593
71,972
104,972
Shareholders expect the Chief Executive to have a significant proportion of his pay based on performance and
paid in shares. It is this element of his package which will provide any observed volatility in his remuneration when
comparing on a year-to-year basis to the wider employee population. The Committee is comfortable that the
underlying picture is not one of a greater divergence of the Chief Executive’s remuneration from employees, i.e.
excluding the volatility of long-term incentive arrangements, the relationship will be consistent. There is likely to be
significant volatility in this ratio year-on-year, and we believe that this is likely to be caused by the following factors:
– Our Chief Executive’s pay is made up of a higher proportion of incentive pay than that of our employees, in line
with the expectations of our shareholders. This introduces a higher degree of potential variability in his pay each
year, which will affect the ratio.
– The value of long-term incentives is disclosed in pay in the year it vests, which increases the Chief Executive’s
pay in that year, again impacting the ratio for that year.
– Long-term incentives are provided in shares, and therefore an increase in share price magnifies the impact of a
long-term incentive award vesting in a year, reflecting alignment with shareholder value.
– We recognise that the ratio is driven by the different structure of the pay of our Chief Executive versus that of
our employees, as well as the make-up of our workforce. This ratio varies between businesses even in the same
sector. What is important from our perspective is that this ratio is influenced only by the differences in structure,
and not by divergence in fixed pay between the Chief Executive and the wider workforce.
– Where the structure of remuneration is similar, as for the Executive Directors and the Chief Executive, the ratio
will be much more stable over time.
– None of the lower quartile, median and upper quartile employees identified this year is a participant in the LTIP. If
the value of the LTIP is excluded in the CEO pay ratio calculation, the ratios would be as follows:
–To employee at the 25th percentile – 14:1
–To employee at the 50th percentile – 9:1
–To employee at the 75th percentile – 6:1
Relative importance of spend on pay
The table below sets out the relative importance of spend on pay in the 2022/23 and 2023/24 financial years
compared with distributions to shareholders.
2023/24
£m
2022/23
£m
% change
Remuneration of Group employees (including Directors)
233
254
(8%)
Distributions to shareholders by way of dividends and share buy-backs
170
254
(33%)
The Remuneration Committee’s remit
The Committee remit includes responsibility for setting and managing the remuneration of Berkeley’s Senior
Management, in addition to Executive Directors. The Committee’s focus is on determining the remuneration policy
and practices to ensure that the incentives operated by the Company align with its culture and strategy.
The Committee also has oversight of wider workforce pay and policies and incentives, which enables it to ensure
that the approach to Executive remuneration is consistent with those for the workforce. The Committee is
provided with additional information from the Company in order to carry out these responsibilities.
Directors’ remuneration report continued
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Who supports the Committee?
In determining the Executive Directors’ remuneration for the year, the Committee consulted with the Chief
Executive, R C Perrins, and the Chief Financial Officer, R J Stearn. No Director played a part in any discussion about
their own remuneration. The Company Secretary attended each meeting as Secretary to the Committee.
During the year the Committee undertook a formal tender process, following which Ellason LLP were appointed as
the independent remuneration advisor to the Committee. Prior to that, PricewaterhouseCoopers LLP (PwC) was
the independent remuneration advisor to the Committee. PwC also provided Berkeley with tax advisory services
during the year.
The Committee reviewed the nature of the other services provided by PwC and was satisfied that no conflict of
interest existed in the provision of these services. Ellason and PwC are members of the Remuneration Consultants
Group and the voluntary code of conduct of that body is designed to ensure objective and independent advice
is given to remuneration committees. Fees of £47,535 were paid to Ellason during the year and £65,500 (2023:
£103,200) were paid to PwC in respect of advice to the Committee on Directors’ remuneration. The Committee is
comfortable that the members of the advisory teams who provide remuneration advice have no connections with
the Company or its Directors that may impair their independence.
Shareholder support
The results of the shareholder votes on the 2022 Remuneration Policy at the 2022 AGM and the 2023 Annual
Report on Remuneration at the 2023 AGM are set out below.
Votes For
Votes Against
2022 Remuneration Policy
60.3%
39.7%
2023 Annual Report on Remuneration
86.4%
13.6%
Directors’ remuneration report continued
Directors’ report
The Directors submit their
report together with the audited
Consolidated and Company
Financial Statements for the year
ended 30 April 2024.
For the purpose of Disclosure
Guidance and Transparency Rule
(DTR) 4.1.8R, the Directors’ Report
is also the Management Report for
the year ended 30 April 2024.
Certain information that is relevant
to this report, including information
required in accordance with the
Companies Act 2006, the Large
and Medium-sized Companies and
Groups (Accounts and Reports)
Regulations 2008 (as amended),
DTR 4.1.8R, DTR 7, Listing Rule (LR)
9.4.3R and LR 9.8R can be found
in the Strategic Report and the
Corporate Governance section of
this Annual Report, as detailed in
each case below, and is thereby
incorporated by reference into
this report.
The following information in respect
of LR 9.8.4R can be located in the
following sections:
Information
Section in
Annual Report
Pages
Capitalised
interest
Directors’
Report
159
Unaudited
financial
information
–
N/A
Long-term
incentive
schemes
Remuneration
Report
130–155
Waiver of
Directors’
emoluments
Remuneration
Report
130–155
Allotments
of equity
securities
–
N/A
Contracts of
significance
Directors’
Report
158
Controlling
shareholders
–
158
Dividend
waivers
Directors’
Report
158
The Corporate Governance section
on pages 104 to 156 forms
part of the Directors’ Report.
The Company’s statement of how
it has applied the Principles of
the Code and complied with the
relevant provisions of the Code is
set out on pages 105, 126 and 137
of this report.
A full review of the business, its
development, performance and
position at the year end, together
with information in respect of
important events and likely future
developments, as required by DTR
4.1.8R, is set out on pages 18 to
31 of the Strategic Report and is
incorporated into this report by
reference.
Financial risk management
and financial instruments
The Company has not used financial
instruments during the year under
review. Information in respect of the
principal financial and operating
risks and uncertainties relating
to the business, including the
Group’s financial risk management
objectives and policies and its
exposure to liquidity, foreign
currency, interest rate, price and
credit risks, is set out on pages 92
to 103 of the Strategic Report and
in note 2.23 of the Consolidated
Financial Statements, and is
incorporated into this report by
reference.
Dividends
An interim dividend of 59.3 pence
per share was paid to shareholders
on 8 September 2023 and a further
interim dividend of 33 pence per
share was paid on 20 March 2024.
Post Balance Sheet events
There are no post Balance Sheet
events that require disclosure.
Share capital
As at 30 April 2024, the Company
had 114,711,897 ordinary shares of
5.4141 pence each in issue (2023:
116,537,358 ordinary shares of 5.4141
pence each), which are fully paid.
During the year to 30 April 2024,
and in accordance with the
authority provided by shareholders
at the 2022 and 2023 AGMs, the
Company has purchased through
the market for cancellation 1,825,461
ordinary shares with a nominal
value of £98,832.28, which equated
to 1.70% of the called-up share
capital of the Company at the
beginning of the financial year,
excluding treasury shares. The
aggregate consideration paid for
these shares was £72.3 million.
As at 30 April 2024, the Company
held 8,784,264 shares in treasury.
These shares have no voting rights.
Authority will be sought from
shareholders at the forthcoming
AGM to renew the authority given
at the 2023 AGM for a further
year, permitting the Company to
purchase its own shares in the
market up to a limit of 10% of its
issued share capital.
The business of the Company shall
be managed by the Directors, who
may exercise all the powers of the
Company subject to the provisions
of the Company’s Articles of
Association (the ‘Articles’) and
statutes, and to such directions
as may be given by the Company
in general meeting by special
resolution, provided that no such
direction or alteration of the Articles
shall invalidate any prior act of the
Directors which would have been
valid if such direction or alteration
of the Articles had not been given.
Further details of Directors’ powers
are set out in the Articles.
At the Company’s 2023 AGM,
Directors were authorised to allot
shares or grant rights to subscribe
for, or convert, any security into
shares up to an aggregate nominal
amount of £1,921,375.55 and to
allot shares for a similar aggregate
nominal amount for the purposes of
a rights issue.
Directors’ indemnities
The Company maintains Directors’
and officers’ liability insurance
which provides appropriate cover
for legal action brought against
its Directors.
The Company’s practice has always
been to indemnify its Directors in
accordance with the Company’s
Articles and to the maximum
extent permitted by law. Qualifying
third-party indemnities, under
which the Company has agreed
to indemnify the Directors, were
in force during the financial year
and at the date of approval of the
Financial Statements, in accordance
with the Company’s Articles and to
the maximum extent permitted by
law, in respect of all costs, charges,
expenses, losses and liabilities
which they may incur in or about
the execution of their duties for the
Company, or any entity which is an
associated company (as defined
in Section 256 of the Companies
Act 2006), or as a result of duties
performed by the Directors on
behalf of the Company or any such
associated company.
Substantial shareholders
Number of
ordinary
shares held(i)
% of
voting
rights(i)
The latest notifications received by the
Company from shareholders in respect of
their interests, pursuant to DTR 5, as at
30 April 2024 are as follows:
First Eagle
Investment
Management
LLC
11,773,177
11.015
Egerton
Capital (UK)
LLP
5,278,198
4.97
Between 30 April 2024 and 18 June 2024,
the Company was notified of the following
change to substantial interests pursuant
to DTR 5.
First Eagle
Investment
Management
LLC
11,647,824
10.996
(i) The number of ordinary shares held
and percentage of voting rights is as
stated by the shareholder at the time
of notification.
Political donations
The Group did not make any
political donations or incur any
political expenditure (2023: £nil)
during the year.
Capitalised interest
No interest has been capitalised by
the Group (2023: £nil) during the
year under review.
Employee engagement
The Group’s policy of operating
through autonomous subsidiaries
has ensured close consultation with
employees on matters likely to affect
their interests. The Group is firmly
committed to the continuation and
strengthening of communication
lines with all its employees.
Further information is provided on
pages 50 and 61 of the Strategic
Report.
The Group has in place an Equality
and Diversity Policy Statement,
an Employee Policy and Equal
Opportunities Policy which aims
to ensure that all employees,
potential employees and other
individuals receive equal treatment
(including access to employment,
training, career development
and opportunity for promotion)
regardless of their age, disability,
gender reassignment, marriage or
civil partnership, pregnancy and
maternity, race, religion or belief
(including lack of belief), sex and
sexual orientation.
Stakeholder engagement
The Company recognises the
importance of good supplier,
customer and other relationships to
the overall success of the business
and manages dealings with
stakeholders in a fair, consistent and
transparent manner.
The Company’s s172(1) Statement
on page 58 of the Strategic Report
sets out further details of how the
Directors have:
• engaged with employees;
• had regard to employee interests
and the effect of that regard,
including on the principal
decisions taken by the Company
during the year; and
• had regard to the need to
foster the Company’s business
relationships with suppliers,
customers and others, and the
effect of that regard, including on
the principal decisions taken by
the Company during the year.
Sustainability
The Group is committed to being
a responsible and sustainable
business which thinks about the
long-term and creates positive
environmental, social and economic
impacts. These aspects are
considered in the Group’s approach
to managing its operational
activities and in the homes and
places it develops.
The Group has an integrated
strategy for the business: Our Vision
2030. Sustainability is a key element
of the Group’s strategy with a
number of targets directly relating
to material sustainability topics
such as climate change. Information
on Our Vision 2030 can be found
within the Strategic Report and on
the Group’s website.
The Directors have ultimate
responsibility for sustainability
within the Group. The Our
Vision 2030 and Sustainability
Board, which meets monthly
to set strategic direction and
review performance, consists of
the Chief Executive, the Chief
Financial Officer, the Executive
Committee member responsible
for sustainability, the Responsible
Business Executive and the Group
Head of Sustainability. Dedicated
operational practitioners work
throughout the business to ensure
that sustainability is incorporated
into daily activities. Group
Sustainability Standards cover our
activities, supported by detailed
procedures within a Sustainability
Management System.
Directors’ report continued
The Directors were further
authorised to disapply statutory
pre-emption rights in connection
with certain allotments of shares.
These authorities will apply until the
conclusion of the 2024 AGM and it
is proposed that shareholders will
be asked to authorise the Directors
to allot shares and disapply
statutory pre-emption rights at the
2024 AGM.
Movements in the Company’s share
capital are shown in note 2.18 to the
Consolidated Financial Statements.
All the Company’s issued share
capital is publicly listed on the
London Stock Exchange.
All shares have full rights in the
Company with respect to voting,
dividends and distributions,
except as explained above in
respect of treasury shares. Further
information in respect of the rights
and obligations attaching to the
ordinary shares are set out in the
Articles.
There are no specific restrictions on
the size of a shareholding or on the
transfer of shares, which are both
governed by the Articles and the
prevailing law. The Directors are not
aware of any agreements between
holders of the Company’s shares
that may result in restrictions
on the transfer of shares or on
voting rights.
No person has special rights of
control over the Company’s
share capital.
Information on the Group’s share
option schemes is set out in note
2.5 to the Consolidated Financial
Statements. Details of the Long-
Term Incentive Schemes and
Long-Term Incentive Plans for key
Executives are set out within the
Directors’ Remuneration Report
on pages 130 to 156.
Articles of Association
The Articles set out the basic
management and administrative
structure of the Company. They
regulate the internal affairs of the
Company and cover such matters
as the issue and transfer of shares,
Board and shareholder meetings,
powers and duties of Directors and
borrowing powers. In accordance
with the Articles, Directors can
be appointed or removed by
shareholders in a general meeting.
The Articles may only be amended
by special resolution at a general
meeting of shareholders. The
Articles are available on the
Company’s website (www.
Berkeleygroup.co.uk/investors/
corporate-governance). Copies are
available by writing to the Company
Secretary and are also open to
inspection at Companies House.
Directors
The Directors of the Company, their
profiles and details of their roles
and the Committees of which they
are members are detailed on pages
106 to 108 and are incorporated
into this report by reference. The
Directors served throughout the
year under review and up to the
date of this report. Non-Executive
Directors Diana Brightmore-
Armour, Andy Myers and Sir John
Armitt stepped down from the
Board and retired as Directors at
the conclusion of the 2023 AGM.
In addition, Executive Directors,
Justin Tibaldi, Paul Vallone and
Karl Whiteman stepped down from
the Board at the conclusion of the
2023 AGM.
The appointment and replacement
of Directors is governed by the
Company’s Articles, the Code,
the Companies Act 2006 and any
related legislation. The Company,
by ordinary resolution, or the
Directors may from time to time
appoint a Director to fill a casual
vacancy or as an additional Director.
Any Director so appointed shall
hold office only until the next AGM
and shall then be eligible
for reappointment.
The Articles require Directors to
submit themselves for re-election
every three years. In addition, all
Directors are subject to election
at the first opportunity after their
appointment to the Board.
However, in accordance with UK
Corporate Governance Code, each
of the Directors is subject to annual
re-election at the AGM and is being
unanimously recommended by all
the other members of the Board.
This recommendation follows the
completion of the annual Board
evaluation process, which was
facilitated internally this year.
Further information relating to the
evaluation is set out on page 123.
The interests of the Directors and
their connected persons in the
share capital of the Company and
its subsidiaries are set out on page
151. At 30 April 2024 each of the
Executive Directors was deemed to
have a non-beneficial interest
in 56,116 (2023: 103,506) ordinary
shares held by the Trustees of the
Berkeley Group Employee Benefit
Trust (EBT). The shares held in
the EBT rank pari passu with all
other shares in issue. However, the
Trustees of the EBT has waived
entitlement to dividends until
further notice and has agreed not to
vote on any shares held in the EBT
at any general meeting.
There were no contracts of
significance during, or at the end
of, the financial year in which a
Director of the Company is, or was,
materially interested, other than
those set out in note 2.25 to the
Consolidated Financial Statements,
the contracts of employment of
the Executive Directors, which
are terminable within one year,
and the appointment terms of the
Non-Executive Directors, which are
renewable annually and terminable
on one month’s notice.
158 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 159
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
Scope 1
Biodiesel HVO
12%
Vehicle Travel
5%
Natural Gas
3%
Diesel
1%
LPG
0%
Petrol
0%
Scope 2
Purchased Electricity – UK
76%
Purchased Heat
2%
Purchased Electricity
– Global exc UK
1%
Vehicle Travel
0%
On-site Generated
Renewable Electricity
0%
Development Site
76%
Divisional Office
10%
Sales Suite
9%
Vehicle Travel
5%
Location-based
Scope 1
12%
Scope 2
88%
Market-based
Scope 1
66%
Scope 2
34%
Directors’ report continued
Energy Consumption by Fuel Type
Energy Consumption by Activity Type
GHG Emissions by Scope
5,245
tCO2e
917
tCO2e
Scopes 1 and 2 greenhouse
gas emissions and energy
consumption
The Group has reported on
greenhouse gas (GHG) emissions
for which it is responsible and
energy use associated with these
GHG emissions, as required under
the Large and Medium-sized
Companies and Groups (Accounts
and Reports) Regulations 2008,
as amended by the Companies
Act 2006 (Strategic Report and
Directors’ Report) Regulations 2013
and the Companies (Directors’
Report) and Limited Liability
Partnerships (Energy and Carbon
Report) Regulations 2018.
The emissions and energy
consumption disclosed are aligned
to the Group’s financial reporting
year; are based on the operational
boundary of the Group covering
regional offices, sales suites,
development sites and business
vehicle travel; include 100% of
joint venture emissions for these
activities; and are considered
material to the business. They have
the following parameters:
• Scope 1 – direct emissions
from natural gas consumed for
office, sales and development
site activities; biodiesel HVO
(Hydrotreated Vegetable Oil),
diesel, petrol and liquefied
petroleum gas (LPG) purchased
directly for development site
activities; and travel (business
and other travel where expensed)
in Company owned and
Company leased vehicles utilising
conventional fuels as an energy
source. Fugitive emissions from
refrigerants are also included.
• Scope 2 – indirect emissions from
electricity and heat consumed for
office, sales and development site
activities; and travel (business and
other travel where expensed) in
Company owned and Company
leased vehicles utilising electricity
as an energy source. The Group
has reported both location-based
and market-based emissions
for scope 2, with the market-
based emissions taking into
account Berkeley’s purchase of
Renewable Energy Guarantees
of Origin (REGOs) to certify that
100% of UK electricity is from a
renewable source (i.e. solar, wind
or hydro power).
Emissions intensity ratios have
been calculated using the floor area
of legally completed homes and
commercial space during the year,
including our joint ventures.
The Group creates homes and
neighbourhoods across London,
Birmingham and the South of
England. As a result, the majority of
emissions and energy consumption
are UK-based. Global emissions
and energy consumption result
from electricity usage in eight
international offices.
In addition to the below reported
emissions, in 2024 biogenic CO2
(considered ‘outside of scopes’)
amounted to 2,818 tCO2.
UK Government Environmental
Reporting Guidelines 2019
have been used as the basis for
disclosures. UK Government GHG
Conversion Factors for Company
Reporting and International Energy
Agency conversion factors have
been used to convert raw data units
into GHG emissions and energy
consumption.
Unit
2024
2023
Total
UK
Global
(excluding
UK)
Total
UK
Global
(excluding
UK)
Scope 1 emissions
tCO2e
609 A
609
–
713
713
–
Scope 2 (location-based) emissions
tCO2e
4,636 A
4,425
211
4,510
4,352
158
Scope 2 (market-based) emissions
tCO2e
308 A
97
211
250
92
158
Scopes 1 and 2 (location-based)
emissions
tCO2e
5,245 A
5,034
211
5,223
5,065
158
Scopes 1 and 2 (location-based)
emissions intensity
tCO2e/
100sqm
1.71
–
–
1.46
–
–
Scopes 1 and 2 (market-based)
emissions
tCO2e
917 A
706
211
963
805
158
Scopes 1 and 2 (market-based)
emissions intensity
tCO2e/
100sqm
0.30
–
–
0.27
–
–
Energy consumption associated
with scope 1 emissions
MWh
5,665 A
5,665
–
7,572
7,572
–
Energy consumption associated
with scope 2 emissions
MWh
21,840 A
21,470
370
22,848
22,568
280
Energy consumption associated
with scopes 1 and 2 emissions
MWh
27,505 A
27,135
370
30,420
30,140
280
A 2024 information has been separately subject to limited assurance by KPMG LLP. Further details of the assurance provided in 2024,
including the independent assurance report and our methodology for reporting emissions, can be found at www.berkeleygroup.co.uk/
sustainabilitydisclosures
76% of energy
consumption
is a result of
construction
activities
88% of our energy
consumption is
from renewable
sources
160 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 161
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
The terms and conditions of
appointment for the Non‑Executive
Directors, which set out their
expected time commitment, in
addition to the service contracts
for the Executive Directors, are
available for inspection during
normal business hours at the
Company’s registered office.
Ordinarily, these are also available
for inspection at the AGM.
The Directors are responsible for
preparing the Annual Report and
the Group and Parent Company
Financial Statements in accordance
with applicable law and regulations.
Company law requires the Directors
to prepare Group and Parent
Company Financial Statements
for each financial year. Under that
law they are required to prepare
the Group Financial Statements
in accordance with UK-adopted
international accounting standards
and applicable law and have elected
to prepare the Parent Company
Financial Statements in accordance
with UK accounting standards and
applicable law, including FRS 101
Reduced Disclosure Framework.
Under company law the Directors
must not approve the Financial
Statements unless they are satisfied
that they give a true and fair
view of the state of affairs of the
Group and Parent Company and
of the Group’s profit or loss for
that period. In preparing each of
the Group and Parent Company
Financial Statements, the Directors
are required to:
• select suitable accounting policies
and then apply them consistently;
• make judgements and estimates
that are reasonable, relevant,
reliable and prudent;
• for the Group Financial
Statements, state whether
they have been prepared in
accordance with UK-adopted
international accounting
standards;
• for the Parent Company Financial
Statements, state whether
applicable UK accounting
standards have been followed,
subject to any material departures
disclosed and explained in
the Parent Company Financial
Statements;
• assess the Group and Parent
Company’s ability to continue
as a going concern, disclosing,
as applicable, matters related to
going concern; and
• use the going concern basis of
accounting unless they either
intend to liquidate the Group or
the Parent Company or to cease
operations, or have no realistic
alternative but to do so.
The Directors are responsible for
keeping adequate accounting
records that are sufficient to show
and explain the Parent Company’s
transactions and disclose with
reasonable accuracy at any time
the financial position of the Parent
Company and enable them to
ensure that its Financial Statements
comply with the Companies Act
2006. They are responsible for
such internal control as they
determine is necessary to enable
the preparation of Financial
Statements that are free from
material misstatement, whether due
to fraud or error, sand have general
responsibility for taking such steps
as are reasonably open to them to
safeguard the assets of the Group
and to prevent and detect fraud and
other irregularities.
Under applicable law and
regulations, the Directors are
also responsible for preparing a
Strategic Report, Directors’ Report,
Directors’ Remuneration Report and
Corporate Governance Statement
that complies with that law and
those regulations.
The Directors are responsible for
the maintenance and integrity
of the corporate and financial
information included on the
Company’s website. Legislation in
the UK governing the preparation
and dissemination of Financial
Statements may differ from
legislation in other jurisdictions.
In accordance with Disclosure
Guidance and Transparency Rule
("DTR") 4.1.16R, the financial
statements will form part of the
annual financial report prepared
under DTR 4.1.17R and 4.1.18R.
The auditor’s report on these
financial statements provides
no assurance over whether the
annual financial report has been
prepared in accordance with
those requirements.
Directors’ report continued
The Directors confirm that reported
GHG emissions and energy
consumption have been prepared
in accordance with the Group’s
established reporting criteria, are
free from material misstatement and
have been presented in a manner
that provides relevant, reliable,
comparable and understandable
information.
Further details on our methodology
for reporting emissions and energy
consumption can be found in
our established reporting criteria
available at www.berkeleygroup.
co.uk/sustainabilitydisclosures.
A range of actions have been
implemented in the year to
reduce energy consumption and
emissions. We have continued to
encourage the use of biodiesel
HVO (Hydrotreated Vegetable Oil);
in 2024, 96% of directly procured
diesel was biodiesel HVO. The use
of this alternative fuel has reduced
scope 1 emissions by 869 tCO2e in
the year compared to an equivalent
use of fossil diesel. Other initiatives
include the implementation of
an enhanced energy monitoring
system across a number of our sites,
enabling the use of consumption
alerts to review and address high
energy consuming activities in real-
time. The improved access to data
has also led to the trial of a revised
temporary electrics and transformer
set up at Green Park Village, with
the efficiency outcomes of this
shared across the Group for wider
application.
Further measures include the
recent installation of solar
photovoltaic (PV) panels for the
welfare facilities at Oval Village,
and the incorporation of a master
‘off’ switch for non-essential
equipment to address out of hours
consumption at the project office
of Leighwood Fields. The energy
audits completed in the year for
compliance with the Energy Savings
Opportunity Scheme (ESOS) have
already led to lighting and heating
changes, with further reductions
expected as the recommendations
are more widely integrated across
the business.
Significant agreements
Pursuant to the Companies Act
2006, the Company is required
to disclose whether there are any
significant agreements that take
effect, alter or terminate upon a
change of control.
Change of control provisions are
included as standard in many types
of commercial agreements, notably
bank facility agreements and joint
venture shareholder agreements,
for the protection of both parties.
Such standard terms are included in
Berkeley’s bank facility agreement
which contains provisions that give
the banks certain rights upon a
change of control of the Company.
In addition, the Company’s share
schemes contain provisions
which take effect upon change of
control. These do not entitle the
participants to a greater interest
in the shares of the Company than
that created by the initial grant of
the award. The Company does not
have any arrangements with any
Director or employee that provide
compensation for loss of office
or employment resulting from
a takeover.
Independent auditor and
disclosure of information
to auditor
Each of the persons who is a
Director at the date of approval of
this Annual Report confirms that:
• so far as the Director is aware,
there is no relevant audit
information of which the
Company’s auditor is unaware; and
• the Director has taken all the
steps that he/she ought to have
taken as a Director in order to
make himself/herself aware of any
relevant audit information and
to establish that the Company’s
auditor is aware of that
information.
This confirmation is given and
should be interpreted in accordance
with the provisions of Section 418 of
the Companies Act 2006.
Annual General Meeting
The Company’s AGM will take
place at 11.00 a.m. on 6 September
2024. Details of the AGM and
arrangements for engagement with
shareholders will be set out within
the Notice of Meeting.
In accordance with the FRC
Guidance on Board Effectiveness,
the Company arranges for the
Annual Report and Accounts and
related papers to be posted to
shareholders so as to allow at least
20 working days for consideration
prior to the AGM.
At the AGM, voting on all
resolutions will be by proxy voting
and the results of the AGM will be
announced to the Stock Exchange
shortly after the close of the
meeting. They will also be made
available on the Company’s website.
162 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 163
01–103 | Strategic Report
104–164 | Corporate Governance
165–232 | Financial Statements
Going concern
The Group’s business activities
together with the factors likely
to affect its future development
performance and position are set
out in the Strategic Report. The
financial position of the Group, its
cash flows, liquidity position and
borrowing facilities are all described
in the Trading and Financial Review
on pages 29 to 31.
The Directors have assessed the
business plan and future funding
requirements of the Group over
the medium-term and compared
these with the level of committed
loan facilities and existing cash
resources. As at 30 April 2024, the
Group has net cash of £532 million
and total liquidity of £1.7 billion
when this net cash is combined
with banking facilities of £800
million, (which expire in February
2029) and £400 million listed Green
Bonds (which mature in August
2031). Furthermore, the Group has
cash due on forward sales of £1,701
million, a significant amount of
which covers delivery for the next
18 months.
In making this assessment,
consideration has been given to
the uncertainty inherent in future
financial forecasts and where
applicable, reasonable sensitivities
have been applied to the key factors
affecting the financial performance
of the Group. The Directors have
a reasonable expectation that the
Group has adequate resources to
continue in operational existence
for not less than 12 months from the
date of these Financial Statements.
For this reason it continues to
adopt the going concern basis
of accounting in preparing its
Consolidated Financial Statements.
By order of the Board
Victoria Mee
Company Secretary
The Berkeley Group Holdings plc
Registered number: 5172586
19 June 2024
Directors’ report continued
Directors’ responsibility
statement
Each of the Directors confirms
that, to the best of each person’s
knowledge:
• the Consolidated Financial
Statements, prepared in
accordance with the applicable
set of accounting standards,
give a true and fair view of
the assets, liabilities, financial
position and profit or loss
of the Company and the
undertakings included in the
consolidation taken as a whole;
• the Company Financial
Statements, which have been
prepared in accordance with
United Kingdom Accounting
Standards, comprising FRS
101, give a true and fair view of
the assets, liabilities, financial
position and results of the
Company; and
• the Strategic Report,
together with the Directors’
Report, includes a fair review
of the development and
performance of the business
and the position of the Group,
together with a description
of the principal risks and
uncertainties that it faces,
including those that would
threaten its business model,
future performance, solvency
or liquidity.
For and on behalf of the Board
R Perrins
Chief Executive
R J Stearn
Chief Financial Officer
19 June 2024
KPMG LLP’S INDEPENDENT AUDITOR’S REPORT
To the members of The Berkeley Group Holdings plc
1. Our opinion is unmodified
In our opinion:
• the financial statements of The Berkeley Group Holdings plc give a true and fair view of the state of the Group’s
and Parent Company’s affairs as at 30 April 2024, and of the Group’s profit for the year then ended;
• the Group financial statements have been properly prepared in accordance with UK-adopted international
accounting standards;
• the Parent Company financial statements have been properly prepared in accordance with UK accounting
standards, including FRS 101 Reduced Disclosure Framework; and
• the Group and Parent Company financial statements have been prepared in accordance with the requirements of
the Companies Act 2006.
What our opinion covers
We have audited the Group and Parent Company financial statements of The Berkeley Group Holdings plc
(“the Company”) for the year ended 30 April 2024 (FY24) included in the Annual Report, which comprise:
Group
Parent Company (The Berkeley Group Holdings plc)
Consolidated Income Statement, Consolidated Statement
of Comprehensive Income, Consolidated Statement of
Financial position, Consolidated Statement of Changes
in Equity, Consolidated Cash Flow Statement and notes
1 to 2.26 to the Group financial statements, including the
accounting policies in notes 1 to 2.26.
Company Balance Sheet, Company Statement of Changes
in Equity and notes C1 to C2.9 to the Parent Company
financial statements, including the accounting policies in
notes C1 to C2.9.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable
law. Our responsibilities are described below. We believe that the audit evidence we have obtained is a sufficient
and appropriate basis for our opinion. Our audit opinion and matters included in this report are consistent with
those discussed and included in our reporting to the Audit Committee (“AC”).
We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with,
UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities.
2. Overview of our audit
Factors driving
our view of risks
Our risk assessment considers the Group’s operations, the
macro-economic and other relevant external factors which
impact the judgements and estimates made by the Group.
Having considered these external factors, we have identified
the same key audit matters as in the prior year.
Cost of sales is subject to estimation uncertainty as it is
dependent on the Group’s estimate of future sales prices
and land and build costs, including an allowance for risk.
Increase in market uncertainty during FY24 is considered
to have heightened the already high estimation uncertainty
associated with this key audit matter.
Post completion development provisions are estimated
based on historic experience of liabilities arising on
completed developments and have a high level of
estimation uncertainty, however this has not been
significantly impacted by the change in the macro-
economic environment during FY24.
Recoverability of investments in, and amounts due from
its indirect subsidiaries remains our biggest focus in the
audit of the parent Company, The Berkeley Group Holdings
plc, due to their materiality in the context of the parent
Company financial statements.
Key Audit Matters
Vs FY23
Item
Cost of sales
recognition
4.1
Post completion
development
provisions
4.2
Recoverability of
parent company’s
investments in, and
amounts due from its
indirect subsidiaries
4.3
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Profit
before tax
1%
1%
Total assets
Revenue
94%
93%
80%
5%
6%
20%
Group
GPM
HCM
PLC
LCM
AMPT
FY24 £m
FY23 £m
27
20.2
15
13.5
7
1.3
1.3
26
19.5
15
14.5
6
INDEPENDENT AUDITOR’S REPORT CONTINUED
Group scope
(Item 7 below)
We have performed risk assessment and planning
procedures to determine which of the Group’s components
are likely to include risks of material misstatement to the
Group financial statements, the type of procedures to
be performed at these components and the extent of
involvement required from our component auditors.
The Group operates in the UK across a number of
components. We scoped the audit by obtaining an
understanding of the Group, its environment and assessing
the risk of material misstatement at the Group and
component level.
We have considered components based on their
contribution to Group revenue, Group profit before tax and
Group total assets.
Of the Group’s 16 (FY23:16) reporting components, we
subjected seven (FY23: seven) to full scope audits for group
purposes and three (FY23: three) to specified risk-focused
audit procedures over cost of sales recognition and post
completion development provisions and one (FY23: one) to
specified risk-focused audit procedures over property, plant
and equipment (FY23: property, plant and equipment).
The components within the scope of our work accounted
for the percentages illustrated opposite.
In addition, we have performed Group level analysis on the
remaining components to determine whether further risks
of material misstatement exist in those components.
We consider the scope of our audit, as communicated to
the Audit Committee, to be an appropriate basis for our
audit opinion.
Full scope audits
Specified risk-focused audit procedures
Remaining components
Coverage of Group
financial statements
Audit committee
interaction
During the year, the AC met four times. KPMG was invited to attend all AC meetings and was
provided with an opportunity to meet with the AC in private sessions without the Executive
Directors being present. For each Key Audit Matter, we have set out communications with the AC
in section 4, including matters that required particular judgement for each.
The matters included in the Audit Committee Chair’s report on page 127 are materially consistent
with our observations of those meetings.
Our
independence
We have fulfilled our ethical responsibilities under, and we
remain independent of the Group in accordance with, UK
ethical requirements including the FRC Ethical Standard as
applied to listed public interest entities.
We have not performed any non-audit services during
FY24 or subsequently which are prohibited by the
FRC Ethical Standard.
We were first appointed as auditor by the Directors
for the year ended 30 April 2014. The period of total
uninterrupted engagement is for the 11 financial years
ended 30 April 2024.
Following a competitive tender process undertaken in
FY23, the shareholders approved to reappoint KPMG as its
external auditor for the financial year end 30 April 2024 at
its 2023 Annual General Meeting.
The Group engagement partner is required to rotate every
5 years. As these are the third set of the Group’s financial
statements signed by Anna Jones, she will be required to
rotate off after the FY26 audit.
Total audit fee
£1.6m
Audit related fees
(including interim
review)
£0.1m
Other services
£0.1m
Non-audit fee as a
% of total audit and
audit related fee %
6%
Date first appointed
27 November
2013
Uninterrupted
audit tenure
11 years
Next financial period
which requires
a tender
2034
Tenure of Group
engagement partner
3 years
Materiality
(Item 6 below)
The scope of our work is influenced by our view of
materiality and our assessed risk of material misstatement.
We have determined overall materiality for the Group
financial statements as a whole at £26.0m (FY23: £27.0m)
and for the Parent Company financial statements as a
whole at £14.5m (FY23: £13.5m).
Consistent with FY23, we determined that Group profit
before tax remains the benchmark for the Group as
the users of the financial statements will be primarily
interested in the profitability of the Group and its ability to
generate returns for shareholders. As such, we based our
Group materiality on Group profit before tax, of which it
represents 4.7% (FY23 4.5%).
Materiality for the Parent Company financial statements
was determined with reference to a benchmark of
Parent Company total assets of which it represents 0.8%
(FY23: 0.7%).
Materiality levels used in our audit
Group
Group Materiality
GPM
Group Performance
Materiality
HCM
Highest Component
Materiality
PLC
Parent Company Materiality
LCM
Lowest Component
Materiality
AMPT
Audit Misstatement
Posting Threshold
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INDEPENDENT AUDITOR’S REPORT CONTINUED
3. Going concern, viability and principal risks and uncertainties
The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate
the Group or the Parent Company or to cease their operations, and as they have concluded that the Group’s and
the Parent Company’s financial position means that this is realistic. They have also concluded that there are no
material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at
least a year from the date of approval of the financial statements (“the going concern period”).
Going Concern
We used our knowledge of the Group, its industry, and the general economic
environment to identify the inherent risks to its business model and analysed
how those risks might affect the Group’s and Parent Company’s financial
resources or ability to continue operations over the going concern period.
The risk that we considered most likely to adversely affect the Group’s and
Parent Company’s available financial resources over this period was a possible
reduction in sales prices and volumes as a consequence of changes in the
economic environment leading to a sustained medium-term decline in revenue
and profits.
We also considered less predictable but realistic second order impacts, such as
cost inflation, delays to construction programmes and new building regulations.
We considered whether these risks could plausibly affect the liquidity or
covenant compliance in the going concern period by comparing severe, but
plausible downside scenarios that could arise from these risks individually and
collectively against the level of available financial resources and covenants
indicated by the Group’s financial forecasts.
Our procedures also included:
• critically assessing assumptions in the base case and downside scenario,
particularly in relation to forecast liquidity, by tracing a sample of secured sales
to customer contracts in order to assess the existence of forward secured
sales;
• inspecting the loan agreements to confirm the nature of the associated
covenant requirements and critically assessed forecast compliance in the base
case and downside scenarios;
• inspecting confirmation from banks of the level of cash and cash equivalents
held at year end; and
• assessing the completeness of going concern disclosure in notes 1.2 and C1.2
to the financial statements.
Accordingly, based on those procedures, we found the Directors’ use of the
going concern basis of accounting without any material uncertainty for the
Group and Parent Company to be acceptable. However, as we cannot predict all
future events or conditions and as subsequent events may result in outcomes
that are inconsistent with judgements that were reasonable at the time they
were made, the above conclusions are not a guarantee that the Group or the
Parent Company will continue in operation.
Our conclusions
• We consider that the Directors’
use of the going concern basis
of accounting in the preparation
of the financial statements is
appropriate;
• We have not identified, and concur
with the Directors’ assessment that
there is not, a material uncertainty
related to events or conditions that,
individually or collectively, may cast
significant doubt on the Group’s
or Parent Company’s ability to
continue as a going concern for the
going concern period;
• We have nothing material to add
or draw attention to in relation to
the Directors’ statement in notes 1.2
and C1.2 to the financial statements
on the use of the going concern
basis of accounting with no
material uncertainties that may cast
significant doubt over the Group
and Parent Company’s use of that
basis for the going concern period,
and we found the going concern
disclosure in notes 1.2 and C1.2 to
be acceptable; and
• The related statement under the
Listing Rules set out on page 164
is materially consistent with
the financial statements and our
audit knowledge.
The impact of
climate change
on our audit
In planning our audit, we considered the potential impact of climate change on the Group’s
business and its financial statements.
The Group’s core activities of designing, building, and selling new homes is a carbon intensive
process. This includes developing large-scale regeneration projects to transform mainly brownfield
sites into new homes and communal spaces by using heavy machinery to demolish existing
structures and constructing new buildings using carbon intensive materials, such as steel and
concrete. The Group emits greenhouse gases directly from energy used in its construction
operations.
As part of the Group’s Our Vision 2030, the Group has set targets of reducing greenhouse gas
emissions and becoming a net zero business by 2045. Whilst the Group has set targets to be
carbon neutral by 2045, the full impact on its cost base and on cash flows are inherently uncertain
and the Group’s assessment continues to evolve. Further information is provided in the Strategic
Report on pages 64 and 67 and the Group’s climate-related disclosures on pages 68 to 88 of the
annual report.
Climate change initiatives and commitments could impact the Group’s future cash flows,
particularly the forecasts of future build costs. For example, in relation to materials, new building
technologies, regulatory changes, and changes in specifications. The potential effect of climate on
build costs in the future is not separately identifiable and the full extent is uncertain. Our work on
the forecasts of future build costs as they apply to the estimates of the cost of sales recognition is
discussed in our cost of sales recognition key audit matter.
As part of our audit, we have performed a risk assessment, including enquiries of Group and
divisional management to understand how the impact of commitments made by the Group in
respect of climate change, as well as the physical or transition risks of climate change, may affect
the financial statements and our audit. We also held discussions with our own climate change
professionals to challenge our risk assessment.
Our risk assessment procedures also included comparing operational plans for the Group’s existing
climate related initiatives, such as the installation of air source heat pumps and EV charging points
on sites, to the Group’s forecast of future build costs.
We have also read the Group’s disclosure of climate related information in the front half of the
annual report and considered consistency with the financial statements and our audit knowledge.
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INDEPENDENT AUDITOR’S REPORT CONTINUED
4. Key audit matters
What we mean
Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the
financial statements and include the most significant assessed risks of material misstatement (whether or not due to
fraud) identified by us, including those which had the greatest effect on:
• the overall audit strategy;
• the allocation of resources in the audit; and
• directing the efforts of the engagement team.
We include below the Key Audit Matters in decreasing order of audit significance together with our key audit procedures
to address those matters and our results from those procedures. These matters were addressed, and our results are
based on procedures undertaken, for the purpose of our audit of the financial statements as a whole. We do not provide
a separate opinion on these matters.
4.1 Cost of sales recognition (group)
Financial Statement Elements
FY24
FY23
Cost of sales £1,819.8m
£1,853.4m
Our assessment of risk vs FY23
Due to the increase in market
uncertainty in the year, we have
assessed that the level of
uncertainty has increased
compared to FY23.
Our results
FY24: Acceptable
FY23: Acceptable
Description of the Key Audit Matter
Our response to the risk
Cost of sales is subject to estimation
uncertainty as it is dependent on the
Group’s estimate of future sales prices
and land and build costs, including an
allowance for risk.
Further, estimation uncertainty and
exposure to market cyclicality exists
within longer term sites. Forecasts
are dependent on market conditions,
which can be difficult to predict
and can be influenced by political
and economic factors including, but
not limited to, the future market
uncertainties surrounding the longer-
term impacts of macroeconomic
factors, uncertainties over associated
costs and sales prices.
The effect of this matter is that, as part
of our risk assessment, we determined
that cost of sales has a high degree of
estimation uncertainty, with a potential
range of reasonable outcomes greater
than our materiality for the financial
statements as a whole. The financial
statements (note 1.1) disclose that this
is unlikely to have a material effect in
the next financial year.
Our procedures to address the risk included:
Methodology choice: Assessed whether the cost allocation methodology used
by the Group to recognise cost of sales, including any changes in methodology
made in the year, is in accordance with the Group’s accounting policies;
Control observation and operation: We attended a haphazard sample of the
Group’s build cost meetings that are held for each site to assess the discussion
and review of site forecasts. Assessed whether the appropriate individuals
attended the meetings, and that the site forecast costs for developments are
challenged and discussed, and costs forecasts are updated as appropriate; and
For a sample of sites that we consider at higher risk of misstatement, due to
either their size, complexity or specific risk factors, we inspected the whole site
forecasts and challenged the Group’s inputs and assumptions by performing
the following procedures:
Historical and current transactions comparison – forecast sales prices: We
compared forecast sales prices to recent prices achieved for similar units as this
is the best indicator of current market prices; compared forecast sales prices
to average sales prices per unit and square footage achieved to date on a site;
and assessed the Group’s historical accuracy of forecasting sales prices;
Historical and current transactions comparison – forecast costs: We assessed
the Group’s historical accuracy of forecasting costs by comparing build costs
incurred to date to original budgets and benchmark forecast build costs
against similar sites across the Group. Benchmarked contingencies included
in the site wide forecasts for cost increases, sales price uncertainties or
other potential changes such as new regulations or climate related costs to
forecast contingencies held for similar sites across the Group and to historical
uncertainties that have crystalised;
Our sector experience: We challenged the Group’s forecast sales price
and forecast cost assumptions using our own expectations based on our
knowledge of the Group and experience of the industry in which it operates;
Sensitivity analysis: We used third party forecasts for the housing market and
industry cost indices to sensitise the sales price and build cost assumptions, to
assess the impact on the forecast margin used to allocate costs and compared
the results to site contingencies held.; and
Assessing transparency: We considered the adequacy of the Group’s
disclosures in note 2.12 to the financial statements regarding the degree of
judgement, estimation uncertainty and sensitivity to key assumptions involved
in arriving at the forecast site margins and resultant cost of sales recognised.
Disclosures of emerging and principal risks and longer-term viability
Our responsibility
We are required to perform procedures to identify whether there is a material
inconsistency between the Directors’ disclosures in respect of emerging and
principal risks and the viability statement, and the financial statements and our
audit knowledge.
Based on those procedures, we have nothing material to add or draw attention
to in relation to:
• the Directors’ confirmation within the Viability Statement on page 93 that
they have carried out a robust assessment of the emerging and principal risks
facing the Group, including those that would threaten its business model,
future performance, solvency and liquidity;
• the ‘how we manage risks’ disclosures describing these risks and how
emerging risks are identified and explaining how they are being managed and
mitigated; and
• the Directors’ explanation in the Viability Statement of how they have
assessed the prospects of the Group, over what period they have done so and
why they considered that period to be appropriate, and their statement as
to whether they have a reasonable expectation that the Group will be able to
continue in operation and meet its liabilities as they fall due over the period of
their assessment, including any related disclosures drawing attention to any
necessary qualifications or assumptions.
We are also required to review the Viability Statement set out on page 93 under
the Listing Rules.
Our work is limited to assessing these matters in the context of only the
knowledge acquired during our financial statements audit. As we cannot predict
all future events or conditions and as subsequent events may result in outcomes
that are inconsistent with judgements that were reasonable at the time they
were made, the absence of anything to report on these statements is not a
guarantee as to the Group’s and Parent Company’s longer-term viability.
Our reporting
We have nothing material to add or
draw attention to in relation to these
disclosures.
We have concluded that these
disclosures are materially consistent
with the financial statements and our
audit knowledge.
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INDEPENDENT AUDITOR’S REPORT CONTINUED
4.2 Post completion development provision (group)
Financial Statement Elements
FY24
FY23
Post
completion
development
provision
£200.6m
£189.0m
Our assessment of risk vs FY23
We have not identified any
significant changes in our
assessment of the level of risk
relating to the post completion
development provision compared
to FY23.
Our results
FY24: Acceptable
FY23: Acceptable
Description of the Key Audit Matter
Our response to the risk
The Group holds post completion
development provisions in respect
of claims and construction related
liabilities that have arisen, or that
prior claims experience indicates
may arise subsequent to the
completion of certain developments.
The identification and estimation of
amounts to be recognised in relation
to post completion development
provisions is judgemental by its nature
as it requires the Group to make a
number of estimates, including the
forecast costs to rectify identified
issues and whether prior claims
experience is reflective of future
issues. The effect of these matters is
that, as part of our risk assessment,
we determined that post completion
development provisions have a high
degree of estimation uncertainty,
with a potential range of reasonable
outcomes greater than our materiality
for the financial statements as a
whole. The financial statements (note
2.16) disclose that this is unlikely to
have a material effect in the next
financial year.
We performed the tests below rather than seeking to rely on any of the Group’s
controls because the nature of the balance is such that we would expect to
obtain audit evidence primarily through the detailed procedures described.
Our procedures to address the risk included:
Methodology: We assessed the Group’s methodology for accounting for
provisions and the appropriateness of estimates made in making provisions;
Personnel interviews: We inspected board minutes to identify potential claims
to be provided for and corroborated through enquiries of Group Directors and
Management, and divisional management and compare to Group’s provisions
assessments;
Test of detail: We critically assessed the Group’s calculation of the provision
held, challenged internal remediation cost assessments and considered third
party evidence for provisions made for significant known issues and claims;
Historical comparisons: Where past events indicate that an obligation may
arise, we evaluated the Group’s risk assessment performed in respect of
known and/or settled issues and considered any changes in the development
portfolio over time, in assessing the estimation of the provision. For a sample
of post completion development provisions, we performed a retrospective
review, comparing actual rectification costs incurred to the Group’s previously
estimated cost to evaluate the Group’s forecasting accuracy;
Our sector experience: We utilised the audit team’s experience to challenge
the assumptions over appropriateness of the rectification cost assumptions;
Enquiry of lawyers: In respect of open matters of litigation, we held enquiries
with the Group’s in-house legal counsel and inspected relevant correspondence
and considered against provisions made; and
Assessing transparency: We considered the adequacy of the Group’s
disclosures in the financial statements regarding the degree of judgement,
estimation uncertainty, and sensitivity to key assumptions involved in arriving
at the recorded post completion development provisions.
Communications with The Berkeley Group Holdings plc’s Audit Committee
Our discussions with and reporting to the Audit Committee included:
• Our approach to the audit of the post completion development provision including details of our planned substantive
procedures.
• Our assessment of the of the Group’s methodology for accounting for provisions.
• Our conclusion on the appropriateness of estimates made in making provisions.
• The adequacy of the disclosures made by the Group on the estimates, and related estimation uncertainty, used to
determine the amount of provisions to recognise.
Areas of particular auditor judgement
We identified the Groups’ estimation of amounts to be recognised as a provision to be the area of particular auditor
judgement.
Our results
We found the amount of post completion development provision to be acceptable (FY23 result: acceptable).
Further information in the Annual Report and Accounts: See the Audit Committee Report on page 127 for details on how
the Audit Committee considered the post completion development provision as an area of significant attention, page 207
for the accounting policy on the post completion development provision, and note 2.16 for the financial disclosures.
Communications with The Berkeley Holdings Group plc’s Audit Committee
Our discussions with and reporting to the Audit Committee included:
• Our approach to the audit of cost of sales including details of our planned substantive procedures and the extent of
our control reliance.
• Our assessment of the of the Group’s methodology for accounting for cost of sales.
• Our assessment of the key assumptions used by management in determining the cost of sales to be recognised for
units legally completed in the year.
• Our assessment of the level of allowance for risk held across the Group’s sites.
• The adequacy of disclosures made by the Group on the estimates, and related estimation uncertainty, used to
determine the amount of cost of sales to recognise.
Areas of particular auditor judgement
We identified the cost, sales, and risk allowance forecast utilised in the Group’s estimate as the area of particular
auditor judgement.
Our results
We found the cost of sales recognised to be acceptable (FY23 result: acceptable).
Further information in the Annual Report and Accounts: See the Audit Committee Report on page 127 for details on how
the Audit Committee considered cost of sales recognition as an area of significant attention, note 2.12 for the accounting
policy on cost of sales recognition, and note 2.12 for the financial disclosures.
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INDEPENDENT AUDITOR’S REPORT CONTINUED
5. Our ability to detect irregularities, and our response
Fraud – Identifying And responding to risks of material misstatement due to fraud
Fraud risk assessment
To identify risks of material misstatement due to fraud (‘fraud risks’) we assessed events
or conditions that could indicate an incentive or pressure to commit fraud or provide an
opportunity to commit fraud. Our risk assessment procedures included:
• our forensic specialists assisted us in identifying key fraud risks. This included attending
the Risk Assessment and Planning Discussion, holding a discussion with the engagement
partner, engagement manager, and engagement quality control reviewer, and assisting
with designing relevant audit procedures to respond to the risk of management override
of controls;
• enquiring of Directors, the Audit Committee, internal audit, internal legal counsel and
inspection of policy documentation as to the Group’s high-level policies and procedures
to prevent and detect fraud, including the internal audit function, and the Group’s
channel for ‘whistleblowing’, as well as whether they have knowledge of any actual,
suspected or alleged fraud;
• reading Board, Audit Committee and Remuneration Committee minutes;
• considering remuneration incentive schemes (these include the 2011 LTIP, Restricted
Share Plan and Long-Term Option Plan) and performance targets for management
and Directors, including any revenue and trading margin targets for management
remuneration; and
• using analytical procedures to identify any unusual or unexpected relationships.
Risk communications
We communicated identified fraud risks throughout the audit team and remained alert to
any indications of fraud throughout the audit.
Fraud risks
As required by auditing standards and taking into account our overall knowledge of
the control environment, we perform procedures to address the risk of management
override of controls, in particular the risk that Group and component management
may be in a position to make inappropriate accounting entries and the risk of bias in
accounting estimates and judgments such as cost of sales recognition and post completion
development provisions. On this audit we do not believe there is a fraud risk related to
revenue recognition as the accounting for the Group’s revenue is non-complex and the
majority is only recognised on the legal completion of the sale, being the point at which
the balance of the sale is paid for and title of the unit transfers to the customer. There are
therefore limited levels of judgment with limited opportunities for manual intervention in
the sales process to fraudulently manipulate revenue. We did not identify any additional
fraud risks.
Procedures to address
fraud risks
In determining the audit procedures, we took into account the results of our evaluation and
testing of the operating effectiveness of some of the Group-wide fraud risk management
controls. We also performed procedures including:
• identifying journal entries and other adjustments to test for all entities across the Group
based on specific risk-based criteria and comparing the identified entries to supporting
documentation. These included those posted by senior finance management, those
posted to unusual accounts, seldom used accounts and journals posted by leavers; and
• assessing whether the judgements made in making accounting estimates are indicative
of a potential bias.
4.3 Recoverability of the Parent Company’s investment in subsidiary, and amounts due, from its indirect subsidiaries (Parent Company)
Financial Statement Elements
FY24
FY23
Investment
carrying
value note
C2.4
£1,443.1m
£1,438.1m
Amounts
due from
subsidiaries.
note C2.5
£630.8m
£536.6m
Our assessment of risk vs FY23
We have not identified any
significant changes in our
assessment of the level of risk
relating the recoverability of the
parent company investment in,
and amounts due, from its indirect
subsidiaries compared to FY23.
Our results
FY24: Acceptable
FY23: Acceptable
Description of the Key Audit Matter
Our response to the risk
The carrying amount of the parent
Company’s investment in subsidiary
and amounts due from its indirect
subsidiaries represents 69.4% and
30.3% (FY23: 72.6% and 27.1%) of
the parent Company’s total assets,
respectively.
Their recoverability is not at high risk
of significant misstatement or subject
to significant judgment. However, due
to their materiality in the context of the
parent Company financial statements,
this is considered to be the area that
had the greatest effect on our overall
parent Company audit.
We performed the tests below rather than seeking to rely on any of the Group’s
controls because the nature of the balance is such that we would expect to
obtain audit evidence primarily through the detailed procedures described.
Our procedures included:
Test of detail:
• We compared the carrying amount of the investment with the relevant
material indirect subsidiary’s net assets in the Group’s consolidation to identify
whether its net assets, being an approximation of minimum recoverable
amount, were in excess of the carrying amount of that investment;
• We assessed 100% of amounts due from indirect subsidiaries with reference
to the relevant debtors’ balances in the Group’s consolidation and checked
whether they have positive net assets and therefore coverage of the debt
owed; and
• We assessed whether those subsidiaries have historically been profit making.
Communications with The Berkeley Group Holdings plc’s Audit Committee
Our discussions with and reporting to the Audit Committee included:
• Our approach to the audit of the recoverability of the parent company investment in subsidiary, and amounts due,
from its indirect subsidiaries including details of our planned substantive procedures.
• Our conclusion on the appropriateness of the carrying value of the parent company’s investment in subsidiary and
amounts due from its indirect subsidiaries
Our results
We found the parent Company’s conclusion that there is no impairment of its investment in subsidiary or its amounts
due from its indirect subsidiaries to be acceptable (FY23 result: acceptable).
Further information in the Annual Report and Accounts: See notes C2.4 and C2.5 for the accounting policy on of the
parent company investment in, and amounts due, from its indirect subsidiaries, and notes C2.4 and C2.5 for the financial
disclosures.
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6. Our determination of materiality
The scope of our audit was influenced by our application of materiality. We set quantitative thresholds and overlay
qualitative considerations to help us determine the scope of our audit and the nature, timing and extent of our
procedures, and in evaluating the effect of misstatements, both individually and in the aggregate, on the financial
statements as a whole.
£26.0m
(FY23: £27.0m)
Materiality for the group
financial statements as
a whole
What we mean
A quantitative reference for the purpose of planning and performing our audit.
Basis for determining materiality and judgements applied
Materiality for the Group financial statements as a whole was set at £26.0m (FY23:
£27.0m). This was determined with reference to a benchmark of Group profit before tax.
Consistent with FY23, we determined that Group profit before tax remains the main
benchmark for the Group as the users of the financial statements will be primarily
interested in the profitability of the Group and its ability to generate returns for
shareholders.
Our Group materiality of £26.0m was determined by applying a percentage to the Group
profit before tax. When using a benchmark of Group profit before tax to determine overall
materiality, KPMG’s approach for listed entities considers a guideline range 3% – 5% of the
measure. In setting overall Group materiality, we applied a percentage of 4.7% (FY23: 4.5%)
to the benchmark.
Materiality for the Parent Company financial statements as a whole was set at £14.5m
(FY23: £13.5m), determined with reference to a benchmark of Parent Company total assets,
of which it represents 0.8% (FY23: 0.7%).
£19.5m
(FY23: £20.2m)
Performance materiality
What we mean
Our procedures on individual account balances and disclosures were performed to a lower
threshold, performance materiality, so as to reduce to an acceptable level the risk that
individually immaterial misstatements in individual account balances add up to a material
amount across the financial statements as a whole.
Basis for determining performance materiality and judgements applied
We have considered performance materiality at a level of 75% (FY23: 75%) of materiality
for The Berkeley Group Holdings plc Group financial statements as a whole to
be appropriate.
The Parent Company performance materiality was set at £10.8m (FY23: £10.1m), which
equates to 75% (FY23: 75%) of materiality for the Parent Company financial statements as
a whole.
We applied this percentage in our determination of performance materiality because we
did not identify any factors indicating an elevated level of risk.
£1.3m
(FY23: £1.3m)
Audit misstatement
posting threshold
What we mean
This is the amount below which identified misstatements are considered to be clearly
trivial from a quantitative point of view. We may become aware of misstatements below
this threshold which could alter the nature, timing and scope of our audit procedures, for
example if we identify smaller misstatements which are indicators of fraud.
This is also the amount above which all misstatements identified are communicated to
The Berkeley Group Holdings plc’s Audit Committee.
Basis for determining the audit misstatement posting threshold and
judgements applied
We set our audit misstatement posting threshold at 5% (FY23: 5%) of our materiality
for the Group financial statements. We agreed to report to the Audit Committee
any corrected or uncorrected identified misstatements exceeding £1.3 million
(FY23: £1.3 million), in addition to other identified misstatements that warranted reporting
on qualitative grounds.
INDEPENDENT AUDITOR’S REPORT CONTINUED
Laws and regulations – Identifying and responding to risks of material misstatement relating to compliance with laws and regulations
Laws and regulations
risk assessment
We identified areas of laws and regulations that could reasonably be expected to
have a material effect on the financial statements from our general commercial and
sector experience, through discussion with the Directors and other management (as
required by auditing standards), and from inspection of the Group’s regulatory and legal
correspondence and discussed with the Directors and other management the policies and
procedures regarding compliance with laws and regulations.
As the Group is regulated, our assessment of risks involved gaining an understanding
of the control environment including the entity’s procedures for complying with
regulatory requirements.
Risk communications
We communicated identified laws and regulations throughout the audit team and remained
alert to any indications of non-compliance throughout the audit.
Direct laws context
and link to audit
The potential effect of these laws and regulations on the financial statements varies
considerably.
The Group is subject to laws and regulations that directly affect the financial statements
including financial reporting legislation (including related companies legislation),
distributable profits legislation, taxation legislation and the Building Safety Act and
we assessed the extent of compliance with these laws and regulations as part of our
procedures on the related financial statement items.
Most significant indirect
law/ regulation areas
The Group is subject to many other laws and regulations where the consequences of
non-compliance could have a material effect on amounts or disclosures in the financial
statements, for instance through the imposition of fines or litigation or the loss of the
Group’s license to operate.
We identified the following areas as those most likely to have such an effect:
• UK planning permission and building regulations;
• health and safety;
• anti-bribery;
• anti-money laundering and sanctions checking;
• employment laws;
• data protection laws; and
• environmental laws.
Auditing standards limit the required audit procedures to identify non-compliance
with these laws and regulations to enquiry of the Directors and other management
and inspection of regulatory and legal correspondence, if any. Therefore if a breach of
operational regulations is not disclosed to us or evident from relevant correspondence,
an audit will not detect that breach.
Context
Context of the ability
of the audit to detect
fraud or breaches of law
or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not
have detected some material misstatements in the financial statements, even though we
have properly planned and performed our audit in accordance with auditing standards.
For example, the further removed non-compliance with laws and regulations is from the
events and transactions reflected in the financial statements, the less likely the inherently
limited procedures required by auditing standards would identify it. In addition, as with any
audit, there remained a higher risk of non-detection of fraud, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal controls. Our
audit procedures are designed to detect material misstatement. We are not responsible for
preventing non-compliance or fraud and cannot be expected to detect non-compliance
with all laws and regulations.
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7. The scope of our audit
Group scope
What we mean
How the Group audit team determined the procedures to be performed across the Group.
The Group has 16 (FY23:16) reporting components. In order to determine the work
performed at the reporting component level, we identified those components which we
considered to be of individual financial significance, those which were significant due to
risk and those remaining components on which we required procedures to be performed
to provide us with the evidence we required in order to conclude on the Group financial
statements as a whole. We scoped the audit by obtaining an understanding of the Group
and its environment and assessing the risk of material misstatement at the Group and
component level.
The Group operates within the UK and all audit work is performed by the same audit team.
We determined individually financially significant components as those contributing
at least 10% (FY23: 10%) of Group Total Assets or 10% of Group Revenue (FY23: 10%).
We selected Group Revenue and Group Total Assets because these are the most
representative of the relative size of the components. We identified six (FY23: six)
components as individually financially significant components and performed full scope
audits on these components.
In addition to the individually financially significant components, we identified three
(FY23: three) components as significant, owing to significant risks of material misstatement
affecting the Group financial statements. Of the three (FY23: three) components identified
as significant due to risk, we performed specific risk-focused audit procedures over
provisions and cost of sales.
In addition, to enable us to obtain sufficient appropriate audit evidence for the Group
financial statements as a whole, we selected one (FY23: one) component on which
we performed specified risk-focused audit procedures over property, plant and
equipment balance.
The components within the scope of our work accounted for the following percentages
of the Group’s results, with the prior year comparatives indicated in brackets:
Scope
Number of
components
Range of
materiality applied
Full scope audit
7
£7m – £15m
Specified audit procedures
4
£6m – £8m
The remaining 1% (FY23: 1%) of Group profit before tax and 1% (FY23: 1%) of total Group
assets is represented by reporting components, none of which individually represented
more than 0.1% (FY23: 0.1%) of any of total Group revenue, Group profit before tax or total
Group assets.
For these components, we performed analysis at an aggregated group level to re-examine
our assessment that there were no significant risks of material misstatement within these.
For the audit of the Group financial statements, we were able to rely upon the Group’s
internal controls over financial reporting in several areas of our audit, where our controls
testing supported this approach, which enabled us to reduce the scope of our substantive
audit work.
The parent company audit is subject to a full scope, fully substantive audit.
Group audit team
oversight
What we mean
The extent of the Group audit team’s involvement in component audits.
The work on all components (FY23: all components) within the scope of our work,
including the audit of the parent Company was performed by the Group team.
INDEPENDENT AUDITOR’S REPORT CONTINUED
The overall materiality for the Group financial statements of £26.0m (FY23: £27.0m) compares as follows to the main
financial statement caption amounts:
Total Group Revenue
Group profit before tax
Total Group Assets
FY24
FY23
FY24
FY23
FY24
FY23
Financial
statement caption
£2,464.3m
£2,550.2m
£557.3m
£604.0m
£6,996.3m
£6,859.7m
Group Materiality
as % of caption
1.1%
1.1 %
4.7%
4.5%
0.4%
0.4%
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104–164 | Corporate Governance
INDEPENDENT AUDITOR’S REPORT CONTINUED
9. Respective Responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 164, the Directors are responsible for: the preparation of
the financial statements including being satisfied that they give a true and fair view; such internal control as they
determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error; assessing the Group and Parent Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting
unless they either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable
assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs
(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at
www.frc.org.uk/auditorsresponsibilities.
The Company is required to include these financial statements in an annual financial report prepared under
Disclosure Guidance and Transparency Rule (“DTR”) 4.1.17R and 4.1.18R. This auditor’s report provides no assurance
over whether the annual financial report has been prepared in accordance with those requirements.
10. The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the
Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.
Anna Jones (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
London
19 June 2024
8. Other information in the annual report
The Directors are responsible for the other information presented in the Annual Report together with the financial
statements. Our opinion on the financial statements does not cover the other information and, accordingly, we do
not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
All other information
Our responsibility
Our responsibility is to read the other information and, in doing so, consider
whether, based on our financial statements audit work, the information therein
is materially misstated or inconsistent with the financial statements or our
audit knowledge.
Our reporting
Based solely on that work we have
not identified material misstatements
or inconsistencies in the other
information.
Strategic Report and Directors’ Report
Our responsibility and reporting
Based solely on our work on the other information described above we report to you as follows:
• we have not identified material misstatements in the strategic report and the Directors’ Report;
• in our opinion the information given in those reports for the financial year is consistent with the financial statements;
and
• in our opinion those reports have been prepared in accordance with the Companies Act 2006.
Directors’ Remuneration Report
Our responsibility
We are required to form an opinion as to whether the part of the Directors’
Remuneration Report to be audited has been properly prepared in accordance
with the Companies Act 2006.
Our reporting
In our opinion the part of the
Directors’ Remuneration Report
to be audited has been properly
prepared in accordance with the
Companies Act 2006.
Corporate Governance disclosures
Our responsibility
We are required to perform procedures to identify whether there is a material
inconsistency between the financial statements and our audit knowledge, and:
• the Directors’ statement that they consider that the annual report and
financial statements taken as a whole is fair, balanced and understandable,
and provides the information necessary for shareholders to assess the Group’s
position and performance, business model and strategy;
• the section of the annual report describing the work of the Audit Committee,
including the significant issues that the Audit Committee considered in
relation to the financial statements, and how these issues were addressed; and
• the section of the annual report that describes the review of the effectiveness
of the Group’s risk management and internal control systems.
Our reporting
Based on those procedures, we
have concluded that each of these
disclosures is materially consistent
with the financial statements and our
audit knowledge.
We are also required to review the part of the Corporate Governance Statement
relating to the Group’s compliance with the provisions of the UK Corporate
Governance Code specified by the Listing Rules for our review.
We have nothing to report
in this respect.
Other matters on which we are required to report by exception
Our responsibility
Under the Companies Act 2006, we are required to report to you if,
in our opinion:
• adequate accounting records have not been kept by the Parent Company,
or returns adequate for our audit have not been received from branches not
visited by us; or
• the Parent Company financial statements and the part of the Directors’
Remuneration Report to be audited are not in agreement with the accounting
records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made;
or
• we have not received all the information and explanations we require for
our audit.
Our reporting
We have nothing to report
in these respects.
180 | Berkeley Group 2024 Annual Report
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104–164 | Corporate Governance
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 April
Notes
2024
£m
2023
£m
Revenue
2.1
2,464.3
2,550.2
Cost of sales
(1,819.8)
(1,853.4)
Gross profit
644.5
696.8
Net operating expenses
(164.8)
(178.5)
Operating profit
479.7
518.3
Finance income
2.3
53.9
23.1
Finance costs
2.3
(41.9)
(33.7)
Share of results of joint ventures using the equity method
2.11
65.6
96.3
Profit before taxation for the year
557.3
604.0
Income tax expense
2.6
(159.7)
(138.3)
Profit after taxation for the year
397.6
465.7
Earnings per share (pence):
Basic
2.7
373.9
426.8
Diluted
2.7
371.1
422.4
For the year ended 30 April
Notes
2024
£m
2023
£m
Profit after taxation for the year
397.6
465.7
Other comprehensive expense
Items that will not be reclassified to profit or loss:
Actuarial loss recognised in the pension scheme
2.5
(0.7)
(1.3)
Total items that will not be reclassified to profit or loss
(0.7)
(1.3)
Other comprehensive expense for the year
(0.7)
(1.3)
Total comprehensive income for the year
396.9
464.4
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 April
Notes
2024
£m
2023
£m
Assets
Non-current assets
Intangible assets
2.8
17.2
17.2
Property, plant and equipment
2.9
28.0
34.6
Right-of-use assets
2.10
4.3
5.2
Investments in joint ventures
2.11
227.0
223.4
Deferred tax assets
2.17
116.9
114.5
393.4
394.9
Current assets
Inventories
2.12
5,283.9
5,302.1
Trade and other receivables
2.13
119.8
92.3
Current tax receivables
7.2
–
Cash and cash equivalents
2.14
1,192.0
1,070.4
6,602.9
6,464.8
Total assets
6,996.3
6,859.7
Liabilities
Non-current liabilities
Borrowings
2.23
(660.0)
(660.0)
Trade and other payables
2.15
(683.6)
(863.4)
Lease liabilities
2.10
(2.3)
(2.9)
Provisions for other liabilities and charges
2.16
(140.7)
(115.1)
(1,486.6)
(1,641.4)
Current liabilities
Trade and other payables
2.15
(1,878.0)
(1,801.6)
Lease liabilities
2.10
(2.1)
(2.2)
Current tax liabilities
–
(3.7)
Provisions for other liabilities and charges
2.16
(69.1)
(78.5)
(1,949.2)
(1,886.0)
Total liabilities
(3,435.8)
(3,527.4)
Total net assets
3,560.5
3,332.3
Equity
Shareholders’ equity
Share capital
2.18
6.2
6.3
Share premium
2.18
49.8
49.8
Capital redemption reserve
2.19
25.3
25.2
Other reserve
2.19
(961.3)
(961.3)
Retained earnings
2.19
4,440.5
4,212.3
Total equity
3,560.5
3,332.3
The financial statements on pages 182 to 223 were approved by the Board of Directors on 19 June 2024 and were
signed on its behalf by:
R J Stearn
Chief Financial Officer
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Notes
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Other
reserve
£m
Retained
earnings
£m
Total
equity
£m
At 1 May 2023
6.3
49.8
25.2
(961.3)
4,212.3
3,332.3
Profit after taxation for the year
–
–
–
–
397.6
397.6
Other comprehensive expense
for the year
–
–
–
–
(0.7)
(0.7)
Purchase of own shares
2.18
(0.1)
–
0.1
–
(72.3)
(72.3)
Transactions with shareholders:
Charge in respect of employee
share schemes
2.5
–
–
–
–
(0.8)
(0.8)
Deferred tax in respect of
employee share schemes
2.17
–
–
–
–
2.5
2.5
Dividends to equity holders of
the Company
2.20
–
–
–
–
(98.1)
(98.1)
At 30 April 2024
6.2
49.8
25.3
(961.3)
4,440.5
3,560.5
At 1 May 2022
6.5
49.8
25.0
(961.3)
4,016.1
3,136.1
Profit after taxation for the year
–
–
–
–
465.7
465.7
Other comprehensive expense
for the year
–
–
–
–
(1.3)
(1.3)
Purchase of own shares
2.18
(0.2)
–
0.2
–
(155.4)
(155.4)
Transactions with shareholders:
Charge in respect of employee
share schemes
2.5
–
–
–
–
(4.5)
(4.5)
Deferred tax in respect of
employee share schemes
2.17
–
–
–
–
(9.8)
(9.8)
Dividends to equity holders of
the Company
2.20
–
–
–
–
(98.5)
(98.5)
At 30 April 2023
6.3
49.8
25.2
(961.3)
4,212.3
3,332.3
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 April
Notes
2024
£m
2023
£m
Cash flows from operating activities
Cash generated from operations
2.22
383.0
472.5
Interest received
50.4
18.2
Interest paid
(29.5)
(21.4)
Income tax paid
(170.5)
(133.7)
Net cash flow from operating activities
233.4
335.6
Cash flows from investing activities
Purchase of property, plant and equipment
2.9
(1.4)
(2.0)
Proceeds on disposal of property, plant and equipment
0.3
0.8
Dividends from joint ventures
2.11
74.9
74.9
Increase in loans with joint ventures
2.11
(12.9)
(11.6)
Net cash flow from investing activities
60.9
62.1
Cash flows from financing activities
Lease capital repayments
(2.3)
(2.3)
Purchase of own shares
2.19
(72.3)
(155.4)
Dividends to equity holders of the Company
2.20
(98.1)
(98.5)
Net cash flow from financing activities
(172.7)
(256.2)
Net increase in cash and cash equivalents
2.22
121.6
141.5
Cash and cash equivalents at the start of the financial year
1,070.4
928.9
Cash and cash equivalents at the end of the financial year
2.22
1,192.0
1,070.4
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 Basis of preparation
1.1 Introduction
These Consolidated Financial Statements have been prepared and approved by the Directors in accordance with
UK-adopted International Accounting Standards (UK-adopted IFRS). The Company has elected to prepare its
Parent Company financial statements in accordance with FRS 101; these are presented on pages 224 to 230.
The Group Financial Statements consolidate those of the Company and its subsidiaries (together referred to as the
Group) and equity account the Group’s interest in joint ventures. The Parent Company financial statements present
information about the Company as a separate entity and not about its Group.
The Consolidated Financial Statements have been prepared under the historical cost convention and on the going
concern basis. Historical cost is generally based on the fair value of the consideration given in exchange for the
assets.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS)
requires the use of certain critical accounting estimates. It may also require management to exercise their
judgement in the process of applying the Group’s accounting policies.
The key areas involving estimation uncertainty, which are significant to the Consolidated Financial Statements, are:
• cost of sales recognition which is dependent on an estimate of future selling prices and costs. See note 2.12; and
• post completion development provisions which rely on management judgement in estimating the quantum and
timing of outflows of resources to settle any associated legal or constructive obligations. See note 2.16.
Whilst these are key areas of estimation uncertainty, these are unlikely to have a material impact on the carrying
value of assets and liabilities in the next financial year.
There are no significant areas of judgement in applying the Group’s accounting policies exercised by management
during the current or prior year.
Group accounting policies
The significant Group accounting policies are included within the relevant notes to the Consolidated Financial
Statements on pages 186 to 223. The accounting policies set out below have been applied consistently to all
periods presented in these Consolidated Financial Statements.
1.2 Going concern
The Directors have assessed the business plan and funding requirements of the Group over the medium term
and compared these with the level of committed debt facilities and existing cash resources. As at 30 April 2024,
the Group had net cash of £532 million and total liquidity of £1,732 million when this net cash is combined with
banking facilities of £800 million (committed to February 2029) and £400 million listed bonds (which mature in
August 2031). Furthermore, the Group has cash due on forward sales of £1,701 million, a significant proportion of
which covers delivery for the next 18 months.
In making this assessment, consideration has been given to the uncertainty inherent in future financial forecasts
and where applicable, severe but plausible sensitivities have been applied to the key factors affecting the financial
performance of the Group. The Directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for not less than 12 months from the date of approval of these Consolidated
Financial Statements. For this reason, the Directors continue to adopt the going concern basis of accounting in
preparing the Consolidated Financial Statements.
1.3 Consideration of climate change
In preparing the Financial Statements, consideration has been given to the Group’s activities to address climate
change as part of Our Vision 2030 and its assessment and reporting of future climate-related transitional and
physical risks under the Task Force on Climate-related Financial Disclosures (TCFD) framework, both of which are
set out in the Strategic Report.
The costs incurred in developing the Group’s sites are held in inventory as these are trading in nature and
are therefore taken through cost of sales to match the revenue generated by the sale of properties on each
development. The recognition of cost of sales, and therefore the carrying value of inventory, during a financial year
is made by reference to the latest assessment of each development’s forecast profit margin, which is a key area of
estimation uncertainty as set out in Note 2.12.
The cost of specific climate change related activities undertaken as part of the development of a site are inherently
difficult to disassociate from other input costs as these typically involve a myriad of inter-related design and
construction based solutions, for instance over the selection of key materials and technologies adopted to reduce
embodied carbon and minimise future energy use of the Group’s occupied homes. In turn, these activities are
regulated by prevailing planning and building regulations requirements.
The future cost estimates used to determine the cost of sales recognition during the financial year inherently
reflect the Group’s current development-specific climate-related actions through its cost plans. Consistent with
the inherently higher cost uncertainty of its longer-term developments from evolving regulatory and other market-
led changes, the Group may incur as yet unknown costs associated with its own future climate-related actions as
well as costs arising from the impact of climate change. As set out in Note 2.12, the Group’s cost assessments and
allocation evolve over the life of each development.
1.4 Basis of consolidation
(a) Subsidiaries
The Consolidated Financial Statements comprise the financial statements of the Parent Company and all its
subsidiary undertakings. The accounting date for subsidiary undertakings is 30 April, unless otherwise stated in
note 2.26.
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights
to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity. In assessing control, the Group takes into consideration substantive rights that are currently
exercisable. The acquisition date is the date on which control is transferred to the acquirer. The financial statements
of subsidiaries are included in the Consolidated Financial Statements from the date that control commences until
the date that control ceases. Losses applicable to the non-controlling interests in a subsidiary are allocated to the
non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance.
The purchase method of accounting is used to account for the acquisition of subsidiary undertakings by the
Group.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting
policies used in line with those used by the Group. All intra-Group transactions, balances, income and expenses are
eliminated on consolidation. Acquisition-related costs are expensed as incurred.
(b) Joint ventures
Joint ventures are accounted for using the equity method (equity accounted investees) and are initially recognised
at cost.
The Group’s investment includes goodwill identified on acquisition, net of any accumulated impairment losses.
The Consolidated Financial Statements include the Group’s share of the total comprehensive income and equity
movements of equity accounted investees, from the date that joint control commences until the date that joint
control ceases. When the Group’s share of losses exceeds its interest in an equity accounted investee, the Group’s
carrying amount is reduced to £nil and recognition of further losses is discontinued except to the extent that the
Group has incurred legal or constructive obligations or made payments on behalf of an investee.
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1 Basis of preparation continued
1.5 Adoption of new and revised standards
The following amendments to standards and interpretations are applicable to the Group and are mandatory for the
first time for the financial year beginning 1 May 2023:
• Amendments to IAS 1 Presentation of Financial Statements;
• Amendments to IFRS 17 Insurance Contracts;
• Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; and
• Amendments to IAS 12 Income Taxes.
The Group did not have to change its accounting policies or make retrospective adjustments as a result of these
amendments.
1.6 Impact of standards and interpretations in issue but not yet effective
The International Accounting Standards Board (‘IASB’) has published the following amendments to IFRSs which
will be applicable to the Group for the financial year beginning 1 May 2024. These amendments are not expected
to have a significant impact on the results of the Group:
• Amendments to IAS 1 Presentation of Financial Statements; and
• Amendments to IFRS 16 Leases.
2 Results for the year
2.1 Revenue
The Group’s revenue derives principally from the sale of residential homes and commercial properties across mixed
use developments in the United Kingdom.
Revenue represents the amounts receivable from the sale of properties, comprising private and affordable
residential homes and commercial properties, ground rent assets and other income directly associated with
residential property development.
For the significant majority of residential and commercial property sales, properties are treated as sold
and profits and revenues are recognised when all performance obligations under the contract have been
satisfied, following which control of the unit is passed to the customer. This is determined as the point of legal
completion.
Where revenue arises on contracts where the customer controls the property during construction and for
which the Group has a right to payment for work performed, the Group recognises revenue over time. Revenue
and costs are recognised with reference to the stage of completion of the contract, measured by construction
progress.
Ground rent and land assets are treated as sold when contracts are exchanged, all material conditions
precedent to the sale have been satisfied and control of the assets have passed to the customer.
An analysis of the Group’s continuing revenue is as follows:
2024
£m
2023
£m
Residential revenue
2,395.7
2,508.3
Commercial revenue
47.2
41.9
Land sale
21.4
–
2,464.3
2,550.2
Included within revenue is £343.2 million (2023: £396.0 million) of customer deposits, received in prior years, for
units that legally completed in the year. Included within commercial revenue is £14.0 million (2023: £18.1 million)
of revenue recognised in relation to the stage of completion of the contract. Included within residential revenue is
£17.0 million (2023: £15.2 million) of revenue recognised in relation to the stage of completion of the contract.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
2.2 Segmental disclosure
Operating segments are identified in a manner consistent with the internal reporting provided to the chief
operating decision maker. The Group determines its reportable segments having regard to permitted
aggregation criteria with the principal condition being that the operating segments should have similar
economic characteristics.
The Group is engaged in residential-led, mixed use property development, comprising private and affordable
residential revenue and commercial revenue.
For the purposes of determining its operating segments, the chief operating decision maker has been identified
as the Executive Committee of the Board. This Committee approves investment decisions, allocates the Group’s
resources and reviews the internal reporting in order to assess performance.
The Group has determined that its operating segments are the management teams that report into the Executive
Committee of the Board. These management teams are all engaged in residential-led, mixed use development
in the United Kingdom and, having regard to the aggregation criteria in IFRS 8, the Group has one reportable
operating segment.
For the purpose of monitoring segment performance and allocating resources between segments, all assets are
considered to be attributable to residential-led, mixed use property development.
2.3 Net finance costs
2024
£m
2023
£m
Finance income
53.9
23.1
Finance costs
Interest payable on borrowings and non-utilisation fees
(29.2)
(21.9)
Amortisation of facility fees
(2.0)
(1.7)
Other finance costs
(10.7)
(10.1)
(41.9)
(33.7)
Net finance income /(costs)
12.0
(10.6)
Finance income predominantly represents interest earned on cash deposits. Other finance costs represent imputed
interest on land purchased on deferred settlement terms and lease interest.
2.4 Profit before taxation
Expenditure recorded in inventory is expensed through cost of sales at the time of the related property
sale. The amount of cost related to each property includes its share of the overall site costs including, where
relevant, its share of forecast costs to complete. See inventories note 2.12 for further disclosures on the key
estimates and judgements around cost recognition.
Net operating expenditure is recognised in respect of goods and services received when supplied in
accordance with contractual terms. Provision is made when an obligation exists for a future liability in respect
of a past event and where the amount of the obligation can be reliably estimated.
Government grants are recognised when there is reasonable assurance that the Group will comply with the
conditions attached to them and the grants will be received. Grants related to assets are deducted from the
carrying value of the asset, and are recognised in the Income Statement so as to match with the related costs
they are intended to compensate for.
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2 Results for the year continued
2.4 Profit before taxation continued
Profit before taxation is stated after charging the following amounts:
2024
£m
2023
£m
Staff costs (note 2.5)
280.5
304.0
Depreciation on property, plant and equipment (note 2.9)
2.3
3.4
Depreciation on right-of-use assets (note 2.10)
2.5
2.2
Loss on sale of property, plant and equipment
5.2
3.7
Fees paid and payable to the Company’s auditor for the audit
of the Group and Parent Company
1.4
1.2
Fees paid and payable to the Company’s auditor for other services:
Audit of the Company’s subsidiaries and joint ventures
0.1
0.1
Audit related assurance services
0.1
0.1
Non-audit related assurance services
0.1
0.1
The value of inventories expensed and included in the cost of sales is £1,757.7 million (2023: £1,760.4 million).
Government grants of £44.7 million (2023: £13.3 million) were received in the year relating to the provision of
highway infrastructure, for which all performance conditions were satisfied. This amount is netted against inventory
and no amount has been recorded in the Income Statement during the year (2023: £nil).
Fees incurred in the year to the Group’s current auditor for audit and non-audit related assurance services relate to
the interim review and assurance services related to carbon emissions and compliance with the Green Financing
Framework.
2.5 Directors and employees
Profit before taxation is stated after charging the following amounts:
2024
£m
2023
£m
Staff costs:
Wages and salaries
233.1
253.8
Social security costs
30.0
32.5
Share based payments – equity settled
7.1
3.0
Share based payments – cash settled
–
4.6
Pension costs
10.3
10.1
280.5
304.0
The average monthly number of persons employed by the Group during the year was 2,717 (2023: 2,973).
Key management compensation
Key management comprises the Executive Members of the Board, as they are considered to have the authority
and responsibility for planning, directing and controlling the activities of the Group. Details of Directors’
emoluments included in the Income Statement are as follows:
2024
£m
2023
£m
Directors’ remuneration
1.4
2.2
Amount charged under long-term incentive schemes
3.1
3.1
Company contributions to the defined contribution pension schemes
–
0.1
4.5
5.4
The Directors’ Remuneration Report includes disclosure of the gains made by Directors on the exercise of share
options during the year, which were £9.8 million (2023: £14.4 million) in aggregate.
The number of Directors accruing benefits under defined contribution pension schemes in the year was one
(2023: one).
K Whiteman, J Tibaldi and P Vallone stepped down from the Board on 8 September 2023 and remuneration
amounts disclosed in the table is to the date of stepping down from the Board.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Equity settled share based payments
Where the Company operates equity settled share based compensation plans, the fair value of the employee
services received in exchange for the grant of the options is recognised as an expense. The total amount to be
expensed over the vesting period is determined by reference to the fair value of the options granted, taking
into account only service and non-market conditions.
At each Balance Sheet date, the Group revises its estimate of the number of options that are expected to
vest. It recognises the impact of the revision to original estimates, if any, in the Income Statement, with a
corresponding adjustment to equity.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal
value) and share premium when the options are exercised.
The Group operates three (2023: three) equity settled share based payment schemes. The charge to the Income
Statement in respect of share based payments in the year relating to grants of share options awarded are:
•
2011 Long-Term Incentive Plan (2011 LTIP) of £1.8 million (2023: £2.1 million)
•
2022 Long-Term Option Plan (2022 LTOP) of £3.7 million (2023: £0.7 million)
•
Restricted Share Plan (RSP) of £1.6 million (2023: £0.2 million)
The charge to the Income Statement attributable to key management was £3.1 million (2023: £3.1 million).
The charge to the reserves during the year in respect of employee share schemes was £0.8 million (2023: £4.5
million), resulting from the non-cash IFRS 2 charge for the year.
There were nil exercisable share options at the end of the year (2023: nil). During the year:
•
481,857 options vested under the 2011 LTIP (2023: 568,761) and nil options lapsed (2023: 870,081)
•
Nil options vested under the 2022 LTOP (2023: nil) and 90,000 options lapsed (2023: nil)
2011 Long-Term Incentive Plan
The 2011 LTIP was approved by shareholders at the 2011 AGM. The 2011 LTIP is designed to incentivise management
to both deliver long-term shareholder returns and create value in the ongoing business. Under the plan eligible
employees are granted options which will only vest if certain performance conditions are satisfied.
The current term of the plan runs for 14 years, with the final options due to vest in September 2025. The original
scheme was due to run until September 2021, but at the 2019 AGM the scheme was extended, for eligible
employees, by four years to September 2025.
The amount of options that vest is dependent on a shareholder return hurdle and, for certain employees, the
remuneration caps in place. Each year options can vest up to the value of their remuneration cap. Any options
prevented from vesting due to the caps are banked, and vest in equal tranches from September 2022 to 2025.
Additional returns equivalent to £2 per annum (approximately £283 million) must be returned to shareholders from
2022 to 2025 in order for the banked options to vest.
Options granted under the plan are for nil consideration and carry no dividend or voting rights. The original option
price was £16.34, which equated to £2.3 billion of shareholder return that needed to be returned to shareholders
over the original term of the LTIP to 2021. The option price for each tranche was reduced by the value of dividend
paid each year, but fixed at 30 September 2021 for subsequent tranches vesting in 2022 to 2025. The fixed option
price for tranches vesting from September 2022 to 2025 is £5.30.
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2 Results for the year continued
2.5 Directors and employees continued
Sale restrictions are in place which provide a maximum of 10% of the cumulative balance of the shares earned to
be sold each year.
The table below summarises the movement in options under the 2011 LTIP during the year:
2024
2023
Option price per
share
£
Number of
options
No.
Option price per
share
£
Number of
options
No.
As at 1 May
–
2,910,847
–
4,349,689
Exercised during the year
5.30
(481,857)
5.30
(568,761)
Total options lapsed during the year
–
–
–
(870,081)
As at 30 April
–
2,428,990
–
2,910,847
The historic options vested, options banked and the option price are shown in the table below:
Vesting date
2024
Option price
£
Share options
vested
No.
Options at
30 April 2024
30 September 2016
10.00
5,719,166
–
30 September 2017
8.63
892,487
1,163,737
30 September 2018
7.73
990,955
1,231,409
30 September 2019
7.46
926,265
1,202,514
30 September 2020
5.39
836,466
1,096,471
30 September 2021
5.30
815,903
982,628
30 September 2022
5.30
568,761
–
30 September 2023
5.30
481,857
–
Banked options vested
–
–
(1,050,618)
Banked options lapsed
–
–
(2,197,151)
Total
–
–
2,428,990
Fair value of 2011 LTIP options
The assessed fair value of the original options granted, determined using the current market pricing model, was
£3.17. The inputs into the current market pricing model were as follows:
Inputs
Grant date
5 September 2011
Final vesting date
30 September 2021
Share price at date of grant (p)
1,236
Exercise price
£nil
Discount rate (Group’s cost of capital over original vesting period at the grant date)
6.3%
Modifications to the 2011 LTIP, approved at the 2019 AGM, were considered to be non-beneficial due to the
extended service period and requirement for additional shareholder returns. Therefore, there was no impact on the
fair value of the options or accounting treatment applied.
2022 Long-Term Option Plan (LTOP)
The LTOP was approved by shareholders at the 2022 AGM. The LTOP is designed to ensure the remuneration
policy is as closely aligned to the Company’s strategy as possible and rewards management for enhancing value
for shareholders over the long term. Under the plan, eligible employees are awarded a one-off grant of options
with an initial exercise price of £48.50. Participation in the plan is at the discretion of the Remuneration Committee.
Vesting will occur in five equal tranches between September 2026 and September 2030, with a holding restriction
of at least five years from grant.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
The initial exercise price of the options increases by £2.50 per year for vesting dates from September 2027
onwards. As such, the exercise price for the options granted (prior to deductions for dividends as referenced
below) is as follows, which is the only performance condition applied to the plan in addition to continued
employment:
Tranche
Percentage of LTOP Award
Vesting date
Minimum exercise price
(prior to reductions for
shareholder distribution)
1
20%
30 September 2026
£48.50
2
20%
30 September 2027
£51.00
3
20%
30 September 2028
£53.50
4
20%
30 September 2029
£56.00
5
20%
30 September 2030
£58.50
Dividends or other distributions to shareholders (other than share buy-backs) are deducted from the exercise
price.
There are caps in place in relation to all options granted. Any options prevented from vesting due to the caps are
lapsed.
The table below summaries the movement in options under the 2022 LTOP during the year:
2024
2023
Number of options
No.
Number of options
No.
As at 1 May
4,360,000
–
Granted during the year
-
4,360,000
Lapsed during the year
(90,000)
–
As at 30 April
4,270,000
4,360,000
Fair value of 2022 LTOP options
The assessed fair value of the options granted, determined using a Monte Carlo simulation model, was £19.35
million. The inputs into the model for the three grant dates were as follows:
Grant date
9 Feb 2023
10 Mar 2023
21 Mar 2023
Number of options
2,400,000
350,000
1,610,000
Share price at grant date (p)
4,308
4,039
4,070
Exercise price
Initial exercise prices from £48.50 for Tranche 1, increasing by £2.50
for each Tranche to £58.50 for Tranche 5
Dividend yield
0%
Risk free interest rate
3.26%
3.47%
3.22%
Share price volatility
30%
Expected life
Between circa 3.5 years (Tranche 1) and 7.5 years (Tranche 2) from
grant
Restrictive Share Plan (RSP)
The RSP was approved by shareholders at the 2022 AGM. The RSP is designed to incentivise management
to deliver long-term performance. The RSP is an annual restrictive share award with the first awards granted
in September 2022, vesting in 2026 with a further one year holding period. Participation in the plan is at the
discretion of the Remuneration Committee.
Annual awards are determined by the Remuneration Committee, however the maximum number of shares under
the RSP awards granted to participants will not exceed 175% of the salary of the CEO and 150% of the salary of all
other participating employees.
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2 Results for the year continued
2.5 Directors and employees continued
The vesting of awards is subject to remaining in service and the following two underpin conditions:
i) The average Return on Equity over the four prior financial years must be at least 15%, commencing with the
financial year in which the RSP Awards are granted; and
ii) Up to 20% of the award will be forfeited in the event of unsatisfactory progress against strategic and ESG
priorities over the relevant vesting period.
The vesting of awards is restricted to the level of each employee’s remuneration cap. The remuneration cap is
first applied to the 2022 LTOP to the extent that total remuneration would exceed the cap, followed by the RSP if
required. Any RSP awards in excess of the total remuneration cap will lapse immediately.
The table below summarises the movement in options under the RSPs:
2024
2023
Number of options
No.
Number of options
No.
As at 1 May
93,123
–
Granted during the year
96,826
93,123
Lapsed during the year
–
–
As at 30 April
189,949
93,123
Fair value of RSPs
The fair values of RSP awards are equal to the share price at grant as these awards are not subject to market-
based performance conditions and they attract dividend equivalents. The values are fixed at grant.
The total fair value of the RSP awards granted during the year was £4.06 million (2023: £3.98 million).
Cash settled share based payments
The cost of cash settled transactions is recognised as an expense over the vesting period measured by
reference to the fair value of the corresponding liability which is recognised on the Statement of Financial
Position. The liability is remeasured at fair value at each Balance Sheet date until settlement with changes in
fair value recognised in the Income Statement.
Pensions
The Group accounts for pensions under IAS 19 ‘Employee Benefits’. The Group has both defined benefit and
defined contribution plans. The defined benefit plan was closed to future accrual with effect from 1 April 2007.
For the defined benefit scheme, the obligations are measured using the projected unit credit method. The
calculation of the net obligation is performed by a qualified actuary. The operating and financing costs of
these plans are recognised separately in the Income Statement; service costs are set annually on the basis
of actuarial valuations of the scheme and financing costs are recognised in the period in which they arise.
Actuarial gains and losses are recognised immediately in the Statement of Comprehensive Income.
Pension contributions under defined contribution schemes are charged to the Income Statement as they fall
due.
Defined contribution plan
Contributions amounting to £9.1 million (2023: £8.5 million) were paid into the defined contribution schemes
during the year. There were £1.0 million of contributions outstanding to the scheme at 30 April 2024 (2023:
£0.2 million).
Defined benefit plan
As at 30 April 2024, the Group operated one defined benefit pension scheme which was closed to future accrual
with effect from 1 April 2007. This is a separate Trustee administered fund holding the pension plan assets to meet
long-term pension liabilities for some 154 past employees. The level of retirement benefit is principally based on
salary earned in the last three years of employment prior to leaving active service and is linked to changes in
inflation up to retirement.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
The Berkeley Final Salary Plan is subject to an independent actuarial valuation at least every three years. The
most recent valuation was carried out as at 30 April 2022 and finalised on 30 June 2023. The method adopted in
the 2022 valuation was the projected unit credit method, which assumed no allowance for over performance on
investments both prior to and after retirement and inflation linked pension increases derived at each term using
Black Scholes Methodology with a volatility assumption of 1.40% per annum. The market value of the Berkeley
Final Salary Plan assets as at 1 May 2022 was £22.9 million and covered 117% of the scheme’s liabilities. The Group
made additional voluntary contributions of £0.6 million during the year (2023: £0.6 million).
Following the High Court ruling on 26 October 2018, regarding the equalisation of Guaranteed Minimum Pension
(GMP) benefit, the plan was required to adjust benefits to remove the inequalities between the GMP benefits
awarded to males and females. On 20 November 2020, the High Court issued a supplementary ruling in respect
of GMP equalisation with regard to members who transferred out of the scheme prior to the ruling. The plan has
not yet completed a full review of the impact of GMP equalisation and no additional costs have been recognised
during the year (2023: £nil). In prior years an amount of £0.7 million has been allowed as a post service cost.
For the purpose of IAS 19, the 2022 valuation was updated for 30 April 2024.
The most significant risks to which the plan exposes the Group are as follows:
• Inflation risk: A rise in inflation rates will lead to higher plan liabilities as a large proportion of the defined benefit
obligation is indexed in line with price inflation. This effect will be limited due to caps on inflationary increases to
protect the plan against extreme inflation.
• Investment risk: There is a risk that future investment performance fails to generate expected returns.
• Employer covenant risk: There is a risk that the strength of the employer covenant materially weakens which may
impact the ability to support the fund.
• Mortality risk: An increase in life expectancy would result in an increase to plan liabilities as a significant
proportion of the pension schemes’ obligations are to provide benefits for the life of the member.
The amounts recognised in the Statement of Financial Position are determined as follows:
2024
£m
2023
£m
Present value of defined benefit obligations
(14.3)
(14.5)
Fair value of plan assets
15.9
16.2
Net surplus recognised in the Statement of Financial Position
1.6
1.7
Defined benefit obligations
Fair value plan assets
Net defined benefit asset
2024
£m
2023
£m
2024
£m
2023
£m
2024
£m
2023
£m
Balance at 1 May
(14.5)
(19.1)
16.2
21.4
1.7
2.3
Included in Income Statement:
Net interest
(0.7)
(0.5)
0.8
0.6
0.1
0.1
Included in Other Comprehensive Income:
Re-measurements:
Actuarial gain/(loss) arising from:
Demographic assumptions
0.2
0.4
–
–
0.2
0.4
Scheme experience
(0.3)
(0.1)
–
–
(0.3)
(0.1)
Financial assumptions
0.5
4.3
–
–
0.5
4.3
Return on plan assets
–
–
(1.2)
(5.9)
(1.2)
(5.9)
Other:
Contributions by the employer
–
–
0.6
0.6
0.6
0.6
Benefits paid out
0.5
0.5
(0.5)
(0.5)
–
–
Balance at 30 April
(14.3)
(14.5)
15.9
16.2
1.6
1.7
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2 Results for the year continued
2.5 Directors and employees continued
Cumulative actuarial gains and losses recognised in equity:
2024
£m
2023
£m
Cumulative amounts of losses recognised in the Statement of Comprehensive Income at 1 May
(7.7)
(6.4)
Net actuarial loss recognised in the year
(0.7)
(1.3)
Cumulative amounts of losses recognised in the Statement of Comprehensive Income
at 30 April
(8.4)
(7.7)
The fair value of the assets was as follows:
30 April 2024
Long-term value
£m
30 April 2023
Long-term value
£m
Diversified growth fund
3.3
3.2
Absolute return bonds
4.3
4.1
Liquidity driven investment
4.4
4.4
Corporate bonds
1.8
1.7
Cash
2.1
2.8
Fair value of plan assets
15.9
16.2
All equity securities and government bonds have quoted prices in active markets. All Government bonds are issued
by European Governments and are AAA- or AA- rated. All other plan assets are not quoted in an active market.
History of asset values
30 April
2024
£m
30 April
2023
£m
30 April
2022
£m
30 April
2021
£m
30 April
2020
£m
Fair value of plan assets
15.9
16.2
21.4
26.4
23.0
Present value of defined benefit obligations
(14.3)
(14.5)
(19.1)
(23.2)
(22.4)
Net surplus in the plan
1.6
1.7
2.3
3.2
0.6
Actuarial assumptions
The major assumptions used by the actuary for the 30 April 2024 valuation were as follows:
30 April
2024
30 April
2023
Discount rate
5.20%
4.85%
Inflation assumption (RPI)
3.60%
3.40%
Inflation assumption (CPI)
3.15%
2.85%
Rate of increase in pensions in payment post 97 (pre-97 receive 3% p.a. increases)
3.90%
3.85%
The mortality assumptions are the standard S3PMA/S3PFA_M CMI_2022_X (1.25%) (2023: S3PMA/S3PFA_M
CMI_2021_X (1.25%)) base table for males and females, both adjusted for each individual’s year of birth to allow
for future improvements in mortality rates. The life expectancy of male and female pensioners (now aged 65)
retiring at age 65 on the Balance Sheet date is 20.9 years and 22.9 years respectively (2023: 21.3 and 23.3 years
respectively). The life expectancy of male and female deferred pensioners (now aged 45) retiring at age 65 after
the Balance Sheet date is 22.2 years and 24.4 years respectively (2023: 22.6 and 24.8 years respectively).
Sensitivity analysis
The calculation of the defined benefit obligation is sensitive to the assumptions set out above. The following table
summarises how the impact on the defined benefit obligation at the end of the reporting period would have
increased as a result of a change in the respective assumptions.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Change in
assumption
Change in
defined benefit
obligation
Discount rate
+0.5% p.a.
£(0.8)m
Rate of inflation
+0.25% p.a.
£0.2m
Rate of mortality
+1 year
£0.5m
These calculations provide an approximate guide to the sensitivity of results and may not be as accurate as a full
valuation carried out on these assumptions. In practice, changes in some of the assumptions are correlated and so
each assumption change is unlikely to occur in isolation, as shown above.
Funding
The Group expects to pay £0.6 million in contributions to its defined benefit plan in the year ending 30 April 2025,
albeit it has no obligation to do so (2024: £0.6 million).
2.6 Taxation
The Group applies IAS 12 ‘Income Taxes’ in accounting for taxes on income. Income tax payable on taxable
profits (current tax) is recognised as an expense in the periods in which the profits arise. In the autumn Budget
2021, a 4% Residential Property Developer Tax (RPDT) was introduced and has been effective from 1 April
2022. RPDT is intended to fund the cost of remedial cladding works borne by the Government and is treated
as income tax.
The taxation expense represents the sum of current tax payable, including RPDT, and deferred tax. Current tax
and deferred tax are provided at the amounts expected to be paid (or received) using the tax rules and laws
that have been enacted, or substantially enacted, by the reporting date.
The tax charge for the year is as follows:
2024
£m
2023
£m
Current tax (including RPDT)
UK current tax payable
(166.0)
(140.5)
Adjustments in respect of previous years
6.4
(1.4)
(159.6)
(141.9)
Deferred tax (including RPDT)
Deferred tax movements
2.8
2.5
Adjustments in respect of previous years
(2.9)
1.1
(0.1)
3.6
(159.7)
(138.3)
Tax on items recognised directly in equity is as follows:
2024
£m
2023
£m
Deferred tax in respect of employee share schemes (note 2.17)
2.5
(9.8)
Corporation tax is calculated at 25% (2023: 19.5%) of the estimated assessable profit for the year. Taking into
account RPDT at a rate of 4%, the weighted statutory rate of corporate income tax is 29% for the year (2023:
23.5%).
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2 Results for the year continued
2.6 Taxation continued
The tax charge assessed for the year differs from the weighted statutory rate of corporate income tax of 29%
(2023: 23.5%). The differences are explained below:
2024
£m
2023
£m
Profit before tax
557.3
604.0
Tax on profit at standard UK corporation tax rate (including RPDT)
161.6
141.9
Effects of:
• Expenses not deductible for tax purposes
1.0
1.8
• Tax effect of share of results of joint ventures
0.6
(0.2)
• Adjustments in respect of previous years
(3.5)
0.3
• Effect of change in rate of tax (note 2.17)
–
(4.7)
• Other
–
(0.8)
Tax charge
159.7
138.3
The Group has an overall tax charge for the year of £159.7 million (2023: £138.3 million) including UK current tax
payable of £166.0 million (2023: £140.5 million). The effective tax rate for the year is 28.7% (2023: 22.9%) and
includes a £2.9 million credit arising from the remeasurement, in part, of the Group’s UK deferred tax assets.
On 20 December 2021, the OECD published its proposals in relation to Global Anti-Base Erosion Rules, which
provide for an internationally co-ordinated system of taxation to ensure that large multinational groups pay a
minimum level of corporate income tax in countries where they operate. On 23 March 2023, the UK Government
introduced legislation in Finance (No. 2) Act 2023 to implement Pillar 2 of the OECD/G20 inclusive framework, this
was enacted on 11 July 2023. The new rules are expected to apply to the Berkeley Group for the accounting period
ended 30 April 2025 onwards. The Group has undertaken an initial review and expects to meet the transitional
safe harbour provisions meaning the top up tax will not be payable. There is no impact on the Group’s results for
the year ended 30 April 2024. The Group applies the exception to recognising and disclosing information about
deferred tax assets and liabilities related to pillar 2 income taxes, as provided in the amendments to IAS 12.
2.7 Earnings per ordinary share
Basic earnings per share (EPS) are calculated as the profit for the financial year attributable to shareholders of the
Group divided by the weighted average number of shares in issue during the year.
For the year ended 30 April
2024
2023
Profit attributable to shareholders (£m)
397.6
465.7
Weighted average no. of shares (million)
106.3
109.1
Basic EPS (pence)
373.9
426.8
For diluted earnings per ordinary share, the weighted average number of shares in issue is adjusted to assume the
conversion of all potentially dilutive ordinary shares.
At 30 April 2024, the Group had two (2023: one) categories of potentially dilutive ordinary shares: 0.7 million
(2023: 1.0 million) share options under the 2011 LTIP and 0.1 million (2023: nil) under the Restrictive Share Plan.
A calculation is undertaken to determine the number of shares that could have been acquired at fair value based
on the aggregate of the exercise price of each share option and the fair value of future services to be supplied to
the Group which is the unamortised share based payments charge. The difference between the number of shares
that could have been acquired at fair value and the total number of options is used in the diluted EPS calculation.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 30 April
2024
2023
Profit used to determine diluted EPS (million)
397.6
465.7
Weighted average number of shares (million)
106.3
109.1
Adjustments for:
• Share options – 2011 LTIP
0.7
1.1
• Share options – Restrictive Share Plan
0.1
–
Shares used to determine diluted EPS (million)
107.1
110.2
• Diluted EPS (pence)
371.1
422.4
2.8 Intangible assets
Where the cost of acquiring new and additional interests in subsidiaries, joint ventures and businesses exceeds
the fair value of the net assets acquired, the resulting premium on acquisition (goodwill) is capitalised and its
subsequent measurement is based on annual impairment reviews and impairment reviews performed where
an impairment indicator exists, with any impairment losses recognised immediately in the Income Statement.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to
those cash-generating units or groups of cash-generating units that are expected to benefit from the business
combination in which the goodwill arose.
Goodwill
£m
Cost:
At 1 May 2023 and 30 April 2024
17.2
Accumulated impairment:
At 1 May 2023 and 30 April 2024
–
Net book value:
At 1 May 2023 and 30 April 2024
17.2
Cost:
At 1 May 2022 and 30 April 2023
17.2
Accumulated impairment:
At 1 May 2022 and 30 April 2023
–
Net book value:
At 1 May 2022 and 30 April 2023
17.2
The goodwill balance relates solely to the acquisition of the 50% of the ordinary share capital of St James Group
Limited, completed on 7 November 2006, that was not already owned by the Group. The goodwill balance is
tested annually for impairment. The recoverable amount has been determined on the basis of the value in use of
the business using the current five year pre-tax forecasts. Key assumptions are as follows:
(i) cash flows beyond a five year period are not extrapolated; and
(ii) pre-tax discount rate of 13.1% (2023: 13.5%) based on the Group’s weighted average cost of capital.
The Directors have identified no reasonably possible change in a key assumption which would give rise to an
impairment charge.
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104–164 | Corporate Governance
2 Results for the year continued
2.9 Property, plant and equipment
Property, plant and equipment is carried at historic purchase cost less accumulated depreciation. Cost includes
the original purchase price of the asset and the costs attributable to bringing the asset to its working condition
for its intended use. Depreciation is provided to write off the cost of the assets on a straight line basis to their
residual value over their estimated useful lives at the following annual rates:
Freehold buildings
25 – 50 years
Fixtures, fittings and equipment
3 – 12 years
Motor vehicles
4 years
Freehold property disclosed in the notes to the Consolidated Financial Statements consists of both freehold
land and freehold buildings. No depreciation is provided on freehold land. Computer equipment is included
within fixtures and fittings. The assets’ residual values, carrying values and useful lives are reviewed on an
annual basis and adjusted if appropriate at each Balance Sheet date. Where an impairment is identified, the
recoverable amount of the asset is identified and an impairment loss, where appropriate, is recognised in the
Income Statement.
Subsequent costs are included in the assets’ carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is de-
recognised. All other repairs and maintenance are charged to the Income Statement during the financial period
in which they are incurred.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are
recognised within net operating expenses in the Income Statement.
Freehold
property
£m
Fixtures, fittings
& equipment
£m
Motor vehicles
£m
Total
£m
Cost:
At 1 May 2023
30.9
15.2
2.1
48.2
Additions
–
0.6
0.8
1.4
Disposals
–
(10.0)
(0.6)
(10.6)
At 30 April 2024
30.9
5.8
2.3
39.0
Accumulated depreciation:
At 1 May 2023
4.4
8.2
1.0
13.6
Charge for the year
0.7
1.4
0.2
2.3
Disposals
–
(4.6)
(0.3)
(4.9)
At 30 April 2024
5.1
5.0
0.9
11.0
Net book value:
At 1 May 2023
26.5
7.0
1.1
34.6
At 30 April 2024
25.8
0.8
1.4
28.0
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Freehold
property
£m
Fixtures, fittings
& equipment
£m
Motor vehicles
£m
Total
£m
Cost:
At 1 May 2022
30.5
21.0
1.9
53.4
Additions
0.4
1.1
0.5
2.0
Disposals
–
(6.9)
(0.3)
(7.2)
At 30 April 2023
30.9
15.2
2.1
48.2
Accumulated depreciation:
At 1 May 2022
3.6
8.3
1.0
12.9
Charge for the year
0.8
2.4
0.2
3.4
Disposals
–
(2.5)
(0.2)
(2.7)
At 30 April 2023
4.4
8.2
1.0
13.6
Net book value:
At 1 May 2022
26.9
12.7
0.9
40.5
At 30 April 2023
26.5
7.0
1.1
34.6
2.10 Right-of-use assets and lease liabilities
The lease liability is initially measured at the present value of the remaining lease payments, discounted using
the Group’s incremental borrowing rate. The Group determines the borrowing rate from external financing
sources and adjusts this to reflect the term of the lease and the type of assets subject to the lease. The lease
term comprises the non-cancellable period of the contract, together with periods covered by an option to
extend the lease where the Group is reasonably certain to exercise that option. Subsequently, the lease liability
is measured by increasing the carrying amount to reflect interest on the lease liability, and reducing it by the
lease payments made. The lease liability is remeasured when the Group changes its assessment of whether it
will exercise an extension or termination option.
Right-of-use assets are initially measured at cost, comprising the initial measurement of the lease liability, plus
any initial direct costs and an estimate of asset retirement obligations, less any lease incentives. Subsequently,
right-of-use assets are measured at cost, less any accumulated depreciation and any accumulated impairment
losses, and are adjusted for certain re-measurements of the lease liability. Depreciation is calculated on a
straight line basis over the length of the lease.
The Group has elected to apply exemptions for short-term leases and leases for which the underlying asset is
of low value. For these leases, payments are charged to the Income Statement on a straight line basis over the
term of the relevant lease.
Right-of-use assets are presented separately in non-current assets on the face of the Consolidated Statement
of Financial Position and lease liabilities are shown separately on the Consolidated Statement of Financial
Position in current liabilities and non-current liabilities depending on the length of the lease term.
Leasehold
property
£m
Motor vehicles
£m
Total
£m
Cost:
At 1 May 2023
12.1
0.8
12.9
Additions
1.5
0.1
1.6
Disposals
–
–
–
At 30 April 2024
13.6
0.9
14.5
Accumulated depreciation:
At 1 May 2023
7.1
0.6
7.7
Charge for the year
2.4
0.1
2.5
Disposals
–
–
–
At 30 April 2024
9.5
0.7
10.2
Net book value:
At 1 May 2023
5.0
0.2
5.2
At 30 April 2024
4.1
0.2
4.3
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104–164 | Corporate Governance
2 Results for the year continued
2.10 Right-of-use assets and lease liabilities continued
Lease liabilities included in the Consolidated Statement of Financial Position:
2024
£m
2023
£m
Current
2.1
2.2
Non-current
2.3
2.9
Total
4.4
5.1
Amounts recognised in the Consolidated Income Statement:
2024
£m
2023
£m
Depreciation charged on right-of-use assets – Office buildings
2.4
2.4
Depreciation charged on right-of-use assets – Motor vehicles
0.1
0.1
Interest on lease liabilities
0.1
0.1
Total
2.6
2.6
The total cash outflow for leases in 2024 was £2.3 million (2023: £2.3 million).
2.11 Investments in joint ventures
Joint ventures are accounted for using the equity method (equity accounted investees) and are initially
recognised at cost. The Consolidated Financial Statements include the Group’s share of the total
comprehensive income and equity movements of equity accounted investees, from the date that joint control
commences until the date that joint control ceases. When the Group’s share of losses exceeds its interest
in an equity accounted investee, the Group’s carrying amount is reduced to £nil and recognition of further
losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or
made payments on behalf of an investee. Management fees received and other recharges to joint ventures are
recorded in the Income Statement.
2024
£m
2023
£m
Loans
53.8
40.9
Share of post acquisition reserves
173.2
182.5
227.0
223.4
Details of the joint ventures are provided in notes 2.25 and 2.26.
2024
£m
2023
£m
At 1 May
223.4
190.4
Group’s share of profit after taxation for the year
65.6
96.3
Increase in loans to joint ventures
12.9
11.6
Dividends from joint ventures (St Edward)
(74.9)
(74.9)
At 30 April
227.0
223.4
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
The Group’s share of joint ventures’ net assets, income and expenses is comprised as follows:
2024
St Edward
£m
Other
£m
Total
£m
Cash and cash equivalents
229.8
0.4
230.2
Other current assets
287.0
61.3
348.3
Current assets
516.8
61.7
578.5
Current liabilities
(109.2)
(0.6)
(109.8)
Non–current financial liabilities*
(59.8)
(62.5)
(122.3)
Net assets/(liabilities) (at 100%)
347.8
(1.4)
346.4
Group share of net assets/(liabilities) (50%)
173.9
(0.7)
173.2
Loans to joint ventures
22.6
31.2
53.8
Total interest in joint ventures
196.5
30.5
227.0
Revenue
326.8
–
326.8
Costs
(204.4)
(0.3)
(204.7)
Operating profit/(loss)
122.4
(0.3)
122.1
Net finance income/(costs)
10.4
(0.5)
9.9
Profit/(loss) before taxation for the year
132.8
(0.8)
132.0
Tax charge
(0.8)
–
(0.8)
Profit/(loss) after taxation and total comprehensive income/(expense) (100%)
132.0
(0.8)
131.2
Group share of post tax profit/(loss) of joint ventures (50%)
66.0
(0.4)
65.6
* Non-current financial liabilities include amounts owed to joint venture partners
The Other joint ventures in the table comprise asset specific 50/50 joint ventures – Latimer Developments Limited
and SEGRO Properties Limited.
2023
St Edward
£m
Other
£m
Total
£m
Cash and cash equivalents
248.6
0.2
248.8
Other current assets
412.0
35.9
447.9
Current assets
660.6
36.1
696.7
Current liabilities
(236.4)
(0.1)
(236.5)
Non–current financial liabilities*
(58.8)
(36.4)
(95.2)
Net assets/(liabilities) (at 100%)
365.4
(0.4)
365.0
Group share of net assets/(liabilities) (50%)
182.7
(0.2)
182.5
Loans to joint ventures
22.6
18.3
40.9
Total interest in joint ventures
205.3
18.1
223.4
Revenue
534.4
(0.1)
534.3
Costs
(344.5)
(0.4)
(344.9)
Operating profit/(loss)
189.9
(0.5)
189.4
Net finance income/(costs)
4.1
(0.1)
4.0
Profit/(loss) before taxation for the year
194.0
(0.6)
193.4
Tax charge
(0.8)
–
(0.8)
Profit/(loss) after taxation and total comprehensive income/(expense) (100%)
193.2
(0.6)
192.6
Group share of post tax profit/(loss) of joint ventures (50%)
96.6
(0.3)
96.3
* Non-current financial liabilities include amounts owed to joint venture partners
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104–164 | Corporate Governance
2 Results for the year continued
2.12 Inventories
Property in the course of development and completed units are valued at the lower of cost and net realisable
value. Direct cost comprises the cost of land, material and development costs but excludes indirect overheads.
Provision is made, where appropriate, to reduce the value of inventories and work in progress to their net
realisable value.
Land purchased for development, including land in the course of development, is initially recorded at cost.
Where such land is purchased on deferred settlement terms, and the cost differs from the amount that
will subsequently be paid in settling the liability, this difference is charged as a finance cost in the Income
Statement over the period to settlement.
As residential development is largely speculative by nature, not all inventories are covered by forward sales
contracts. Furthermore, due to the nature of the Group’s activity and in particular, the scale of its developments
and the length of the development cycle, the Group has to allocate site-wide development costs between units
being built and/or completed in the current year and those for future years. It also has to forecast the costs to
complete on such developments.
In making such assessments and allocations in determining each development’s site margin which is used
to estimate cost of sales when revenue is recognised for each unit, there is a degree of inherent estimation
uncertainty. In particular due to the need to take account of future direct input costs, sales prices and the need
to allocate all site-wide costs on an appropriate basis to reflect the overall level of development risk, including
planning risk. The Group has established internal controls designed to effectively assess and centrally review
inventory carrying values and ensure the appropriateness of the estimates made. These assessments and
allocations evolve over the life of the development in line with the risk profile, and accordingly the margin
recognised reflects these evolving estimates. Similarly, these estimates impact the carrying value of inventory
at each reporting date as this is a function of costs incurred in the year and the allocation of inventory to costs
of sales on each property sold.
An increase or decrease to estimated costs recognised in the year, by virtue of a 1% change to forecast
development margin, would lead to a change in cost of sales and inventory of £17.6 million in the current
financial year (2023: £17.6 million). This sensitivity is based on a reasonably possible scenario and is provided in
the absence of a change to any other factor affecting future gross margins on the Group’s developments, such
as a change in future sales prices.
In addition, the Group has consistently applied its approach to margin recognition in relation to the Group’s
particularly complex, long-term regeneration developments where whole-site costs are accelerated to the
early stages of the development to reflect the greater uncertainty and the evolution of risk over the life of such
developments. These developments, where the development life cycle is typically greater than ten years, are
considered to be particularly susceptible to potential downward shifts in profitability due to the cyclical nature
of the property market and its impact on both revenue and costs. As such, the inherent estimation uncertainty
is increased.
A fundamental principle of the Group’s accounting policy is to reduce the possibility of recognising margin
in the early stages of a development that could subsequently reverse. As such, for these long-term sites with
greatest estimation uncertainty, a greater proportion of whole-site costs is recognised during the earlier stages
of the development up to a point of inflection when such developments are deemed to be sufficiently de-
risked. Subsequent to this inflection point, and should the uncertainties have not materialised, margin would
increase as the visibility over projected revenue and costs across the development improves.
As at 30 April 2024, the greater proportion of whole-site costs recognised in either the current or previous
financial years during the earlier stages of the development for the Group’s particularly complex, long-term
sites amounted to 4% (2023: 4%) of the future estimated revenue for the specific sites. As with all judgements
involving estimation over a long-term horizon, the outcome of future events may affect the eventual
accounting outcome.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
2024
£m
2023
£m
Land not under development
725.8
927.1
Work in progress: Land cost
1,715.3
1,729.2
Total land
2,441.1
2,656.3
Work in progress: Build cost
2,632.4
2,520.0
Completed units
210.4
125.8
Total inventories
5,283.9
5,302.1
The key areas of estimation uncertainty described above are relevant to the work in progress and completed stock
balances as at 30 April 2024.
2.13 Trade and other receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method, less provision for impairment. Expected credit losses are based on the difference
between the contracted cash flows due in accordance with the contract and all the cash flows that the Group
expects to receive, discounted on an approximation of the original effective interest rate. Any expected
credit losses are immaterial. For trade receivables the Group does not track changes in credit risk, but instead
recognises a loss allowance based on lifetime expected credit losses at each reporting date. The carrying
amount of the asset is reduced through the use of an allowance account, and the amount of the loss is
recognised in the Income Statement within net operating expenses. When a trade receivable is not collectible,
it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts
previously written off are credited against net operating expense in the Income Statement.
2024
£m
2023
£m
Trade receivables
72.5
48.2
Other receivables
23.6
22.1
Prepayments and accrued income
23.7
22.0
119.8
92.3
Further disclosures relating to trade receivables are set out in note 2.23.
2.14 Cash and cash equivalents
Cash and cash equivalents comprise cash balances in hand and at the bank, including bank overdrafts
repayable on demand which form part of the Group’s cash management, for which offset arrangements across
Group businesses have been applied where appropriate.
2024
£m
2023
£m
Cash and cash equivalents
1,192.0
1,070.4
Cash and cash equivalents are held at floating interest rates linked to the UK base rate and money market rates, as
applicable.
Cash equivalents comprise amounts placed in fixed term deposit and notice accounts which are all held in order
to meet short-term cash requirements and are subject to an insignificant risk of changes in value. Cash equivalents
include an amount of £210.2 million (2023: £151.9 million) that is accessible between 90 and 120 days.
204 | Berkeley Group 2024 Annual Report
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2 Results for the year continued
2.15 Trade and other payables
New property deposits and on account contract receipts are held within current trade and other payables.
Deposits and on account contract receipts are non-refundable and are recorded as a liability on receipt. They
are released to the Income Statement, as revenue, upon legal completion.
Trade and other payables on normal terms are not interest bearing and are stated at their nominal value which
is considered to be their fair value. Trade payables on extended terms are recorded at their fair value at the
date of acquisition of the asset to which they relate. The discount to nominal value is amortised over the period
of the credit term and charged to finance costs.
Deferred revenue relates to consideration received in advance of units being delivered. Revenue is recognised
in the Income Statement as control is passed to the customer, which has either been determined as the point
of legal completion or, on contracts where the customer controls the property during construction, over time
with reference to the stage of completion.
2024
£m
2023
£m
Current
Trade payables
(736.6)
(602.6)
Deposits and on account contract receipts
(907.7)
(921.3)
Other taxes and social security
(9.5)
(12.3)
Deferred income
(52.9)
(88.4)
Accruals
(171.3)
(177.0)
(1,878.0)
(1,801.6)
Non-current
Trade payables
(683.6)
(863.4)
Total trade and other payables
(2,561.6)
(2,665.0)
The reduction in deferred income of £35.5 million (2023: £59.9 million) in the year has been recorded as revenue in
the Income Statement.
All amounts included above are unsecured. The total of £9.5 million (2023: £12.3 million) for other taxes and social
security includes £4.6 million (2023: £6.2 million) for Employer’s National Insurance provision in respect of share
based payments.
Further disclosures relating to current trade and non-current trade payables are set out in note 2.23.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
2.16 Provisions for liabilities and charges
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past
events, and it is probable that an outflow of resources will be required to settle that obligation, and the amount
has been reliably estimated.
The Group makes assumptions to determine the timing and its best estimate of the quantum of its
construction and other liabilities for which provisions are held.
Provisions include a best estimate of the expected value of its post completion development obligations in
respect of the construction of the Group’s portfolio of complex mixed use property developments which are
expected to be incurred in the ordinary course of business, based on historical experience of the Group’s sites
and current site-specific risks, including matters relating to building fire-safety, but which are uncertain in terms
of timing and quantum. Provisions are discounted to present value where the effect is material.
The Group continually reviews the identified risks that it is aware of for the Group’s portfolio of developments
to ensure that the amount of the provision remains appropriate. The increase in the year relates to post
completion items on a number of sites including matters relating to building fire-safety. The Group continually
reviews its utilisation of this provision and in recognition that the risk of post completion development
obligations reduces over time, releases any unutilised provision to the Income Statement on a systematic basis
across the ten years following completion.
If costs estimated in the provisions are overstated or understated by 10%, this would lead to a change in cost of
sales and provision of £21.0 million in the current financial year (2023: £19.4 million).
Post completion
development
provisions
£m
Other provisions
£m
Total
£m
At 1 May 2023
(189.0)
(4.6)
(193.6)
Utilised
19.1
0.2
19.3
Released
7.8
–
7.8
Charged to the Income Statement
(38.5)
(4.8)
(43.3)
At 30 April 2024
(200.6)
(9.2)
(209.8)
Post completion
development
provisions
£m
Other provisions
£m
Total
£m
At 1 May 2022
(157.2)
(3.8)
(161.0)
Utilised
19.3
0.3
19.6
Released
9.0
0.3
9.3
Charged to the Income Statement
(60.1)
(1.4)
(61.5)
At 30 April 2023
(189.0)
(4.6)
(193.6)
2024
£m
2023
£m
Non-current
(140.7)
(115.1)
Current
(69.1)
(78.5)
Total
(209.8)
(193.6)
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2 Results for the year continued
2.17 Deferred tax
Deferred taxation is the tax expected to be payable or recoverable on differences between the carrying
amounts of assets and liabilities in the financial statements and corresponding tax bases used in the
computation of taxable profit, and is accounted for using the Balance Sheet liability method. Deferred tax
liabilities are generally recognised on all taxable temporary differences. Deferred tax assets are recognised
to the extent that it is probable that taxable profits will be available against which deductible temporary
differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises
from goodwill, or from the initial recognition (except in a business combination) of other assets and liabilities
in a transaction that affects neither the taxable profit nor the accounting profit, or from differences relating to
investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future.
Deferred taxation is calculated at the tax rates that are expected to apply in the period when the liability is
settled or the asset is realised based on tax laws and rates that have been enacted or substantively enacted
at the Balance Sheet date. The carrying value of deferred tax assets is reviewed at each Balance Sheet date
and reduced to the extent that it is no longer probable that sufficient taxable profits will be available against
which taxable temporary differences can be utilised. Deferred taxation is charged or credited to the Income
Statement, except when it relates to items charged or credited directly to reserves, in which case the deferred
taxation is also dealt with in reserves.
Deferred taxation assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when the deferred taxation assets and liabilities relate to income taxes
levied by the same taxation authority on either the taxable entity or different taxable entities where there is an
intention to settle the balances on a net basis.
The movement on the deferred tax account is as follows:
Accelerated
capital
allowances
£m
Unrealised
inventory profit
£m
Other timing
differences
£m
Total
£m
At 1 May 2023
(4.2)
77.7
41.0
114.5
Adjustments in respect of previous years
(0.1)
(1.0)
(1.8)
(2.9)
Credited/(charged) to the Income Statement in the
year
1.8
3.0
(2.0)
2.8
Adjustment in respect of change of tax rate for future
periods
(note 2.6)
–
–
–
–
Credited to Income Statement in the year
1.8
3.0
(2.0)
2.8
Charged to equity in year (note 2.6)
–
–
2.5
2.5
At 30 April 2024
(2.5)
79.7
39.7
116.9
Accelerated
capital
allowances
£m
Unrealised
inventory profit
£m
Other timing
differences
£m
Total
£m
At 1 May 2022
(4.5)
70.9
54.3
120.7
Adjustments in respect of previous years
–
1.9
(0.8)
1.1
Credited/(charged) to the Income Statement in the
year
0.1
2.1
(4.4)
(2.2)
Adjustment in respect of change of tax rate for future
periods
(note 2.6)
0.2
2.8
1.7
4.7
Credited/(charged) to Income Statement in the year
0.3
4.9
(2.7)
2.5
Charged to equity in year (note 2.6)
–
–
(9.8)
(9.8)
At 30 April 2023
(4.2)
77.7
41.0
114.5
Other timing differences primarily relates to deferred tax assets held in relation to long-term incentive schemes,
bonuses and provisions.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Deferred tax is calculated in full on temporary differences at the tax rates that are expected to apply for the period
when the asset is realised and the liability is settled.
All deferred tax assets are available for offset against deferred tax liabilities and hence the net deferred tax asset at
30 April 2024 is £116.9 million (2023: £114.5 million).
Deferred tax assets of £74.6 million (2023: £80.6 million) are expected to be recovered after more than one year.
The carrying value of deferred tax assets is reviewed at each Balance Sheet date and reduced to the extent that
it is no longer probable that there will be sufficient available profits to offset all or part of the asset. There are no
unrecognised deferred tax assets as at 30 April 2024.
The deferred tax credited to equity during the year was as follows:
2024
£m
2023
£m
Deferred tax movement in the year in respect of employee share schemes (note 2.6)
2.5
(9.8)
Cumulative deferred tax credited to equity at 1 May
16.3
26.1
Cumulative deferred tax credited to equity at 30 April
18.8
16.3
2.18 Share capital and share premium
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
Where any Group company purchases the Company’s equity share capital (treasury shares), the consideration
paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity
attributable to the Company’s equity holders until the shares are cancelled, sold or reissued. Where such
shares are subsequently sold or reissued, any consideration received, net of any directly attributable
incremental transaction costs and the related income tax effects, is included in equity attributable to the
Company’s equity holders.
The movements on allotted and fully paid share capital for the Company in the year were as follows:
Ordinary shares
Share capital
Share premium
2024
No ’000
2023
No ’000
2024
£m
2023
£m
2024
£m
2023
£m
Issued
At start of year
116,537
120,590
6.3
6.5
49.8
49.8
Shares cancelled
(1,825)
(4,053)
(0.1)
(0.2)
–
–
At end of year
114,712
116,537
6.2
6.3
49.8
49.8
During the 2024 financial year, 1,825 thousand shares were repurchased (2023: 4,053 thousand) for a total
consideration of £72.3 million, excluding transaction costs (2023: £155.4 million). These shares were subsequently
cancelled.
Each ordinary share of 5.4141 pence is a voting share in the capital of the Company, is entitled to participate in the
profits of the Company and on a winding-up is entitled to participate in the assets of the Company.
On 19 September 2023, 175 thousand ordinary shares (2023: 275 thousand) were issued to the Employee Benefit
Trust.
On 2 October 2023, 222 thousand ordinary shares (2023: 245 thousand) were transferred from the Employee
Benefit Trust to Executive Directors to satisfy the exercise of options under the 2011 LTIP.
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104–164 | Corporate Governance
2 Results for the year continued
2.18 Share capital and share premium continued
At 30 April 2024, there were 56 thousand shares held in trust (2023: 103 thousand) by the Employee Benefit Trust.
The market value of these shares at 30 April 2024 was £2.6 million (2023: £4.6 million).
At 30 April 2024, there were 8,784 thousand (2023: 8,959 thousand) treasury shares held by the Group. The
market value of the shares at 30 April 2024 was £414.1 million (2023: £398.4 million).
2.19 Reserves
The movement in reserves is set out in the Consolidated Statement of Changes in Equity on page 184.
Capital redemption reserve
The capital redemption reserve was created to maintain the capital of the Company following the redemption of
the B-Shares associated with the Scheme of Arrangement created in 2004 which completed on 10 September
2009 with the re‑designation of the unissued B-Shares as ordinary shares.
During the year, 1,825 thousand (2023: 4,053 thousand) shares were repurchased to the value of £72.3 million
(2023: £155.4 million). These shares were subsequently cancelled (2023: 4,053 thousand) as shown in note 2.18. On
cancellation of the share capital, the capital redemption reserve was credited with the nominal value of shares.
Other reserve
The other reserve of negative £961.3 million (2023: negative £961.3 million) arose from the application of merger
accounting principles to the financial statements on implementation of the capital reorganisation of the Group,
incorporating a Scheme of Arrangement, in the year ended 30 April 2005.
Retained earnings
On 19 September 2023, the Company issued to the Employee Benefit Trust 175 thousand ordinary shares (2023:
275 thousand ordinary shares). On 2 October 2023, 222 thousand ordinary shares were transferred from the
Employee Benefit Trust to Executive Directors to satisfy the exercise of options under the 2011 LTIP (2023: 245
thousand ordinary shares).
2.20 Dividends per share
Dividend distributions to shareholders are recognised as a liability in the period in which the dividends are
appropriately authorised and approved for payout and are no longer at the discretion of the Company. Unpaid
dividends that do not meet these criteria are disclosed in the notes to the financial statements.
2024
2023
Dividend per
share
pence
£m
Dividend per
share
pence
£m
Amounts recognised as distributions to equity
shareholders during the year:
September 2022
–
–
21.25
23.3
March 2023
–
–
69.44
75.2
September 2023
59.30
63.1
–
–
March 2024
33.00
35.0
–
–
Total dividends
98.1
98.5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
2.21 Contingent liabilities
Certain companies within the Group have given performance and other trade guarantees on behalf of other
members of the Group in the ordinary course of business. The Group has performance agreements in the ordinary
course of business of £24.5 million which are guaranteed by third parties (2023: £28.5 million). The Group
considers that the likelihood of an outflow of cash under these agreements is low and that no provision is required.
2.22 Notes to the Consolidated Cash Flow Statement
Reconciliation of profit after taxation for the year to cash generated from operations:
2024
£m
2023
£m
Profit for the financial year
397.6
465.7
Adjustments for:
• Taxation
159.7
138.3
• Depreciation
4.8
5.1
• Loss on sale of property, plant and equipment
5.2
3.7
• Finance income
(53.9)
(23.1)
• Finance costs
41.9
33.7
• Share of results of joint ventures after tax
(65.6)
(96.3)
• Non-cash charge in respect of share awards
(0.8)
(4.5)
Changes in working capital:
Decrease/(Increase) in inventories
18.2
(168.1)
(Increase)/Decrease in trade and other receivables
(24.4)
57.5
(Decrease)/Increase in trade and other payables
(99.7)
60.5
Cash generated from operations
383.0
472.5
Reconciliation of net cash flow to net cash:
Net increase in cash and cash equivalents, including bank overdraft
121.6
141.5
Movement in borrowings
-
–
Movement in net cash in the financial year
121.6
141.5
Opening net cash
410.4
268.9
Closing net cash
532.0
410.4
Net cash as at 30 April:
Cash and cash equivalents
1,192.0
1,070.4
Non-current borrowings
(660.0)
(660.0)
Total borrowings
(660.0)
(660.0)
Net cash*
532.0
410.4
* IFRS 16 lease liabilities are detailed in note 2.10.
2.23 Capital management, financial instruments and financial risk management
The Group finances its operations by a combination of shareholders’ funds, working capital and, where appropriate,
borrowings. The Group’s objective when managing capital is to maintain an appropriate capital structure in the
business to allow management to focus on creating sustainable long-term value for its shareholders.
The Group monitors capital levels principally by monitoring net cash/debt levels, cash flow forecasts and return
on average capital employed. The Group considers capital employed to be net assets adjusted for net cash/debt.
Capital employed at 30 April 2024 was £3,028.5 million (2023: £2,921.9 million). The increase in capital employed
in the year of £106.6 million reflects an increase in net assets during the year (2023: increase of £54.7 million).
The Group’s financial instruments comprise financial assets being trade receivables, loans to joint ventures and
cash and cash equivalents and financial liabilities being borrowings, trade payables excluding other taxes and social
security, lease liabilities and accruals other than those accounted for under IAS 19 ‘Employee Benefits’. Cash and cash
equivalents and borrowings are the principal financial instruments used to finance the business. The other financial
instruments arise in the ordinary course of business.
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2 Results for the year continued
2.23 Capital management, financial instruments and financial risk management continued
As the Group’s activities are predominantly conducted in sterling there is negligible direct currency risk. Therefore,
the Group’s key financial risks are primarily:
• liquidity risk – the risk that suitable funding for the Group’s activities may not be available;
• market interest rate risk – the risk that Group financing activities represented by floating borrowings are
adversely affected by fluctuation in market interest rates; and
• credit risk – the risk that a counterparty will default on its contractual obligations resulting in a loss to the Group.
Financial instruments: financial assets
The Group’s financial assets can be summarised as follows:
2024
£m
2023
£m
Current:
Trade receivables
72.5
48.2
Loans to joint ventures
53.8
40.9
Cash and cash equivalents
1,192.0
1,070.4
Total financial assets
1,318.3
1,159.5
Trade receivables are non-interest bearing. Of the current trade receivables balance of £72.5 million (2023: £48.2
million) none of the balance was overdue by more than 30 days (2023: £nil).
Cash and cash equivalents are short-term deposits held at either floating rates linked to the Bank of England base
rate or fixed money market rates. There are currently no Group assets that are measured at fair value.
Financial instruments: financial liabilities
The Group’s financial liabilities can be summarised as follows:
2024
£m
2023
£m
Current
Trade payables
(736.6)
(602.6)
Lease liabilities
(2.1)
(2.2)
Accruals
(107.1)
(111.8)
(845.8)
(716.6)
Non-current
Trade payables
(683.6)
(863.4)
Lease liabilities
(2.3)
(2.9)
Borrowings
(660.0)
(660.0)
(1,345.9)
(1,526.3)
Total trade and other payables
(2,191.7)
(2,242.9)
All amounts included above are unsecured, except for borrowings under the Group’s bank facilities as set out later
in this note.
Trade payables and other current liabilities are non-interest bearing.
The maturity profile of the Group’s non-current financial liabilities, all of which are held at amortised cost, is as
follows:
2024
£m
2023
£m
Amounts due:
In more than one year but not more than two years
(229.2)
(202.6)
In more than two years but not more than five years
(504.2)
(1,033.5)
In more than five years
(612.5)
(290.2)
(1,345.9)
(1,526.3)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Current trade receivables and current trade and other payables approximate to their fair value as the transactions
which give rise to these balances arise in the normal course of trade and, where relevant, with industry standard
payment terms and have a short period to maturity (less than one year).
Non-current trade payables comprise long-term land payables, which are held at their discounted present value
(calculated by discounting expected future cash flows at prevailing interest rates and yields as appropriate),
and borrowings. The discount rate applied reflects the Group’s credit risk, which is considered to be aligned to a
nominal, low risk pre-tax rate, on initial recognition of the financial liability, applied to the maturity profile of the
individual land creditors within the total. Non-current bank loans approximate to fair value as they are held at
variable market interest rates. The fair value of the £400 million unsecured 10-year Green Bonds at 30 April 2024
was determined by the ask price of £75.86 per £100 (2023: £69.12 per £100).
Liquidity risk
This is the risk that suitable funding for the Group’s activities may not be available. Group management addresses
this risk through review of rolling cash flow forecasts throughout the year to assess and monitor the current and
forecast availability of funding, and to ensure sufficient headroom against facility limits and compliance with
banking covenants. The committed borrowing facilities are set out below.
The contractual undiscounted maturity profile of the Group’s financial liabilities, which are included at their
carrying value in the preceding tables, is as follows:
2024
£m
2023
£m
Amounts due:
In less than one year
(846.9)
(716.7)
In more than one year but not more than two years
(234.4)
(204.6)
In more than two years but not more than five years
(517.2)
(1,051.2)
In more than five years
(631.6)
(319.0)
(2,230.1)
(2,291.5)
Deposits and on account contract receipts are not included in the table above as they represent deferred income
and therefore do not have a payment maturity date.
Market interest rate risk
The Group’s cash and cash equivalents and bank loans expose the Group to cash flow interest rate risk.
The Group’s rolling cash flow forecasts incorporate appropriate interest assumptions, and management carefully
assesses expected activity levels and associated funding requirements in the prevailing and forecast interest rate
environment to ensure that this risk is managed.
If interest rates on the Group’s cash and cash equivalents and bank loans had been 50 basis points higher
throughout the year ended 30 April 2024, profit after tax for the year would have been £1.7 million higher (2023:
£1.3 million higher). This calculation is based on the monthly closing net cash/debt balance throughout the year. A
50 basis point increase in interest rate represents management’s assessment of a reasonably possible change for
the year ended 30 April 2024.
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2 Results for the year continued
2.23 Capital management, financial instruments and financial risk management continued
Credit risk
The Group’s exposure to credit risk encompasses these financial assets: trade receivables, loans to joint ventures
and cash and cash equivalents. The Group has assessed expected credit losses and the loss allowance for trade
and other receivables and loans to joint ventures as immaterial.
There has been no impairment of trade receivables during the year (2023: £nil), nor are there any material provisions
held against trade receivables (2023: £nil), and £nil trade receivables are past their due date (2023: £nil).
The credit risk on cash and cash equivalents is limited because counterparties are leading international banks with
long-term A credit ratings assigned by international credit agencies.
Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Any difference between the
proceeds (net of transaction costs) and the redemption value is recognised in the Income Statement over the
period of the borrowings using the effective interest method.
The Group has committed corporate borrowing facilities as follows:
2024
2023
Available
£m
Drawn/
issued
£m
Undrawn
£m
Available
£m
Available
£m
Drawn/
issued
£m
Undrawn
£m
Available
£m
Bank facilities
Green term loan
260
(260)
–
Feb-29
260
(260)
–
Feb-28
Revolving credit
facility
540
–
540
Feb-29
540
–
540
Feb-28
Listed debt
Green Bonds
400
(400)
–
Aug-31
400
(400)
–
Aug-31
1,200
(660)
540
1,200
(660)
540
The £400 million unsecured 10-year Green Bonds mature in August 2031 at a fixed coupon of 2.5% per annum and
are listed on the International Securities Market of the London Stock Exchange plc. The Group is in compliance
with all of the financial covenants associated with the bonds.
The £800 million banking facilities comprise a £260 million Green Term Loan, which was initially drawn in March
2022 and bears interest at a rate linked to SONIA, and a £540 million Revolving Credit Facility (RCF) which
remains undrawn. The bank facilities are secured by debentures provided by certain Group holding companies over
their assets. The Group is in compliance with all of the financial covenants associated with the bank facilities.
In February 2024, the Group exercised the second and last one year extension on the £800 million banking
facilities, which consequently is in place to February 2029.
At 30 April 2024, the total drawn balance of these combined borrowing facilities was £660.0 million (2023: £660.0
million). At 30 April 2024 there were no bank bonds in issue (2023: £nil) which are capable of being issued under
ancillary facilities available as part of the Group’s RCF.
On 16 February 2024, the Group entered into a borrowing facility with Homes England whereby it may apply
amounts borrowed towards financing or re-financing certain infrastructure type development costs incurred by the
Group on three of its development sites. The facility totals £125.6 million, is unsecured, has floating interest rates
linked to the UK base rate and requires 33.33% of any outstanding loans to be repaid by 31 December 2031, 50% by
31 December 2032 and 100% by 31 December 2033. There are no loans outstanding as at 30 April 2024.
2.24 Alternative performance measures
Berkeley uses a number of alternative performance measures (APMs) which are not defined by IFRS. The Directors
consider these measures useful to assess the underlying performance of the Group alongside the relevant IFRS
financial information. They are referred to as Financial KPIs throughout the year end results. The information below
provides a definition of APMs and reconciliation to the relevant IFRS information, where required:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Net cash
Net cash is defined as cash and cash equivalents, less total borrowings. This is reconciled in note 2.22.
Net assets per share attributable to shareholders (NAVPS)
This is defined as net assets attributable to shareholders divided by the number of shares in issue, excluding shares
held in treasury and shares held by the Employee Benefit Trust.
2024
2023
Net assets (£m)
3,560.5
3,332.3
Total shares in issue (million)
114.7
116.5
Less:
Treasury shares held (million)
(8.7)
(8.9)
Employee Benefit Trust shares held (million)
(0.1)
(0.1)
Net shares used to determine NAVPS (million)
105.9
107.5
Net asset per share attributable to shareholders (pence)
3,363
3,101
Return on capital employed (ROCE)
This measures the profitability and efficiency of capital being used by the Group and is calculated as profit before
interest and taxation (including joint venture profit before tax) divided by the average net assets adjusted for
debt/(cash).
2024
£m
2023
£m
Operating profit
479.7
518.3
Share of joint ventures using equity method
65.6
96.3
Profit used to determine ROCE
545.3
614.6
Opening capital employed:
Net assets
3,332.3
3,136.1
Net cash
(410.4)
(268.9)
Opening capital employed
2,921.9
2,867.2
Closing capital employed:
Net assets
3,560.5
3,332.3
Net cash
(532.0)
(410.4)
Closing capital employed
3,028.5
2,921.9
Average capital employed
2,975.2
2,894.5
Return on capital employed (%)
18.3%
21.2%
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2 Results for the year continued
2.24 Alternative performance measures continued
Return on equity (ROE) before tax
This measures the efficiency of returns generated from shareholder equity before taxation and is calculated
as profit before taxation attributable to shareholders as a percentage of the average of opening and closing
shareholders’ funds.
2024
£m
2023
£m
Opening shareholders’ equity
3,332.3
3,136.1
Closing shareholders’ equity
3,560.5
3,332.3
Average shareholders’ equity
3,446.4
3,234.2
Profit before tax
557.3
604.0
Return on equity before tax (%)
16.2%
18.7%
Cash due on forward sales
This measures cash still due from customers, allowing for a risk adjustment, at the relevant Balance Sheet date
during the next three years under unconditional contracts for sale. It excludes forward sales of affordable housing,
commercial properties and institutional sales as well as forward sales within the Group’s joint ventures.
Future gross margin in land holdings
This represents management’s risk-adjusted assessment of the potential gross profit for each of the Group’s sites,
including the proportionate share of its joint ventures, taking account of a wide range of factors, including: current
sales and input prices; the economic and political backdrop; the planning and regulatory regime; and other market
factors; all of which could have a significant effect on the eventual outcome.
2.25 Related party transactions
The Group has entered into the following related party transactions:
Transactions with Directors
During the year, Mr R C Perrins paid £99,683 (2023: £115,808) and Mr P M Vallone paid £5,831 (2023: £nil) to
the Group in connection with works carried out at his home at commercial rates in accordance with the relevant
policies of the Group. There were no balances outstanding at either year end.
Transactions with joint ventures
During the financial year, the joint ventures paid management fees and other recharges to the Group of £14.2
million (2023: £18.0 million). Other transactions in the year include the movements in loans of £12.9 million (2023:
£11.6 million) and the receipt of dividends of £74.9 million (2023: £74.9 million). The outstanding loan balances with
joint ventures at 30 April 2024 total £53.8 million (30 April 2023: £40.9 million).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
2.26 Subsidiaries and joint ventures
(a) Subsidiaries
In accordance with Section 409 of the Companies Act 2006, a full list of subsidiaries, partnerships, associates, joint
ventures and joint arrangements, the country of incorporation, the registered address and the effective percentage
of equity owned, as at 30 April 2024 is disclosed below. The Berkeley Group plc is the only direct subsidiary of
The Berkeley Group Holdings plc and is an intermediate holding company. All wholly owned and partly owned
subsidiaries are included in the consolidation and all associated undertakings are included in the Group’s financial
statements.
All of the companies listed below are incorporated in England and Wales and have their registered office address
at Berkeley House, 19 Portsmouth Road, Cobham, Surrey, KT11 1JG, unless otherwise stated, and the principal
activity is residential-led mixed use development and ancillary activities. All of the companies are wholly owned by
the Group and unless otherwise indicated, all of the companies have ordinary share capital.
Agents of Berkeley Commercial Developments Limited
Ely Business Park Limited
Agents of Berkeley Homes (Central London) Limited
Chelsea Bridge Wharf (Block A) Limited
Chelsea Bridge Wharf (C North) Limited
Chelsea Bridge Wharf (Block B) Limited
Chelsea Bridge Wharf (C South) Limited
Chelsea Bridge Wharf (Block P) Limited
Agents of Berkeley Homes (Hampshire) Limited
Berkeley Homes (South Western House No. 1) Limited
Agents of Berkeley Homes Public Limited Company
Berkeley (Canalside) Limited
Berkeley Homes (Surrey) Limited
Berkeley Build Limited
Berkeley Homes (Thames Gateway) Limited
Berkeley Fifty-Five Limited
Berkeley Homes (Thames Valley) Limited
Berkeley Forty-Five Limited(i)
Berkeley Homes (Three Valleys) Limited
Berkeley Forty-Four plc
Berkeley Homes (Urban Developments) Limited
Berkeley Gateway Limited
Berkeley Homes (Urban Living) Limited
Berkeley Homes (Barn Elms) Limited
Berkeley Homes (Urban Renaissance) Limited
Berkeley Homes (Capital) plc
Berkeley Homes (Western) Limited
Berkeley Homes (Central & West London)
Public Limited Company
Berkeley Homes (West London) Limited
Berkeley Homes (Central London) Limited
Berkeley Homes (West Thames) Limited
Berkeley Homes (Chiltern) Limited
Berkeley Modular Limited
Berkeley Homes (East Anglia) Limited
Berkeley Ninety-One Limited
Berkeley Homes (East Kent) Limited
Berkeley Partnership Homes Limited
Berkeley Homes (East Thames) Limited
Berkeley Seven Limited
Berkeley Homes (Eastern Counties) Limited
Berkeley STE Limited
Berkeley Homes (Eastern) Limited
Berkeley SW Management Limited
Berkeley Homes (Festival Waterfront Company) Limited
Berkeley Urban Renaissance Limited
Berkeley Homes (Hampshire) Limited
Clare Homes Limited
Berkeley Homes (Home Counties) plc
Lisa Estates (St Albans) Limited
Berkeley Homes (North East London) Limited
PEL Investments Limited
Berkeley Homes (Oxford & Chiltern) Limited
St John Homes Limited(viii)
Berkeley Homes (South East London) Limited
St Joseph Homes Limited
Berkeley Homes (South London) Limited
Stanmore Relocations Limited
Berkeley Homes (Southern) Limited
Tabard Square (Building C) Limited
216 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 217
01–103 | Strategic Report
165–232 | Financial Statements
104–164 | Corporate Governance
Agents of Berkeley Twenty Limited
Thirlstone Homes (Western) Limited
Thirlstone Homes Limited
Agents of St George Central London Limited
Castle Court Putney Wharf Limited
Imperial Wharf (Block J) Ltd
Imperial Wharf (Block C) Limited
Imperial Wharf (Riverside Tower) Residential Limited
Agents of St George plc
St George Central London Limited
St George North London Limited
St George City Limited
St George South and Central London Limited
St George Developments Limited
St George South London Ltd(vii)
St George Kings Cross Limited
St George West London Ltd(ii)
Agents of St George South London Ltd
Battersea Reach Estate Company Limited
Riverside West (Block D) Residential Limited
Kensington Westside No. 2 Limited
Riverside West Car Park Limited
Putney Wharf Estate Limited
St George Wharf (Block B) Limited
Riverside West (Block C) Commercial Limited
St George Wharf (Block C) Limited
Riverside West (Block C) Residential Limited
St. George Wharf (Block D) Commercial Limited
Riverside West (Block D) Commercial Limited
St George Wharf Car Park Limited
Agents of St John Homes Limited
Berkeley Sixty-Six Limited
Non-Agency Companies(v)
Ancestral Homes Limited
Berkeley Fifty-Eight Limited
Berkeley (Inner-City Partnerships) Limited
Berkeley Fifty-Four Limited
Berkeley (SQP) Limited
Berkeley Fifty-Nine Limited
Berkeley (Virginia Water) Limited(i)
Berkeley Fifty-One Limited
Berkeley Affordable Homes Limited
Berkeley Fifty-Seven Limited
Berkeley Asset MSA Limited
Berkeley Fifty-Two Limited
Berkeley College Homes Limited
Berkeley First Limited
Berkeley Commercial Developments Limited
Berkeley Five Limited
Berkeley Commercial Investments Limited
Berkeley Forty Limited
Berkeley Commercial Limited
Berkeley Forty-Eight Limited
Berkeley Community Villages Limited
Berkeley Forty-Nine Limited
Berkeley Construction Limited
Berkeley Forty-Seven Limited
Berkeley Developments Limited(i)
Berkeley Forty-Six Limited
Berkeley Eighteen Limited
Berkeley Forty-Three Limited
Berkeley Eighty Limited
Berkeley Forty-Two Limited
Berkeley Eighty-One Limited
Berkeley Fourteen Limited
Berkeley Eighty-Three Limited
Berkeley Group Pension Trustees Limited
Berkeley Eighty-Two Limited
Berkeley Group Services Limited
Berkeley Enterprises Limited
Berkeley Group SIP Trustee Limited
Berkeley Festival Development Limited
Berkeley Guarantee One Limited†
Berkeley Festival Hotels Limited
Berkeley Homes (Carmelite) Limited
Berkeley Festival Investments Limited
Berkeley Homes (Chertsey) Limited
Berkeley Festival Limited
Berkeley Homes (City & East London) Limited
Berkeley Fifty Limited
Berkeley Homes (City) Limited
2 Results for the year continued
2.26 Subsidiaries and joint ventures continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Non-Agency Companies(v)
Berkeley Homes (Dorset) Limited
Berkeley One Hundred and Forty Limited
Berkeley Homes (East London) Limited
Berkeley One Hundred and Forty-Nine Limited
Berkeley Homes (Essex) Limited
Berkeley One Hundred and Forty-One Limited
Berkeley Homes (Fleet) Limited(i)
Berkeley One Hundred and Forty-Seven Limited
Berkeley Homes (Greater London) Limited
Berkeley One Hundred and Forty-Six Limited
Berkeley Homes (Hertfordshire & Cambridgeshire) Limited
Berkeley One Hundred and Four Limited
Berkeley Homes (Kent) Limited
Berkeley One Hundred and Nine Limited
Berkeley Homes (North Western) Limited(i)
Berkeley One Hundred and Ninety-Eight Limited
Berkeley Homes (PCL) Limited
Berkeley One Hundred and Ninety-Five Limited
Berkeley Homes (South) Limited
Berkeley One Hundred and Ninety-Four Limited
Berkeley Homes (Southall) Limited
Berkeley One Hundred and Ninety Limited
Berkeley Homes (Stanmore) Limited
Berkeley One Hundred and Ninety-Nine Limited
Berkeley Homes (Southern Counties) Limited
Berkeley One Hundred and Ninety-Seven Limited
Berkeley Homes Group Limited
Berkeley One Hundred and Ninety-Six Limited
Berkeley Homes Public Limited Company(iii) (viii)
Berkeley One Hundred and One Limited
Berkeley London Residential Limited
Berkeley One Hundred and Seven Limited
Berkeley Manhattan Limited
Berkeley One Hundred and Seventeen Limited
Berkeley Ninety-Eight Limited
Berkeley One Hundred and Seventy-Eight Limited
Berkeley Ninety-Five Limited
Berkeley One Hundred and Seventy-Five Limited
Berkeley Ninety-Nine Limited
Berkeley One Hundred and Seventy-Four Limited
Berkeley Ninety-Seven Limited
Berkeley One Hundred and Seventy-Nine Limited
Berkeley Ninety-Six Limited
Berkeley One Hundred and Seventy-One Limited
Berkeley Number Four Limited
Berkeley One Hundred and Seventy-Seven Limited
Berkeley Number Seven Limited
Berkeley One Hundred and Seventy-Six Limited
Berkeley Number Six Limited
Berkeley One Hundred and Seventy-Three Limited
Berkeley One Hundred and Eight Limited
Berkeley One Hundred and Seventy-Two Limited
Berkeley One Hundred and Eighteen Limited
Berkeley One Hundred and Six Limited
Berkeley One Hundred and Eighty-Eight Limited
Berkeley One Hundred and Sixteen Limited
Berkeley One Hundred and Eighty-Five Limited
Berkeley One Hundred and Sixty-Five Limited
Berkeley One Hundred and Eighty Limited
Berkeley One Hundred and Sixty-Four Limited
Berkeley One Hundred and Eighty-Nine Limited
Berkeley One Hundred and Sixty-One Limited
Berkeley One Hundred and Eighty-One Limited
Berkeley One Hundred and Sixty-Six Limited
Berkeley One Hundred and Eighty-Seven Limited
Berkeley One Hundred and Sixty-Three Limited
Berkeley One Hundred and Eighty-Two Limited
Berkeley One Hundred and Thirteen Limited
Berkeley One Hundred and Fifteen Limited
Berkeley One Hundred and Thirty-Eight Limited
Berkeley One Hundred and Fifty-Eight Limited
Berkeley One Hundred and Thirty-Five Limited
Berkeley One Hundred and Fifty-Five Limited
Berkeley One Hundred and Thirty-Four Limited
Berkeley One Hundred and Fifty-Four Limited
Berkeley One Hundred and Thirty Limited
Berkeley One Hundred and Fifty Limited
Berkeley One Hundred and Thirty-Nine Limited
Berkeley One Hundred and Fifty-Nine Limited
Berkeley One Hundred and Thirty-One Limited
Berkeley One Hundred and Fifty-One Limited
Berkeley One Hundred and Thirty-Seven Limited
Berkeley One Hundred and Fifty-Seven Limited
Berkeley One Hundred and Thirty-Six Limited
Berkeley One Hundred and Fifty-Six Limited
Berkeley One Hundred and Thirty-Three Limited
Berkeley One Hundred and Fifty-Three Limited
Berkeley One Hundred and Thirty-Two Limited
Berkeley One Hundred and Fifty-Two Limited
Berkeley One Hundred and Three Limited
Berkeley One Hundred and Five Limited
Berkeley One Hundred and Twenty-Eight Limited
Berkeley One Hundred and Forty-Eight Limited
Berkeley One Hundred and Twenty-Five Limited
Berkeley One Hundred and Forty-Five Limited
Berkeley One Hundred and Twenty-Four Limited
Berkeley One Hundred and Forty-Four Limited
Berkeley One Hundred and Twenty Limited
Berkeley One Hundred and Twenty-Nine Limited
Berkeley Two Hundred and Fifty-Seven Limited
218 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 219
01–103 | Strategic Report
165–232 | Financial Statements
104–164 | Corporate Governance
Non-Agency Companies(v)
BH (City Forum) Limited
Berkeley Ventures Limited
Berkeley One Hundred and Twenty-One Limited
Berkeley Two Hundred and Fifty-Six Limited
Berkeley One Hundred and Twenty-Seven Limited
Berkeley Two Hundred and Fifty-Three Limited
Berkeley One Hundred and Twenty-Six Limited
Berkeley Two Hundred and Fifty-Two Limited
Berkeley One Hundred and Twenty-Three Limited
Berkeley Two Hundred and Five Limited
Berkeley One Hundred and Twenty-Two Limited
Berkeley Two Hundred and Forty-Eight Limited
Berkeley One Hundred and Two Limited
Berkeley Two Hundred and Forty-Five Limited
Berkeley Portsmouth Harbour Limited
Berkeley Two Hundred and Forty-Four Limited
Berkeley Portsmouth Waterfront Limited
Berkeley Two Hundred and Forty-Nine Limited
Berkeley Properties Limited(i)
Berkeley Two Hundred and Forty-Seven Limited
Berkeley Residential Limited(i)
Berkeley Two Hundred and Forty-Six Limited
Berkeley Ryewood Limited
Berkeley Two Hundred and Forty-Three Limited
Berkeley Seventy Limited
Berkeley Two Hundred and Forty-Two Limited
Berkeley Seventy-Four Limited
Berkeley Two Hundred and Fourteen Limited
Berkeley Seventy-One plc(vii)
Berkeley Two Hundred and Nine Limited
Berkeley Seventy-Seven Limited
Berkeley Two Hundred and Nineteen Limited
Berkeley Seventy-Six Limited
Berkeley Two Hundred and One Limited(i)
Berkeley Seventy-Three Limited
Berkeley Two Hundred and Seven Limited
Berkeley Seventy-Two Limited
Berkeley Two Hundred and Seventeen Limited
Berkeley Sixty Limited
Berkeley Two Hundred and Sixty Limited
Berkeley Sixty-Eight Limited
Berkeley Two Hundred and Thirteen Limited
Berkeley Sixty-Five Limited
Berkeley Two Hundred and Thirty Limited
Berkeley Sixty-Four Limited
Berkeley Two Hundred and Thirty-Eight Limited
Berkeley Sixty-Nine Limited
Berkeley Two Hundred and Thirty-Five Limited
Berkeley Sixty-One Limited
Berkeley Two Hundred and Thirty-Four Limited
Berkeley Special Projects Limited
Berkeley Two Hundred and Thirty-Nine Limited
Berkeley Strategic Land Limited(vii)
Berkeley Two Hundred and Thirty-One Limited
Berkeley Sustainable Communities Limited
Berkeley Two Hundred and Thirty-Seven Limited
Berkeley Thirty-Eight Limited
Berkeley Two Hundred and Thirty-Six Limited
Berkeley Thirty-Nine Limited
Berkeley Two Hundred and Thirty-Three Limited
Berkeley Thirty-Three Limited
Berkeley Two Hundred and Thirty-Two Limited
Berkeley Three Limited
Berkeley Two Hundred and Three Limited
Berkeley Twenty Limited
Berkeley Two Hundred and Twelve Limited
Berkeley Twenty-Eight Limited
Berkeley Two Hundred and Twenty Limited
Berkeley Twenty-Four Limited
Berkeley Two Hundred and Twenty-Eight Limited
Berkeley Twenty-Nine Limited
Berkeley Two Hundred and Twenty-Four Limited
Berkeley Twenty-Seven Limited
Berkeley Two Hundred and Twenty-Nine Limited
Berkeley Twenty-Three Limited
Berkeley Two Hundred and Twenty-Seven Limited
Berkeley Twenty-Two Limited
Berkeley Two Hundred and Twenty-Six Limited
Berkeley Two Hundred and Eight Limited
Berkeley Two Hundred and Twenty-Three Limited
Berkeley Two Hundred and Eighteen Limited
Berkeley Two Hundred and Twenty-Two Limited
Berkeley Two Hundred and Eleven Limited
Berkeley Two Hundred and Two Limited
Berkeley Two Hundred and Fifty Limited
Berkeley Two Hundred Limited
Berkeley Two Hundred and Fifty-Eight Limited
Berkeley Two Hundred and Sixty-One Limited
Berkeley Two Hundred and Fifty-Five Limited
Berkeley Two Hundred and Sixty-Two Limited
Berkeley Two Hundred and Fifty-Four Limited
Berkeley Two Hundred and Sixty-Three Limited
Berkeley Two Hundred and Fifty-Nine Limited
Berkeley Two Hundred and Sixty-Four Limited
Berkeley Two Hundred and Fifty-One Limited
2 Results for the year continued
2.26 Subsidiaries and joint ventures continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Non-Agency Companies(v)
Boardcable Limited(viii)
St. George Investments Ltd
Bromyard House (Car Park) Limited
St. George London Ltd
Bromyard House (Freehold) Limited
St George Northfields Limited
Bromyard House (North) Limited
St. George Partnerships Ltd
Bromyard House Limited
St George plc(iv)
BWW Management Limited(viii)
St George Project Management Limited
Charco 143 Limited(i)
St. George Properties Ltd
Chelsea Bridge Wharf (Management Company) Limited
St George Real Estate Limited
Chelsea Bridge Wharf Car Park Limited(viii)
St George Regeneration Limited
Community Housing Action Limited
St. George Southern Ltd
Community Villages Limited
St. George Western Ltd
CPWGCO 1 Limited
St George Wharf Hotel Limited
Drummond Road (Number 1) Ltd
St. George’s Hill Property Company Limited
Drummond Road (Number 2) Ltd
St James Group Limited
Exchange Place No.2 Limited
St James Homes (Grosvenor Dock) Limited
Fishguard Bridge Limited
St James Homes Limited(viii)
Fishguard Tunnel Limited
St William Eight Limited
Great Woodcote Park Management Limited
St William Eighteen Limited
Hertfordshire Homes Limited
St William Eleven Limited
Historic Homes Limited
St William Fifteen Limited
Kentdean Limited
St William Five Limited
One Tower Bridge Limited
St William Four Ltd
Oval Works Limited
St William Fourteen Limited
Paddington Green Propco Limited
St William Holdings Limited
Quod Erat Demonstrandum Properties Limited
St William Homes LLP†
Retirement Homes Limited
St William Nine Limited
Royal Clarence Yard (Marina) Limited
St William Nineteen Limited
Royal Clarence Yard (Phase A) Limited
St William One Ltd
Royal Clarence Yard (Phase B) Limited
St William Seven Limited
Royal Clarence Yard (Phase C) Limited
St William Seventeen Limited
Royal Clarence Yard (Phase E) Limited
St William Six Limited
Royal Clarence Yard (Phase G) Management Company
Limited
St William Sixteen Limited
Royal Clarence Yard (Phase H) Limited
St William Ten Limited
Royal Clarence Yard (Phase I) Limited
St William Thirteen Limited
Royal Clarence Yard (Phase K) Management Company
Limited
St William Three Ltd
Royal Clarence Yard Estate Limited
St William Twelve Limited
Sandgates Developments Limited(i)
St William Twenty Limited
Sitesecure Limited
St William Twenty-Eight Limited
SJC (Highgate) Limited(viii)
St William Twenty-Five Limited
South Quay Plaza Management Limited (62.5%)(vi)
St William Twenty-Four Limited
St Edward Limited
St William Twenty-One Limited
St George (Crawford Street) Limited
St William Twenty-Seven Limited
St George (Queenstown Place) Limited
St William Twenty-Six Limited
St George Blackfriars Limited
St William Twenty-Three Limited
St George Commercial Limited
St William Twenty-Two Limited
St George Ealing Limited
St William Two Ltd
St. George Eastern Ltd
Tabard Square (Building A) Limited
St. George Inner Cities Ltd
Tabard Square (Building B) Limited
220 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 221
01–103 | Strategic Report
165–232 | Financial Statements
104–164 | Corporate Governance
Non-Agency Companies(v)
Tabard Square (Car Park) Limited
The Tower, One St George Wharf Limited(i)
TBG (3) 2009 Limited
Thirlstone (JLP) Limited
The Berkeley Festival Waterfront Company Limited
Thirlstone Commercial Limited
The Berkeley Group plc
Thirlstone plc(ii)
The Millennium Festival Leisure Company Limited
Woodside Road Limited
The Oxford Gateway Development Company Limited
(i)
A ordinary and B ordinary shares
(ii)
Ordinary and preference shares
(iii)
Ordinary and deferred shares
(iv)
Ordinary, deferred and preference shares
(v)
List contains companies that are a principal to agency agreements but are not agents themselves
(vi)
Registered office is 83 The Avenue, Sunbury-On-Thames, Middlesex, TW16 5HZ
(vii)
Ordinary and redeemable preference shares
(viii) Registered office is 19 Portsmouth Road, Cobham, Surrey, KT11 1JG
†
Partnership with no share capital
The subsidiary companies listed below are incorporated outside of England and Wales. Their country of
incorporation and registered offices are listed below. Their principal activities continue to be that of residential-led
mixed use development and ancillary activities. All of the companies are wholly owned by the Group and unless
otherwise indicated, all of the companies have ordinary share capital.
Country of
incorporation
Registered office
Aragon Investments Limited(ii)
Jersey
28 Esplanade, St. Helier, JE2 3QA, Jersey
Berkeley (Carnwath Road) Limited
Isle of Man
First Floor, Jubilee Buildings, Victoria Street, Douglas, IM1
2SH, Isle of Man
Berkeley (Hong Kong) Limited
Hong Kong
3806 Central Plaza, 18 Harbour Road, Wanchai, Hong Kong
Berkeley Homes Special Contracts Public
Limited(iii)
Scotland
Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2EN
Berkeley Investments (IOM) Limited
(in liquidation)
Isle of Man
First Floor, Jubilee Buildings, Victoria Street, Douglas, IM1
2SH, Isle of Man
Berkeley Property Investments Limited
Jersey
28 Esplanade, St. Helier, JE2 3QA, Jersey
Berkeley Real Estate Consulting (Beijing)
Co. Limited*
China
Unit 1902, floor 19, No.1, Guanghua Road, ChaoYang District,
Beijing, China
Berkeley Residential (Singapore) Limited
Singapore
77 Robinson Road, #13-00 Robinson 77, Singapore 068896
Berkeley Whitehart Investments Limited
Jersey
28 Esplanade, St. Helier, JE2 3QA, Jersey
Comiston Properties Limited
Bahamas
Ocean Centre, Montagu Foreshore, East Bay Street, Nassau,
New Providence, The Bahamas
Real Star Investments Limited(i)(ii)
Jersey
28 Esplanade, St. Helier, JE2 3QA, Jersey
Silverdale One Limited(ii)
Jersey
28 Esplanade, St. Helier, JE2 3QA, Jersey
St George Battersea Reach Limited
Jersey
2 Hill Street, St. Helier, JE2 4UA, Jersey
(i)
Agency company of St James Group Limited
(ii)
Non-UK nominee company
(iii)
Ordinary, A deferred and B deferred shares
*
Accounting date of 31 December
2 Results for the year continued
2.26 Subsidiaries and joint ventures continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
(b) Joint ventures
At 30 April 2024, the Group had an interest in the following joint ventures which have been equity accounted to
30 April and have an accounting date of 30 April unless otherwise indicated. All of the companies listed below
are incorporated in England and Wales and have their registered office address at Berkeley House, 19 Portsmouth
Road, Cobham, Surrey, KT11 1JG, unless otherwise stated, and the principal activity is residential-led mixed use
development and ancillary activities. All of the companies are 50% owned by the Group and unless otherwise
indicated, all of the companies have ordinary share capital.
Berkeley Carlton Holdings Limited(ii)
St Edward Homes Number One Limited**
Berkeley Sutton Limited(ii)
St Edward Homes Number Three Limited**(v)
Diniwe One Limited
St Edward Homes Number Two Limited**
Diniwe Two Limited
St Edward Homes Partnership Freeholds Limited
Berkeley Latimer Estates Limited(ii) (v)***
St Edward Strand Partnership Freeholds Limited
Mayflower Residential Limited(ii) (v)***
St George Little Britain (No. 1) Limited(ii)
Segro V-Park Grand Union LLP*†
St George Little Britain (No.2) Limited(ii)
SEH Manager Limited
St Katharine Homes LLP(i)
SEH Nominee Limited
STKM Limited
SES Manager Limited(ii)
Strand Property Unit Trust (unregistered)
SES Nominee Limited
The St Edward Homes Partnership
(unregistered partnership)(i)
St Edward Homes Limited(iii)
The St Edward (Strand) Partnership
(unregistered partnership)(i)
St Edward Homes Number Five Limited**
U B Developments Limited(iv) (v)
St Edward Homes Number Four Limited**
(i)
Partnership with no share capital
(ii)
A ordinary and B ordinary shares
(iii)
A ordinary, B ordinary, C preference and D preference shares
(iv)
B ordinary shares
(v)
Registered office is 19 Portsmouth Road, Cobham, Surrey, KT11 1JG
*
Accounting date of 31 December
**
100% owned by St Edward Homes Limited
***
Accounting date of 31 March
†
Registered office address is 1 New Burlington Place, London, United Kingdom, W1S 2HR
222 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 223
01–103 | Strategic Report
165–232 | Financial Statements
104–164 | Corporate Governance
COMPANY BALANCE SHEET
COMPANY STATEMENT OF CHANGES IN EQUITY
As at 30 April
Notes
2024
£m
2023
£m
Fixed assets
Investments
C2.4
1,443.1
1,438.1
1,443.1
1,438.1
Current assets
Debtors
C2.5
636.4
542.6
Cash at bank and in hand
0.9
0.9
637.3
543.5
Current liabilities
Creditors (amounts falling due within one year)
C2.6
(874.0)
(841.6)
Net current liabilities
(236.7)
(298.1)
Total assets less current liabilities and net assets
1,206.4
1,140.0
Capital and reserves
Called-up share capital
C2.7
6.2
6.3
Share premium account
C2.7
49.8
49.8
Capital redemption reserve
25.3
25.2
Profit and loss account
1,125.1
1,058.7
Total shareholders’ funds
1,206.4
1,140.0
As permitted by Section 408 of the Companies Act 2006, The Berkeley Group Holdings plc has not presented its
own Income Statement. The profit after taxation of the Company for the financial year was £232.6 million (2023:
£278.8 million).
The financial statements on pages 224 to 230 were approved by the Board of Directors on 19 June 2024 and were
signed on its behalf by:
R J Stearn
Chief Financial Officer
Registered no: 5172586
Called-up share
capital
£m
Share premium
account
£m
Capital
redemption
reserve
£m
Profit and loss
account
£m
Total
shareholders’
funds
£m
At 1 May 2023
6.3
49.8
25.2
1,058.7
1,140.0
Profit after taxation for the year
–
–
–
232.6
232.6
Purchase of ordinary shares
(0.1)
–
0.1
(72.3)
(72.3)
Charge in respect of employee share
schemes
–
–
–
2.6
2.6
Deferred tax in respect of employee
share schemes
–
–
–
1.6
1.6
Dividends to equity holders of the
Company
–
–
–
(98.1)
(98.1)
At 30 April 2024
6.2
49.8
25.3
1,125.1
1,206.4
At 1 May 2022
6.5
49.8
25.0
1,038.1
1,119.4
Profit after taxation for the year
–
–
–
278.8
278.8
Purchase of ordinary shares
(0.2)
–
0.2
(155.4)
(155.4)
Charge in respect of employee share
schemes
–
–
–
(1.6)
(1.6)
Deferred tax in respect of employee
share schemes
–
–
–
(2.7)
(2.7)
Dividends to equity holders of the
Company
–
–
–
(98.5)
(98.5)
At 30 April 2023
6.3
49.8
25.2
1,058.7
1,140.0
224 | Berkeley Group 2024 Annual Report
Berkeley Group 2024 Annual Report | 225
01–103 | Strategic Report
165–232 | Financial Statements
104–164 | Corporate Governance
NOTES TO THE COMPANY FINANCIAL STATEMENTS
C1 Basis of preparation
C1.1 Introduction
The Company meets the definition of a qualifying entity under Financial Reporting Standard 101 (FRS 101)
issued by the Financial Reporting Council. Accordingly, these financial statements were prepared in accordance
with FRS 101 ‘Reduced Disclosure Framework’ as issued by the Financial Reporting Council. In preparing these
financial statements, the Company applies the recognition measurement and disclosure requirements of UK-
adopted international accounting standards, but makes amendments where necessary in order to comply with the
Companies Act 2006.
The accounting policies adopted for the Parent Company, The Berkeley Group Holdings plc, are otherwise
consistent with those used for the Group which are set out on pages 182 to 223.
In these financial statements, the Company has applied the exemptions available under FRS 101 in respect of the
following disclosures:
• Cash Flow Statement and related notes;
• disclosures in respect of transactions with wholly owned subsidiaries;
• disclosures in respect of capital management;
• the effects of new but not yet effective IFRSs;
• certain disclosures required by IFRS 13 ‘Fair Value Measurement’ and the disclosures required by IFRS 7 ‘Financial
Instrument Disclosures’; and
• disclosures in respect of the compensation of key management personnel.
The principal activity of The Berkeley Group Holdings plc (the Company) is to act as a holding company.
C1.2 Going concern
The Group’s business activities together with the factors likely to affect its future development performance and
position are set out in the Strategic Report. The financial position of the Group, its cash flows, liquidity position and
borrowing facilities are all described in the Trading and Financial Review on pages 29 to 31.
The Group has significant financial resources and the Directors have assessed the future funding requirements
of the Group, including the annual return of £0.3 billion to shareholders set out to 2025, and compared this
with the level of committed loan facilities and cash resources over the medium term. In making this assessment,
consideration has been given to the uncertainty inherent in future financial forecasts and, where applicable,
reasonable sensitivities have been applied to the key factors affecting the financial performance of the Group.
Based on the financial performance of the Group, the Directors have a reasonable expectation that the Company
has adequate resources to continue its operational existence for at least 12 months from the date of signing the
accounts, notwithstanding its net current liability position of £236.7 million (2023: £298.1 million). For this reason
they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
C2 Notes to the Company accounts
C2.1 Profit before taxation
Expenditure is recognised in respect of goods and services received when supplied in accordance with contractual
terms. Provision is made when an obligation exists for a future liability in respect of a past event and where the
amount of the obligation can be reliably estimated.
Profit before taxation is stated after charging the following amounts:
2024
£m
2023
£m
Auditor’s remuneration
0.1
0.1
There were no non-audit services provided by the Company’s current auditor during the year (2023: £nil).
C2.2 Directors and employees
The Company operates three equity settled, share based compensation plans (2023: three). The fair value of
the employee services received in exchange for the grant of the options is recognised as an expense. The total
amount to be expensed over the vesting period is determined by reference to the fair value of the options
granted.
At each Balance Sheet date, the Company revises its estimates of the number of options that are expected to
vest. It recognises the impact of the revision to original estimates, if any, in the profit and loss account, with a
corresponding adjustment to equity. Amounts recognised in respect of Executive Directors of the Company’s
subsidiaries are recognised as an addition to the cost of the investment.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal
value) and share premium when the options are exercised.
Pension contributions under defined contribution schemes are charged to the Income Statement as they fall due.
2024
£m
2023
£m
Staff costs:
Wages and salaries
2.1
2.4
Social security costs
0.6
0.3
Share based payments – equity settled
2.0
0.6
4.7
3.3
The average monthly number of persons employed by the Company during the year was 10, all of whom are
Directors (2023: 12).
Directors
Details of Directors’ emoluments are set out in the Remuneration Report on pages 130 to 156.
Pensions
During the year, the Company participated in one of the Group’s pension schemes, The Berkeley Group plc
Group Personal Pension Plan. Further details on this scheme are set out in note 2.5 to the Consolidated Financial
Statements. Contributions amounting to £nil (2023: £nil) were paid into the defined contribution scheme during
the year.
Share based payments
The charge to the profit and loss account in respect of equity settled share based payments in the year are:
•
2011 LTIP of £0.2 million (2023: £0.2 million)
•
2022 LTOP of £1.3 million (2023: £0.3 million)
•
RSP of £0.7 million (2023: £0.1 million)
The credit to the reserves during the year in respect of employee share schemes was £2.6million (2023: £1.6 million
charge) which includes the corresponding entry to the cost of investment of £5.0 million (2023: £2.4 million)
detailed in note C2.4. The offsetting entry within reserves results from the non-cash IFRS 2 charge for the year.
Further information on the Company’s share incentive schemes are included in the Remuneration Report on pages
130 to 156 as well as note 2.5 to the Consolidated Financial Statements.
C2.3 The Berkeley Group Holdings plc profit and loss account
The profit for the year in the Company is £232.6 million (2023: £278.8 million).
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C2 Notes to the Company accounts continued
C2.4 Investments
Investments in subsidiary undertakings are included in the Balance Sheet at cost less provision for any impairment.
2024
£m
2023
£m
Investments at cost:
Investments in shares of subsidiary undertaking at 1 May
1,438.1
1,435.7
Additions
5.0
2.4
Investments in shares of subsidiary undertaking at 30 April
1,443.1
1,438.1
Additions in the year relate to Company contributions to The Berkeley Group plc for employee services to be
settled through the issue of shares on the vesting of the Berkeley Group Holdings plc 2011 LTIP awards, 2022 LTOP
awards and RSP awards for the benefit of employees of its subsidiaries.
The Directors believe that the carrying value of the investments is supported by their underlying net assets. Details
of subsidiaries are given within note 2.26 to the Consolidated Financial Statements.
C2.5 Debtors
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the
Balance Sheet date, where transactions or events that result in an obligation to pay more tax in the future or a
right to pay less tax in the future have occurred at the Balance Sheet date.
A net deferred tax asset is recognised as recoverable and therefore recognised only when, on the basis of all
available evidence, it can be regarded as more likely than not that there will be suitable taxable profits against
which to recover carried forward tax losses and from which the future reversal of underlying timing differences
can be deducted.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing
differences are expected to reverse, based on tax rates and laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred tax is measured on an undiscounted basis.
2024
£m
2023
£m
Current
Amounts owed from subsidiary undertakings
630.8
536.6
Deferred tax
5.6
6.0
636.4
542.6
All amounts owed from subsidiary undertakings are unsecured, bear no interest and are payable on demand. The
Company has assessed expected credit losses as immaterial on amounts owed from subsidiary undertakings.
The movements on the deferred tax asset are as follows:
2024
£m
2023
£m
At 1 May
6.0
10.7
Deferred tax in respect of employee share schemes
1.9
(4.7)
Realisation of deferred tax asset on vesting of employee share scheme
(2.3)
–
At 30 April
5.6
6.0
Deferred tax is calculated in full on temporary differences at the tax rates that are expected to apply for the period
when the asset is realised and the liability is settled using a tax rate of 25% (2023: 25%). Accordingly, all temporary
differences have been calculated. There is no unprovided deferred tax (2023: £nil) at the Balance Sheet date.
The deferred tax asset of £5.6 million relates to short-term timing differences (2023: £6.0 million).
C2.6 Creditors: Amounts falling due within one year
Creditors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised
cost using the effective interest method.
2024
£m
2023
£m
Current
Amounts owed to subsidiary undertakings
(871.3)
(837.9)
Other taxation and social security
(2.7)
(3.7)
(874.0)
(841.6)
All amounts included above are unsecured. The interest rate on the whole amount (2023: the whole amount) owed
to subsidiary undertakings is 4.0% (2023: 4.0%), with no fixed repayment date.
C2.7 Called-up share capital
The movements on allotted and fully paid share capital for the Company in the year were as follows:
Ordinary shares
Share capital
Share premium
2024
No ’000
2023
No ’000
2024
£m
2023
£m
2024
£m
2023
£m
Issued
At start of year
116,537
120,590
6.3
6.5
49.8
49.8
Shares cancelled
(1,825)
(4,053)
(0.1)
(0.2)
-
–
At end of year
114,712
116,537
6.2
6.3
49.8
49.8
During the 2024 financial year, 1,825 thousand shares were repurchased (2023: 4,053 thousand) for a total
consideration of £72.3 million, excluding transaction costs (2023: £155.4 million). These shares were subsequently
cancelled (2023: 4,053 thousand).
Each ordinary share of 5.4141 pence is a voting share in the capital of the Company, is entitled to participate in the
profits of the Company and on a winding-up is entitled to participate in the assets of the Company.
On 19 September 2023, 175 thousand ordinary shares (2023: 275 thousand) were issued to the Employee Benefit
Trust.
On 2 October 2023, 222 thousand ordinary shares (2023: 245 thousand) were transferred from the Employee
Benefit Trust to Executive Directors to satisfy the exercise of options under the 2011 LTIP.
At 30 April 2024, there were 56 thousand shares held in trust (2023: 103 thousand) by the Employee Benefit Trust.
The market value of these shares at 30 April 2024 was £2.6 million (2023: £4.6 million).
At 30 April 2024, there were 8,784 thousand (2023: 8,959 thousand) treasury shares held by the Group. The
market value of the shares at 30 April 2024 was £414.1 million (2023: £398.4 million).
The movements in the year are disclosed in notes 2.18 and 2.19 to the Consolidated Financial Statements.
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED
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104–164 | Corporate Governance
C2 Notes to the Company accounts continued
C2.8 Dividends per share
Dividend distributions to shareholders are recognised as a liability in the period in which the dividends are
appropriately authorised and approved for payout and are no longer at the discretion of the Company. Unpaid
dividends that do not meet these criteria are disclosed in the notes to the financial statements.
2024
2023
Dividend per
share
pence
£m
Dividend per
share
pence
£m
Amounts recognised as distributions to equity
shareholders during the year:
September 2022
–
–
21.25
23.3
March 2023
–
–
69.44
75.2
September 2023
59.30
63.1
–
–
March 2024
33.00
35.0
–
–
Total dividends
98.1
98.5
C2.9 Related party transactions
The Company has not undertaken related party transactions during the year with entities that are not wholly
owned subsidiaries of The Berkeley Group Holdings plc. Transactions with wholly owned members of The Berkeley
Group Holdings plc are exempt under FRS 101 with reduced disclosure.
NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED
FIVE YEAR SUMMARY
2024
£m
2023
£m
2022
£m
2021
£m
2020
£m
Income statement
Revenue
2,464.3
2,550.2
2,348.0
2,202.2
1,920.4
Operating profit
479.7
518.3
507.9
502.3
469.7
Share of results of joint ventures
65.6
96.3
56.1
22.4
33.3
Net finance income/(costs)
12.0
(10.6)
(12.5)
(6.6)
0.7
Profit before taxation
557.3
604.0
551.5
518.1
503.7
Basic earnings per share
373.9
426.8p
417.8p
339.4p
324.9p
Statement of financial position
Capital employed
3,028.5
2,921.9
2,867.2
2,047.2
1,962.7
Net cash
532.0
410.4
268.9
1,128.2
1,138.9
Net assets
3,560.5
3,332.3
3,136.1
3,175.4
3,101.6
Net assets per share attributable
to shareholders(1)
3,363p
3,101p
2,818p
2,612p
2,472p
Ratios and statistics
Return on capital employed(2)
18.3%
21.2%
23.0%
26.2%
25.5%
Return on equity after tax(3)
11.5%
14.4%
15.3%
13.5%
13.5%
Return on equity before tax(4)
16.2%
18.7%
17.5%
16.5%
16.6%
Homes sold(5)
3,521
4,043
3,760
2,825
2,723
Cash due on forward sales(6)
1,701
2,136
2,171
1,712
1,858
Gross margin on land holdings(7)
6,929
7,629
8,258
6,884
6,417
(1) Net assets attributable to shareholders divided by the number of shares in issue excluding shares held in treasury and shares held by
the Employee Benefit Trust.
(2) This measures the profitability and efficiency of capital being used by the Group and is calculated as profit before interest and
taxation (including joint venture profit before tax) divided by the average net assets adjusted for debt/(cash).
(3) This measures the efficiency of returns generated from shareholder equity after taxation and is calculated as profit after taxation
attributable to shareholders as a percentage of the average of opening and closing shareholders’ funds.
(4) Calculated as profit before taxation attributable to shareholders as a percentage of the average of opening and closing shareholders’
funds.
(5) The number of homes legally completed and recorded in revenue in the year excluding joint ventures.
(6) Cash still due from customers during the next three financial years under unconditional contracts for sale.
(7) The measure of expected value in the Group’s land holdings in the event the Group successfully sells and delivers the developments
planned for.
See note 2.24 Alternative Performance Measure for full definitions where relevant.
230 | Berkeley Group 2024 Annual Report
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01–103 | Strategic Report
165–232 | Financial Statements
104–164 | Corporate Governance
FINANCIAL DIARY
Annual General Meeting and Trading Update
6 September 2024
Half year end
31 October 2024
Interim Results Announcement for the six months ending 31 October 2024
6 December 2024
Trading Update
March 2025
Year end
30 April 2025
Announcement of Results for the year ending 30 April 2025
June 2025
Publication of 2025 Annual Report
August 2025
REGISTERED OFFICE AND ADVISORS
Registered office and principal place of business
The Berkeley Group Holdings plc
Berkeley House
19 Portsmouth Road
Cobham
Surrey KT11 1JG
Registered number: 5172586
Registrars
Link Group
10th Floor
Central Square
29 Wellington Street
Leeds LS1 4DL
0871 664 0300 (from the UK)
+44 (0) 371 664 0300 (from overseas)
shareholderenquiries@linkgroup.co.uk
Corporate brokers and financial advisors
Barclays Bank plc
HSBC Bank plc
Share price information
The Company’s share capital is listed on the London Stock Exchange. The latest share price is available via the
Company’s website at www.berkeleygroup.co.uk
Solicitor
Herbert Smith Freehills LLP
Bankers
Barclays Bank plc
HSBC Bank plc
Lloyds Bank plc
Banco Santander, S.A., London Branch
National Westminster Bank plc
Handelsbanken plc
Auditor
KPMG LLP
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Printed on material from well-managed, FSC® certified forests and other
controlled sources.
100% of the inks used are vegetable oil based, 95% of press chemicals are
recycled for further use and, on average 99% of any waste associated with this
production will be recycled and the remaining 1% used to generate energy.
The paper is Carbon Balanced with World Land Trust, an international
conservation charity, who offset carbon emissions through the purchase and
preservation of high conservation value land. Through protecting standing
forests, under threat of clearance, carbon is locked-in, that would otherwise
be released.
232 | Berkeley Group 2024 Annual Report
The Berkeley Group Holdings plc
Berkeley House
19 Portsmouth Road
Cobham
Surrey KT11 1JG
www.berkeleygroup.co.uk
Registered number: 5172586