1、HomesCommunitiesPeople2024 AnnuAl RepoRtWho we areBerkeley builds homes and neighbourhoods across London,Birmingham and the SouthofEngland.Our purposeOur passion and purpose is to build quality homes,strengthen communities and make apositive difference to peoples lives.We use our sustained commercia
2、l success tomake valuable and enduring contributions that benefit all of our stakeholders.HomesCommunitiesPeopleFulfilling our purpose through brownfield regenerationWe believe reviving brownfield land is the most sustainable way tosolve the housing crisis,strengthen left behind places and breathe n
3、ewlife into ourtowns and cities.We are the only majorUK homebuilder focused on regenerating brownfield land,as we take forward 32 of the UKs most challenging urban sites.Oval VillageContentsSee our portfolio pages 10 to 1101103|Strategic repOrt01|Who we are02|Highlights of the year04|Delivering our
4、purpose through brownfield regeneration10|Brownfield regeneration at scale12|Our business model14|Creating long-term sustainablevalue16|Chairmans statement18|Chief Executives review26|Market overview29|Trading and financial review32|Key Performance Indicators(KPIs)34|Responsible business at a glance
5、36|Our Vision 2030 strategy overview38|Our Vision 2030 progress58|Our stakeholders58|Section 172(1)Statement 66|ESG performance68|Climate-related disclosures89|Non-financial and sustainability information statement90|How we manage risk93|Viability statement94|Risks104164|cOrpOrate gOvernance104|Chai
6、rmans introduction106|Board of Directors110|Board leadership and company purpose112|Our cultural framework114|Stakeholder engagement117|Division of responsibilities120|Nomination Committee report126|Audit Committee report130|Directors remuneration report157|Directors report165232|Financial Statement
7、S165|Independent Auditors Report182|Consolidated Income Statement182|Consolidated Statement of Comprehensive Income183|Consolidated Statement of Financial Position184|Consolidated Statement of Changes in Equity185|Consolidated Cash Flow Statement186|Notes to the Consolidated Financial Statements224|
8、Company Balance Sheet225|Company Statement of Changes in Equity226|Notes to the Company Financial Statements231|Five year summary232|Financial diary232|Registered office and advisorsCover images:The Green Quarter,EalingKidbrooke Village,Greenwich01103|Strategic repOrt104164|CORPORATE GOVERNANCE16523
9、2|FINANCIAL STATEMENTSBeRkeley GRoup2024 ANNUAL REPORT|01Highlights of the year557m2023|604mprofit before tax 16.2%2023|18.7%pre-tax return on equity1 532m2023|410mnet cash 33.632023|31.01net asset value per share1 1,701m2023|2,136mcash due on forward sales1 6,929m2023|7,629mFuture gross margin in l
10、and holdings1See our trading and financial review on pages 29 to 313,521homes delivered(plus 406 in jointventures),including some 10%of Londons new private and affordable homesHomes delivered 63%homes had zero defects reported by customers,compared to just 5%across the industry(HBF,March 2024)Qualit
11、y HomesFinancial highlights87%homes delivered during the yearare on regenerated brownfield landBrownfieldHorlicks Quarter,Slough1 Read more about our alternative performance measures on pages 214 to216(note 2.24)32long-term regeneration sites,of which 27 are under constructionRegeneration+80.2Net Pr
12、omoter Score(NPS)from our customers,compared to an industry average of 44(HBF,March 2024)Customers 370mof subsidies provided to deliver affordable housing and committed to wider community and infrastructure benefitCommunity benefit580acres of new or measurably improved natural habitats across 56 bio
13、diversity net gain sitesRegreening citiesAccreditations See our ESG performance on pages 66 to 67 CommunitiesPeople9.5%of our employees are graduates,apprentices or sponsored studentsemployees 26,000UK jobs supported per annum over the last five years,an average of 6.6 jobs per completed home Workfo
14、rce cDp climate change2023 A ratediSS eSg corporate rating 2024Prime statusmSci eSg rating 2023AAAS&p global corporate Sustainability assessment 2023Sustainability Yearbook Member and Industry MoverSustainalytics eSg risk rating2024Low risk ratingFtSe4goodListed since 2003Prince of Wales Drive,Batte
15、rsea01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS02|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|03Creating quality homes where they are needed mostOur urban regeneration sites deliver thousands of high quality private and affordable homes in and ar
16、ound our towns and cities.87%homes delivered on brownfield landDelIVeRInG ouR puRpoSe tHRouGH BRoWnFIelD ReGeneRAtIon3,927homes delivered(including joint ventures)Clarendon,HaringeyEvery neighbourhood we create is individually designed and built with great care and attention to detail.This is the on
17、ly 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
18、 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,March2024)Poplar GasworksSee more on Poplar
19、Gasworks on page 1101103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTSBeRkeley GRoup2024 ANNUAL REPORT|0504|BeRkeley GRoup2024 ANNUAL REPORTCreating strong and connected communitiesWe focus on challenging urban regeneration sites,working closely with local people and council
20、s 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.580acres of new or improved natural habitats being createdDelIVeRInG ouR puRpoSe tHRouGH BRoWnFIelD ReGeneRAtIo
21、nRoyal Arsenal Riverside,WoolwichWhite City LivingWe 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
22、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
23、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.370mof affordable housing subsidies an
24、d community infrastructure contributions25Community plans being delivered in partnership with our residents and neighboursWhite City LivingCelebrating 15 years of partnership and regeneration at Woodberry Down,Hackney01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTSBeRkele
25、y GRoup2024 ANNUAL REPORT|0706|BeRkeley GRoup2024 ANNUAL REPORTMaking a positive difference to peoples livesOur regeneration projects bring important benefits to urban communities,including affordable and private homes,public amenities such asschoolsand parks,andalasting supply ofjobs and training.D
26、elIVeRInG ouR puRpoSe tHRouGH BRoWnFIelD ReGeneRAtIon+80.2net promoter Score from our customers on a scale of-100 to+100Berkeley Group apprentices and graduates at Royal Arsenal RiversideOur regeneration sites demonstrate the wide-ranging social benefits that come from transforming underused urban l
27、and 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 onour sites.We prov
28、ide 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 legacie
29、s 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 gra
30、duates,apprentices or sponsored students26,000uk jobs supported on average per annumMental Health Awareness Week atOval VillageHartlandVillage,Fleet01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTSBeRkeley GRoup2024 ANNUAL REPORT|0908|BeRkeley GRoup2024 ANNUAL REPORTlondon
31、WatfordFleet Slough reading 2211910oxford Guildford Southamptonm25m3m4m40m1m23Gatwick Heathrow London BridgeEustonWaterlooSt.PancrasPaddingtonCity AirportHeathrowVictoria2232022625517272421151618613123141945431Grand UnionPoplar Riverside178Brownfield regeneration at scale in production1 250 City Roa
32、d,lslington2 Beaufort Park,Hendon3 Bermondsey Place,Southwark4 Bow Green5 Camden Goods Yard6 Chelsea Creek7 Clarendon,Haringey8 Grand Union,Brent9 Green Park Village,Reading10 Hartland Village,Fleet11 Horlicks Quarter,Slough12 Kidbrooke Village,Greenwich13 Kings Road Park,Fulham14 Lombard Square,Plu
33、mstead15 London Dock,Wapping16 Oval Village17 Poplar Riverside18 Prince of Wales Drive,Wandsworth19 Royal Arsenal Riverside,Woolwich20 Silkstream,Barnet21 South Quay Plaza,Docklands22 The Eight Gardens,Watford23 The Green Quarter,Ealing24 TwelveTrees Park,Newham25 West End Gate,Paddington26 White Ci
34、ty Living27 Woodberry Down,FinsburyPark Future sites1 Aylesham Centre,Peckham2 Borough Triangle3 Romford*4 Sutton5 Syon Lane,Brentford*Berkeley is the only large UK homebuilder to align with Government on prioritising brownfield land,as we progress 32 of the countrys most challenging projects,27 of
35、which are in delivery.Grand UnionPoplar RiversideUnlocking 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 need
36、s.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 and200 apprenticeships,community amenities and an innovative multi-storey industrial workspace.Scan the code for more information Part of th
37、e 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 wa
38、lk,along with a secondary school,crche,shops,cafs,restaurants and flexible commercial space for employment,enterprise and leisure.Scan the code for more information*Pipeline sites01103|Strategic repOrt104164|CORPORATE GOVERNANCE00-00|FINANCIAL STATEMENTS10|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GR
39、oup2024 ANNUAL REPORT|11Our business modellong-term sustainable added-value modelBerkeley 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 landholdings.We seek to find the optimum
40、 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 determine
41、d 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 andcomplexity of brownfield development and is appropriate
42、for the prevailing operating environment.Second,invest in thebusiness(land and work-in-progress)atthe 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-
43、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 developme
44、ntDesigning and planning new homes Reputation for successful regeneration delivery underpins the planning process Embrace a highly collaborative approach toplacemaking Design unique and beautiful places in partnership with local authorities and communities Continually evolve development plans to gen
45、erate the best outcome for allstakeholdersBuilding 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-le
46、d sites Utilising modern methods of construction and investing in digital technologies to enhance and modernise our production processesmarketing and selling new homes Berkeleys brand leadership and reputation for lasting product quality provides a clear competitive advantage in core markets Diversi
47、fied sales channels across owner-occupiers,private and institutional investors,retirement living and affordable housing providersSustainability and climate change Ambitious,sustainable and long-term business strategy Our Vision 2030:Transforming Tomorrow Strong focus on climate action,nature recover
48、y and strengthening communities Focus on urban brownfield regeneration,which is inherently sustainable,socially inclusive and supports a lower carbon model for modern livingplacekeeping and stewardship Demonstrable long-term track record of high levels ofcustomer service and satisfaction Long-term s
49、trategies for effective estate and community management,working in partnership with residents andmanagingagentsOur brands100%owned:Our valuesJoint venture:excellence through detailBe passionaterespect peoplethink creativelyHave integrityFor more information www.berkeleygroup.co.ukRead more about our
50、 culture and values on pages 112 to 113Read more about creating long-term sustainable value on pages 14 to 15Read more about our investment case on page 1901103|Strategic repOrt104164|CORPORATE GOVERNANCE00-00|FINANCIAL STATEMENTS12|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|13
51、Creating long-term sustainable valueBerkeley 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 qua
52、litynew homesLeading the industry in producing high quality,safe homes19,608Berkeley 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 fiveyears.30Berkeley has had a strategic
53、partnership with RoSPA for five years,helping to create the Safer by Design framework.30developments 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 aver
54、age of just two.place creation and impact on servicesCollaborative placemaking to revive under-used spacescommunity creationEnsuring relationships are underpinned by trust and partnership17,000515Berkeley has built more than 17,000 homes on brownfield land over the past five years.87%of completed ho
55、mes have been on brownfield land.Berkeley is delivering 515public amenities on our developments currently under construction,including indoorcommunity spaces,grocery and retail stores,sports facilities and childrens play spaces.2.0bn40%Berkeley made a community contribution of 0.4 million in 2023/24
56、 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 susta
57、ined investment in our local communities.More than 40%of Berkeley Foundation Partners have been supported for more than five years.promotinglocal skills and employmentProviding good,local jobs and inspiring people to join the built environment sector 26,000Berkeley has supported on average,26,000 jo
58、bs per annum directly and indirectly through its supply chain over the lastfive years.2,500Berkeley 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 contributionOn average,every n
59、ew home built by Berkeley in thelast five years has generated 290,000 of value tothestate through taxation and contributions to thecommunity.13.3bnBerkeleys contribution to UK GDP was 2.5 billion in 2023/24 and 13.3 billion for the last five years.3.6bnBerkeleys total UKtaxcontribution was 0.8billio
60、n 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 impactCreating sustainable homes and placesimproving access to natureConnecting people with nature and making a measur
61、able contribution to the natural environment24613,600Berkeley 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 ov
62、er 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.58015%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 yea
63、r 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 Berkeleys f
64、inancial data as well as publicly available statistics.01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS14|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|15Chairmans statementIn the financial year ended 30April 2024 Berkeley delivered positive outcomes fo
65、r 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
66、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
67、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
68、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 d
69、evelopment.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
70、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
71、 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.Berkeleys performance over the past year is testament to the strengt
72、h 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
73、 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
74、the highest quality.On behalf of the Board,I would like to extend our sincere thanks for their hard work.michael Dobson|Chairman19 June 2024Unlocking brownfield sites Berkeley is currently the only UK homebuilder with the skills and resources to deliver urbanbrownfield regeneration at scale.What are
75、 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
76、;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 q
77、uality 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 cyclesBefore regeneration:Battersea gasworks After regeneration:Prince of W
78、ales Drive Berkeleys performance over the last year is testament to the strength and resilience of our business model.michael Dobson|Chairman01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS16|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|17Chief Executi
79、ves reviewRecognising 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 todays market conditions.Berkeley has identified some 4,000 h
80、omes 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 abo
81、ve 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 Berkeleys long-term corporate 15%pre-tax ROE target.Berkeleys passion and purpose is to build quality ho
82、mes,strengthen communities and make a positive difference to peoples 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 consens
83、us 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 andpace.For this to happen,planni
84、ng 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
85、well-intended,when taken together they have stifled investment,housing delivery and growth.In terms of corporation tax alone,the industrys 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 w
86、ith 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 Berkeleys people for their hard work,resilience and steadfast focus on our customers and comm
87、unities to achieve the best possible outcomes for all stakeholders in this exceptionally challenging environment.investment caseBerkeley has a strong track record of delivery,profitability and cash generation through market cycles,reflecting its uniquely long-term business model,which is underpinned
88、 by five key features:Sustained Shareholder Returns526%TSR(Total Shareholder Return)since 1 January 20071only large uk homebuilder focused on brownfield regeneration at scale Delivering sustainable homes and neighbourhoods on brownfield land with significant socio-economic benefits Aligned with Gove
89、rnments brownfield first agenda Each project individually designed in partnership with local authorities and communities 2Core london and South east markets are systematically under supplied London has global appeal,withdeep and proven demand Berkeley delivers over 10%of Londons new private and affo
90、rdable homes each year3Significant 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 1.7billion Land holdings estimated future gross margin of 6.9 billion
91、 across 54,000 homes4unrivalled 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 consent5Added value developer focused on maximising returns on everysite Bottom-up approach which id
92、entifies 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 la
93、nd approach and forward selling Agile and responsive to the prevailing operating environmentGrand Union,BrentBerkeley 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 perf
94、ormance in a challenging and volatile operating environment,demonstrating the resilience of Berkeleys business model with its focus on the countrys 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
95、 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 todays 5%increase in guidance for FY25s pre-t
96、ax 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 a
97、nd 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
98、 special dividend to be paid in September and accompanied by a share consolidation Fy25 guidance increased by5%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 p
99、latform,alongside its core trading business,adopting a strategic approach to maximising returns from its long-term regeneration sitesWe 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.r
100、ob perrins|Chief Executive01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS18|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|19Chief Executives review continuedWe continue to take action on our ambitious long-term strategy,Our Vision2030,helping to drive
101、our performance,spur innovation and maximise our positive impacts on society,the economy and the natural world.rob perrins|Chief Executiveplanning and regulatory environmentThe operating environment has become increasingly uncertain over recent years as a high number of well-intended regulatory and
102、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 re
103、newed 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 continu
104、es 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:refr
105、aining 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 bod
106、ies 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 whic
107、h 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 flexib
108、le.Strategy positioning and establishment of rental Fundcore Business StrategyIn 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 cha
109、llenges presented by the planning and regulatory environment.Despite this challenging backdrop,Berkeleys 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 prof
110、it 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 ma
111、rket 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 s
112、olution 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
113、 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 a
114、n 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 sites development solution and ensuring our operating costs are aligned to the size of t
115、he 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 se
116、e pages 36 to 5701103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS20|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|21Chief Executives review continued Berkeleys position has always been that,if it cannot deploy capital to deliver appropriate risk-adjusted
117、 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
118、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
119、 segment to the benefit of both society and shareholders.establishment of Berkeley Build to rent(“Btr”)platformRecognising 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
120、,which will be developed over the next ten years,comprising some 4,000 new homes across 17 of the Groups 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
121、 December with the Companys 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 countrys most under-supplied market,from institutional capita
122、l 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 cre
123、ating 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 inv
124、estment 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 20112014 when we developed and managed
125、 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 gene
126、rated 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 Berkeleys balance sheet and fully supporting the long-term 15%pre-tax
127、 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 exi
128、t route for any reason over the course of the next ten years.Housing market andOperationsSalesThroughout 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
129、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 a
130、nd 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
131、 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 l
132、evel will moderate over the course of the coming year while the prevailing sales rates continue.Equally,and as anticipated,Berkeleys 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 normalis
133、e.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 uncertaint
134、y on a number of macro fronts which weighs on market sentiment.Shareholder returnsThe 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
135、 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:2024m2023mDividends paid98.198.5Share buy-backs undertaken72.3155.
136、4Shareholder return in the financial year170.4253.9Dividends 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 20
137、24(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
138、share.This includes 29.2 million in respect of the year annual return to 30September 2024.When combined with the 35.0 million dividend paid in March,there is currently 218.9 million still due for return by 30September 2024.This will be completed by:A further 34.9 million(33.00 pence per share)interi
139、m dividend to be paid on 26 July 2024 to shareholders on the Companys 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
140、 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
141、.Oval Village01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS22|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|23Chief Executives review continuedcma investigationBerkeley notes the outcome of the Competition and Markets Authority(“CMA”)market study into
142、 house-building,which concluded on 26February 2024 with the CMAs decision not to launch a market investigation at this time.As one of the eight large housebuilders covered by the CMAs subsequent investigation into possible anti-competitive sharing of information in the housebuilding industry,we cont
143、inue to cooperate with the CMA and their enquiries.Self-remediation termsandcontractOn 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 3
144、0 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
145、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
146、Berkeleys 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
147、 rates to remain subdued for the near-term but is alert to the prospect of these responding decisively to evolving market conditions.More fundamentally,Berkeleys 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
148、 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 Governments identified local housing need of 94,000 per annum.land and planning Following extended planning processes and timescales,Berkeley has
149、 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 a
150、dded 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 developme
151、nt 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
152、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,B
153、erkeleys 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 Gr
154、oups 50%share of the anticipated profit on St Edwards 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 r
155、egulatory 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 Managements risk-adjusted assessment of the potential gross profit for each site,taking account of a
156、 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(30Ap
157、ril 2023:14,000 plots on 14 sites)following the transfer of the Guildford site to the land holdings.constructionFor Berkeley,build cost inflation in todays market is at negligible levels apart from some isolated trades where demand is high,reflecting a combination of reduced energy prices,the revers
158、al 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
159、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 b
160、uildings 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.OutlookThe last 12 months has seen a continuation of the
161、 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 re
162、turn 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
163、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 m
164、eet the challenges oftomorrow.Berkeley enters the coming year in a robust position with over 0.5billion 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
165、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 t
166、welve 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 t
167、he 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 UKs housing crisis,and we will
168、 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 at30 april 24change30 april 23Owned53,600-4,44558,045Contracted481+481Plo
169、ts54,081-3,96458,045Sales value27.6bn-1.6bn29.2bnAverage selling price(ASP)*516k+8k508kAverage plot cost*49k-1k50kLand cost(%)9.4%-0.4%9.8%Gross margin6,929m-700m7,629mGM%25.1%-1.1%26.2%*Reflects joint venture sites at 100%01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS2
170、4|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|25 Figure 1 Construction starts activityFigure 2 Regional housing supplyFigure 3 transaction volumes-68%Pandemic&recovery-50%125,000100,00025,00050,00075,000150,000175,000200,000275,000300,000225,000250,0005,00040,00010,00015,00020,0
171、0035,00030,00025,00045,00050,00055,00060,000London Starts(rolling 12 months)England StartsLondon TargetEngland TargetEngland Starts(rolling 12 months)2023Q4 2021Q4 2019Q4 2017Q4 2015Q4 2013Q4 2011Q4 2009Q4 2007Q4 London Starts(rolling 12 months)3%SDLT levy imposedPandemic&recovery Minibudget200,0001
172、00,00050,000150,0001,250,000250,000LondonEngland(excl.London)England Starts(rolling 12 months)250,0001,000,000500,000750,0002022Q4 Q4 2018Q4 2016Q4 2014Q4 2012Q4 2010Q4 2008Q4 2006Q4 East of EnglandEastMidlandsLondonNorthEastNorthWestSouthEastSouthWestWestMidlandsYorkshire and theHumber100,00090,000
173、80,00070,00060,00050,00040,00030,00020,00010,000 2021/22 2022/23 2023/24(EPC data)Housing target Berkeleys core marketsLondon Starts2020Market overviewThe housing market is sensitive to underlying sentiment and the prevailing macro-economic environment.It is therefore cyclical in nature,and Berkeley
174、 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 in
175、ternational 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 toconstrain supply.Inflation,having been in double digit territory a little over a year
176、ago,reduced to 2.3%in April 2024,nearing the Bank of Englands 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
177、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 un
178、certainty 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 transi
179、tional 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 Berkeleys core markets in Lond
180、on and the South East remain strong:Londons 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
181、 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,an
182、d investors can achieve appropriate yields,supporting the much needed rental market.london and the South east is systemically under-suppliedThe Governments 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 d
183、elivered 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 year
184、s,3 but still some 23%below the Governments 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 leve
185、l since 2016,excluding the short-term pandemic impacted period(see Figure 1).4 This is less than half of the Governments 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
186、the greatest in London(34%,lowest since 2011)and the South East(13%,lowest since 2015).5Based upon the Governments 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).Londons housing need was la
187、st 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 Londons assessed housing need every year.In 2022/23,there wer
188、e 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 p
189、er 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.8The situation is similar in the South East,which has a housing need as
190、sessment of 50,000 homes per year,6 compared to average completions of just over 40,000 per year over the last five years,3 anannual shortfall of 10,000 homes(20%).transaction volumesTransaction activity had recovered well post-pandemic.However,the full impact of recent economic events upon consumer
191、 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
192、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 Lond
193、on(see Figure 3).Current volumes are now 45%and 52%lower nationally and in London respectively than prior to this change.901103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS26|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|27Such investment(including some o
194、verseas 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,t
195、hus creating significant additionality beyond their direct purchases.Setting the conditions forgrowthIncreasing 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 num
196、ber 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 n
197、eeded.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 econ
198、omic activity,improves social mobility,and permanently increases the countrys 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
199、 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 brownfiel
200、d 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 sectors efforts to replicate historical record delivery levels achieved in tandem with signific
201、ant 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
202、 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 dow
203、nsizers.Market overview continuedTrading 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
204、: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 m
205、ix 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%).Berkeleys share of the results of joint ventures is a profit of 65.6 million(2023:96.3 million),with St Edwards pr
206、ofits arising predominately from completions at Royal Warwick Square and Millbank.taxationThe 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 t
207、ax authorities and observes all applicable rules and regulations in the countries in which it operates.Factors that may affect the Groups 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
208、Corporate Tax 170.5m SDLT 1.8m PAYE 70.3m Employees NI 15.0m Employers NI 27.8mFor 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,employers NIC and SDLT)and taxes borne by our employe
209、es of 85.3 million(PAYE and employees NIC).This total tax contribution does not include the indirect tax contribution paid by Berkeleys 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
210、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 incorp
211、orates 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 a
212、t a cost of 72.3 million under the Shareholder Returns Programme.trading performanceYear ended 30 april2024 m2023 mchange m%Revenue2,464.32,550.2-85.9-3.4%Gross profit644.5696.8-52.3-7.5%Operating expenses(164.8)(178.5)+13.7-7.7%Operating profit479.7518.3-38.6-7.4%Net finance costs12.0(10.6)+22.6Sha
213、re of joint ventures65.696.3-30.7Profit before tax557.3604.0-46.7-7.7%Pre-tax return on equity16.2%18.7%-2.5%Earnings per share basic373.9p426.8p-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
214、(December 2020);(7)DLUHC Live Table 253a;(8)GLA;(9)Land RegistryWoodberry Down,Hackney01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS28|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|29Financial positionThe Groups net assets increased by 228.2 million d
215、uring the year to 3,560.5 million(2023:3,332.3million).inventoryInventories of 5,283.9 million include 725.8 million of land not under development(2023:927.1million),4,347.7million of work in progress(2023:4,249.2 million)and 210.4million of completed stock(2023:125.8million).During the year,three s
216、ites moved from land not under development into work in progress:Broadway East in Bethnal Green,Bow Green and Winterbrook Meadows in Wallingford.creditorsTotal 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 mill
217、ion(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 sevenyears.Creditors include provisions of 209.8
218、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 april2024 m2023 mchange mNon-current assets393.4394.9-1.5Inventories5,283.95,302.1-18.2Debtors12
219、7.092.3+34.7Creditors(2,775.8)(2,867.4)+91.6Capital employed3,028.52,921.9+106.6Net cash532.0410.4+121.6Net assets3,560.53,332.3+228.2Shares,net of treasury and EBT105.9m107.5m-1.6mNet asset value per share3,363p3,101p+262pabridged cash Flow for year ended 30 april2024 m2023 mProfit before taxation5
220、57.3604.0Taxation paid(170.5)(133.7)Net investment in working capital(105.9)(50.1)Net investment in joint ventures(3.7)(33.0)Other movements14.88.2Shareholder returns(170.4)(253.9)Increase/(decrease)in net cash121.6141.5Opening net cash410.4268.9Closing net cash532.0410.4net cashThe Group ended the
221、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 assets and navpSNet assets increased over the year by 228.2 million,or 6.8%to 3,560.5 million
222、(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 1.0million.The shares in issue,net of treasury and EBT shares,closed at 105.9 million compared to 107.5 million at the sta
223、rt 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 assetvalue per share is 3,363 pence at 30April2024,up 8
224、.4%from the 3,101 pence a year ago.Trading and financial review continuedThe Green Quarter,EalingFundingThe Groups 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;
225、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
226、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 Groups gross cash holdings of over 1 billion throughout the year have been placed on deposit with it
227、s 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 floati
228、ng 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 venturesIncluded within non-current assets are investments in joint ventur
229、es accounted for using the equity method which are at 227.0million at 30 April 2023(2023:223.4million).The net 3.6 million increase in the year arises from Berkeleys 50%share of three movements:Profits earned in joint ventures of 65.6 million;Dividend distribution from StEdward of 74.9 million;and C
230、ash contributions(loans)to site specific joint ventures of 12.9million.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 Vill
231、age in Reading and Highcroft in Wallingford.In total,2,502 plots(30 April 2023:2,435 plots)in Berkeleys 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 appr
232、oved by the Boardand signed on its behalf by:rob perrinsChief Executive19 June 202401103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS30|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|31Our KPIs are aligned to the business strategy and are used to actively
233、monitor business performance.Key Performance Indicators(KPIs)Financial Kpisprofit before tax (m)604.0 551.5 518.1 503.7 20202021202220232024This is our core measure of profitability,our absolute return from the sale anddelivery of new homes in the year.Definition:Profit earned by the Group during th
234、e 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 16.620202021202220232024This is the efficiency of the returnsgenerated from shareholder equityin the business.read more on remu
235、neration page 131 Definition:This is measured by calculating profit before tax as a percentage of theaverage of opening and closing shareholders funds.See page 216.link to strategy:net cash (m)268.9 1,128.2 1,138.9 20202021202220232024This provides a measure of the financial strength of the Group.Th
236、e 0.5 billion of net cash at 30 April2024 combined with 1.2 billion ofborrowing capacity provides the Groupwith 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 2020202120222023
237、2024This 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
238、to strategy:cash due on forward sales (m)1,701 2,136 2,171 1,712 1,858 20202021202220232024This 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 cust
239、omers 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 Groups joint ventures.See page 216.link to strategy:Future gross marg
240、in in land holdings (m)8,258 6,884 6,417 20202021202220232024This provides a measure of expected value in the Groups land holdings,including its share of joint ventures,in the event that it successfully sells and delivers the developments planned for.Definition:This represents managements risk-adjus
241、ted assessment of the potential gross profit for each of the Groups 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
242、 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 Kpisnet promoter Score(npS)(Rate)78.820202021202220232024Our six month rolling NPS is an indicator of the success of our efforts to provide world-class customer
243、 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
244、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)20202021202220232024This measure shows the number of reportable injuries during the year,in relation to the
245、 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
246、by the average number of people working across our activities in the year.link to strategy:Direct apprentices and training (%)7.29.320202021202220232024This measure shows the proportion of our employees who are an apprentice,graduate or sponsored student.On average,we had 150 apprentices and approxi
247、mately 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)emiss
248、ions intensity (tCO2e/100 sq m)0.300.270.610.951.2420202021202220232024This 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 fur
249、ther 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)37056055620
250、427020202021202220232024This 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 val
251、ue 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 (%)878920202021202220232024This me
252、asure 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
253、.link to strategy:Key|Strategy Customers Quality Communities Climate action Nature Employee experience Modernised production Future skills Supply chain Shared value80.279.277.277.95279721241179.510.08.987868601103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS32|BeRkeley GRou
254、p2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|33Responsible business at a glanceBerkeley 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 ambitiou
255、s 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 issuesA materiality assessment was undertaken when developing our strategy
256、 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 goalsTh
257、rough 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 implement
258、ation phase of our strategy.a sustainable businessWe 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
259、and environmental management.We are committed to playing our partinachieving the United Nations Sustainable Development Goals(SDGs).We have identified six goals that we have the greatest opportunity to contribute tothe achievement ofthrough the implementation of OurVision 2030.Scan the code to find
260、out more about our approach to sustainabilityOur 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 eSgOur Vision 2030 provides a fr
261、amework 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
262、 36 to 57engaging stakeholdersThe 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 tostrategic business performance.We engage with stakeholders to understand their opinions and respond to t
263、heir 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.awardsRead more about our stakeholders on pages 58 to 65the Berkeley FoundationWe established the Berkeley Foundat
264、ion 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 Foundations charity partners.Read more about the Berkeley Foundation on pages 56 to 57performance and disclosuresESG
265、performancepages 66 to 67Climate-related disclosures pages 68 to 88Link to ESG disclosureswww.berkeleygroup.co.uk/esgNon-financial and sustainability information statement page 89Strong governanceOur Vision 2030 is overseen by a team at Group level and managed by a network of subject matter experts
266、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-dayOur Vision 2030
267、 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 2023Housebuilder of the YearreSi awards 2024 Large Developer of the
268、 Yearnational Sustainability awards 2023 Conservation Awardin-house research Outstanding Achievement Award for ten years runningBetter Society awards 2024 Environment AwardpoliciesWe have policies in place to govern our day-to-day activities and the behaviour of our employees,partners and supply cha
269、in across key topics such as business ethics,human rights,sustainability,quality,health,safety and wellbeing.Kidbrooke Village,GreenwichConstruction activity at Bow Green01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS34|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024
270、ANNUAL REPORT|35Our Vision 2030 strategy overviewPlaces that stand the test of time What we createCustomersQualityCommunitiesClimate actionnaturePut our customers at the heart of our decisions and provide an industry-leading home buying experience.Lead the industry in producing high quality,safe hom
271、es 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 c
272、ontribution 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,
273、values and working culture.Long-term regeneration and placemaking can strengthen communities and make a lasting positive difference to peoples 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 w
274、ant to play a lead role in natures recovery and to create more beautiful,wild and open spaces in the heart of cities,towns and communities.Long-term goalWhy is this a priority?Link to stakeholdersLink to risksOur business strategy sets out our vision to maximise our positive impact on society,the ec
275、onomy 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 203014579133671314451113101113101113 Environment Customers
276、Communities and local government Environment Customers Government,regulators and industry Customers Communities and local government Customers Government,regulators and industry CustomersExceptional people and resources How we workemployee experienceModernised productionFuture skillsSupply chainShar
277、ed valueCreate 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
278、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 sh
279、areholders 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 deliver
280、ing 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
281、 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 goalWhy is this a priority?Link to stakeholdersLink to risk
282、s6121112131461412101112141238Key|risks1 Economic outlook2 Political outlook3 Regulation4 Land availability5 Planning process6 Retaining people7 Securing sales8 Liquidity9 Mortgages10 Climate change11 Sustainability12 Health and safety13 Product quality and customers14 Build cost and programme15 Cybe
283、r 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 chain01103|Strategic repOrt104164|CORP
284、ORATE GOVERNANCE165232|FINANCIAL STATEMENTS36|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|37Our Vision 2030 progressPlaces that stand the test of time What we createCustomersQualityCommunitiesClimate actionnature A personalised experience for our customers,resulting in an indust
285、ry-leading Net Promoter Score(NPS)of80.2.10 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 team
286、s 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 C
287、ommunity Plans across all developments.Delivering 515 public amenities such as shops and play areas.Achieved a place on CDPs prestigious Climate A List for transparency and performance.Completed 48 embodied carbon studies to date.Engaged with aluminium manufacturers on lower carbon products.Progress
288、ed 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 appro
289、ach to environmental netgain.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
290、 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 RoSPAs Safer by Design Gold stan
291、dard.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 peoples quality of life on new developments.Undertake embodied carbon assessments and target r
292、eductions 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
293、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 20232029 key medium-term targetsExceptional people and res
294、ources How we workemployee experienceModernised productionFuture skillsSupply chainShared value2024 performance highlights 20232029 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.
295、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-manufacture
296、d 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
297、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 trai
298、ning 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
299、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 pos
300、itions 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 Berkel
301、ey 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
302、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
303、 employee engagement with the Foundation year-on-year.Leverage skills and expertise across the Group to support the Foundations charity partners.Demonstrate the impact of the Berkeley Foundations work supported by the Group.On track01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL ST
304、ATEMENTS38|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024 ANNUAL REPORT|39A personal touch for our customersBuying 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 ser
305、vice 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 an
306、d 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.+
307、80.2net promoter Score compared to an industry average of 44(HBF,march 2024)91%of our homes had zero defectsor fewer than fivedefects,as reported byourcustomers98%customers would recommend us to a friend,compared to an industry average of 90(HBF,march 2024)Our Vision 2030 progress continued10 years
308、of outstanding customer experienceWe 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 a
309、lso 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 reli
310、able 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 Berkeleys position as a responsible and sustaina
311、ble developer.This section highlights key initiatives and progress across our 10 priorities.The Berkeley Groups unwavering commitment to excellence and dedication to ensuring customer satisfaction is deserving of this remarkable achievement,winning both the prestigious 2024 Outstanding Achievement A
312、ward for Customer Satisfaction in the housebuilding industry alongside the 2024 Gold Award.The outstanding performance is a testament to Berkeleys hard work and the commitment to ensuring customers are satisfied throughout their purchase.tom Weston|Chief Executive Officer,In-house ResearchStrategy i
313、n actionDelivering 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
314、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 t
315、o the customer.Excellence through detail a personalised customer journeyFollow up post enquiryVisit to development sales and marketing suiteFollow up post visitMeet and greet post reservationAd hoc video updates of site progressionCustomer moving in guide providedMeet the team community eveningCusto
316、mer open day to measure upHandover to the customercontinued supporta focus on qualityQuality training for all construction staffDetailed training on high risk areasRobust internal standards and processesFirst line of defence Site controls and checksSecond line of defence local quality team checksthi
317、rd line of defence Group quality team checksregulatory compliance Regulatory requirements and submissionsCustomer service teams and opportunity to provide feedbacktwo year warranty covered by Berkeley 10 year build warranty through a third-party providerWork in partnership to ensure the stewardship
318、of communal spaces and facilities Key|StrategyCustomersQualityCommunitiesClimate actionNatureEmployee experienceModernised productionFuture skillsSupply chainShared value01103|Strategic repOrt104164|CORPORATE GOVERNANCE165232|FINANCIAL STATEMENTS40|BeRkeley GRoup2024 ANNUAL REPORTBeRkeley GRoup2024
319、ANNUAL REPORT|41Our Vision 2030 progress continuedUsing 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 pla
320、n 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 regene
321、ration 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 progres
322、s 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 Commu
323、nity 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 munity engagementcommunity needs analysisvision for the communitypartnershipsSchedule of engagementQuality o
324、f lifelong-term governance and stewardshipAt 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 no
325、w 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 outs
326、et.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 m
327、ore 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 bot
328、h 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 t
329、he 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 Londons most progressive riverside community,motivating people to be more sustainable and inspiring t
330、hem to appreciate and nurture the natural landscape they live in.Inaddition to the riverside park,we will provide a new community green at the heart of the development for all touse.Partnerships allow for the development of long-lasting projects where resources are shared,participation levels increa
331、se,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
332、 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 the
333、y 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,
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