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Berkeley's premium is tough to justify

The housebuilder did not shy away from bad news, but that does not make it much easier to swallow.
June 21, 2023
  • Pre-tax profits beat forecasts
  • Operating margin getting tighter

On the morning of Berkeley Group’s (BKG) results release there was a lot of other news to take on board. Core UK inflation hit a fresh 30-year high; the two-year gilt yield reached 5.1 per cent, the highest level since 2008; national debt hit 100 per cent of GDP for the first time in over six decades; and annual house price growth slowed to a pace not seen since September 2020 when Covid-19 restrictions dragged on the market.

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