The company highlighted this morning that “other parties have chosen to leave the business as a result of the costs and efficiency impact of regulatory and planning uncertainty on a steady production pipeline.”
According to Contract Journal, Berkeley’s focus at the moment is on evolving the product to remove cost, weight, and difficulty while continuing to work with the numerous statutory bodies to achieve the numerous regulatory approvals necessary for efficient future delivery, according to Rob Perrins, chief executive, who also announced an increase in profits for the entire group.
With all 96 modules installed on-site, the company said that its testbed application of Berkeley Modular’s initial modules for the urban dwelling at Kidbrooke Village was now finished.
Berkeley Group’s pre-tax profit increased 9% to £604 million in the year ended in April. Given the state of the market and the shifting building codes, Perrins praised the sales and construction teams for their outstanding achievement. However, he issued a warning that sales in the upcoming year would be 20% lower than in 2022–2023 due to market conditions and a decline in off-plan deals.
He claimed Berkeley was experiencing improved supply chain competitiveness on build cost inflation, particularly for larger packages. He predicted that build cost inflation would reach negligible levels by the end of the year.