UK's Berkeley appoints Rob Perrins as executive chair to lead growth strategy
Berkeley
on Friday proposed the appointment of CEO
Rob Perrins
as executive chair to succeed
Michael Dobson
and lead its 10-year strategy to invest 5 billion pounds ($6.73 billion) in building new homes.
Shares in the high-end home builder dropped 8% and were headed for their worst day since March 2020, as it also reported results and forecast fiscal 2026 and 2027 profit below market expectations as affordability concerns weigh on the sector.
"I believe the market is overly focused on the very short term, while the long-term prospects for this business remain unchanged," Peel Hunt analyst Clyde Lewis said, saying the share move is likely an over-reaction to the cautious outlook.
As part of the board reshuffle due to Dobson's planned departure in September, the company said finance chief
Richard Stearn
would become CEO to replace Perrins.
During Dobson's nearly three-year tenure, Berkeley's shares have risen 20%, outperforming rivals Barratt Redrow, Taylor Wimpey and Persimmon.
Berkeley said on Friday it can allocate 5 billion pounds in investments under its 2035 growth strategy, which will include delivering 4,000 rental homes through its Build to Rent platform.
The company earmarked 2 billion pounds of shareholder returns over that period.
British finance minister Rachel Reeves' spending review outlined an additional 10 billion pound investment to build thousands more homes in England, on top of a 39 billion pound, 10-year affordable housing plan.
However, Britain's housing market, which has been under pressure from high interest rates and economic uncertainty, is also grappling with regulatory reforms aimed at enhancing safety and addressing systemic flaws, further slowing delivery.
Berkeley posted a 5% drop in pre-tax profit to 528.9 million pounds for the year ended April 30, slightly ahead of the 526.3 million pounds expected in an LSEG poll.
The company forecast fiscal 2026 pre-tax profit of 450 million pounds, below analysts' estimates of 477 million pounds. It expects fiscal 2027 profits to be at similar levels.
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