Good morning, ladies and gentlemen, and welcome to the Berkeley Group results presentation for the year ended 30th April 2026. I am Rob Perrins, and I'm joined today by Richard Stearn, our CEO, and Neil Eady, our CFO.

Berkeley has performed in line with guidance for the year and grown net asset value per share by 9% to £39.17. The operating environment is very uncertain, and this is across the board, from the Iran conflict, the UK political position, the economic outlook, the planning, tax and regulatory environment, and fast-moving technological change.

Berkeley is operating in the best city in the world and has wonderful landholdings. Our focus is to run the business for the long term, underpinned by financial strength.

In this environment, we will be agile in our approach, matching production to demand, being efficient in our operations, enhancing our landholdings, and investing in Berkeley Living. We will prioritize cash generation ahead of short-term profit targets, and only invest in new land opportunities where we can make our required rate of return.

We need government to address the ongoing delays in the planning system, allow homebuilders to make a return in line with the level of risk, and reduce stamp duty for new build to stimulate demand and growth. By operating with agility, focusing on cash generation, and adding value to our landholdings, we can continue our program of shareholder returns and maximizing long-term shareholder value.

I will now hand over to Richard Stearn, our CEO.

Thank you Rob, and good morning ladies and gentlemen. I will cover the following key areas today.

First, I'll start with the resilient results delivered for the year, before looking at our operational performance in what remains a volatile, complex and challenging environment. This will include a closer look at planning, and finish with a summary of the areas where strong political leadership can deliver real change.

I will then look at how we are implementing our strategy against this backdrop, and which levers we are prioritizing over the coming period. Then, before concluding with our guidance, I will provide an update on Berkeley Living as we move into its operational phase.

Berkeley has delivered a resilient set of results for the year. Pre-tax profit is £451 million, in line with guidance first provided two years ago.

We closed the period with net cash of £363 million, after returning £233 million to shareholders through share buybacks, paying £250 million of land creditors, and investing in Berkeley Living. Net asset value per share has increased by 9% to £39.17.

We have provided over £500 million of subsidies to deliver affordable housing and community infrastructure, and our Net Promoter Score remains industry-leading at 77.9. This performance reflects the focused execution of our strategy, disciplined cost control, and our agile response to extremely challenging macroeconomic and regulatory conditions.

As I have said, the operating environment remains volatile, complex and challenging. Beginning with sales, it has been a deeply frustrating year.

We began our financial year with a stable market, but from the end of August until the new year, transactions were adversely impacted by the pre-budget speculation over the potential for property and wealth taxes. The new year then began with a degree of optimism and widespread anticipation of interest rate cuts and gradual economic recovery.

However, the market was brought back down to earth by the economic ramifications of the conflict in the Middle East. Broadly speaking, the year saw six months of stability and six months of caution and concern, resulting in a lack of urgency and buyers standing off.

Overall, this meant that sales were around 15% down on the run rate of recent years. I say it is frustrating because there is no shortage of interest, buyers are just reluctant to commit.

What we are seeing is customers with a need or strong liquidity buying close to completion, with greater caution from customers buying two or three years off-plan. The last 10 years have seen real wage growth and high savings ratios, while property prices in London have barely moved.

London remains a global powerhouse city with a resilient and adaptive economy. It attracts international capital, talent and business, which supports sustained housing demand.

The market is there, it just needs incentive to commit, which requires stability, a return to falling interest rates, and improvement in sentiment. On the right-hand side of the slide, I have included the new starts graph showing the structural undersupply in London, which further underpins the outlook.

Moving on to build costs, these have remained flat during the year, with a competitive tendering environment offsetting inflationary pressures, and also reflecting the long-term nature of our procurement. We are conscious of the potential second and third-line impacts of the Iran conflict, and to the extent these do arise, we will seek to absorb them through optimization of our landholdings.

In terms of the BSR, the system is improving, but not consistently enough. We have negligible Gateway 2 exposure in our four-year plan, but remain concerned about the implementation of the Gateway 3 process.

Moving now to planning, on the one hand, government has done an excellent job in restoring the fundamentals of housing policy. However, it has still not fully recognized the extent to which the economic and regulatory environment has moved over the last 10 years or so, and the impact of this on development viability.

The Homes for Londoners package is a big step forward, but needs to be implemented constructively and with urgency. As we said in the preliminary announcement this morning, it is taking more than 50% longer to deliver an apartment building in London than it did 10 years ago.

Looking at the year as a whole, we have made good progress on a number of sites. This includes new masterplans at The Green Quarter and Woodberry Down, first planning consents at Bow Triangle, Hemel Hempstead and Brighton, the latter at appeal, and around 40 revisions to existing consents, including at TwelveTrees Park, White City, Bow Green, London Dock, Heron Wharf in Poplar, Lilybrook in Maidenhead, and Horlicks Quarter in Slough.

These have all contributed to positive momentum in our landholdings, which have seen around £300 million of value added to gross profit in the year. We were also successful on our appeal at Camden.

That is the good news. At both Beckton and Motspur Park, local refusals have required GLA call-ins.

Both applications carried officers' recommendations for approval. Most recently, our scheme for 850 new homes at the Aylesham Shopping Centre in Peckham was refused at appeal on the grounds of harm it would cause to the Peckham Rye Conservation Area.

A run-down shopping centre taking precedence over badly needed new homes on a site allocated for residential development. The decision was greeted with widespread consternation and starkly demonstrates the challenges that persist in the system.

On this slide, I have set out the actions we are advocating to address the decline in new home starts in London and reinvigorate economic growth in the capital. I will not take you through each of these as Rob alluded to the key points a few moments ago.

It is about pace, allowing appropriate returns to be made, and reducing taxes that deter investment. Moving now to strategic delivery, introduced 18 months ago, Berkeley 2035 provides an agile framework for Berkeley to allocate capital against a number of strategic levers, and also manage the business through periods of volatility.

Those levers are land investment and optimization, investment in construction work in progress in the core business, investment and growth in the Berkeley Living BTR platform, and shareholder returns. Against the backdrop of a delayed inflection in the market and regulatory environment, we've been taking appropriate actions to protect the business over recent periods.

Number one amongst these is maintaining a strong balance sheet. We have maintained cash above £300 million throughout, in spite of reducing land creditors by over £400 million.

We have limited land acquisition to three sites, funded by non-core disposals. We have reduced operating costs by 25% in real terms over a three-year period.

We have invested £300 million in an income-generating BTR platform. Importantly, through careful capital allocation, we have also been able to make £372 million of shareholder returns through share buybacks over the last 18 months.

Looking forward, and as we set out in our 1st of April strategy update, our strategic priorities are clear, with a continued focus on cash generation. We are not investing in new sites at present.

Instead, our focus is on adding value to our existing holdings to restore and enhance margin. We have added some £300 million in the last year.

We are being very disciplined in matching investment in work in progress to demand. We continue to invest in Berkeley Living, which I will talk more on shortly, but will keep the pace of investment under review, just as we are with the core business.

We remain very focused on quality of profit. Finally, we continue to see share buybacks as a value-enhancing use of capital in this environment.

Moving on to our BTR platform, Berkeley Living continues to move at pace. We welcomed our first residents at Foundry Yard in Alexander Gate in April, and in June at Navigator Place in Kidbrooke Village.

We are leasing up at very encouraging rates, and now have over 120 lettings agreed, with rents ahead of our expectations. We are getting a good understanding of the demographic that is renting from Berkeley Living: 80% are between the ages of 18 to 39, and the average gross household income is over £100,000.

At these levels, rent as a proportion of income is well below the national average, which is encouraging from an affordability perspective. Our first residents will move into the Waterman Building at Silkstream in Hendon shortly, and the Horlicks Quarter will also take its first residents later this summer.

Leasing at Grand Union and Eden Grove will begin later this year, and we anticipate having income stabilized at all six developments by the end of FY '28, an initial portfolio of 1,122 homes. I've included a number of BTR slides in the appendices to look at the overall market and provide a reminder of how Berkeley is capturing full value from these sites through Berkeley Living.

Finally, this slide summarizes our guidance. As set out on the 1st of April, we are targeting £1.4 billion of pre-tax profit over the next four years.

Our long-term operating margin range is 17.5% to 19.5%, and we will continue to focus on quality of profit. We have set the objective of returning ROCE in the core business to above 15% as soon as possible.

We are, however, operating in a highly complex and rapidly changing environment, and will always run Berkeley for the long term. While the current level of geopolitical and macroeconomic volatility persists, we will remain agile, matching supply to demand and tightly controlling costs.

Our primary focus will be on cash generation over short-term profits, providing the opportunity for increased shareholder returns. Thank you.

I will now hand over to Neil, who will take you through the numbers in more detail.

Thank you Richard. Good morning everyone.

I am Neil Eady, the Berkeley Group Chief Financial Officer. This morning, I will take you through the results, beginning with a summary of overall performance, then drilling down on the income statement, cash flow and balance sheet.

Let's start with a summary of performance for the year. We have delivered £451 million of pre-tax profit, in line with our guidance at the start of the year.

Earnings per share have decreased by 10.8% to 332p, reflecting lower profit, partially offset by share buybacks. Operating margin is 18.7%, slightly lower than the prior year.

Pre-tax return on equity is 12.5%, with return on capital employed of 13.8%. Looking at the financial position of the group.

Net assets are up marginally at £3.6 billion. The increase of £80 million in the year principally reflects that the profit after tax of £318 million exceeds shareholder returns of £233 million, which I will come back to later.

Net cash remains healthy at £363 million, with overall liquidity at the year-end therefore in excess of £1.5 billion. Net asset value per share has increased by 9% to £39.17, as a consequence of the net asset movement just mentioned, and most significantly, the acquisition of 6.3 million shares.

This slide sets out some of our key operational metrics. First, we have cash due on forward sales of £1 billion, a decrease from prior year due to reduced reservation rates.

This provides visibility on contracted near-term earnings and cash flow, with over 70% of sales for FY '27 already exchanged. As a reminder, this figure represents the cash still to collect on our exchanged private sales only.

It's therefore a cash, not a revenue figure, and excludes exchanged deposits, affordable homes and commercial property. Our customer deposit strategy remains 20% for forward sales.

The second important metric on this slide is the estimated future gross margin in our landholdings, which is reduced by £280 million to £6.4 billion from 52,763 plots. I will look at this in more detail later.

Turning now to the income statement and comparing this to the previous year. Revenue has decreased by 4% to £2.4 billion, mainly due to a lower average selling price, which reflects the mix of properties delivered, both tenure and location, rather than underlying sales price movements.

Gross profit is £597 million, representing a gross margin of 25.1%, slightly behind last year. Again, the reduction is driven by delivery mix.

Operating expenses have decreased by 6% to £150 million, despite what remains an inflationary environment, as we continue to focus on efficiency and exert close control on all areas of cost. Operating margin is 18.7%, which moderated from the half year to a level in line with our long-term range of 17.5% to 19.5%.

Our net finance income is £2 million compared to £14 million in the prior year, with interest earned on gross cash falling principally as result of lower interest rates. With St Edward now delivering out-of-London sites only, our share of joint venture profits are £3 million and will remain at this more modest level over the guidance period.

The effective tax rate for the year was 29.5% and fully reflects both the corporation tax rate of 25% and the 4% Residential Property Developer Tax. Overall, we delivered 4,076 homes at an average selling price of £546,000 in the year, compared to 4,047 homes at an average selling price of £593,000 last year.

In FY '27, volumes will be lower, but pricing will be back up to around FY '25 levels. It is clearly difficult to be more specific in these markets, and as we've said many times, we will always prioritize cash flow and quality of profit ahead of annual profit targets.

Moving to the cash flow. This slide sets out the key movements for the year, which resulted in an increase in net cash of £26 million to £363 million.

£451 million has been generated from pre-tax profits, of which £164 million has been absorbed by a net increase in working capital investment. I will run through the key movements within working capital shortly.

The other significant items are the £40 million distribution from the St Edward joint venture, the £233 million of shareholder returns through share buybacks, and the repayment of the Homes England loan of £17.9 million in the year. Berkeley has delivered £372 million of the £2 billion shareholder returns under Berkeley 2035 between the 1st of December 2024 and the 30th of April 2026, including £233 million of share buybacks this year, equating to 6.2% of the share capital.

This completes the £260 million target to the 30th of September 2025 and contributes £112 million to the next target of £640 million by the 30th of September 2030, which we are currently comfortably on target to meet. I will not go through each line on this balance sheet slide, as I will run through the three key numbers—inventories, investment properties and creditors—over the next three slides.

Drilling down into inventory. This slide sets out the £309 million net decrease in inventories in more detail.

Land and work in progress has decreased by £303 million, of which £82 million relates to transferring two additional BTR assets into investment property in the year. Within this balance, the overall land cost has decreased by £64 million.

Land not under development has risen by £9 million, following the completion of the acquisition of a site in Hersham, Surrey, in the first half of the year. Build WIP has reduced materially, as we continue to match production to demand, as set out by Richard, in these prevailing market conditions.

Completed stock reduced by £6 million in the year to £332 million. This is spread across a number of sites, providing immediately available product for prospective purchasers.

Moving to investment property. Investment property at £297 million reflects our investment to date on the first six BTR assets, two of which were transferred to the BTR platform in the first half of the year for £82 million.

Additional total capital expenditure of £69 million was spent on the six assets in the year. As at the 30th of April 2026, two of the assets, Foundry Yard, Alexander Gate, and Navigator Place at Kidbrooke Village, were completed, with Foundry Yard welcoming its first residents in April '26, and Foundry Yard in June '26.

As previously explained, we have adopted the cost option within IAS 40, and so will not revalue these assets in the balance sheet, but will provide information on market value at the balance sheet date as the portfolio matures. As at the 30th of April 2026, the fair value of the two completed assets was internally valued at £122 million, assuming they are sold within their SPVs.

For investments still under development, the fair value approximates cost. Turning to creditors.

Creditors have decreased by £291 million in the year. The first significant movement is the net £228 million reduction in land creditors, with £253 million settled in the year.

Second, there has been a decrease of £72 million in customer deposits, driven by the difference between current sales rates and the amount of revenue taken to the profit and loss account. The slide also sets out the future payment profile for the remaining £486 million of land creditors.

Scheduled land creditor payments in FY '27 total £114 million, with a slightly lower annual profile thereafter. Provisions representing post-completion development obligations, including those relating to building fire safety matters, have decreased slightly by £3 million in the year.

This slide summarizes our landholdings. Estimated future gross margin is £6.4 billion across 52,763 homes across 59 developments, down from £6.7 billion and 52,714 at the 30th of April 2025.

Through re-planning activity, Berkeley has replaced £300 million of the £600 million gross profit recorded through the income statement in the year. New planning consents were secured at three sites: Bow Triangle, at around 890 homes, and the former Brighton Gasworks site, of circa 480 homes, after an appeal.

The third site, at Hemel Hempstead, moved from the pipeline into landholdings, following receipt of planning consent for 485 homes. Berkeley also secured new masterplan consents at The Green Quarter in Ealing, now 8,000 homes, and an additional 800 homes across the Woodberry Down masterplan in Hackney.

The pipeline now comprises approximately 11,000 homes. In terms of our financing.

At the year-end, the group maintained its borrowing capacity of £1.2 billion, comprising of £400 million of 2031-dated green bonds with a 2.5% coupon, and an £800 million bank facility, consisting of a £260 million drawn green term loan, and a £540 million undrawn revolving credit facility. Taken with our net cash of £363 million, Berkeley had available liquidity of over £1.5 billion.

Since the year-end, we have successfully refinanced the group's bank facility with the same six banks at a lower margin and with £200 million of additional capacity for five years, with two one-year extensions. Thank you very much.

This concludes today's results presentation.