Berkeley Group Holdings (The) (BKG)

Sector:

Household Goods

Index:

FTSE 100

4,275.00p
   
  • Change Today:
      9.00p
  • 52 Week High: 4,457.00
  • 52 Week Low: 3,165.00
  • Currency: UK Pounds
  • Shares Issued: 108.44m
  • Volume: 223,276
  • Market Cap: £4,635.61m
  • RiskGrade: 234
  • Beta: 0.04

UK house builders rally on cladding hopes

By Abigail Townsend

Date: Monday 14 Mar 2022

LONDON (ShareCast) - (Sharecast News) - Shares in UK house builders rallied on Monday on hopes that the cost of fixing the cladding scandal may be less than initially feared.
Industry and government had been locked in discussions since January about how best to remedy unsafe claddings on buildings between 11m and 18m high.

The government has claimed it will cost around £4bn, a figure disputed by the sector, which is already under pressure from rising costs and weakening consumer confidence. Housing secretary Michael Gove had said developers must agree a plan to fix the issue by the end of March, or face new laws forcing them to act.

But according to the Sunday Telegraph, the Home Builders Federation has hired PwC to conduct its own audit of housing with cladding issues, and its final cost projections are likely to be lower than £1bn. The HBF has also hired City law firm Linklaters to dispute the government's view that listed UK housebuilders should foot the bill, the newspaper noted.

The Telegraph also cited a report from the Levelling Up, Housing and Communities Select Committee, published on Friday, which appeared to agree that listed housebuilders should not be solely responsible for footing the bill.

Instead it argued that a wider group of organisations should share costs, including government. It said governments "share responsibility for the building safety crisis on account of their regulatory failings".

As at 1130 GMT, nearly all UK listed housebuilders were trading higher, with Barratt Developments ahead 3% at 561.2p, Taylor Wimpey up 4% at 139.35p and Persimmon 6% stronger at 2,308.0p. Berkeley, Bellway, Redrow and Vistry were all 3% higher.

Charlie Campbell, analyst at Liberum, said: "This news story is positive for housebuilders shares, as it suggests that resolution will be reached, and also that the total bill will be less that £4bn and...widely shared.

"The UK housebuilders' shares trade a cycle low valuation, as cladding remediation has exacerbated macroeconomic concerns. Removing the uncertainty around cladding, at a cost that is much better than the worst-case scenario, would be helpful.

"However, we believe that renewed performance may wait until investors have a better understanding of the macroeconomic impact of rising costs on consumers' finances and appetite for home buying."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

BKG Market Data

Currency UK Pounds
Share Price 4,275.00p
Change Today 9.00p
% Change 0.21 %
52 Week High 4,457.00
52 Week Low 3,165.00
Volume 223,276
Shares Issued 108.44m
Market Cap £4,635.61m
Beta 0.04
RiskGrade 234

BKG Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
32.59% below the market average32.59% below the market average32.59% below the market average32.59% below the market average32.59% below the market average
69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average
Price Trend
36.02% above the market average36.02% above the market average36.02% above the market average36.02% above the market average36.02% above the market average
55.56% above the sector average55.56% above the sector average55.56% above the sector average55.56% above the sector average55.56% above the sector average
Income
36.08% above the market average36.08% above the market average36.08% above the market average36.08% above the market average36.08% above the market average
4.76% above the sector average4.76% above the sector average4.76% above the sector average4.76% above the sector average4.76% above the sector average
Growth
73.69% below the market average73.69% below the market average73.69% below the market average73.69% below the market average73.69% below the market average
61.54% below the sector average61.54% below the sector average61.54% below the sector average61.54% below the sector average61.54% below the sector average

What The Brokers Say

Strong Buy 4
Buy 5
Neutral 4
Sell 3
Strong Sell 0
Total 16
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

BKG Dividends

  Latest Previous
  Interim 2nd Interim
Ex-Div 18-Aug-22 04-Mar-21
Paid 09-Sep-22 19-Mar-21
Amount 21.25p 9.13p

Trades for 07-Feb-2023

Time Volume / Share Price
16:45 28 @ 4,262.00p
16:45 28 @ 4,262.00p
16:35 154,493 @ 4,275.00p
16:35 360 @ 4,275.00p
16:35 325 @ 4,275.00p

BKG Key Personnel

CEO Robert C G Perrins
Finance Director Richard Stearn

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