Analysis before buying or selling Berkeley Group shares

Before starting to trade in Berkeley Group shares and deciding when is the right time to buy this asset we offer you the opportunity to learn more about this company through the following important information. In this article we will provide certain useful data and details you should know about the Berkeley Group to assist you in implementing coherent analyses and an effective strategy. You will find information relating to the activities of this company and its major sources of revenue as well as information on its principal competitors and recent partnerships. We will also explain how to achieve a comprehensive and full fundamental analysis of this asset.

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Elements to consider before selling or buying Berkeley Group shares

Analysis N°1

Regarding the activities of the Berkeley Group, it is recommended to monitor the real estate market in the United Kingdom, notably the figures relating to demand.

Analysis N°2

The economic health of this country is also a significant indicator as it determines to a large extent the demand in commercial premises.

Analysis N°3

We would of course attentively follow the major competitors of this group as well as their major announcements, financial results and publications in the same market.

Analysis N°4

New construction sites foreseen by the Berkeley Group are also signs of the growing demand and can be interpreted as buying signals for this asset.

Analysis N°5

Finally, we would of course monitor the profitability of this group that invests heavily and therefore needs to provide a rapid turnaround and profitability in order to attract investors.

General presentation of Berkeley Group

Let us now continue with a comprehensive presentation of this company and its principal activities. By knowing the sources of revenue of the Berkeley Group you will be in a better position to understand how its position may evolve over the coming months and years.

The Berkeley Group is a British company that exercises its activities in the real estate sector. More precisely, the Berkeley Group PLC is one of the leaders in the construction industry and that of real estate in Great Britain.

It can also be beneficial to know how the turnover is achieved by this company from various sectors to better analyse this asset.

  • Private and collective residences represent 94.6% of this company’s turnover.  The Berkeley Group sold 3,698 houses over the 2018/2019 period through the following brands amongst others; Berkeley Homes, St James and St George.
  • The remainder of the turnover, 5.4%, is derived from the sale of advertising space.

The Berkeley Group currently employs 2,664 people and exercises its activities exclusively in the United Kingdom.

The major competitors of Berkeley Group

Let us now examine the sector in which the Berkeley Group exercises its activities. In fact, the real estate market of the United Kingdom includes several major companies that you need to learn about as they are the direct competitors to the Berkeley Group and could therefore influence its share price on the stock markets. Here are details on this company’s major competitors:

Barrat Developments PLC

This British company is one of the leaders in the construction industry in the UK, notably that of individual homes and it is also developing its activity in real estate home management.

Redrow plc

This company mainly exercises its activities in the development of residential housing. It is notably present in the housing construction industry throughout the United Kingdom and Wales. Its principal activity is that of individual home construction.

Taylor Wimpey plc 

The Taylor Wimpey Company is also one of the leaders in construction in the United Kingdom in the residential sector. It mainly builds individual and collective homes.

Countryside Properties PLC

Also known by the name Countryside, this construction and urban renovation company is based in the United Kingdom and exercises its activities mainly in London and the south west of England. The group is also present in the north west of the country.

Bovis Homes Group

This construction company is also one of the top house builders in the United Kingdom as well as developing a promotional real estate activity alongside.

The major partners of Berkeley Group

Here you can learn more about the allies of the Berkeley Group with a precise example of a recent partnership implemented by this group:

CoBuilder

This partnership was signed in 2018 with CoBuilder with the aim of increasing the efficacy of offsite construction through its subsidiary Berkeley Modular, specialised in modular construction. This partnership was the first in the residential sector and the two companies collaborated with the objective of defining the requirements regarding data and documentation for construction materials, components and equipment to be incorporated in the company’s volumetric modular solutions. This data would then be collected and digitalised using Product Data Templates. Berkeley’s subsidiary could then use these as well as the associated materials and equipment to construct a range of volumetric modular home products, designed to respond to advanced specifications and meet the high standards required by the group’s clients.  The Berkeley Group also saw this partnership as a means of working with other companies in the supply chain including CoBuilder who wished to collaborate in the creation of the correct type of data in the right format using data that could be incorporated in an approach designed to use the latter’s technology in its new factory for the creation of products for the volumetric modular housing market.

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Frequently Asked Questions

How much floating capital does the Berkeley Group have?

Knowing the floating capital of a company comes from knowing how much of its capital is traded on the stock markets and this determines the liquidity of its assets and probable volatility. Regarding the Berkeley Group, the number of shares on the market is around 120,246,753 which is equivalent to around 88% of its share capital. The group also holds 10,941,900 shares under auto control which represents 8% of its capital. The remainder is owned by individual shareholders.

Is the Berkeley Group profitable according to the latest financial results?

According to the latest financial results published by the Berkeley Group, the results of the 2019 financial year, the profitability of this group can be expressed as follows. In fact, although the group revenue achieved £2,957.4 million, the actual operating income of this company was £768.4 million and its net income was £627.4 million. We can therefore confirm that this company is profitable.

On which market can the Berkeley Group share price be found?

If you wish to follow the share price of the Berkeley Group directly online in real time then you should know that it is quoted on the LSE market, or London Stock Exchange, this is a financial marketplace in London in the UK. This asset is included in the Main Standard market which is the principal market of this stock exchange.

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