BKG

Berkeley Group Holdings (The) PLC

Consumer Products and Services First-pass screen £3.0bn

460/1000 Overall fit

AI beneficiary 35% 15

Operating leverage 25% 55

Valuation 25% 70

Downside protection 15% 65

First-pass take

Traditional UK homebuilder with zero AI exposure. Currently in cyclical downturn: FY26 profit guidance declining 15%, sales down 30% vs FY23, consumer confidence weak. Well-financed (£337m net cash, £6.7bn land holdings) but fundamentals deteriorating. Operating margin expanded 60bps but dependent on housing cycle. Valuation attractive (P/NAV 1.1x, P/E ~10.5x) but on declining base.

Flags

no-aicyclicaldefensivedeclining-guidancesales-down-30pctconsumer-confidence-weakremediation-liability