If you’d invested in: Berkeley Group and the AA

Housebuilder Berkeley Group is on track to deliver pre-tax profits of £3bn, while the AA has seen £200m wiped off its value.

By
published
in Advice

If only...

863_berkeley

Berkeley Group (LSE: BKG) is a residential and commercial property developer based in the UK. This month, it reported that it was on track to deliver pre-tax profits of £3bn over the five years ending in April 2021, with profits this year similar to the previous financial year of £812.4m. Meanwhile, the number of new construction starts in London, Berkeley's key market, has decreased 30% compared with 2015 amid Brexit uncertainty.

Be glad you didn't

863_Bad

AA (LSE: AA) provides automobile insurance and breakdown coverage as well as financial services. Last month saw £200m wiped off AA's value as executive chairman Bob Mackenzie was sacked for gross misconduct. It also lowered its full-year forecasts and said performance in the first half of the financial year had been hit. Last week, ongoing plans to merge its insurance business with Hastings were called off.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Alice Gråhns

Alice grew up in Stockholm and studied at the University of the Arts London, where she gained a first-class BA in Journalism. She has written for several publications in Stockholm and London, and joined MoneyWeek in 2017. 

Latest