Surging Berkeley shares build up founder Pidgley’s fortune

SHARES in housebuilder Berkeley Group jumped more than 10pc yesterday – adding some £20m to founder Tony Pidgley’s fortune.

The former Barnardo’s boy, who spent his early years living in a disused railway carriage, set up Berkeley in 1976 and still owns 6.37m shares or 4.66pc of the company.

The value of that holding rocketed to £221.7m yesterday after Berkeley reported a 42pc rise in annual profits to £539.7m on the back of a 30.8pc increase in revenues to £2.12bn.

The update sent shares up 323p to close at a record high of 3481p. Berkeley shares have now risen by 40pc since the Conservatives’ dramatic election victory last month – adding around £63m to Pidgley’s fortune in less than six weeks.

The company specialises in expensive London homes. Its shares came under pressure in the weeks leading up to polling day as Labour’s threat of a ‘mansion tax’ spooked investors.

Pidgley, pictured, yesterday welcomed the ‘stability in central government after the General Election’. But he added: ‘Political uncertainty remains with the London mayoral election and referendum on Britain’s relationship with Europe on the horizon.’

David Cameron has pledged to hold an in-out referendum on the UK’s membership of the European Union before the end of 2017 – splitting opinion among British business.

Pidgley said: ‘Berkeley is a supporter of the UK remaining in Europe. There is no doubt, however, that for business to thrive we must not be bound by over-regulation.’

Berkeley announced plans to pay another 90p-a-share dividend in September.