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Berkeley Group Holdings Finals
Posted: June 20th, 2018, 7:12 am
by idpickering
OPERATIONAL HIGHLIGHTS
· 3,536 homes delivered - includes more than 10% of London's new private and affordable homes
· £0.42 billion of subsidies provided to deliver affordable housing and committed to wider community and infrastructure benefits in the period
· Over 12,000 people working across our sites in the year and with 850 apprentices over the last two years
· The Berkeley Foundation won the Better Society Award for Best Partnership with a National Children's Charity for its partnership with The Lord's Taverners and continues its aim to improve the lives of young people and their communities across London and the South of England
EARNINGS
· £934.9 million of pre-tax profit, up 15.1% from £812.4 million
· Pre-tax profit guidance increased by £75 million to at least £1.575 billion for the two years ending 30 April 2019 and by a similar amount to at least £3.375 billion for the five year period which began on 1 May 2016
FINANCIAL POSITION
· Net cash of £687.3 million (April 2017: £285.5 million)
· Net asset value per share up 25.9% to £19.59 (April 2017: £15.56)
· Cash due on forward sales of £2.2 billion (April 2017: £2.7 billion)
· £6.0 billion of estimated future gross margin in the land bank (April 2017: £6.4 billion)
SHAREHOLDER RETURNS
· £9.34 per share already returned and a further £1.00 per share to be returned by 30 September 2018
· Remaining £6.00 (£0.84 billion) on target to be delivered evenly over the next 3 years to September 2021
· 4.0 million shares acquired in the year for £140.4 million and dividends paid of £146.7 million
https://www.investegate.co.uk/berkeley- ... 00049228R/
Re: Berkeley Group Holdings Finals
Posted: June 21st, 2018, 8:25 am
by Davidsb
Hmmmm..... shares down almost 6% on the day.
Still, £38.93 must surely bring them close to value territory, possibly triggering another bout of share buy-backs.
Sadly, however, the fragrant Gemma Parsons will no longer be raiding the BKG petty cash box - she has been replaced as Company Secretary by (quite possibly equally fragrant) Jared Cranney.
No vote of thanks for Gemma from Mr Pidgley in his Chairman's Statement, despite all her help in spending close to £185 million of shareholders' cash since the dividend-eating buy-back scheme was introduced....
;¬)
Re: Berkeley Group Holdings Finals
Posted: June 21st, 2018, 11:18 am
by Dod101
ap8889 wrote:That looks to be a storming set of figures. Good news on all fronts.
I am glad to keep holding.
'These results reflect Berkeley's operating model, which places financial strength and sustainability at its heart, and the sites this enabled Berkeley to acquire in the period from 2010 to 2013. They represent a peak for Berkeley with profitability returning to more normal levels from 2018/19, when profits are anticipated to be around 30% lower. Thereafter Berkeley will target a 20% pre-tax return on equity over the cycle, depending upon the level of cash, which currently includes around £400 million excess due to macro uncertainty. '
If I am allowed to though, read the above from the announcement. The explanation for that according to the report in the Times today is that they have been developing land bought cheaply after the financial crisis and from now on they will be building on much more expensive land. No sign that that will impact the dividend though so maybe the story remains good news for HYPers.
Dod
Re: Berkeley Group Holdings Finals
Posted: June 21st, 2018, 12:42 pm
by miner1000
Yes, I think the share price had somewhat gotten ahead of itself and there has (IMHO) been some profit taking following these figures.
Still very happy to hold these shares for the forseeable future. Any share suggesting a 20% ROI cant be bad for a HYP.
Re: Berkeley Group Holdings Finals
Posted: June 21st, 2018, 1:50 pm
by kempiejon
miner1000 wrote:Still very happy to hold these shares for the forseeable future. Any share suggesting a 20% ROI cant be bad for a HYP.
Except for the reduction in income, 2016 was £2, 2017 £1.37 and forecast for less in 2018. I used to hold BKG but not as part of my HYP though I did bank some of 2016 and 2017s dividends.
Re: Berkeley Group Holdings Finals
Posted: June 21st, 2018, 2:35 pm
by Dod101
I do not know anything much about Berkeley as I have never held their shares but they say they are targeting a Return on Equity of 20%. I would have thought, given that they presumably have borrowings, that the more usual measure would have ben Return on Capital Employed.
Not sure what miner1000means when he refers to ROI.
Dod
Re: Berkeley Group Holdings Finals
Posted: June 21st, 2018, 3:48 pm
by PinkDalek
Dod101 wrote:I do not know anything much about Berkeley as I have never held their shares but they say they are targeting a Return on Equity of 20%. I would have thought, given that they presumably have borrowings, that the more usual measure would have ben Return on Capital Employed.
Not sure what miner1000means when he refers to ROI.
Dod
He might mean Return on Investment, which isn't the same as Berkeley's post (?) 2018/19 target of
a 20% pre-tax return on equity over the cycle, depending upon the level of cash, which currently includes around £400 million excess due to macro uncertainty, but clarification would assist.