The
Berkeley Group Holdings plc
Trading Update
Period from 1 November 2023 to 29 February
2024
15
March 2024
|
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The Berkeley Group Holdings plc
("Berkeley") today announces its Trading Update covering the period
from 1 November 2023 to 29 February 2024.
"Berkeley set out its strategy with
its interim results in December, reflecting both the prevailing
environment and its uniquely long-term business model focussed on
brownfield regeneration. Today, Berkeley reaffirms the
associated guidance which is to deliver at least £1.5 billion of
pre-tax profit across the three years ending 30 April 2026,
including pre-tax profit for the current financial year in line
with consensus of £550 million.
All sales for the current year
ending 30 April 2024 are secured and we also have more than 70% of
sales secured for the next financial year, which is a strong
position.
Sales rates during the period have
been consistent with the first half of Berkeley's financial year,
remaining around a third lower than the comparative year.
Enquiry levels are good, with customers looking for the prevailing
political and economic uncertainty to recede and interest rates to
begin to fall. Cash due on private forward sales, which was
£1.96 billion at the half year (31 October 2023), has continued to
moderate over the second half through a combination of strong
delivery and the prevailing sales rates.
Pricing has been stable across our
sites during the period and above business plan levels, while build
cost inflation is negligible across most trades.
During the period, the term of
Berkeley's £800 million bank facilities was extended by a year to
February 2029. Net cash at the year end is forecast to be
above the half year position of £422 million.
An interim dividend of 33.00 pence
per share (£35 million) was declared on 29 February 2024.
When combined with the £21 million of share buy-backs undertaken
towards the £283 million annual shareholder return, there is
currently £227 million due for return by the end of September
2024. We remain on target to deliver this via the residual
dividend underpin of 66 pence per share per annum (a
further £35 million) or share buy-backs, with any balance to be
returned in September 2024, accompanied by a share consolidation,
unless the balance is deemed de minimis for these
purposes."
END
For further information
please contact:
The Berkeley Group Holdings
plc
Novella Communications
R J
Stearn
Tim Robertson
T: 01932 868 555
T: 020 3151 7008
LEI: 2138009OQSSLVVHQAL78