Berkeley Group Holdings (The) PLC Trading Statement (4971S)

TIDMBKG

RNS Number : 4971S

Berkeley Group Holdings (The) PLC

10 March 2023

 
 The Berkeley Group Holdings plc 
  Trading Update 
  Period from 1 November 2022 to 28 February 
  2023 
  10 March 2023

The Berkeley Group Holdings plc ("Berkeley") today announces its Trading Update covering the period from 1 November 2022 to 28 February 2023.

"Berkeley's current trading is in line with the levels identified in the December interim results, in which sales since the end of September 2022 were around 25% lower than the strong first five months of the financial year. This is a resilient performance in the context of the market volatility since the end of September and reflects the underlying demand for quality homes in London and the South East.

Sales pricing throughout this trading period has remained firm and above business plan levels. Berkeley remains focussed on cost control and maintaining operating margins, with build cost inflation showing early signs of moderating. Whilst the prevailing volatility in the market persists, Berkeley will continue to match supply to demand, adopting a cautious approach to releasing new phases to the market as we focus on the quality of our forward sales.

The current transaction levels and firm pricing support the three-year earnings guidance provided in December. Berkeley therefore reaffirms that it is on target to deliver pre-tax earnings of approximately GBP600 million for the year ending 30 April 2023, with at least GBP1.05 billion in aggregate to be delivered for the following two years. These earnings are underpinned by the Group's cash due on exchanged forward sales which are anticipated to be above GBP2.0 billion at 30 April 2023 (30 April 2022: GBP2.17 billion). Net cash at year-end is currently expected to be around GBP375 million (30 April 2022: GBP269 million), subject to any further share buy-backs in the intervening period.

With the recent changes proposed to the NPPF and the Levelling Up and Regeneration Bill, it is now increasingly clear that brownfield development requires a separate planning category if brownfield sites are to come forward for residential delivery and play the central role they can and should in addressing the housing crisis. Good development on previously used land, protects the greenbelt and contributes hugely to local communities and social and economic infrastructure, building new homes where they are needed most.

On 21 February, the Secretary of State for the Department of Levelling Up, Homes and Communities ("DLUHC") issued its final version of the Self-Remediation Terms and Contract, requiring UK developers to sign up to these terms or face the consequences, which would effectively remove the ability of those companies not signing up to operate. Berkeley has always taken responsibility for life-critical fire safety matters in our buildings and we are working through the associated procedural matters with Government with the objective of being in a position to sign this agreement in line with DLUHC's deadline, which is currently 13 March.

As announced on 23 February 2023, a dividend of GBP75.2 million, or 69.44 pence per share, will be paid to shareholders on 24 March with the remainder of the GBP141.4 million return for the six months ending 31 March 2023 having already been satisfied through share buy-backs.

The Company also announced that the next GBP141.4 million shareholder return will be provided by 30 September 2023 through a combination of dividends and share buy-backs. Of this, GBP9.5 million has been returned through share buy-backs. The shareholder returns program currently comprises a commitment to return GBP283 million (GBP2.62 per share) per annum to September 2025."

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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTGZGGFNLMGFZM

(END) Dow Jones Newswires

March 10, 2023 02:00 ET (07:00 GMT)

Berkeley (LSE:BKG)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024