The Berkeley Group Holdings plc ("Berkeley" or the "Company") announces that the Annual Report and Accounts for the year ended 30 April 2016, Notice of the 2016 Annual General Meeting and Shareholder Proxy Form (the "Documents") were posted out to shareholders on 3 August 2016.
In accordance with Listing Rule 9.6.1, the Documents have been sent to the National Storage Mechanism and will shortly be available for inspection at http://www.hemscott.com/nsm.do
The Annual Report and Accounts and Notice of Meeting are also available on the Company's website at www.berkeleygroup.co.uk
The Company's Annual General Meeting will be held on 6 September 2016 at 11am, at The Woodlands Park Hotel, Woodlands Lane, Stoke D'Abernon, Cobham, Surrey KT11 3QB.
Bellway moved 6pc higher to £23.58 pence a share while shares in Barratt Homes rose almost 5pc higher on the day to 486.20 pence a share and Taylor Wimpey rose over 4pc to 165.10 pence. Berkley Group trailed the group, climbing over 3.5pc higher to £26.49.
According to a report in industry magazine Property Week the Government is poised to launch a new multi-billion pound fund to back property developers from all parts of the industry, including the private rented sector.
The report claims that sources close to the scheme say that small and medium-sized enterprises will be “in pole position” to receive the loans from an all-encompassing fund which also plans to give financial guarantees to developers worried about the risks of delivering big schemes.
Accendo Markets’ Michael van Dulken said: “The report did indeed help the housebuilders post the best performance on the FTSE 350 on Monday. A positive message from Persimmon management on Tuesday morning added further fuel to a sector rally already founded on data suggesting Brexit was not the disaster for the UK housing market that many thought it might prove.”
Equity analysts at Shore Capital added: “[Persimmon] and the whole sector appear set to be moved more by speculative sentiment than hard events in the market with sentiment most recently looking to drift to the view that Brexit could actually have a very limited impact on the housing market.
“Add to this speculation that a stimulus package for housing is coming in the autumn and it feels likely that despite what we still see as considerable uncertainty and risk… the sector is likely to push ahead,” Shore Capital said.
As interest rates are cut again, investors may need to take a hard look at their portfolios. Only a few months ago, a rate hike had been expected to take place later this year or next. As a result, equity investors have been shifting out of higher-yielding stocks in favour of companies that promise faster earnings growth.
However, with interest rates now likely to stay lower for longer, investors may look at repositioning their portfolios again. Income is harder to come by, and equity investors should once again consider companies with track records of generous dividends, growing/stable earnings, low leverage and generous free cash flow generation.
So do the FTSE 100's 3 highest-yielding stocks fit the bill?
Absolute dividend policy
At the top of the list comes housebuilder Berkeley Group (LSE:BKG), which promised to pay shareholders £2 per share in annual dividends until 2021, giving it a dividend yield of 8.1%. This is an absolute dividend policy, not pegged to future earnings, so investors should have confidence that the payout is at a low risk of being cut.
Housebuilder stocks may have plummeted by over 20% since the Brexit result, but trading updates from the sector show business as usual. Bovis Homes said its sales rate slipped near the end of June but interest from homebuyers has since picked up.
Moreover, Berkeley is in a strong financial position and nearing completion on several development projects. It has net cash of £107m and forward sales of £3.25bn, which should cover dividends over the next five years. This should minimise uncertainty over future house prices and accelerate the realisation of value in its portfolio.
The stock is attractively valued, with Berkeley on target to deliver £2bn in pre-tax profits over the next three years, which implies shares trade at roughly 6.4 times its average three-year forward earnings."
Financial Diary Publication of 2016 Annual Report 3 August 2016 Annual General Meeting and Trading Update 6 September 2016 Interim Dividend Payment Date 15 September 2016 Half Year End 31 October 2016 Interim Results Announcement for the six months ending 31 October 2016 2 December 2016
Berkeley Group Holdings (The) Dividend History Period Ex-date Pay-Date H2 Dividend 11 Aug 2016 15 Sep 2016 H1 Dividend 17 Dec 2015 22 Jan 2016 H2 Dividend 13 Aug 2015 17 Sep 2015 H1 Dividend 18 Dec 2014 23 Jan 2015
Fundamentals and health Market capitalisation £3,452.28m Shares in issue 138.26m PE ratio 8.44 EPS 295.80p EPS growth -5.50% ROCE 26.93% Quick ratio 0.17 Current ratio 1.92 Total dividends per share 200.00p Dividend yield 8.01% Dividend cover 8.07
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