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Berkeley pulls plug on new investment as half-year profits rise.
UK housebuilder Berkeley Group has decided to not invest in any new developments due to the adverse planning and regulatory environment, and instead focus on "financial strength" following a rise in profits in the first half.
Pre-tax profit in the six months to 31 October increased by 4.6% to £298m, as operating margins held steady at 19.5% and net operating costs declined £10mm to £79.7m.
Pre-tax return on equity fell to 17.7% from 18% the year before, while net cash improved to £422m from £410m.
However, the value of reservations during the period dropped by a third due to the impact of elevated interest rates and ongoing "elevated political and macro volatility", the company said.
We anticipate the sales market will remain subdued before inflecting in its normal cyclical manner once there is greater confidence in a downward trajectory for interest rates and economic stability returns," said chief executive Rob Perrins.
Berkeley said it was extending its earnings guidance by a year, which now covers the three financial years ending April 2026, and is now targeting at least £1.5bn in pre-tax profit in total. That compares with earlier guidance of £1.05bn for the two years to April 2025.
Regarding its investment plans, Berkeley blamed the adverse environment on a number of policy changes, including: changes to the National Planning Policy Framework, the Levelling Up and Regeneration Act, potential requirements for second staircases in tall buildings, building regulations on safety and energy efficiency, and the introduction of the 4% Residential Property Developer Tax.
The company has warned for months that the "increasingly burdensome" regulatory environment was hampering investment into brownfield generation and homebuilding.
"If Berkeley does not recommence deployment of capital into new investment opportunities by 30 April 2027, we anticipate returning around 100% of the profit after tax earned over this period to shareholders, while maintaining financial strength and ensuring we can deliver our cross-cycle 15% pre-tax ROE target."
tps://www.sharecast.com/news/news-and-announcements/berkeley--15546096.html
gla
This is my largest HB holding!
Assuming TW has a small progressive dividend over the next few years, the shares are FREE!
TW will reap the benefits from their 2020 landbank investment in future years.
Trading update 2024... 11th January
DYOR
gla
Phoenix Group Holdings PLC - London-based life insurance provider - Launches tender offer to holders of its GBP428.1 million in 6.625% notes due in 2025, as well as a tender offer for its USD500.0 million in notes due 2031. Says deadline for tenders is Monday next week. The maximum amount of the tender is still to be determined. Phoenix also will issue new sterling fixed rate reset tier 2 notes.
Current stock price: 476.50 pence, down 0.1%
12-month change: down 21%
From the FT. 14 Analysts cover PHNX.
High 743p
Medium 595p
Low 501p
https://markets.ft.com/data/equities/tearsheet/forecasts?s=PHNX:LSE#:~:text=The%2014%20analysts%20offering%2012,the%20last%20price%20of%20477.00.
Dividend 2024...... 54.307p
Adding on the dips
ATB
"Wilders won the democratic vote this week on a Nexit ticket... Wouldn't be a surprise at all to see a 50-50 result if Holland holds a real EU referendum in 2024-25."
NEXIT referendum using imported dominion machine.....sorted back to the trough!
No chance that the Elite globalists will lose their grip......trillions of EUR/USD are at stake! in the rightful hands of democracy!
"It looks like Hunt is considering using October inflation figures of 4.6% instead of Septembers figures."
Agree Dorfan.
However, rest assured the public sector will come out smelling of roses!
Back-door socialism in the puppet house along the road from Big Ben.
Blue/Red...... the cancerous greed takes their lead from the globalist establishment.
Everyone is being played.
ATB
LONDON, Nov 16 (Reuters) - British insurer Aviva (AV.L) on Thursday posted a 13% rise in its general insurance gross written premiums for the first nine months of the year, saying it would continue to return surplus capital to shareholders.
Insurers have dealt with issues such as rising inflation and the higher cost of claims by increasing premiums.
The life and general insurer, whose main markets are Britain, Canada and Ireland, reported premiums of 8 billion pounds ($9.91 billion), up from 7.2 billion a year earlier.
Excellent...well done AV
"Aviva's prospects are very positive. We expect to beat our medium-term financial targets and, in line with previous guidance, grow operating profit by 5-7% this year, despite higher weather-related claims.
"I am extremely confident that Aviva will continue to deliver more for shareholders, and we reiterate our guidance for a total dividend of c.33.4p for 2023, and further regular and sustainable returns of surplus capital."
DGE
CEO & BOD are covering up a black hole!
The world's top spirits maker said last week that sales were set to fall by more than 20% in Latin America and the Caribbean, which makes up around 11% of the company's sales.
Diageo said it had limited visibility into inventory levels among retailers and wholesalers in the region.
Total BS
Diageo buy GFK data which gives every single unit sale from supermarkets to small retail chain outlets.
The data not only gives DGE sales per unit sold but also gives every competitor sale per unit sold.
The data is purchased daily or weekly depending on a companies contract.
Whole Sale distributors including Cash & Carry's give a weekly print out's of inventory to reps.
The rep's have the detailed info, every Friday 8;00pm in their inbox.
DGE are waffling fudge crap............they didn't flag any problems in September update!
gla
At last some traction....way under valued!
Sharecast News) - Insurer Phoenix Group said on Monday that it was lifting its full-year cash generation targets after completing the funds merger of its Standard Life and Phoenix Life businesses into a single entity.
The merger leads to a "material" one-off upgrade to its 2023 cash generation targets to around £1.8bn, from around £1.3bn to £1.4bn. As a result, the company's three-year cash generation target increased from £4.1bn to £4.5bn across 2023-2025.
Chief executive Andy Briggs said: "The completion of the funds merger of the Standard Life and Phoenix Life businesses into Phoenix Life Limited, bringing together 8 million policies, is one of the largest UK insurance Part VII transfers ever completed.
"This reaffirms Phoenix Group's position as the UK's leader at delivering cost and capital synergies and generating value for customers and shareholders. This funds merger enables us to materially upgrade our cash generation targets and creates further balance sheet optionality for the group."
gla