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15 Mar 2024 07:00
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."
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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
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