Berkeley Group Regulatory News (BKG)

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 £600 million for the year ending 30 April 2023, with at least £1.05 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 £2.0 billion at 30 April 2023 (30 April 2022: £2.17 billion). Net cash at year-end is currently expected to be around £375 million (30 April 2022: £269 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 £75.2 million, or 69.44 pence per share, will be paid to shareholders on 24 March with the remainder of the £141.4 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 £141.4 million shareholder return will be provided by 30 September 2023 through a combination of dividends and share buy-backs. Of this, £9.5 million has been returned through share buy-backs. The shareholder returns program currently comprises a commitment to return £283 million (£2.62 per share) per annum to September 2025."

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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