17th Jun 2015 06:46
LONDON (Alliance News) - Berkeley Group Holdings PLC Wednesday joined UK housebuilding peers in reporting higher profit and revenue for its last financial year as its average selling prices rose strongly and it booked gains on land and asset sales, and it said the clear UK election result had underpinned its outlook.
The company reported a pretax profit of GBP539.7 million for the year to April 30, up from GBP380.0 million a year before, as revenue grew to GBP2.12 billion, from GBP1.62 billion.
Revenue Included GBP99.8 million from the sale of a portfolio of ground rent assets, compared with nothing the year before. So-called operational revenue rose to GBP1.94 billion, from, GBP1.61 billion, boosted by GBP12.3 million from land sales on three sites, and a rise in commercial revenue to GBP71.7 million, from GBP15,6 million, thanks to the sale of 130,000 square feet of office, retail and leisure space.
Berkeley said it sold 3,355 new homes across London and the South of England, down from 3,742 a year before, but the average selling price rose strongly to GBP575,000 from GBP423,000.
It said it currently expects adjusted earnings for the current year to be similar to last year, and it has set a target of some GBP2.0 billion in pretax profit over the three years to the financial year ending in April 2018.
Adjusted earnings per share, which excludes the profit from the sale of the ground rent assets, in the year to end-April were 263.6 pence, up from 221.8 pence a year earlier.
"The current year will see increased investment in construction ahead of this enhanced profit delivery. Any surplus capital generated through this period of investment and delivery, will either be reinvested in the business or used to fund further dividend payments or share buybacks," it said.
Berkeley has pledged to return over GBP1.7 billion to shareholders by 2021. It will pay a further interim dividend of 90 pence a share in September, completing the first milestone payment of 434 pence a share. The next milestones are 433 pence by September 2018 and 433 pence by September 2021.
The company's Chairman Tony Pidgley called on the UK to remain in the EU, but said regulation must also be reduced.
"We welcome the stability in Central Government following the General Election and the commitment to increase housing supply, but political uncertainty remains with the London Mayoral Election and referendum on Britain's relationship with Europe on the horizon. Berkeley is a supporter of the UK remaining in Europe as this is the best way for London to remain a world city. There is no doubt, however, that for business to thrive, we must not be bound by over-regulation, be this from our own government or from Europe," he said.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Berkeley Group