1st Sep 2014 06:54
LONDON (Alliance News) - Berkeley Group Holdings Monday said that since the start of its current financial year, the UK housing market has reverted to normal transactions levels from the high point in 2013, while demand for its homes has continued.
In an interim management statement for the period May 1 to date, the housebuilder focused on London and the South East said forward sales have been maintained at levels previously reported.
In June, the FTSE 250 company, which is made up of four autonomous companies - St George, St James, Berkeley and St Edward - posted pretax profit of GBP380.0 million for the year ended April 30, up from GBP270.7 million a year earlier, as revenue rose 18% to GBP1.62 billion from GBP1.37 billion.
At the time, the company said demand for housing in the UK capital was strong throughout the year, with most of its revenue coming from the sale of new homes in the region.
In terms of its land holdings, the group on Monday said it is targeting further growth in the value of potential gross margin over the course of the current year, driven particularly by unlocking planning and gaining access to the land currently held in the pipeline. Land currently held in the pipeline consisted of over 11,000 plots and had an attributable potential gross margin of some GBP1.5 billion at the last year-end.
In addition, the group said new planning consents at London Dock in Wapping and a site in Chiswick during the period have further enhanced the quality of the land bank held unconditionally. Moreover, the acquisition of two new sites in the period on a conditional basis into the pipeline provides further visibility on the availability of land in the future.
Berkeley said the disposal of a portfolio of the group's ground rent assets for GBP99.8 million in June has contributed to a strong operating cash inflow over the period.
The group currently expects to remain ungeared following the dividend payment of 90 pence per share, or GBP121.7, million on September 26.
"With a strong balance sheet and land bank Berkeley is well positioned to continue to invest in the business and deliver returns to shareholders," Chairman Tony Pidgley said in a statement. "Earnings this year are anticipated to be in line with current market expectations."
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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