22nd Jan 2020 07:54
(Alliance News) - Housebuilder Berkeley Group Holdings PLC said Wednesday it intends to increase its returns to shareholders by GBP455 million over the next two years, to total GBP1 billion over the period.
The FTSE 100 group's existing programme was for returns of GBP125 million to be made by March 31, 2020 and GBP280 million in each of the following financial years up to September 30, 2025.
However, Berkeley's new plan is to return GBP500 million through a B share scheme in March 2020, and a further GBP500 million to shareholders through a C share scheme in March 2021.
The B share scheme for March 2020 will be carried out at a price of GBP4.00 per share, followed by a share consolidation. Meanwhile, the C share scheme for March 2021 will be priced at GBP4.40 each, with a share consolidation taking place afterwards.
Following the GBP1 billion return, Berkeley intends to revert to annual returns of GBP280 million, by making payments of GBP140 million every six months, up to and including September 30, 2025.
Looking ahead, Berkeley said it is targeting a pretax profit of GBP3.3 billion for the six year period ending April 30, 2025, with profit in any one year in a range of GBP500 million to GBP700 million.
By Dayo Laniyan; [email protected]
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