27th Sep 2006 07:02
Barratt Developments PLC27 September 2006 27th September 2006 BARRATT DEVELOPMENTS PLC Results for the year ended 30th June 2006 Group Highlights: • 14th consecutive year of growth in volume and underlying pre-tax profit. • Completions increased to 14,601 (2005: 14,351) up 1.8%. • Average selling price £165,800 (2005: £172,200) down 4% as a result of increased Social Housing completions and geographic mix. • Group turnover £2,431.4m (2005: £2,484.7m) down by 2.1%. • Housebuild operating margin increased to 16.7% (2005: 16.0%). • Underlying pre-tax profit * increased from £378.4m to £391.4m, up 3.4%. Pre -tax profit was £391.4m against £394.3m in 2005. • Adjusted basic earnings per share* increased to 115.3p (2005: 115.2p). Basic earnings per share were 115.3p (2005: 119.9p). • Dividend for the year 31.03p (2005: 26.98p) up 15%, 3.7 times covered. • ROACE remains one of the strongest in the sector at 27% (2005: 31%). • Land stocks strengthened to 66,500 plots - 4.5 years supply (2005: 61,000 - 4.3 years). • Net cash of £34.9m (2005: £276.9m net cash) with average gearing of 11%. • Forward sales at 30th June were £845m (2005: £774m) - this has now increased to £1.14bn (2005: £900m), a new record, 27% higher than last year. Together with completions to date, this secures 56% of our full year requirement. * Underlying pre-tax profit and adjusted basic earnings per share exclude the £15.9m pre-tax (£11.1m post-tax) profit on the disposal of freehold ground rents in 2005. Charles Toner, Chairman, commented: "Once again, I am pleased to report another robust performance for the year.Despite competitive conditions, the Group increased completions, improvedmargins, and posted an increase in underlying profits - our 14th consecutiveyear of growth. Our national geographic coverage, wide product range, and ourleadership in brownfield development and social housing have all contributed tothis achievement. We remain well positioned for future growth and our 15%dividend increase reflects our confidence in our future prospects. "These will be the last figures presented by our Chief Executive, David Prettywho retires at Christmas after 27 years with the Group. David has givenoutstanding service to the company at all levels, including 16 years as a MainBoard Director and 4 years as Chief Executive. Under his leadership we haveachieved a strengthened land bank and successive years of record growth involumes and profits. He leaves the business well placed for the future and wewish him a long, happy and well deserved retirement. "Mark Clare will join us to take over as Chief Executive on 2nd October withDavid remaining on the Board for a further three months to ensure an orderlytransition." David Pretty, Group Chief Executive, commented: "Our teams across the country produced yet another good result despite ademanding first half and a competitive market place throughout the year. A sharpfocus on all aspects of operational management offset cost pressures, improvedour trading performance and enabled us to continue to grow and develop thebusiness. "We started the new financial year with a strong forward order book of £845mand, with further good sales progress, forward sales have now increased to£1.14bn, a new record, which is 27% higher than last year. Together withcompletions to date, this secures 56% of our full year requirement.Notwithstanding general concerns about interest rate trends, this record forwardsales position, combined with our strengthened land bank and robust balancesheet, puts us in a healthy position for another year of progress." For further information please contact: Barratt Developments PLC David Pretty, Group Chief Executive On the day: 020 7067 0700Mark Pain, Group Finance Director Thereafter: 0191 227 2000 Weber Shandwick Square MileTerry Garrett/Chris Lynch 020 7067 0700 The financial analysts' presentation slides will be available on the Barrattcorporate website:www.barratt-investor-relations.co.uk from 10.30am today. On 4 January 2006, we announced to the London Stock Exchange that our 2006Annual General meeting would be held on Thursday 16 November 2006. The date ofthe meeting has been changed and it will now be held on Tuesday 28 November2006, commencing at 2.30 pm at the Barber-Surgeons Hall, Monkwell Square, WoodStreet, London, EC2Y 5BL. Details can be found on the Financial Calendar page ofour website at www.barratt-investor-relations.co.uk CHAIRMAN'S STATEMENT I am again pleased to report that, despite a competitive market place, the Groupachieved further increases in completions, improved margins and produced pre-taxprofits of £391.4m. This was our 14th consecutive year of organic growth. The main features of the results for the year ended 30th June 2006, withcomparison to the same period last year and prepared in accordance withInternational Financial Reporting Standards (IFRS), are as follows :- • Underlying pre-tax profit, excluding a £15.9m one-off profit from the disposal of freehold ground rents in 2005, increased by 3.4% from £378.4m to £391.4m. Profit before tax was £391.4m compared to £394.3m in 2005. • Adjusted basic earnings per share, (excluding £11.1m profit after tax from the freehold ground rent disposal in 2005) increased from 115.2p to 115.3p. Basic earnings per share amounted to 115.3p against 119.9p. • A final dividend of 20.69 pence per share will be recommended, payable on 29th November 2006 to shareholders on the register on 3rd November 2006, against 17.99 pence the previous year. This gives a total dividend for the year of 31.03 pence, an increase of 15%, 3.7 times covered. This increase reflects our progress and the Board's confidence in the future performance of the Group. • Net cash at the year end was £34.9m (2005: £276.9m) with average gearing over the year of 11%. This was achieved notwithstanding a £253.3m increase in investment in land and work in progress. • Return on average capital employed continued to be amongst the highest in the industry at 27% (2004: 31%). These encouraging results once again demonstrate the continued success of ourgrowth strategy and the fundamental strengths of the Group. The medium and long term fundamentals of the housing market remain sound,reinforced by a continuing serious shortage of new homes resulting from the veryslow planning system. We remain confident that we can continue to grow thebusiness and create value for our shareholders. Once again, our experienced management team across the Group has shown itsability to succeed in a competitive market place. I would like to thank all ofour people throughout the Group for all their hard work. Our continued successis a result of their teamwork, skills and commitment. There have been a number of Board changes this year. Group Finance Director,Colin Dearlove and Deputy Chief Executive, Harold Walker both retired on 30thJune 2006 after many exemplary years of service with the Group. Mark Pain was appointed an Executive Director on 1st March 2006 and assumedexecutive responsibility as Group Finance Director on 1st July 2006. Inaddition, on 1st May 2006 we appointed Rod MacEachrane, formerly CommercialDirector of the NHBC, a Non-Executive Director. Looking ahead, we are well placed to continue to progress. Our wide geographicspread and extensive product range, together with our urban regeneration andsocial housing expertise, all contributed to another good result for the year.These core strengths, together with our experienced management team, healthyforward sales, strengthened land bank and strong finances leave us wellpositioned for the future. Charles TonerChairman CHIEF EXECUTIVE'S OPERATIONAL REVIEW As a result of a strong team performance we achieved yet another record resultfor the Barratt Group. We increased completions and underlying profits, improvedmargins, generated strong forward sales and strengthened our land bank andbalance sheet. We also received widespread recognition for the quality of our designs andenvironmental performance, as well as the quality of construction across theGroup We remain well placed for further growth this year and in the future. HOUSEBUILDING We completed a total of 14,601 new homes, an increase of 1.8%, at an averageselling price of £165,800, which was 3.7% lower, as a result of the significantincrease in social housing units and changes in the geographic profile of ourcompletions. Total private completions were 5% down, at 11,899 units, with anincreased selling price of £182,800, up 0.4%. Social housing completionsincreased by 53.5% to 2,702 at an average selling price of £90,500, down 11%. Our housebuild turnover was £2,422.0m (2005: £2,472.4) lower by 2%. Our operating margin improved to 16.7% (2005: 16.0%), benefiting from our strictcontrol of build costs, and the impact of the implementation of a wide-rangingefficiency drive in each of our divisions. We also improved the efficiency ofour selling and marketing activities and increased sales outlets. All thishelped mitigate general cost pressures and improve our margin. We continue totake action to further reduce costs throughout our business. The underlying operating profit from our core housing activity increased to£404.6m, up 2%. FORWARD ORDER BOOK We started the new financial year with a strong forward order book of £845m and,with further good sales progress, forward sales have now increased to £1.14bn,27% higher than last year, and a new record. Together with completions to date,this secures 56% of our full year requirement. These record forward sales put usin a healthy position for the coming year. HOUSING MARKET In the first 6 months of our financial year the housing market was challenging.However, in the second half sentiment improved and buyer confidence returned tonormal. Nevertheless, we competed well in all of our operational areasthroughout the year and produced a good sales result. The fundamentals of the housing market remain sound, with good buyer confidence,a benign interest rate environment and good employment levels. These areunderpinned by severely restricted supply of housing across the country causedby constant planning delays. There is an enormous need for new homes and everyyear that this demand remains unsatisfied, pent up demand increases. We are wellplaced to help satisfy this need. On current trends we are confident of another year of progress. CORE STRENGTHS Our core strengths of geographic and product diversity and our urbanregeneration and social housing expertise, continue to support business growthand provide valuable protection from market fluctuations. Geographic And Product Diversity Two of our greatest strengths are our wide geographic spread and extensiveproduct range. These ensure we avoid an over-dependence on any one geographicarea or market sector and enable us to adjust production, sales and land buyingin line with market conditions. Today, we have over 450 sites being built by our33 operating divisions working throughout England, Scotland and Wales. We areable to serve all sectors of the market at prices currently from £85,000 to over£2m. Nevertheless, we have a competitive average selling price of £165,800 whichincreases our appeal to the widest range of buyers. Earlier this year, we successfully launched our new iPad product, targeted atbridging the affordability gap for first-time buyers. An ideal first step on thehome ownership ladder, it provides good living space, a stylish open plankitchen, a separate double bedroom and full bathroom, plus its own privatebalcony - all within 380 sq ft and at an affordable price. The first 30 iPadshave recently been completed in Middlesbrough and were all sold well ahead ofconstruction, at prices from £85,000. 5 further sites for 120 iPads are nowunder construction in Northern England, with 11 further sites for 484 iPads soonto start in various locations across Britain. An additional 48 sites for 1,642iPads are in the pipeline. The Group also recently unveiled an 'Eco-Village' of new homes in Chorley,Lancashire, each packed with the latest in energy efficient and 'green'technologies. The first project of its kind in Britain, it opened to wideacclaim. The 7 traditional family houses will be independently assessed by theUniversity of Manchester in order to establish accurate data on energy costs andbenefits, as well as customer preferences. The findings will help us assess andevaluate a wide range of state-of-the-art technologies in a variety ofpermutations. It will also help us decide which features we can cost-effectivelyinclude in future homes whilst maintaining affordability for our buyers. We are increasing our investment in the Midlands and North of England, where wealready have successful divisions, but where we believe we can furtherprofitably increase market share. This will include the upper market sectorwhere a new range of homes will be introduced during the year. Already, 4prestigious sites for 100 homes have been acquired with the first units due forcompletion in 2007 Other areas of the country have been identified where we can increase coverageand market share. Our new East Anglia division got off to a successful start in the year,completing its first 30 homes. It has a range of sites now underway and shouldcomplete 150 homes this year. It is on track to complete over 400 homes a yearby 2010. In June we completed the acquisition of Squires Bridge Limited, a smallGuildford based developer for a consideration in excess of £25m. The acquisitionis expected to provide over 250 low-rise traditionally built homes from 4development sites in Hampshire and West Sussex. This follows the acquisitionlast year of Acre Developments which provided 375 plots in Scotland. Urban Regeneration and Brownfield Development We continue to lead the regeneration of Britain's cities and urban areas with a30 year track record in brownfield development and urban renewal. 82% (over11,900) of our homes in the year were built on brownfield sites, rising to over95% in London. This is well in excess of the Government's 60% target. Our urban regeneration activities are not solely undertaken in London and theSouth East. Our brownfield activities extend to towns and cities across the restof the country, including; Newcastle, Leeds, Edinburgh, Glasgow, Cardiff,Bristol, Birmingham, Leicester, Brighton and Southampton. Our expertise is vividly illustrated by our recent transformation of the centreof Swiss Cottage in North West London. A ground-breaking public/privatepartnership between Barratt, commercial partner Dawnay Day and Camden Council,our 'Visage' project is a spectacular 16-storey glass apartment building,including both luxury apartments and family apartments for local tenants to bemanaged by Ujima and Acton Housing Associations. A new 76,000 sq ft sports andleisure centre has also been provided for the local community, as well as a newcommunity centre and a doctor's surgery. A notable new example is in South Lanarkshire, West Scotland. Here, Barratt andAMEC Developments are working together, alongside a PFI project being promotedby AMEC, to renew schools. Barratt has secured 9 sites to build almost 1,400 newhomes worth more than £185 million. This is one of the largest programmesundertaken by Barratt in recent years, will start next year, and run on until2011. This will help reinforce our position as a leading housebuilder inScotland. Brownfield development has massive potential right across Britain. With ourunrivalled track record, and our ability and willingness to work with others, weremain very well placed to contribute to, and benefit from, the nation'sincreasing emphasis on urban regeneration. Social Housing Partnerships Our social housing partnerships continue to contribute to the success and growthof our business. We lead the industry in the provision of affordable housing,whether it is for low cost homes for sale, rent, shared ownership or specialneeds. We significantly increased output in the year, building 2,702 homes forour housing association partners, an increase of 54%. Our production hasincreased 216% over the past 5 years and we remain the largest provider ofsocial housing from the private sector. Currently, we have 157 partnerships underway across Britain, with a further 49due to start. In June we became the first housebuilder to receive direct funding from EnglishPartnerships to provide low cost first-time buyer homes for key workers in theSouth East. The grant will be used at our major 'Axiom', Feltham regenerationproject in the London Borough of Hounslow. There is an enormous and growing need for social housing in all its forms andGovernment emphasis on this crucial sector is increasing. With our longexperience in this field and our national network of local divisions, we remainwell placed to contribute and maintain our leadership. LAND AND PLANNING Our land acquisition and planning skills continue to serve us well. Once againwe were able to strengthen the size and quality of our land bank in the year,acquiring 19,661 plots, which was 5,060 plots, 35%, more than we used. Theseincreased the land bank to 59,000 plots and, including 7,500 further plotsagreed, now brings our total land bank to over 66,500 plots. This is the highestever and represents 4.5 years' supply at current volumes. We spent £841m on land acquisition during the year, an increase of £96m over thepreceding year. This reflects our continuing investment in the organic growth ofthe business. Notwithstanding the extremely slow planning system, we achieved an increasedlevel of planning approvals for 18,840 plots. This is 15% more than the previousyear. As a result, we have all the necessary approvals in place to achieve ourrequirements for this year. Furthermore, over 90% of the land required for 2007/08 is already owned or contracted, and over 70% for the following year, 2008/09. SKILLS TRAINING Our apprentice training programme continues to be the largest in the industry,making a real contribution to addressing the national construction skillsshortage. Currently, over 500 apprentices are receiving on-site skills trainingon our developments nationwide. In addition, we have 55 graduates on fast-trackcareer paths. We have significantly increased our investment in general skills training. Overa third of our workforce has now achieved the CSCS (Construction SkillsCertification Scheme) standard. We remain on track to have a fully carded andqualified workforce, including our sub-contractors, by 2010. CUSTOMER CARE We have completed a comprehensive overhaul of our quality and customer servicesprocedures and our independently audited buyer survey responses show continuedimprovement. However, we are targeting further, and lasting, improvement in allparts of our operation. Our new 10-point Customer Charter unequivocally sets out the standards ofquality and service we strive to provide to our customers. We have also rolledout a Customer Care Personal Code of Practice for all our staff, suppliers andsub-contractors, pledging our commitment to the core values of integrity,respect and courtesy upon which the delivery of quality and service depend. Acomprehensive staff training programme for the new Charter and the Code ofPractice has been implemented. AWARDS Our construction teams produced another excellent performance in this years'NHBC "Pride in the Job" campaign securing 53 Quality Awards, up from 51 lastyear, a new record, and more than any other housebuilder. Barratt was also namedby the Sunday Times and Business in the Community as one of the UK's "Top 100companies that count", and recognised by the Government's advisory body, CABE(Commission for Architecture and the Built Environment) as one of only 5 privatesector companies " Whose forward thinking and motivation has led to betterbuildings and public spaces." The Group also did extremely well in the 2006 Daily Express British HousebuilderAwards, scooping 10 top honours, more than any other housebuilder. Barratt Homeslifted Gold, Silver and Bronze awards in a variety of categories, whilstKingsOak secured the Best National Builder in Britain Award, for the second yearin succession. OUTLOOK We have achieved another good result, despite a very competitive market, andhave delivered our 14th consecutive year of growth. We have made a good start tothe new financial year and have a record forward order book in place. The underlying fundamentals of the housing market remain sound, the market hasreturned to normality and we are confident of our ability to compete andcontinue to grow our business. Our national geographic spread and wide productmix, together with our brownfield and social housing expertise are keystrengths. Notwithstanding general concerns about interest rate trends, ourrecord forward sales, strengthened land bank and strong finances, put us in ahealthy position for the coming year and will provide many growth opportunitiesfor the Group in the future. David PrettyGroup Chief Executive 27th September 2006 For further information please contact:Barratt Developments PLC David Pretty, Group Chief Executive On the day: 020 7067 0700Mark Pain, Group Finance Director Thereafter: 0191 227 2000 Weber Shandwick Square MileTerry Garrett/Chris Lynch 020 7067 0700 The financial analysts' presentation slides will be available on the Barrattcorporate website: www.barratt-investor-relations.co.uk from 10.30 am today, together with photographic images of Charles Toner, David Pretty and a selection of Barratt developments. Further copies of the announcement can be obtained from the Company Secretary'soffice at: Barratt Developments PLC Rotterdam House • 116 Quayside Newcastle upon Tyne NE1 3DA Consolidated Income Statement (unaudited)for the year ended 30 June 2006 Year ended Year ended 30 June 30 June 2006 2005 Note £m £m_________________________________________________________________________________Continuing operations Revenue 2,431.4 2,484.7 Cost of sales (1,940.6) (2,008.0)_________________________________________________________________________________Gross profit 490.8 476.7 Net operating expenses (81.2) (86.3) Profit on disposal of ground rents - 15.9_________________________________________________________________________________Profit from operations 409.6 406.3 Finance income 2.0 2.8 Finance costs (20.2) (14.8)_________________________________________________________________________________Profit before tax 391.4 394.3 Tax expense 2 (116.4) (112.2)_________________________________________________________________________________Profit for the year from continuing operations 275.0 282.1 Discontinued operations Profit for the year from discontinued operations 3 - -_________________________________________________________________________________ Profit for the year 275.0 282.1_________________________________________________________________________________ Proposed/paid dividends per ordinary share Interim 4 10.34p 8.99pFinal 4 20.69p 17.99p Earnings per share - continuing basis Basic 5 115.3p 119.9pDiluted 5 113.3p 118.5p Consolidated Statement of Recognised Income and Expense £m £m_________________________________________________________________________________Profit for the year 275.0 282.1Revaluation of available for sale assets (4.5) -Tax on available for sale assets 1.3 -_________________________________________________________________________________Total recognised income for the year 271.8 282.1_________________________________________________________________________________ Consolidated Balance Sheet (unaudited)at 30 June 2006 At 30 June At 30 June 2006 2005 Note £m £m_________________________________________________________________________________AssetsNon-current assets Property, plant and equipment 12.1 11.3 Available for sale assets 31.3 - Trade and other receivables 3.5 2.6 Deferred tax 40.4 37.6_________________________________________________________________________________ 87.3 51.5_________________________________________________________________________________ Current assets Inventories 2,644.4 2,390.6 Trade and other receivables 39.5 31.7 Cash and cash equivalents 43.3 285.1_________________________________________________________________________________ 2,727.2 2,707.4__________________________________________________________________________________________________________________________________________________________________Total assets 2,814.5 2,758.9_________________________________________________________________________________ LiabilitiesCurrent liabilities Loans and borrowings 5.9 4.8 Trade and other payables 988.3 1,182.7 Current tax liabilities 65.7 60.7_________________________________________________________________________________ 1,059.9 1,248.2_________________________________________________________________________________ Non-current liabilities Loans and borrowings 2.5 3.4 Trade and other payables 124.3 92.8 Retirement benefit obligations 87.9 88.9_________________________________________________________________________________ 214.7 185.1__________________________________________________________________________________________________________________________________________________________________Total liabilities 1,274.6 1,433.3__________________________________________________________________________________________________________________________________________________________________Net assets 1,539.9 1,325.6_________________________________________________________________________________ Equity Share capital 24.3 24.2 Share premium 202.3 197.9 Share based payment reserve 7.8 4.7 Retained earnings 1,305.5 1,098.8_________________________________________________________________________________Total equity 6 1,539.9 1,325.6_________________________________________________________________________________ Consolidated Cash Flow Statement (unaudited)for the year ended 30 June 2006 Year ended Year ended 30 June 30 June 2006 2005 £m £m_________________________________________________________________________________Cash flows from operating activities Profit from continuing and discontinued operations 275.0 282.1 Depreciation and non cash items (10.9) 6.5 Taxation 116.4 112.2 Finance income (2.0) (2.8) Finance costs 20.2 14.8Movements in working capital Increase in inventories (253.3) (528.7) Increase in trade and other receivables (8.7) (4.4) (Decrease)/increase in trade and other payables (163.9) 288.6 Increase in available for sale assets (31.3) - Interest paid (10.7) (7.5) Tax paid (112.9) (113.8)_________________________________________________________________________________Net cash (outflow)/inflow from operating activities (182.1) 47.0_________________________________________________________________________________ Cash flows from investing activities Purchases of property, plant and equipment (3.3) (1.9) Proceeds from sale of property, plant and equipment 2.0 2.6 Proceeds from disposal of subsidiary - 83.2 Interest received 2.0 2.8_________________________________________________________________________________Net cash inflow from investing activities 0.7 86.7_________________________________________________________________________________ Cash flows from financing activities Proceeds from issue of share capital 4.5 7.4 Disposal of own shares 2.4 1.7 Dividends paid (67.5) (55.6) Loan drawdowns/(repayments) 0.2 (32.5)_________________________________________________________________________________Net cash outflow from financing activities (60.4) (79.0)__________________________________________________________________________________________________________________________________________________________________Net (decrease)/increase in cash and cash equivalents (241.8) 54.7__________________________________________________________________________________________________________________________________________________________________Cash and cash equivalents at beginning of period 285.1 230.4__________________________________________________________________________________________________________________________________________________________________Cash and cash equivalents at end of period 43.3 285.1_________________________________________________________________________________Reconciliation of net cash flow to net cash_________________________________________________________________________________Net (decrease)/increase in cash and cash equivalents (241.8) 54.7Cash (inflow)/outflow from (increase)/decrease in debt (0.2) 32.5_________________________________________________________________________________Movement in net cash in the period (242.0) 87.2Opening net cash 276.9 189.7_________________________________________________________________________________Closing net cash 34.9 276.9_________________________________________________________________________________ Net cash Cash and cash equivalents 43.3 285.1Loans and borrowings (8.4) (8.2)_________________________________________________________________________________Net cash 34.9 276.9_________________________________________________________________________________ The cashflows from discontinued activities have not been disclosed separately asthey are not considered to be material. Notes to the Financial Statements (unaudited) 1. Accounting Policies_________________________________________________________________________________ The financial statements have been prepared in accordance with applicableInternational Financial Reporting Standards (IFRS) as adopted by the EuropeanUnion (EU) and effective (or available for early adoption) at 30 June 2006.Comparative information for the year ended 30 June 2005 has been restated on anIFRS basis. Details of the IFRS policies applied together with reconciliations ofcomparative figures between UK GAAP and IFRS can be found on the Group's websitewww.barratt-investor-relations.co.uk within our June 2005 IFRS restated resultsissued 23 January 2005. 2. Taxation_________________________________________________________________________________ Year ended Year ended 30 June 30 June 2006 2005 £m £m_________________________________________________________________________________Current taxation (117.9) (117.1) Deferred taxation 1.5 4.9_________________________________________________________________________________ (116.4) (112.2)_________________________________________________________________________________ Corporation tax is calculated at 30% (2005: 30%) of the estimated assessableprofit for the year. 3. Discontinued Operations_________________________________________________________________________________ On 30 August 2004 the group disposed of its small Southern Californiahousebuilding operation at no profit or loss. The results of the discontinuedoperations, which have been included in the consolidated income statement wereas follows: Year ended Year ended 30 June 2006 30 June 2005 £m £m_________________________________________________________________________________Revenue - 28.0_________________________________________________________________________________Operating profit - 0.4Finance costs - (0.4)Taxation - -_________________________________________________________________________________Post tax results from discontinued operations - -_________________________________________________________________________________ During the year ended 30 June 2005 the operation contributed £0.4m to thegroup's net operating cash flows. 4. Dividends_________________________________________________________________________________ Year ended Year ended 30 June 30 June 2006 2005 £m £m_________________________________________________________________________________Prior year final dividend 17.99p per share (2005 14.68p) 42.8 35.3Interim dividend 10.34p per share (2005 8.99p) 24.7 21.1_________________________________________________________________________________ 67.5 56.4_________________________________________________________________________________ Year ended Year ended 30 June 30 June 2006 2005 £m £m_________________________________________________________________________________Proposed final dividend for the year ended 30 June 2006 of 20.69p (2005 17.99p) per share 49.5 42.8_________________________________________________________________________________ The proposed final dividend has not been included as a liability as at 30 June2006. 5. Earnings Per Share_________________________________________________________________________________ Basic earnings per share is calculated by dividing the earnings attributable toordinary shareholders of £275.0m (2005 £282.1m) by the weighted average numberof ordinary shares in issue, excluding those held by the Employee Benefit Trustwhich are treated as cancelled, which were 238.5m (2005 235.2m). For diluted earnings per share, the weighted average number of ordinary sharesin issue is adjusted to assume conversion of all potentially dilutive ordinaryshares from the start of the accounting period, giving a figure of 242.8m (2005238.1m). Year ended Year ended 30 June 30 June 2006 2005_________________________________________________________________________________Basic earnings per share (pence) Continuing activities 115.3 119.9Discontinued activities - -_________________________________________________________________________________Total 115.3 119.9_________________________________________________________________________________ Adjusted basic earnings per share 115.3 115.2_________________________________________________________________________________ Diluted earnings per share (pence) Continuing activities 113.3 118.5Discontinued activities - -_________________________________________________________________________________Total 113.3 118.5_________________________________________________________________________________Adjusted diluted earnings per share 113.3 113.8__________________________________________________________________________________________________________________________________________________________________ The calculation of basic, diluted, adjusted basic and adjusted diluted earningsper share is based on the following data: Year ended Year ended 30 June 30 June 2006 2005 £m £m_________________________________________________________________________________Earnings for basic and diluted earnings per share 275.0 282.1Less profit on disposal of ground rents - (15.9)Add tax effect on above item - 4.8_________________________________________________________________________________Earnings for adjusted basic and adjusted diluted earnings per share 275.0 271.0_________________________________________________________________________________ 6. Reconciliation of Movements in Consolidated Equity_________________________________________________________________________________ Year ended Year ended 30 June 30 June 2006 2005 £m £m_________________________________________________________________________________Profit for the year 275.0 282.1 Dividends on equity shares (67.5) (56.4) Shares issued 4.5 7.4 Proceeds from sale of own shares 2.4 1.7 Share-based payments 3.1 3.5 Revaluation of financial assets (4.5) - Tax on items taken directly to equity 1.3 -_________________________________________________________________________________Net increase in equity 214.3 238.3Opening equity 1,325.6 1,087.3_________________________________________________________________________________Closing equity 1,539.9 1,325.6_________________________________________________________________________________ 7. Statutory Accounts_________________________________________________________________________________ The financial information included in this document for the year ended 30 June2006 is unaudited and has been derived from the draft report and accounts of theGroup for the year ended 30 June 2006. These financial statements do not constitute statutory accounts for the yearended 30 June 2006 or 2005 (as restated for IFRS), which will be filed with theRegistrar of Companies for the year ended 30 June 2006 following the Company'sannual general meeting. The comparative information has been prepared on an IFRS basis. The comparativefigures for the financial year ended 30 June 2005 are not the statutory accountsof the Group for that financial year. Those accounts, which were prepared underUK GAAP, have been reported on by the company's auditors and delivered to theRegistrar of Companies. The report of the auditors was unqualified and did notcontain statements under section 237(2) or (3) of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Barratt Developments