24th Jun 2005 07:01
Berkeley Group Holdings (The) PLC24 June 2005 The Berkeley Group Holdings plcConsolidated Profit and Loss Account (Unaudited) Notes Year ended Year ended 30 April 30 April 2005 2004 Unaudited Audited (Restated*) £'000 £'000---------------------------------- -------- ----------- -----------Turnover including share of jointventures 2 (a) 1,216,193 1,396,133Less: share of joint ventures'turnover (145,876) (123,690) ---------------------------------- -------- ----------- -----------Group turnover 2 (a) 1,070,317 1,272,443---------------------------------- -------- ----------- ------------ Continuing operations 3 824,086 1,048,311- Discontinued operations 3 246,231 224,132---------------------------------- -------- ----------- -----------Cost of sales (781,429) (965,238)---------------------------------- -------- ----------- -----------Gross profit 288,888 307,205Net operating expenses (89,319) (94,404) ---------------------------------- -------- ----------- -----------Operating profit - continuing operations 2 (a) 199,569 212,801---------------------------------- -------- ----------- ------------ Continuing operations 3 162,271 187,293- Discontinued operations 3 37,298 25,508---------------------------------- -------- ----------- -----------Share of operating profit injoint ventures 15,244 21,924---------------------------------- -------- ----------- ------------ Continuing operations 3 14,330 20,778- Discontinued operations 3 914 1,146---------------------------------- -------- ----------- -----------Total operating profit includingshare of joint ventures 2 (b) 214,813 234,725Merger expenses 1 (1,633) - ---------------------------------- -------- ----------- -----------Profit on ordinary activitiesbefore interest and taxation 213,180 234,725Net interest payable 4 (10,289) (4,958)---------------------------------- -------- ----------- ----------- Profit on ordinary activitiesbefore taxation 202,891 229,767Taxation on profit on ordinaryactivities 5 (58,248) (67,747)---------------------------------- -------- ----------- -----------Profit on ordinary activitiesafter taxation 144,643 162,020Dividends - (26,596) ---------------------------------- -------- ----------- -----------Retained profit for the period 144,643 135,424---------------------------------- -------- ----------- -----------Dividends per Ordinary Share - 22.3p---------------------------------- -------- ----------- -----------Earnings per Ordinary Share - basic 6 121.0p 130.4p - diluted 6 120.0p 129.7p---------------------------------- -------- ----------- ----------- * See note 1 The Berkeley Group Holdings plcConsolidated Balance Sheet (Unaudited) At At 30 April 2005 30 April 2004 Unaudited Audited (Restated*) £'000 £'000------------------------------ ----------- -----------Fixed assets Tangible assets 8,883 13,996Joint ventures - Share of gross assets 179,108 216,431- Share of gross liabilities (108,659) (148,524)------------------------------ ----------- ----------- 70,449 67,907------------------------------ ----------- ----------- 79,332 81,903------------------------------ ----------- -----------Current Assets Stocks 1,053,674 1,066,275 Debtors 155,737 172,301Cash at bank and in hand 344,948 245,306------------------------------ ----------- ----------- 1,554,359 1,483,882------------------------------ ----------- -----------Creditors (amounts falling duewithin one year) Borrowings (88) (25,120)Other creditors (328,112) (313,476)------------------------------ ----------- ----------- (328,200) (338,596)------------------------------ ----------- -----------Net current assets 1,226,159 1,145,286------------------------------ ----------- -----------Total assets less currentliabilities 1,305,491 1,227,189------------------------------ ----------- -----------Creditors (amounts falling due after more than one year) Borrowings (600,000) (75,000) Other creditors (36,009) (9,579)------------------------------ ----------- ----------- (636,009) (84,579)------------------------------ ----------- -----------Net assets 669,482 1,142,610------------------------------ ----------- ----------------------------------------- ----------- -----------Capital and reserves Share capital 24,164 30,516 Share premium 264 -Capital redemption reserve 6,091 -Other reserve (961,299) 431,055Retained profit 1,565,097 652,725 Joint ventures' reserves 34,665 27,814------------------------------ ----------- -----------Equity shareholders' funds 668,982 1,142,110Equity minority interest 500 500------------------------------ ----------- ----------- 669,482 1,142,610------------------------------ ----------- -----------Net assets per Ordinary Share 558p 944p------------------------------ ----------- ----------- * See note 1 The Berkeley Group Holdings plcConsolidated Cash Flow Statement (Unaudited) Year ended Year ended 30 April 2005 30 April 2004 Unaudited Audited (Restated*) £'000 £'000--------------------------------------- ----------- -----------Net cash inflow from continuingoperating activities 289,185 435,959Dividends from joint ventures 1,564 9,865Returns on investments and servicing offinance 3,568 (1,704)Taxation (59,754) (62,594)Capital expenditure and financialinvestment 8,403 (25,642)Acquisitions and disposals (1,633) 6,781Equity dividends paid (19,676) (25,414)--------------------------------------- ----------- -----------Net cash inflow before financing 221,657 337,251Financing (122,015) (149,048)--------------------------------------- ----------- -----------Increase in cash in the period 99,642 188,203--------------------------------------- ----------- -----------Reconciliation of net cash flow tomovement in net (debt)/cash --------------------------------------- ----------- -----------Increase in cash in the period 99,642 188,203Cash (inflow)/outflow from (increase)/decrease in debt (499,968) 100,033--------------------------------------- ----------- -----------Movement in net (debt)/cash in the period (400,326) 288,236Opening net (debt)/cash 145,186 (143,050)--------------------------------------- ----------- -----------Closing net (debt)/cash (255,140) 145,186--------------------------------------- ----------- -------------------------------------------------- ----------- ----------- Reconciliation of operating profit to Year ended Year endedoperating cash flows 30 April 2005 30 April 2004 Unaudited Audited (Restated*) £'000 £'000--------------------------------------- ----------- -----------Operating profit 199,569 212,801Depreciation 2,581 3,085Profit on sale of tangible fixed assets (1,379) (618)Profit on sale of fixed asset investments - (144)Stocks - decrease 12,601 84,828 Debtors - decrease 21,630 77,131 Investments - decrease - 62,047 Creditors - increase/(decrease) 49,971 (4,762) Non-cash charge in respect of share awards 4,212 1,591--------------------------------------- ----------- ----------- Net cash inflow from continuingoperating activities 289,185 435,959--------------------------------------- ----------- ----------- * See note 1 The Berkeley Group Holdings plcConsolidated Statement of Total Recognised Gains and Losses Year ended Year ended 30 April 2005 30 April 2004 Unudited Audited (Restated*) £'000 £'000--------------------------------------- ----------- -----------Profit for the financial period 144,643 162,020Total recognised gains for the period 144,643 162,020Prior year adjustment (see note 1) (338)--------------------------------------- ----------- -----------Total gains recognised since lastannual report 144,305--------------------------------------- ----------- ----------- * See note 1 Reconciliation of Movements in Shareholders' Funds Year ended Year ended 30 April 2005 30 April 2004 Unudited Audited (Restated*) £'000 £'000--------------------------------------- ----------- -----------Profit for the period 144,643 162,020Dividends - (26,596)--------------------------------------- ----------- -----------Retained earnings 144,643 135,424Share buy-backs (20,656) (52,363)New shares issued prior to the capitalrestructure 9,848 7,217New units issued after the capitalrestructure 269 -Issue/redemption expenses (2,841) -Redemption of shares (604,153) -Contribution on exercise of share options (4,450) (2,240)Credit in respect of employee shareschemes 4,212 1,591Consideration paid for purchase ofown shares held in Employee ShareOwnership Trusts - (2,129)--------------------------------------- ----------- -----------Net additions to equity shareholders'funds (473,128) 87,500--------------------------------------- ----------- -----------Opening equity shareholders' funds aspreviously stated 1,144,532 1,056,156Prior period adjustment (see note 1) (2,422) (1,546)--------------------------------------- ----------- -----------Opening equity shareholders' funds asrestated 1,142,110 1,054,610--------------------------------------- ----------- -----------Closing equity shareholders' funds 668,982 1,142,110--------------------------------------- ----------- ----------- * See note 1 The Berkeley Group Holdings plc Notes 1. Basis of preparation The unaudited financial information for the year ended 30 April 2005 summarisedabove and below does not constitute statutory accounts within the meaning ofsection 240 of the Companies Act 1985. This information was approved by theBoard on 23 June 2005, and has been extracted from the Group's statutoryaccounts which have not yet been signed, but upon which the auditors areexpected to give an unqualified opinion. The abridged financial informationrelating to the year ended 30 April 2004 is an extract from the statutoryaccounts, which have been delivered to the Registrar of Companies, and whichhave been restated as described below. The report of the auditors on thesefinancial statements was unqualified and did not contain a statement undersection 237(2) or (3) of the Companies Act 1985. From 1 May 2004, the Group has adopted UITF Abstracts 17 (revised 2003) and 38in respect of employee share schemes and Employee Share Ownership Trusts. Thecost of awards made under the share schemes is now calculated with reference tothe fair value of the award at the date of grant rather than the cost of sharespurchased by the Group to satisfy the award. In addition, the cost of sharesheld by the Group's Employee Share Ownership Trusts, previously shown as anasset in investments in the balance sheet, is now deducted from shareholders'funds. The comparative figures have been restated to reflect the impact of thesechanges. Retained profit for the year ended 30 April 2004, as published lastyear, has been reduced by £338,000 to reflect the impact of the revision to UITF17. Shareholders' funds at 1 May 2003 and 1 May 2004 have been reduced by£1,546,000 and £2,422,000 respectively, to reflect the impact of the revision toUITF 17 and the deduction of the cost of the shares from shareholders' funds.The Group cash flow statement has also been restated to show the relevant cashflows in financing activities rather than capital expenditure and financialinvestment. Scheme of Arrangement and capital restructure In June 2004, The Berkeley Group plc announced proposals for the return of £12per existing ordinary share to shareholders by way of a capital reorganisation,incorporating a Scheme of Arrangement. Following approval by shareholders in September 2004 and ratification by theCourt on 25 October 2004, shareholders, on 26 October 2004, exchanged eachexisting ordinary share in The Berkeley Group plc for a newly issued Unit (eachUnit comprising one new ordinary share of a nominal value of £0.05, one 2004 Bpreference share of a nominal value of £5.00, one 2006 B preference share of anominal value of £2.00, one 2008 B preference share of a nominal value of £1.60and one 2010 B preference share of a nominal value of £3.21) in The BerkeleyGroup Holdings plc ("the Company"), thereby introducing the Company as the newparent holding company of The Berkeley Group plc and its subsidiaries. TheCompany issued the shares comprised in 120,798,270 Units credited as fully paidat the aggregate nominal value of £11.86, which was the closing price of anordinary share in The Berkeley Group plc on 25 October 2004. The Directors intend to return the £12 per unit to shareholders by January 2011with cash payments in respect of the B shares, subject to having sufficientfunding and distributable reserves, as follows: Class of B share Expected Record Date Proceeds per Share--------------------------------------------------------------------------2004 B Share Redeemed £52006 B Share 29 December 2006 £22008 B Share 31 December 2008 £22010 B Share 31 December 2010 £3--------------------------------------------------------------------------Total £12-------------------------------------------------------------------------- The return to shareholders has been facilitated by the Court approved reductionof capital that became effective on 28 October 2004. Through this reduction ofcapital, the nominal amount of each Unit was reduced to £0.25 (each Unitcomprising one new ordinary share of a nominal value of £0.05, one 2004 Bpreference share of a nominal value of £0.05, one 2006 B preference share of anominal value of £0.05, one 2008 B preference share of a nominal value of £0.05and one 2010 B preference share of a nominal value of £0.05). This reductioncreated distributable reserves of £1,402 million to facilitate the return of £12per Unit. The Berkeley Group Holdings plc Notes (continued) 1 Basis of preparation (continued) With implementation of the Scheme of Arrangement under section 425 of theCompanies Act, the Company acquired 100% of the issued share capital of TheBerkeley Group plc. In the opinion of the Directors, the Scheme of Arrangementis a group reconstruction rather than an acquisition, since the shareholders inthe Company are the same as the former shareholders in The Berkeley Group plcand the rights of each shareholder, relative to the others, are unchanged and nominority interest in the net assets of the group is altered. Accordingly, the Directors have adopted merger rather than acquisitionaccounting principles in drawing up these accounts, having regard to theoverriding requirement of section 227(6) of the Companies Act 1985 for theaccounts to give a true and fair view of the Group's results and financialposition. The Directors consider that it is not practicable to quantify theeffect of this departure from the Companies Act 1985 requirements. The accounts are presented as if the Scheme of Arrangement had been effective on1 May 2004, except for the effect of the capital restructure and subsequentreduction of capital which was sanctioned by the Court on 25 October 2004. Theconsolidated profit and loss account combines the results of The Berkeley Groupplc for the year ended 30 April 2005 with those of the Company for the periodsince its incorporation to 30 April 2005. The comparative figures relate to TheBerkeley Group plc as restated for the effect of the Scheme of Arrangement. Year ended Year ended 30 April 2005 30 April 2004 Unudited Audited (Restated*) £'000 £'000--------------------------------------- ----------- -----------2. Analysis by Activitya) Turnover--------------------------------------- ----------- -----------Residential housebuilding Group 1,002,769 1,130,162 Joint ventures 144,669 120,977--------------------------------------- ----------- ----------- 1,147,438 1,251,139--------------------------------------- ----------- -----------Commercial property and other activities Group 67,548 142,281 Joint ventures 1,207 2,713--------------------------------------- ----------- ----------- 68,755 144,994--------------------------------------- ----------- ----------- 1,216,193 1,396,133--------------------------------------- ----------- -----------b) Operating profit Residential housebuildingGroup 190,487 198,586Joint ventures 14,877 19,836--------------------------------------- ----------- ----------- 205,364 218,422--------------------------------------- ----------- -----------Commercial property and otheractivities Group 9,082 14,215 Joint ventures 367 2,088--------------------------------------- ----------- ----------- 9,449 16,303--------------------------------------- ----------- ----------- 214,813 234,725--------------------------------------- ----------- ----------- All turnover and profit relate to continuing activities of the Group and arederived from activities performed in the United Kingdom. Included in Groupresidential housebuilding turnover and operating margin is £16,139,000 and£6,600,000 in respect of land sales (2004: £11,426,000 and £2,382,000). The Berkeley Group Holdings plc Notes (continued) 3. Discontinued operations Since the year end, the Group has announced the sale of the Crosby Division toLend Lease for consideration of £235,700,000 and the repayment of workingcapital of £15,000,000. Financial Reporting Standard No. 3 (FRS 3) requires thatthe Crosby Division be treated as discontinued operations for the year ended 30April 2005, since the sale completes before the earlier of three months afterthe year end and the date of approval of the audited financial statements. Theadditional information required in respect of discontinued operations in thefinancial statements for the year ended 30 April 2005 is as follows: Continuing Discontinued Operations Operations Total Unaudited Unaudited Unaudited £'000 £'000 £'000--------------------------- ---------- ------------ -----------Year ended 30 April 2005Turnover includingshare of joint ventures 964,464 251,729 1,216,193Less: share of jointventures' turnover (140,378) (5,498) (145,876)--------------------------- ---------- ------------ -----------Group turnover 824,086 246,231 1,070,317Cost of sales (586,254) (195,175) (781,429)--------------------------- ---------- ------------ -----------Gross margin 237,832 51,056 288,888Net operating expenses (75,561) (13,758) (89,319)--------------------------- ---------- ------------ -----------Operating profit 162,271 37,298 199,569Share of operating profit of joint ventures 14,330 914 15,244--------------------------- ---------- ------------ -----------Total operating profit including share of jointventures 176,601 38,212 214,813--------------------------- ---------- ------------ -----------Year ended 30 April 2004Turnover including share of joint ventures 1,166,383 229,750 1,396,133Less: share of jointventures' turnover (118,072) (5,618) (123,690)--------------------------- ---------- ------------ -----------Group turnover 1,048,311 224,132 1,272,443Cost of sales (785,254) (179,984) (965,238)--------------------------- ---------- ------------ -----------Gross margin 263,057 44,148 307,205Net operating expenses (75,764) (18,640) (94,404)--------------------------- ---------- ------------ -----------Operating profit 187,293 25,508 212,801Share of operating profit of joint ventures 20,778 1,146 21,924--------------------------- ---------- ------------ -----------Total operating profit including share of jointventures 208,071 26,654 234,725--------------------------- ---------- ------------ ----------- Year ended Year ended 30 April 2005 30 April 2004 Unudited Audited £'000 £'000--------------------------------------- ----------- -----------4. Net interest payableInterest receivable 11,413 4,770Interest payable on bank loans and overdrafts (18,376) (6,207)Interest payable - share of joint ventures (3,326) (3,521)--------------------------------------- ----------- ----------- (10,289) (4,958)--------------------------------------- ----------- ----------- Notes (continued) Year ended Year ended 30 April 2005 30 April 2004 Unudited Audited (Restated*) £'000 £'000--------------------------------------- ----------- -----------5. TaxationCurrent tax UK corporation tax payable (57,278) (65,040) Share of joint ventures' tax (3,502) (5,184) Adjustments in respect of previous periods 427 481--------------------------------------- ----------- ----------- (60,353) (69,743)Deferred tax 2,105 1,996--------------------------------------- ----------- ----------- (58,248) (67,747)--------------------------------------- ----------- ----------- * See note 1 6. Earnings per Ordinary Share Earnings per Ordinary Share is based on the profit after taxation of£144,643,000 (2004 restated £162,020,000) and the weighted average number ofOrdinary Shares in issue during the year of 119,558,439 (2004: 124,261,151). Fordiluted earnings per Ordinary Share, the weighted average number of OrdinaryShares in issue is adjusted to assume the conversion of all dilutive potentialOrdinary Shares. The dilutive potential Ordinary Shares relate to shares grantedunder employee share schemes where the exercise price is less than the averagemarket price of the Ordinary Shares during the year. The effect of the dilutivepotential Ordinary Shares is 990,459 shares (2004: 613,585), which gives adiluted weighted average number of Ordinary Shares of 120,548,898 (2004:124,874,736). 7. The statutory accounts for the year ended 30 April 2005 will be sent by mailto shareholders in July 2005 and filed in due course with the Registrar ofCompanies. Copies will be available for inspection at the Company's RegisteredOffice, Berkeley House, 19 Portsmouth Road, Cobham, Surrey KT11 1JG. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Berkeley Group