8th Dec 2006 07:01
Berkeley Group Holdings (The) PLC08 December 2006 Consolidated Income Statement Six months Six months Year ended ended ended 31 October 31 October 30 April 2006 2005 2006 Unaudited Unaudited Audited Notes £'000 £'000 £'000____________________________________________________________________________________ Continuing operationsRevenue 2(a) 381,153 503,063 917,926Cost of sales (271,311) (379,143) (686,166)Gross profit 109,842 123,920 231,760Net operating expenses (39,438) (34,727) (70,885)Operating profit 2(b) 70,404 89,193 160,875Interest receivable 3 5,797 10,682 19,968Finance costs 3 (794) (16,472) (27,304)Share of post tax results of joint ventures 2(c) 6,052 2,610 11,562Profit on ordinary activities before taxation 81,459 86,013 165,101Taxation 4 (21,560) (24,352) (43,736)Profit on ordinary activities after taxation 59,899 61,661 121,365Discontinued operationsProfit from discontinued operations 5 - 80,782 80,782Profit for the financial period 59,899 142,443 202,147____________________________________________________________________________________ Dividends per Ordinary Share - - -____________________________________________________________________________________ Earnings per Ordinary Share - Basic 6 49.8p 118.7p 168.4p _____________________________________________________________________ | | | - Continuing | | operations 49.8p 51.4p 101.1p | | - Discontinued | | operations - 67.3p 67.3p | |_____________________________________________________________________| - Diluted 6 49.6p 118.0p 167.4p _____________________________________________________________________ | | | - Continuing | | operations 49.6p 51.1p 100.5p | | - Discontinued | | operations - 66.9p 66.9p | |_____________________________________________________________________| _____________________________________________________________________________________ Consolidated Statement of Recognised Income and Expense Six months Six months Year ended ended ended 31 October 31 October 30 April 2006 2005 2006 Unaudited Unaudited Audited £'000 £'000 £'000___________________________________________________________________________________ Profit for the financial period 59,899 142,443 202,147Actuarial (loss) / gain recognised in the pension scheme (673) (529) 1,925Deferred tax on actuarial (loss) / gain recognised in the pension scheme 202 159 (578)___________________________________________________________________________________ Total recognised income for the period 59,428 142,073 203,494___________________________________________________________________________________ Consolidated Balance Sheet At 31 October At 31 October At 30 April 2006 2005 2006 Unaudited Unaudited Audited Notes £'000 £'000 £'000___________________________________________________________________________________ AssetsNon-current assetsProperty, plant and equipment 2,123 2,555 2,252Investments accounted for using equity method 61,546 65,158 68,995Deferred tax assets 25,446 10,739 18,285___________________________________________________________________________________ 89,115 78,452 89,532___________________________________________________________________________________Current assetsInventories 754,788 879,121 763,873Trade and other receivables 26,280 43,696 23,692Cash and cash equivalents 322,047 568,650 220,670___________________________________________________________________________________ 1,103,115 1,491,467 1,008,235___________________________________________________________________________________ LiabilitiesCurrent liabilitiesBorrowings (85) (85) (85)Trade and other payables (231,496) (248,620) (202,267)Current tax liabilities (31,956) (25,674) (32,589)___________________________________________________________________________________ (263,537) (274,379) (234,941)___________________________________________________________________________________ Net current assets 839,578 1,217,088 773,294___________________________________________________________________________________ Total assets less current liabilities 928,693 1,295,540 862,826___________________________________________________________________________________ Non-current liabilitiesBorrowings - (497,302) -Retirement benefit obligation (1,773) (12,515) (10,342)Other non-current liabilities (19,767) (17,358) (15,294)___________________________________________________________________________________ (21,540) (527,175) (25,636)___________________________________________________________________________________ Net assets 907,153 768,365 837,190___________________________________________________________________________________ Shareholders' equityShare capital 24,164 24,164 24,164Share premium 264 264 264Capital redemption reserve 6,091 6,091 6,091Other reserve (961,299) (961,299) (961,299)Retained profit 1,805,405 1,670,122 1,735,475Joint ventures' reserves 32,528 29,023 32,495___________________________________________________________________________________ Total equity 7 907,153 768,365 837,190___________________________________________________________________________________ Consolidated Cash Flow Statement Six months Six months Year ended ended ended 31 October 31 October 30 April 2006 2005 2006 Unaudited Unaudited Audited Notes £'000 £'000 £'000______________________________________________________________________________________ Cash flows from operating activitiesCash generated from operations 103,786 116,533 276,435Dividends from joint ventures 6,016 - 5,396Interest received 5,797 10,682 19,968Interest paid (64) (29,586) (37,384)Tax paid (21,422) (18,893) (35,413)Net cash from operating activities 8 94,113 78,736 229,002______________________________________________________________________________________ Cash flows from investing activitiesPurchase of tangible fixed assets (747) (778) (1,419)Sale of tangible fixed assets 206 356 467Purchase of shares in joint ventures - - (10)Sale of shares in joint ventures 10 - -Disposal of subsidiary undertaking - 250,736 250,736Overdraft balance of subsidiary disposed - 572 572Expenses relating to disposal of subsidiary - (2,765) (2,765)Movements in loans with joint ventures 7,795 (454) (858)Net cash from investing activities 7,264 247,667 246,723______________________________________________________________________________________Cash flows from financing activitiesRepayment of loan stock - (3) (3)Repayment of bank loan - (102,698) (600,000)Net cash used in financing activities - (102,701) (600,003) Net increase in cash and cash equivalents 101,377 223,702 (124,278)Cash and cash equivalents at start of the period 220,670 344,948 344,948______________________________________________________________________________________ Cash and cash equivalents at end of the period 322,047 568,650 220,670______________________________________________________________________________________ 1 Basis of preparation These interim financial statements are prepared on a basis consistent with theaccounting policies adopted by the Group in the preparation of the Group'sannual financial statements for the year ended 30 April 2006, and comply withthe Listing Rules of the Financial Services Authority. As permitted, the Grouphas elected not to apply IAS 34 "Interim Financial Statements" in preparing theinterim financial statements. 2 Analysis by activity Six months Six months Year ended ended ended 31 October 2006 31 October 2005 30 April 2006 Unaudited Unaudited Audited Continuing operations £'000 £'000 £'000 __________________________________________________________________________________ (a) Revenue Residential housebuilding 375,223 495,826 890,539 Commercial property and other activities 5,930 7,237 27,387__________________________________________________________________________________ 381,153 503,063 917,926__________________________________________________________________________________ (b) Operating profit Residential housebuilding 69,191 87,770 156,846 Commercial property and other activities 1,213 1,423 4,029__________________________________________________________________________________ 70,404 89,193 160,875__________________________________________________________________________________ (c) Share of post tax results of joint ventures Residential housebuilding 6,012 2,610 11,469 Commercial property and other activities 40 - 93__________________________________________________________________________________ 6,052 2,610 11,562__________________________________________________________________________________ All revenue and profit disclosed in the table above relate to continuingactivities of the Group and are derived from activities performed in the UnitedKingdom. Included in Group residential housebuilding revenue and operatingprofit are £3,247,000 and £1,631,000 in respect of land sales (2005: £528,000and £467,000). 3 Net finance costs Six months Six months Year ended ended ended 31 October 2006 31 October 2005 30 April 2006 Unaudited Unaudited Audited Continuing operations £'000 £'000 £'000 __________________________________________________________________________________ Interest receivable 5,797 10,682 19,968 Finance costsInterest payable on bank loans and overdrafts (291) (15,657) (26,153)Other finance costs (503) (815) (1,151)__________________________________________________________________________________ (794) (16,472) (27,304)__________________________________________________________________________________ Finance costs - net 5,003 (5,790) (7,336)__________________________________________________________________________________ 4 Taxation Six months Six months Year ended ended ended 31 October 2006 31 October 2005 30 April 2006 Unaudited Unaudited Audited Continuing operations £'000 £'000 £'000 __________________________________________________________________________________ Current taxUK corporation tax payable (21,909) (25,049) (35,158)Adjustments in respect of previous periods 1,120 276 469 (20,789) (24,773) (34,689)Deferred tax (771) 421 (9,047)__________________________________________________________________________________ (21,560) (24,352) (43,736)__________________________________________________________________________________ 5 Profit from discontinued operations The Group completed the sale of The Crosby Group plc ("Crosby") to Lend LeaseCorporation Limited on 8 July 2005 for consideration of £250,736,000 whichincluded the settlement of £151,306,000 of intercompany balances. The profitfrom discontinued operations which was included within the consolidated incomestatement for the six months ended 31 October 2005 and the year ended 30 April2006 was £80,782,000. 6 Earnings per Ordinary Share Earnings per Ordinary Share is based on the profit for the financial period of£59,899,000 (2005: £142,443,000) and the weighted average number of OrdinaryShares in issue during the period of 120,246,800 (2005: 120,007,731). 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 period. The effect of thedilutive potential Ordinary Shares is 463,133 shares (2005: 740,873), whichgives a diluted weighted average number of Ordinary Shares of 120,709,933 (2005:120,748,604). 7 Statement of Changes in Shareholders' Equity Six months Six months Year ended ended ended 31 October 31 October 30 April 2006 2005 2006 Unaudited Unaudited Audited £'000 £'000 £'000__________________________________________________________________________________ Profit for the financial period 59,899 142,443 202,147Actuarial (loss) / gain recognised in the pension scheme (673) (529) 1,925Deferred tax on actuarial loss / (gain) recognised in the pensionscheme 202 159 (578)Credit in respect of employee share schemes 2,805 3,173 6,347Deferred tax in respect of employee share schemes 7,730 2,210 6,440__________________________________________________________________________________ Net movement on shareholders' equity 69,963 147,456 216,281Opening shareholders' equity 837,190 620,909 620,909__________________________________________________________________________________ Closing shareholders' equity 907,153 768,365 837,190__________________________________________________________________________________ 8 Notes to the Consolidated Cash Flow Statement Six months Six months Year ended ended ended 31 October 31 October 30 April 2006 2005 2006 Unaudited Unaudited Audited £'000 £'000 £'000__________________________________________________________________________________ Net cash flows from operatingactivities Continuing operationsProfit for the period 59,899 61,661 121,365Adjustments for:- Taxation 21,560 24,352 43,736- Depreciation 665 799 1,648- Loss/(profit) on sale of property, plant and equipment 5 (100) (114)- Interest income (5,797) (10,682) (19,968)- Finance costs 794 16,472 27,304- Share of results of joint ventures after tax (6,052) (2,610) (11,562)- Non-cash charge in respect of share awards 2,805 3,173 6,347Changes in working capital:- Decrease in inventories 9,085 39,424 154,672- (Increase) / decrease in receivables (2,588) (6,712) 13,292- Increase / (decrease) in payables 32,801 9,802 (41,242)- Decrease in employee benefit obligations (9,391) (304) (301)__________________________________________________________________________________ Cash generated from continuing operating activities 103,786 135,275 295,177Dividends from joint ventures 6,016 - 5,396Interest received 5,797 10,682 19,968Interest paid (64) (29,456) (37,254)Taxation (21,422) (18,893) (35,413)__________________________________________________________________________________ Net cash from continuing operating activities 94,113 97,608 247,874__________________________________________________________________________________ Discontinued operationsProfit for the period - 80,782 80,782Adjustments for:- Taxation - 348 348- Depreciation - 58 58- Finance costs - 130 130- Profit on disposal of subsidiary undertaking - (79,746) (79,746)- Non-cash movement in profit on disposal of subsidiary - 707 707 Changes in working capital:- Increase / (decrease) in inventories - (15,785) (15,785)- Decrease in receivables - 5,925 5,925- (Increase) / decrease in payables - (11,161) (11,161)__________________________________________________________________________________ Cash generated from discontinued operating activities - (18,742) (18,742)Interest paid - (130) (130)__________________________________________________________________________________ Net cash from discontinued operating activities - (18,872) (18,872)__________________________________________________________________________________ Net cash from operating activities 94,113 78,736 229,002__________________________________________________________________________________ Other net cash flows from discontinuedoperations Net cash from investing activities - 248,556 248,556__________________________________________________________________________________ 8 Notes to the Consolidated Cash Flow Statement continued Six months Six months Year ended ended ended 31 October 31 October 30 April 2006 2005 2006 Unaudited Unaudited Audited £'000 £'000 £'000______________________________________________________________________________________ Reconciliation of net cash flow to netcash / (debt)Net increase / (decrease) in cash and cash equivalents 101,377 223,702 (124,278)Cash outflow from decrease in debt - 102,701 600,003Movement in net cash / (debt) in the period 101,377 326,403 475,725Opening net cash / (debt) 220,585 (255,140) (255,140)______________________________________________________________________________________ Closing net cash 321,962 71,263 220,585______________________________________________________________________________________ At 31 October At 31 October At 30 April 2006 2005 2006 Unaudited Unaudited Audited £'000 £'000 £'000______________________________________________________________________________________ Net cashCash and cash equivalents 322,047 568,650 220,670Borrowings (85) (497,387) (85)______________________________________________________________________________________ Net cash 321,962 71,263 220,585______________________________________________________________________________________ 9 Events after the Balance Sheet date: acquisition of subsidiary On 6 November 2006 at an Extraordinary General Meeting, the shareholders of TheBerkeley Group Holdings plc approved the offer by its wholly-owned subsidiary,The Berkeley Group plc, to acquire from RWE Thames Water plc the 50 per cent ofthe ordinary share capital of St James Group Limited that it did not alreadyown. Following completion of the acquisition on 7 November 2006, The BerkeleyGroup plc held one hundred per cent of the ordinary share capital of St JamesGroup Limited. The Berkeley Group plc made payments to RWE Thames Water plc tocomplete the acquisition of £97,500,000. Of this: • £68,600,000 related to the purchase of the ordinary share capital of St James Group Limited owned by RWE Thames Water plc; and • £28,900,000 related to the settlement and refinancing of shareholder loans owed by St James Group Limited to RWE Thames Water plc. Transaction expenses were approximately £1,900,000. In the six months ended 31 October 2006, the Group has accounted for the resultsof St James Group Limited using the equity method of accounting for its fiftyper cent interest in the joint venture. Following completion on 7 November 2006of its acquisition of the 50 per cent interest in St James Group Limited that itdid not already own, the Group will consolidate the results of St James GroupLimited as a wholly owned subsidiary from this date forward. 10 Interim accounts These interim accounts are unaudited but have been reviewed by the auditorswhose review report is set out below. The abridged financial informationrelating to the year ended 30 April 2006 does not constitute statutory accountsfor the purposes of Section 240 of the Companies Act 1985. A copy of thestatutory accounts for the year ended 30 April 2006 under IFRS has been filedwith the Registrar of Companies. The report of the auditors on these financialstatements was unqualified and did not contain a statement under section 237(2)or (3) of the Companies Act 1985. These interim results were approved by the Board on 8 December 2006 and theinterim statement, which is available for inspection at the Company's RegisteredOffice, will be sent by mail to shareholders in December 2006. Independent review report to The Berkeley Group Holdings plc Introduction We have been instructed by the company to review the financial information forthe six months ended 31 October 2006 which comprises the Consolidated IncomeStatement, the Consolidated Statement of Recognised Income and Expense, theConsolidated Balance Sheet, the Consolidated Cash Flow Statement and relatednotes. We have read the other information contained in the interim report andconsidered whether it contains any apparent misstatements or materialinconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The Listing Rulesof the Financial Services Authority require that the accounting policies andpresentation applied to the interim figures should be consistent with thoseapplied in preparing the preceding annual accounts except where any changes, andthe reasons for them, are disclosed. This interim report has been prepared in accordance with the basis set out inNote 1. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of management and applying analyticalprocedures to the financial information and underlying financial data and, basedthereon, assessing whether the disclosed accounting policies have been applied.A review excludes audit procedures such as tests of controls and verification ofassets, liabilities and transactions. It is substantially less in scope than anaudit and therefore provides a lower level of assurance. Accordingly we do notexpress an audit opinion on the financial information. This report, includingthe conclusion, has been prepared for and only for the company for the purposeof the Listing Rules of the Financial Services Authority and for no otherpurpose. We do not, in producing this report, accept or assume responsibilityfor any other purpose or to any other person to whom this report is shown orinto whose hands it may come save where expressly agreed by our prior consent inwriting. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 October 2006. PricewaterhouseCoopers LLPChartered Accountants, London8 December 2006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Berkeley Group