Berkeley Group Holdings Plc · LSE:BKG
Berkeley — H1 2008 Earnings Presentation
23 slides from Berkeley's earnings presentation, Dec 7, 2007
Slide 1: Interim Results Presentation
Interim Results Presentation 7th December 2007
Slide 2: Rob Perrins, Finance Director
ROB PERRINS FINANCE DIRECTOR
Slide 3: Format of Presentation
Format of Presentation Interim Results for the six months ended 31st October 2007 • Review of Results Rob Perrins • Managing Director’s Review Tony Pidgley • Questions Tony Pidgley (Managing Director) Rob Perrins (Finance Director) Tony Carey (Executive Director) Greg Fry (Executive Director)
Slide 4: Review of Interim Results
Review of Interim Results • Financial Highlights • B Share Payments • Cash Flow • Forward Sales • Income Statement • Balance Sheet • Land Holdings • Largest Sites 4
Slide 5: Financial Highlights (Income Statement)
Financial Highlights (Income Statement) 6 Months to 6 Months to Oct 2007 Oct 2006 Change £m £m £m % Profit before tax 90.6 81.5 + 9.1 + 11.2% Tax (27.2) 30.0% (21.6) 26.5% - 5.6 Profit after tax 63.4 59.9 + 3.5 + 5.8% EPS – Basic 52.6p 49.8p + 2.8p + 5.6% Weighted average shares 120.6m 120.2m 5
Slide 6: Financial Highlights (Balance Sheet)
Financial Highlights (Balance Sheet) Oct 2007 Apr 2007 Change Shareholders’ Funds £850.9m £781.6m + £69.3m + 8.9% Net asset value per share 705p 649p + 56p + 8.6% Net cash £112.7m £81.0m + £31.7m 6
Slide 7: B Share Payments – Original Schedule
B Share Payments – Original Schedule Board Approval Payment 2004 B Share £5 October 2004 3rd December 2004 2006 B Share £2 December 2006 8th January 2007 2008 B Share £2 December 2008 January 2009 2010 B Share £3 December 2010 January 2011 £12 7
Slide 8: B Share Payments – Revised Schedule
B Share Payments – Revised Schedule Board Approval Payment 2004 B Share £5 October 2004 3rd December 2004 2006 B Share £2 December 2006 8th January 2007 2008 B Share £2 December 2007 4th January 2008 2010 B Share 1 £3 TBC TBC £12 1 At a date to be determined, but no later than January 2011 8
Slide 9: Abridged Group Cash Flow
Abridged Group Cash Flow 6 Months to 6 Months to Change Oct 2007 Oct 2006 £m £m £m Profit after tax 63.4 59.9 + 3.5 Working capital movements (32.4) 29.9 - 62.3 Other movements 0.7 11.6 -10.9 Increase in net cash 31.7 101.4 - 69.7 Opening net cash 81.0 220.6 (139.6) Closing net cash 112.7 322.0 (209
Slide 10: Second Half Cash Flows
Second Half Cash Flows • 4th January 2008 - £242 million shareholder payment • Second half working capital - Forecasting an outflow similar to the first half – subject to land opportunities 10
Slide 11: Cash Due on Forward Sales
Cash Due on Forward Sales At 31 Oct At 30 Apr At 31 Oct 2007 2007 2006 (inc St James) £m £m £m Debtors taken to sales, due on completion 45.2 22.2 23.1 Due on units not yet taken to sales - Exchanged contracts 1,323.0 800.6 625.8 - Reserved units 84.7 113.5 131.0 Total cash due 1,452.9 936.3 779.9 1
Slide 12: Residential Units Sold and Average Selling Price
Residential Units Sold and Average Selling Price 6 months to 6 months to Oct 2007 Oct 2006 Units ASP Units ASP Berkeley (exc. St James) 1,173 £246k 1,296 £284k St James (2006: as a JV) 457 £242k 441 £329k Total 1,630 £245k 1,737 £296k 12
Slide 13: Abridged Group Income Statement
Abridged Group Income Statement 6 Months to 6 Months to Oct 2007 Oct 2006 Change Units 1,630 1,296 + 334 + 25.8% £m £m £m Revenue 441.4 381.2 + 60.2 + 15.8% Gross margin 141.4 32.0% 109.8 28.8% + 31.6 + 28.7% Overheads (46.7) 10.6% (39.4) 10.3% - 7.3 - 18.5% Operating profit 94.7 21.5% 70.4 18.5% +
Slide 14: Profit Distribution and ROCE
Profit Distribution and ROCE • Tax rate of 29.5% (on Group profit excluding joint ventures) up from 29.0% for the full year • No dividend • Return on Capital Employed was 25.8% for the period (2006: 26.3%) 14
Slide 15: Abridged Group Balance Sheet
Abridged Group Balance Sheet At 31 Oct Underlying At 30 Apr 2007 Movements 2007 £m £m £m Non-current assets - Goodwill 17.2 - 17.2 - Other intangibles 1.4 (1.2) 2.6 - Deferred taxation 43.5 8.9 34.6 - Other 6.1 2.0 4.1 Inventories 1,099.2 41.2 1,058.0 Debtors 50.5 22.9 27.6 Creditors < 1 year (393.6
Slide 16: Inventories
Inventories At 31 Oct Underlying At 30 Apr 2007 Movements 2007 £m £m £m Land not under development 141.1 34.7 106.4 Work in progress: Land cost 641.6 65.5 576.1 782.7 100.2 682.5 Work in progress: Build cost 418.1 4.9 413.2 Completed units 36.5 5.1 31.4 Part exchanges - (2.3) 2.3 Less: progress paym
Slide 17: Land Bank
Land Bank At 31 Oct At 30 Apr Variance 2007 2007 Owned 22,463 21,209 1,254 Contracted 8,785 8,848 (63) Agreed 59 71 (12) Plots * 31,307 30,128 1,179 Sales value £8,779m £7,709m £1,070m Average selling price £280k £256k £24k Average plot cost £38k £33k £5k Land cost % 13.7% 13.1% 0.6% Gross margin £2
Slide 18: Largest Sites Released to Market
Largest Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Royal Arsenal, Woolwich 3,769 1,173 124 19 46 2,407 Beaufort Park, Hendon 2,800 70 454 21 23 2,232 Imperial Wharf, Chelsea 1,832 861 361 8 6 596 St George Wharf, Vauxhall 1,410 772 132 3 - 503 Holborough Valley,
Slide 19: Tony Pidgley, Managing Director
TONY PIDGLEY MANAGING DIRECTOR
Slide 20: Managing Director's Review
Managing Director’s Review • Introduction • People and Strategy • Results • The Market • Sales • Land • Costs • Land Opportunities • Planning • Scheme of Arrangement • Sustainability • Conclusion 20
Slide 21: Board of Berkeley
Board of Berkeley • Chairman Victoria Mitchell (Nominations Comm. Chairman) • Executive Directors Tony Pidgley (Managing Director) Rob Perrins (Finance Director) Tony Carey (Executive Director) Greg Fry (Executive Director) • Non-Executive Directors David Howell (SID and Audit Comm. Chairman) Alan C
Slide 22: Sustainability – NextGeneration Housing Benchmark
Sustainability – NextGeneration Housing Benchmark 22
Slide 23: Questions
Questions Tony Pidgley Managing Director Rob Perrins Finance Director Tony Carey Executive Director Greg Fry Executive Director 23
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