Berkeley Group Holdings Plc · LSE:BKG
Berkeley — The Berkeley Group Holdings — FY2007 Earnings Presentation
25 slides from Berkeley's earnings presentation, Jun 29, 2007
Slide 1: Preliminary Results Presentation
Preliminary Results Presentation 29th June 2007
Slide 2: Roger Lewis, Chairman
The Berkeley Group Holdings plc C ROGER LEWIS CHAIRMAN
Slide 3: Format of Presentation
Format of Presentation • Introduction Roger Lewis • Review of Results Rob Perrins • Managing Director’s Review Tony Pidgley • Questions
Slide 4: Financial Highlights (1) Year ended 30th April 2007
Financial Highlights (1) Year ended 30th April 2007 2007 2006 Change Continuing Group £m £m £m % Profit before tax 188.1 165.1 23.0 +13.9% Tax (52.6) (43.7) Profit after tax 135.5 121.4 14.1 +11.6% Discontinued operations Profit from discontinued operations - 80.8 (80.8) -100% Total profit after tax
Slide 5: Financial Highlights (2) Year ended 30th April 2007
Financial Highlights (2) Year ended 30th April 2007 Apr 2007 Apr 2006 Change Net assets £781.6m £837.2m - 6.6% Net asset value per share 649p 697p - 6.9% Net asset value per share before repayment of 2006 B share 849p 697p +21.8% Net cash £81.0m £220.6m - £139.6m 5
Slide 6: The Return to Shareholders – Original Schedule
The Return to Shareholders – 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 6
Slide 7: The Return to Shareholders – Proposed Schedule
The Return to Shareholders – Proposed 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 ¹ £2 December 2007 3rd January 2008 2010 B Share ² £3 TBC TBC £12 1 Subject to shareholder approval. 2 At a date to be dete
Slide 8: Rob Perrins, Finance Director
ROB PERRINS FINANCE DIRECTOR
Slide 9: Review of Results Year ended 30th April 2007
Review of Results Year ended 30th April 2007 • Cash Flow • Income Statement • Pensions – Defined Benefit Scheme • Acquisition of St James • Balance Sheet • Sales Analysis • Land Holdings 9
Slide 10: Abridged Group Cash Flow
Abridged Group Cash Flow 12 Months to 12 Months to Change Apr 2007 Apr 2006 £m £m £m Profit after tax 135.5 121.4 14.1 Non cash items and other movements 16.8 (1.8) 18.6 152.3 119.6 32.7 Underlying working capital movements 107.8 Land payments by St James at acquisition (93.5) 14.3 126.4 (112.1) Acq
Slide 11: Cash Due on Forward Sales
Cash Due on Forward Sales At 30 Apr Underlying Adjusted St James at At 30 Apr 2007 Movements Opening Acquisition 2006 £m £m £m £m £m Debtors taken to sales, due on completion 22.2 (1.6) 23.8 6.8 17.0 Due on units not yet taken to sales - Exchanged contracts 800.6 157.9 642.7 172.6 470.1 - Reserved u
Slide 12: Abridged Group Income Statement – Continuing Group
Abridged Group Income Statement – Continuing Group 12 Months to 12 Months to Apr 2007 Apr 2006 Change Continuing Group £m £m £m % Revenue 918.4 917.9 0.5 +0.1% Gross margin 268.9 29.3% 231.8 25.2% 37.1 +16.0% Overheads (91.8) 10.0% (70.9) 7.7% (20.9) - 29.5% Operating profit 177.1 19.3% 160.9 17.5%
Slide 13: Pensions – Defined Benefit Scheme
Pensions – Defined Benefit Scheme 2007 £m Enhancement payments as pension 3.5 Enhancement payments as cash 6.0 Cash cost of enhancement payments 9.5 Deficit eliminated (9.3) 0.2 Expenses (fees and national insurance costs) 1.4 Net cost to Berkeley 1.6 At 30 Apr At 30 Apr 2007 2006 £m £m Retirement b
Slide 14: Profit Distribution and ROCE
Profit Distribution and ROCE • Tax rate of 29.0% up from 28.6% (on profit before joint ventures) • No dividend • Return on Capital Employed was 28.1% for the period (2006: 24.0%) 14
Slide 15: Acquisition of St James (1) – Income Statement
Acquisition of St James (1) – Income Statement Berkeley St James Enlarged Group £m £m £m Revenue 788.9 129.5 918.4 Cost of sales (553.4) (96.1) (649.5) Gross margin 235.5 29.8% 33.4 25.8% 268.9 29.3% Overheads (82.1) (9.7) (91.8) Operating profit 153.4 19.4% 23.7 18.3% 177.1 19.3% Interest 7.9 (3.7)
Slide 16: Acquisition of St James (2) - Consideration
Acquisition of St James (2) - Consideration £m Consideration satisfied by: Cash – purchase of ordinary share capital 68.6 Settlement of shareholder loans owed to RWE Thames Water plc 28.9 97.5 Transaction costs 1.8 Total consideration 99.3 Land payment (by St James post completion) 93.5 16
Slide 17: Acquisition of St James (3) – Fair Value Adjustments
Acquisition of St James (3) – Fair Value Adjustments Carrying values Fair value Fair values pre-acquisition adjustments 100% £m 100% £m £m Intangible assets - 3.3 3.3 Deferred tax assets/(liabilities) 4.1 (17.4) (13.3) Inventories 257.8 54.7 312.5 Cash and cash equivalents 34.7 - 34.7 Shareholder lo
Slide 18: Abridged Group Balance Sheet
Abridged Group Balance Sheet At 30 Apr Underlying Adjusted St James at At 30 Apr 2007 Movements Opening Acquisition 2006 £m £m £m £m £m Non-current assets - Goodwill 17.2 - 17.2 17.2 - - Intangibles 2.5 (0.8) 3.3 3.3 - - Investments 1.7 (5.5) 7.2 (61.8) 69.0 - Deferred taxation 34.6 29.6 5.0 (13.3)
Slide 19: Inventories
Inventories At 30 Apr Underlying Adjusted St James at At 30 Apr 2007 Movements Opening Acquisition 2006 £m £m £m £m £m Land not under development 106.4 (103.5) 209.9 71.2 138.7 Work in progress: Land cost 576.1 115.2 460.9 168.6 292.3 682.5 11.7 670.8 239.8 431.0 Build cost 413.2 (2.5) 415.7 76.4 33
Slide 20: Analysis of Residential Units Sold
Analysis of Residential Units Sold 12 Months to 12 Months to Apr 2007 Apr 2006 Units ASP Units ASP Group 2,852 £285k 3,001 £293k Joint ventures 441 £329k 816 £372k 3,293 £291k 3,817 £310k 20
Slide 21: Land Bank
Land Bank At 30 Apr At 30 Apr Variance 2007 2006 Owned 21,209 19,860 1,349 Contracted 8,848 3,264 5,584 Agreed 71 695 (624) Plots 30,128 23,819 6,309 Sales value £7,709m £6,067m £1,642m Average selling price £256k £255k £1k Average plot cost £33k £31k £2k Land cost % 13.1% 12.3% 0.8% Gross margin £2
Slide 22: Largest Sites Released to Market
Largest Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Royal Arsenal (inc The Warren) 3,769 996 211 18 24 2,520 Beaufort Park, Hendon 2,800 - 406 41 11 2,342 Imperial Wharf, Chelsea 1,879 826 276 5 11 761 St George Wharf, Vauxhall 1,403 772 85 28 - 518 Kennet Island,
Slide 23: Tony Pidgley, Managing Director
TONY PIDGLEY MANAGING DIRECTOR
Slide 24: Managing Director's Review
Managing Director’s Review • Introduction • People • Our strategy • Results • The market • Land bank • Planning • St James • Scheme of Arrangement • Conclusion 24
Slide 25: Questions
Questions Roger Lewis Chairman Tony Pidgley Managing Director Rob Perrins Finance Director Tony Carey Executive Director Greg Fry Executive Director 25
The Berkeley Group Holdings — FY2007 Earnings Presentation on 6ix