Berkeley Group Holdings Plc · LSE:BKG
Berkeley — The Berkeley Group Holdings — H1 2004/05 Earnings Presentation
26 slides from Berkeley's earnings presentation, Dec 9, 2004
Slide 1: Interim Results Presentation
Interim Results Presentation 9th December 2004 DRAFT
Slide 2: Roger Lewis, Chairman
The Berkeley Group Holdings plc x 4 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 DRAFT
Slide 4: Financial Highlights
Financial Highlights Six months to 31st October 2004 2004 2003 Change Pre tax profits £110.5m £116.3m (5.0%) Earnings per share 65.4p 64.5p 1.4% Net assets £1,203.4m £1,125.7m 6.9% Net asset value per share 1,005p 888p 13.2% Net cash / (debt) £249.2m (£3.4m) DRAFT
Slide 5: Return of £12 per Share
Return of £12 per Share • Strategic review and return of capital announced on 25th June • Focus on – Urban regeneration – Cash generation – £12 per share (£1.45 billion) to be returned to shareholders by January 2011 • Shareholder approval received on 17th September • Court approval of Scheme of Arr
Slide 6: The Return to Shareholders
The Return to Shareholders 2004 B Share £5 Paid on 3rd December 2004 2006 B Share £2 29th December 2006 2008 B Share £2 31st December 2008 2010 B Share £3 31st December 2010 £12 DRAFT
Slide 7: Rob Perrins, Finance Director
ROB PERRINS FINANCE DIRECTOR DRAFT
Slide 8: Review of Results
Review of Results • Cash flow • Profit & loss account • Balance sheet • Scheme of Arrangement • Sales analysis • Land holdings DRAFT
Slide 9: Abridged Group Cash Flow
Abridged Group Cash Flow 6 Months to 6 Months to Oct 2004 Oct 2003 Restated £m £m Operating profit 100.8 109.6 Non cash items 0.4 1.4 101.2 111.0 Tax and dividends (49.2) (47.4) Net interest 1.5 (2.5) 53.5 61.1 Movement in working capital 63.4 83.0 Capex and financial investment 6.5 - Acquisitions a
Slide 10: Cash Due on Forward Sales
Cash Due on Forward Sales At 31 Oct At 31 Oct At 30 Apr 2004 2003 2004 £m £m £m Debtors taken to sales and due on completion 96.6 164.9 156.4 Due on units not yet taken to sales - Exchanged contracts 638.5 555.9 604.0 - Reserved units 142.6 154.6 184.9 Total cash due 877.7 875.4 945.3 DRAFT
Slide 11: Abridged Group Profit and Loss Account
Abridged Group Profit and Loss Account 6 Months to 6 Months to Oct 2004 Oct 2003 Change Restated £m £m £m % Turnover (excluding JVs) 518.7 575.8 (57.1) (10.0) Operating profit 100.8 19.4% 109.6 19.0% (8.8) (8.0) Joint ventures 10.6 10.6 0.0 0.9 Merger expenses (1.5) - (1.5) (100) Net interest - Grou
Slide 12: Shares in Issue
Shares in Issue 2004/05 2003/04 Shares at 1 May 122,062,309 128,214,472 Shares purchased (2,094,261) (1,250,000) Shares issued 830,222 560,762 Shares at 31 October 120,798,270 * 127,525,234 * Shares purchased - (5,743,318) Shares issued 22,373 280,393 Shares at 30 April 120,820,643 * ** 122,062,309
Slide 13: Profit Distribution and ROCE
Profit Distribution and ROCE • Tax rate of 29.5% down from 29.8% • No interim dividend • Return on Capital Employed was 22.5% for the period (2003: 20.7%) • £604.1m capital redemption on 3rd December 2004 DRAFT
Slide 14: Analysis by Activity
Analysis by Activity Turnover Operating Profit 6 Months to 6 Months to 6 Months to 6 Months to Oct 2004 Oct 2003 Oct 2004 Oct 2003 Restated £m £m £m £m Residential - Group 474.2 555.9 96.2 20.3% 104.9 19.0% - JV’s 67.5 56.8 10.4 15.4% 9.9 17.4% 541.7 612.7 106.6 114.8 92.2% 96.4% 95.7% 95.5% Commerc
Slide 15: Trading Account Profile - Percentages of Turnover
Trading Account Profile - Percentages of Turnover 6 Months to 6 Months to 12 Months to Oct 2004 Oct 2003 Apr 2004 Restated Restated % % % Turnover 100.0 100.0 100.0 Land (14.2) (18.1) (18.3) Build (52.8) (49.8) (52.8) Sales & marketing (5.3) (4.9) (4.8) Gross margin 27.7 27.2 24.1 Operating expenses
Slide 16: Abridged Group Balance Sheet
Abridged Group Balance Sheet At 31 Oct At 31 Oct At 30 Apr 2004 2003 2004 Restated Restated £m £m £m Fixed assets and investments 81.3 79.8 81.9 Stocks 1,070.9 1,080.3 1,066.3 Debtors 108.4 184.6 172.3 Investments - 62.6 - Creditors (306.4) (278.2) (323.1) Capital employed 954.2 1,129.1 997.4 Net ca
Slide 17: Scheme of Arrangement – Impact on Equity Shareholders’ Funds
Scheme of Arrangement – Impact on Equity Shareholders’ Funds Share Premium Share and Other Retained Capital Reserves Profit Total £m £m £m £m At 1 May 2004 as restated prior to restructure 30.5 431.1 680.5 1,142.1 Share movements prior to restructure (0.3) 10.1 (25.0) (15.2) Scheme of Arrangement –
Slide 18: Scheme of Arrangement – Impact of return of £5 per share
Scheme of Arrangement – Impact of return of £5 per share The Balance Sheet on 31st October, if the return of £5 per share had been made at that date, would be: £m £m Capital employed 954.2 Share Capital 30.2 Net debt (354.9) Other reserve (961.3) Retained profit 1,529.9 Minority interest 0.5 Net ass
Slide 19: Stocks
Stocks At 31 Oct At 31 Oct At 30 Apr 2004 2003 2004 £m £m £m Land not under development 175.3 123.5 182.7 Work in progress: Land cost 365.5 428.5 403.9 540.8 552.0 586.6 Build cost 438.6 427.1 398.3 Completed units 85.5 89.6 75.0 Part exchanges 6.0 11.6 6.4 1,070.9 1,080.3 1,066.3 DRAFT
Slide 20: Geographical Analysis of Residential Units Sold
Geographical Analysis of Residential Units Sold 6 Months to 6 Months to 12 Months to Oct 2004 Oct 2003 Apr 2004 No. % No. % No. % London 817 45 908 45 1,870 49 South East 385 22 525 26 959 25 North West and Yorkshire 474 26 409 20 648 17 Midlands, West England and Wales 125 7 173 9 328 9 1,801 100 2
Slide 21: Geographical Analysis of Residential Turnover
Geographical Analysis of Residential Turnover 6 Months to 6 Months to 12 Months to Oct 2004 Oct 2003 Apr 2004 £m % ASP £m % ASP £m % ASP £’k £’k £’k London 258.5 54 288 298.0 54 322 632.0 56 321 South East 104.7 22 276 141.7 25 261 279.8 25 281 N.W. and Yorkshire 83.8 18 210 71.4 13 189 134.4 12 202
Slide 22: Land Bank
Land Bank At 31 Oct At 31 Oct At 30 Apr 2004 2003 2004 Owned 22,513 18,884 21,449 Contracted 3,896 5,411 4,315 Agreed 218 1,707 890 Plots 26,627 26,002 26,654 Sales value £6,599m £7,052m £6,789m Average selling price £248k £271k £255k Average plot cost £33k £38k £34k Land cost % 13.2% 14.2% 13.5% Gr
Slide 23: 15 Largest London Sites Released to Market
15 Largest London Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Imperial Wharf, Chelsea 1,883 438 129 4 25 1,287 Woolwich Arsenal 1,258 439 132 11 8 668 St George Wharf, Vauxhall 920 464 112 10 - 334 Chelsea Bridge Wharf 773 407 73 10 24 259 Brookmill Road, Deptford
Slide 24: 15 Largest Non-London Sites Released to Market
15 Largest Non-London Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Redbank, Manchester 1,248 - 355 34 52 807 Clarence Dock, Leeds 1,090 228 300 124 18 420 Gunwharf Resid’l, Portsmouth 962 422 136 55 22 327 The Waterways, Oxford 526 406 47 4 7 62 Knowle Village, Ham
Slide 25: Tony Pidgley, Managing Director
TONY PIDGLEY MANAGING DIRECTOR DRAFT
Slide 26: Questions
Questions Roger Lewis Chairman Tony Pidgley Managing Director Rob Perrins Finance Director DRAFT
The Berkeley Group Holdings — H1 2004/05 Earnings Presentation on 6ix