Berkeley Group Holdings Plc · LSE:BKG
Berkeley — FY2009 Earnings Presentation
24 slides from Berkeley's earnings presentation, Jun 26, 2009
Slide 1: Full Year Results Presentation
Full Year Results Presentation Year ended 30th April 2009 26th June 2009
Slide 2: Format of Presentation
Format of Presentation Preliminary results for the year ended 30th April 2009 • Managing Director’s Review Tony Pidgley • Review of Results Rob Perrins • Questions Tony Pidgley (Managing Director) Rob Perrins (Finance Director) Tony Carey (Executive Director) Greg Fry (Executive Director)
Slide 3: Tony Pidgley, Managing Director
TONY PIDGLEY MANAGING DIRECTOR
Slide 4: Managing Director’s Review (1) – Royal Arsenal
Managing Director’s Review (1) – Royal Royal Arsenal CABE
Slide 5: Managing Director’s Review (2) – Gunwharf Quays
Managing Director’s Review (2) – Gunwharf Quays
Slide 6: Managing Director’s Review (3)
Managing Director’s Review (3) • The Market • Berkeley’s Strategy • The Berkeley Difference and Board Changes • Outlook
Slide 7: Managing Director’s Review (4) – Woodberry Down
Managing Director’s Review (4) – Woodberry Down
Slide 8: Managing Director’s Review (5) – Kidbrooke
Managing Director’s Review (5) – Kidbrooke
Slide 9: Managing Director’s Review (6)
Managing Director’s Review (6) • The Market • Berkeley’s Strategy • The Berkeley Difference and Board Changes • Outlook
Slide 10: Rob Perrins, Finance Director
ROB PERRINS FINANCE DIRECTOR
Slide 11: Review of Full Year Results
Review of Full Year Results Year ended 30th April 2009 • Berkeley Strategy • Summary of Performance and Financial Position • Shares in issue • Cash Flow • Income Statement • Balance Sheet • Inventories • Creditors • Land Holdings
Slide 12: Berkeley Strategy
Berkeley Strategy 2004 – 2008: Free cash flow returned to shareholders under Scheme of Arrangement • £12 per share to be returned by 31st January 2011 • £9 per share returned 1 year ahead of schedule by January 2008 • Final £3 per share deferred to January 2014, as approved by shareholders at the AG
Slide 13: Summary of Performance
Summary of Performance 12 months to 12 months to Apr 2009 Apr 2008 Change Operating profit £124.8m £206.0m - £81.2m - 39.4% Operating margin 17.8% 20.8% Profit before tax £120.4m £194.3m - £73.9m - 38.0% EPS – Basic 71.3p 114.2p - 42.9p -37.6% Cash generated * £269.5m £156.1m Return on Capital Emplo
Slide 14: Summary of Financial Position
Summary of Financial Position At 30 Apr At 30 Apr 2009 2008 Change Shareholders Funds £801.3m £681.4m + £119.9m + 17.6% Shares in issue 130.2m 120.8m + 9.4m + 7.8% Net Asset Value per Share 615.4p 564.0p + 51.4p + 9.1% Closing Net Cash / (Debt) £284.8m (£4.5m) + £289.3m Land Bank - Plots 30,044 31,3
Slide 15: Shares in Issue
Shares in Issue Shares in issue at 30 April 2008, net of EBT shares (0.1m) 120.8m EBT shares acquired (2.9m) 2004(b) LTIP Element 1A and 1B awards delivered 6.3m Share placing 6.0m Shares in issue at 30 April 2009, net of EBT shares (0.7m) 130.2m Outstanding Management Share Schemes : LTIP 2004(b) 8
Slide 16: Abridged Group Cash Flow
Abridged Group Cash Flow 12 Months to 12 Months to Apr 2009 Apr 2008 Change £m £m £m Profit before tax 120.4 194.3 (73.9) Underlying working capital movements 149.0 (5.5) 154.5 Tax 8.7 (50.9) 59.6 Investing activities (21.8) (7.1) (14.7) Non-cash items and other movements 13.2 25.3 (12.1) 269.5 156.
Slide 17: Homes Completed and Average Selling Price
Homes Completed and Average Selling Price Units ASP Units ASP 2008/09 HY02 533 £388,000 1,501 £395,000 2008/09 HY01 968 £399,000 2007/08 HY02 1,537 £347,000 3,167 £295,000 2007/08 HY01 1,630 £245,000 2006/07 HY02 1,556 £285,000 3,293 £291,000 2006/07 HY01 * 1,737 £296,000 2005/06 HY02 * 1,907 £297,0
Slide 18: Abridged Group Income Statement (1)
Abridged Group Income Statement (1) 12 Months to 12 Months to Apr 2009 Apr 2008 Change £m £m £m House-building 625.6 947.0 - 321.4 - 33.9% Land Sales 46.1 13.1 + 33.0 Commercial 30.5 31.4 - 0.9 Revenue 702.2 991.5 - 289.3 - 29.2% Gross margin 199.8 28.5% 304.4 30.7% - 104.6 - 34.4% Overheads (75.0)
Slide 19: Abridged Group Income Statement (2)
Abridged Group Income Statement (2) 12 Months to 12 Months to Apr 2009 Apr 2008 Change £m £m £m Profit before interest and tax 123.9 203.6 - 79.7 - 39.1% - Bank interest 4.6 0.3 + 4.3 - Facility refinancing fees - (1.8) + 1.8 - Other (8.1) (7.8) - 0.3 Net finance costs (3.5) (9.3) + 5.8 Profit befor
Slide 20: Abridged Group Balance Sheet
Abridged Group Balance Sheet At 30 Apr Underlying At 30 Apr 2009 Movements 2008 £m £m £m Non-current assets - Intangible assets 17.3 (0.6) 17.9 - Investment in JV’s 22.5 20.1 2.4 - Deferred taxation 37.9 (1.2) 39.1 - PPE 3.7 (0.9) 4.6 Inventories 1,114.8 (117.1) 1,231.9 Debtors 51.0 30.2 20.8 Credit
Slide 21: Inventories
Inventories At 30 Apr Underlying At 30 Apr 2009 Movements 2008 £m £m £m Land not under development 124.6 (60.0) 184.6 Work in progress: Land cost 506.1 (96.8) 602.9 630.7 (156.8) 787.5 Work in progress: Build cost 412.4 17.5 394.9 Completed units 71.7 22.2 49.5 Part Exchange units - - - 1,114.8 (117
Slide 22: Creditors
Creditors At 30 Apr Underlying At 30 Apr 2009 Movements 2008 £m £m £m Trade creditors and accruals 233.4 (56.7) 290.1 Deposits and on account receipts 334.8 164.0 170.8 Short-term land creditors 18.6 (46.7) 65.3 Short-term creditors 586.8 60.6 526.2 Current tax liability 86.3 29.9 56.4 Long-term lan
Slide 23: Land Bank
Land Bank At 30 Apr Variance At 30 Apr 2009 2008 Owned 23,572 + 507 23,065 Contracted 6,407 - 1,607 8,014 Agreed 65 - 221 286 Plots * 30,044 - 1,321 31,365 Sales value £7,181m - £2,040m £9,221m Average selling price £239k - £55k £294k Average plot cost £33k - £5k £38k Land cost % 13.9% + 0.8% 13.1%
Slide 24: Questions
Questions Tony Pidgley Managing Director Rob Perrins Finance Director Tony Carey Executive Director Greg Fry Executive Director
Berkeley Group Holdings — FY2009 Earnings Presentation on 6ix