Berkeley Group Holdings Plc · LSE:BKG
Berkeley — The Berkeley Group Holdings — H1 2006 Earnings Presentation
28 slides from Berkeley's earnings presentation, Dec 9, 2005
Slide 1: Interim Results Presentation
Interim Results Presentation 9th December 2005
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) Six months to 31st October 2005
Financial Highlights (1) Six months to 31st October 2005 6 Months to 6 Months to Oct 2005 Oct 2004 Change Continuing Group £m £m £m % Profit before tax 86.0 99.2 (13.2) - 13.3% Tax (24.4) (27.1) 2.7 Profit after tax 61.6 72.1 (10.5) + 14.6% Discontinued operations Profit from discontinued operations
Slide 5: Financial Highlights (2) Six months to 31st October 2005
Financial Highlights (2) Six months to 31st October 2005 Oct 2005 Apr 2005 Change Net assets £768.4m £621.4m + 23.6% Net asset value per share 640p 518p + 23.6% Net cash / (debt) £71.3m (£255.1m) + £326.4m
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
Slide 7: Rob Perrins, Finance Director
ROB PERRINS FINANCE DIRECTOR
Slide 8: Review of Results
Review of Results • Impact of IFRS • Cash flow • Profit & loss account • Balance sheet • Sales analysis • Land holdings
Slide 9: IFRS – Reconciliation of Equity
IFRS – Reconciliation of Equity 30 April 1 May 2005 2004 £m £m Net assets / NAVPS (UK GAAP) 669.5 558p 1,142.6 944p IAS 18: Revenue recognition – Group (33.3) (25.4) – JVs (2.0) (3.9) IAS 2: Discounting land creditors – Group (1.9) (1.2) – JVs (3.9) (4.5) IAS 19: Employee benefits (7.0) (5.0) IAS 10
Slide 10: IFRS - Abridged Group Income Statement
IFRS - Abridged Group Income Statement 6 Months to 6 Months to Oct 2004 Oct 2004 Change IFRS UK GAAP £m £m £m % Revenue 419.5 518.7 (99.2) (19.1) Operating profit 90.2 21.5% 100.8 19.4% (10.6) (10.5) Joint ventures 7.1 10.6 (3.5) (33.0) Net finance costs 1.9 0.6 1.3 316.7 Merger expenses – (1.5) 1.5
Slide 11: IFRS – Roll forward of Equity under IFRS
IFRS – Roll forward of Equity under IFRS 12 Months to 6 Months to Apr 2005 Oct 2004 IFRS (£m) IFRS (£m) Opening equity at 1 May 2004 / NAVPS 1,122.2 928p 1,122.2 928p Profit for the period 139.0 78.5 2003/04 Dividend (19.6) (19.6) 1,241.1 1,180.6 Share buy-backs (20.7) (20.7) Share options shares is
Slide 12: Abridged Group Cash Flow
Abridged Group Cash Flow 6 Months to 6 Months to Oct 2005 Oct 2004 £m £m Continuing operations Operating profit 89.2 90.2 Non-cash items 4.0 1.6 Tax and interest (37.8) (28.0) Other movements (1.0) (35.1) 54.4 28.7 Working capital movements 42.3 41.5 96.7 70.2 Discontinued operations Operating profi
Slide 13: Cash Due on Forward Sales
Cash Due on Forward Sales At 31 Oct At 31 Oct At 30 Apr 2005 2004 2005 £m £m £m Debtors taken to sales and due on completion 33.4 14.9 31.1 Due on units not yet taken to sales - Exchanged contracts 478.5 457.3 579.0 - Reserved units 110.7 102.7 76.9 Total cash due (excluding Crosby) 622.6 574.9 687.
Slide 14: Abridged Group Income Statement – Continuing Group
Abridged Group Income Statement – Continuing Group 6 Months to 6 Months to Oct 2005 Oct 2004 Change Continuing Group £m £m £m % Revenue 503.1 419.5 83.6 19.9% Operating profit 89.2 17.7% 90.2 21.5% (1.0) (1.1%) Joint ventures (after int. & tax) 2.6 7.1 (4.5) Net finance costs - Treasury (5.0) 2.5 (7
Slide 15: Abridged Group Income Statement – Including Discontinued
Abridged Group Income Statement – Including Discontinued 6 Months to 6 Months to Oct 2005 Oct 2004 Change Continuing Group £m £m £m % Profit before tax 86.0 99.2 (13.2) (13.3%) Tax (24.4) (27.1) 2.7 Profit after tax 61.6 72.1 (10.5) (14.6%) Discontinued operations Profit after tax 1.0 6.4 (5.4) Prof
Slide 16: Profit on Sale of Crosby
Profit on Sale of Crosby £m Net assets disposed Non-current assets 8.5 Current assets 202.5 Creditors (falling due within one year) (34.4) Creditors (falling due after one year) (7.8) Minority interest (0.5) 168.3 Expenses relating to the disposal 2.8 Curtailment gain (0.2) Profit on sale 79.8 Consi
Slide 17: Profit Distribution and ROCE
Profit Distribution and ROCE • Tax rate of 29.2% down from 29.6% (on profit before JV tax) • No dividend • Return on Capital Employed (excluding the profit on disposal of Crosby) was 24.0% for the year (2004: 23.3%) • On target to make £2 per share repayment (£241.6m) in December 2006
Slide 18: Trading Account Profile - Percentages of Turnover
Trading Account Profile - Percentages of Turnover 6 Months to 6 Months to 12 Months Oct 2005 Oct 2004 Apr 2005 % % % Revenue 100.0 100.0 100.0 Land (14.2) (13.7) (14.9) Build (57.1) (50.8) (51.6) Sales & marketing (4.1) (5.1) (4.7) Gross margin 24.6 30.4 28.8 Operating expenses (6.9) (8.5) (9.3) Mer
Slide 19: Abridged Group Balance Sheet
Abridged Group Balance Sheet At 31 Oct At 31 Oct At 30 Apr At 30 Apr 2005 2004 2005 2005 (ex Crosby) £m £m £m £m Non-current assets 78.5 79.2 81.5 74.1 Inventories 879.1 1,109.0 1,103.0 918.5 Debtors 43.7 27.6 48.1 39.9 Creditors < 1 year (274.3) (276.9) (311.0) (266.4) Creditors > 1 year (29.9) (25
Slide 20: Inventories
Inventories At 31 Oct At 31 Oct At 30 Apr At 30 Apr 2005 2004 2005 2005 (ex Crosby) £m £m £m £m Land not under development 135.0 175.3 100.3 100.3 Work in progress: Land cost 291.7 384.5 472.5 353.2 426.7 559.8 572.8 453.5 Build cost 367.5 457.7 430.7 393.3 Completed units 79.9 85.5 92.9 66.2 Part e
Slide 21: Geographical Analysis of Residential Units Sold
Geographical Analysis of Residential Units Sold 6 Months to 6 Months to 12 Months to Oct 2005 Oct 2004 Apr 2005 Continuing operations No. % No. % No. % London 1,128 68 918 76 1,682 73 South East 528 32 358 24 610 27 1,656 100 1,276 100 2,292 100 Joint ventures 254 426 864
Slide 22: Geographical Analysis of Residential Turnover
Geographical Analysis of Residential Turnover 6 Months to 6 Months to 12 Months to Oct 2005 Oct 2004 Apr 2005 Continuing operations £m % ASP £m % ASP £m % ASP £’k £’k £’k London 381.5 77 325 281.3 74 293 539.7 73 328 South East 114.3 23 222 100.3 26 280 198.7 27 269 495.8 100 292 381.6 100 290 738.4
Slide 23: Land Bank (excluding Crosby)
Land Bank (excluding Crosby) At 31 Oct At 31 Oct At 30 Apr 2005 2004 2005 Owned 19,222 19,106 20,091 Contracted 3,024 3,023 2,680 Agreed 1,951 218 352 Plots 24,197 22,347 23,123 Sales value £6,119m £5,847m £5,931m Average selling price £253k £262k £257k Average plot cost £30k £36k £32k Land cost % 1
Slide 24: Largest London Sites Released to Market
Largest London Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Beaufort Park, Hendon 2,800 - 72 13 16 2,699 Imperial Wharf, Chelsea 1,880 578 103 4 20 1,175 St George Wharf, Vauxhall 1,426 668 100 - 2 656 Woolwich Arsenal 1,252 692 304 6 64 186 Battersea Reach 1,134 1
Slide 25: Largest Non-London Sites Released to Market
Largest Non-London Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Gunwharf Resid’l, Portsmouth 896 387 203 109 35 162 Knowle Village, Hampshire 543 340 11 1 8 183 The Waterways, Oxford 525 481 31 4 6 3 The Hamptons, Worcester Park 500 168 14 10 54 254 Royal Clarence
Slide 26: Tony Pidgley, Managing Director
TONY PIDGLEY MANAGING DIRECTOR
Slide 27: Managing Director’s Review
Managing Director’s Review • Cash Generation to secure the £12 return • Position Berkeley for now and the future • Cyclical business requires flexibility • Focus on strengths • Balance Risk • Maximise the residual business
Slide 28: Questions
Questions Roger Lewis Chairman Tony Pidgley Managing Director Rob Perrins Finance Director Tony Carey Executive Director Greg Fry Executive Director
The Berkeley Group Holdings — H1 2006 Earnings Presentation on 6ix