Berkeley Group Holdings Plc · LSE:BKG
Berkeley — The Berkeley Group Holdings — FY2011 Earnings Presentation
25 slides from Berkeley's earnings presentation, Jun 24, 2011
Slide 1: Full Year Results Presentation
Full Year Results Presentation Year ended 30 April 2011 24 June 2011
Slide 2: Format of presentation
Format of presentation Chairman Tony Pidgley Finance Director Nick Simpkin Managing Director Rob Perrins Questions
Slide 3: Tony Pidgley, Chairman
TONY PIDGLEY CHAIRMAN
Slide 4: Proposed £13 per share cash return
Proposed £13 per share cash return Dividend £/share By 30 September 2015 4.34 By 30 September 2018 4.33 By 30 September 2021 4.33 13.00 Total return to existing shareholders £1.7 billion
Slide 5: Nick Simpkin, Finance Director
NICK SIMPKIN FINANCE DIRECTOR
Slide 6: Review of full year results
Review of full year results • Summary of performance • Summary of financial position • Banking facilities • Income statement • Homes completed and ASP • Abridged cash flow • Abridged balance sheet • Inventories • Creditors • Land holdings
Slide 7: Summary of performance
Summary of performance Apr 2011 Apr 2010 Change Operating profit £135.7m £106.2m + £29.5m + 27.8% Operating margin 18.3% 17.3% Profit before tax £136.2m £110.3m + £25.9m + 23.5% EPS – Basic 72.1p 60.0p + 12.1p + 20.2% Weighted ave. no. of shares 132.0m 132.8m Cash (outflow)/inflow before financing (
Slide 8: Summary of financial position
Summary of financial position Apr 2011 Apr 2010 Change Shareholders’ funds £929.4m £858.6m + £70.8m + 8.2% Net asset value per share 709.2p 636.7p + 72.5p + 11.4% Shares in issue 131.0m 134.9m - 3.9m - 2.9% Closing net cash £42.0m £316.9m - £274.9m Land bank - Plots 27,026 28,099 - 1,073 - Gross mar
Slide 9: Banking facilities
Banking facilities Apr 2011 Apr 2010 Maturity Facility Facility £m £m Corporate: Facility No.1 Nov 2013 200.0 300.0 Facility No.2 Apr 2016 250.0 - 450.0 300.0 Project: Project specific n/a - 39.0 Winstanley Rd Sep 2020 68.0 68.0 Total facilities 518.0 407.0 St Edward Homes Apr 2016 60.0 -
Slide 10: Income statement
Income statement Apr 2011 Apr 2010 Change £m £m £m Revenue 742.6 615.3 + 127.3 + 20.7% Gross profit 209.1 28.2% 166.4 27.0% + 42.7 + 25.7% Overheads (73.4) 9.9% (60.2) 9.8% 13.2 + 21.9% Operating profit 135.7 18.3% 106.2 17.3% + 29.5 + 27.8% Net finance income/(costs) (1.5) 4.4 5.9 Joint venture
Slide 11: Homes completed and ASP
Homes completed and ASP Units ASP Units ASP 2010/11 HY02 1,295 £280,000 2,544 £271,000 2010/11 HY01 1,249 £262,000 St Edward Homes 164 £251,000 2009/10 HY02 1,287 £238,000 2,201 £263,000 2009/10 HY01 914 £299,000 2008/09 HY02 533 £388,000 1,501 £395,000 2008/09 HY01 968 £399,000 2007/08 HY02 1,537 £
Slide 12: Abridged cash flow
Abridged cash flow Apr 2011 Apr 2010 £m £m Profit before tax 136.2 110.3 Increase in inventory – land (207.4) (85.2) Increase in inventory – build WIP & stock (151.7) (25.9) Transfer from inventory to rental fund (28.6) - Net movement in JVs (12.7) (5.2) Other working capital movements 46.8 88.0 Acq
Slide 13: Abridged balance sheet
Abridged balance sheet Apr 2011 Movements Apr 2010 £m £m £m Non-current assets - Intangible assets 17.2 - 17.2 - Investment properties 28.6 28.6 - - Investment in JV’s 38.7 12.7 26.0 - Other non-current assets 29.5 5.0 24.5 Inventories 1,613.2 359.1 1,254.1 Debtors 96.7 39.0 57.7 Creditors (932.1) (
Slide 14: Inventories
Inventories Apr 2011 Movements Apr 2010 £m £m £m Land not under development 316.6 74.5 242.1 Work in progress: Land cost 631.9 132.9 499.0 948.5 207.4 741.1 Work in progress: Build cost 615.7 169.0 446.7 Completed units 49.0 (17.3) 66.3 1,613.2 359.1 1,254.1
Slide 15: Creditors
Creditors Apr 2011 Movements Apr 2010 £m £m £m Trade creditors and accruals 299.8 74.0 225.8 Deposits and on account receipts 472.0 10.4 461.6 Land creditors 66.4 2.6 63.8 Current tax liability 93.9 11.0 82.9 Total creditors 932.1 98.0 834.1 Land creditors Land creditors < 12 months 15.4 3.4 12.0 La
Slide 16: Land holdings
Land holdings Apr 2011 Variance Apr 2010 Owned 26,865 229 27,094 Contracted 147 788 935 Agreed 14 56 70 Plots * 27,026 1,073 28,099 Sales value £8,135m + £915m £7,220m Average selling price 301k + £44k £257k Average plot cost 44k + £8k £36k Land cost % 14.6% + 0.6% 14.0% Gross margin £2,304m +
Slide 17: Sites acquired – London since March 2009
Sites acquired – London since March 2009
Slide 18: Sites acquired – South East since March 2009
Sites acquired – South East since March 2009
Slide 19: Rob Perrins, Managing Director
ROB PERRINS MANAGING DIRECTOR
Slide 20: Introduction
Introduction 1. Performance 2. Rationale for long-term strategic plan 3. Outlook
Slide 21: Slide 21
Slide 22: Performance – Operating model
Performance – Operating model
Slide 23: Rationale for long-term strategic plan
Rationale for long-term strategic plan 1. Framework for managing risk 2. Clarity over return for shareholders 3. Discipline for investment allocation 4. Aligns management and shareholder over the long term 5. Ensures Berkeley remains at its natural size 6. Financial risk is limited
Slide 24: Outlook
Outlook 1. Strength from land bank and forward sales 2. Selective land acquisition 3. Further investment in work in progress 4. Utilisation of bank facilities 5. Adding value throughout the development cycle
Slide 25: Questions
Questions Tony Pidgley Chairman Rob Perrins Managing Director Nick Simpkin Finance Director
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