Berkeley Group Holdings Plc · LSE:BKG
Berkeley — The Berkeley Group Holdings — FY2006 Earnings Presentation
23 slides from Berkeley's earnings presentation, Jun 30, 2006
Slide 1: Preliminary Results Presentation
Preliminary Results Presentation 30th June 2006
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 2006
Financial Highlights (1) Year ended 30th April 2006 2006 2005 Change Continuing Group £m £m £m % Profit before tax 165.1 155.4 9.7 6.2% Tax (43.7) (41.4) (2.3) (5.6%) Profit after tax 121.4 114.0 7.4 6.5% Discontinued operations Profit from discontinued operations 80.8 24.9 55.9 Total profit after t
Slide 5: Financial Highlights (2) Year ended 30th April 2006
Financial Highlights (2) Year ended 30th April 2006 2006 2005 Change Net assets £837.2m £621.4m 34.7% Net asset value per share 697p 518p 34.6% Net cash / (debt) £220.6m (£255.1m) £475.7m
Slide 6: The Return to Shareholders
The Return to Shareholders Board Approval Payment 2004 B Share £5 October 2004 3rd December 2004 2006 B Share £2 December 2006 January 2007 2008 B Share £2 December 2008 January 2009 2010 B Share £3 December 2010 January 2011 £12
Slide 7: Rob Perrins, Finance Director
ROB PERRINS FINANCE DIRECTOR
Slide 8: Review of Results
Review of Results • Cash flow • Profit & loss account • Balance sheet • Sales analysis • Land holdings • Crosby • IFRS
Slide 9: Abridged Group Cash Flow
Abridged Group Cash Flow 12 Months to 12 Months to Change Apr 2006 Apr 2005 £m £m £m Continuing operations - Operating (net of interest and tax) 119.6 110.1 9.5 - Working capital movements 126.4 38.8 87.6 246.0 148.9 97.1 Discontinued operations 229.7 92.5 137.2 Payments to Shareholders - (641.7) 64
Slide 10: Cash Due on Forward Sales
Cash Due on Forward Sales At 30 Apr At 30 Apr Change 2006 2005 £m £m £m Debtors taken to sales and due on completion 17.0 37.3 (20.3) Due on units not yet taken to sales - Exchanged contracts 470.1 572.8 (102.7) - Reserved units 94.8 76.9 17.9 Total cash due (excluding Crosby) 581.9 687.0 (105.1) To
Slide 11: Abridged Group Income Statement – Continuing Group
Abridged Group Income Statement – Continuing Group 12 Months to 12 Months to Apr 2006 Apr 2005 Change Continuing Group £m £m £m % Revenue 917.9 794.5 123.4 15.5% Gross Profit 231.8 25.2% 229.1 28.8% 2.7 1.2% Overheads (70.9) 7.7% (75.7) 9.5% 4.8 6.3% Operating Profit 160.9 17.5% 153.4 19.3% 7.5 4.9%
Slide 12: Abridged Group Income Statement – Including Discontinued
Abridged Group Income Statement – Including Discontinued 12 Months to 12 Months to Apr 2006 Apr 2005 Change Continuing Group £m £m £m % Profit before tax 165.1 155.4 9.7 6.2% Tax (43.7) (41.4) (2.3) (5.6%) Profit after tax 121.4 114.0 7.4 6.5% Discontinued operations Profit after tax 1.1 24.9 (23.8)
Slide 13: Profit on Sale of Crosby
Profit on Sale of Crosby £m £m Consideration 250.7 Net assets disposed Non-current assets 10.8 Current assets 202.5 Creditors (falling due within one year) (36.6) Creditors (falling due after one year) (7.8) Minority interest (0.5) 168.4 Expenses relating to the disposal 2.8 Curtailment gain (0.2) (
Slide 14: Profit Distribution and ROCE
Profit Distribution and ROCE • Group tax rate of 28.5% down from 28.6% • No dividend • Return on Capital Employed (excluding the profit on disposal of Crosby) was 24.0% for the year (2005: 22.0%) • On target to make £2 per share repayment (£241.6m) in January 2007
Slide 15: Abridged Group Balance Sheet
Abridged Group Balance Sheet At 30 Apr Change At 30 Apr Change At 30 Apr 2006 2005 2005 (ex Crosby) £m £m £m £’m £m Non-current assets 89.5 2.1 87.4 (9.1) 96.5 Inventories 763.9 (154.6) 918.5 (184.5) 1,103.0 Debtors 23.7 (16.2) 39.9 (8.2) 48.1 Creditors < 1 year (235.0) 44.7 (279.7) 46.3 (326.0) Cre
Slide 16: Inventories
Inventories At 30 Apr Change At 30 Apr Change At 30 Apr 2006 2005 2005 (ex Crosby) £m £m £m £m £m Land not under development 138.7 38.4 100.3 - 100.3 Work in progress: Land cost 280.0 (73.2) 353.2 (119.3) 472.5 418.7 (34.8) 453.5 (119.3) 572.8 Build cost 289.9 (103.4) 393.3 (37.4) 430.7 Completed un
Slide 17: Analysis of Residential Units Sold
Analysis of Residential Units Sold 12 Months to 12 Months to Apr 2006 Apr 2005 Continuing operations Units ASP Units ASP Group 3,001 £293k 2,292 £309k Joint ventures 816 £372k 799 £358k
Slide 18: Land Bank (excluding Crosby)
Land Bank (excluding Crosby) At 30 Apr At 30 Apr 2006 2005 Owned 19,860 20,091 Contracted 3,264 2,680 Agreed 695 352 Plots 23,819 23,123 Sales value £6,067m £5,931m Average selling price £255k £257k Average plot cost £31k £32k Land cost % 12.3% 12.4% Gross margin £1,672m £1,671m GM% 27.6% 28.2% • In
Slide 19: 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 - 146 5 10 2,639 Imperial Wharf, Chelsea 1,880 613 345 13 14 895 St George Wharf, Vauxhall 1,427 756 13 - - 658 Woolwich Arsenal 1,257 866 179 42 68 102 Battersea Reach 1,134 20
Slide 20: Largest Non-London Sites Released to Market
Largest Non-London Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Holborough Valley, Snodland 1,001 30 56 14 21 880 Gunwharf Resid’l, Portsmouth 899 582 142 2 27 146 Kennet Island, Reading 850 - - - 68 782 Royal Clarence Yard, Gosport 698 279 - 2 33 384 Knowle Villag
Slide 21: Tony Pidgley, Managing Director
TONY PIDGLEY MANAGING DIRECTOR
Slide 22: Managing Director's Review
Managing Director’s Review • People • Our Strategy • Scheme of Arrangement • Optimising our Land Holdings • Joint Ventures • Market • Costs • Conclusion
Slide 23: 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 — FY2006 Earnings Presentation on 6ix