Berkeley Group Holdings Plc · LSE:BKG
Berkeley — The Berkeley Group — H1 2003/04 Earnings Presentation
25 slides from Berkeley's earnings presentation, Oct 31, 2003
Slide 1: a eh ia *
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Slide 2: Roger Lewis, Chairman
The Berkeley Group plc y 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 Half Year to October 2003
Financial Highlights Half Year to 31 October 2003 2003 2002 Increase Pre tax profits £116.8m £112.8m 3.5% Earnings per share 64.8p 57.9p 11.9% Net assets £1,127.0m £1,039.4m 8.4% Net asset value per share 889p 774p 15.0% Dividend £7.1m £6.5m 9.4% Dividends per share 5.8p 4.8p 20.8%
Slide 5: Rob Perrins, Finance Director
ROB PERRINS FINANCE DIRECTOR
Slide 6: Review of Results
Review of Results • Profit & loss account • Cash flow • Balance sheet • Sales analysis • Land holdings
Slide 7: Abridged Group Profit and Loss Account
Abridged Group Profit and Loss Account 6 Months to 6 Months to Oct 2003 Oct 2002 Change £m £m £m % Turnover (excluding JVs) 575.8 559.1 16.7 +3.0 Operating profit 110.1 19.1% 109.7 19.6% 0.4 +0.4 Joint ventures 10.6 9.6 1.0 +10.4 Net interest - Group (2.2) (5.2) 3.0 +57.7 - JVs (1.7) (1.3) (0.4) -30
Slide 8: Shares in Issue
Shares in Issue 2003/04 2002/03 Shares at 1 May 128,214,472 134,963,049 * Shares purchased (1,250,000) (-) Shares issued 560,762 9,859 Shares at 31 October 127,525,234 * 134,972,908 * Shares purchased (5,308,318) (6,786,559) Shares issued 627 28,123 Shares at 30 April 122,217,543 * ** 128,214,472 *
Slide 9: Profit Distribution
Profit Distribution • Tax rate of 29.8% down from 31.2% • Dividends per share up 20.8% to 5.8p • Dividend covered 11.6 times (2002: 12.0 times)
Slide 10: Analysis by Activity
Analysis by Activity Turnover Operating Profit 6 Months to 6 Months to 6 Months to 6 Months to Oct 2003 Oct 2002 Oct 2003 Oct 2002 £m £m £m £m Residential - Group 555.9 546.8 105.5 19.0% 106.1 19.4% - JV’s 56.8 49.5 9.8 17.3% 8.6 17.4% 612.7 596.3 115.3 114.7 95.5% 96.1% Commercial - Group 19.9 12.3
Slide 11: Profit Reconciliation
Profit Reconciliation £m £m 2002 Half Year Profit before tax 112.8 Group Residential: - housebuilding (1.9) - land 1.3 Commercial 1.0 0.4 Joint ventures Residential: - housebuilding 7.7 - land (6.4) Commercial (0.3) 1.0 Interest 2.6 2003 Half Year Profit before tax 116.8
Slide 12: Trading Account Profile - Percentages of Turnover
Trading Account Profile - Percentages of Turnover 6 Months to 6 Months to Full Year to Oct 2003 Oct 2002 Apr 2003 % % % Turnover 100.0 100.0 100.0 Land (18.1) (21.1) (21.5) Build (49.8) (46.4) (46.1) Sales & marketing (4.9) (4.6) (5.0) Gross margin 27.2 27.9 27.4 Operating expenses (8.1) (8.3) (8.6)
Slide 13: Abridged Group Cash Flow
Abridged Group Cash Flow 6 Months to 6 Months to Oct 2003 Oct 2002 £m £m Operating profit 110.1 109.7 Non cash items 1.4 1.6 111.5 111.3 Tax and dividends (47.4) (30.4) Net interest (2.5) (4.7) 61.6 76.2 Movement in working capital 82.5 69.0 Capex and financial investment - 4.7 144.1 149.9 Share buy
Slide 14: Cash Due on Forward Sales
Cash Due on Forward Sales At 31Oct At 31 Oct At 30 Apr 2003 2002 2003 £m £m £m Debtors taken to sales and due on completion 164.9 135.2 229.0 Due on units not yet taken to sales - Exchanged contracts 555.9 748.8 600.8 - Reserved units 154.6 119.6 91.1 Total cash due 875.4 1003.6 920.9
Slide 15: Abridged Group Balance Sheet
Abridged Group Balance Sheet At 31 Oct At 31 Oct At 30 April 2003 2002 2003 £m £m £m Fixed assets and investments 81.9 77.6 77.4 Stocks 1,080.3 1,133.1 1,151.1 Debtors 184.4 149.1 247.5 Investments 62.6 58.7 62.0 Creditors < 1 year (274.6) (272.8) (316.5) Creditors > 1 year (4.2) (12.8) (22.2) Capit
Slide 16: Stocks
Stocks At 31 Oct At 31 Oct At 30 Apr 2003 2002 2003 £m £m £m Land not under development 123.5 174.2 135.2 Work in progress: Land cost 428.5 467.9 488.5 Build cost 427.1 415.5 444.8 Completed units 89.6 69.3 71.5 Part exchanges 11.6 6.2 11.1 1,080.3 1,133.1 1,151.1
Slide 17: Geographical Analysis of Residential Units Sold
Geographical Analysis of Residential Units Sold 6 Months to 6 Months to Full Year Oct 2003 Oct 2002 to Apr 2003 No. % No. % No. % London 908 45 658 37 1,321 37 South East 525 26 729 40 1,160 33 North West and Yorkshire 409 20 184 10 328 9 Midlands, West England and Wales 173 9 239 13 735 21 2,015 10
Slide 18: Geographical Analysis of Residential Turnover
Geographical Analysis of Residential Turnover 6 Months to 6 Months to Full Year to Oct 2003 Oct 2002 Apr 2003 £m % ASP £m % ASP £m % ASP £’k £’k £’k London 298.0 54 322 225.3 41 351 521.6 46 381 South East 141.7 25 261 221.3 41 274 373.9 33 323 N.W. and Yorkshire 71.4 13 189 39.1 7 207 87.0 8 259 Mi
Slide 19: Land Bank
Land Bank At 31 Oct At 31 Oct At 30 Apr 2003 2002 2003 Owned 18,884 16,049 19,459 Contracted 5,411 2,661 3,358 Agreed 1,707 2,611 3,033 Plots 26,002 21,321 25,850 Sales value £7,052m £6,451m £7,044m Average selling price £271k £303k £272k Average plot cost £38k £52k £40k Land cost % 14.2% 17.0% 14.5
Slide 20: Group Land Holdings by Division
Group Land Holdings by Division At 31 Oct At 31 Oct At 30 Apr 2003 2002 2003 No. No. No. Berkeley Homes (London) 7,331 4,245 6,361 Berkeley Homes (Home Counties) 4,172 4,682 4,216 St George 6,188 4,104 6,638 Crosby Homes 4,682 4,936 4,815 College Homes 819 214 700 St James Group 2,810 3,140 3,120 26
Slide 21: 15 Largest London Sites Released to Market
15 Largest London Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Imperial Wharf 1,694 127 332 9 36 1,190 Woolwich Arsenal 919 266 148 13 4 488 St George Wharf 782 437 57 21 2 265 Chelsea Bridge Wharf 735 234 142 11 13 335 Grosvenor Dock, SW1 691 0 99 32 57 503 Batter
Slide 22: 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 1,014 1 38 34 42 899 Clarence Dock, Leeds 623 128 57 53 35 350 Knowle Village, Hampshire 497 206 47 16 15 213 Unipart, Oxford 478 286 20 80 9 83 Gunwharf Quays, Portsmouth 364 24
Slide 23: Tony Pidgley, Managing Director
TONY PIDGLEY MANAGING DIRECTOR
Slide 24: Managing Director's Review
Managing Director’s Review • Berkeley Group • Financial strength • Highlights • Current trading and the housing market • Berkeley’s consistent strategy
Slide 25: Questions
Questions Roger Lewis Chairman Tony Pidgley Managing Director Rob Perrins Finance Director
The Berkeley Group — H1 2003/04 Earnings Presentation on 6ix