Berkeley Group Holdings Plc · LSE:BKG
Berkeley — The Berkeley Group Holdings — FY2005 Earnings Presentation
24 slides from Berkeley's earnings presentation, Jun 24, 2005
Slide 1: Preliminary Results Presentation
Preliminary Results Presentation 24th June 2005 DRAFT
Slide 2: Roger Lewis, Chairman
The Berkeley Group Holdings ple % f 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 DRAFT
Slide 4: Financial Highlights
Financial Highlights Year ended 30th April 2005 2005 2004 Change Pre tax profits £202.9m £229.8m (11.7%) Earnings per share 121.0p 130.4p (7.2%) Net assets £669.5m £1,142.6m (41.4%) Net asset value per share 558p 944p (40.9%) Net (debt) / cash (£255.1m) £145.2m DRAFT
Slide 5: Return of £12 per Share
Return of £12 per Share • Strategic review and return of capital announced on 25th June 2004 • Focus on – Urban regeneration – Cash generation – £12 per share (£1.45 billion) to be returned to shareholders by January 2011 • Shareholder approval received on 17th September 2004 • Court approval of Sch
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 DRAFT
Slide 7: Rob Perrins, Finance Director
ROB PERRINS FINANCE DIRECTOR DRAFT
Slide 8: Review of Results
Review of Results • Cash flow • Profit & loss account • Balance sheet • Sales analysis • Land holdings • Impact of IFRS DRAFT
Slide 9: Abridged Group Cash Flow
Abridged Group Cash Flow 12 Months to 12 Months to Apr 2005 Apr 2004 £m £m Operating profit 199.6 212.8 Non cash items 5.4 3.8 205.0 216.6 Tax (59.7) (62.6) Net interest 3.6 (1.7) 148.9 152.3 Movement in working capital 84.2 219.3 Capex and financial investment 8.4 (25.7) Acquisitions and disposals
Slide 10: Cash Due on Forward Sales
Cash Due on Forward Sales At 30 Apr At 30 Apr 2005 2004 £m £m Debtors taken to sales and due on completion 139.8 156.4 Due on units not yet taken to sales - Exchanged contracts 712.9 604.0 - Reserved units 95.3 184.9 Total cash due 948.0 945.3 Total cash due (excluding Crosby) 687.0 629.6 DRAFT
Slide 11: Abridged Group Profit and Loss Account
Abridged Group Profit and Loss Account 12 Months to 12 Months to Apr 2005 Apr 2004 Change Restated £m £m £m % Turnover (excluding JVs) 1,070.3 1,272.4 (202.1) (15.9) Operating profit 199.6 18.6% 212.8 16.7% (13.2) (6.2) Joint ventures 15.2 21.9 (6.7) (30.6) Merger expenses (1.6) - (1.6) Net interest
Slide 12: Abridged Group Profit and Loss Account
Abridged Group Profit and Loss Account 12 Months to Apr 2005 12 Months to Apr 2004 Restated Continuing Discont’d Total Continuing Discont’d Total £m £m £m £m £m £m Turnover (excluding JVs) 824.1 246.2 1,070.3 1,048.3 224.1 1,272.4 Operating profit 162.3 37.3 199.6 187.3 25.5 212.8 Joint Ventures 14.
Slide 13: Profit Distribution and ROCE
Profit Distribution and ROCE • Tax rate of 28.7% down from 29.8% • No dividend • Return on Capital Employed was 22.2% for the year (2004: 21.4%) • £604.1m capital redemption on 3rd December 2004 DRAFT
Slide 14: Trading Account Profile - Percentages of Turnover
Trading Account Profile - Percentages of Turnover 12 Months to 12 Months to Apr 2005 Apr 2004 Restated % % Turnover 100.0 100.0 Land (15.3) (18.3) Build (52.8) (52.8) Sales & marketing (4.9) (4.8) Gross margin 27.0 24.1 Operating expenses (8.3) (7.3) Operating profit 18.7 16.8 Joint ventures 1.4 1.7
Slide 15: Abridged Group Balance Sheet
Abridged Group Balance Sheet At 30 Apr At 30 Apr 2005 2004 Restated £m £m Fixed assets and investments 79.3 81.9 Stocks 1,053.7 1,066.3 Debtors 155.7 172.3 Creditors (364.1) (323.1) Capital employed 924.6 997.4 Net (debt) / cash (255.1) 145.2 Net assets 669.5 1,142.6 Net asset value per share 588p 9
Slide 16: Stocks
Stocks At 30 Apr At 30 Apr 2005 2004 £m £m Land not under development 100.3 182.7 Work in progress: Land cost 429.6 403.9 529.9 586.6 Build cost 424.3 398.3 Completed units 92.9 75.0 Part exchanges 6.6 6.4 1,053.7 1,066.3 DRAFT
Slide 17: Geographical Analysis of Residential Units Sold
Geographical Analysis of Residential Units Sold 12 Months to 12 Months to Apr 2005 Apr 2004 No. % No. % London 1,579 44 1,870 49 South East 829 23 959 25 North West and Yorkshire 714 20 648 17 Midlands, West England and Wales 448 13 328 9 3,570 100 3,805 100 Joint ventures 809 1,034 DRAFT
Slide 18: Geographical Analysis of Residential Turnover
Geographical Analysis of Residential Turnover 12 Months to 12 Months to Apr 2005 Apr 2004 £m % ASP £m % ASP £’k £’k London 550.6 55 339 632.1 56 321 South East 217.8 22 271 279.8 25 281 N.W. and Yorkshire 150.1 15 224 134.4 12 202 Midlands, W. England and Wales 84.3 8 191 84.0 7 235 1,002.8 100 282
Slide 19: Land Bank
Land Bank At 30 Apr At 30 Apr At 30 Apr 2005 2005 2004 (excl Crosby) Owned 19,767 23,288 21,449 Contracted 2,680 3,407 4,315 Agreed 352 583 890 Plots 22,799 27,278 26,654 Sales value £5,840m £6,616m £6,789m Average selling price £256k £243k £255k Average plot cost £32k £29k £34k Land cost % 12.4% 11
Slide 20: 15 Largest London Sites Released to Market
15 Largest London Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Imperial Wharf, Chelsea 1,880 493 105 5 18 1,259 Woolwich Arsenal 1,252 556 323 26 31 316 Battersea Reach 1,134 105 59 37 1 932 St George Wharf, Vauxhall 920 466 300 1 - 153 Chelsea Bridge Wharf 842 472
Slide 21: 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 * 1,336 113 410 72 155 586 Clarence Dock, Leeds * 1,123 363 509 3 119 129 Gunwharf Resid’l, Portsmouth 895 363 194 21 8 309 Knowle Village, Hampshire 543 326 16 1 16 184 The Wate
Slide 22: Impact of IFRS
Impact of IFRS • Adoption of IFRS for the first time in interim results for the six months ended 31st October 2005 • IFRS transition presentation to follow in September / October • Comparative year ended 30th April 2005 to be restated under IFRS • Key impact areas include: – IAS 18: Revenue and prof
Slide 23: Tony Pidgley, Managing Director
TONY PIDGLEY MANAGING DIRECTOR DRAFT
Slide 24: Questions
Questions Roger Lewis Chairman Tony Pidgley Managing Director Rob Perrins Finance Director Tony Carey Executive Director Greg Fry Executive Director DRAFT
The Berkeley Group Holdings — FY2005 Earnings Presentation on 6ix