Friday, 4 December 2015

Berkeley Group - Interim Results

At the half way point last year revenues were up 24% at £1.022m. Pre tax profits were up by a stonking 79.9% at £304.9m (2013 £169.5m) and underlying earnings per share were up 28.9% at 128.9p (2013 100p).

Over the year, the share price has risen over 30% from £26 to reach a high of £35 in Sept. In addition the company has paid dividends of £1.80.

They have today issued results for the half year to end October 2015 (link via Investegate).

Revenues increased 11.4% to £1.14bn, adjusted profits increased 10.2% excluding ground rents assets.

In 2011, Berkeley put in place a framework to deliver £13 per share to shareholders over a ten year period, as the market began to recover from the global financial crisis. The Company is now proposing to increase the 2021 target from £13.00 per share to £16.34 per share, with the remaining £12 per share to be paid in annual dividends of £2 per share over the next six years

The board have therefore declared a further interim dividend of 100p payable in January 2016 - xd 18th December and propose to deliver a further 100p dividend in September.

Berkeley remains ungeared with net cash of £263.1m.

Commenting on the interim results, Chairman Tony Pidgley CBE said: "Berkeley's contribution to housebuilding, job creation and the wider economy remains strong. Our contribution to UK GDP was £2.1 billion in 2015, up 40% from 2014 and the seventh consecutive year of growth. Over the last five years, Berkeley has built over 17,750 new homes and contributed a total of £1.8 billion to the Treasury through direct and wider taxation. We are now supporting 26,000 jobs in the business and our supply chain. Meanwhile, since its inception in 2011, the Berkeley Foundation has committed over £6.7 million to more than 70 charities, of which £2 million has been raised by Berkeley's staff".

2015 year to date (click to enlarge)
There can be no doubt these are once again very good figures. The results were well received by the market and by lunchtime the share price was up over 6% at £35.90. The yield is currently 5.5%.

I have sold around half my individual shares this past year but I am happy I decided to keep hold of Berkeley!

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