Skip to main navigation or content
Berkeley Group pushed profits ahead at the half-way stage, while the number of units sold rose from 1,296 a year earlier to 1,630. The average selling price fell from £284,000 to £245,000 - this reflected a change in the product mix rather than a collapse in demand and that's forecast to reverse in the second half.
Advertising
In fact, demand is holding-up well and the company even managed to boost operating margins, up from 19.5 per cent to 21.8 per cent. What's more, Berkeley also increased the size of its land bank from 30,128 plots in April to 31,307. And forward sales improved by 55 per cent to £1.45bn, which means that the group is fully sold for the current financial year and well placed to meet its output targets for 2009.
Meanwhile, plans to return further funds to shareholders have been brought forward, so that a 200p per share payment will be made on 4 January. The remaining 300p payment is due before January 2011, and ordinary dividend payments at a cover of less than two times will be introduced thereafter.
Citi Investment research is forecasting full-year pre-tax profits of £205m and diluted EPS of 119.9p (£188.1m and 111.9p in 2007).
| BERKELEY GROUP (BKG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,304p | MARKET VALUE: | £ 1,576m | |
| TOUCH: | 1303-1304p | 12-MONTH HIGH: | 1,939p | LOW: 1,255p |
| DIVIDEND YIELD: | nil | PE RATIO: | 11 | |
| NET ASSET VALUE: | 704p | NET CASH: | £113m | |
| Half-year to 31 Oct | Turnover (£m) | Pretax profit (£m) | Earnings per share (p) | Net div per share(p)* |
|---|---|---|---|---|
| 2006 | 381 | 81.5 | 49.8 | nil |
| 2007 | 441 | 90.6 | 52.6 | nil |
| % change | +16 | +11 | +6 | - |
*Excludes special dividends to shareholders |
||||
Click here for a guide to the terms used in IC results tables.
Berkeley looks well placed in its market niche - the group also boasts a solid land bank and plenty of cash. But, trading on a forward PE ratio of 11, the shares are hardly cheap for a housebuilder. Fairly priced.
Last IC view: Fairly priced, 1,811p, 29 June 2007
The UK’s No.1 Stockbroker
Access a selection of share tips, comprehensive company analysis and full financial data on listed companies. Plus portfolio tools with advanced alerts when you register for free here.
Advertorial Feature
With so many big moves in the world's financial markets, there have seldom been more opportunities around for spread traders. Isn't it time you joined them?
by Dominic Piccarda
© The Financial Times Limited 2008. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
-IC-1.5.4a-prod - 31/10/2008 13:11:34 - carlos.princz
