Although April and May sales volumes were around half the normal level, Berkeley (BKG) is betting on a bounceback in the UK housing market by the end of its current financial year in April 2021. The housebuilder is continuing to target a cumulative return on capital employed of 15 per cent for the six years to 2025, equivalent to an average annual pre-tax profit of £500m, although it does expect two-thirds of this year’s profits to be weighted towards the second half.
The group’s growing cash balance also means it has committed to making a further £280m in shareholders returns this year via share buybacks and dividends, although the previously proposed return of £455m in surplus capital will still be deferred for up to two years. The next £140m installment will be paid on 11 September, with the amount paid in the form of a dividend due to be announced on 13 August.
The completion of several large London developments meant house sales were behind the prior year by around a quarter, but the order book edged higher to £1.9bn.
Peel Hunt forecasts adjusted pre-tax profits of £540m and EPS of 336p for the year to April 2021, rising to £590m and 382p the following year.
| BERKELEY GROUP (BKG) | ||||
| ORD PRICE: | 4,371p | MARKET VALUE: | £ 5.49bn | |
| TOUCH: | 4,153-4,458p | 12-MONTH HIGH: | 5,562p | LOW: 3,041p |
| DIVIDEND YIELD: | tbc | PE RATIO: | 13 | |
| NET ASSET VALUE: | 2467p | NET CASH: | £1.1bn | |
| Year to 30 Apr | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 2.05 | 531 | 296 | 200 |
| 2017 | 2.72 | 812 | 468 | 137 |
| 2018 | 2.84 | 977 | 587 | 90 |
| 2019 | 2.96 | 775 | 481 | 119 |
| 2020 | 1.92 | 504 | 325 | tbc * |
| % change | -35 | -35 | -32 | - |
| Ex-div: | 20 Aug | |||
| Payment: | 11 Sep | |||
| * Amount to be announced on 13 August 2020. | ||||
