Berkeley Group Holdings plc · LSE:BKG
Berkeley — The Berkeley Group Holdings — H1 FY2007 Earnings Presentation
24 slides from Berkeley's earnings presentation, Dec 8, 2006
Slide 1: Interim Results Presentation
Interim Results Presentation 8th December 2006
Slide 2: Roger Lewis, Chairman
The Berkeley Group Holdings plc C 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 (1)
Financial Highlights (1) Six months to 31st October 2006 6 Months to 6 Months to Oct 2006 Oct 2005 Change Continuing Group £m £m £m % Profit before tax 81.5 86.0 (4.5) - 5.2% Tax (21.6) (24.4) Profit after tax 59.9 61.6 (1.7) - 2.8% Discontinued operations Profit from discontinued operations - 80.8
Slide 5: Financial Highlights (2)
Financial Highlights (2) Six months to 31st October 2006 Oct 2006 Apr 2006 Change Net assets £907.2m £837.2m + 8.4% Net asset value per share 753p 697p + 8.0% Net cash £322.0m £220.6m + £101.4m
Slide 6: The Return to Shareholders
The Return to Shareholders Board Approval Payment 2004 B Share £5 October 2004 3rd December 2004 2006 B Share £2 December 2006 8th January 2007 2008 B Share £2 December 2008 January 2009 2010 B Share £3 December 2010 January 2011 £12
Slide 7: Rob Perrins, Finance Director
ROB PERRINS FINANCE DIRECTOR
Slide 8: Review of Results
Review of Results Six months ended 31st October 2006 • Cash Flow • Income Statement • Pensions – Defined Benefit Scheme • Balance Sheet • Pro-forma Enlarged Group Balance Sheet • Sales Analysis • Land Holdings
Slide 9: Abridged Group Cash Flow
Abridged Group Cash Flow 6 Months to 6 Months to Change Oct 2006 Oct 2005 £m £m £m Continuing operations - Operating (net of interest and tax) 71.5 54.5 17.0 - Working capital movements 29.9 42.2 (12.3) 101.4 96.7 4.7 Discontinued operations - 229.7 (229.7) Decrease / (increase) in net debt 101.4 32
Slide 10: Second Half Cash Flows
Second Half Cash Flows • 7th November 2006: St James - £193 million - £68.6m acquisition of 50% of share capital - £28.9m settlement of shareholder loans - £2.0m fees - £93.5m land payments by St James • 8th January 2007 - £242 million shareholder payment • Second half working capital - Forecasting
Slide 11: Cash Due on Forward Sales
Cash Due on Forward Sales At 31 Oct At 31 Oct At 30 Apr 2006 2005 2006 £m £m £m Debtors taken to sales and due on completion 16.3 33.4 17.0 Due on units not yet taken to sales - Exchanged contracts 453.2 478.5 470.1 - Reserved units 99.0 110.7 94.8 Total cash due 568.5 622.6 581.9
Slide 12: Abridged Group Income Statement – Continuing Group
Abridged Group Income Statement – Continuing Group 6 Months to 6 Months to Oct 2006 Oct 2005 Change Continuing Group £m £m £m % Revenue 381.2 503.1 (121.9) -24.2% Gross margin 109.8 28.8% 123.9 24.6% (14.1) -11.4% Overheads (39.4) 10.3% (34.7) 6.9% (4.7) -13.5% Operating profit 70.4 18.5% 89.2 17.7%
Slide 13: Pensions – Defined Benefit Scheme
Pensions – Defined Benefit Scheme 2006 £m Enhancement payments to deferred members 3.7 Enhancement payments to active members 5.9 Cash cost of enhancement payments 9.6 Deficit eliminated (9.1) 0.5 Expenses (fees and national insurance costs) 1.0 Net cost to Berkeley 1.5 At 31 Oct At 30 Apr 2006 2006
Slide 14: Profit Distribution and ROCE
Profit Distribution and ROCE • Tax rate of 28.7% down from 29.2% (on profit before JV tax) • No dividend • Return on Capital Employed was 26.3% for the period (2005: 24.0%)
Slide 15: Abridged Group Balance Sheet
Abridged Group Balance Sheet At 31 Oct Change At 30 Apr Change At 31 Oct 2006 2006 2005 £m £m £m £’m £m Non-current assets 89.1 (0.4) 89.5 11.0 78.5 Inventories 754.8 (9.1) 763.9 (115.2) 879.1 Debtors 26.3 2.6 23.7 (20.0) 43.7 Creditors < 1 year (263.5) (28.5) (235.0) 39.3 (274.3) Creditors > 1 year
Slide 16: Inventories
Inventories At 31 Oct Change At 30 Apr Change At 31 Oct 2006 2006 2005 £m £m £m £m £m Land not under development 119.5 (19.2) 138.7 3.7 135.0 Work in progress: Land cost 344.6 52.3 292.3 (27.0) 319.3 464.1 33.1 431.0 (23.3) 454.3 Build cost 308.9 (30.4) 339.3 (55.7) 395.0 Completed units 41.2 (11.7)
Slide 17: Abridged Balance Sheet – Pro-forma Enlarged Group
Abridged Balance Sheet – Pro-forma Enlarged Group Group exc. St James at Enlarged At 31 October 2006 St James Fair Value Group £m £m £m Non-current assets 89.1 (56.1) 33.0 Inventories 754.8 321.8 1,076.6 Debtors 26.3 9.1 35.4 Creditors < 1 year (263.5) (72.5) (336.0) Creditors > 1 year (21.5) (44.1)
Slide 18: Inventories – Pro-forma Enlarged Group
Inventories – Pro-forma Enlarged Group Group exc. St James at Enlarged St James Fair Value Group £m £m £m Land not under development 119.5 113.8 233.3 Work in progress: Land cost 344.6 135.0 479.6 464.1 248.8 712.9 Build cost 308.9 76.7 385.6 Completed units 41.2 8.6 49.8 Part exchanges 1.9 - 1.9 Le
Slide 19: Analysis of Residential Units Sold
Analysis of Residential Units Sold 6 Months to 6 Months to 12 Months to Oct 2006 Oct 2005 Apr 2006 Continuing operations Units ASP Units ASP Units ASP Group 1,296 £284k 1,656 £292k 3,001 £293k Joint ventures 441 £329k 254 £520k 816 £372k
Slide 20: Land Bank
Land Bank At 31 Oct At 31 Oct At 30 Apr 2006 2005 2006 Owned 19,837 19,222 19,860 Contracted 6,713 3,024 3,264 Agreed 83 1,951 695 Plots 26,633 24,197 23,819 Sales value £6,700m £6,119m £6,067m Average selling price £252k £253k £255k Average plot cost £33k £30k £31k Land cost % 13.0% 12.0% 12.3% Gro
Slide 21: Largest Sites Released to Market
Largest Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Beaufort Park, Hendon 2,800 - 196 24 27 2,553 Imperial Wharf, Chelsea 1,879 673 342 40 7 817 St George Wharf, Vauxhall 1,403 772 - 36 - 595 Woolwich Arsenal 1,252 907 240 27 29 49 Battersea Reach 1,134 284 26 3 1
Slide 22: Tony Pidgley, Managing Director
TONY PIDGLEY MANAGING DIRECTOR
Slide 23: Managing Director's Review
Managing Director’s Review • Introduction • Our Results • The Market • Planning • St James • St Edward • Scheme of Arrangement • Awards • Conclusion
Slide 24: Questions
Questions Roger Lewis Chairman Tony Pidgley Managing Director Rob Perrins Finance Director Tony Carey Executive Director Greg Fry Executive Director
The Berkeley Group Holdings — H1 FY2007 Earnings Presentation on 6ix