Berkeley Group Holdings (The) PLC Trading Statement (0197S)
March 12 2021 - 1:00AM
UK Regulatory
TIDMBKG
RNS Number : 0197S
Berkeley Group Holdings (The) PLC
12 March 2021
The Berkeley Group Holdings plc
Trading Update
Period from 1 November 2020 to 28 February 2021
The Berkeley Group Holdings plc ("Berkeley" or the "Company")
today announces its Trading Update that covers the period from 1
November 2020 to 28 February 2021.
"Since the half year, Berkeley has continued to trade robustly.
T he health, safety and well-being of our people remains uppermost
in our minds. As the impact of Covid-19 continues to affect all our
daily lives, we have maintained appropriate safe operating
procedures across our sites, sales centres and offices to keep our
customers, communities and construction teams safe, while
continuing to deliver for our customers and stakeholders.
Berkeley remains on track to deliver, in line with guidance, a
similar profit to last year (2020: GBP504 million) and forward
sales are anticipated to be above GBP1.7 billion at the year-end,
representing a very strong position from which to enter the next
financial year. The estimated future gross margin in the land bank
is expected to be in excess of last year's GBP6.4 billion and,
subject to investment levels and timing in the intervening period,
net cash will be around the level reported at the half year (GBP954
million).
The market fundamentals remain strong with low interest rates,
under-supply in Berkeley's core markets and the enduring attraction
of London and the South East. In addition, Berkeley's focus on
community, nature, connectivity and overall quality of place will
resonate with customers as the country emerges from the
pandemic.
Sales reservations have been robust where we have had
availability of stock. While enquiry levels have been consistently
strong, Berkeley has re-profiled the launch of new developments and
phases into the market until the economy opens up post-lockdown
and, as a consequence, we anticipate the value of reservations for
the current financial year to be around 20% lower than last year.
Pricing has been stable over the period and cancellation rates at
normal levels.
The current operating environment remains volatile with the
period under review including both the second and third national
lockdowns and the ending of the Brexit transition period.
Nevertheless, Berkeley has continued to invest in its large,
complex, long-term regeneration sites. Onsite labour numbers remain
above pre-pandemic levels and, while we are experiencing some
materials delays and price increases in specific areas, the overall
impact on build costs has been neutral.
We continue to invest selectively in new land opportunities, as
well as focusing on planning and the myriad of other complexities
associated with bringing our sites into production.
Looking forward, Berkeley is on track to deliver a similar level
of profitability in its next financial year and to achieve its
long-term 15% pre-tax return on equity guidance. This underpins
Berkeley's ongoing commitment to return GBP280 million per annum to
shareholders through either dividends or share buy-backs; a level
it has delivered consistently since 2016, including over the last
12 months. "
END
For further information please contact:
The Berkeley Group Holdings plc Novella Communications
R J Stearn Tim Robertson
T: 01932 868 555 T: 020 3151 7008
LEI: 2138009OQSSLVVHQAL78
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END
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