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Mon June 14 2021

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Berkeley shareholders are quids in

19 Jun 13 House-builder Berkeley Group has reported 32% growth in revenues and 26% profits growth for the year to 30 April 2013.

Managing director Rob Perrins
Managing director Rob Perrins

Revenue for the year was £1,372.6m (2012: £1,041.1m). Pre-tax profit was £270.7m (2012: £214.8m).

The company invested £314.6m in land during the year to acquire 10 new sites totalling 3,021 residential plots.

“The growth in earnings this year is a direct result of a period of sustained investment since early 2009 during which Berkeley has committed over £1bn to new land and £2.4bn to construction and completed over 12,000 new homes in London and the south of England,” said chairman Tony Pidgley. “This investment has enabled us to regenerate derelict sites across the region, sustaining 16,000 jobs through increased activity and committing some £250m towards crucial local infrastructure improvements including schools, surgeries, parks and playgrounds.”

Managing director Rob Perrins said that Berkeley was ahead of track in its plan to return money to shareholders. “Berkeley has agreed a long-term strategic plan with shareholders to return £1.7bn in cash by meeting three milestone payments of £568m in 2015, and £567m in 2018 and 2021,” he said. “Key to the group's ability to meet these milestones is the underlying quality of the land bank. Having increased the estimated gross margin in the land bank by £272m to £2,852m this year, Berkeley is currently on course to outperform its short-term target to deliver the first milestone payment of £568m by 30 September 2015 from retained earnings. 

“Additionally, planning successes in the year mean that the land bank is currently in place from which to meet both the first and second milestones, some £1.14bn in cash in total.”

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