PERFORMANCE
Profit before tax up 26.0% to £270.7 million (2012: £214.8 million)
Operating margin before exceptional item up 1.6% to 20.4% (2012: 18.8%)
Pre-tax return on shareholders' equity of 22.4% (2012: 21.2%)
£314.6 million invested in land in the year acquiring a further 3,021 residential plots
Basic earnings per share increased by 32.2% to 160.0 pence (2012: 121.0 pence)
Further interim dividend of 59 pence per share payable in September 2013
BALANCE SHEET
Net cash of £44.7 million (April 2012: net debt of £57.9 million)
Cash due on forward sales of £1,452.8 million (April 2012: £1,055.7 million)
Shareholders' equity up £222.6 million to £1,322.4 million (April 2012: £1,099.8 million)
Net Asset Value per share up 20.2% to 1,009.1 pence (April 2012: 839.3 pence)
25,684 plots in land bank (April 2012: 26,021)
Future anticipated gross margin in land bank up 10.5% to £2,852 million (April 2012: £2,580 million)
Commenting on the results, Chairman Tony Pidgley CBE said:
"I am delighted to report a strong set of results which underline the benefit of a strategy aligned with a cyclical market. A combination of 32% growth in earnings in the year, an increase in cash due on forward sales to over £1.4 billion and continued growth of the land bank means that Berkeley remains on track to meet the first £568 million milestone payment by September 2015 under its ten year plan to return £1.7 billion to shareholders.
In this context, I am pleased to report that the Board has declared a further interim dividend of 59 pence per share, payable in September 2013, which will count towards the first return and follows the payment of an interim dividend of 15 pence per share in April 2013.
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 £1 billion to new land and £2.4 billion to construction and completed over 12,000 new homes in London and the South of England. This investment has enabled us to regenerate derelict sites across the region, sustaining 16,000 jobs through increased activity and committing some £250 million towards crucial local infrastructure improvements including schools, surgeries, parks and playgrounds. An increasing supply of new and affordable homes is crucial to supporting economic recovery and needs inward investment to support and finance this. London in particular must remain competitive on a global scale because it can and does attract investment from around the world and it is this investment which finances the provision of new homes of every tenure and in every price range.
Throughout this period of sustained growth, Berkeley has remained aware that it needs to balance its aims to be successful and sustainable with a social purpose. The challenges of creating exceptional places have given us a unique insight into how a company can create economic value in a way that also creates value for society. We understand that the pursuit of a "shared value" must be central to the way we operate, and we have sought to build partnerships, create jobs and engage better with local communities across all of the business. In addition, through the Berkeley Foundation, we have now committed nearly £3 million to more than 40 charities since 2011 and delivered new jobs and skills training, helping tackle important issues such as homelessness. I want to ensure that Berkeley embraces its role to build trust and empathy with its stakeholders and the wider community and helps create employment opportunities for those who most need it.
I am delighted with the contribution of our workforce to this year's strong performance. Berkeley's success is a direct result of the passion and dedication shown by all of our employees and I would like to take this opportunity to thank them for this. Their loyalty and hard work, across every site and every discipline, is the driving force behind the business and gives the company the stability and expertise which makes it strong.
In terms of the Board, I am pleased to announce that Adrian Li will join the Company as a Non-executive Director with effect from the Annual General Meeting. Adrian is currently the Deputy Chief Executive of The Bank of East Asia Limited. Alan Coppin has announced his intention to step down as a Non-executive Director at the Annual General Meeting on 2nd September 2013, having served on the Board since 2006. I would like to thank Alan for his contribution to the Company and welcome Adrian to the Board.
We have positioned Berkeley with a clear, sustainable long-term plan. I am confident that Berkeley can meet its objectives for delivering returns to shareholders, but mindful of the risks that geopolitical events, regulation, increases in taxation alongside an uncertain future tax policy and even anti-competitive rhetoric can have on the business and the wider housing market."
