Berkeley Group enhances its shareholder returns programme

DividendMax Ltd.

Berkeley Group enhances its shareholder returns programme

Outstanding balance sheet strength - Cash due on forward sales of £3.1 billion, estimated future land bank gross margin of £5.4 billion and net cash of £263 million

On track to deliver pre-tax profits of £2.0 billion in aggregate over three years to 30 April 2018

Dividend return programme enhanced by £0.5 billion, from £13.00 per share to £16.34 per share - first £4.34 already delivered on schedule. Remaining £12 per share to be delivered evenly over next 6 years with first £1 per share to be paid in january 2016

The Berkeley Group Holdings plc ("Berkeley") today announces its unaudited interim results for the six months ended 31 October 2015 together with the enhancement of its shareholder returns programme:


Adjusted profit before tax Up 10.2% to £242.3 million  (2014: £219.8 million)

Ground rent portfolio sale £51.0 million of profit (2014: £85.1 million) from sale of ground rent portfolio

Profit before tax £293.3 million, down from £304.9 million due to impact of ground rent sales

Net cash  £263.1 million (April 2015: £430.9 million)

Net asset value per share Up 7.5% to 1,289 pence (April 2015: 1,199 pence) following payment of £122.9 million (90 pence per share) dividend

Forward sales Increased to £3.1 billion (April 2015: £3.0 billion)

Land bank £5.4 billion of estimated future gross margin (April 2015: £5.3 billion)

across 38,233 plots (April 2015: 37,473 plots)

Market conditions Good underlying demand in a stable operating environment

Continued investment Four schemes started and six sites acquired

*  'Adjusted' profit before tax excludes £51.0 million of profit (2014: £85.1 million) from the sale of ground rent assets.


The Board of Berkeley has reviewed the quantum and profile of the Company's dividend programme that was put in place in 2011 to deliver £13.00 per share to shareholders by 2021. This review took into account a number of factors, including: the Company's financial strength and its visibility over future earnings and cash generation; the current normal market conditions and stable operating environment; and the investment opportunities that continue to present themselves. Following the review, the Board has determined that it intends to enhance the dividend programme by £0.5 billion, increasing it from £13.00 per share  to £16.34 per share.

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