Final Results - Part 2 of 2

Berkeley Group Holdings (The) PLC 24 June 2005 The Berkeley Group Holdings plc Consolidated Profit and Loss Account (Unaudited) Notes Year ended Year ended 30 April 30 April 2005 2004 Unaudited Audited (Restated*) Â£'000 Â£'000 ---------------------------------- -------- ----------- ----------- Turnover including share of joint ventures 2 (a) 1,216,193 1,396,133 Less: share of joint ventures' turnover (145,876) (123,690) ---------------------------------- -------- ----------- ----------- Group turnover 2 (a) 1,070,317 1,272,443 ---------------------------------- -------- ----------- ----------- - Continuing operations 3 824,086 1,048,311 - Discontinued operations 3 246,231 224,132 ---------------------------------- -------- ----------- ----------- Cost of sales (781,429) (965,238) ---------------------------------- -------- ----------- ----------- Gross profit 288,888 307,205 Net operating expenses (89,319) (94,404) ---------------------------------- -------- ----------- ----------- Operating profit - continuing operations 2 (a) 199,569 212,801 ---------------------------------- -------- ----------- ----------- - Continuing operations 3 162,271 187,293 - Discontinued operations 3 37,298 25,508 ---------------------------------- -------- ----------- ----------- Share of operating profit in joint ventures 15,244 21,924 ---------------------------------- -------- ----------- ----------- - Continuing operations 3 14,330 20,778 - Discontinued operations 3 914 1,146 ---------------------------------- -------- ----------- ----------- Total operating profit including share of joint ventures 2 (b) 214,813 234,725 Merger expenses 1 (1,633) - ---------------------------------- -------- ----------- ----------- Profit on ordinary activities before interest and taxation 213,180 234,725 Net interest payable 4 (10,289) (4,958) ---------------------------------- -------- ----------- ----------- Profit on ordinary activities before taxation 202,891 229,767 Taxation on profit on ordinary activities 5 (58,248) (67,747) ---------------------------------- -------- ----------- ----------- Profit on ordinary activities after taxation 144,643 162,020 Dividends - (26,596) ---------------------------------- -------- ----------- ----------- Retained profit for the period 144,643 135,424 ---------------------------------- -------- ----------- ----------- Dividends per Ordinary Share - 22.3p ---------------------------------- -------- ----------- ----------- Earnings per Ordinary Share - basic 6 121.0p 130.4p - diluted 6 120.0p 129.7p ---------------------------------- -------- ----------- ----------- * See note 1 The Berkeley Group Holdings plc Consolidated Balance Sheet (Unaudited) At At 30 April 2005 30 April 2004 Unaudited Audited (Restated*) Â£'000 Â£'000 ------------------------------ ----------- ----------- Fixed assets Tangible assets 8,883 13,996 Joint ventures - Share of gross assets 179,108 216,431 - Share of gross liabilities (108,659) (148,524) ------------------------------ ----------- ----------- 70,449 67,907 ------------------------------ ----------- ----------- 79,332 81,903 ------------------------------ ----------- ----------- Current Assets Stocks 1,053,674 1,066,275 Debtors 155,737 172,301 Cash at bank and in hand 344,948 245,306 ------------------------------ ----------- ----------- 1,554,359 1,483,882 ------------------------------ ----------- ----------- Creditors (amounts falling due within one year) Borrowings (88) (25,120) Other creditors (328,112) (313,476) ------------------------------ ----------- ----------- (328,200) (338,596) ------------------------------ ----------- ----------- Net current assets 1,226,159 1,145,286 ------------------------------ ----------- ----------- Total assets less current liabilities 1,305,491 1,227,189 ------------------------------ ----------- ----------- Creditors (amounts falling due after more than one year) Borrowings (600,000) (75,000) Other creditors (36,009) (9,579) ------------------------------ ----------- ----------- (636,009) (84,579) ------------------------------ ----------- ----------- Net assets 669,482 1,142,610 ------------------------------ ----------- ----------- ------------------------------ ----------- ----------- Capital and reserves Share capital 24,164 30,516 Share premium 264 - Capital redemption reserve 6,091 - Other reserve (961,299) 431,055 Retained profit 1,565,097 652,725 Joint ventures' reserves 34,665 27,814 ------------------------------ ----------- ----------- Equity shareholders' funds 668,982 1,142,110 Equity minority interest 500 500 ------------------------------ ----------- ----------- 669,482 1,142,610 ------------------------------ ----------- ----------- Net assets per Ordinary Share 558p 944p ------------------------------ ----------- ----------- * See note 1 The Berkeley Group Holdings plc Consolidated Cash Flow Statement (Unaudited) Year ended Year ended 30 April 2005 30 April 2004 Unaudited Audited (Restated*) Â£'000 Â£'000 --------------------------------------- ----------- ----------- Net cash inflow from continuing operating activities 289,185 435,959 Dividends from joint ventures 1,564 9,865 Returns on investments and servicing of finance 3,568 (1,704) Taxation (59,754) (62,594) Capital expenditure and financial investment 8,403 (25,642) Acquisitions and disposals (1,633) 6,781 Equity dividends paid (19,676) (25,414) --------------------------------------- ----------- ----------- Net cash inflow before financing 221,657 337,251 Financing (122,015) (149,048) --------------------------------------- ----------- ----------- Increase in cash in the period 99,642 188,203 --------------------------------------- ----------- ----------- Reconciliation of net cash flow to movement in net (debt)/cash --------------------------------------- ----------- ----------- Increase in cash in the period 99,642 188,203 Cash (inflow)/outflow from (increase)/ decrease in debt (499,968) 100,033 --------------------------------------- ----------- ----------- Movement in net (debt)/cash in the period (400,326) 288,236 Opening net (debt)/cash 145,186 (143,050) --------------------------------------- ----------- ----------- Closing net (debt)/cash (255,140) 145,186 --------------------------------------- ----------- ----------- --------------------------------------- ----------- ----------- Reconciliation of operating profit to Year ended Year ended operating cash flows 30 April 2005 30 April 2004 Unaudited Audited (Restated*) Â£'000 Â£'000 --------------------------------------- ----------- ----------- Operating profit 199,569 212,801 Depreciation 2,581 3,085 Profit on sale of tangible fixed assets (1,379) (618) Profit on sale of fixed asset investments - (144) Stocks - decrease 12,601 84,828 Debtors - decrease 21,630 77,131 Investments - decrease - 62,047 Creditors - increase/(decrease) 49,971 (4,762) Non-cash charge in respect of share awards 4,212 1,591 --------------------------------------- ----------- ----------- Net cash inflow from continuing operating activities 289,185 435,959 --------------------------------------- ----------- ----------- * See note 1 The Berkeley Group Holdings plc Consolidated Statement of Total Recognised Gains and Losses Year ended Year ended 30 April 2005 30 April 2004 Unudited Audited (Restated*) Â£'000 Â£'000 --------------------------------------- ----------- ----------- Profit for the financial period 144,643 162,020 Total recognised gains for the period 144,643 162,020 Prior year adjustment (see note 1) (338) --------------------------------------- ----------- ----------- Total gains recognised since last annual report 144,305 --------------------------------------- ----------- ----------- * See note 1 Reconciliation of Movements in Shareholders' Funds Year ended Year ended 30 April 2005 30 April 2004 Unudited Audited (Restated*) Â£'000 Â£'000 --------------------------------------- ----------- ----------- Profit for the period 144,643 162,020 Dividends - (26,596) --------------------------------------- ----------- ----------- Retained earnings 144,643 135,424 Share buy-backs (20,656) (52,363) New shares issued prior to the capital restructure 9,848 7,217 New units issued after the capital restructure 269 - Issue/redemption expenses (2,841) - Redemption of shares (604,153) - Contribution on exercise of share options (4,450) (2,240) Credit in respect of employee share schemes 4,212 1,591 Consideration paid for purchase of own shares held in Employee Share Ownership Trusts - (2,129) --------------------------------------- ----------- ----------- Net additions to equity shareholders' funds (473,128) 87,500 --------------------------------------- ----------- ----------- Opening equity shareholders' funds as previously stated 1,144,532 1,056,156 Prior period adjustment (see note 1) (2,422) (1,546) --------------------------------------- ----------- ----------- Opening equity shareholders' funds as restated 1,142,110 1,054,610 --------------------------------------- ----------- ----------- Closing equity shareholders' funds 668,982 1,142,110 --------------------------------------- ----------- ----------- * See note 1 The Berkeley Group Holdings plc Notes 1. Basis of preparation The unaudited financial information for the year ended 30 April 2005 summarised above and below does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. This information was approved by the Board on 23 June 2005, and has been extracted from the Group's statutory accounts which have not yet been signed, but upon which the auditors are expected to give an unqualified opinion. The abridged financial information relating to the year ended 30 April 2004 is an extract from the statutory accounts, which have been delivered to the Registrar of Companies, and which have been restated as described below. The report of the auditors on these financial statements was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. From 1 May 2004, the Group has adopted UITF Abstracts 17 (revised 2003) and 38 in respect of employee share schemes and Employee Share Ownership Trusts. The cost of awards made under the share schemes is now calculated with reference to the fair value of the award at the date of grant rather than the cost of shares purchased by the Group to satisfy the award. In addition, the cost of shares held by the Group's Employee Share Ownership Trusts, previously shown as an asset in investments in the balance sheet, is now deducted from shareholders' funds. The comparative figures have been restated to reflect the impact of these changes. Retained profit for the year ended 30 April 2004, as published last year, has been reduced by Â£338,000 to reflect the impact of the revision to UITF 17. Shareholders' funds at 1 May 2003 and 1 May 2004 have been reduced by Â£1,546,000 and Â£2,422,000 respectively, to reflect the impact of the revision to UITF 17 and the deduction of the cost of the shares from shareholders' funds. The Group cash flow statement has also been restated to show the relevant cash flows in financing activities rather than capital expenditure and financial investment. Scheme of Arrangement and capital restructure In June 2004, The Berkeley Group plc announced proposals for the return of Â£12 per existing ordinary share to shareholders by way of a capital reorganisation, incorporating a Scheme of Arrangement. Following approval by shareholders in September 2004 and ratification by the Court on 25 October 2004, shareholders, on 26 October 2004, exchanged each existing ordinary share in The Berkeley Group plc for a newly issued Unit (each Unit comprising one new ordinary share of a nominal value of Â£0.05, one 2004 B preference share of a nominal value of Â£5.00, one 2006 B preference share of a nominal value of Â£2.00, one 2008 B preference share of a nominal value of Â£1.60 and one 2010 B preference share of a nominal value of Â£3.21) in The Berkeley Group Holdings plc ('the Company'), thereby introducing the Company as the new parent holding company of The Berkeley Group plc and its subsidiaries. The Company issued the shares comprised in 120,798,270 Units credited as fully paid at the aggregate nominal value of Â£11.86, which was the closing price of an ordinary share in The Berkeley Group plc on 25 October 2004. The Directors intend to return the Â£12 per unit to shareholders by January 2011 with cash payments in respect of the B shares, subject to having sufficient funding and distributable reserves, as follows: Class of B share Expected Record Date Proceeds per Share -------------------------------------------------------------------------- 2004 B Share Redeemed Â£5 2006 B Share 29 December 2006 Â£2 2008 B Share 31 December 2008 Â£2 2010 B Share 31 December 2010 Â£3 -------------------------------------------------------------------------- Total Â£12 -------------------------------------------------------------------------- The return to shareholders has been facilitated by the Court approved reduction of capital that became effective on 28 October 2004. Through this reduction of capital, the nominal amount of each Unit was reduced to Â£0.25 (each Unit comprising one new ordinary share of a nominal value of Â£0.05, one 2004 B preference share of a nominal value of Â£0.05, one 2006 B preference share of a nominal value of Â£0.05, one 2008 B preference share of a nominal value of Â£0.05 and one 2010 B preference share of a nominal value of Â£0.05). This reduction created distributable reserves of Â£1,402 million to facilitate the return of Â£12 per Unit. The Berkeley Group Holdings plc Notes (continued) 1 Basis of preparation (continued) With implementation of the Scheme of Arrangement under section 425 of the Companies Act, the Company acquired 100% of the issued share capital of The Berkeley Group plc. In the opinion of the Directors, the Scheme of Arrangement is a group reconstruction rather than an acquisition, since the shareholders in the Company are the same as the former shareholders in The Berkeley Group plc and the rights of each shareholder, relative to the others, are unchanged and no minority interest in the net assets of the group is altered. Accordingly, the Directors have adopted merger rather than acquisition accounting principles in drawing up these accounts, having regard to the overriding requirement of section 227(6) of the Companies Act 1985 for the accounts to give a true and fair view of the Group's results and financial position. The Directors consider that it is not practicable to quantify the effect of this departure from the Companies Act 1985 requirements. The accounts are presented as if the Scheme of Arrangement had been effective on 1 May 2004, except for the effect of the capital restructure and subsequent reduction of capital which was sanctioned by the Court on 25 October 2004. The consolidated profit and loss account combines the results of The Berkeley Group plc for the year ended 30 April 2005 with those of the Company for the period since its incorporation to 30 April 2005. The comparative figures relate to The Berkeley Group plc as restated for the effect of the Scheme of Arrangement. Year ended Year ended 30 April 2005 30 April 2004 Unudited Audited (Restated*) Â£'000 Â£'000 --------------------------------------- ----------- ----------- 2. Analysis by Activity a) Turnover --------------------------------------- ----------- ----------- Residential housebuilding Group 1,002,769 1,130,162 Joint ventures 144,669 120,977 --------------------------------------- ----------- ----------- 1,147,438 1,251,139 --------------------------------------- ----------- ----------- Commercial property and other activities Group 67,548 142,281 Joint ventures 1,207 2,713 --------------------------------------- ----------- ----------- 68,755 144,994 --------------------------------------- ----------- ----------- 1,216,193 1,396,133 --------------------------------------- ----------- ----------- b) Operating profit Residential housebuilding Group 190,487 198,586 Joint ventures 14,877 19,836 --------------------------------------- ----------- ----------- 205,364 218,422 --------------------------------------- ----------- ----------- Commercial property and other activities Group 9,082 14,215 Joint ventures 367 2,088 --------------------------------------- ----------- ----------- 9,449 16,303 --------------------------------------- ----------- ----------- 214,813 234,725 --------------------------------------- ----------- ----------- All turnover and profit relate to continuing activities of the Group and are derived from activities performed in the United Kingdom. Included in Group residential housebuilding turnover and operating margin is Â£16,139,000 and Â£6,600,000 in respect of land sales (2004: Â£11,426,000 and Â£2,382,000). The Berkeley Group Holdings plc Notes (continued) 3. Discontinued operations Since the year end, the Group has announced the sale of the Crosby Division to Lend Lease for consideration of Â£235,700,000 and the repayment of working capital of Â£15,000,000. Financial Reporting Standard No. 3 (FRS 3) requires that the Crosby Division be treated as discontinued operations for the year ended 30 April 2005, since the sale completes before the earlier of three months after the year end and the date of approval of the audited financial statements. The additional information required in respect of discontinued operations in the financial statements for the year ended 30 April 2005 is as follows: Continuing Discontinued Operations Operations Total Unaudited Unaudited Unaudited Â£'000 Â£'000 Â£'000 --------------------------- ---------- ------------ ----------- Year ended 30 April 2005 Turnover including share of joint ventures 964,464 251,729 1,216,193 Less: share of joint ventures' turnover (140,378) (5,498) (145,876) --------------------------- ---------- ------------ ----------- Group turnover 824,086 246,231 1,070,317 Cost of sales (586,254) (195,175) (781,429) --------------------------- ---------- ------------ ----------- Gross margin 237,832 51,056 288,888 Net operating expenses (75,561) (13,758) (89,319) --------------------------- ---------- ------------ ----------- Operating profit 162,271 37,298 199,569 Share of operating profit of joint ventures 14,330 914 15,244 --------------------------- ---------- ------------ ----------- Total operating profit including share of joint ventures 176,601 38,212 214,813 --------------------------- ---------- ------------ ----------- Year ended 30 April 2004 Turnover including share of joint ventures 1,166,383 229,750 1,396,133 Less: share of joint ventures' turnover (118,072) (5,618) (123,690) --------------------------- ---------- ------------ ----------- Group turnover 1,048,311 224,132 1,272,443 Cost of sales (785,254) (179,984) (965,238) --------------------------- ---------- ------------ ----------- Gross margin 263,057 44,148 307,205 Net operating expenses (75,764) (18,640) (94,404) --------------------------- ---------- ------------ ----------- Operating profit 187,293 25,508 212,801 Share of operating profit of joint ventures 20,778 1,146 21,924 --------------------------- ---------- ------------ ----------- Total operating profit including share of joint ventures 208,071 26,654 234,725 --------------------------- ---------- ------------ ----------- Year ended Year ended 30 April 2005 30 April 2004 Unudited Audited Â£'000 Â£'000 --------------------------------------- ----------- ----------- 4. Net interest payable Interest receivable 11,413 4,770 Interest payable on bank loans and overdrafts (18,376) (6,207) Interest payable - share of joint ventures (3,326) (3,521) --------------------------------------- ----------- ----------- (10,289) (4,958) --------------------------------------- ----------- ----------- Notes (continued) Year ended Year ended 30 April 2005 30 April 2004 Unudited Audited (Restated*) Â£'000 Â£'000 --------------------------------------- ----------- ----------- 5. Taxation Current tax UK corporation tax payable (57,278) (65,040) Share of joint ventures' tax (3,502) (5,184) Adjustments in respect of previous periods 427 481 --------------------------------------- ----------- ----------- (60,353) (69,743) Deferred tax 2,105 1,996 --------------------------------------- ----------- ----------- (58,248) (67,747) --------------------------------------- ----------- ----------- * See note 1 6. Earnings per Ordinary Share Earnings per Ordinary Share is based on the profit after taxation of Â£144,643,000 (2004 restated Â£162,020,000) and the weighted average number of Ordinary Shares in issue during the year of 119,558,439 (2004: 124,261,151). For diluted earnings per Ordinary Share, the weighted average number of Ordinary Shares in issue is adjusted to assume the conversion of all dilutive potential Ordinary Shares. The dilutive potential Ordinary Shares relate to shares granted under employee share schemes where the exercise price is less than the average market price of the Ordinary Shares during the year. The effect of the dilutive potential Ordinary Shares is 990,459 shares (2004: 613,585), which gives a diluted weighted average number of Ordinary Shares of 120,548,898 (2004: 124,874,736). 7. The statutory accounts for the year ended 30 April 2005 will be sent by mail to shareholders in July 2005 and filed in due course with the Registrar of Companies. Copies will be available for inspection at the Company's Registered Office, Berkeley House, 19 Portsmouth Road, Cobham, Surrey KT11 1JG. This information is provided by RNS The company news service from the London Stock Exchange

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