Interim Management Statement

RNS Number : 3154S

Berkeley Group Holdings (The) PLC

08 September 2010

 



The Berkeley Group Holdings plc

Interim Management Statement

Period from 1^st May 2010 to 31^st August 2010

8^th September 2010

At The Berkeley Group Holdings plc's ("Berkeley's") Annual General Meeting ("AGM") being held today, the Chairman, Tony Pidgley, will make the following Interim Management Statement, which covers the period from 1^st May 2010 to 31^st August 2010.

Demand for properties in the period from 1^st May to 31^st August 2010 has been resilient, particularly in London which has a shortage of supply and specific demand from international purchasers who are keen to invest in the Capital.  Outside London, which is reliant on the UK domestic economy to a greater extent, a lack of credit availability and overall consumer confidence is a constraint to achieving an increase in transaction volumes at this point in the market cycle.

In line with our commitment to invest capital into work in progress where market conditions allow, an additional 23 new sales outlets have been opened in the period following planning consents achieved in the last financial year. 

Berkeley has acquired 8 sites in the period, including a site at Horsham for which a planning consent for some 1,000 plots has been obtained.   This continues Berkeley's strategy of acquiring land in the best locations on which we can add value through the development process.  Berkeley's financial strength, which currently includes in excess of £300 million of cash, is a competitive advantage when acquiring new land and securing planning consents which require certainty of delivery and major community investment.

The removal of the South East Plan and a move towards decentralising planning decisions has understandably created a degree of uncertainty in the planning process.  In the longer term we remain confident that planning policies will address the under supply of new homes in London and the South East.   In addition, our industry is currently experiencing an unprecedented number of changes to regulations which will affect the design of new homes.  When coupled with the anticipated reduction in funding for affordable homes, this is likely to result in a lower level of new homes unless the planning burden is reduced.

Berkeley has continued to perform strongly in the period and has increased the value of the land bank and maintained forward sales above £600 million.  This provides the board with confidence that Berkeley can achieve its objective of growing earnings per share by 10% in the current financial year.  

Finally, in the four months ended 31^st August 2010 Berkeley has made payments of £28.2 million to shareholders in acquiring 3.6 million of its own shares into treasury.

END

For further information please contact:

The Berkeley Group Holdings plc                                                             Cardew Group

A W Pidgley                                                                                           Tim Robertson

R C Perrins                                                                                            Catherine Maitland

N G Simpkin                                                                                           T: 0207 930 0777

T: 01932 868555                                                                                   

 

END

 

 

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