Berkeley H1 Profit Climbs On Higher Sales, Price; Lifts 5-year Profit View
(RTTNews.com) - Berkeley Group Holdings Plc.(BKG.L), a builder of new homes, neighborhoods and communities, reported Friday that its first-half pre-tax earnings climbed 35.8 percent to 533.3 million pounds from 392.7 million pounds last year.
Basic earnings per share grew 40.3 percent to 316.6 pence from 225.7 pence last year.
Revenue increased 13.7 percent to 1.61 billion pounds from 1.41 billion pounds a year ago.
The company reported sale of 2,117 homes at an average selling price of 719,000 pounds in the first half, higher than 2,076 homes at an average selling price of 655,000 pounds last year, reflecting the mix of properties sold in the period.
With this good start to the year, Berkeley anticipates delivering 1.5 billion pounds of pre-tax profit in the two years ending April 30, 2019. The outlook for these two years will be approximately 60% weighted towards the current year.
Further, the five year pre-tax profit guidance starting May 1, 2016 and ending April 30, 2021 was updated to 3.3 billion pounds from 3.0 billion pounds expected earlier, assuming the current market conditions continue. The company cited the visibility over earnings which the forward sales provide and the quality of the land bank as the reasons for the revision.
Looking forward to the end of the guidance period, operating margins are expected to moderate towards more normal levels of 17.5% to 19.5% in line with the prevailing market environment.
Separately, Berkeley announced three new appointments to its Board. Rachel Downey is joining as a Non-executive Director. Justin Tibaldi and Paul Vallone are being promoted to the Main Board as Executive Directors.
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