Berkeley promises more cash as shareholder returns fall
Shareholder returns at housebuilder Berkeley have fallen by three-quarters over the past six months.
Total shareholder returns for the six months to the end of October amounted to £133m, a marked fall from the £486m returned to shareholders over the same period in 2021.
While share buy-backs rose from £34.7m to £110.5m, dividends and B-share payments slumped from £451.5m to £23.3m.
Shareholder returns at housebuilder Berkeley have fallen by three-quarters over the past six months.
Total shareholder returns for the six months to the end of October amounted to £133m, a marked fall from the £486m returned to shareholders over the same period in 2021.
While share buy-backs rose from £34.7m to £110.5m, dividends and B-share payments slumped from £451.5m to £23.3m.
However, the next half will see greater returns, the company said, as it reaffirmed its commitment to £283m per annum returns up to 30 September 2025. Some £56m of the next £141m due for the six months ending 31 March 2023 has already been returned via share buy-backs.
Pretax profit was largely unchanged, at £284.8m. Berkeley said it was on target to deliver pretax earnings of approximately £600m for the year ending 30 April 2023.
Over the period 2,080 homes were delivered, plus 251 in joint ventures – up from 1,828, plus 395 reported for H1 of 2021. Berkeley said it was now delivering “some 10% of London’s new private and affordable homes”.
Chief executive Rob Perrins said: “We ended the period in a strong position having increased net cash from £269m to £343m and cash due on forward sales from £2.2bn to £2.3bn, while maintaining the estimated gross profit in our unrivalled land holdings above £8bn. Our guidance for the full year is unchanged, as is our shareholder returns policy.”
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Image © Berkeley Group
