The Berkeley Group Holdings announces its unaudited preliminary results for the year ended April 30, 2016.
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Berkeley has delivered adjusted pre-tax earnings of £479.9 million for the year, an increase of 5.6% on last year.
This is from the sale of 3,776 homes (2015: 3,355) at an average selling price of £515,000 (2015: £575,000), reflecting the mix of properties sold in the year.
Together with a further £51 million of profit from the sale of ground rent assets, this represents total pre-tax earnings of £530.9 million.
"I am pleased to announce pre-tax profits for Berkeley of £530.9 million for the year ended April 30, 2016," said Tony Pidgley, chairman.
"Berkeley remains ungeared with net cash of £107.4 million, cash due over the next three years on forward sales of £3.25 billion and is maintaining its earnings guidance for the three years ending April 30, 2018.
"Following the enhancements to Berkeley's dividend return plan announced in December 2015 which increased the target returns by 2021 to £16.34 per share, from £13.00 per share, the Board has declared a further interim dividend of £1 per share.
"This will be payable on September 15, 2016 to shareholders on the register on August 12, 2016."
After tax, the profit for the year was £404.1 million, from which £259.5 million was distributed to shareholders with the dividend covered 1.6 times.
The remaining profit generated, along with the Group's existing cash balances, funded the £602.1 million net investment in inventories and £99.9 million net investment in joint ventures, ahead of the enhanced profit delivery anticipated over the next two years, resulting in year-end net cash of £107.4 million (2015: £430.9 million).
The company remains on target to deliver pre-tax profits in the region of £2.0 billion over the three year period ending 30 April 2018, underpinned by our £3.25 billion of forward sales.
While sales are down 4% for the year as whole, the market for Berkeley has slowed some 20% in the five months to May 2016 as the EU Referendum approaches, with no new London launches in this period. ■