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Red 50 DMA

Berkeley Group: A residential housebuilder with a high percentage of its developments on brown field land. Established in 1976, the company now includes the Berkeley Homes, St George and St James brands, with important exposure to the high value London property market.
Shares in issue 131.28m (Oct '10)
Currently no dividend (Oct '10)
Forecast PE apr '11 13.2, to apr '12 11.6.

StockMarketWire.com
"House builder, Berkeley group says that it has continued to perform strongly in the four months to the end of August, maintaining forward sales above 600m.

Demand for properties in the period has been resilient, particularly in London which has a shortage of supply.

Outside London, which is reliant on the UK domestic economy to a greater extent, a lack of credit availability and overall consumer confidence is acting as a constraint to achieving an increase in transaction volumes at this point in the market cycle.

The Group says that its financial strength, which currently includes in excess of 300 million of cash, is a competitive advantage when acquiring new land and securing planning consents.

During the period it 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.

The Board is confident that the Group can achieve its objective of growing earnings per share by 10% in the current financial year."

Liberum broker note (08.10.10) - "We remain comfortable as buyers of Berkeley, because of the strong balance sheet, London exposure and hidden value."

StockMarketWire.com
Berkeley Group downgraded to neutral from outperform at Credit Suisse.

Notification of Half Yearly Results
The Berkeley Group Holdings plc will announce its half year results for the six months ended 31 October 2010 on Friday, 3 December 2010.

StockMarketWire.com
Urban regeneration specialist Berkeley Group reported a pre-tax profit of 61.6m for the half-year to end-October, an increase of 18.5% on the prior year.

The improvement was driven principally by an increase in revenue of 15.9% from 290.1m to 336.2m.

Operating margin of 17.4% was at a similar level to the first half of last year, with net finance income of 1.8m (2009: 3m) and joint ventures contributing 1.2m of profit (2009: 1.6m loss).

Basic earnings per share for the six months are 33.5p compared to 28.1p for the equivalent period last year; an increase of 19.2%.

Cash due on Forward Sales was up 21.9% to 790.1m (April 2010: 648.1m).

Total equity attributable to shareholders increased by 16.2m to 874.8m (April 2010: 858.6m) in the period which saw Berkeley acquire 3.6 million shares into treasury at a cost of 28.2m and a further 0.2 million shares acquired by the Employee Benefit Trust.

As a result, net assets per share increased by 31.1p to 667.6p at end- October (April 2010: 636.7p).

StockMarketWire.com
Berkeley Group started with hold rating at Panmure Gordon, 838p target price.

Final Results.

HIGHLIGHTS



Profit before Tax
Up 23.5% to 136.2 million (2010: 110.3 million)

Operating Margin
Up 1% to 18.3% (2010: 17.3%)

Net Asset Value per Share
Up 11.4% to 709.2 pence (April 2010: 636.7 pence)

Share buy backs
Acquisition of 3.8 million shares for 30.0 million at an average price of 785 pence per share.

Net Cash
42.0 million (April 2010: 316.9 million)

Cash due on Forward Sales
Up 25.5% to 813.5 million (April 2010: 648.1 million)

Land Bank
27,026 plots and 2.3 billion of future gross margin - an increase of 13.1% since 30 April 2010

Return on Equity
Pre-tax return on shareholders' equity of 15.3% (2010: 13.3%)




ANNOUNCEMENT OF LONG TERM STRATEGIC PLAN



The Board of Berkeley has undertaken a strategic review, the outcome of which is to propose a long term strategic plan under which the business will operate over the next 10 years and to return approximately 1.7 billion in cash to existing shareholders in a series of dividends payable on or before the following milestones:



Dividend
per share

30 September 2015 4.34
30 September 2018 4.33
30 September 2021 4.33
13.00

Stonking open after extended auction +78p 6.9%

Up another 60 today - so much for boring shares!

Too far, too fast? Results were good, but maybe a little overvalued now.

If you don't mind holding until 2021 - there are always the dividends to consider ! :-))

I actually shorted them on Friday and was stopped out -25, luckily fairly small.

Friday December 2nd, Upmarket London housing developer Berkeley Group will comment on Friday on the health of the housing market and its views on the Government proposals to boost mortgage availability. Berkeley is forecast by analysts to post a rise in half-year revenue and profits when it publishes results. For the full-year, the consensus among analysts is for revenues to rise 15pc and pre-tax profits 22pc.

StockMarketWire.com
House builder Berkeley Group's pre-tax profits jumped by 64.1% to 101.1m in the six months to the end of October.

Revenues were up 20.4% at 404.9m and operating profits soared by 82.8% to 107.1m while after-tax profits rose by 67.4% to 74.0m.

Chairman Tony Pidgley said: "Looking forward, the further increase in forward sales and the strong balance sheet, which remains ungeared, means Berkeley is increasingly well positioned to capitalise on the current market conditions.

"In terms of the housing industry more generally, the recent announcements which are aimed at stimulating the delivery of new homes are welcome.

"On the supply side, the draft National Planning Policy Framework addresses many of the obstacles within the current planning system and, if implemented, will put in place the conditions to allow developers to bring forward new planning applications with the necessary safeguards to ensure this takes place in harmony with the natural environment."

Investec initiates buy on Berkeley Group, target price 1500p.

Final Results

PROFIT BEFORE TAX UP 57.7% FROM £136.2 MILLION TO £214.8 MILLION

PRE-TAX RETURN ON EQUITY INCREASED FROM 15.3% TO 21.2%

VALUE OF LAND BANK UP 12.0% TO £2.58 BILLION OF FUTURE GROSS MARGIN

These seem to be breaking out this morning - at their highest since 2008.

Interim Management Statement

Trading for the period has been in line with the Board's expectations. In addition, the completion of 149 properties at Grosvenor Waterside in the period, out of the 185 remaining properties which had previously been forecast to be delivered over the next three years, has benefitted earnings in the current year which are currently anticipated to be at the top end of analysts' expectations. All these properties were paid for in full at the year end and no additional cash will be generated by the business from the acceleration of these sales.

Sold my holding - been in since since Nov 2011 at 1225p

Interim Management Statement

The Berkeley Group Holdings plc ("Berkeley" or "the Group") today announces its Interim Management Statement in respect of the period from 1 November 2012 to 28 February 2013.

Berkeley remains on course to return £568 million in cash to shareholders by no later than the first milestone date of 30 September 2015 and, as announced on 7 December 2012, the Board has declared an interim dividend of 15 pence per ordinary share which will be paid on 19 April 2013 to shareholders on the register on 22 March 2013. This dividend will contribute approximately £20 million towards the £568 million target and is the first return to shareholders since Berkeley repositioned the business in March 2009 and invested some £1 billion in new land at the right point in the cycle.

Berkeley's operating model places an emphasis on adding value throughout the development cycle whilst recognising the risks of operating in a cyclical market. This requires a collaborative approach to creating places which involves local communities, councils and businesses, and a passion for exceptional design to provide the homes in which our customers want to live.

It is this emphasis which has helped Berkeley secure eight further planning consents since the Half Year including recent resolutions to grant planning on two London schemes, at Hampton House on Albert Embankment and Sovereign Court in Hammersmith. These successes have secured additional value in Berkeley's land bank as well as reducing planning risk and underpinning the Group's ability to deliver against its long term plan subject to market conditions.

In the period Berkeley has also acquired three new sites at Finchley, Mill Hill and Maidenhead. These acquisitions, together with our continued drive to add value through optimisation which is expected to maintain the momentum reported in the first half, give the Board confidence towards achieving its target of 10% growth in the land bank for the full year.

The market for new homes in London and the South East is still characterised by a shortage of supply at all price levels, albeit that this market is affected by the drag on demand caused by restrictions on mortgage availability and increased regulation. In this environment, Berkeley has continued to carefully match its investment in work in progress with forward sales which are now in excess of £1.4 billion, a balance which will remain the key determinant of future growth.

Berkeley is currently ungeared and has a strong land bank in place, factors that give the Board confidence that it will meet expectations for the year ending 30 April 2013 and its long term plan to return £13 per share to shareholders.


END

:-)

Panmure Gordon Sell 1,972.00 1,975.00 1,702.00 1,702.00 Downgrades

Numis Buy 1,972.00 1,975.00 - 2,478.00 Upgrades

Final Results

PERFORMANCE

· Profit before tax up 26.0% to £270.7 million (2012: £214.8 million)
· Operating margin before exceptional item up 1.6% to 20.4% (2012: 18.8%)
· Pre-tax return on shareholders' equity of 22.4% (2012: 21.2%)
· £314.6 million invested in land in the year acquiring a further 3,021 residential plots
· Basic earnings per share increased by 32.2% to 160.0 pence (2012: 121.0 pence)
· Further interim dividend of 59 pence per share payable in September 2013

BALANCE SHEET

· Net cash of £44.7 million (April 2012: net debt of £57.9 million)
· Cash due on forward sales of £1,452.8 million (April 2012: £1,055.7 million)
· Shareholders' equity up £222.6 million to £1,322.4 million (April 2012: £1,099.8 million)
· Net Asset Value per share up 20.2% to 1,009.1 pence (April 2012: 839.3 pence)
· 25,684 plots in land bank (April 2012: 26,021)
· Future anticipated gross margin in land bank up 10.5% to £2,852 million (April 2012: £2,580 million)

Ex divi wed 28th aug (59p)

Interim Management Statement

StockMarketWire.com
House builder Berkeley Group Holdings reported pretax profit up 19.2% to £169.5m in the half-year to end-October. Basic earnings per share increased by 22% to 100p and interim dividend is raised to 90p.

· Operating margin of 20.7% (2012: 21.3%)

· Operating profit includes £29.6 million on disposal of 534 investment properties to M&G Investments

· Pre-tax return on shareholders' equity of 25.0% (2012: 24.5%)

· £278 million invested in land in the period acquiring a further 1,754 residential plots

· Basic earnings per share increased by 22.0% to 100.0 pence (2012: 82.0 pence)

· Interim dividend of 90 pence per share (2012: 15 pence per share) payable in January 2014

BALANCE SHEET

· Cash due on forward sales increased by £293.0 million (20.2%) to £1,745.8 million (April 2013: £1,452.8 million)

· Shareholders' equity up £69.0 million to £1,391.4 million (April 2013: £1,322.4 million)

· Net asset value per share up 5.3% to 1,062 pence (April 2013: 1,009 pence)

· Land holdings comprise 25,060 plots (April 2013: 25,684 plots) and a further 10,000 plots in the future pipeline

· Future anticipated gross margin in the land holdings up 6.8% to £3,047 million (April 2013: £2,852 million)

· Net cash of £78.9 million (April 2013: £44.7 million)

Chairman A. W. Pidgley, said: 'I am delighted to report another period of strong performance. Basic earnings per share have increased by 22.0% to 100.0 pence per share and we have achieved our target of growing our land holdings to over £3 billion earlier than originally guided. This performance maintains the Board's view that Berkeley is on course to meet the first milestone payment of £568 million by September 2015 and to return £1.7 billion in cash to shareholders no later than September 2021.

'The Board has declared a further interim dividend of 90 pence per share (£117.9 million), payable in January 2014, leaving a balance of 270 pence per share (£353.8 million) to be paid in order to meet the first milestone. This now places the Group firmly ahead of its original timetable and on target to reach the first milestone. Subject to prevailing market conditions, the Board intends to maintain a regular distribution of dividends in the period to September 2015.

'The long-term challenge for the country is to deal with the significant housing shortfall which continues to grow. Over the last five years Berkeley has doubled the size of its business, investing over £1.5 billion into land and over £2.5 billion into build, sustaining 16,000 direct and indirect jobs each year and building over 15,000 homes of every tenure in vibrant new places. The Group is now delivering more new homes than immediately prior to the financial crisis in 2008 and is building on every one of its sites which has a viable planning consent and vacant possession. Berkeley has the capacity to invest further, which would create more homes and jobs, but is concerned by the increased uncertainty created by the ongoing debates surrounding the future of property taxation and international buyers.

'In closing, I would like to express my thanks to all the employees of Berkeley for their dedication and hard work. We have positioned Berkeley with a plan to deliver long-term sustainable success and are confident that we can achieve this, whilst remaining mindful of the risks of operating in a cyclical market which is sensitive to the uncertainty of political decision-making and the rhetoric of regulatory change.'

StockMarketWire.com
Barclays Capital has downgraded its recommendation on residential property developer Berkeley Group (LON:BKG) to "underweight" from "equal weight" given its high valuation, relative to peers, and sees better value to be had elsewhere in the housebuilding sector. The broker pointed out that BKG is trading on the highest 2015E PER in the sector at around 12.9x. Analysts also believe the company's significant London exposure, while protecting it from any changes to the governments Help to Buy scheme, means sales and earnings could be impacted by rising interest rates and strengthening sterling. Nevertheless, BarCap has upped its price target to 2,561.5 pence per share (from 2,454.7 pence).

Interim Management Statement

The Berkeley Group Holdings plc ("Berkeley" or "the Group") today announces its Interim Management Statement which covers the period from 1 November 2013 to 28 February 2014.

Berkeley has continued to invest in the delivery of new homes and focus on creating fantastic places. This investment has enabled us to create jobs, employing over 10,000 people on our sites, contribute to local communities and build in excess of 10% of all new affordable homes in London over the last six years. Berkeley is proud of its growing contribution to the UK housing market and this year it anticipates completing some 30% more homes than at the peak of the market in 2007.

Alongside a positive trading environment and a period of wider economic growth, the Government's Help to Buy scheme has increased activity in the property market and so has helped the acceleration of delivery of new homes across the sector. We are working to deliver more, but reiterate the importance of maintaining a stable and predictable regulatory and taxation environment to enable this continued investment.

In respect of trading, sales of new build properties across all of the Berkeley brands have been strong. Cash due on forward sales is now in excess of £1.9 billion (up from £1.75 billion at 31 October 2013) reflecting this continued demand for new homes in London and the South of England. Following payment of the dividend of £117.9 million (90 pence per share) on 17 January 2014, the Group remains ungeared.

Berkeley has now paid £1.64 per share of dividends, equivalent to £215 million, towards the first milestone of £568 million by September 2015. This leaves further dividends of £2.70 per share to be paid by the first milestone date and the Board is satisfied that Berkeley is well placed to achieve this through a series of regular dividends.

As previously stated, Berkeley has the land with implementable planning permissions in place that will enable the Group to achieve the second milestone, equivalent to further dividends of £4.33 per share by September 2018.

The Group has increased its land holdings with the acquisition of five further sites since the half year. Of these, two will be immediately added to our land holdings and three sites included in our future pipeline as they are controlled conditionally, dependent on securing a planning permission and vacant possession.

This activity leaves the Group well-positioned to maintain the estimated future gross margin in its land holdings at £3 billion whilst continuing to deliver sustainable returns on equity. Approximately 86% of the Group's land holdings have an implementable planning permission and all of these sites are in the course of construction, consistent with our previous disclosures in December.

In light of the progress made in the delivery and completion of Berkeley's developments in the period, the Board reiterates its previous guidance that full year earnings are likely to be towards the top of the range of analysts' current expectations.

END

Final Results

OPERATIONAL HIGHLIGHTS

· 3,742 new homes completed in the year, some 30% more than at the peak of the market in 2007
· Consistent delivery of around 10% of all new homes built in London over the last five years
· £353 million invested in nine new sites in the year, sufficient to build a further 2,500 new homes
· All of Berkeley's sites which benefit from an implementable planning consent are in construction

PERFORMANCE

· Basic earnings per share increased by 38.6% to 221.8 pence (2013: 160.0 pence)
· Pre-tax return on equity of 27.5% (2013: 22.4%)
· Net cash of £129.2 million (April 2013: net cash of £44.7 million)
· Net asset value per share up 5.6% to 1,065.6 pence (April 2013: 1,009.1 pence)
· Dividends of 149 pence per share (£195.2 million) paid to shareholders in the year

OUTLOOK

· Further interim dividend of 90 pence per share declared, payable in September 2014
· Cash due on forward sales of £2,274 million (April 2013: £1,453 million)
· 24,006 plots (April 2013: 25,684) and future anticipated gross margin of £3,014 million (April 2013: £2,852 million) in land holdings
· Pipeline of future land comprises 11,000 plots and potential gross margin of £1,500 million to be unlocked over the next five years

Ex-divi wed 20th Aug 2014 (90p)

Interim Management Statement


"The last five years have seen a period of sustained investment in land and construction for Berkeley. This has enabled the Group to deliver some 15,750 new homes in London and the South East of England over the period and support over 21,000 jobs directly and in the supply chain in the last year alone. A strong market in the last financial year, in which cash due on forward sales rose to over £2.2 billion, left Berkeley well positioned at the start of this year to maintain its investment and contribution to the UK's economic recovery.

Since the start of the current financial year, the market has reverted to normal transaction levels from the high point in 2013, providing a stable operating environment. Demand for the right product with good design in the best locations has remained resilient and, reflecting this, forward sales have been maintained at the levels previously reported.

In respect of our land holdings, the Board has targeted further growth in the value of potential gross margin over the course of the current year, driven particularly by unlocking planning and gaining access to the land currently held in the pipeline, which comprised over 11,000 plots and had an attributable potential gross margin of some £1.5 billion at the last year end. Good progress has been made in the period to unlock a number of these sites, and we will provide an update on this at the half year. New planning consents at London Dock in Wapping and a site in Chiswick in the period have further enhanced the quality of the land bank held unconditionally and the acquisition of two new sites in the period on a conditional basis into the pipeline provides further visibility on the availability of land in the future.

The disposal of a portfolio of the Group's ground rent assets for £99.8 million, which completed on 17th June 2014, has contributed to a strong operating cash inflow over the period. The Group currently expects to remain ungeared following the dividend payment of 90 pence per share (£121.7 million) on 26 September 2014.

A further 180 pence per share is payable as dividends in order to meet the first milestone of paying 434 pence per share by September 2015. The Board has previously indicated that it will aim to make regular dividend distributions where conditions permit and is on track to meet this commitment. Looking to the next milestone of 433 pence per share in September 2018, the Board intends to meet a proportion of this through regular dividend payments, where market conditions permit.

With a strong balance sheet and land bank Berkeley is well positioned to continue to invest in the business and deliver returns to shareholders. Earnings this year are anticipated to be in line with current market expectations."

END

.

National Grid and Berkeley Group launch new property Joint Venture
National Grid plc ("National Grid") and The Berkeley Group Holdings plc ("Berkeley") have today launched a new joint venture, to be named St William Homes LLP ("St William"). This will create major residential and mixed-use developments across London and the South East.

National Grid (through National Grid Property Holdings Limited) has a significant portfolio of surplus brownfield land which it is committed to releasing for development. The launch of St William is intended to bring together land from National Grid's portfolio, initially from across the Greater London area, and combine this with Berkeley's development expertise.

The acquisition of sites by the joint venture will be conditional upon their unencumbered release for development and the receipt of necessary planning permissions. None of the sites is expected to be income generating when acquired by the joint venture. St William aims to commence development activity on its first site in 2016, with the first homes being delivered in 2017.

National Grid and Berkeley will become shareholders of St William, each owning 50% of the equity through SPVs. Funding will be through a combination of shareholder equity and bank funding at an equity to debt ratio of 50:50. The equity investment for each shareholder will be initially capped at £175 million. When combined with bank debt, this will result in the joint venture vehicle having available funding of up to £700 million. These funds will be drawn down to match the working capital requirements of the joint venture as they fall due. Sufficient working capital will be retained in the business to fund ongoing activity, with surplus funds returned to National Grid and Berkeley as agreed between them.

Rob Perrins, Managing Director of Berkeley, said:
"This is good news for house-building. St William will take these redundant sites and turn them into new communities. I am delighted to be working with a partner like National Grid which shares our values and has such a strong pipeline of land and assets."

Excellent news.

I wonder if Boris had anyone to do with pushing this one along?

First off, he would know that NG owned the brownfield land. Next he merely needs to shove NG towards a big developer with encouraging noises concerning the granting of planning permission. Berkely definitely fit that bill. Easy peasy, lemon squeasy.

But surely these big firms are well capable of doing all of this by themselves?

But Boris has also been harping on about this kind of thing for ages now.

Interim Management Statement

Period from 1 November 2014 to 28 February 2015

20 March 2015

The Berkeley Group Holdings plc ("Berkeley" or "the Group") today announces its Interim Management Statement which covers the period from 1 November 2014 to 28 February 2015.

The delivery of new housing is central to many debates in advance of the General Election, and there is an acknowledgement across the board that there is an undersupply of new housing. Berkeley is in construction on 64 sites across London and the South of England, employing some 12,000 people on these sites every day. All of our sites that have an implementable planning consent are in construction. We continue to build some 10% of London's affordable housing and are focused on creating great places where our customers can enjoy a good quality of life now and in the future.

Policies adopted by the Government in power after the Election need to continue to encourage the investment necessary to fund the delivery of new homes and places, and a stable operating environment in terms of regulation, taxation and planning is crucial to this.

With the return to normal trading conditions over the course of this financial year from a high point in 2013, we continue to see good demand for new homes in London and the South of England. The strength of Berkeley's balance sheet continues to be supported by cash due over the next three years on forward sales which remains at the level reported at the half year. The Group is currently ungeared, with some £400 million of net cash following the payment of £122 million of dividends in January 2015.

Under the Group's long-term scheme to return £13 per share to shareholders by 2021, a further 90 pence per share is payable in order to meet the first milestone under this scheme of paying £4.34 per share by September 2015. Berkeley reiterates its current intention to meet a proportion of the next milestone of £4.33 per share by September 2018 through regular dividends, with the quantum and timing of such dividends being subject to prevailing market conditions, and to use any surplus capital generated to reinvest in the business or fund further dividend payments or share buybacks if appropriate.

Berkeley has continued to make good progress on its land holdings in the period. One new site in Reading has been acquired unconditionally by St Edward and a detailed planning consent has been secured on two pipeline sites at Hornsey and Kingston which are now unconditional and have been delivered into the land holdings. We have secured a further 7 new consents on our existing land holdings, all of which enhance our capacity to deliver more homes in the future. Following the announcement on 7 November 2014 of the launch of St William, a new joint venture with National Grid, we continue to work on unlocking the first ten sites.

With the progress made so far this year, the Board reiterates its previous guidance on full year earnings for the next three years to 30 April 2015, 2016 and 2017.

In terms of Board appointments, and further to previous announcements, Berkeley is now pleased to confirm that Richard Stearn will re-join the Group as Finance Director on 13 April 2015.

END

ExecLine ( November Posting )
Sure Co will eventually make use of their assets, but often as not the Execs are looking at a self-serving time-frame and manageing their Bonus/Pension,etc. Rarely will they look at the whole-company and say "what else" -
Boris, on the other hand, is excited by Good News, and this needs to fit his schedule - he can shout about Deals done some months ago, unless he was there cutting the ribbon ( as it were).
I think Boris needed good news - and someone mentioned NG - the rest is History.
( I wonder how many advisors benefited from this deal "prior" - that would be interesting...)

Jefferies International lifts Berkeley Group Holdings to hold from underperform, target raised from 1839p to 2681p

RBC note on friday:
"Help to Buy – The scheme was introduced in 2013 and successfully reignited the housing market. Although all political parties were said to be in favour of getting more FTBs onto the housing ladder, there was some uncertainty as funding is in place for 2015 but not beyond making it easy to scrap or introduce a different scheme. H2B makes up between 40-50 percent of sales at Barratt Development, Persimmon and Taylor Wimpey.
National Planning Policy Framework was introduced in 2012, with an emphasis on releasing both public and private land for development. We believe that planning approvals have picked up as a consequence. The local planning authorities are obliged to demonstrate a five-year supply of deliverable sites for housing with an additional 5% buffer to increase choice and competition. Planning typically slows down during an election period. The removal of the electoral uncertainty and any potential reforms around planning should be viewed positively.
Labour’s Mansion Tax – In our opinion, Berkeley Group was most at risk to an introduction of a mansion tax and any schemes to deter foreign buyers. Berkeley Group sells approximately 30% of its homes to foreign buyers, and the sales of homes over £2m represent 15% of its revenues. This compares to Barratt Development (with the second-largest exposure to London) with a 1% exposure to completions within the mansion tax bracket.
The outcome of the election is positive for the Housebuilders. The Housebuilders have underperformed going into the election. We believe that the removal of any major political uncertainty should lead to a catch-up. We believe that Berkeley Group, which has underperformed the Housebuilding sector is the largest beneficiary of the electoral outcome. The sector is trading on EV/IC/ROCE/WACC of 1.1x 2015E and 0.9x 2016E and yielding 6% on average."

StockMarketWire.com
Home-builder Berkeley Group posts pre-tax profits of £539.7m for the year ended 30 April - up from £380.0m last time.

Chairman Tony Pidgley said the result underlined the benefit of operating the right strategy consistently through the cycle.

Revenue rose to £2,120.0m (2014: £1,620.6m) included £2,020.2m of revenue from operations (2014: £1,620.6m) and £99.8m from the sale of a portfolio of ground rent assets (2014: £nil). The £2,020.2 million of revenue from operations included £1,936.2 million of residential revenue (2014: £1,605.0 million), £12.3 million from land sales on 3 sites (2014: £nil) and £71.7 million of commercial revenue (2014: £15.6 million). 3,355 new homes (2014: 3,742) were sold across London and the South of England at an average selling price of £575,000 (2014: £423,000). The increase in average selling price reflects first completions at Ebury Square, Riverlight, Fulham Reach and One Tower Bridge, all London schemes acquired in 2009/10.

The year ended 30 April 2014 included the disposal of 534 properties from Berkeley's rental fund to M&G Investments at an average selling price of £197,000 and the sale of two student developments. Revenue of £71.7 million from commercial activities (2014: £15.6 million) included the sale of some 130,000 sqft of office, retail and leisure space across a number of the Group's developments including Fulham Reach in Hammersmith, Langham Square in Putney and Royal Worcester as well as a 90,000 sqft hotel at Goodmans Fields in Central London. The £15.6 million of revenue last year was mainly from the sale of retail space on developments including Marine Wharf in Deptford, Goodmans Fields in Aldgate, Fulham Reach in Hammersmith and Imperial Wharf in Fulham. During the year, the group sold a portfolio of approximately 10,000 ground rent leases across some 60 sites for proceeds of £99.8 million and a gross profit of £85.1 million. Income and expenses associated with this sale have been recognised in the income statement through revenue and gross profit. The adjusted gross margin percentage, excluding profit from the sale of ground rent assets, has been broadly stable at 31.3% (2014: 31.4%), and reflects the mix of homes sold in the period.

Overheads of £192.7 million (2014: £134.1 million) included a charge of £47.0 million (2014: £nil) in respect of the Company's decision to settle the tax and national insurance liabilities arising on the vesting of options for participants in Part B of the 2009 LTIP scheme on 15 April 2015, in lieu of issuing shares to this value, and the intention to do the same in respect of options vesting on 15 April 2016.

Of this £47.0 million, £33.5 million is in respect of prior periods and £13.5 million in respect of the year ended 30 April 2015.

Pidgley said: "By maintaining our financial discipline Berkeley can apply its unique operating model to develop sites which are complex and where others may perceive that the risk is too great, and in doing so, we unlock land for new homes that would not otherwise come forward.

"Berkeley accepts this additional operational risk which is managed carefully and intensively to create sustainable added value returns.

"Berkeley is delivering some 10% of all new homes in London and 10% of the capital's affordable homes across our 74 sites. This creates economic value of £1.4 billion and sustains some 12,000 jobs. In addition, we remain committed to increase site-based apprenticeships and training to help address the skills shortage which our industry faces.

"We are acutely aware of the importance to our society of all forms of tenure for new housing and welcome the vision of Government, the Greater London Authority and local councils to increase the number of new homes built. For Berkeley it is equally important to ensure that we are market leaders in terms of the quality of the places and homes we create.

"We welcome the stability in Central Government following the General Election and the commitment to increase housing supply, but political uncertainty remains with the London Mayoral Election and referendum on Britain's relationship with Europe on the horizon. Berkeley is a supporter of the UK remaining in Europe as this is the best way for London to remain a world city. There is no doubt, however, that for business to thrive, we must not be bound by over-regulation, be this from our own government or from Europe."

Barclays Capital retains equal weight on Berkeley Group Holdings, target raised from 2581.2p to 3713.5p

Interim Management Statement

StockMarketWire.com
Berkeley posts adjusted pre-tax profits of £242.3m for the six months to the end of October - up 10.2% on last time - and declared a further interim dividend of 100 pence per share, payable on 22 January.

Pre-tax profits were £293.2m - down from £304.9m last time due to the impact of ground rent sales.

Berkeley says it remains ungeared with £263.1 million of net cash and cash due on forward sales over the next three years of £3.1 billion and is on track to meet its three year earnings guidance.

Chairman Tony Pidgley said: "With the strength of our recent performance and the visibility over future profitability and cash generation from our land bank and forward sales, I am delighted to confirm that we have today set out proposals to increase Berkeley's 2021 dividend return target from £13 per share to £16.34 per share. With £4.34 per share having already been paid, the remaining £12 per share is planned to be paid in annual dividends of £2 per share over the next six years. This gives a clear and steady dividend return plan for the next six years whilst also allowing for further investment in the business."

The group reports a good period of trading in the first six months of the year with adjusted pre-tax earnings coming from from the sale of 2,091 homes at an average selling price of £506,000. Together with a further £51.0 million of profit from the sale of ground rent assets, this represents total pre-tax earnings of £293.3 million.

UP 7+%

Credit Suisse today reaffirms its neutral investment rating on Berkeley Group Holdings (The) PLC (LON:BKG) and raised its price target to 3101p (from 2814p).

From the FT today:
"Hedge fund managers are taking short positions against the biggest listed provider of luxury London homes in a bet that weakening emerging markets will put the once buoyant sector into reverse. A small group of funds are targeting the shares of Berkeley Group, the main listed proxy for new high-end London property, amid signs that Asian and Russian buyers are deserting the market.
Odey Asset Management, BlueMountain Capital Management and Anchorage Capital took short positions against the FTSE 100 builder in January, worth 2.2 per cent of its share capital, according to data disclosed to the Financial Conduct Authority.
The short positions run against analysts’ consensus that Berkeley is well positioned to continue growing — and indicate the hedge funds believe pricing and transaction levels for luxury London homes have further to fall."

Jefferies response to the above:
"Perhaps the box office hit 'The 'Big Short' is spurring investors to short Berkeley group in what some perceive as an overheated London housing market. We would not short Berkeley Group as its investment case is based on strong foundations, solid ground and physical properties rather than intangible synthetic mortgage products. We still believe cash is king and Berkeley will meet its promises to return cash to shareholders; go long not short.
Press reports that several investors are shorting Berkeley Group It appears to us that some investors are worried about over heating in certain 'high end' pockets of the London housing market and are using Berkeley as a proxy to bet against this market.
In our view Berkeley is the wrong vehicle: Much like in 'The Big Short' those initially wanting to bet against the US housing market did not have a vehicle to go short against, so they had to create one, however we do not believe that Berkeley Group is the appropriate vehicle. With ASPs of £550,000 this year and £650,000 next Berkeley hardly, in our view, provides a playground in which the rich and famous play at property developing and speculating. Mention trophy assets to Mr Pidgley and he is likely to explain in words that will leave no room for ambiguity that he does not invest in trophy assets. Mr Pidgley also has, in our view, a rather enviable track record in calling the London housing market.
Help to Buy London: Interestingly the evening papers yesterday (Evening Standard - West End Final) ran with the headline 'Renters rush for Help to Buy Loans', suggesting that 15,000 first time buyers have applied for the new scheme in the first 7 days since its launch. Equity investors will of course be aware that Berkeley is the natural beneficiary here. We have a shortage of homes across London, over the last 20 years production has averaged less than 20,000 homes a year, compared to household population growth of 50,000 pa. Over the next 10 years the population in London is expected to grow by 1 million and yet to the total planning pipeline for new homes (even if there was sufficient labour to build these homes) is around 240,000.
Help to Rent London: The capital is crying our for rental properties and if Berkeley's overseas investor demand were to wane we know of around 20 funds raising but struggling to invest money in the fast growing private rented market.
The £175m question: Let us not forget that Mr Perrins and Mr Pidgley are seeking at their upcoming EGM to adjust their LTIP, to limit their payout to £175m each should they return the £16.34p per share to investors. If the London market does slow, we are sure they reduce or stop buying land, so cash generation remains strong and dividends are very likely, in our view, to get paid. With a yield of 6.4% we see attractions at these levels. Leave (most of) the rest of the sector out of this Quite how concerns over high end London should impact the national and 'non-London' regional listed housebuilders escapes us. We are not aware of any 'perceived' bubbles outside of London and the South East we doubt their (Help to Buy aided) returns are under threat. However one listed London housebuilder (Telford Homes TEF LN, N/R) seems to have been neglected by the shorting parties, shouldn't they short that London housebuilder as well?
Valuation: At 3129p Berkeley trades on a CY2016 P/B of 2.15x and offers a yield of 6.4%. Our 4650p PT is based on the simple average of a P/B multiple of 1.75x and a PER of 14x applied to our CY2016 estimates plus dividend probability weighted across our Neutral Case (50%), Upside Case (45%) and Downside Case (5%). Risks: Berkeley's fortunes are linked to the underlying UK housing market significant reductions in UK house prices, mortgage availability or material changes to the supply chain may lead us to reduce our estimates.

down £5.00 or 14% in just a day or two ...... pretty shitty if you're a holder!

Nice little buy by BlackRock, Inc..

See RNS

.

The number of British property funds suspended following the country's vote to leave the EU doubled to six on Wednesday, leaving 15 billion pounds ($19.4 billion) frozen in the biggest seizing up of investment funds since the 2008 financial crisis.

The funds pulled down the shutters after a wave of investors asked for their money back amid speculation about a possible drop in commercial property prices in reaction to the result of the June 23 referendum.

That in turn has raised concerns about the outlook for the broader financial system, given the risk of investors bailing out of other asset classes in a panic and of lenders to the sector such as banks suffering fresh balance sheet stress.

Henderson Global Investors, part of Henderson Group , said on Wednesday it had temporarily suspended trading in its 3.9 billion pound UK Property PAIF and PAIF feeder funds due to "exceptional liquidity pressures" given uncertainty after the Brexit vote and the other suspensions.

It was followed within the hour by Columbia Threadneedle, part of the Ameriprise Group, which said it had suspended trading in its Threadneedle UK Property Fund.

Canada Life said it had also suspended its Canlife Property and Canlife UK property funds, describing this as a deferral of requests to withdraw investments. "The deferral can be for up to six months, enabling the funds to ensure property values reflect market conditions," it said in a statement.

They joined rival funds managed by M&G Investments, Aviva Investors and Standard Life Investments which suspended trading on Monday and Tuesday.

"Over half of the property fund sector is now on ice, and will remain so until managers raise enough cash to meet redemptions. To do that they need to sell properties, and as any homeowner knows, that is not a quick or painless procedure," said Laith Khalaf, senior analyst at fund supermarket Hargreaves Lansdown.

"These funds are therefore likely to be closed for weeks and months rather than simply a matter of days," he wrote in a note to clients.

Britain's Financial Ombudsman Service said it had begun to receive calls from retail investors worried about the closures and the potential hit to their savings. "Although the decision to suspend redemptions was expected, the extent of the suspensions by the three funds so far is quite troubling," a spokeswoman said shortly before Wednesday's fund announcements.

Keenan Vyas, Director in the Real Estate Advisory Group at Duff & Phelps in London, said the consequences could be profound.

Deutsche Bank today reaffirms its buy investment rating on Berkeley Group Holdings (The) PLC (LON:BKG) and cut its price target to 3829p (from 3981p).

Did I read BKG is likely to fall-out of the FTSE 100 - or is this another Post-Brexit scare story? . . . . although it's possible some other Stocks are to enter, due to their recent rise, perhaps.... that might be the "push-factor"
Still, with a Yield of nearly 7.5% - , this is still a "Keeper" -IMHO.
EDIT ( 28Nov2016)- sp 2420p so maybe a tiny slippage...

StockMarketWire.com
Berkeley Group Holdings is re-iterating its guidance for the delivery of £2.0 billion of pre-tax profit over the three year period ending on 30 April 2018, having delivered the first £0.5 billion of this in the year ended 30 April 2016.

Shareholders at today's annual general meeting will be told that Berkeley entered 2016/17 with record cash due on forward sales of £3.25 billion and future estimated land bank gross margin of £6.15 billion, respectively. This is a consequence of Berkeley operating its added value strategy which manages risk through the cycle.

The update will say: "In particular, this involves selling properties early in the development cycle where possible and ensuring land with implementable planning consent is in place to underpin production.

The forward sales provide good visibility over the next two years and Berkeley re-iterates its guidance for the delivery of £2.0 billion of pre-tax profit over the three year period ending on 30 April 2018, having delivered the first £0.5 billion of this in the year ended 30 April 2016.

"This visibility of cash flow and earnings also underpins the Company's dividend plan, of which the next £1.00 interim dividend per share is payable to shareholders on 15 September 2016 (£137 million), bringing the total returns paid to shareholders since 2011 to £6.34, with a further £10 per share to be paid evenly over the remaining 5 years to September 2021.

"Following the dividend payment and taking into account the £20 million spent on acquiring the Company's shares on 24 June, Berkeley expects to remain ungeared at the 31 October 2016 half year, with the actual level of cash dependent on the extent and timing of land and build investment.

"Berkeley reported in its full year results in June that reservations were some 20% lower in the first five calendar months of the year, compared to the same period in 2015, as customers adjusted to higher property taxes and the uncertainty surrounding the UK Referendum, with Berkeley deferring the release of new product to the market.

"After an hiatus either side of the Referendum, the market in August, traditionally a quiet month, has returned to the relative levels reported for the first five months of the year; approximately 20% down on August 2015, reflecting the lower levels of available product, as well as the broader market conditions.

"Importantly, throughout 2016, site visitor numbers and enquiries have been at similar levels to the same period last year demonstrating the strength of underlying demand, although customers are taking longer to commit. Pricing has remained resilient and above business plan levels with reservation cancellation rates at normal levels, following a temporary and expected increase after the UK Referendum result

"The focus for Berkeley is on delivering the high quality homes and places for our customers during this financial year and 2017/18, whilst closely matching its capital investment into new phases and developments, which are for delivery from 2018/19 onwards, to the market demand, as it has always done."

Berkeley says it has been selective in the land market, acquiring just two sites in the period, both unconditionally, with planning advanced on a number of existing sites.

"What is increasingly clear is that Government policy, which has been helpful outside London, has had a negative effect on the capital. Transaction taxes are now too high and this is restricting both mobility in the second hand market and the pace of supply and delivery of new homes in London and the South East.

"There is also a tension between the national policy on Starter Homes and the London Mayor's ambition to build more affordable housing, while the very high rates of the Community Infrastructure Levy adopted by local authorities now pose a significant threat to development viability.

"While these challenges persist, and the barriers to entry for small builders remain high, London will fall well short of its targets for new homes. This is not just a problem for business and ordinary people in the capital but for the country as a whole. London is the engine of our national economy and the principal driver of fiscal revenues. So this is not just a question of housing Londoners - important though that is. It poses a risk to deficit reduction and the prosperity of the whole country.

"With its strong balance sheet, forward sales, high quality land bank and leading brand and customer service, Berkeley is well positioned to deliver its earnings and dividend guidance and optimise shareholder returns in the current market conditions, whilst retaining sufficient capital to be flexible should suitable new investment opportunities arise."

StockMarketWire.com
Berkeley Group posts pre-tax profits of £392.7 million for the six months to the end of October - up 33.9% on last time.

This is from the sale of 2,076 homes (2015: 2,091) at an average selling price of £655,000 (2015: £506,000), reflecting the mix of properties sold in the year.

TYhe group says: "Having delivered pre-tax profits of £0.5 billion for the year ended 30 April 2016, these results mean that the Company remains firmly on target to deliver pre-tax profits of £2.0 billion over the three year period ending 30 April 2018.

"The remaining 18 month period is underpinned by forward sales. In total, Berkeley has £2.9 billion of cash on exchanged sales contracts which is due over the next three years. As always, the scale of the regeneration schemes from which we expect to generate the remaining earnings makes the delivery of profit in specific annual periods sensitive to timing and we prioritise quality ahead of individual period financial targets. The strength of this position gives Berkeley confidence to announce a new five year target to deliver at least £3.0 billion of pre-tax profits in the five years beginning 1 May 2016.

"Excluding an hiatus around Brexit, reservations for the six months remain in line with the beginning of the calendar year and are approximately 20% down on the same period last year as a result of the market adjusting to increased stamp duty and the economic uncertainty arising from the EU Referendum result. The underlying market has begun to adjust to these events and Berkeley plans to launch new product in the New Year which will be delivered in financial years beyond the period to April 2018."

Highlights:
- Net asset value per share - up 7.9% to 1,418 pence (April 2016: 1,314 pence)

- Forward sales - £2.90 billion (April 2016: £3.25 billion)

- Land bank - £5.9 billion of estimated future gross margin (April 2016: £6.1 billion) across 42,125 plots (April 2016: 42,858 plots)

- Market conditions - Excluding an hiatus around Brexit, reservations are 20% down on the same period last year, as a result of the market adjusting to increased stamp duty and the economic uncertainty arising from the result of the EU Referendum

- People - Over 15,000 people working across our sites, an increase of some 8.7% since April 2016, with 603 apprenticeships in the six months.

Numis today upgrades its investment rating on Berkeley Group Holdings (The) PLC (LON:BKG) to buy (from add) and left its price target at 3844p.

Deutsche Bank today reaffirms its buy investment rating on Berkeley Group Holdings (The) PLC (LON:BKG) and cut its price target to 3599p (from 3876p).

StockMarketWire.com
Berkeley Group's underlying reservations in the seven months since the immediate Brexit referendum effect were down 16% but the last two months were ahead of last year.

It said pre-tax profits for the year ended 30 April were expected to be at the top end of analysts' expectations, with the actual outturn dependent upon completion timing on Berkeley's larger developments.

A similar level of profitability was anticipated for the year ending 30 April 2018.

The group said the housing market in London and the South East had now stabilised and enquiry levels remained robust, cancellation rates were at normal levels and pricing continued to be resilient and above business plan levels.

It said: "The reduction in reservations is across all price points and reflects the ongoing impact of both Brexit uncertainty and the changes in recent years to SDLT and mortgage interest deductibility.

"This has been partly offset by the continued availability of mortgage finance at low interest rates, favourable currency exchange rates and the quality of Berkeley's well-presented and well-located homes.

"When coupled with the planning environment and increased demands from the combination of affordable housing, CIL, Section 106 obligations and review mechanisms, this has resulted in new starts in London falling by some 30%."

Berkeley said it was concerned by this under-supply and the knock-on effect it had on the provision of housing of all tenures which, if not addressed, represented a threat to London remaining the inclusive and open global city which was so important to London and the UK's growth and prosperity.

It added: "We therefore welcome the Government's White Paper and the Mayor's continued focus on housing but note that these will take time to effect change, given the competing priorities."

Berkeley said it was uniquely placed to maintain its high levels of production in London and the South East.

StockMarketWire.com
Berkeley continued to trade in line with management's expectations in the four months from 1 May, with sales prices achieved remaining above business plan levels, shareholders at the annual general meeting today will be told.

An update at the meeting will say: "This, coupled with the group's strong forward sales position and unrivalled land bank, provides the Board with the confidence to reaffirm its guidance that Berkeley is on track to deliver at least £3.0 billion of pre-tax profit in the five years ending 30 April 2021, with profits for the current year anticipated to be at least as strong as 2016/17.

"While Berkeley is in excellent shape, the London market continues to be adversely impacted by both, uncertainty around the terms and implications of Brexit and, the changes in recent years to SDLT and mortgage interest deductibility.

"This has been partly offset by good availability of mortgage finance at low interest rates, favourable currency exchange rates and the quality of Berkeley's well-presented and well-located homes.

On the supply side, the planning environment remains challenging with the multiple requirements of Affordable Housing, CIL and Section 106 requirements, still yet to reflect the current market conditions. As a consequence, new construction starts in London remain some 30% lower than 2015.

"With cash balances forecast to be higher at the half year than at the start of the year, the visibility of earnings and financial strength of the Group underpin Berkeley's Shareholder Returns Programme, under which in excess of £2.2 billion (£16.34 per share) is being returned through a combination of dividends and share buy-backs by 2021 on a six-monthly basis.

"The returns initially equated to £2 per annum but this has increased to £2.04 per annum following share buy-backs undertaken since January 2017.

"As announced on 17 August 2017 a dividend of £70.4 million, or 51.76 pence per share will be paid to shareholders on 15 September 2017 with the remainder of the £138.8 million of the return for the 6 months ending 30 September 2017 having been satisfied through share buy-backs of £68.5 million.

"The Company also announced that the next six-monthly return of £138.9 million will be made by 31 March 2018, with the amount to be paid as dividend to be announced in February 2018, taking account of any share buy-backs in the intervening period. Share buy-backs will be undertaken to the extent the Board believes these are in the best interests of all shareholders and not only when the shares are materially under-valued.

"In total, by 30 September 2017, Berkeley will have returned £8.34 of the £16.34 target.

"With its strong balance sheet, forward sales, high quality land bank and leading brand and customer service, Berkeley is well positioned to deliver its earnings guidance and optimise shareholder returns in the current market conditions, whilst retaining sufficient capital to be flexible should suitable new investment opportunities arise."

Dir selling is a "worry" but that's what we should expect as sp rises and Misses wants a fur coat ( sorry Carribean Holiday ).... There are few days they can sell and sp seems to be holding, possibly due to further cash distribution promised.
All talk of Affordable Homes MUST exclude London and major cities.... land is at a premium and no-one want vagabonds/chancers in their neighbourhood..... So, I'm guessing there will be more "New Towns" carved out of sleepy hamlets ( Poor souls ), to achieve anything like what is promised. BKG isn't really in that Market, so I guess they will continue with what they do . . .. although I did read they had plans to convert 2U2D properties in inner-cities..... but this may come to little more than "gentrification" with more high prices.
EDIT(8Dec2017)-sp up 8% after "v.good results" - Those followed Dir-Sells must weep. Has been a good Invest. =One of v.few!

StockMarketWire.com
Berkeley Group posts strong first half results with pre-tax profits up 35.8% at £533.3m.

The group has increased its five year pre-tax profit guidance starting 1 May 2016 to £3.3bn from £3.0bn.

Revenues of £1,607.7m for the six months to the end of October were up by 13.7% from a year ago.

The group said the 2017/18 full year results would represent a peak for Berkeley, before returning to more normal returns in 2018-19 and guidance of £1.5bn of pre-tax profit for these two years would be approximately 60% weighted towards the current year.

Berkeley's objective is to be London's leading place-maker, balancing strong operational performance with a desire to produce homes of a high quality in fantastic places for all Londoners, playing a key role in delivering the 300,000 new homes this country needs each year.
The group said operational highlights included:
- 2,117 homes delivered - includes more than 10% of London's new private and affordable homes

- £300 million of subsidies provided to deliver affordable housing and committed to wider community and infrastructure benefits in the period

- Over 12,000 people working across its sites, including over 850 apprenticeships in the six months

- The Berkeley Foundation has added three new strategic partners to its four enduring partnerships, with over £12 million committed to more than 100 charities since the Foundation's inception in 2011

Chairman Tony Pidgley said the results reflected Berkeley's disciplined execution of its unique operating model which places product quality and financial strength at its heart, allowing for investment at the right time in the cycle.

Pidgley said: 'Most major development opportunities today involve complex brownfield sites that require a huge amount of time, expertise and capital to bring them forward and a commitment on all sides to share the risks and rewards, often over one or more decades.

'Berkeley has the requisite expertise and capital to undertake these complex developments that carry high operational risk, which others are usually not willing or able to take on.

'It is from this foundation that we can create beautiful, sustainable places where people love to live.

'While the political context for housebuilding is turbulent, where there is stability, the potential for growth and delivery remains strong.

'The London Mayor, Sadiq Khan, has set out his priorities very clearly.

'We support the increased target in the draft London Plan of 66,000 new homes a year.

'In our experience, the Mayor is open for business and prepared to fast-track sites that achieve the threshold of 35% affordable housing.

'We are also pleased with progress in our newest business, St Joseph, which acquired two sites in the period.

'The new West Midlands Mayor and Birmingham City Council are showing real leadership and a willingness to make decisions and enable developers to get on with building more good homes.

'We welcome the focus on housing in last month's Budget; particularly the help for small developers and measures to get more land into development.

'It was good to see action on Stamp Duty in respect of First Time Buyers.

'However, other changes to SDLT and mortgage interest deductibility in recent years remain a constraint on transaction levels and social mobility.

'This is felt most keenly in London where all housing transactions are down 18% since last year and new starts remain more than 30% down on 2015.'

StockMarketWire.com
High-end housebuilder Berkeley Group reaffirmed its full-year guidance, but continued to express caution over the London housing market amid concerns about the impact of Brexit.

Berkeley reaffirmed its guidance to deliver at least £3.375bn of pre-tax profits in the five years from 1 May 2016 to 30 April 2021, with at least £1.575bn pre-tax profit to be delivered in the two years ending 30 April 2019.

The housebuilder continued, however, to express cautions over its key market in London, which remains constrained by high transaction costs, restrictive income multiple limits on mortgage borrowing and prevailing economic uncertainty, accentuated by Brexit.

Berkeley said it expects that net cash at the half year would be above the year-end position of £687.3m.

Add:

As announced on 16 August 2018 a dividend of £44.0 million, or 33.30 pence per share, will be paid to shareholders on 14 September 2018 with the remainder of the £139.2 million return for the six months ending 30 September 2018 having already been satisfied through share buy-backs of £95.2 million. The Company also announced that the next six-monthly return of £139.2 million (£1.06 per share) will be made by 31 March 2019, with the amount to be paid as dividend to be announced in February 2019, taking account of any share buy-backs in the intervening period.

Chart looking a bit negative a the moment. For those who are holders of the stock do you wait for the special divi's but risk a capital correction downwards or take profit & sacrifice the special divi's?

Unfortunately, don't know the answer.

I hold far too many Householders and Constructions shares.

But trying to find a suitable bolt hole is difficult and cash with future probable devaluation is not very attractive.

I have charted BKG against Ftse 100 and Households and Construction etc since 94 and except for short-term blips (3mnths to 12mths approx) has done reasonably well.

I had it down to dump but will hold for a while longer.

(I am hopeless at dumping.)

Prefer to dealing costs.