Berkeley Group Holdings plc (BKG) Ordinary Shares NPV
HL comment (6 September 2019)
In a statement ahead of its AGM, Berkeley set out an annual pre-tax profit target of £500m-£700m, equating to £3.3bn by 2025.
A dividend of 20.08p per share will be paid on 13 September 2019.
The shares were little moved following the announcement.
HL view to follow.
Berkeley is mindful that the wider housing market "remains constrained by high transaction costs and the uncertainty in the macro political and economic environment".
Despite uncertainty, Berkeley's forward sales position remains above £1.8bn, as conditions in London and the South East have remained robust. A more cautious approach to investing in new development opportunities means net cash, at the half year, is expected to be similar to the full year position at £975m - although this is dependent on share buy-backs and investment in new land.
The £139.2m tranche of shareholder returns for 30 September 2019 has been completed through buybacks, with the next six-monthly return of £139.7m to be completed by March 2020.
Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by Thomson Reuters. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.
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