Berkeley pledges £1.7bn shareholder payout

Aaron Morby 11 years ago

South East house builder Berkeley Group has unveiled plans to return £1.7bn to shareholders over the next 10 years.

The huge handout, which amounts to a £13 payout to each shareholder, is part of a new 10-year strategy, which will also see a new management bonus scheme introduced to deliver the plan.

Chairman Tony Pidgley said: “I am delighted that in the two years since shareholders supported the board’s proposal to invest at the right point in the cycle, Berkeley has made great progress and acquired a number of excellent sites in London and the South East, committing in excess of £500 million to the land bank in the process and laying the foundation for the next phase of the Group’s strategy.

“The Board’s recommendation to return £13 in cash over the next ten years is the result of these achievements.”

Berkeley has acquired some 3,600 plots across 24 sites, which has raised the value of the group’s land bank rose to £2.3bn, 13% up on a year ago.

In the year ending April, pre-tax profits jumped 23% to £136m on turnover up by the same amount at £742m.

The result leaves Berkeley boasting an operating margin of 18%, the highest among leading house builders.

The group sold 2,544 homes during the year at an average selling price of £271,000, compared with 2,201 units sold at a price of £263,000 the year before.

Also contributing to the rise was the £13.8m made from land sales, compared with none the year before, reflecting the disposal of three sites in the second half.

Berkeley welcome recent Government measures to stimulate the housing market, but warned it was still too early to gauge what impact the localism Bill would have on future building.

Managing director, Rob Perrins said: “There are now considerably less public funds available to contribute to the financing of affordable housing and this, together with escalating other S106 requirements will threaten the commercial viability of some schemes.”

“The combination of these two factors allied to the localism will impact on housing supply.”

“By investing in the land bank early in the cycle during the last two years and taking out the planning risk wherever possible, the group is now well positioned to deliver further growth in earnings to the extent market conditions allow.

“The focus of the long term strategy is turning this tactical advantage into strong and tangible returns for shareholders over the next 10 years.”

Latest news

Self-employed labour rates hit record high

Average weekly pay tops £1,000 in London, the South East and East of England.
15 hours ago

Network Rail chief takes finance reins at Skanska

Meliha Duymaz is new Chief Financial Officer
16 hours ago

Construction Manager of the Year crowned

Kier's Joe O’Connell lands top prize. Full list of winners
1 day ago

Hochtief starts pulling down Welsh pylons

Construction starts on National Grid project
15 hours ago

Kier wins London life sciences job

Contractor lands innovative landmark lab development at ARC West London
15 hours ago

Social housing bidding opens for £1.5bn energy retrofit cash

First upgrades of social housing stock could start from early next year
2 days ago

Construction arm propels Mace to record profit

Revenue expected to top £2bn this year despite project delays
2 days ago

Fire destroys conveyor belt at Silvertown Tunnel site

Forty firefighters battle blaze at huge London site
2 days ago

Plan for £58m Bristol pharma R&D facility approved

Willmott Dixon in line to build the R&D facility at Bristol & Bath Science Park
2 days ago

Bond Street Elizabeth line station to open next month

Final station on delayed line will welcome passengers in October
2 days ago

Sisk fixes price on £227m Quintain flats job

Quintain signs single-largest contract so far at Wembley Park
2 days ago

Green light for St Helens town centre revamp

English Cities Fund to start phase 1 next April
2 days ago

Rising costs tip William Hare to £3.6m loss

Specialist contractor falls into the red despite near 60% revenue rise to £220m
3 days ago

Safety blitz on “aches, pains and strains” on site

1,000 site visits planned in coming months to check how workers are moving heavy or bulky materials
3 days ago

Drones sent flying underground to check sewers

Traditional inspection teams replaced with latest technology
3 days ago

Plan submitted for 470 Preston flats scheme

Stoneygate Central scheme on Dryden Mill site will rise to 16 storeys
3 days ago

Graham starts £124m M25 Junction 28

Work on the 36-month Junction 28 upgrade includes constructing a major two-lane loop road
3 days ago

Keltbray bags brace of energy infrastructure wins

Civils work on huge converter stations worth £30m to specialist
3 days ago

Balfour Beatty sole winner for £4bn Scape civils deals

Contractor reappointed to England, Wales and Northern Ireland and separate Scottish deals
4 days ago

PR expert Baroness Rock to chair Costain

Kate Rock will take up senior board role at the end of the year
4 days ago

Billington profit upgrade after strong first-half

Steelwork contractor says weaker pound will allow it to reignite its old export markets in Europe
4 days ago

Green light for £120m Liverpool “super restaurant”

Historic Pumphouse at Stanley Dock to be transformed
4 days ago

Tolent bags £15m Sunderland skills academy

Work to start later this year on Housing Innovation and Construction Skills Academy
4 days ago

Government launches net zero review

Pro-growth and pro-business review of net zero 2050 target launches
4 days ago

L&G Modular wins 400-home Wolverhampton job

Modular specialist wins 17-acre Canalside South regeneration scheme
4 days ago

£1.2bn A12 upgrade accepted for planning

15-mile Essex road upgrade between Chelmsford and Colchester aims for 2023/24 start
5 days ago

US consultant trumps WSP bid for RPS Group

Tetra Tech swoops but WSP could come back with new offer if bidding war breaks out
5 days ago

Sisk hands staff £900 cost of living cash boost

Firm also promises staff £400 Christmas voucher in November
5 days ago

Loathed IR35 reforms scrapped by Chancellor

Contractors will no longer have to determine tax status of freelance workers
1 week ago

Higgins signs deal for 740 West London homes

Work to start this autumn on two Hayes housing estate rebuilds
5 days ago

Contractor services