Berkeley lifts interim pre-tax profit to £91m

Berkeley, the urban regenerator with a strong focus on London and the surrounding area, has unveiled an interim pre-tax profit of £91m.

With the business running so well, the group has announced that £242m will be returned to shareholders on 4 January, well ahead of the original schedule.

Berkeley’s financial results for the six months to 31 October show turnover at £440m (figure in the comparable period last year: £380m). The latest interim profit represents a rise of £10m over the previous figure of £81m.

Net cash stands at £110m, well ahead of the previous level of £80m.

The land holding has risen by over 1,000 plots to 31,000. The net asset value of shares is also ahead at 705p. At the year-end the figure was 649p.

Tony Pidgley, managing director, said: “Berkeley’s strategy is founded on the belief that the business has a natural size and is not scaleable in a traditional sense due to the complexities of developing and delivering sustainable mixed-use urban regeneration schemes.

“The fundamentals of the housing market in London and the South East remain strong. Demand continues to outstrip supply, interest rates remain at historically low levels, and benefited from yesterday’s decision by the Bank of England to reduce rates by a quarter per cent, and London – a World City in every sense – continues to attract investment and employment.

“In competitive markets, customers become more discerning and this provides an environment in which the best will thrive.”

Victoria Mitchell, chairman, announced the acceleration of the 2008 £2-a-share payment to 4 January. The final payment to shareholders has also been accelerated and will be not later than 31 January 2011.