Berkeley Group strikes confident note in reiterating three-year guidance

20th Mar 2015 07:22

Housebuilder Berkeley Group reiterated its earnings guidance for the next three years to 2017 as management demonstrated their confidence in the UK housing market recovery.In a trading update covering the period from 1 November 2014 to 28 February 2015, the group said all sites that have an implementable planning consent are in construction with 64 sites across London and the South of England, employing some 12,000 people on these sites.The group adds that with the return to normal trading conditions, it continues 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," said the group, which is currently ungeared and sitting on some £400m of net cash following the payment of £122m of dividends in January 2015.Berkeley said that under the group's programme to return 1,300p to shareholders, a further 90p per share is payable in order to meet the first milestone of paying 434p per share by September 2015.The company also reiterated its current intention to meet a proportion of the next milestone of 433p per share by September 2018 through regular dividends, depending on market conditions, with the view to use any surplus capital generated to reinvest in the business or fund further dividend payments or share buybacks if appropriate.The group added that a new site in Reading has been acquired unconditionally by its St Edward Homes unit 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.Berkeley also secured a further 7 new consents on existing land holdings, all of which enhance capacity to deliver more homes in the future.