Berkeley reiterates full-year view as house building accelerates

18th Mar 2014 07:03

- Expects full-year earnings to be at upper range of current guidance- Property market buoyed by economic pick-up, government scheme- Anticipates completing 30 per cent more homes than at 2007 peak UK housebuilder Berkeley Group said a more positive trading environment and a period of wider economic growth, as well as the government's Help to Buy scheme has boosted activity in the property market.As a result, the London focused housebuilder is reiterating its previous guidance that full-year earnings are likely to be towards the top of the range of analysts' current expectations."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," it said in its interim update.The group, which announced a massive hike in its dividend payment in it's December update, said it has now paid £1.64 per share of dividends, equivalent to £215m, towards the first milestone of £568m 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," it explained. Berkeley said it is well-positioned to maintain the estimated future gross margin in its land holdings at £3bn whilst continuing to deliver sustainable returns on equity. Around 86% of its land holdings have planning permission and all of its sites are in the course of construction, consistent with its December update.As previously stated, Berkeley has the land with implementable planning permissions in place that will enable it achieve the second milestone, equivalent to further dividends of £4.33 per share by September 2018.CJ