This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
4 December 2015
It may develop flats buts its shares are anything but this morning, with Berkeley Group (BKG) testing fresh all-time highs, building on a recent 3200p breakout thanks to a handsome set of H1 results. Investors like the look of a solid first half with sales +11.7% and underlying profits +10.2% – even if unadjusted profits fell -3.8% the company still banked an impressive average £115K profit on each of the 2,091 flats it sold. A £500m boost to an already generous dividend programme through 2021 is also going down well, with the annual dividend +11% to 200p/annum (5.6% yield) thanks to its strong financial position, visibility and healthy net cash position. To top it all off, management’s reiteration of FY guidance and the company being on-track to hit its aggregate pre-tax profit target of £2bn by Apr 2018 is the cherry on the cake for loyal shareholders who recognise the value of the company’s focus on a uniquely strong London and the South East region supported to solid demand for premium priced luxury habitation in an area where land is at a premium and property prices continue to make record highs.
Mike van Dulken, Head of Research
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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