Berkeley Group Regulatory News (BKG)

13 Mar 2008 07:01

Berkeley Group Holdings (The) PLC13 March 2008 The Berkeley Group Holdings plc Interim Management Statement Period from 1st November 2007 to 31st January 2008 The Berkeley Group Holdings plc ("Berkeley") is delighted to announce itsInterim Management Statement in respect of the period from 1st November 2007 to31st January 2008, as required by the UK Listing Authority's Disclosure andTransparency Rules. Berkeley operates under a clear and unambiguous strategy which recognises themarket is cyclical and that Berkeley has a natural size. This strategy hasensured that the fundamental components of Berkeley's business are very strong.We recognise that customer confidence has been weakened by the deterioration inthe credit markets, however, these current market conditions play to Berkeley'sstrengths of a conservative balance sheet, a strong forward sales position andthe intrinsic value in our land bank. Berkeley's sales reservations in the lastfour months are approximately 20% below historic levels but this must bebalanced with the favourable market conditions upon which Berkeley capitalisedin the first half of the year. These are the conditions for which we planned anddo not alter Berkeley's ability to meet its revised strategy that was initiatedunder the Scheme of Arrangement. Berkeley is an added value developer that places a premium on generating qualityearnings and balance sheet value as opposed to a primary focus on the incomestatement. Berkeley has now secured the sales required to meet the Board'sexpectations for its full year results for the year ending 30th April 2008 to beannounced on 27th June 2008, which it expects will be at the higher end ofanalysts' expectations. With forward sales for the year ended 30th April 2009and beyond already well in excess of the levels of forward sales at 30th April 2007, Berkeley is also well placed for the future. There can be few developers as well positioned as Berkeley to sustain theirperformance during this period of market uncertainty and, at the same time, bein a position to take advantage of opportunities to invest for the future.Longer term, the fundamental characteristics of the market, namely, restrictedsupply, historically low interest rates, high levels of employment and London'splace as a leading World City are unchanged, thereby underpinning sales values. In accordance with the approval from shareholders obtained at the Annual GeneralMeeting on 5th September 2007, Berkeley redeemed the 2008 B share of £2 pershare on 4th January 2008, twelve months ahead of the original schedule. Thisbrought the total amount returned to shareholders since the Scheme ofArrangement was approved by shareholders in October 2004 to £9 per share. Itremains Berkeley's intention to make the final (2010) B share payment of £3 pershare ahead of its original scheduled payment date of January 2011. Finally, Berkeley was delighted to win the prestigious 'Climate Change' categoryat the 2008 Sustainable Cities Awards organised by The City of LondonCorporation last month. This is further recognition of our commitment tosustainability and determination to drive the sustainability agenda within ourindustry. END For further information please contact: The Berkeley Group Holdings plc Cardew Group A W Pidgley Tim RobertsonR C Perrins Sofia RehmanT: 01932 868555 T: 0207 930 0777 This information is provided by RNS The company news service from the London Stock Exchange