Final Results

RNS Number:7966M
Berkeley Group PLC
26 June 2003


26th June 2003

                      BERKELEY PROFITS UP 12.7% TO #221.2 MILLION

The Berkeley Group plc ("Berkeley" or "The Group") the urban regenerator and
residential property developer announces its full year results for the year
ended 30th April 2003. Highlights of the results include:

   *Pre-Tax Profits:         Up 12.7% to #221.2 million

   *Operating Margin:        Group housebuilding operating margins, excluding 
                             land sales, up from 18.5% to 18.6%.

   *Net Debt:                Down #100.4m to #143.1m; representing gearing of 
                             13.5% (2002: 25.1%)

   *Proposed Final Dividend: 14.4p per share, making a total dividend of
                             19.2p per share, an increase of 16.4%. (2002: 
                             total of 16.5p)

   *ROCE:                    Increased to 19.3% from 18.9% last year.

   *Land Holdings:           Up to 25,850 plots from 20,426 last year end.

   *Forward Order Book:      Remains solid at #920.9m
                             (2002: #1,051.6m)

   *Share Buy-Back:          6.8 million (5%) shares bought back in      
                             2002/3 for #42.0 million.

                          April 2003        April 2002         % Difference
                         ------------      ------------       --------------

                                                             
    Turnover                #1,150.8m           #976.8m              +17.8%
                           -----------         ---------
    Operating Profit          #215.7m           #189.5m              +13.8%
    Joint Ventures             #16.5m            #23.5m              -29.8%
    Interest                  (#11.0m)          (#16.8m)             -34.5%
                            ----------        ----------
    Profit Before Tax         #221.2m           #196.2m              +12.7%                                       
                             ---------         ---------
    EPS                        116.0p            105.3p              +10.2%
    DPS                         19.2p             16.5p              +16.4%
    NAVPS                        829p              717p              +15.6%



Commenting on the results, Group Chief Executive, A W Pidgley said:

"The true colours of any business are painted most dramatically when the market
in which it operates toughens. And it is that fundamental business truth - about
how we meet a challenging market with foresight and confidence - which provides
the basis for this report of our results for the last financial year.

The property market in the UK has been subject to some uncertainty for well over
a year now; but these are the very conditions we predicted, and planned for,
some time ago.

As a result of that foresight and of our consistent strategic plan, underpinned
by sound management and a dedicated workforce, the Group has delivered another
year of solid and balanced results. In 2002/03, Berkeley achieved record
profits, generated #100 million of free cashflow, bought back #42 million of
stock, simplified the Group, increased its unrivalled land holdings through
selective land buying and its planning expertise and has forward sales of over
#900 million. That is a formidable record at any time, let alone in the
challenging market and wider economy of the last year. During this period, our
concentration has increasingly focussed on protecting shareholders' funds and
generating cashflow as opposed to the profit and loss account.

The Group has the expertise and strength to continue pursuing a strategy focused
on organic growth and further developing our reputation as a leading urban
regenerator. At the same time, we will generate cash, so providing a further
opportunity for Berkeley to simplify its structure, improve its land holdings,
strengthen its financial base and take advantage of opportunities in the market.

I believe that Berkeley remains in a position to continue to deliver enhanced
performances while minimising the risks inherent in our business. It will
continue to be our aim, and I look forward in 2004 to reporting on another year
of achievement."

Roger Lewis, Group Chairman said "The housing market over the last six months
has moderated, with sales prices holding up relatively well against a backdrop
of falling demand from the boom conditions experienced last year. The return to
more normal market conditions is very welcome. It will enable us to continue to
show our unique strength in terms of product quality and diversity, marketing
flair and design innovation."

Results

Berkeley is delighted to announce pre-tax profits of #221.2 million for the 12
months ended 30th April 2003 - an increase of 12.7% on the #196.2 million for
the same period last year. Earnings per share rose by 10.2% from 105.3p to
116.0p.

Shareholders' funds increased by #88.0 million, to #1,056.2 million (30th April
2002 - #968.2 million) an increase of 9.1%. Net assets per share stand at 829p,
an increase of 15.6%.

Due to the share buy-backs carried out from December 2002 to April 2003
shareholders' funds are #42million lower at 30th April 2003 and will be
#49.5million lower at 30th April 2004.

Return on capital employed was 19.3%, up from 18.9% on last year. At 30th April
2003 bank loans and overdrafts were #143.1 million (2002 - #243.5 million),
representing a gearing level of 13.5% (2002 - 25.1%)

Dividends

The Directors are pleased to recommend a final dividend of 14.4p net per share.
This dividend, together with the interim dividend of 4.8p net per share paid in
February 2003 will make a total dividend of 19.2p - an increase of 16.4% over
the 16.5p paid last year. The cost of the final dividend will be #18.4 million
and will be payable on 4th September 2003 to shareholders on the register at 8th
August 2003.

The dividend policy of the Group is to move towards a better balance between the
interim and final dividends, taking into account the more even split of pre-tax
profits between the first and second halves of the year as was experienced in
2002/3, and to maintain the cover ratio.

Trading Analysis

Group turnover was #1,150.8 million (2002 - #976.8 million). This comprises
#1,130.1 million (2002 - #927.6 million) of residential turnover and #20.8
million (2002 - #49.1 million) of commercial turnover.

During the year, Berkeley sold 3,544 homes at an average selling price of
#315,000. This compares to 3,182 homes at an average selling price of #273,000
in the corresponding period in 2002. In 2003 the Group realised #8.8 million
from land sales (2002 - #59.8 million). The Group's policy has always been to
take advantage of suitable land sales opportunities - Berkeley's performance is
not, however, dependent on realising such opportunities.

Group commercial turnover was lower at #20.8 million (2002 - #49.1 million) as
Phase I of Gunwharf Quays, 50% of which was sold to Land Securities, is
substantially complete. In addition to Gunwharf Quays, the Group successfully
developed nine commercial opportunities on our mixed-use schemes.

Joint venture turnover totalled #99.3 million (2002 - #108.3 million). This
comprises of #91.4 million from residential projects and #7.9 million (2002 -
#10.1million) from commercial schemes. The number of units sold was 637 at an
average selling price of #211,000. The lower average selling price (compared to
773 units at an average selling price of #278,000 in the corresponding period
last year) is due to a change of mix. Residential joint ventures have benefited
from a land sale that produced a turnover of #18.8 million.

The housebuilding operating margin excluding joint ventures and land sales has
increased from 18.5% to 18.6%. Joint venture operating margins are 16.7%.

Share Buy-Backs

During the period, Berkeley purchased 8,036,559 shares at an average cost per
share of #6.14p, of which 6,786,559 shares were cancelled by 30th April 2003 and
1,250,000 will be cancelled in the year to April 2004. The financial costs of
these buy-backs is #49.5 million, of which, #42.0 million was paid by 30th April
2003. This increased the gearing levels from 9.2% to the reported 13.5%.

These buy-backs were not part of Berkeley's core investment strategy but the
opportunity arose between December 2002 and April 2003 to improve shareholder
value with such transactions due to the uncertainty evident in the stock market
at the time. The shares were bought back at a discount to net assets of 33.2%
and increase the net asset value per share by 11p.

Berkeley Group Strategy

Berkeley's strategy is based on the powerful combination of a willingness to
innovate and take on complicated projects allied to a confidence which flows
from the experience and financial strength we have built up over the past decade
or more. Few other companies have such a breadth and depth of management
experience, gained at the cutting edge of the home building industry. This
experience has enabled us to continue to develop some of the most exciting
regeneration projects in the country, while delivering both the level of quality
expected by our customers and the returns sought by our shareholders.

This consistent approach to managing Berkeley has established us as one of the
most significant players in the regeneration of urban Britain. We encourage
innovation, we reward entrepreneurial flair and we nurture the strong brands
that we have created. But we have never forgotten the very particular challenges
inherent in a cyclical industry. Over the past year we have continued to become
more efficient, the savings from which are already flowing through the business.

The policy of the Board has always been to ensure a sound capital base and to
put in place financial resources well ahead of need, enabling us to invest in
new opportunities.

Berkeley's sound capital base is at one level demonstrated by our gearing level
of 13.5%. If joint venture borrowings were added to the Group gearing total then
the gearing level would be 19.7%. Group bank facilities are in excess of #520
million, of which #200 million are medium term.

The Group has continued to develop its environmental and sustainability strategy
over the past year, adding value to our business and delivering benefits to the
communities in which we work.

The solid foundations of our success in the last financial year and our
confidence in the future of the business lie in the consistency of our strategy,
our willingness to pioneer and the ability of our management to identify and
take advantage of new opportunities.

Current Trading and The Housing Market

During the second half of our previous financial year (November 2001 - April
2002) we operated in an unexpectedly buoyant market. We did not consider this
market to be sustainable but nevertheless to help satisfy demand we released a
number of developments early and accelerated our reservations rate. In the first
six months of the financial year (May 2002 - October 2002), Berkeley's
reservations were in line with the same period in 2001, indicating a return to a
more normal market. In the second half of the financial year (November 2002 -
April 2003), reservation levels weakened and Berkeley's were 36% down against
the boom conditions of the comparable period in the previous year. The positive
news is that reservations in June 2003 are ahead of those in June 2002,
indicating a return to a more normal housing market.

45% of the reservations during the period were from investors, which the Group
defines as ranging from households purchasing a second home through to a large
institutional investor. This compares to 51% for the comparable period last
year. Overseas investors account for 19% of the investor reservations down from
22% for the comparable period last time.

This highlights the market trend of a shift away from investors to
owner-occupiers who purchase later in the cycle and the Group has refocused its
marketing strategy accordingly. Nevertheless investor demand is still healthy,
which, as we said in the half year statement is reassuring to the Group. It also
demonstrates that our investor market was not solely dependent on the buy-to-let
phenomenon and comprises both opportunistic purchasers and individuals
preferring property to other investments.

Traditionally, the housing market is driven by consumer confidence which in
recent years has benefited from high employment levels, low interest rates and a
low level of supply which is being exaggerated in London and the South-East due
to planning constraints and the deliverability of complex urban regeneration
schemes.

While Berkeley has seen a slowing of reservation levels and headline prices have
fallen, our sales prices have been running at between 3.0% to 8.0% above our
business plan forecast - with some variations dependent on the location and the
type of scheme. Build costs continue to put operating margins under pressure
given the continuing skills shortage but Berkeley can maintain its operating
margin due to its management expertise and constant attention to detail,
providing the current market conditions prevail.

There is continuing evidence that the demand for detached houses in the Home
Counties and large apartments in Central London is moderating. Berkeley has
modest exposure to these areas of the market.

For the Group to achieve its 2003/04 reservation target, 58% of the sales
required are on units under #300,000 and 86% under #500,000. This gives Berkeley
a degree of comfort but the Group is under no illusions regarding the demanding
nature of the market. Current market conditions will favour companies with
distinctive and high quality products, robust finances and creative marketing
strategies.

Forward Sales

Berkeley's strategy has always been to sell its homes at an early stage in the
development cycle in order to secure an early commitment from customers and thus
enhance the quality of future income. This strategy has always stood the Group
in good stead whatever the market conditions. At 30th April 2003 Berkeley held
forward sales of #920.9 million, a drop of #130.7 million on this time last
year. Of this total, #229.0 million was included in the results for the 12
months to 30th April 2003. Shown as debtors in the balance sheet, it reflects
cash to be collected on units taken to sales. The balance of #691.9 million will
benefit the current year as well as future years.

Land Holdings

Berkeley over the last twelve months has concentrated on urban regeneration
sites. In the first half, the Group broadly replaced the number of units used up
in trading. In the second half, Berkeley has increased its land bank by 4,500
plots. Berkeley has been able to acquire new land while meeting very strict
investment criteria, taking special advantage of the current market in the
South-East.

The land market has yielded a number of opportunities, especially on the larger
sites in the South-East though our overall assessment is that the land market is
still competitive, especially for sites with an implementable planning consent.

Large sites acquired during this year include the 13 acre site at Battersea
Reach for 658 units, a 30 acre site in Hendon for potentially over 2,000 units
and a joint venture site in York for over 700 units. In addition, St James
acquired 5 sites from Thames Water in the second half for over 1,000 units
including a 14 acre site in Hornsey for 467 units and a 60 acre site in
Worcester Park for 480 units.

Berkeley is concentrating on replanning a number of sites in its portfolio and
densities have been increased whenever appropriate in line with best planning
practice. This has the advantage of improving numbers and gross margin without
incurring further land costs. It also allows us to ensure that our schemes are
meeting market demand and are affordable.

As a result, at 30th April 2003, the Group (including our joint venture company)
controlled over 25,850 plots compared to 20,426 at 30th April 2003. Of these
holdings, some 19,459 are owned and included in the balance sheet compared to
16,014 this time last year, while 3,358 (April 2002 - 2,612) units are
contracted and a further 3,033 (April 2002 - 1,800) have terms agreed and
solicitors instructed. At 30th April 2003 the estimated gross margin on these
25,850 plots is over #2 billion (30th April 2002 - #1,700 million). Over 95% of
our land holdings are on brownfield or recycled land and many of our sites
involve mixed-use developments which provide for living, working and leisure and
so meet the Government's sustainability criteria.

Within the land holdings the Group has over two million square feet of
commercial space, within our mixed-use schemes.

Berkeley has achieved this increase in land holdings without the requirement of
additional financial resources either through direct investment or increasing
the use of deferred land payments. The land cost percentage to turnover has
fallen from 17.8% to 14.5% while the estimated gross margin has remained over
28%.

Group Structure

During 2003 Berkeley simplified its structure as it continues to move away from
developing small sites to large urban regeneration projects.

The Group now operates through 8 Divisions and 24 operating companies, a
reduction of one Division following the absorption of Thirlstone Homes into
Berkeley Homes during the year. The strategy of the Group is to become
progressively more project focused. This is forecast to result in the Group
managing further growth without the requirement for additional overheads.

Our People

At the heart of The Berkeley Group's success is a uniquely talented and
experienced management team, driven by entrepreneurial flair and an unrivalled
practical understanding of the land and property market. It has given Berkeley
the aptitude and foresight to identify and take advantage of new opportunities.

Berkeley has always recognised that part of its strength has been built on the
committed, hard working and imaginative people it employs. But the success of
our business model also rests on the manner in which we create our teams,
generating results far in excess of the simple sum of individuals.

Through our powerfully branded divisions and joint ventures, we have
consistently demonstrated our ability to undertake and manage any form of
development that presents itself. The confidence that the Group has in the
management capability within its divisions, matched with the financial strength
of the Group as a whole, has allowed us to unlock the flair and vision of our
management teams.

Such a performance is not achieved without the commitment, dedication and
expertise of our staff. On behalf of the Board and shareholders, I would like to
express our sincere appreciation and thanks to them all.

Health & Safety and The Environment

Last year the Board published a Group Sustainability Report, evidence of our
determination and commitment to this issue, and I am delighted that we have
already published our report for 2003.

During the year we have sought continuing improvement of health, safety and
environmental standards to ensure our sites and work places are safe places in
which to operate. Berkeley is committed to reducing the incidents that occur and
our target is to minimise them as far as possible. We are currently experiencing
incidents at 48% below the national average for the construction industry. We
experienced a Notifiable Incident Rate of 10.2 per 1,000 workers and have
committed to target a 10% reduction of this in the forthcoming year.

It is also pleasing to receive awards in recognition of our progress in this
area with St George, St James and Crosby achieving Gold ROSPA Awards for Health
& Safety. St George was accredited with a 5 Star rating by The British Safety
Council, the highest rating category. Crosby Homes has been accredited as a
regional training and assessment centre for health and safety, training both the
company workforce and those of its contractors.

Joint Ventures

In January 2002 Berkeley raised #47 million on the anticipation of requiring
further funding for our joint venture opportunities.

Berkeley currently has #56.8 million of capital employed in joint ventures, a
reduction of #2.4 million from this time last year but our share of bank
borrowings has increased by #19.4 million to #70.9 million.

Berkeley has not fully utilised equity within joint ventures because it has been
able to develop land through its wholly owned divisions.

Berkeley is committed to all our existing joint venture partners especially
Thames Water through our joint venture company St James but will only develop
further relationships if there is a mutual benefit to developing their land
through a joint venture. Our joint venture partners endeavour to operate at
gearing levels between 60% and 70% hence the requirement for equity is lower.
But it is Berkeley's strategy to ensure the Group's financial strength is not
weakened by our joint venture borrowing requirements and they are taken fully
into account when determining our financial strategy.

Prospects

Our tasks in the year ahead are straightforward. We will continue our strategy
of becoming the urban regenerator who delivers. We will continue to simplify the
Group and to maintain the flexibility to review our land holdings and products
to meet the requirements of the market. We will acquire land when appropriate
and take advantage of other opportunities presented by the market as they arise
- without constraints on location - and reward our shareholders for their
confidence in the Group.

The slow down in sales price growth is welcome. The market is showing signs of
returning to more normal levels of activity as the uncertainty created by world
events, falling economic growth and increased Government borrowing is off-set by
strong employment, low interest rates and the increasing desire for the types of
homes created by Berkeley. The prospects for the housing market in the short
term will continue to be uncertain but in the medium term the outlook for our
industry is bright due to the economic fundamentals remaining favourable.

The Berkeley Group is in an excellent position to continue to perform well in
the medium term, even if adverse conditions materialise. Berkeley's management
is experienced and enjoys a proven track record in all markets, so making us the
urban regenerator of choice. We have strengthened our land bank, while
maintaining our financial strength and a strong forward order book.

We look forward to the future with confidence. Our record in the last year
provides us with that confidence and whatever the market may hold our underlying
strengths will ensure our continued success.

For further information:

The Berkeley Group                    Smithfield Financial

Roger Lewis, Chairman                 John Antcliffe

01932 868555                          Rupert Trefgarne

                                      020 7360 4900






The Berkeley Group plc

Consolidated profit and loss account (Unaudited)



For the Year Ended 30 April               Notes         2003         2002
                                                       #'000        #'000
--------------------------------------------------------------------------
Turnover including share of joint             1    1,250,165    1,085,098
ventures
Less: share of joint ventures'                       (99,325)    (108,327)
turnover
--------------------------------------------------------------------------
Turnover - continuing operations                   1,150,840      976,771
Cost of sales                                       (835,770)    (700,107)
--------------------------------------------------------------------------
Gross profit                                         315,070      276,664
Net operating expenses                               (99,406)     (87,214)
--------------------------------------------------------------------------
Operating profit - continuing                        215,664      189,450
operations
Share of operating profit in joint                    16,542       23,540
ventures
--------------------------------------------------------------------------
Total operating profit including share        1      232,206      212,990
of joint ventures
Net interest payable                          2      (11,025)     (16,828)
--------------------------------------------------------------------------
Profit on ordinary activities before                 221,181      196,162
taxation
Taxation on profit on ordinary                3      (66,497)     (59,333)
activities
--------------------------------------------------------------------------
Profit on ordinary activities after                  154,684      136,829
taxation
Dividends                                            (24,909)     (22,003)
--------------------------------------------------------------------------
Retained profit for the year                         129,775      114,826
--------------------------------------------------------------------------
Dividends per Ordinary Share                            19.2p        16.5p
Earnings per            
Ordinary Share          - basic               4        116.0p       105.3p
                        - diluted             4        115.1p       105.1p
--------------------------------------------------------------------------

The Group has no recognised gains or losses other than the profits set out above
and therefore no separate statement of total recognised gains and losses has
been prepared.

There is no material difference between the profit on ordinary activities before
taxation and the retained profit for the year stated above and their historic
cost equivalents.


The Berkeley Group plc

Consolidated balance sheet (Unaudited)



As at 30 April                                       2003         2002
                                                    #'000        #'000
--------------------------------------------------------------------------
Fixed assets
Intangible assets - goodwill                            -        2,359
Tangible assets                                    18,492       19,201
Investments                                         2,145           11
Joint ventures
- Share of gross assets                           227,387      228,957
- Share of gross liabilities                     (170,612)    (169,814)
--------------------------------------------------------------------------
                                                   56,775       59,143
--------------------------------------------------------------------------
                                                   77,412       80,714
--------------------------------------------------------------------------

Current Assets
Stocks                                          1,151,103    1,118,245
Debtors                                           247,436      280,931
Investments                                        62,047       55,514
Cash at bank and in hand                           57,103        3,105
--------------------------------------------------------------------------

                                                1,517,689    1,457,795
--------------------------------------------------------------------------

Creditors (amounts falling due within one
year)
Borrowings                                           (153)     (46,562)
Other creditors                                  (316,573)    (309,106)
--------------------------------------------------------------------------

                                                 (316,726)    (355,668)
--------------------------------------------------------------------------

Net current assets                              1,200,963    1,102,127
--------------------------------------------------------------------------

Total assets less current liabilities           1,278,375    1,182,841
--------------------------------------------------------------------------

Creditors (amounts falling due after more than
one year)
Borrowings                                       (200,000)    (200,000)
Other creditors                                   (22,219)     (14,626)
--------------------------------------------------------------------------

                                                 (222,219)    (214,626)
--------------------------------------------------------------------------

Net assets                                      1,056,156      968,215
--------------------------------------------------------------------------

Capital and reserves
Share capital                                      32,054       33,741
Share premium                                     420,603      420,358
Capital redemption reserve                          1,697            -
Retained profit                                   571,248      491,718
Joint ventures' reserves                           30,554       22,398
--------------------------------------------------------------------------
Equity shareholders' funds                      1,056,156      968,215
--------------------------------------------------------------------------
Net assets per Ordinary Share                         829p         717p
--------------------------------------------------------------------------

The Berkeley Group plc

Consolidated cashflow statement (Unaudited)



For the year ended 30 April                           2003        2002
                                                     #'000       #'000
--------------------------------------------------------------------------
Net cash inflow from operating activities          204,385      49,650
Dividends from joint ventures                        1,245       6,890
Returns on investments and servicing of             (7,233)    (13,642)
finance
Taxation                                           (46,579)    (60,010)
Capital expenditure and financial investment        13,744     (16,364)
Acquisitions and disposals                               -         (26)
Equity dividends paid                              (23,321)    (19,604)
--------------------------------------------------------------------------
Net cash inflow/(outflow) before financing         142,241     (53,106)
Financing                                          (77,376)     56,111
--------------------------------------------------------------------------
Increase in cash in the year                        64,865       3,005
--------------------------------------------------------------------------



Reconciliation of net cash flow to movement in        2003        2002
net debt                                             #'000       #'000
                                                     

Increase in cash in the year                        64,865       3,005
Cash outflow/(inflow) from decrease/(increase)      35,542      (7,469)
in debt
--------------------------------------------------------------------------
Movement in net debt in the year                   100,407      (4,464)
Net debt at 1 May                                 (243,457)   (238,993)
--------------------------------------------------------------------------
Net debt at 30 April                              (143,050)   (243,457)
--------------------------------------------------------------------------



Reconciliation of operating profit                    2003        2002
                                                     #'000       #'000
--------------------------------------------------------------------------

Operating profit                                   215,664     189,450
Goodwill amortised                                   2,359       2,400
Depreciation                                         3,147       4,122
Profit on sale of tangible fixed assets             (1,634)       (953)
Stocks - increase                                  (32,858)   (137,927)
Debtors - decrease/(increase)                       32,898     (44,812)
Investments - increase                              (6,533)    (18,734)
Creditors - (decrease)/increase                     (8,658)     56,104
--------------------------------------------------------------------------
Net cash inflow from continuing operating          204,385      49,650
activities                                         
--------------------------------------------------------------------------



The Berkeley Group plc

Reconciliation of movements in shareholders' funds



                                                     2003         2002
                                                    #'000        #'000
--------------------------------------------------------------------------
Profit for the year                               154,684      136,829
Dividends                                         (24,909)     (22,003)
--------------------------------------------------------------------------
Retained earnings                                 129,775      114,826
Share buy-backs                                   (42,039)           -
New share capital subscribed                          254       49,158
Contribution to QUEST                                 (49)        (516)
--------------------------------------------------------------------------
Net additions to shareholders' funds               87,941      163,468

Opening shareholders' funds as restated           968,215      804,747
--------------------------------------------------------------------------
Closing shareholders' funds                     1,056,156      968,215
--------------------------------------------------------------------------






The Berkeley Group plc



Notes

 1. Segmental information

    Turnover, operating profit and net assets by class of business are analysed
    below:

                                   Turnover           Operating Profit            Net Assets
                               2003         2002       2003       2002         2003       2002
                              #'000        #'000      #'000      #'000        #'000      #'000
----------------------------------------------------------------------------------------------
    Residential
    housebuilding
    Group                 1,130,062      927,635    212,012    181,447      989,458    900,237
    Joint ventures           91,450       98,224     14,205     17,545       49,240     44,609
----------------------------------------------------------------------------------------------
                          1,221,512    1,025,859    226,217    198,992    1,038,698    944,846
----------------------------------------------------------------------------------------------

    Commercial property
    and other
    activities
    Group                    20,778       49,136      3,652      8,003        9,923      8,835
    Joint ventures            7,875       10,103      2,337      5,995        7,535     14,534
----------------------------------------------------------------------------------------------
                             28,653       59,239      5,989     13,998       17,458     23,369
----------------------------------------------------------------------------------------------
                          1,250,165    1,085,098    232,206    212,990    1,056,156    968,215
----------------------------------------------------------------------------------------------

    All turnover and profit relate to continuing activities of the Group and are
    derived from activities performed in the United Kingdom. Included in Group
    residential housebuilding turnover and operating margin is #8,800,000 and
    #3,552,000 in respect of land sales (2002: #59,776,000 and #20,953,000).

 2. Net interest payable

                                                    2003          2002
                                                   #'000         #'000

    Interest receivable                            2,395           952
    Interest payable on bank loans and           (10,403)      (14,717)
    overdrafts
    Interest payable - share of joint             (3,017)       (3,063)
    ventures                                 
------------------------------------------------------------------------
                                                 (11,025)      (16,828)
------------------------------------------------------------------------
 3. Taxation

                                                    2003          2002
                                                   #'000         #'000
------------------------------------------------------------------------
Taxation on profit for the
year:
UK corporation tax payable at     - Current     (63,421)      (53,800)
30% (2002: 30%)                     year
                                  - Prior
                                    year          1,400             -
Deferred tax                                       (352)          568
Share of joint ventures                          (4,124)       (6,101)
 - current year
------------------------------------------------------------------------
                                                 (66,497)      (59,333)
------------------------------------------------------------------------



The Berkeley Group plc

Notes (continued)

 4. Earnings per Ordinary Share

Earnings per Ordinary Share is based on the profit after taxation of
#154,684,000 (2002: #136,829,000) and the weighted average number of Ordinary
Shares in issue during the period of 133,404,586 (2002: 129,910,482). For
diluted earnings per share, the weighted average number of shares in issue is
adjusted to assume the conversion of all dilutive potential shares. The dilutive
potential Ordinary Shares relate to shares granted under employee share schemes
where the exercise price is less than the average market price of the Company's
Ordinary Shares during the year. The effect of the dilutive potential shares is
998,783 shares (2002: 315,467). This gives a diluted weighted average number of
shares of 134,403,369 (2002: 130,225,949).

Net assets per Ordinary Share is calculated based on net assets at the end of
the year divided by the number of Ordinary Shares in issue at the end of the
year of 127,425,071 (2002: 134,963,049). This excludes shares held by the
Company to satisfy awards under its long term incentive plan.

Return on Capital Employed (ROCE) is calculated based on profit before interest
and tax divided by the average shareholders' funds plus net debt.

5. The unaudited financial information for the year ended 30 April 2003
summarised above, does not constitute statutory accounts within the meaning of
section 240 of the Companies Act 1985, but has been agreed with the Company's
auditors. The abridged financial information relating to the year ended 30 April
2002 is an extract from the statutory accounts, which have been delivered to the
Registrar of Companies. The report of the auditors on these financial statements
was unqualified and did not contain a statement under section 237(2) or (3) of
the Companies Act 1985.


6. The statutory accounts for the year ended 30 April 2003 will be sent by mail
to shareholders in July 2003 and filed in due course with the Registrar of
Companies. Copies will be available for inspection at the Company's Registered
Office, Berkeley House, 19 Portsmouth Road, Cobham, Surrey KT11 1JG.

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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