Wednesday, January 22, 2020

A Housing Crisis???

Housebuilder Berkeley will pay out £1bn to shareholders over the next two years, almost doubling the planned financial award to its investors. Shares rose by 5% on Wednesday to a record high, briefly breaking the £55 mark before retreating to £54.40.

The FTSE 100 company has ridden the booming British property market since the financial crisis, with house prices rising particularly in London and south-east England, its main sources of revenue.

Berkeley said it will distribute about £500m in March through a share issue and buyback, followed by another £500m in March 2021.

Berkeley said it has held back investment in light of the “volatile operating environment” since 2016, the year of the EU referendum. During that time its net cash position has increased from £107.5m to more than £1bn.
It expects to deliver profits of more than £3.3bn over the six years to 30 April 2025. Annual earnings are expected to come in between £500m and £700m.
Founder and chairman, Tony Pidgley's pay in 2016-17 under the previous remuneration policy he received £29.2m. From 2009 to 2019 he received remuneration worth more than £105m, according to company reports.

No comments: