Berkeley Group Holdings (LSE: BKG)

cash-rich (net cash of £317 million) equating to 29% of its market cap of £1.1 billion.


strong cash generation (£5 million a month)

solid balance sheet

A master of market timing

FY 30 April 2010.

REV -12.4% to £615 million

Operating profit -15% to £106 million

Pre-tax profit -8% to £110 million

EPS -16% to 60p

equating to 29% of its market cap of £1.1 billion.

(NAV) 637p, SP of 824p (premium of 29% to NAV).



£648 million of cash from forward sales,

land bank of 28,099 land-bank plots (could produce future gross margin of £2 billion).



Given the 40% fall in sales reservations from historic levels, the company is unlikely to produce the £200 million-plus annual profits of the boom years.

That said, if you're looking for a quality, low-risk play on any future house-price recovery in London and the South East, then Berkeley is probably it.