25th Mar 2020 08:52
(Alliance News) - Housebuilder Bellway PLC on Wednesday reported an half-year revenue rise but became the latest firm to postpone its dividend due to Covid-19.
In the six months to January 31, revenue edged 3.6% higher to GBP1.54 billion from GBP1.49 billion. Pretax profit, however, slipped 7.0% to GBP291.8 million from GBP313.9 million.
Administrative expenses rose 3.5% to GBP56.7 million, and Bellway reported that "other operating expenses" were 9.9% higher at GBP89.1 million.
Completions rose by 6.3% to a record of 5,321 homes.
Last year, Bellway made an interim payout of 50.4 pence per share, but this time round the FTSE 250 firm has held off.
"The decision to pay an interim dividend will be postponed until later in the calendar year, when there is more certainty with regards to the economic outlook," Bellway explained.
Bellway said it has halted all new site acquisitions, in a bid to trim costs.
"Reservations have fallen in the past two weeks as the introduction of measures to delay the spread of Covid-19 inevitably affect demand," the company added.
Bellway said it has a "strong balance sheet" with net cash at January 31 of GBP545 million.
Shares in the company were 2.5% lower at 2,020.00 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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