Bellway Reports "Excellent" Trading Period And Lifts Interim Dividend

20th Mar 2018 08:51

LONDON (Alliance News) - Bellway PLC hiked its interim dividend Tuesday after revenue and profit grew in the first half of the year.

Bellway proposed an interim dividend of 48.00 pence, up 28% from 37.50p the year before.

The FTSE 250-listed housebuilder posted pretax profit of GBP288.7 million for the six months ended January 31, up from GBP247.6 million the same period a year earlier. This was on revenue of GBP1.3 billion, up from GBP1.2 billion.

This was after the group sold 4,741 homes at an average selling price of GBP275,945, compared to the 4,462 homes sold for GBP256,100 the prior year.

Bellway said its trading conditions were strong in all parts of the country, with its reservation rate having increased 7.2% to 178 sales per week from 166 sales per week the year before.

The group said its four operating divisions in London also performed well, with 560 homes sold at an average price of GBP384,296. This was compared with 301 homes sold for GBP425,524 the prior year.

The operating margin also rose to 22% from 20% in the first half of 2018. The company said it expects operating margin for the year to be maintained at around 22%.

Bellway had also contracted to acquire 6,726 plots in the half year, compared to 6,287 the prior year, which it said ensured the company could deliver further volume growth.

The company said it now has 39,994 plots in total, up from 37,931 the year before.

Bellway Executive Chairman John Watson said: "This has been another excellent six month trading period for Bellway, during which our strong operational focus has resulted in further volume growth, imminent retention of our status as a five star homebuilder and a very strong financial performance, culminating in earnings per share rising by a further 16.9% to 191.6p from 163.9p in 2017."

"The group has invested significantly in land to achieve future growth, in a market place in which customer demand is robust and mortgage availability remains good. This positive trading environment, together with a substantial order book, bodes well for the full year and should enable the group to complete in excess of 10,000 new homes," Watson added.

Looking ahead, the housebuilder said its order book was 7.7% ahead at GBP1.5 billion and comprised of 5,485 homes as at March 11. For the full-year, Bellway said it expects an average selling price to exceed GBP280,000.

Bellway shares were up 3.1% at 3,145.00 pence per share on Tuesday.

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