Interim Management Statement

Bellway p.l.c. Interim Management Statement Friday 7 June 2013 Bellway is today updating the market with regard to its current tradingposition by issuing an Interim Management Statement in respect of the periodfrom 1 February to 31 May 2013. Market The Group's performance since the beginning of the second half of the financialyear has been encouraging, with strong consumer demand for new homes. Wideraccessibility to affordable, higher loan to value mortgages has led to visitornumbers and reservations being ahead of expectations and these have beenfurther enhanced by an increase in the number of active sales outlets. Trading Reservations since 1 February have averaged 160 per week, a 31% increasecompared with the same period last year and there has been an improvement incustomer interest since the launch of the government's Help to Buy scheme on 1April. Bellway's previous restriction on the use of shared equity incentives has nowbeen lifted due to the introduction of full government funding for Help to Buyshared equity loans. Whilst lenders' credit scoring procedures remain robust,Help to Buy continues to gather momentum, having been used in some 360reservations. The Board is therefore hopeful that this initial momentum sincelaunch can be maintained as more lenders begin to offer this product. The average selling price of reservations has increased as a result of changesin product mix, although on certain new sites, especially in the south, pricesachieved have been modestly above management's expectations. As a result, theaverage selling price of reservations taken since 1 February is £200,300, some5% ahead compared to the same period last year. It is anticipated that thisincrease will mainly benefit the average selling price of completions in thenext financial year. Land The Group has continued to invest in new land where the gross margin meets itsacquisition criteria of at least 20% and in doing so has expended £270 millionon land and land creditors since 1 August. In addition, the Group has heads ofterms agreed on a further 4,900 plots. The Group had net bank debt of £95 million at 31 May and remains wellpositioned to continue its investment in land, provided opportunities continueto offer attractive rates of return. Bellway retains its ability to beselective in its approach to site acquisitions with the required land alreadyin place to meet the Group's growth aspirations for the next financial year,together with a strong pipeline of land progressing through the planningsystem. Outlook As a result of its investment in land, Bellway is now operating from 223 sites(2012 - 213 sites) and the Board therefore expects that approximately twothirds of completions in the year ending 31 July 2013 will arise from landacquired since the downturn. This should result in the Group achieving around a200 basis point improvement in the operating margin, compared to the 11.4%achieved last year. Subject to construction delivery, Bellway has already secured its initialtarget of increasing volumes by at least 5% and the Board therefore now expectsto increase the number of legal completions by around 7% in the year ending 31July 2013. Furthermore, the Group has reservations in place with a value of £380 million for completion in the next financial year (2012 - £270 million). The Board is encouraged by the gradual improvement in market conditions and ishopeful that this will facilitate further organic growth through geographicexpansion. Given recent history and the wider economic uncertainties, adisciplined approach to land investment will be maintained, thereby leading toa sustainable enhancement in shareholder return. FOR FURTHER INFORMATION PLEASE CONTACT: TED AYRES, CHIEF EXECUTIVE AND KEITH ADEY, FINANCE DIRECTOR FROM 7:30 AMONWARDS ON 0191 217 0717. Certain statements in this announcement are forward-looking statements whichare based on Bellway p.l.c.'s expectations, intentions and projectionsregarding its future performance, anticipated events or trends and othermatters that are not historical facts. Such forward-looking statements can beidentified by the fact that they do not relate only to historical or currentfacts. Forward-looking statements sometimes use words such as `aim',`anticipate', `target', `expect', `estimate', `intend', `plan', `goal',`believe', or other words of similar meaning. These statements are notguarantees of future performance and are subject to known and unknown risks,uncertainties and other factors that could cause actual results to differmaterially from those expressed or implied by such forward-looking statements.Given these risks and uncertainties, prospective investors are cautioned not toplace undue reliance on forward-looking statements. Forward-looking statementsspeak only as of the date of such statements and, except as required byapplicable law, Bellway p.l.c. undertakes no obligation to update or revisepublicly any forward-looking statements, whether as a result of newinformation, future events or otherwise.