Trading Statement

BELLWAY PLC - Trading Statement

PR Newswire

London, February 6

Bellway is today updating the market with regard to its trading performance forthe six months ended 31 January 2013, prior to the announcement of the InterimResults on Tuesday 26 March.

The Group has completed the sale of 2,597 homes (2012 - 2,455), an increase of5.8% compared to the same period last year. The average selling price of homessold has increased by 2.3% to £187,000 (2012 - £182,753), derived fromcontinuing changes in product and geographic mix. The Board anticipates thatthe average selling price will continue its upward trend for the remainder ofthis financial year.

The operating margin continues to advance, primarily due to the increasingproportion of completions arising from higher margin land, acquired since thedownturn. As a result, the Board expects that the operating margin will exceed12.5% for the first six months of the year (2012 - 10.1%) and will continue toimprove throughout the rest of the financial year.

With bank facilities of £300 million, the Group retains its ability to takeadvantage of opportunities in the land market and has expended £145 million onland and land creditors (2012 - £105 million) in the six months to 31 January.As a consequence, the Group ended the period with modest net bank debt of £75million. The Board continues to focus on those opportunities which meet theGroup's minimum requirements in respect of return on capital and gross marginand has, accordingly, agreed heads of terms on a further 4,500 plots.

The demand for new homes remains resilient with the Group having recorded anaverage of 97 reservations per week since 1 August (2012 - 89), an increase of9%, arising mainly from continued investment in new sales outlets. Customers'ability to access higher loan to value mortgage finance through the NewBuy andMI New Home mortgage indemnity schemes has also benefitted the weekly salesrate, with these schemes having accounted for 11% of reservations taken. Theuse of other incentives continues to be used widely, although the use of sharedequity has been restricted to only 3% of reservations in the period (2012 -5%).

The order book at 31 January 2013 stands at 2,467 units (2012 - 2,359),representing a value of £453 million (2012 - £423 million). With 82% of thefull year target now secure, the Board expects to achieve volume growth ofaround 5% in the current financial year, assuming reservations over the springselling season follow their usual upward trend. The Group is therefore wellplaced to deliver further growth in profit and shareholder return through itscontinuing strategy of growth in volume, average selling price and operatingmargin.

FOR FURTHER INFORMATION PLEASE CONTACT:

TED AYRES, CHIEF EXECUTIVE AND KEITH ADEY, FINANCE DIRECTOR FROM 7:30 AM ONWARDS 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.