Bellway profits rise by 9%

March 27, 2019 / Keith Osborne
Bellway profits rise by 9%

Bellway’s six-month financial figures to 31 January 2019 show the housebuilder has increased revenue by 12% and net profit by 9%.

Its figures from the London Stock Market show revenue up by £164m to £1,488m last year leading to a rise in profit from £288.7m in 2018 to £313.9m this year.

The number of homes built in those six months has risen from 4,741 in the six months to 31 January 2018, to 5,007 homes in the first half of its current financial year. The average price for these is £293,832, up £17,887 (6.5%) from last year’s £275,945.

The report sees net bank debt of £26.6m, down from £131.4m the same time last year, and controlled land bank growing to from 39,994 to 42,261 plots over the same period. It also highlight’s the housebuilder’s ongoing 5-star HBF ranking, held for three consecutive years..

The company has a strong forward order book strong, with a value of £1,485.2m from 5,724 homes at 10 March 2019 compared to 5,485 homes at £1,524.9m on 11 Mar 2018.

Chairman Paul Hampden Smith, said: “Bellway has delivered another positive set of financial results driven by a strong operational performance. The continuation of our growth strategy has resulted in additional volume output and a further rise in the average selling price, with earnings increasing by 8.3% to 207.5p per share (2018 – 191.6p per share), a record for a first half trading period.

“Our approach is to deliver value for our shareholders over the longer term, through responsible business practices, whilst considering the effect of our activity upon all of our stakeholders and the wider communities in which we operate. Through adopting this approach, the Group has achieved substantial volume growth and following ten consecutive years of rising output, the number of homes sold by Bellway has risen by almost 150%. Not only has this growth made a significant contribution to the supply of much needed new homes, Bellway has achieved this whilst maintaining an ongoing focus on quality and customer care, retaining our status as a five-star homebuilder2 and further building upon our reputation as a leading, national housebuilder.

“As a result of the strong operational and financial performance, I am pleased to announce that the interim dividend will rise by 5.0% to 50.4p per share (2018 – 48.0p per share). Bellway retains significant capacity for further growth, both from its existing divisional structure and through the continued investment in new sites and divisions, where land opportunities meet or exceed the Group’s minimum return requirements. Accordingly, whilst Bellway can be flexible with regards to dividend payments, for the full financial year the Board expects to maintain a dividend cover of around three times earnings.”

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