Bellway

http://www.bellwaycorporate.com/investor-centre

8/2/2018 update for the six months ended 31 January 2018

  • Housing revenue is expected to rise by in excess of 14% to around £1.3 billion (2017 – £1,142.9 million).
  • Further volume growth, with a 6.3% rise in the number of housing completions to 4,741 (2017 – 4,462).
  • The average selling price has risen by almost 7.8% to a record £276,000 (2017 – £256,140).
  • A 7.2% rise in the weekly reservation rate has contributed to a strong forward sales position, with the value of the forward order book growing by 15.7% to £1,297 million (2017 – £1,121 million).
  • Significant investment in land with 6,726 plots contracted (2017 – 6,287 plots) on sites with attractive rates of return
  • The balance sheet remains strong, with net bank debt3 of £131 million (2017 – £175.1 million), representing modest gearing4 of under 6% (2017 – 8.9%).

31 January 2018, Bellway p.l.c.’s ordinary issued share capital consists of 122,799,008 ordinary shares of 12.5 pence each with voting rights.  Bellway p.l.c. does not hold any shares in Treasury.

Annual Report 2017 Ended July 2017

Group revenue (£m) 2,558.6;+14.2%;Profit before taxation (£m) 560.7;+12.6%

EPS (p)370.6; +12.7%; Proposed total dividend per ordinary share (p) 122.0; +13.0%

Return on capital employed (%)(~) 27.6; -60bps

Bellway has over 70 years of home building experience, growing from a local northeast of England family-owned business to a national FTSE 250 housebuilder. increased the number of homes sold by 10.6%. We are proud to have been awarded 5 star homebuilder status by the Home Builders Federation (‘HBF’),

Number of homes sold (homes)9,644;+10.6%; Average selling price (£)260,354;+3.0% Owned and controlled land bank (plots)37,855(1); +8.2%

John Watson Executive Chairman

Jason Honeyman was appointed to the Board as Chief Operating Officer on 1 September 2017. Jason commenced employment with Bellway in January 2005 as Managing Director of the Thames Gateway division, becoming Southern Regional Chairman in December 2011.

NHBC health and safety incident rate 0.690; -9.9%

Customer care satisfaction (%)85.2; -50bps

HBF homebuilder status (star)5 ; +1

Demand for new housing remained strong across the country, with the Group taking an average of 187
reservations per week (2016 – 169), an increase of 10.7%. Site visitor numbers were ahead of the prior year and website traffic continued to rise.

Accordingly, the weekly reservation rate for the second half of the year increased by 14.8% to 209 (2016 – 182), seemingly unaffected by the General Election and the wider uncertainty arising from the ongoing EU negotiations. The cancellation rate remained low, at just 11% for the full year (2016 – 11%), reflecting strong underlying customer confidence.

The government’s Help to Buy schemecontinued to be an important selling tool, used widely across the group in 35% (2016 – 30%) of completions. In London, where the maximum equity loan percentage can be up to 40% of the property value, Help to Buy was used in 32% of completions.

The average selling price rose by 3.0% to £260,354 (2016 – £252,793) and the private average selling price rose by 6.3% to £296,018 (2016 – £278,403), the estimate that around 250,000 new homes are needed each year to keep up with demand

“The directors have proposed a final ordinary dividend for the year ended 31 July 2017 of 84.5p per share. Dividends paid during the year comprise a final dividend of 74.0p per share in respect of the year ended 31 July 2016, together
with an interim dividend in respect of the year ended 31 July 2017 of 37.5p per share.

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EPS 148.7p; 103.5; 230 for 2015
Dividend 34p; 25p; 77 for 2015
Average selling price up by 17.3%
Net Assets: 1.69B
Total Liabilities: 802.3m