Strong half-year results for Newcastle's Bellway house builders

Today (March 20), Newcastle-headquartered Bellway has announced its interim results for the half-year ended January 31, 2018.

Firstly, volume growth has risen to 6.3 per cent totalling 4,741 homes, together with an average selling price growth of 7.7 per cent coming to £275,945. In 2017, this number stood at £256,140.

Furthermore, the trading performance resulted in the operating margin rising even more to 22.2 per cent. Last year, this stood at 22 per cent.

Earnings per share rose by 16.9 per cent, whereas return on capital has slightly gone up to 25.3 per cent. In 2017, this stood at 25.1 per cent.

Executive chairman, John Watson, said: “This has been another excellent six-month trading period for Bellway.

“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 per cent to 191.6p.”

Overall, the group has said it has been a “strong” half-year for trading, especially focusing on customer care as well as a significant investment in land. Around 6,726 plots have been contracted; in 2017, this figure stood at 6,287.

The forward order book, at March 11, was 7.7 per cent ahead at £1,524.9m, comprising of 5,485 homes.

For the full year, the board expects that volume will grow by around 600 homes, thereby enabling the group’s housing output to exceed over 10,000 new homes per annum for the first time in its history.

John added: “As previously announced, Mike Toms, chair of the board committee on executive directors’ remuneration, retired on December 13 2017, following almost nine years of service with Bellway.

“We welcome to the board, Jill Caseberry and Ian McHoul, as independent non-executive directors, who joined Bellway on October 1 2017 and February 1 2018, respectively.

“Jill has succeeded Mike as chair of the board committee on executive directors’ remuneration. I would like to take this opportunity to wish both Jill and Ian every success in their new roles.”

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