Bellway PLC, a national housebuilder, has released its interim results for the half year ended 31 January 2024. The company reported a decrease in housing completions and revenue compared to the same period in the previous year. The underlying performance measures, including gross profit, operating profit, and earnings per share, also showed declines. The Group's net cash position decreased, but it maintained a robust and well-capitalized balance sheet. The interim dividend per share was reduced, reflecting the Board's target of underlying dividend cover for the full financial year.
Despite challenging trading conditions, Bellway's Group Chief Executive, Jason Honeyman, expressed confidence in the company's performance, stating that the gradual reduction in mortgage interest rates had helped improve reservations since the start of the new calendar year. The Group remains on track to deliver a volume output of around 7,500 homes in the full financial year and is well-positioned to build the order book through the second half, setting the stage for a return to growth in financial year 2025.
The financial performance was in line with the Board's expectations, with housing completions and total revenue meeting their targets. The Group's high-quality land bank, comprising a total of 94,492 plots, supports a strong outlet opening program and volume recovery. Bellway's robust balance sheet, with net cash of £76.6 million and low adjusted gearing, provides a solid foundation for navigating changing market conditions and capitalizing on future growth opportunities.
The company's responsible and sustainable approach, encapsulated in the "Better with Bellway" initiative, underscores its commitment to delivering quality homes while addressing the shortage of energy-efficient and affordable housing across the UK. Bellway's strategic land bank expansion and increased activity in the land market position the Group for longer-term growth prospects, supported by a relatively low initial capital outlay.