Bellway (BWY) Trading Update summary

Trading performance and financial results

• Housing completions rose 14.3% to 8,749 homes, with average selling price up to £316,000, both ahead of guidance.

• Housing revenue increased 17% to over £2.76bn, and underlying operating margin is expected to approach 11%.

• Private reservation rate per outlet per week grew 11.8% to 0.57, with bulk sales contributing to the increase.

• Forward order book at year-end increased to 5,307 homes valued at £1,519.4m.

• Net cash position at year-end was £42m, compared to net debt of £10.5m last year.

Market conditions and operational highlights

• Customer demand supported by stable mortgage rates and good mortgage finance availability.

• Build cost inflation remained low, and material/subcontractor availability was strong.

• Private completions rose to 79% of total output, with overall reservation and cancellation rates stable.

• Maintained five-star homebuilder status for the ninth year; 47 site managers won NHBC awards.

• Average number of outlets operated was 246, with a closing position of 249.

Land investment and capital allocation

• Contracted to purchase 8,120 plots across 51 sites, with a total contract value of £567m.

• Strategic land bank strengthened with 30 new option agreements.

• Adjusted gearing remains low at around 10%, supporting balance sheet strength.

• Dividend cover expected at around 2.5 times, with earnings growth driving higher dividends.

• Refined capital allocation framework to be detailed in October, focusing on cash generation and shareholder returns.