Partner Article

Newcastle’s Bellway PLC announces £1.48 billion record revenues

Newcastle-headquartered housebuilder Bellway PLC has announced record results of over £1.48 billion for the year ending July 31 2014.

The company revealed an increase of 21.2% in the number of homes sold to 6,85, an increase from 5,652 in 2013, as a result of the Group’s response to strong consumer demand.

Moreover, the focus on volume growth has contributed to a 75.8% increase in earnings per share to 157.0p (2013 - 89.3p), another record for the Group.

The total proposed dividend has been increased by 73.3% to 52.0p per ordinary share (2013 - 30.0p) whilst the company reported a disciplined approach to investment resulted in return on capital employed improving by 730 bps to 19.6% (2013 - 12.3%).

In addition, met asset value per ordinary share (‘NAV’) has increased by 11.7% to 1,118p (2013 - 1,001p).

The Group’s owned and controlled land bank has risen to 35,434 plots (2013 - 32,991) and this, together with net cash of £5.1 million (2013 - net bank debt of £5.8 million), provides operational and balance sheet capacity for future growth.

Chairman, John Watson, said: “This has been an exceptional year of progress for the Group in which we have delivered record revenue and profit.

“This increase in earnings has enabled the Board to propose a final dividend of 36.0p per share, bringing the total dividend payment for the year to 52.0p, another record for the Group.

“There has been a significant improvement in customer confidence during the year and this has enabled Bellway to accelerate the construction and delivery of much needed new homes.

“The outlook remains positive with a record forward order book and this should enable the Group to deliver volume growth of around 10% in the current financial year.”

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