Source - RNS
RNS Number : 7348M
Bellway PLC
18 October 2016
 

National housebuilder Bellway announces today, Tuesday 18 October 2016, its preliminary results for the year ended 31 July 2016.

 

Highlights

 

Another year of substantial growth with earnings per share rising by a further 42%.

 


Year ended

31 July

2016

Year ended

31 July

2015

Movement

Revenue

£2,240.7m

£1,765.4m

+26.9%

Gross profit

£574.8m

£427.9m1

+34.3%

Gross margin

25.7%

24.2%1

+150 bps

Operating profit

£492.0m

£360.4m1

+36.5%

Operating margin

22.0%

20.4%1

+160 bps

Profit before taxation

£497.9m

£354.2m

+40.6%

Earnings per share

328.7p

231.5p

+42.0%

Proposed total dividend per share

108.0p

77.0p

+40.3%

 

§ Total revenue has risen by 26.9% to £2,240.7 million (2015 - £1,765.4 million) as a result of the number of homes sold rising by 12.5% to 8,721 (2015 - 7,752), a new record and the Group's seventh successive year of volume growth, together with a further rise of 12.9% in the average selling price to £252,793 (2015 - £223,821).

§ The strong trading performance has resulted in an operating margin of 22.0% (2015 - 20.4%1).  This has contributed to earnings per share ('EPS') rising by 42.0% to 328.7p (2015 - 231.5p) and the net asset value per ordinary share ('NAV') has increased by 18.4% to 1,522p (2015 - 1,286p).

§ The proposed total dividend per share has risen by 40.3% to 108.0p (2015 - 77.0p).

§ A disciplined approach towards investment has resulted in return on capital employed rising by 430 bps to 28.2%2 (2015 - 23.9%1,2).

§ Further controlled investment to deliver ongoing growth, with 9,555 new plots contracted in the year (2015 - 9,128 plots) on excellent land opportunities and 6 new operating divisions opened since 1 August 2013.

§ Strong balance sheet with net cash of £26.5 million (2015 - net bank debt of £38.5 million).

 

Commenting on the results, Chairman, John Watson, said:

 

"Bellway has delivered another record year, further increasing the number of new homes sold, which has resulted in a substantial growth in earnings.

 

"The excellent operating performance has facilitated further investment into the business and has enabled the Board to propose a final dividend of 74.0p per share, bringing the total dividend for the year to 108.0p per share.

 

"The long term outlook continues to be positive, supported by strong customer demand, a substantial forward order book and favourable trading conditions across all areas of the country where Bellway operates.  Whilst there is some uncertainty following the result of the EU referendum, trading since that date has remained resilient.  Bellway has invested significantly in high quality land opportunities and infrastructure over recent years.  As a result, with its strong balance sheet and structure of nineteen operating divisions, the Group is well placed to deliver additional value for shareholders through further disciplined volume growth in the current financial year."

 

 

FOR FURTHER INFORMATION, PLEASE CONTACT TED AYRES, CHIEF EXECUTIVE OR KEITH ADEY, FINANCE DIRECTOR FROM TUESDAY 18 OCTOBER - FRIDAY 21 OCTOBER ON 0191 217 0717.

 

 

1       Before exceptional item (note 3).

2       Calculated as pre-exceptional operating profit, divided by average capital employed.  Capital employed is equity and net bank debt.

 



Chairman's Statement

 

Introduction

 

I am delighted to report yet another excellent set of results for Bellway, with new records in respect of volume, operating margin and earnings.  The Group is taking advantage of the strong market conditions, continuing its disciplined growth strategy, whilst maintaining a strict focus on return on capital employed.  In doing so, earnings per share has risen further by 42.0% to 328.7p per share (2015 - 231.5p per share).

 

Strategy for growth

 

Notwithstanding the risks to the wider economy following the result of the EU referendum, the ongoing demand for new homes across the country is strong, supported by a low rate of unemployment and good availability of affordable mortgage finance, with this further enhanced by the government's continuing support through the Help to Buy scheme.  Interest rates remain low and the outlook is that this favourable trading environment will continue for the foreseeable future.

 

Bellway has a strong balance sheet and operational capacity for growth, trading from nineteen geographically spread divisions, six of which have been opened over the last three years.  Longer term, there remains a structural shortage of homes within the UK and Bellway, set against this favourable backdrop, is well placed to continue growing its contribution to the supply of new homes.

 

Long term value for shareholders

 

The aim of Bellway's growth strategy is to deliver enhanced long term value for shareholders through the payment of an increasing dividend, together with an ongoing increase in net asset value, arising from reinvestment of retained earnings in order to secure further growth. 

 

The Group has achieved a 619p growth in NAV since the 903p attained in July 2007, before the onset of the global financial crisis.  In addition, Bellway has paid dividends equivalent to 295.28p per share since July 2007, representing total growth in value of 914.28p per share and an accounting return of 101%.  Revenue is 65% higher than that achieved in July 2007 and profit after tax is over 2.4 times ahead.  The reinvestment of earnings back into the business continues to have a compounding effect on growth and this, together with a flexible dividend policy, is delivering long term and superior returns for shareholders. 

 

For the year ended 31 July 2016, the strong trading performance and resultant increase in earnings has resulted in the net asset value of the Group growing by 18.4% to 1,522p per share (2015 - 1,286p).  Furthermore, it has also enabled the Board to recommend a 42.3% increase in the final dividend to 74.0p per share (2015 - 52.0p), increasing the proposed total dividend per share for the year by 40.3% to 108.0p (2015 - 77.0p).  If approved the total dividend will be covered by earnings 3 times (2015 - 3 times).  For the foreseeable future and assuming the opportunity for growth remains unchanged, the Board expects to maintain a dividend cover of around 3 times earnings. 

 

People and supply chain

 

This record set of results could not have been achieved without the outstanding contribution of those who work for and with the Group, enabling Bellway to safely and responsibly increase the number of homes sold for the seventh successive year.  I would like to place on record the Board's gratitude to all those who have contributed to this outstanding performance.

 

 

John Watson

Chairman

17 October 2016



Chief Executive's Operating Review

 

Trading performance

 

Demand for new homes has remained robust throughout the year, with the Group taking an average of 169 reservations per week (2015 - 153), an increase of over 10% compared to last year.  Interest in new sites has been encouraging, with overall visitor numbers ahead of the prior financial year, whilst monthly 'hits' to the Bellway website continued to grow.  Customer confidence is robust and the cancellation rate for the year remained low at only 11% (2015 - 11%).

 

More recently, the result of the EU referendum on 24 June has cast some uncertainty with regards to the wider economic outlook.  Reassuringly, reservations net of cancellations, since that date until 31 July, were 13% ahead of the same period in the prior year.  The Bank of England's monetary policy response should help to at least maintain the favourable conditions in which customers are able to purchase a new home.

 

Throughout the year, the pricing environment has remained positive and sales prices achieved on reservations have generally been at, or slightly ahead of the assumptions made when sites were initially acquired.  Incentives have been utilised sparingly with their use low by historical standards.  One of the main selling incentives continues to be part exchange on selected developments, with this inducement being used in 7% (2015 - 8%) of reservations. 

 

Help to Buy continues to be an important government stimulus and has been used in 32% (2015 - 27%) of reservations.  In England, the extension of Help to Buy until 2021 has created additional visibility with regards to the ongoing availability of affordable, higher loan to value mortgage finance.  This further supports long term demand, aiding the Group when making investment decisions. 

 

In London, the increase in the maximum Help to Buy equity loan percentage to 40% on 1 February has helped widen access to mortgage finance for potential purchasers, further underpinning the investment in our London business.  Since the higher equity share loan was introduced, the use of Help to Buy in the Capital has risen to 39% of reservations.

 

The Group opened a new South Midlands division, located in Coventry in February 2016 and latterly it has opened a further division, located in County Durham, on 1 August 2016.  Bellway now has nineteen operating divisions, six of which have been opened in the three years since 1 August 2013.  The more established new divisions are all performing well and the newest divisions in Coventry and County Durham should make a positive contribution to completions and profitability in the year ahead. 

 

The table below shows the number and average selling price of homes completed in the year, analysed geographically, between private and social homes:-

 


Homes sold (number)


Average selling price (£000)


Private

Social

Total


Private

Social

Total

2016

2015

2016

2015

2016

2015


2016

2015

2016

2015

2016

2015

North

3,651

3,070

536

626

4,187

3,696


220.6

212.0

92.2

87.2

204.2

190.9

South

3,694

3,108

840

948

4,534

4,056


335.6

290.9

131.3

132.5

297.7

253.8

Group

7,345

6,178

1,376

1,574

8,721

7,752


278.4

251.7

116.1

114.5

252.8

223.8

 

The total number of completions has risen by almost 13% to 8,721 (2015 - 7,752) and has been positively influenced by the number of private homes sold rising by 18.9% to 7,345 (2015 - 6,178), representing 84% (2015 - 80%) of the total. 

 

Our northern divisions have performed well, benefiting from significant investment in high quality land and work in progress over recent years.  This, together with strong market conditions, has contributed to notable volume growth in divisions such as West and East Midlands, which completed the sale of 780 and 744 homes respectively.  Our new Manchester division, opened in August 2013, has also performed well, delivering 360 new homes, an increase of 100 compared to the prior year.  In the south, the market is also strong, with divisions such as Thames Gateway, North London and Essex all delivering in excess of 700 homes, resulting in record profits in each of these regions.

 

The average selling price has risen by 12.9% to £252,793 (2015 - £223,821), with the improvement driven by a higher proportion of private homes sold, continued investment in higher value locations, together with a modest benefit arising from house price inflation.  This focus on higher value areas has aided divisions such as West Midlands, Essex and Northern Home Counties to deliver increases in their average selling price in excess of 14%. 

 

In London, demand remains strongest in more affordable locations, which is principally where Bellway continues to focus its activities.  Our average selling price in London has risen by 30.7% to £377,118 (2015 - £288,514), firmly within the scope of Help to Buy.  The rise in average selling price has been influenced by an unusually low proportion of social completions, which represented only 4% (2015 - 14%) of homes sold in the Capital.  In addition, there has been a positive effect arising from the completion of a number of higher value apartments, at sites in locations such as Greenwich, Brentford and Park Royal.  Overall, London accounted for 14% (2015 - 19%) of the Group's completions and 21% (2015 - 24%) of housing revenue. 

 

Construction and material costs

 

There is still some upward pressure with regards to labour costs, particularly in the South East, where the availability of certain trades, predominantly ground workers, brick layers and scaffolders is most restricted.  These pressures are, however, manageable in the context of the growth of the Group.

 

Material cost increases have largely abated and whilst there still remains occasional availability issues, longer lead in times have been factored into build programmes and strong relationships with suppliers are helping to ensure that construction timetables are being met.

 

The Group does not directly import any materials from overseas and despite the volatility following the outcome of the EU referendum, the overall cost of any adverse currency fluctuations is expected to be minimal when considered as part of the overall cost of constructing a new home.

 

Planning and improving the land bank

 

The land market continues to produce attractive opportunities at good rates of return.  The planning environment is supportive and is generally favourable towards land buying, with the number of new planning permissions granted continuing to exceed national housing output.  There are however, a large number of local authorities that still do not have adopted local plans in place.  In addition, the conclusion of planning obligation agreements and the satisfaction of pre-commencement conditions, in the context of a complex planning environment, can often add cost and cause delay to site starts.  We await the detail of the amended Housing and Planning Act and in particular the obligations surrounding the provision of Starter Homes, but welcome the government's initiative to assist first time buyers to get onto the housing ladder.

 

Against this backdrop, the Group has continued its controlled investment in land, identifying and acquiring sites that meet or exceed its minimum hurdle rates in respect of both gross margin and return on capital employed.  Accordingly, the Group has expended a record £670 million on land and land creditors (2015 - £620 million) and has contracted to acquire 9,555 plots (2015 - 9,128 plots) across 88 sites (2015 - 88 sites), thereby ensuring it is well positioned to deliver further volume growth in the years ahead.  The Group has a disciplined approach towards land buying, assigning capital to opportunities in areas where demand is strongest and where returns are most attractive.  This has led to a geographically balanced approach to investment, with 46% of plots contracted in the north (2015 - 49%) and 54% in the south (2015 - 51%).

 

The table below analyses the Group's land holdings at 31 July:-

 




2016

2015






Owned and controlled plots


34,979

36,211

Comprising:-









DPP: plots with implementable detailed planning permission

24,879

21,411


Pipeline: plots pending an implementable DPP

10,100

14,800










Strategic plots with a positive planning status


6,300

6,000

 

 

 

The number of plots with an implementable detailed planning permission ('DPP') has risen by 16% to 24,879 (2015 - 21,411), representing 2.9 years supply (2015 - 2.8 years) at current rates of output.  The Group has all of its land in place with the benefit of DPP in order to meet this current year's planned growth target.  The increase in the number of plots with DPP reflects the success of our land and planning teams, both in acquiring new land and also in obtaining a planning permission on already owned or contracted land, with some 7,265 plots having been converted from the Group's land 'pipeline' during the year.  One such site on which the Group obtained DPP was Copenhagen Place in Limehouse, London, a small brownfield redevelopment opportunity acquired for £5 million in summer 2015.  This site was bought without any planning status, but our experience and strong knowledge of this local area helped secure DPP for 45 homes.

 

The number of plots within the land pipeline has reduced to 10,100 (2015 - 14,800), with these plots defined as those which either benefit from an outline planning permission, or are assessed as likely to obtain the benefit of a DPP within the next three years.  The reduction in the number of pipeline plots is in part attributable to our success in obtaining DPP on the 7,265 plots converted from the pipeline land bank during the year.  In addition, the Group disposed of its interest in Barking Riverside Limited, its joint venture company with the Greater London Authority, to London & Quadrant New Homes Limited.  As part of the disposal, Bellway entered into a new pre-emption agreement, which based on the existing outline planning permission, entitles it to purchase around 2,600 development plots on attractive commercial terms.  This represents some 2,100 fewer plots compared to the previous entitlement, which would have been available for purchase over the estimated remaining twenty year life of the scheme, provided Bellway made a significant, long term capital contribution to the onsite infrastructure costs.  The reduction in plots has been shown as a decrease in the pipeline land bank, resulting in a more concentrated residual land pipeline, accessible over a shorter time period and requiring less initial capital outlay.

 

The Group still continues to focus on acquiring land through its pipeline, often acquiring sites conditionally with a deposit.  This approach to land buying helps secure a medium term land supply, without consuming excessive capital.  Contracting land in this manner typically results in the acquisition of higher return, brownfield opportunities, where the planning prognosis is often positive and is supported by the government's presumption in favour of brownfield development.

 

In total, the Group's owned and controlled land bank, comprising land with DPP and land in the pipeline, consists of 34,979 plots (2015 - 36,211 plots), with brownfield land representing approximately 61% of these plots (2015 - 66%).

 

In addition to the owned and controlled land bank, the Group recognises that greenfield strategic land can be a valuable source of supply, more so as Bellway continues to expand and therefore requires a wide variety of land sources in order to meet the growth demands of the future.  The Group has therefore appointed three regional strategic land directors whose remit is to identify and acquire longer term land, further complementing the approximate 6% of additions in the year to the top tier of the land bank that have historically originated from strategic land assets.

 

Strategic land holdings have increased to 6,300 plots (2015 - 6,000 plots), with those reported representing only those plots that have a positive planning prognosis, being either identified for residential development in an emerging local plan or subject to a current planning application. 

 

Developing our people

 

The average number of people employed has risen by 9% to 2,366 (2015 - 2,164), which is in addition to those engaged indirectly, both through the provision of subcontractor labour and in associated supply chain industries, demonstrating the positive economic contribution arising from the increase in volume output.

 

Identifying, recruiting and retaining experienced, high calibre individuals remains the greatest constraint to long term growth for the wider industry.  Upward pressure with regards to salary costs has remained a feature over the past year, particularly in London and the South East, where the demand for skilled individuals is most pronounced.

 

The Group recognises its responsibility to contribute to reducing the industry wide skills shortage and also the importance of its people in delivering this outstanding set of results.  Accordingly, Bellway has increased the number of apprentices and graduates within the business by 14% to 83 people (2015 - 73) and has also continued to develop and invest in our site managers and assistant site managers, with 48% (2015 - 34%) of these individuals now having achieved NVQ Level 6 or higher.  Ongoing training is also important across the wider organisation, ensuring that Bellway continues to meet high standards in all aspects of its business activities.  This is reflected by the number of training hours undertaken by our employees increasing by 36% to 12,514 (2015 - 9,234).

 

Bellway has appointed a new Group Human Resources Director with the remit to further develop the Group's people strategy, initially focussing on attraction, development and retention of talent across the business.

 

Bellway4Good

 

Whilst growing the business, we wish to do so in a sustainable and ethical manner and accordingly, Bellway has for the second year in succession continued to set and monitor performance against a number of objectives under the banner of Bellway4Good, its corporate responsibility function.  This focusses on the principal areas of environment, construction, society and economy. 

 

Key achievements during the year include increasing the percentage of construction compounds fitted with energy saving devices to 84% (2015 - 52%), exceeding the minimum energy efficiency requirement on our new homes by 6%, as measured by the dwelling emission rate, improving waste diversion rates to 95.9% (2015 - 92.9%) and providing customer handover folders to home purchasers containing information on sustainable travel, local recycling centres and energy efficiency advice.

 

Bellway has also taken a proactive approach to the way in which it manages charitable engagement, undertaking a range of initiatives to support a number of different charities and in particular, its two chosen national charity partners, being British Heart Foundation and Construction Youth Trust.  We are pleased to report that our total charitable donations, made through a combination of employee fundraising, matched funding and direct donations amounted to £284,704  (2015 - £183,540), of which £74,704 (2015 - £37,530) was donated by employees.

 

A focus on customer care

 

Ensuring that our customers enjoy a positive experience when purchasing a new home is a key priority for the Group.  We offer a wide range of product to suit individuals and families, with varying budgets at different stages of their lives.

 

We strive to ensure that our product is built to a high standard, thus helping to reduce the expense of costly remedial work and minimise subsequent disruption for our customers.  We continue to focus on build quality and the efforts of our site managers have been rewarded, with 43 of them receiving NHBC Pride in the Job Awards (2015 - 33), the highest the Group has ever achieved and an increase of 30% compared to last year.

 

Customer feedback is important to us so that we can identify areas for improvement and build these into our future processes.  We invite all of our customers to participate in a survey, obtaining feedback across a number of key areas.  In order to obtain a true representation of where we can improve, we focus on six key questions, covering build quality, standard of finish and home condition, amongst other topics.  We use the results of these surveys to calculate an average overall customer care score which has risen by 190 bps to 85.7% (2015 - 83.8%).

 

In order to further improve our customer care processes, we have also invested in a Group Customer Care Manager, supplementing our existing divisional resources.

 

Building new homes safely

 

Ensuring the health and safety of all of our site operatives is of utmost importance and we therefore undertake regular onsite training for all of our site managers.  In addition to a focus on reducing accident rates, during the year we have placed added emphasis on dust suppression in an attempt to mitigate the risk to those individuals working on our sites.

 

We conduct regular health and safety inspections on all our sites using a combination of both in-house health and safety managers and externally appointed consultants.  During these inspections, each site is appraised against a number of criteria and appropriate action is taken where improvements can be made.  As a result of this approach, our NHBC health and safety incident rate has fallen again to 0.766 (2015 - 0.936), with a low score representing a lower incidence of health and safety contraventions.  This low score compares favourably when benchmarking against those companies that adopt a similar scoring metric.

 

In addition, we are pleased to report that five of the Group's site managers have been given NHBC Health and Safety Awards (2015 - nine), with two of these then going on to secure highly commended awards.

 

Current trading and outlook

 

Whilst delivering significant volume growth, the Group ended the year with an increased order book comprising 4,644 homes (2015 - 4,568 homes), with a value of £1,117.1 million (2015 - £1,087.9 million).  In the nine weeks since 1 August, the Group has taken an average of 162 reservations per week (2015 - 149), an increase of 9% compared to the same time last year.  As a result, as at 2 October the order book has grown further to 4,701 homes (4 October 2015 - 4,432 homes), with a value of £1,159.3 million (4 October 2015 - £1,032.9 million).  Sales prices on reservations taken during this period have continued to be in line with or slightly ahead of expectations.

 

From its structure of 19 operating divisions, the Group has the capacity to deliver around 11,000 new homes per annum and is well placed to increase this capacity, through the opening of further new divisions, should market conditions remain robust.  Given this capacity, the strong order book and encouraging start to trading, the Group should be able to deliver further, but more moderate growth in volume in the current financial year and beyond.  The extent of volume growth this year will depend on whether customer confidence is maintained and strong sales rates continue throughout the autumn and subsequent spring selling seasons.

 

The strength of the Group's balance sheet and divisional structure mean that Bellway is well placed to deliver its strategy of further volume growth over the longer term and this, together with a disciplined focus on return on capital employed, should result in additional value creation for shareholders.

 

 

Ted Ayres

Chief Executive

17 October 2016



Financial Review

 

Operating performance

 

Ongoing delivery of the growth strategy with another year of significant volume growth, together with further improvement in the average selling price, has resulted in housing revenue growing substantially, by 27.1% to a record £2,204.6 million (2015 - £1,735.1 million).

 

This, together with other revenue of £36.1 million (2015 - £30.3 million), principally comprising receipts from the usual disposal of the Group's ground rent portfolio, resulted in total revenue for the Group increasing by 26.9% to £2,240.7 million (2015 - £1,765.4 million).

 

The gross margin has risen to a record 25.7% (2015 - 24.2%1), with the acquisition of good quality land contributing to this improvement.  The positive effects of house price inflation, net of inevitable industrywide build cost increases over recent years, has also contributed to this improvement.

 

Increased output has helped improve the absorption of the administrative overhead base, which has fallen slightly to 3.7% of revenue (2015 - 3.8%), a reflection of a continued emphasis towards cost control.  This comparatively low ratio has been achieved notwithstanding the investment in resource in order to deliver ongoing growth.  In addition, there has been some upward pressure on salary costs, reflecting the continuing demand for good quality individuals.  The total administrative overhead has risen to £82.8 million (2015 - £67.5 million), with the prior year benefiting from a one-off profit of £2.8 million, principally arising from the disposal of a non-core residential estate maintenance business.

 

A strong trading performance has resulted in the operating margin rising by 160 bps to 22.0% (2015 - 20.4%1), a record for the Group.  This has contributed to the 36.5% rise in operating profit which grew to £492.0 million (2015 - £360.4 million1).

 

Barking Riverside

 

In addition to the strong operating performance, the Group recognised an exceptional profit of £17.3 million, arising on disposal of its interest in Barking Riverside Limited (note 3).

 

The disposal of Barking Riverside will result in a net cash inflow with a fair value of £43.5 million and will also relieve the Group from its substantial funding obligations with regards to the ongoing remediation and infrastructure requirements of this long term, capital intensive site.  The disposal provides the Group with the opportunity to reallocate underperforming capital into higher return land opportunities.

 

Net finance expense

 

The net finance expense has fallen slightly to £11.1 million (2015 - £13.1 million) and is mainly made up of imputed interest arising on land acquired on deferred terms, which has risen to £7.6 million (2015 - £6.6 million).  The remaining net interest expense principally relates to bank interest, comprising interest on drawn monies, commitment fees and refinancing costs on the Group's £500 million banking facilities.  This has fallen to £4.3 million (2015 - £6.5 million) reflecting the timing of tranche renewals.

 

Profitability

 

Profit before taxation has risen by 40.6% to £497.9 million (2015 - £354.2 million) and the Group incurred a corporation tax charge of £95.0 million (2015 - £71.1 million), reflecting an effective tax rate of 19.1% (2015 - 20.1%).  The Group's effective tax rate is below the standard rate of corporation tax of 20% (2015 - 20.7%), primarily as a result of the non-taxable disposal of Barking Riverside Limited, together with the benefit of an enhanced tax deduction for remediating previously developed, brownfield land.

 

Overall, profit after taxation has risen by 42.3% to £402.9 million (2015 - £283.1 million), resulting in EPS growing by 42.0% to 328.7p (2015 - 231.5p).

 

Cash flow and debt

 

Bellway remains highly cash generative and produced cash from operations of £650.5 million (2015 - £426.5 million) before increasing the amount of capital invested in land and work in progress, in order to facilitate the future growth of the business.  After taking this into consideration, the Group generated £249.4 million from operations (2015 - £98.1 million). 

 

After expending £82.4 million on tax, paying a dividend of £105.4 million and taking into consideration other minor cash inflows of £3.4 million, the Group ended the year with net cash of £26.5 million (2015 - net bank debt of £38.5 million), reflecting an ungeared balance sheet (2015 - gearing of 2.4%).

 

Land creditors, which are considered to be a source of longer term debt finance, stood at £304.2 million (2015 - £192.6 million) and continue to be used only when it is cost effective to do so.  Including land creditors, total debt stood at £277.7 million (2015 - £231.1 million), representing adjusted gearing of 14.9% (2015 - 14.7%).

 

Balance sheet

 

Investment in land has risen by 25.3% to £1,625.6 million (2015 - £1,297.0 million) as the Group continues to invest in order to secure future growth.  The amount invested in land with a detailed planning permission has increased by 31.9% to £1,373.1 million (2015 - £1,040.9 million) and is represented by 24,879 plots (2015 - 21,411 plots), reflecting the success of our land teams in acquiring or progressing land through the planning system.

 

Work in progress has risen to £836.1 million (2015 - £763.7 million) as significant investment has been made in order to meet the ongoing demand for new homes.  Bellway now has 9,621 plots under construction (2015 - 7,923 plots), including developments in the early stages of production on a number of London schemes, where completions are expected in later years.

 

There is a modest pension scheme deficit of £8.0 million (2015 - £7.5 million), which comprises assets of £51.9 million (2015 - £47.3 million), less liabilities of £59.9 million (2015 - £54.8 million).  The increase in the deficit is principally attributable to the reduction in corporate bond rates.

 

Delivering enhanced shareholder returns

 

The strong trading performance, together with a focus on balance sheet efficiency, has resulted in return on capital employed rising by 430 bps to 28.2%2 (2015 - 23.9%1,2).  Notwithstanding a conservative approach to debt and a lowly geared balance sheet, post-tax return on equity has risen by 410 bps to 23.5% (2015 - 19.4%).  This has led to an 18.5% rise in the net asset value to £1,867.0 million (2015 - £1,575.9 million), after accounting for the cash dividend payment of £105.4 million (2015 - £74.6 million).  The net asset value per share has risen by 18.4% to 1,522p (2015 - 1,286p), which together with the total proposed dividend of 108.0p (2015 - 77.0p), demonstrates another year of significant value creation for shareholders.

 

 

Keith Adey

Finance Director

17 October 2016

 



Group Income Statement

For the year ended 31 July 2016

 


Note

2016

2016

2016

2015

2015

2015



Pre-exceptional

Exceptional

item

Total

Pre-exceptional

Exceptional

item

Total



item

(note 3)


item

(note 3)




£000

£000

£000

£000

£000

£000









Revenue

2

2,240,651

-

2,240,651

1,765,405

-

1,765,405









Cost of sales

3

(1,665,892)

-

(1,665,892)

(1,337,464)

6,865

(1,330,599)

















Gross profit


574,759

-

574,759

427,941

6,865

434,806









Administrative expenses


(82,751)

-

(82,751)

(67,489)

-

(67,489)

















Operating profit


492,008

-

492,008

360,452

6,865

367,317









Profit on disposal of investment in joint venture

 

3

 

-

 

17,306

 

17,306

 

-

 

-

 

-









Finance income

4

1,186

-

1,186

643

-

643









Finance expenses

4

(12,326)

-

(12,326)

(13,719)

-

(13,719)









Share of result of joint ventures


(306)

-

(306)

(50)

-

(50)

















Profit before taxation


480,562

17,306

497,868

347,326

6,865

354,191









Income tax expense

5

(94,966)

-

(94,966)

(69,621)

(1,421)

(71,042)









 

Profit for the year *


 

385,596

 

17,306

 

402,902

 

277,705

 

5,444

 

283,149









* All attributable to equity holders of the parent.














Earnings per ordinary share - Basic

6



 

328.7p



 

231.5p

Earnings per ordinary share - Diluted

6



 

328.0p



 

230.8p

 

Group Statement of Comprehensive Income

For the year ended 31 July 2016

 



2016

2015



£000

£000





Profit for the period


402,902

283,149





Other comprehensive expense




Items that will not be recycled to the income statement:




Remeasurement losses on defined benefit pension plans


(1,806)

(3,239)

Income tax on other comprehensive expense


(136)

648





 

Other comprehensive expense for the period, net of income tax


 

(1,942)

 

(2,591)

 

Total comprehensive income for the period *


 

400,960

 

280,558





* All attributable to equity holders of the parent.






Group Statement of Changes in Equity

At 31 July 2016

 


Note

Issued capital

Share premium

Capital

redemption

reserve

Other reserves

Retained earnings

Total

Non-controlling interest

Total equity



£000

£000

£000

£000

£000

£000

£000

£000











Balance at 1 August 2014


15,273

166,945

20,000

1,492

1,162,420

1,366,130

(66)

1,366,064











Total comprehensive income for the period










Profit for the period


-

-

-

-

283,149

283,149

-

283,149

Other comprehensive expense *


-

-

-

-

(2,591)

(2,591)

-

(2,591)

 

Total comprehensive income

for the period


 

 

-

 

 

-

 

 

-

 

 

-

 

 

280,558

 

 

280,558

 

 

-

 

 

280,558











Transactions with shareholders recorded directly in equity:










Dividends on equity shares

7

-

-

-

-

(74,614)

(74,614)

-

(74,614)

Shares issued


41

2,067

-

-

-

2,108

-

2,108

Credit in relation to share options and tax thereon


 

-

 

-

 

-

 

-

 

1,796

 

1,796

 

-

 

1,796

Total contributions by and distributions to shareholders

 

 

 

41

 

2,067

 

-

 

-

 

(72,818)

 

(70,710)

 

-

 

(70,710)











 

Balance at 31 July 2015


 

15,314

 

169,012

 

20,000

 

1,492

 

1,370,160

 

1,575,978

 

(66)

 

1,575,912











Total comprehensive income for the period










Profit for the period


-

-

-

-

402,902

402,902

-

402,902

Other comprehensive expense *


-

-

-

-

(1,942)

(1,942)

-

(1,942)

 

Total comprehensive income

for the period

 

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

400,960

 

 

400,960

 

 

-

 

 

400,960











Transactions with shareholders recorded directly in equity:










Dividends on equity shares

7

-

-

-

-

(105,411)

(105,411)

-

(105,411)

Shares issued


21

1,134

-

-

-

1,155

-

1,155

Purchase of own shares


-

-

-

-

(6,864)

(6,864)

-

(6,864)

Credit in relation to share options and tax thereon


 

-

 

-

 

-

 

-

 

1,264

 

1,264

 

-

 

1,264

Total contributions by and distributions to shareholders


 

21

 

1,134

 

-

 

-

 

(111,011)

 

(109,856)

 

-

 

(109,856)











 

Balance at 31 July 2016


 

15,335

 

170,146

 

20,000

 

1,492

 

1,660,109

 

1,867,082

 

(66)

 

1,867,016

 

  * Additional breakdown is provided in the Group Statement of Comprehensive Income.

 

 

 

 



Group Balance Sheet

At 31 July 2016

 


Note

2016

2015



£000

£000

ASSETS




Non-current assets




Property, plant and equipment


14,904

14,774

Investment property


-

1,609

Investments in joint ventures


4,550

28,997

Other financial assets

3

-

-

Trade and other receivables


11,406

-

Deferred tax assets


2,490

2,761







33,350

48,141





Current assets




Inventories


2,548,339

2,135,298

Trade and other receivables


80,185

64,454

Cash and cash equivalents

8

58,968

41,491







2,687,492

2,241,243





Total assets


2,720,842

2,289,384









LIABILITIES




Non-current liabilities




Retirement benefit obligations


8,036

7,452

Trade and other payables


87,866

52,561

Deferred tax liabilities


314

333







96,216

60,346





Current liabilities




Interest bearing loans and borrowings


32,500

80,000

Corporation tax payable


50,500

37,730

Trade and other payables


674,610

535,396







757,610

653,126





Total liabilities


853,826

713,472













Net assets


1,867,016

1,575,912









EQUITY




Issued capital


15,335

15,314

Share premium


170,146

169,012

Capital redemption reserve

9

20,000

20,000

Other reserves


1,492

1,492

Retained earnings

9

1,660,109

1,370,160





Total equity attributable to equity holders of the parent


1,867,082

1,575,978

Non-controlling interest


(66)

(66)





Total equity


1,867,016

1,575,912





 

 

 



Group Cash Flow Statement

For the year ended 31 July 2016

 


Note

2016

2015



£000

£000





Cash flows from operating activities




Profit for the year


402,902

283,149





Depreciation charge


3,044

2,776

Exceptional profit

3

(17,306)

(6,865)

Profit on sale of property, plant and equipment


(74)

(247)

Loss / (profit) on sale of investment properties


187

(1,980)

Finance income

4

(1,186)

(643)

Finance expenses

4

12,326

13,719

Share-based payment expense


1,568

1,544

Share of post tax result of joint ventures


306

50

Income tax expense

5

94,966

71,042

Increase in inventories


(413,041)

(338,691)

Increase in trade and other receivables


(68)

(6,141)

Increase in trade and other payables


165,737

47,940

Proceeds from sale of available for sale portfolio - exceptional item

3

-

32,462





Cash from operations


249,361

98,115





Interest paid


(4,284)

(6,783)

Income tax paid


(82,384)

(61,895)





Net cash inflow from operating activities


162,693

29,437





Cash flows from investing activities




Acquisition of property, plant and equipment


(3,373)

(5,402)

Proceeds from sale of property, plant and equipment


273

403

Proceeds from sale of investment in joint venture - exceptional item

3

16,600

-

Proceeds from sale of investment properties


1,422

6,742

Increase in loans to joint ventures


(1,768)

(1,190)

Interest received


250

404





Net cash inflow from investing activities


13,404

957





Cash flows from financing activities




(Decrease) / increase in bank borrowings


(47,500)

50,000

Proceeds from the issue of share capital on exercise of share options 


1,155

2,108

Purchase of own shares by employee share option plans


(6,864)

-

Dividends paid

7

(105,411)

(74,614)





Net cash outflow from financing activities


(158,620)

(22,506)





Net increase in cash and cash equivalents


17,477

7,888





Cash and cash equivalents at beginning of year


41,491

33,603





Cash and cash equivalents at end of year

8

58,968

41,491









 

 

 

 



Notes

 

1.   Basis of preparation

 

Bellway p.l.c. is a company incorporated in England and Wales.

 

The financial information set out above does not constitute the Group's statutory financial statements for the years ended 31 July 2016 or 2015, but is derived from those financial statements.  Statutory financial statements for 2015 have been delivered to the registrar of companies, and those for 2016 will be delivered in due course.  The auditor, KPMG LLP, has reported on those financial statements; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 

The preparation of the financial statements in conformity with Adopted IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.  The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates.

 

The Group's activities are financed principally by a combination of ordinary shares and bank borrowings less cash in hand.  At 31 July 2016, net cash was £26.5 million having generated cash of £65.0 million during the year.  The Group has operated within all of its banking covenants throughout the year.  In addition, the Group had bank facilities of £500.0 million, expiring in tranches up to November 2020, with £467.5 million available for drawdown under such facilities at 31 July 2016.

 

The directors consider that the Group is well placed to manage business and financial risks in the current economic environment and have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.  Accordingly they continue to adopt the going concern basis in preparing the Annual Report and Accounts.

 

Whilst the financial information included in this announcement has been prepared in accordance with Adopted IFRSs, this announcement does not itself contain sufficient information to comply with Adopted IFRSs.  The Group expects to send its Annual Report and Accounts 2016 to shareholders on 11 November 2016.

 

The Group adopted the following amendment during the current financial year:

 

§ IAS 19 'Defined Benefit Plans: Employee Contributions'.  The amendment simplifies the accounting for contributions that are independent of the number of years of employee service.  The adoption of this amendment has not had any effect on the Group's profit for the period or equity.

 

The Group also adopted Annual Improvements 2010 - 2012 and Annual Improvements 2011 - 2013 during the current financial year.  The adoption of these has not had a material effect on the Group's profit for the period or equity.

 

The other standards and interpretations that are applicable for the first time in the Group's financial statements for the year ended 31 July 2016 have no effect on these financial statements.

 

 

 



Notes (continued)

 

2.   Segmental analysis

 

The executive Board (the Chief Operating Decision Maker as defined in IFRS 8) regularly reviews the Group's performance and balance sheet position at both a consolidated and divisional level.  Each division is an operating segment as defined by IFRS 8 in that the executive Board assess performance and allocates resources at this level.  All of the divisions have been aggregated in to one reporting segment on the basis that they share similar economic characteristics including:

 

§ National supply agreements are in place for key inputs including materials.

 

§ Debt is raised centrally and the cost of capital is the same at each division.

 

§ Sales demand at each division is subject to the same macro-economic factors, such as mortgage availability and government policy.

 

3.   Exceptional item

 

Exceptional items are those which, in the opinion of the Board, are material by size or nature, non-recurring, and of such significance that they require separate disclosure on the face of the income statement.

 

On 7 March 2016, the Group disposed of its entire interest in Barking Riverside Limited, its joint venture company with the Greater London Authority, to L&Q New Homes Limited. Bellway will receive total consideration with a fair value of £43.5 million over the next three years, including £17.0 million received in March on completion.  The deferred consideration is recognised as a 'fair value through profit or loss' financial asset.  In addition to the disposal proceeds, the Group will be relieved from its substantial funding obligations with regards to the ongoing remediation and infrastructure requirements of this long-term, capital intensive site.  The profit of £17.3 million, arising on disposal, has been treated as an exceptional item during the year ended 31 July 2016.

 

On 22 May 2015 the Group sold its remaining shared interest assets for cash consideration of £32.462 million.  This resulted in a profit on disposal of £6.865 million during the year ended 31 July 2015.  This was treated as an exceptional item.

 

4.   Finance income and expenses

 


2016

2015


£000

£000




Interest receivable on bank deposits

211

340

Interest in fair value through profit or loss

533

-

Other interest income

442

303







Finance income

1,186

643







Interest payable on bank loans and overdrafts

4,497

6,888

Interest on deferred term land payables

7,589

6,580

Interest element of movement in pension scheme deficit

240

251







Finance expenses

12,326

13,719




 



Notes (continued)

 

5.   Taxation

 

The effective rate of taxation for the year is 19.1% (2015 - 20.1%).  The taxation charge for the year is calculated by applying the standard corporation tax rate of 20.0% (2015 - 20.7%) to the profit before taxation, adjusted for non-taxable items and enhanced deductions.  The taxation expense also includes adjustments in respect of prior years and the year to 31 July 2016 benefits from the finalisation of prior year corporation tax returns.

 

The deferred tax assets and liabilities held by the Group at the start of the year that are expected to be realised after 31 March 2020 have been revalued at 18%, the substantively enacted corporation tax rate that will be effective when they are expected to be realised.

 

6.   Earnings per ordinary share

 

Basic earnings per ordinary share is calculated by dividing earnings by the weighted average number of ordinary shares in issue during the year (excluding the weighted average number of ordinary shares held by the Bellway Employee Share Trust (1992) (the 'Trust') which are treated as cancelled).

 

Diluted earnings per ordinary share uses the same earnings figure as the basic calculation.  The weighted average number of shares has been adjusted to reflect the dilutive effect of outstanding share options allocated under employee share schemes where the market value exceeds the option price.  Diluted earnings per ordinary share is calculated by dividing earnings by the diluted weighted average number of ordinary shares.

 

Reconciliations of the earnings and weighted average number of shares used in the calculations are outlined below:

 

 

Earnings

Weighted average number of ordinary shares

Earnings per share

Earnings

Weighted average number of ordinary shares

Earnings per share


2016

2016

2016

2015

2015

2015


£000

Number

p

£000

Number

p








For basic earnings per ordinary share

402,902

122,558,261

328.7

283,149

122,315,198

231.5

Dilutive effect of options and awards


291,845

(0.7)


380,546

(0.7)








For diluted earnings per ordinary share

402,902

 

122,850,106

328.0

283,149

122,695,744

230.8

 

7.   Dividends on equity shares

 


2016

2015


£000

£000




Amounts recognised as distributions to equity holders in the year:






Final dividend for the year ended 31 July 2015 of 52.0p per share (2014 - 36.0p)

63,712

43,996

Interim dividend for the year ended 31 July 2016 of 34.0p per share (2015 - 25.0p)

41,709

30,625

Dividends forfeited

(10)

(7)





 

105,411

 

 

74,614




Proposed final dividend for the year ended 31 July 2016 of 74.0p per share (2015 - 52.0p)

90,787

63,712

 

The 2016 proposed final dividend is subject to approval by shareholders at the Annual General Meeting on 13 December 2016 and, in accordance with IAS 10 'Events after the Reporting Period', has not been included as a liability in these financial statements.  The proposed final dividend, subject to shareholder approval, will be paid on 11 January 2017 to all ordinary shareholders on the Register of Members on 2 December 2016. The ex-dividend date is 1 December 2016.  At the record date for the final dividend for the year ended 31 July 2015 shares were held by the Trust on which dividends had been waived.

 

The level of distributable reserves are sufficient in comparison to the proposed dividend.

 



Notes (continued)

 

8.   Analysis of net (debt) / cash

 


At 1 August

Cash

At 31 July


2015

flows

2016


£000

£000

£000





Cash and cash equivalents

41,491

17,477

58,968

Bank loans

(80,000)

47,500

(32,500)





Net (debt) / cash

(38,509)

 

64,977

26,468

 

9.   Reserves

 

Capital redemption reserve

 

On 7 April 2014 the Group redeemed 20,000,000 £1 preference shares, being all of the preference shares in issue.  An amount of £20 million, equivalent to the nominal value of the shares redeemed, was transferred to a capital redemption reserve on the same date.

 

Own shares held

 

The Group holds shares within the Trust for participants of certain share-based payment schemes.  During the period the Trust made a market purchase of 342,143 shares (2015 - nil) at an average price of 2,006p (2015 - nil) and transferred 55,823 (2015 - 70,627) shares to employees and directors.  The number of shares held within the Trust, and on which dividends have been waived, at 31 July 2016 was 304,136 (2015 - 17,816).  These shares are held within the financial statements at a cost of £5.908 million (2015 - £0.273 million).  The market value of these shares at 31 July 2016 was £6.375 million (2015 - £0.430 million).

 



Principal risks and uncertainties

 

The Group has identified, evaluated and put in place measures to mitigate the principal risks faced by the business, as shown below.

 

 

Risk and description

Relevance to strategy

KPIs

Mitigation

Change in year

Land

Inability to source suitable land at appropriate gross margins and ROCE

 

§  Failure to buy land at the right margin would have a detrimental effect on future returns.

§  Insufficient land would affect our volume growth targets.

 

 

§  EPS.

§  ROCE.

§  Land bank with DPP.

§  Gross margin.

 

§  We prepare thorough pre-purchase due diligence and pre-purchase viabilities on all of our proposed land purchases. These are kept under regular review to ensure capital is invested appropriately.

§  Authorisation of all land purchases (regardless of value) in accordance with Group procedures at Head Office.

 

The land market remained competitive during the year. We have strengthened our land teams, both through new appointments and new regional roles.

Planning

Delays and complexity in the planning process

 

§  Failure to obtain planning within appropriate, pre-planned timescales would have a detrimental impact on our growth prospects and have an adverse effect on returns.

 

§  EPS.

§  ROCE.

§  Number of plots acquired directly into land with an implementable DPP.

§  Number of plots converted from medium-term pipeline land to land with DPP.

§  Number of plots in our pipeline land bank.

§  Number of plots identified in our strategic land bank with a positive planning status.

 

§  Centralised and divisional planning specialists provide advice and support to the divisions to assist with securing planning permissions.

§  Management of immediate, medium-term and strategic land to maintain an appropriate balance of land in terms of quantity and location.

 

Despite complexity in the planning process, this risk has continued to be well managed in the year, with the number of planning permissions granted increasing.

Construction Resources

Shortage of appropriately skilled sub-contractors and shortages of building materials at competitive prices

 

§  Failure to secure required resources causes delays in construction, impacting the ability to deliver volume growth targets.

§  Pricing pressure would impact returns.

 

 

§  EPS.

§  Employee turnover.

§  Number of homes sold.

 

 

§  Systems are in place to select, appoint, monitor and manage sub-contractors.

§  Competitive rates are in place for sub-contractors.

§  Group purchasing arrangements are in place.

§  Continued review of forward planning and key supplier performance.

§  We build long-term relationships with sub-contractors and always aim to treat them fairly and pay promptly.

 

This risk has increased slightly during the year due to increased competitive pressure in the sub-contractor labour market and as a result of uncertainties following the EU Referendum.

 

Health and Safety

There are significant health and safety risks inherent in the construction process

 

 

§  In addition to the moral obligation and the requirement to act in a responsible manner, injuries to any individual while at one of our business locations could delay construction and result in criminal prosecution, civil litigation and reputational damage.

 

 

§  Number of RIDDOR seven-day lost time accidents.

§  NHBC health and safety benchmark.

§  NHBC Health and Safety Awards.

 

§  The Board considers health and safety issues at every meeting.

§  Regular visits to sites by senior management (independent of our divisions) and external consultants to monitor health and safety standards and performance against the health and safety policies and procedures.

 

There have been no changes to this risk during the year.

Environment

The impact of our operations on the environment must be managed in a responsible and sustainable manner

 

§  Ineffective management of environmental matters would lead to financial loss, reputational damage and a potential inability to build and sell homes.

 

 

§  Percentage of compounds with energy saving devices.

§  Energy efficiency of our homes.

§  Waste diversion rates.

 

§  We have a range of procedures in place to address issues around ecology, biodiversity, resource use, waste management and sustainable sourcing, with the objective that a development should create an attractive and sustainable environment.

 

There have been no changes to this risk during the year.

Sales

There are a number of external factors that could affect our ability to generate sales:

§  Market uncertainty following the EU Referendum

§  Access to credit facilities

§  Mortgage availability

§  Interest rate changes

§  Government housing policy

 

 

§  The ultimate impact of these external factors would be on the ability to sell homes and apartments and on returns.

 

§  EPS.

§  ROCE.

§  Number of homes sold.

§  Forward order book.

§  Reservations rate.

§  Customer care satisfaction.

 

§  On-going monitoring of key business metrics such as reservation rates, cancellation rates and customer care scores.

§  Action plans developed from monitoring of metrics.

§  Active management of construction rates to match with sales rates.

§  Product range and pricing strategy determined based on regional market conditions.

§  Use of sales incentives, such as part exchange, to encourage the selling process.

§  Use of government-backed schemes to encourage home ownership.

 

This risk has increased slightly during the year due to uncertainties following the EU Referendum but partially offset by reducing interest rates.

 

Human Resources

§  Inability to attract and retain appropriate people

 

§  Failure to attract and retain employees with appropriate skills will affect our ability to perform and deliver its volume growth target.

 

 

§  EPS.

§  Employee turnover.

§  People who have worked for the Group for ten years or more.

§  Graduates and apprentices.

§  Number of homes sold.

 

 

§  We have appointed a new Group Human Resources Director who will oversee the development of our people strategy.

§  Competitive salary and benefits packages which are regularly reviewed.

§  Succession plans in place and key person dependencies identified.

§  Graduate and apprentice training programmes in place.

 

This risk has not changed during the year as the labour market has remained competitive.

Information Technology

§  Failure to have suitable systems in place and appropriate back up, contingency plans and security policies

 

§  Poor performance of our systems would affect operational efficiency, profitability and our control environment.

 

§  EPS.

 

§  Group-wide systems are in operation which are centrally controlled with an outsourced support function in place.

§  Continued investment in systems.

§  Regular review and testing of our security measures, contingency plans and IT security policies.

 

There have been no changes to this risk during the year.

Legal and Regulatory Compliance

§  Failure to comply with legislation and regulatory requirements

 

 

§  Lack of appropriate procedures and compliance would result in delays in land development and construction, have a detrimental impact on profitability and reputation and potentially lead to financial penalties and other regulatory consequences.

 

§  Volume growth.

§  EPS.

 

§  Central Secretariat, Legal and Technical functions advise and support divisions on compliance and regulatory matters.

§  Group-wide policies, procedures and training for key regulatory matters.

 

There have been no changes to this risk during the year.

 

Certain statements in this announcement are forward-looking statements which are based on Bellway p.l.c.'s expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts.  Such forward-looking statements can be identified by the fact that they do not relate only to historical or current facts.  Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", or other words of similar meaning.  These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.  Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements.  Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, Bellway p.l.c. undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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