Bellway hikes dividend 50 per cent and eyes major volume growth

15th Oct 2013 07:47

Buoyed by exceptional prospects for the UK housing market and a bulging order book, builder Bellway has lifted its final dividend 50 per cent. The FTSE 250 housebuilder enjoyed a superlative year to July 31st, with revenues up 10.6% to £1.11bn, and said customer demand since had grown even further, boosted by the government's Help to Buy mortgage assistance scheme. Since the year end the group has also looked to speed growth by opening two new divisions, in Manchester and the Thames Valley, which together with an order book up 54% to £679.5m at year-end and growing customer demand "could enable the group to achieve volume growth of up to 15% in the current financial year", it said.Chairman John Watson said: "More favourable mortgage conditions, a gradual improvement in consumer confidence, together with a continuing programme of site openings, have allowed the group to deliver its fourth consecutive year of earnings growth.He was enthused by profit before taxation increasing by almost 34% to £140.9m and pointed to a 36.3% earnings per share increase to 89.3p.With strong earnings growth, cash on the balance sheet and gearing of less than 1%, Watson said the board proposed a final dividend increase by 50% to 21.0p per share, still well covered by earnings. Bellway sold 5,652 homes during the year, up 8.2%, with the average selling price increased 3.4% to £193,025, and had a land bank up from 31,136 to 32,991 plots at year-end.Shares in Bellway were up 0.76% to 1,395p at 08:11 on Tuesday.OH