Bellway reports bumper profits, hikes dividend

26th Mar 2014 07:02

- Half-year profit surges 73.3 per cent- Increased volumes, selling price and margins- Confident of sustaining growth in years aheadUK residential property developer Bellway reported a stellar set of half-year results, driven by growth in volume, average selling price and operating margin and underlined its confidence in future trading with a 77.8 per cent hike in its interim dividend.The FTSE-250 listed firm said pre-tax profit surged 73.3% to £103.8m for the half-year ended January 31st 2014 while revenue for the period jumped 39.5% to £701.1m as demand was driven by low interest rates, more easily available credit and the government Help to Buy scheme. Net asset value per share increased to 1,046p from 1,001p at July 31st 2013 and earnings per share (EPS) rose 74.9% to 66.3p the year before. Gross marginincreased to 19.8% from 17.9%. The average selling price increased 13.1% to £212,071 and homes sold jumped to 3,245 from 2,597 the previous year. Its forward order book at March 9th climbed to £829.5m from £507.4m the year before.Chairman John Watson commented: "Bellway has made significant progress in the six months ended January 31st 2014."Bellway said its low net bank debt of only £16.4m provides it with significant balance sheet capacity for further land investment."The group's balance sheet and operational capacity, set against a backdrop of favourable market conditions, ensures that Bellway is well positioned to pursue further, sustainable volume growth in the years ahead," the housebuilder said.CJ