Interim Management Statement

Bellway p.l.c.                                 

                         Interim Management Statement                          

                              Friday 7 June 2013                               

Bellway is today updating the market with regard to its current trading
position by issuing an Interim Management Statement in respect of the period
from 1 February to 31 May 2013.

Market

The Group's performance since the beginning of the second half of the financial
year has been encouraging, with strong consumer demand for new homes. Wider
accessibility to affordable, higher loan to value mortgages has led to visitor
numbers and reservations being ahead of expectations and these have been
further enhanced by an increase in the number of active sales outlets.

Trading

Reservations since 1 February have averaged 160 per week, a 31% increase
compared with the same period last year and there has been an improvement in
customer interest since the launch of the government's Help to Buy scheme on 1
April.

Bellway's previous restriction on the use of shared equity incentives has now
been lifted due to the introduction of full government funding for Help to Buy
shared equity loans. Whilst lenders' credit scoring procedures remain robust,
Help to Buy continues to gather momentum, having been used in some 360
reservations. The Board is therefore hopeful that this initial momentum since
launch can be maintained as more lenders begin to offer this product.

The average selling price of reservations has increased as a result of changes
in product mix, although on certain new sites, especially in the south, prices
achieved have been modestly above management's expectations. As a result, the
average selling price of reservations taken since 1 February is £200,300, some
5% ahead compared to the same period last year. It is anticipated that this
increase will mainly benefit the average selling price of completions in the
next financial year.

Land

The Group has continued to invest in new land where the gross margin meets its
acquisition criteria of at least 20% and in doing so has expended £270 million
on land and land creditors since 1 August. In addition, the Group has heads of
terms agreed on a further 4,900 plots.

The Group had net bank debt of £95 million at 31 May and remains well
positioned to continue its investment in land, provided opportunities continue
to offer attractive rates of return. Bellway retains its ability to be
selective in its approach to site acquisitions with the required land already
in place to meet the Group's growth aspirations for the next financial year,
together with a strong pipeline of land progressing through the planning
system.

Outlook

As a result of its investment in land, Bellway is now operating from 223 sites
(2012 - 213 sites) and the Board therefore expects that approximately two
thirds of completions in the year ending 31 July 2013 will arise from land
acquired since the downturn. This should result in the Group achieving around a
200 basis point improvement in the operating margin, compared to the 11.4%
achieved last year.

Subject to construction delivery, Bellway has already secured its initial
target of increasing volumes by at least 5% and the Board therefore now expects
to increase the number of legal completions by around 7% in the year ending 31
July 2013. Furthermore, the Group has reservations in place with a value of £
380 million for completion in the next financial year (2012 - £270 million).

The Board is encouraged by the gradual improvement in market conditions and is
hopeful that this will facilitate further organic growth through geographic
expansion. Given recent history and the wider economic uncertainties, a
disciplined approach to land investment will be maintained, thereby leading to
a sustainable enhancement in shareholder return.

FOR FURTHER INFORMATION PLEASE CONTACT:

TED AYRES, CHIEF EXECUTIVE AND KEITH ADEY, FINANCE DIRECTOR FROM 7:30 AM
ONWARDS ON 0191 217 0717.

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.