Interim Results

Bellway PLC 4 April 2001 NATIONAL HOUSEBUILDER BELLWAY p.l.c. TODAY (WEDNESDAY 4 APRIL 2001) ANNOUNCE THEIR INTERIM RESULTS FOR THE HALF YEAR ENDED 31 JANUARY 2001 THE CHAIRMAN SAID ' ....... TRADING RESULTS FOR THE SIX MONTHS TO 31 JANUARY 2001 ARE AT RECORD LEVELS ...... MARKET CONDITIONS ARE GOOD AND THERE IS A HIGH LEVEL OF INTEREST FROM HOMEBUYERS' HIGHLIGHTS Half Year Half Year Ended 31 Ended 31 January January 2001 2000 Turnover £278 m £249m +12% Homes sold 2,269 2,197 +3% Average selling price £117,900 £106,000 +11% Operating profit £37.5 m £32.9m +14% Operating margin 13.5% 13.2% +2% Profit before tax £35.1m £30.4m +15% Dividend per ordinary share 4.1p 3.6p +14% Ordinary dividend cover 5.3x 5.2x +2% Basic earnings per ordinary share 21.8p 18.8p +16% Net borrowings £86.1m £17.5m Shareholders' funds £355.7m £305.4m +16% Net asset value per ordinary share 307p 262p +17% BELLWAY p.l.c. CHAIRMAN'S STATEMENT Interim Results & Dividend I am delighted to report that the trading results for the six months to 31 January 2001 are at record levels. We sold 2,269 homes at an average price of £117,900 as against 2,197 homes at an average price of £106,000 in the previous comparable period. Turnover rose by 12% to £278 million and operating profit of £37.5 million increased by 14% which was assisted by an improved operating margin of 13.5%. Profit before tax for the half year rose by 15% to £35.1 million, a new high. Basic earnings per ordinary share rose 16% to 21.8p and the directors are pleased to declare an interim dividend of 4.1p per ordinary share, an increase of 14% over last year's interim dividend reflecting the directors' confidence in the future prospects of the Group. This dividend will be paid on Monday 2 July 2001 to all ordinary shareholders who are on the Register of Members on Friday 8 June 2001. Trading & Outlook Market conditions are good and there is a high level of interest from homebuyers. However, your Group's rate of progress is being tempered by a lack of availability of homes to sell. This is due to delays in the anticipated start dates of new developments caused by the protracted planning system and further exacerbated by the weather. Consequently the number of homes sold this year is expected to be at a similar level to last year's record performance but with higher selling prices. Given the strength of the market and our attention to satisfying the needs of the customer, we are confident for the future. It is particularly encouraging that the gentle upward trend in margins in recent years is continuing which should result in another excellent year with record profits at least in line with market expectations. The recent consolidation in the industry is generating opportunities to acquire both land and additional skilled staff. This should enable us to continue our policy of steady organic growth. We are in a very strong position both structurally and financially to take advantage of any opportunities as they arise. Expansion is key to Bellway's philosophy and we are determined to continue to focus on maximising the return on capital employed and operating margin, both of which are amongst the highest in the industry. We continue to examine technological advances both on site and in the office. In our perpetual quest to reduce costs, we are reviewing our methods of construction and we are also part of a joint initiative with suppliers and other housebuilders to progress development of B2B E-commerce in the housebuilding industry. This initiative should enable us to exchange orders and invoices electronically throughout the supply chain, thus improving efficiency. Land with Planning Permission Your Board plans to expand and strengthen the landbank even further in order to continue our enviable growth record. Our land buying policy continues to be focused on mixed use developments in urban areas and we are confident that our shareholders will continue to reap the benefits of this strategy in the future. At 31 January 2001 our land portfolio with planning permission had increased to 16,500 residential plots from 15,500 at 1 August 2000. This was achieved despite the difficult planning climate and contributed to borrowings increasing to £86.1 million from £17.5 million. In addition, at 31 January 2001 we had 3,900 plots owned or contracted where planning permission should be forthcoming in the short term. This figure excludes our substantial land holdings at Barking and our long term strategic land where we continue to increase the number of plots allocated in emerging local plans. Due to our increased focus on mixed use developments, we are involved in more commercial development which will be a growing source of revenue for us in the future. Customers & Employees We operate in a people business and customer satisfaction is our goal. Our recently expanded and improved Customer Care and Financial Services functions are further advances in this area. We continue to invest in training and this long term process will deliver rewards for all. As ever, we could not have achieved these excellent results without the loyalty, dedication and hard work of all our employees and I sincerely thank them on behalf of the Board and shareholders for their efforts. H C Dawe Chairman 3 April 2001 FOR FURTHER INFORMATION, PLEASE CONTACT JOHN WATSON, GROUP CHIEF EXECUTIVE OR ALAN ROBSON, GROUP FINANCE DIRECTOR WEDNESDAY 4 APRIL AT ING BARINGS, 60 LONDON WALL, LONDON EC2M 5TQ - TEL: 020 7767 1000 OR 0831 331191 (J WATSON - MOBILE) & 07775 732493 (A ROBSON - MOBILE) THURSDAY 5 APRIL 0831 331191 & 07775 732493 THEREAFTER 0191 217 0717 BELLWAY p.l.c. GROUP PROFIT AND LOSS ACCOUNT Half year Half year Year to to ended 31 January 31 January 31 July 2001 2000 2000 £m £m £m Turnover 277.8 249.4 634.3 ==== ==== ==== Operating profit 37.5 32.9 95.6 Net interest payable (including associated 2.4 2.5 6.5 undertakings) _____ _____ _____ Profit on ordinary activities before taxation 35.1 30.4 89.1 Taxation 10.5 9.1 27.2 _____ _____ _____ Profit on ordinary activities after taxation 24.6 21.3 61.9 Dividends on equity and non-equity shares 5.5 4.9 15.4 _____ _____ _____ Retained profit 19.1 16.4 46.5 ==== ==== ==== Dividend per preference share 4.75p 4.75p 4.75p Dividend per ordinary share 4.1p 3.6p 12.4p Earnings per ordinary share - basic 21.8p 18.8p 55.4p Earnings per ordinary share - diluted 21.7p 18.7p 55.3p BELLWAY p.l.c. GROUP BALANCE SHEET At At At 31 31 31 January January July 2001 2000 2000 £m £m £m £m £m £m Fixed assets Tangible assets 13.9 14.0 14.8 Investments 2.1 2.0 2.2 _____ _____ _____ 16.0 16.0 17.0 Current assets Stocks 599.4 544.1 508.5 Debtors 18.8 24.5 14.2 Cash at bank and in hand - - 37.5 _____ _____ _____ 618.2 568.6 560.2 _____ _____ _____ Creditors due within one year Bank borrowings 31.1 39.0 - Other creditors 179.8 157.7 167.7 _____ _____ _____ Net current assets 407.3 371.9 392.5 _____ _____ _____ Total assets less current 423.3 387.9 409.5 liabilities Creditors due after more than one year Bank borrowings 55.0 55.0 55.0 Other creditors 12.6 27.5 18.6 _____ _____ _____ 67.6 82.5 73.6 _____ _____ _____ NET ASSETS 355.7 305.4 335.9 ==== ==== ==== Capital and reserves Called up share capital 33.7 33.6 33.6 Reserves and share premium 322.0 271.8 302.3 _____ _____ _____ SHAREHOLDERS' FUNDS 355.7 305.4 335.9 ==== ==== ==== The interim accounts were approved by the Board of Drectors on 3 April 2001. The interim accounts have been prepared on the basis of the accounting policies adopted for the year ended 31 July 2000 in all material respects. These policies are detailed in the company's Annual Report and Accounts for that year. The taxation charge is calculated by applying the directors' best estimate of the annual effective tax rate to the profit for the period. The financial information for the two half year periods is unaudited and does not constitute statutory accounts within the meaning of the Companies Act 1985. The figures relating to the year ended 31 July 2000 are an extract from statutory accounts within the meaning of section 240 of the Companies Act 1985 which have been delivered to the Registrar of Companies and on which the auditors gave an unqualified audit report. BELLWAY p.l.c. GROUP CASH FLOW STATEMENT Half Year Half Year Year Ended 31 Ended 31 ended 31 January January July 2001 2000 2000 £m £m £m £m £m £m Cash (outflow) / inflow from operating (46.2) (28.7) 75.6 activities Net cash (outflow) / inflow from returns on investments and servicing of finance Interest paid (2.7) (2.8) (7.2) Interest received 0.7 0.4 0.8 Dividends paid - non-equity (0.9) (0.9) (1.9) ______ _______ _______ (2.9) (3.3) (8.3) Taxation (9.9) (5.8) (22.7) Net cash (outflow) / inflow from capital expenditure and financial investment Purchase of tangible fixed assets (1.0) (2.8) (5.8) Sale of tangible fixed assets 0.2 0.5 1.1 ______ _______ _______ (0.8) (2.3) (4.7) Equity dividends paid (9.4) (8.7) (12.6) ______ _______ _______ Net cash (outflow) / inflow before (69.2) (48.8) 27.3 financing Net cash inflow from financing Issue of ordinary share capital on exercise of share options 0.6 0.1 0.6 ______ _______ _______ (Decrease) / Increase in cash in period (68.6) (48.7) 27.9 ===== ===== =====

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Bellway (BWY)
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