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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