Interim Results

Bellway PLC
17 April 2007

NATIONAL HOUSEBUILDER BELLWAY p.l.c. TODAY, TUESDAY 17 APRIL, ANNOUNCE THEIR
INTERIM RESULTS FOR THE HALF YEAR ENDED 31 JANUARY 2007.


HIGHLIGHTS                                                               Half Year Ended
                                                                            31 January
                                                                     2007               2006
•        Homes sold                                                  3,264             2,958                  +10.3%
•        Average selling price                                      £173.3k           £166.6k                  +4.0%
•        Turnover                                                   £576.5m           £507.5m                 +13.6%
•        Operating profit                                           £107.8m            £96.2m                 +12.1%
•        Operating margin                                            18.7%             19.0%
•        Profit before taxation                                     £100.8m            £87.8m                 +14.8%
•        Basic earnings per ordinary share                           61.7p             54.1p                  +14.0%
•        Dividend per ordinary share                                16.45p             14.3p                  +15.0%
•        Land bank - plots with planning permission                 22,500             23,000
•        Total equity                                               £953.6m           £820.7m                 +16.2%
•        Net asset value per ordinary share                          833p               722p                  +15.4%
•        Return on average capital employed                          22.6%             23.2%




CHAIRMAN, HOWARD DAWE SAID 'IN A STABLE BUT COMPETITIVE HOUSING MARKET, BELLWAY
HAS SHOWN AGAIN HOW WELL IT CAN PERFORM IN SUCH AN ENVIRONMENT'.    

FURTHERMORE 'I AM DELIGHTED TO REPORT THAT BELLWAY'S PROFIT BEFORE TAX FOR THIS
PERIOD IS A NEW RECORD OF £100.8 MILLION, A LANDMARK FIGURE.....'.  

HE ADDED 'THE BOARD IS PLEASED TO CONTINUE ITS PROGRESSIVE DIVIDEND POLICY BY
ANNOUNCING AN INCREASE IN THE INTERIM DIVIDEND OF 15%......'.    

HE CONCLUDED 'OUR OBJECTIVE IS TO REMAIN FOCUSED ON THE DELIVERY OF LOWER VALUE
HOUSING……..' AND THAT 'THE BOARD BELIEVES ITS PROVEN OPERATIONAL MODEL WILL
CONTINUE TO DELIVER GROWTH FOR SHAREHOLDERS WELL INTO THE FUTURE'.



FOR FURTHER INFORMATION, PLEASE CONTACT JOHN WATSON, CHIEF EXECUTIVE OR ALISTAIR
LEITCH, FINANCE DIRECTOR

TUESDAY 17 APRIL - THURSDAY 19 APRIL
J WATSON: 07855 337007
A LEITCH: 07855 337001
THEREAFTER: 0191 217 0717


CHAIRMAN'S STATEMENT

In a stable but competitive housing market, Bellway has shown again how well it
can perform in such an environment.  In the six months ended 31 January 2007 the
Group has delivered volume growth in excess of 10%, operating profits have
increased by over 12% and earnings per share has risen by 14%.


Results

The number of homes completed increased from 2,958 to 3,264 in the six month
period and the average sales price of these homes increased by 4% from £166,600
to £173,300.  These sales produced turnover of £565.6 million and when combined
with sundry income of £10.9 million increased the Group's overall turnover by
more than 13% to £576.5 million.  In this incentive led and competitive market,
we are pleased to report an operating margin of 18.7%, compared to 19.0% last
year which resulted in an operating profit of £107.8 million, an increase of
12.1% compared to 2006.  Net financing costs have fallen to £6.9 million from
£8.4 million and are covered over 15 times whilst gearing remains low at just
under 20%.  I am delighted to report that Bellway's profit before tax for this
period is a new record of £100.8 million, a landmark figure and earnings per
share is also at record levels for the period, advancing 14% from 54.1p to
61.7p.


Dividend

The Board is pleased to continue its progressive dividend policy by announcing
an increase in the interim dividend of 15%, from 14.3p to 16.45p.  The interim
dividend will be paid on Monday 2 July to ordinary shareholders on the Company's
Register of Members at the close of business on Friday 8 June 2007.  The
ex-dividend date is Wednesday 6 June 2007.


Trading

Bellway has, for many years, benefited from a policy of forward selling and I am
pleased to report that the Group's forward order book at the end of March was
£732 million, the strongest ever and when aggregated with completions to date,
results in over 95% of this year's increased target for home completions having
now been secured.

The market generally remains competitive and incentives are still required to
conclude most transactions.  These incentives are not so evident in North East
England, North London, Scotland and Thames Gateway.  Bellway is finding that
demand for its homes is stronger below £250,000, especially around London and
within the Thames Gateway corridor.  The Group currently does not have as many
outlets as it would like in these two areas, however, it is hopeful of
increasing availability by the end of 2007.  In Scotland the market remains
strong and the Group continues to invest in significant land opportunities.

Elsewhere, our regeneration business is making good progress in Birmingham,
Liverpool and Middlesbrough and I am pleased to announce that Leeds City Council
has recently selected Bellway as its strategic partner to regenerate large areas
of East and South East Leeds.  A planning application for the first 750 new
homes has recently been submitted.  The Group's land holding at Barking is about
to receive an outline planning permission for 10,800 homes of which Bellway has
the exclusive right to develop 50% of the units with the balance of land sold
via a joint venture company with English Partnerships.

The Group has grown its owned or controlled land bank to around 40,000 plots.
In addition, there are in excess of 5,000 plots, typically on regeneration
sites, where Bellway is the preferred partner but does not, as yet, have the
necessary planning permission to commence development.



CHAIRMAN'S STATEMENT (continued)


People

The Board is extremely grateful to its employees, sub-contractors, suppliers and
partners, without whose continuing support and contribution these results would
not be possible.


Future Prospects

Over the last decade, Bellway has consistently delivered volume and earnings
growth in both buoyant and competitive markets.  To grow earnings in this
current market, the Group intends to increase the number of divisions and
outlets.  Our objective is to remain focused on the delivery of lower value
housing and to increase shareholder value through extending our enviable track
record in what is likely to remain a challenging market place.  The Board
believes its proven operational model will continue to deliver growth for
shareholders well into the future.





H C Dawe
Chairman


16 April 2007




CONSOLIDATED INCOME STATEMENT
                                                                  Half year           Half year               Year
                                                                      ended               ended              ended
                                                                 31 January          31 January            31 July
                                                                       2007                2006               2006
                                                                         £m                  £m                 £m

Revenue                                                               576.5               507.5            1,240.2

Cost of sales                                                       (439.7)             (384.1)            (947.9)

Gross profit                                                          136.8               123.4              292.3

Administrative expenses                                              (29.0)              (27.2)             (52.9)

Operating profit                                                      107.8                96.2              239.4

Finance income                                                          2.1                 1.2                2.9
Finance expenses                                                      (9.0)               (9.6)             (21.3)

Share of loss of associates                                           (0.1)                   -              (0.3)

Profit before taxation                                                100.8                87.8              220.7

Income tax expense                                                   (30.5)              (26.6)             (65.0)

Profit for the period                                                  70.3                61.2              155.7


Earnings per ordinary share - Basic                                   61.7p               54.1p             137.5p
                            - Diluted                                 61.0p               53.6p             136.2p

Dividend per ordinary share                                          16.45p               14.3p              34.5p



Consolidated Statement of Recognised Income and Expense
                                                                  Half year           Half year               Year
                                                                      ended               ended              ended
                                                                 31 January          31 January            31 July
                                                                       2007                2006               2006
                                                                         £m                  £m                 £m

Actuarial gain / (loss) on defined benefit pension scheme               1.6               (4.8)              (2.2)

Tax on items taken directly to equity                                 (0.5)                 1.4                0.7

Net income / (expense) recognised directly in equity                    1.1               (3.4)              (1.5)

Profit for the period                                                  70.3                61.2              155.7

Total recognised income for the period                                 71.4                57.8              154.2





CONSOLIDATED BALANCE SHEET
                                                                         At                  At                 At
                                                                 31 January          31 January            31 July
                                                                       2007                2006               2006
                                                                         £m                  £m                 £m
ASSETS
Non-current assets
Property, plant and equipment                                          13.3                18.5               13.8
Investment property                                                     1.7                 3.0                1.7
Investments in associates                                                 -                   -                  -
Other receivables                                                       8.2                 7.9                5.7
Deferred tax assets                                                     8.3                14.6               10.2
                                                                       31.5                44.0               31.4
Current assets
Inventories                                                         1,519.6             1,433.1            1,434.0
Trade and other receivables                                            40.0                54.8               26.5
Cash and cash equivalents                                               9.5                 9.0                2.3
                                                                    1,569.1             1,496.9            1,462.8

Total assets                                                        1,600.6             1,540.9            1,494.2

LIABILITIES
Non-current liabilities
Interest bearing loans and borrowings                               (154.0)             (256.0)            (159.0)
Retirement benefit obligations                                        (5.3)              (17.2)             (11.7)
Other payables                                                       (35.6)              (28.4)             (24.0)
                                                                    (194.9)             (301.6)            (194.7)
Current Liabilities
Interest bearing loans and borrowings                                (44.2)              (48.9)             (17.0)
Trade and other payables                                            (382.5)             (342.3)            (350.0)
Current tax liabilities                                              (25.4)              (27.4)             (29.0)
                                                                    (452.1)             (418.6)            (396.0)

Total liabilities                                                   (647.0)             (720.2)            (590.7)

Net assets                                                            953.6               820.7              903.5

EQUITY
Issued capital                                                         14.3                14.2               14.3
Share premium                                                         114.3               110.5              111.9
Other reserves                                                          1.5                 1.5                1.5
Retained earnings                                                     823.6               694.6              775.9
Total equity attributable to equity holders of the parent             953.7               820.8              903.6

Minority interest                                                     (0.1)               (0.1)              (0.1)

Total equity                                                          953.6               820.7              903.5




CONSOLIDATED CASH FLOW STATEMENT
                                                                  Half year           Half year               Year
                                                                      ended               ended              ended
                                                                 31 January          31 January            31 July
                                                                       2007                2006               2006
                                                                         £m                  £m                 £m
Cash flows from operating activities
Profit for the period                                                  70.3                61.2              155.7

Depreciation charge                                                     1.5                 1.5                3.1
Profit on sale of property, plant and equipment                       (0.2)                   -              (1.2)
Finance income                                                        (2.1)               (1.2)              (2.9)
Finance expenses                                                        9.0                 9.6               21.3
Share based payment charge                                              1.3                 1.1                2.6
Income tax expense                                                     30.5                26.6               65.0
Increase in inventories                                              (85.6)             (120.5)            (150.8)
(Increase) / decrease in trade and other receivables                 (15.4)              (23.6)                6.9
Increase in trade and other payables                                   36.3                 4.4               32.3

Cash from operations                                                   45.6              (40.9)              132.0

Interest paid                                                         (6.4)               (8.1)             (17.9)
Income tax paid                                                      (33.1)              (32.1)             (65.2)

Net cash inflow / (outflow) from operating activities                   6.1              (81.1)               48.9

Cash flows from investing activities
Acquisition of property, plant and equipment                          (1.8)               (2.9)              (4.8)
Acquisition of investment property                                        -               (3.0)              (1.7)
Proceeds from sale of property, plant and equipment                     1.0                 0.5                6.7
Interest received                                                       1.5                 1.2                3.0

Net cash inflow / (outflow) from investing activities                   0.7               (4.2)                3.2

Cash flows from financing activities
Increase / (decrease) in bank borrowings                               20.0                45.0             (97.0)
Proceeds from the issue of share capital on exercise of                 2.8                 1.6                3.1
share options
Purchase of own shares by employee share option plans                 (1.5)               (0.1)              (0.4)
Dividends paid                                                       (23.0)              (20.5)             (36.9)

Net cash (outflow) / inflow from financing activities                 (1.7)                26.0            (131.2)

Net increase / (decrease) in cash and cash equivalents                  5.1              (59.3)             (79.1)

Cash and cash equivalents at beginning of period                     (12.7)                66.4               66.4

Cash and cash equivalents at end of period                            (7.6)                 7.1             (12.7)



NOTES

1   Basis of preparation

The interim financial information has been prepared on the basis of the
accounting policies adopted in the Group's statutory financial statements for
the year ended 31 July 2006. These policies are set out in the Group's Annual
Report and Accounts 2006.


2   Status of financial information

The interim information for the half years ended 31 January 2007 and 31 January
2006 has not been audited nor reviewed by the auditors.

The information for the year ended 31 July 2006 does not constitute statutory
financial statements as defined in section 240 of the Companies Act 1985. Those
financial statements have been reported on by the Group's auditors and delivered
to the Registrar of Companies. The report of the auditors was unqualified and
did not contain statements under section 237(2) or (3) of the Companies Act
1985.


3   Taxation

The taxation charge for the half years ended 31 January 2007 and 31 January 2006
is calculated by applying the Director's best estimate of the annual effective
tax rate to the profit for the period.


4   Dividends

                                                                 Half year          Half  year               Year
                                                                     ended               ended              ended
                                                                31 January          31 January            31 July
                                                                      2007                2006               2006
                                                                        £m                  £m                 £m
Final dividend for the year ended 31 July 2006 of
20.2p per share (2005 - 18.25p)                                       23.1                20.7               20.7

Interim dividend for the year ended 31 July 2006 of
14.3p per share                                                                                              16.2

                                                                      23.1                20.7               36.9



Proposed interim dividend for the year ending 31 July
2007 of 16.45p per share (2006 - 14.3p)                               18.9                16.2



The proposed interim dividend was approved by the Board of Directors on 16 April
2007 and has not been included as a liability at the balance sheet date.


NOTES (continued)


5   Consolidated statement of changes in equity

                                                                 Half year           Half year               Year
                                                                     ended               ended              ended
                                                                31 January          31 January            31 July
                                                                      2007                2006               2006
                                                                        £m                  £m                 £m

Total recognised income and expense                                   71.4                57.8              154.2
Dividends on equity shares                                          (23.1)              (20.7)             (36.9)
Shares issued                                                          2.4                 1.6                3.1
Charge in relation to share options and tax thereon                    0.9                 2.3                3.7
Exercise of share options / share awards                             (1.5)               (0.1)              (0.4)

Net increase in total equity                                          50.1                40.9              123.7

Total equity at the start of the period                              903.5               779.8              779.8

Total equity at the end of the period                                953.6               820.7              903.5



6   Interim report

The interim accounts were approved by the Board of Directors on 16 April 2007
and copies are being posted to all shareholders. Further copies are available on
application to the Company Secretary, Bellway plc, Seaton Burn House, Dudley
Lane, Seaton Burn, Newcastle upon Tyne, NE13 6BE and are also available on our
website at www.bellway.co.uk






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