Pre-Close Trading Update

Bellway p.l.c.                                 

                           Pre-Close Trading Update                            

                             Friday 8 August 2014                              

Bellway p.l.c. is today issuing a pre-close trading update for the year ended
31 July 2014 ahead of its preliminary results announcement on Tuesday 14
October 2014.

Highlights

  * Significant volume growth with a 21.2% increase in the number of housing
    completions to 6,851 (2013 - 5,652).
   
  * Further increase in average selling price to c. £213,000 (2013 - £193,025)
    as a result of ongoing changes in product and geographic mix, together with
    pricing improvements.
   
  * Excellent forward sales position with a substantial 36% growth in the value
    of the forward order book to a new record of £924.3 million (2013 - £679.5
    million).
   
  * Around £460 million expended on land and land creditors (2013 - £300
    million), securing sites that meet or exceed the Group's minimum
    acquisition criteria.
   
  * Balance sheet strength maintained with net cash of £5 million (2013 - net
    bank debt of £5.8 million) thereby providing significant capacity for
    future investment.
   
Ted Ayres, Chief Executive, commented:

"The Group has reacted positively to the continued strength of the UK housing
market, significantly increasing output to satisfy customer demand. The
favourable trading environment, together with the Group's national presence and
strong balance sheet, ensures that Bellway is well positioned to continue its
growth strategy and this, together with a strong focus on return on capital
employed, should lead to further enhancements to shareholder value."

Market Conditions and Trading

Customer demand has remained strong throughout the year, supported by an
improving economic outlook and positive mortgage market conditions. The
announcement in April 2014 that the Help to Buy shared equity loan scheme will
be extended to March 2020 should help sustain demand. This provides welcome
support to purchasers, primarily first time buyers, wishing to access the
housing market with a 5% deposit.

The Group has taken an average of 148 reservations per week (2013 - 128) during
the financial year, an increase of 15.6% compared to last year. Trading is
following the traditional seasonal pattern, with a strong performance in spring
followed by a gradual slow down in the private reservation rate over the summer
months.

The Mortgage Market Review (`MMR') and the recent announcement by the Bank of
England to restrict the availability of higher loan to income multiple
mortgages should help ensure a long-term sustainable supply of mortgage
finance. There have been minor delays in processing some mortgage applications
but the MMR has not had a material effect on the reservation rate.

Results

The Group has responded positively to the strong market conditions, having
completed the sale of 6,851 homes (2013 - 5,652), an increase of 21.2% compared
with last year.

All geographic regions have performed well, particularly the London boroughs,
where significant land investment over recent years has enabled the Group to
complete the sale of 1,236 homes (2013 - 865). In addition, new divisions which
opened in Manchester and the Thames Valley on 1 August 2013 are gaining
momentum, having contributed 98 and 101 completions respectively.

The average selling price of homes sold increased by some 10% to £213,000,
primarily due to changes in product and geographic mix. The Group also
benefited from some net pricing improvements as a result of a reduction in the
cost of incentives, with the average selling price of private homes sold having
increased by some 11% to £231,000 (2013 - £207,322). Furthermore, on certain
new, recently opened London sites, prices achieved have generally been in
excess of expectations at acquisition.

The strong growth in both volume and average selling price has led to an
overall increase in housing revenue to around £1,460 million (2013 - £1,091
million), a rise of over 33% and a new record for the Group.

Land Buying and Financial Position

The Group's land buying teams have continued to identify and acquire attractive
opportunities that meet or exceed minimum acquisition criteria in respect of
both gross margin and return on capital employed.

Whilst adopting this selective and disciplined approach, Bellway has spent
around £460 million on land and land creditors (2013 - £300 million), a record
for the Group. The significant investment in land ensures that Bellway is well
positioned to deliver further growth in volume, having secured all of its land
requirements for the year ahead. This robust position, together with a national
presence through its 15 operating divisions, ensures that Bellway can continue
to be selective in its approach to land buying.

The Group retains a strong balance sheet, having ended the year with net cash
of £5 million (2013 - net bank debt of £5.8 million), thereby maintaining its
ability to respond to future opportunities in the land market.

Outlook

The strength in demand has enabled the Group to increase the value of its
forward order book by 36% to £924.3 million at 31 July (2013 - £679.5 million),
representing 4,363 plots (2013 - 3,525 plots).

This record forward sales position, together with continuing consumer demand
for new homes, allows the Group to continue its strategy of sustainable volume
growth at attractive rates of return, thereby resulting in further enhancements
to shareholder value.

FOR FURTHER INFORMATION PLEASE CONTACT:

TED AYRES, CHIEF EXECUTIVE AND KEITH ADEY, FINANCE DIRECTOR FROM 7:00 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.