Bellway (BWY) delivered stellar results for the year to July 2014, with strong demand for homes across the UK boosting operating profits by more than two-thirds. The housebuilder, which cited an improvement in the supply of mortgage finance led by the government's Help to Buy scheme, rewarded shareholders with a 73 per cent hike in the dividend payout after posting a 21 per cent increase in the number of homes sold.
The group also benefited from a 10 per cent increase in the average selling price to £213,000, and from the opening of two new divisions in Manchester and the Thames Valley in August last year. Predictably, the buoyant London market provided a boost, but Bellway was also successful in the regions, noting demand for family housing in the north-east in particular.
Sale rates did moderate in the summer months. However, judging from Bellway's forward order book of £924m - up 36 per cent over the year - the prospect of interest rate increases has not dented consumer appetite unduly. As for the FCA's mortgage market review, chief executive Ted Ayres said more stringent checks on high loan-to-value mortgages should help ensure a sustainable supply of mortgage finance in the future.
Broker Panmure Gordon expects profit before tax and amortisation of £277m for the current financial year, giving EPS of 176p.
| BELLWAY (BWY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,532p | MARKET VALUE: | £1.9bn | |
| TOUCH: | 1,524-1,539p | 12-MONTH HIGH: | 1,715p | LOW: 1,333p |
| DIVIDEND YIELD: | 3.4% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 1,118p | NET CASH: | £5.1m | |
| Year to 31 July | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 0.77 | 44 | 29.7 | 10.0 |
| 2011 | 0.89 | 67 | 41.5 | 12.5 |
| 2012 | 1.00 | 105 | 65.5 | 20.0 |
| 2013 | 1.11 | 141 | 89.3 | 30.0 |
| 2014 | 1.49 | 246 | 157.0 | 52.0 |
| % change | +34 | +74 | +76 | +73 |
Ex-div: 11 Dec Payment: 14 Jan | ||||
