Bellway hikes dividend after strong first half

Housebuilder Bellway has announced a 50 per cent uplift to its interim dividend after its profits rose by almost the same margin during the first half of the year.

The Newcastle-based firm said pre-tax profits rose to £59.9 million for the six months to 31 January, up from £40.6m a year earlier, on revenues 9.6 per cent higher at £502.5m.

Bellway, the UK’s fourth-largest builder, said the number of homes sold rose 5.8 per cent to 2,597, with the average selling price growing 2.6 per cent to £187,426.

Shareholders will receive an interim dividend of 9p a share, up from 6p a year ago, and chief executive Ted Ayres said trading since the start of the second half was “encouraging”, with reservations in the six weeks since 1 February more than 10 per cent ahead of the same period last year.

Ayres said Bellway welcomed initiatives announced in last week’s Budget – including mortgage guarantees and interest-free loans – aimed at helping more people get on the housing ladder.

He added: “Whilst it is too early to assess the effect these measures may have, we remain hopeful that they will lead to improvements in mortgage accessibility.”