Bellway hikes dividend as annual profits soar

Housebuilder Bellway today said its shareholders will receive a 50 per cent hike in their dividends after its annual profits jumped by a third.

Thew Newcastle-based group posted a pre-tax profit of £140.9 million for the year to 31 July, up from £105.3m the previous year. Revenues rose 10.6 per cent to £1.1 billion as average selling prices grew 3.4 per cent to £193,025.

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Chief executive Ted Ayres said: “We are hopeful that the improved trading conditions experienced over recent months will be maintained in the current financial year.

“Government support, both through the extension of the Help to Buy equity loan scheme to include Scotland, and the proposed extension to include Wales, together with the recent launch of the Help to Buy mortgage guarantee, should continue to assist those potential purchasers requiring a 95 per cent loan to value mortgage.”

The board proposed a final dividend of 21p a share, up from 14p last year, taking the total payout to 30p a share.