Bellway lifts interim dividend as profits rise

HOUSEBUILDER Bellway has lifted its interim dividend by 50 per cent after seeing its profits rise by almost the same margin during the first half of the year.

The UK’s fourth-largest builder also said it had enjoyed the strongest start to the spring selling season for several years, with reservations during the six weeks since 1 February running more than 10 per cent ahead of the same period a year ago.

Finance director Keith Adey said UK government initiatives such as NewBuy, which helps those with a small deposit get on the housing ladder, were beginning to “build momentum” and welcomed the new schemes outlined in last week’s Budget.

Among the plans announced by Chancellor George Osborne was Help to Buy, which offers interest-free loans worth up to 20 per cent of the value of new-build homes.

Adey said: “One of the biggest benefits for companies such as Bellway is that there’s no longer a requirement for the builder to invest capital in the shared equity product. This could give us an opportunity for more growth.”

Pre-tax profits at the Newcastle-based firm jumped to £59.9 million for the six months to 31 January, up from £40.6m a year earlier and ahead of the £55.9m pencilled in by analysts at Numis Security. Revenues grew 9.6 per cent to £502.5m.

Bellway said the number of homes sold rose to 2,597, from 2,455 a year ago, with the average selling price growing 2.6 per cent to £187,426.

Shareholders will receive an interim dividend of 9p a share and chief executive Ted Ayres said trading since the start of the second half was “encouraging”.