Bellway p.l.c.
Annual Report and Accounts 2024
About Us
Financial and Strategic Highlights 4
Who We Are 6
Strategic Report
Principal KPIs 10
Investment Case 14
Our Strategy and Business Model 16
Our Marketplace 22
Chair’s Statement 24
Chief Executive’s Market and Operational Review 26
Group Finance Director’s Review 30
‘Better with Bellway’ Overview 34
‘Better with Bellway’ Strategy and Priorities 39
Section 172 Statement 62
Key Stakeholder Relationships 63
Risk Management 79
Principal Risks 83
Task Force on Climate-related Financial Disclosures (‘TCFD’) 88
Sustainability Accounting Standards Board (‘SASB’) 96
Non-Financial and Sustainability Information Statement 100
Governance
Chair’s Statement on Corporate Governance 104
Board of Directors 106
Board Activities and Decisions 108
Board Leadership 110
Division of Responsibilities 111
Composition, Succession and Evaluation 115
Nomination Committee Report 116
Audit Committee Report 118
Remuneration Report 130
Sustainability Committee Report 153
Directors’ Report 154
Independent Auditor’s Report 158
Accounts
Group Income Statement 170
Group Statement of Comprehensive Income 171
Statements of Changes in Equity 172
Balance Sheets 174
Cash Flow Statements 175
Accounting Policies 176
Notes to the Financial Statements 178
Five Year Record 222
Other Information
Glossary 224
Advisers and Company Secretary 226
Shareholder Analysis and Financial Calendar 227
1 All figures relating to completions,
order book, reservations, cancellations,
and average selling price exclude the
Group’s share of its joint ventures, unless
otherwise stated.
2 Bellway uses a range of statutory
performance measures and alternative
performance measures when reviewing
the performance of the Group against
its strategy. Definitions of the alternative
performance measures, and a
reconciliation to statutory performance
measures, are included in note 28.
3 Underlying refers to any statutory
performance measure or alternative
performance measure before net legacy
building safety expense and exceptional
items (note 2).
4 Includes the Group’s share of land
owned and controlled through joint
venture partners comprising 905 plots
(2023 – 935 plots).
5 As measured by the Home Builders’
Federation using the eight-week NHBC
Customer Satisfaction survey.
6 Comparatives are for the year ended
31 July 2023 or as at 31 July 2023 (‘2023’)
unless otherwise stated.
Bellway p.l.c. Annual Report and Accounts 2024 1
Brammer family enjoying their
new Bellway home in Cheadle.
About Us
Financial and Strategic Highlights 4
Who We Are 6
2 Bellway p.l.c. Annual Report and Accounts 2024
Building
communities for
over 75 years
Growing from a local family business in 1946 to a FTSE
250 company, Bellway has been building high-quality
new homes across the UK for more than 75 years,
creating exceptional properties in desirable locations.
Father and daughter
site team, Ken and
Amy Somerville at
our Riverbrook Place
development, Crawley.
Street scene from
our Ridgewood
development
inStirling.
About Us
3Bellway p.l.c. Annual Report and Accounts 2024
Resilient performance

Year ended
31 July 2024
Year ended
31 July 2023 Movement
Housing completions 7,654 10,945 (30.1%)
Revenue £2,380.2m £3,406.6m (30.1%)
Underlying performance measures:
Gross profit (underlying) £381.1m
2,3
£687.3m
2,3
(44.6%)
Gross margin (underlying) 16.0%
2,3
20.2%
2,3
(420 bps)
Operating profit (underlying) £238.1m
2,3
£543.9m
2,3
(56.2%)
Operating margin (underlying) 10.0%
2,3
16.0%
2,3
(600 bps)
Profit before taxation (underlying) £226.1m
2,3
£532.6m
2,3
(57.5%)
Earnings per share (underlying) 135.2p
2,3
328.1p
2,3
(58.8%)
RoCE (underlying) 6.9%
2,3
15.8%
2,3
(890 bps)
Statutory and other measures:
Adjusting items (pre-tax) £42.4m £49.6m (14.5%)
Profit before taxation £183.7m £483.0m (62.0%)
Earnings per share 109.8p 297.7p (63.1%)
Proposed total dividend per share 54.0p 140.0p (61.4%)
Net asset value per share 2,913p
2
2,871p
2
+1.5%
Net (debt)/cash (£10.5m)
2
£232.0m
2
(104.5%)
Land bank (total plots) 95,292
4
98,164
4
(2.9%)
Summary
Resilient performance and well-positioned for strong multi-year growth.
Financial performance in line with our expectations
• Total housing completions of 7,654 homes (2023 – 10,945), at
anoverall average selling price of £307,909 (2023 – £310,306).
• Total revenue reduced by 30.1% to £2,380.2 million (2023 –
£3,406.6 million), due to the lower starting forward order book
and challenging trading conditions, particularly in the first half
ofthe financial year.
• Customer confidence gradually improved throughout the
year, driven by a moderation of both mortgage interest rates
and consumer price inflation, and an increase in wages.
Combined with an increase in outlet numbers, this led to a 13.8%
rise in the private reservation rate to an average of 124 per week
(2023 – 109).
• The private reservation rate per outlet per week increased by
10.9% to 0.51 (2023 – 0.46). The private reservation rate per outlet
per week in the second half of the financial year increased to
0.58 (six months to 31 July 2023 – 0.53) compared to 0.43 in
the first half (six months to 31 January 2023 – 0.38), driven by
the improving trading backdrop and aseasonal uplift through
the spring.
• The underlying operating margin was in line with previous
guidance at 10.0%
2,3
(2023 – 16.0%), with the reduction reflecting
the effect of lower volume output, cost inflation and the use
of targeted sales incentives, together with higher site-based
overheads due to the slower sales market since the summer
of 2022.
• Underlying profit before taxation was £226.1 million
2,3
(2023–£532.6 million) and in line with our expectations.
• Adjusting items relating to net expenses associated with legacy
building safety of £37.0 million (2023 – £49.6 million) and aborted
transaction costs of £5.4 million (2023 – £nil), resulted in reported
profit before tax of £183.7 million (2023 – £483.0 million).
• Underlying RoCE was lower at 6.9%
2,3
(2023 – 15.8%) due to the
decrease in both asset turn and the underlying operating margin.
The Group has a strong platform from which to increase volume
output, and the Board expects this to support an improvement in
RoCE from the current financial year.
High-quality land bank to support outlet opening
programme and volume growth ambitions
• The Group has a high-quality land bank which comprises 95,292
plots
4
(2023 – 98,164 plots).
• Bellway’s owned and controlled land bank of 48,887 plots (2023
– 53,629 plots) remains healthy and provides good visibility with
regards to outlet openings in the current financial year and beyond.
• The Group traded from an average of 245 outlets (2023 – 238),
an increase of 2.9%, driven by the strength of our land bank and
targeted approach to land acquisition, and was achieved despite
the delays in the planning system.
• Our site teams successfully opened 80 new sales outlets during
the year, and in financial year 2025 we currently expect to open
around 50 new sales outlets and maintain theaverage number
ataround 245.
Financial and Strategic Highlights
About Us
4 Bellway p.l.c. Annual Report and Accounts 2024
Clear strategic priorities
• Overall, during financial year 2024, the Group contracted to
purchase 4,621 owned and controlled plots (2023 – 4,715 plots)
across 27 sites (2023 – 35 sites) with a total contract value of
£344.8 million (2023 – £378.2 million).
• The improving economic outlook in terms of both lower
interest rates and house price stability has supported an
increase in our activity in the shorter-term land market in recent
months, with Heads of Terms agreed on around 8,100 plots at
29 September 2024.
• Building on the expansion of our strategic land bank in recent
years, the Group entered into option agreements for 35 sites
(2023 – 19 sites), which has enhanced our longer-term growth
prospects and overall land supply for a relatively low initial
capital outlay.
• Bellway’s strategic land bank comprises 45,500 plots (2023 –
43,600 plots), providing the Group with an excellent platform for
growth in the years ahead, with this further supported by the new
Government’s proposed reforms to the planning system.
Robust and well-capitalised balance sheet
• Bellway has a strong balance sheet, with low year-end net debt,
in line with expectations, at £10.5 million
2
(2023 – net cash of
£232.0 million), and modest adjusted gearing, inclusive of land
creditors, of 6.8%
2
(2023 – 4.0%).
• The Group has access to significant levels of committed debt
finance, totalling £530 million, and this provides ongoing
financial resilience while supporting land investment and our
growth ambitions. We expect to end the current financial year
maintaining a low level
2
of adjusted gearing.
• The proposed total dividend per share is 54.0p (2023 – 140.0p)
which reflects reduced underlying earnings, and is inline with
the Board’s previously stated policy of underlying dividend cover
of 2.5 times
2,3
.
‘Better with Bellway’ – our responsible
andsustainableapproach to business
• The efforts of our colleagues in delivering our ‘Better with
Bellway’ sustainability strategy have been reflected through
multiple industry awards, including ‘Large Housebuilder of
the Year’ and ‘Best Staff Development Award’ at the 2023
Housebuilder Awards.
• The Group’s flagship ‘Future Homes’ research project into carbon
reduction at the University of Salford has also won several
accolades, including ‘Best Sustainability Initiative’ at the 2023
Housebuilder Awards and ‘Major Project of the Year’ at the 2023
National Sustainability Awards.
• Supported by several initiatives across the business, strong
progress has been made in lowering our carbon footprint as
we continue reducing the Group’s emissions. This includes the
Group’s scope 1 and scope 2 carbon emissions, which have
reduced by 44.7% since our base year of 2019, and we are
in an excellent position to meet our goal of a 46% reduction
significantly ahead of the 2030 target.
• Timber frame construction offers a proven range of operational,
financial and environmental benefits. Following successful trials
across the Group in recent years, Bellway is targeting an increase
in timber frame usage, to around 30% of housing output by 2030,
and this will be delivered, in part, through ‘Bellway Home Space’,
our new proprietary timber frame production facility.
• Our ongoing focus on providing high-quality homes and
service for our customers has resulted in Bellway retaining its
position as a five-star
5
homebuilder for the eighth consecutive
year. Bellway remains fully committed to acting responsibly
with regards to building safety, and we continue to make good
progress on assessing and remediating legacy properties
through our dedicated Building Safety division. Since the start of
our remediation programme, the Group has spent £146.3 million
on legacy building safety issues.
• An additional net £37.0 million has been recognised in relation to
legacy building safety issues, as an adjusting item. This includes
an additional £15.3 million for structural defects in relation to an
isolated design issue with the reinforced concrete frame of an
apartment scheme in London, identified in financial year 2023.
Encouraging recent trading and improvingoutlook
• The combination of the improvement in trading and growth
in outlet numbers led to a strong increase in the forward
orderbook in financial year 2024. This comprised 5,144 homes
(2023 – 4,411 homes) and increased in value by 18.4% to
£1,412.9 million
2
(2023 – £1,193.5 million) at 31 July 2024.
• Since the start of the new financial year, customer demand
has remained robust and has been supported by an overall
reduction in mortgage rates over the summer.
• In the nine weeks since 1 August, and against a weak
comparative, the private reservation rate increased by 48.5%
to147 per week (1 August to 1 October 2023 – 99), representing
aprivate reservation rate per outlet per week of 0.59
(1 Augustto1 October 2023 – 0.41).
• The private reservation rate includes bulk investor sales,
onattractive financial terms, totalling 232 homes (1 August to
1 October 2023 – 71 homes) and representing a contribution
of0.10 to the private reservation rate (1 August to 1 October
2023–0.03).
• Reflecting recent trading and volume output, the forward
order book at 29 September 2024 remained at a healthy level,
comprised 5,109 homes (1 October 2023 – 4,636 homes) and had
a value of £1,427.9 million
2
(1 October 2023 – £1,232.3 million).
• The strength of the Group’s forward order book, outlet opening
programme and work-in-progress position provides Bellway with
an excellent platform to deliver a material increase in volume
output in financial year 2025.
• If market conditions remain stable, the Group is targeting to
deliver completions of at least 8,500 homes in the current
financial year (2024 – 7,654 homes), and as was the case in
financial year 2024, volume output is expected to be weighted
towards the first half (half year ended 31 January 2024 – 53.5%).
• We are aiming to retain a healthy forward order book at the
end of the current financial year (2024 – 5,144 homes) to serve
as a platform for further growth in volume output in financial
year 2026.
• Overall, pricing has remained firm across our regions, and in
financial year 2025 we currently expect the average selling price
to be around £310,000 (2024 – £307,909), and the underlying
operating margin to approach 11.0%
2,3
(2024 – 10.0%).
• The combination of Bellway’s operational and financial
strength leaves the Group very well-placed to deliver long-term
sustainable growth and ongoing value creation for shareholders.
About Us
5Bellway p.l.c. Annual Report and Accounts 2024
The Ashberry brand was launched in 2014 and is typically offered
on larger sites, alongside our Bellway brand. This provides two
differentiated outlets, offering greater choice for our customers.
This allows for improved sales rates, often exceeding what can
be achieved through the use of two Bellway outlets.
707
Homes sold
Bellway London was launched in 2018 to provide the London market
with a contemporary and cohesive identity that is recognisable across
the capital. This encompasses all of our developments in the London
boroughs, with a primary focus on the outer London boroughs and
commuter towns within the M25. Our property offerings range from
one-bedroom apartments to four-bedroom houses.
358
Homes sold
Bellways three brands represent our commitment to meeting the different needs
of our customers. Buying a home is one of the biggest decisions our customers
will ever make. Each brand offers choice to meet their needs, while ensuring
consistently high levels of quality and service.
Who We Are
Bellway is our main brand, established in 1946 with a passion for building
high-quality homes in carefully selected locations, designed to meet the
needs of families. To this day, we maintain these fundamental values,
combining our decades of expertise with the personalised local care
thatBellway is known for.
6,589
Homes sold
About Us
6 Bellway p.l.c. Annual Report and Accounts 2024
Divisional Office Locations
(including our Building Safety division)
Creating communities
acrossthe UK
20 trading
divisions
covering the main population centres across
England, Scotland and Wales
2,659 people
employed in the Group as at 31 July 2024
We currently operate from 20
divisions across the UK, covering
England, Scotland and Wales.
Our divisional structure allows our
experienced local management teams
to respond to specific local geographical
demands. Due to their detailed knowledge
about the areas surrounding our land
acquisitions, we are able to design and build
homes that meet high standards, and help
create strong local communities. In addition,
we have a dedicated Building Safety division,
a specialist team dedicated to assessing and
remediating legacy properties.
Motivated by
aclear vision
Our aim is to operate our business in an ethical
and sustainable manner, while simultaneously
building attractive, desirable and sustainable
developments where customers want to live
inharmony with existing communities.
About Us
7Bellway p.l.c. Annual Report and Accounts 2024