
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