Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Bellway eyes return to growth as first-half profits slump
(Sharecast News) - Interim profits at UK housebuilder Bellway dropped by more than a half on the back of a slump in housing completions and a deterioration in margins, but the company pointed to an improving economic outlook as mortgage rates continue to fall back. The company slashed its dividend for its first half to just 16p per share, down from 45p at the half-year stage a year earlier, but in line with its target of underlying dividend cover of 2.5 times for the full financial year.
In the six months to 31 January, housing completions dropped by 28.1% to 4,092, leading to a 29.6% fall in revenues to £1.27bn, with average selling prices dropping 2.4% to £309,278.
Like many other housing developers, Bellway has been hit by the rapid rise in interest rates over the past two years, which has had a big impact on affordability, demand and pricing.
Underlying per-tax profit for the first half dropped by 57% to £134.2m, with operating margins sinking to just 11.0% from 17.6% a year earlier, as lower volumes were met by rising costs and the use of sales incentives, along with extended site durations, Bellway said.
Net cash for the period was £76.6m, down from £292.5m the year before.
"Bellway has delivered another resilient performance in a period of challenging trading conditions," said chief executive Jason Honeyman.
"Although the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates throughout the first half has helped to ease affordability constraints and we have been encouraged by the improvement in reservations since the start of the new calendar year."
The company said it remained on track to deliver 7,500 homes in the fiscal year to 31 July, down from 10,945 previously, with Honeyman stating: "If market conditions remain stable, we are well-placed to build the order book through the second half which will serve as a platform for a return to growth in financial year 2025."
Bellway's shares were down just 0.1% at 2,630p by 0913 GMT.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.