REG - Bellway PLC - Interim Results Announcement
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260324:nRSX7571Xa&default-theme=true
RNS Number : 7571X Bellway PLC 24 March 2026
24 March
2026
Bellway p.l.c. today announces its interim results for the half year ended 31
January 2026.
Robust first half performance, driving enhanced capital efficiency and
shareholder returns
Jason Honeyman, Chief Executive, commented:
"Bellway has delivered a robust first half performance in a challenging
market. While our industry continues to face several headwinds, we have seen
an improvement in customer demand and reservations since the start of the new
calendar year. At this stage, the situation in the Middle East has not had a
material impact on trading and, supported by our forward order book, we are on
track to deliver FY26 underlying operating profit within the range of £320m -
£330m(2,3).
The ongoing conflict in the Middle East heightens the risk of both
inflationary cost pressures and an impact to customer demand, and we have
already seen volatility return to the mortgage market. Notwithstanding this, I
am confident that our self-help and drive for capital efficiency will help
mitigate the impact on our strategy to increase cash generation and
shareholder returns.
Bellway has a strong balance sheet and land bank, and under stable market
conditions, the Group is well-positioned to continue delivering volume growth
and much needed high-quality new homes in the years ahead."
Financial highlights
§ Growth in total housing completions of 2.7% to 4,702 homes (2025 - 4,577)
at an average selling price of £322,180 (2025 -
£310,581).
§ Underlying operating profit increased by 1.5% to £159.0m(2,3) (2025 -
£156.6m) and the underlying operating margin reduced to 10.5%(2,3) (2025 -
11.0%).
§ Net adjusting items relating to legacy building safety, before taxation,
totalled £10.7m (2025 - £9.4m). This comprised an adjusting finance expense
in line with previous guidance, of £6.5m (2025 - £7.3m) and £4.2m (2025 -
£2.1m) for the net increase in overall cost estimates.
§ Adjusted operating cashflow in the period was £314.1m(2,3) (2025 -
£366.1m) and the Group is on track to deliver a significant increase in
adjusted operating cashflow in the second half of the financial year.
§ The interim dividend has increased to 23.0p per share (2025 - 21.0p) and
underlying dividend cover for the full financial year is expected to be 2.5
times(2,3). The £150m share buyback launched on 14 October 2025 is
progressing well, with around £64m of shares repurchased as at 13 March 2026.
§ Well-capitalised balance sheet with modest period-end net debt of
£72.0m(2) (2025 - £8.0m), after dividends and share buybacks totalling
£105.3m. In line with our strategy, adjusted gearing, including land
creditors, remains low at 10.3%(2) (2025 - 8.5%).
Operational highlights
§ The private reservation rate per outlet per week, including bulk sales, was
0.47 (2025 - 0.51). The private reservation rate excluding bulk sales was 0.46
(2025 - 0.45).
§ We have maintained a strong land bank which at 31 January 2026 comprised a
total of 94,393 plots(4) (2025 - 95,506) and included 47,793 owned and
controlled plots(4) (2025 - 49,406), providing good visibility on outlet
openings.
§ Reflecting the strength of our land bank and drive for capital efficiency,
we have continued with a disciplined approach to land acquisition and
contracted to purchase 4,721 owned and controlled plots (2025 - 5,246) during
the first half.
§ The Group traded from an average of 244 outlets during the period (2025 -
248), in line with our expectations, with a closing position of 238 outlets as
at 31 January 2026.
§ We have maintained a strong strategic land bank comprising 46,600 plots
(2025 - 46,100) which underpins our longer-term growth prospects for a
relatively low initial capital outlay.
§ We successfully opened our new timber frame facility, Bellway Home Space,
in January and have started supplying our divisions with frames for planned
housing completions in the second half of FY26.
§ 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 tenth consecutive year.
Recent trading and outlook
§ In the six weeks since 1 February, the private reservation rate per outlet
per week, including bulk sales, was 0.70 (1 February to 16 March 2025 - 0.76).
The private reservation rate excluding bulk sales was 0.66 (2025 - 0.66).
§ The forward order book at 13 March 2026 comprised 5,311 homes (16 March
2025 - 5,582 homes) with a value of £1,551.6m(2) (16 March 2025 -
£1,581.0m).
§ Volume output in FY26 is now expected to be ahead of previous guidance at
between 9,300 and 9,500 homes (31 July 2025 - 8,749). The overall average
selling price is now anticipated to be around £325,000 (31 July 2025 -
£316,412). The increase from the previous guidance of around £320,000 is
mainly due to changes in product mix, including the expected conversion of
completions from our bulk sales pipeline.
§ We expect the FY26 underlying operating margin to be similar to the first
half at around 10.5%(2,3) (31 July 2025 - 10.9%) and, supported by our forward
order book, we are on track to deliver FY26 underlying operating profit within
the range of £320m - £330m(2,3).
Notes and definitions
- 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.
- Comparatives are for the half year ended 31 January 2025 or as at 31
January 2025 ('2025') unless otherwise stated.
1 The definition of capital employed has been updated to deduct net
cash. This had no impact on the comparative figures. This was done to ensure
consistency in the calculation of the performance measure with other companies
in the housebuilding sector to allow for more meaningful comparison (note 15).
2 ( ) Bellway uses a range of statutory performance measures and
alternatives 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
15.
3 Underlying refers to any statutory performance measure or alternative
performance measure before net legacy building safety expense and other
exceptional items (note 2).
4 Includes the Group's share of land owned and controlled through joint
venture partners comprising 740 plots (2025 - 873 plots).
5 As measured by the Home Builders' Federation using the eight-week NHBC
Customer Satisfaction survey.
Analyst presentation, webcast and conference call
There will be an analyst presentation held at the offices of Deutsche Numis at
9.00am today. The presentation will be hosted by Jason Honeyman, Chief
Executive and Shane Doherty, Chief Financial Officer. A listen-only webcast
and conference call will accompany the presentation.
To join the webcast, go to the Bellway p.l.c. corporate website,
www.bellwayplc.co.uk/investor-centre
(http://www.bellwayplc.co.uk/investor-centre) .
To join via the conference call, participants should dial +44 (0)33 0551 0200
and quote 'Bellway' when prompted by the operator. A playback facility will be
available on our corporate website shortly after the presentation has
finished.
For further information, please contact:
Analyst and investor enquiries
Gavin Jago, Group Investor Relations Director
investor.relations@bellway (mailto:investor.relations@bellway) .co.uk
0191 217 0717
Media enquiries
Paul Lawler, Group Head of Communications
paul.lawler@bellway (mailto:paul.lawler@bellway) .co.uk
07813 392 669
Sodali & Co (Financial PR)
Justin Griffiths
Victoria Heslop
Madeleine Gordon-Foxwell
bellway@sodali.com
0207 100 6451
Chief Executive's Market and Operational Review
Market
Similar to the prior financial year, customer demand was impacted by a
prolonged period of uncertainty ahead of the Government's Budget in late
November. While we did not experience a typical seasonal step-up in
reservations during the autumn, trading was stable and followed by a notable
increase in January 2026.
Headline pricing across our regions has remained broadly stable, with
incentives averaging between 4.5%-5.0%. This represents an increase compared
to incentive levels of around 4% in the comparative period, and they have
remained at the upper end of this range and an important element in driving
reservation rates in the early part of the spring selling season.
The private reservation rate in the first half was 10.2% lower at an average
of 114 per week (2025 - 127), with the reduction primarily driven by a lower
number of bulk sales. The Group has a good pipeline of bulk sale
opportunities, and we expect a higher level of conversion in the second half
of the financial year.
The private reservation rate per outlet per week, including bulk sales, was
0.47 (2025 - 0.51). The private reservation rate excluding bulk sales
increased slightly to 0.46 (2025 - 0.45). The overall reservation rate,
including social homes, was 7.5% lower at 148 per week (2025 - 160) and the
cancellation rate remains low at 13% (2025 - 14%).
Overall customer demand was supported by good availability of mortgage finance
and relative stability in mortgage interest rates during the period, although
affordability remains constrained for many buyers and particularly those
customers requiring higher loan-to-value mortgages. In this regard, and to
make meaningful headway against its ambitious housing targets and complement
its planning reforms, we reiterate that the Government must make a commitment
to ease demand-side pressures by introducing essential financial support for
first-time buyers.
High-quality land bank
The strength and depth of the Group's land bank support our growth plans and
largely replacement-only land strategy. We have continued with our disciplined
approach to land acquisition, and the table below shows the Group's land
holdings:
31 January 31 January
2026 2025
DPP: plots with implementable detailed planning permission 29,453 31,133
Pipeline: plots pending an implementable DPP 17,600 17,400
Bellway owned and controlled plots 47,053 48,533
Bellway share of land owned and controlled by joint ventures 740 873
Total owned and controlled plots(4) 47,793 49,406
Strategic land holdings 46,600 46,100
Total land bank(4) 94,393 95,506
Bellway's owned and controlled land bank comprises 47,053 plots (2025 - 48,533
plots), including 29,453 plots (2025 - 31,133 plots) with an implementable
detailed planning permission ('DPP') and 17,600 pipeline plots (2025 - 17,400
plots). This represents a land bank length of 5.3 years (2025 - 6.0 years)
based on the last 12 months' legal completions.
During the first half the Group contracted to purchase 4,721 owned and
controlled plots (2025 - 5,246 plots) across 15 sites (2025 - 32 sites) with a
total contract value of £226.5m (2025 - £378.2m). This included a large site
comprising around 1,900 plots converted from our strategic land bank in the
Dunfermline Strategic Development Area, which will act as an anchor site to
support growth for both our Scotland West and Scotland East divisions. We also
have a good future pipeline of potential acquisitions, with Heads of Terms
agreed on around 5,000 plots at 13 March 2026 and, reflecting our largely
replacement-only land strategy, we expect overall plots contracted in FY26 to
be similar to volume output.
The Group traded from an average of 244 outlets in the period (2025 - 248), in
line with our expectations, with a closing position of 238 outlets at 31
January 2026 (2025 - 245). We remain on track to open over 40 new outlets in
the second half of the financial year and expect to operate from an average of
around 240 in FY26.
Our investment in strategic land has continued, which has enhanced our overall
land supply for a relatively low initial capital outlay, while also supporting
our longer-term growth ambitions. We entered into option agreements to buy 11
sites (2025 - 11 sites), and our strategic land team also submitted planning
applications for 29 sites comprising around 3,900 plots. We are expecting to
submit a further 30 sites for planning, comprising around 6,500 plots, from
the strategic land bank by the end of July 2026.
Bellway's strategic land portfolio has grown significantly in recent years and
now comprises 46,600 plots (2025 - 46,100 plots). We are focussed on
increasing the rate of conversion from our strategically sourced land bank and
expect it to deliver a growing proportion of volume output, with a target of
over 20% in the medium term.
Production and cost control
Overall build cost inflation was running in the low single digits through the
first half, and requests for subcontract labour price increases remain low for
most trades. There are presently good levels of product availability across
the Group and modest overall material cost inflation on new tenders. Looking
ahead, and given the ongoing conflict in the Middle East, there are heightened
risks of supply chain disruption and rising cost inflation. In light of this,
our experienced procurement teams continue to work closely with our wide range
of supply chain partners, to ensure we are well-prepared for our targeted
increase in volume output in the current financial year and to minimise the
impact of any potential disruption to the supply chain.
Bellway has robust cost controls and a strong focus on driving efficiencies
across the Group. Our new portfolio of Bellway Collection standard house types
is being finalised, incorporating both traditional and timber frame
construction and optionality for building to the requirements of the Future
Homes Standard. The new house types will be adopted for planning applications
during the second half of the year and together with our centralised approach
to design, procurement and site layout reviews, will help the Group maintain
efficiency and mitigate cost pressures.
As part of our long-term growth strategy, we are increasing the use of
sustainably sourced timber frame construction. As previously announced, the
Group is targeting an increase in timber frame use to around 30% of housing
output by 2030 (31 July 2025 - 14.0%) which will deliver a range of
operational, financial and environmental benefits. The planned growth in
timber frame output will be achieved primarily through our own proprietary
timber frame manufacturing facility, Bellway Home Space, and will help to
improve build times and work-in-progress ('WIP') efficiency together with
strengthening our commitment to reducing carbon emissions.
We successfully opened Bellway Home Space in January and have started
supplying our divisions with frames for planned housing completions in the
second half of FY26. We remain confident that our investment in timber frame
in the years ahead will support the delivery of our strategic priorities, to
drive long-term volume growth and an improvement in return on equity
('RoE').
Refreshing the Bellway brand
Our consistent 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 tenth consecutive year. Positive customer recognition is
key to our ongoing success and, as reflected by the investment in our new
range of house types, we are improving the design of our homes to meet the
changing needs and expectations of our customers.
To deliver on our strategic priorities of driving growth and efficiencies
across the business we have also refreshed the Bellway brand. The redesigned
brand has been successfully launched with a new digital-first approach to
simplify the customer journey, attract a broader range of buyers to our
outlets and enhance revenue opportunities, including customer additions and
upgrades.
As part of the brand refresh process, and following a detailed review, we have
decided to phase out the Ashberry brand. With the introduction of our
refreshed Bellway brand, new Bellway Collection standard house types, and
investment in digital customer experiences, maintaining an additional smaller
brand which represents a relatively small part of the Group's volume output,
is no longer the most efficient use of resources. We do not anticipate any
impact on our plans for outlet growth over the medium term, with the
transition to be phased over the next three to four years as existing and new
outlets gradually become part of the main Bellway brand.
Recent trading
Since the start of the new calendar year there has been sustained improvement
in customer demand compared to autumn 2025. In the six weeks since 1 February,
the private reservation rate per outlet per week, including bulk sales, was
0.70 (1 February to 16 March 2025 - 0.76). The private reservation rate
excluding bulk sales was 0.66 (2025 - 0.66).
Reflecting recent trading and volume output, the forward order book at 13
March 2026 comprised 5,311 homes (16 March 2025 - 5,582 homes) with a value of
£1,551.6m(2) (16 March 2025 - £1,581.0m).
Outlook
There have been good levels of reservation rates and leads for our sales teams
in the early part of the spring selling season and, at this stage, the
situation in the Middle East has not had a material impact on trading.
Supported by our forward order book, we are on track to deliver FY26
underlying operating profit within the range of £320m - £330m(2,3).
Volume output in FY26 is now expected to be ahead of previous guidance at
between 9,300 and 9,500 homes (31 July 2025 - 8,749) and we expect the
underlying operating margin to be similar to the first half at around
10.5%(2,3) (31 July 2025 - 10.9%).
Under stable market conditions, we remain well-placed to increase volume
output to around 10,000 homes by FY28, however, the ongoing conflict in the
Middle East has led to the return of volatility in the mortgage market in
recent weeks and heightened the risk of both lower customer demand and
inflationary cost pressures.
Notwithstanding the current industry headwinds and geopolitical tensions, I am
confident that our self-help and drive for capital efficiency will help
mitigate the impact on our strategy to increase cash generation and
shareholder returns.
Jason Honeyman
Chief Executive
23 March 2026
Chief Financial Officer's Review
Summary of key performance measures
Half year ended Half year ended Movement
31 January 31 January
2026 2025
Housing completions 4,702 4,577 +2.7%
Revenue £1,520.1m £1,429.4m +6.3%
Underlying performance measures(2,3):
Gross profit (underlying) £247.0m £233.8m +5.6%
Gross margin (underlying) 16.2% 16.4% (20 bps)
Operating profit (underlying) £159.0m £156.6m +1.5%
Operating margin (underlying) 10.5% 11.0% (50 bps)
Profit before taxation (underlying) £150.9m £150.2m +0.5%
Basic earnings per share (underlying) 91.2p 90.3p +1.0%
Adjusted operating cashflow £314.1m £366.1m (14.2%)
RoCE (underlying) 8.9% 8.9%(1) -
Pre-tax RoE (underlying) 8.5% 8.6% (10bps)
Statutory and other performance measures:
Adjusting items (pre-tax) £11.0m £9.4m +17.0%
Profit before taxation £139.9m £140.8m (0.6%)
Basic earnings per share 84.5p 84.6p (0.1%)
Interim dividend per share 23.0p 21.0p +9.5%
Net asset value per share 3,005p(2) 2,960p(2) +1.5%
Net debt £72.0m(2) £8.0m(2) +800.0%
Land bank (plots) 94,393(4) 95,506(4) (1.2%)
Trading performance
The Group has delivered growth in housing revenue of 6.6% to £1,514.9m (2025
- £1,421.6m), which was supported by a strengthened order book at the start
of the financial year. Other revenue was £5.2m (2025 - £7.8m) and
comprises ancillary items including land and commercial sales, and management
fee income earned on our joint venture schemes. Total revenue was 6.3% higher
at £1,520.1m (2025 - £1,429.4m).
The table below shows the number and average selling price of homes completed
in the period, analysed between private and social homes, and against the
prior year period comparative:
2026 2025 Movement (%)
Homes ASP (£000) Homes ASP (£000) Homes ASP
Private 3,702 354.6 3,617 345.9 2.4% 2.5%
Social 1,000 202.2 960 177.6 4.2% 13.9%
Total 4,702 322.2 4,577 310.6 2.7% 3.7%
Total housing completions increased by 2.7% to 4,702 homes (2025 - 4,577) and
overall private output rose by 2.4% to 3,702 homes (2025 - 3,617). There was a
4.2% increase in social housing output to 1,000 homes (2025 - 960), and the
proportion of social completions was in line with the prior year period at
21.3% of the total (2025 - 21.0%). We have good visibility on our near-term
build programmes, and we expect a similar number of social housing completions
in the second half of the current financial year.
The overall average selling price was in line with our expectations at
£322,180 (2025 - £310,581). While there were some geographic and mix
changes, headline pricing remained broadly stable and the level of incentives
increased modestly and averaged between 4.5%-5.0% (2025 - around 4%). The
overall average selling price for the full year is now anticipated to be
around £325,000 (31 July 2025 - £316,412). The increase from the previous
guidance of around £320,000 is mainly due to changes in product mix,
including the expected conversion of higher value private completions in the
South of England from our bulk sales pipeline.
Underlying operating performance
The Group's strong commercial disciplines and proactive management of
site-based overheads helped to alleviate some of the margin pressures faced
during the period. Notwithstanding this, margins face ongoing pressures from
the effects of residual cost inflation and extended site durations, and the
absence of underlying house price inflation. As a result, the underlying gross
margin reduced slightly to 16.2%(2,3) (2025 - 16.4%). Driven by higher
revenues in the period, underlying gross profit increased by 5.6% to
£247.0m(2,3) (2025 - £233.8m).
Other operating income and expenses, which net to a modest expense of £1.7m
(2025 - £0.3m), relate to the running of our part-exchange programme.
Part-exchange activity remains disciplined, and while it is an important
selling incentive for customers, it represents a relatively modest proportion
of our transactions. During the first half it was used for 5.8% (2025 - 3.1%)
of completions with a balance sheet investment at 31 January 2026 of £46.4m
(2025 - £15.6m). The Group has strong controls around the use of
part-exchange homes as a selling tool, and we have the financial capacity to
further increase its use, in a controlled manner, if market conditions require
it.
The underlying administrative expense rose by 12.2% to £86.3m(2,3) (2025 -
£76.9m). The increase, which was in line with previous guidance, reflects the
requirement to continue offering competitive reward packages to attract and
retain talent to support our growth plans, together with the costs of our new
timber frame manufacturing operations. We expect full year underlying
administrative expenses(2,3) to increase to between £170m and £175m (31 July
2025 - £152.0m).
Given the slight reduction in underlying gross margin and lower overhead
recovery, the underlying operating margin for the half year reduced to
10.5%(2,3) (2025 - 11.0%). For the full year, reflecting ongoing pressures
from build cost inflation and incremental use of sales incentives, together
with an anticipated higher proportion of bulk sale completions, we now expect
the underlying operating margin to be similar to the first half at around
10.5%(2,3) (31 July 2025 - 10.9%).
The Group will continue with a disciplined approach to land investment and
cost management, and with the support of stable conditions in the housing
market, the Board is confident that an underlying operating margin in the
mid-teens(2,3) is achievable and sustainable over the longer term.
Adjusting item: Net legacy building safety expense
Bellway has allocated and committed significant resource and funding to
remediate its legacy apartments, and we continue to make good progress on
addressing building safety issues.
In the first half, the Group recognised a net adjusting expense of £10.7m
(2025 - £9.4m) in relation to legacy building safety. The total adjusting
expense includes a net adjusting expense of £4.2m (2025 - £2.1m) through
cost of sales, which relates to the refinement of overall cost estimates in
relation to both the SRT and associated review and structural defects
provisions.
The adjusting finance expense in the period was £6.5m (2025 - £7.3m) and
related to the unwinding of the discount on both the SRT and associated review
provision and the structural defects provision. This is a non-cash interest
unwind, which was in line with previous guidance. The adjusting finance
expense is subject to a range of assumptions, and based on the 31 January 2026
forward looking discount rate, we currently anticipate an adjusting finance
expense of around £7m in the second half of FY26.
The total amount Bellway has set aside for legacy buildings in England,
Scotland and Wales since 2017 is £718.2m. Demonstrating our ongoing
commitment to deliver appropriate solutions for legacy buildings, the Group
has spent £211.7m since the start of the remediation programme, with a
remaining provision of £506.5m at 31 January 2026.
Our experienced site remediation teams remain focused on completing works as
promptly and efficiently as possible. As at 31 January 2026 and including
those buildings that have been awarded an application by the Building Safety
Fund or ACM Funds, Bellway had a total of 172 buildings where work is complete
or underway.
Net underlying finance expense
The modest rise in the net underlying finance expense to £6.7m(2,3) (2025 -
£5.8m) was primarily due to the unwinding of the higher interest rates
charged on the land creditor balance in the period. This resulted in a higher
non-cash interest charge on land acquired on deferred terms of £7.7m (2025 -
£7.1m). The total underlying non-cash related net finance expense in the
first half was £8.1m(2,3) (2025 - £7.5m), and cash related net finance
income was £1.4m (2025 - £1.7m).
As outlined at our FY25 results, we will be utilising an efficient capital
structure, including running the business with a modest level of average net
debt and low year end gearing of up to 5%(2). As a result, and based on
prevailing interest rates, the net underlying interest expense in FY26 is
anticipated to be around £20m(2,3) (31 July 2025 - £12.9m).
Profit for the period
Including our share of loss from joint ventures of £1.4m (2025 - £0.6m),
which reflects upfront financing costs on a long-term scheme, underlying
profit before taxation increased slightly to £150.9m(2,3) (2025 - £150.2m).
Reported profit before taxation was £139.9m (2025 - £140.8m).
The income tax expense was £40.2m (2025 - £40.4m), reflecting an effective
tax rate of 28.7% (2025 - 28.7%). The effective tax rate reflects the standard
rate of UK corporation tax of 25% and also includes the Residential Property
Developer Tax ('RPDT'), which is charged at a rate of 4% of relevant taxable
profits.
The underlying profit for the period was £107.6m(2,3) (2025 - £107.1m) and
basic underlying earnings per share was 91.2p(2,3) (2025 - 90.3p). After
considering the adjusting items, reported profit for the period was £99.7m
(2025 - £100.4m) and basic earnings per share was 84.5p (2025 - 84.6p).
Strong balance sheet and financial position
Bellway's well-capitalised balance sheet principally comprises amounts
invested in land and WIP. Within total inventories of £4,761.4m (2025 -
£4,764.3m), the carrying value of land reduced by 2.9% to £2,465.2m (2025 -
£2,538.2m), and reflecting our broadly stable outlet position, the value of
showhomes was similar to the prior year at £145.8m (2025 - £146.3m). The
value of part-exchange properties rose to £46.4m (2025 - £15.6m) and there
was a modest increase in the WIP balance to £2,104.0m (2025 - £2,064.2m).
Notably, the WIP balance was lower than the position of £2,165.0m at the
start of the financial year, highlighting good early progress with our capital
efficiency drive.
In conjunction with our ongoing disciplined investment in site infrastructure
and programme of outlet openings to support growth in volume output, we also
have a sharp focus on further monetisation of our well-invested WIP position.
We are targeting further reductions in the WIP balance in FY26 and beyond to
support increases in asset turn and cash generation.
We have maintained a strong and efficient balance sheet, with modest net debt
at 31 January 2026 of £72.0m(2) (2025 - £8.0m), after dividends and share
buyback cash expenditure totalling £105.3m. During the first half,
expenditure on land, including payment of land creditors, was £302.0m (2025 -
£302.0m), primarily comprising cash payments on contracts approved in
previous financial years. Committed land obligations were £289.6m (2025 -
£289.7m) and adjusted gearing, inclusive of land creditors, remains low at
10.3%(2) (2025 - 8.5%).
Capital allocation and delivering value for shareholders
Our capital allocation framework is based on maintaining balance sheet
strength and low gearing, while driving capital efficiencies to increase cash
generation. It is underpinned by a flexible approach to deliver value creation
for shareholders through optimising the balance between investment in growth
and returns to shareholders.
Our refreshed approach to capital efficiency has been embedded across the
Group over the last year and is delivering positive results. Adjusted
operating cashflow in the period was £314.1m(2,3) (2025 - £366.1m) and we
are on track to deliver a significant increase in adjusted operating cashflow
in the second half of the financial year. We will continue to leverage our
strong land bank and WIP position to drive further improvements in cash
generation, which will enable us to meet the investment needs of the business,
legacy building safety obligations, regular dividend payments and additional
returns to shareholders.
The £150m share buyback launched on 14 October 2025 is progressing well, with
2.37m shares purchased at a cost of around £64m as at 13 March 2026, and the
Group intends to continue with the return of excess capital in future years.
Bellway also has a sustainable ordinary dividend policy. The interim dividend
has increased to 23.0p per share (2025 - 21.0p) and underlying dividend cover
for the full financial year is expected to be 2.5 times(2,3).
Net assets reduced slightly to £3,522.9m (31 July 2025 - £3,556.2m), with
the key drivers being profitability in the period offset by dividend payments
of £57.6m, and after accounting for the £75.3m irrevocable first tranche of
the share buyback programme announced on 14 October 2025. The effect of the
share buybacks undertaken during the period resulted in a slight increase in
NAV per share to 3,005p(2) (31 July 2025 - 2,989p). An increase in asset turn
was partly offset by the lower underlying operating margin and as a result,
underlying return on capital employed ('RoCE') was 8.9%(2,3) (2025 - 8.9%(6)).
Underlying pre-tax RoE was 8.5%(2,3) (2025 - 8.6%).
The Board remains confident that, with supportive market conditions, Bellway
is in an excellent position to capitalise on future growth opportunities.
Together with our drive for greater cash generation and capital efficiency, we
are well-placed to deliver a recovery in returns and ongoing value creation
for our shareholders.
Shane Doherty
Chief Financial Officer
23 March 2026
Condensed Group Income Statement
Note Half year Half year Year
ended ended ended
31 January 31 January 31 July
2026 2025 2025
£m £m £m
Revenue 1 1,520.1 1,429.4 2,782.8
Cost of sales (1,277.3) (1,197.7) (2,363.4)
Analysed as:
Underlying cost of sales (1,273.1) (1,195.6) (2,326.0)
Adjusting item: net legacy building safety expense 2 (4.2) (2.1) (37.4)
Gross profit 242.8 231.7 419.4
Other operating income 46.5 31.5 69.3
Other operating expenses (48.2) (31.8) (70.6)
Administrative expenses (86.6) (76.9) (167.4)
Analysed as:
Underlying administrative expenses (86.3) (76.9) (152.0)
Adjusting item: other exceptional items 2 (0.3) - (15.4)
Operating profit 154.5 154.5 250.7
Finance income 8 4.7 5.0 9.6
Finance expenses 8 (17.9) (18.1) (36.9)
Analysed as:
Underlying finance expenses (11.4) (10.8) (22.5)
Adjusting item: net legacy building safety expense 2,8 (6.5) (7.3) (14.4)
Share of result of joint ventures after tax (1.4) (0.6) (1.5)
Profit before taxation 139.9 140.8 221.9
Income tax expense 4 (40.2) (40.4) (64.4)
Profit for the period * 99.7 100.4 157.5
Earnings per ordinary share - Basic 3 84.5p 84.6p 132.8p
Earnings per ordinary share - Diluted 3 83.8p 84.0p 131.8p
Dividend per ordinary share 11 23.0p 21.0p 70.0p
* All attributable to equity holders of the parent.
Adjusting items
Note Half year ended Half year ended Year
31 January 2026 31 January 2025 ended
31 July
2025
£m £m £m
Gross profit
Gross profit per the Condensed Group Income Statement 242.8 231.7 419.4
Adjusting item: net legacy building safety expense 2 4.2 2.1 37.4
Underlying gross profit 247.0 233.8 456.8
Operating profit
Operating profit per the Condensed Group Income Statement 154.5 154.5 250.7
Adjusting item: net legacy building safety expense 2 4.2 2.1 37.4
Adjusting item: other exceptional items 2 0.3 - 15.4
Underlying operating profit 159.0 156.6 303.5
Profit before taxation
Profit before taxation per the Condensed Group Income Statement 139.9 140.8 221.9
Adjusting item: net legacy building safety expense 2 10.7 9.4 51.8
Adjusting item: other exceptional items 2 0.3 - 15.4
Underlying profit before taxation 150.9 150.2 289.1
Profit for the period
Profit for the period per the Condensed Group Income Statement 99.7 100.4 157.5
Adjusting item: net legacy building safety expense 2 10.7 9.4 51.8
Adjusting item: other exceptional items 2 0.3 - 15.4
Adjusting item: income tax on exceptional items 2 (3.1) (2.7) (15.0)
Underlying profit for the period 107.6 107.1 209.7
Condensed Group Statement of Comprehensive Income
Note Half year Half year Year
ended ended ended
31 January 31 January 31 July
2026 2025 2025
£m £m £m
Profit for the period 99.7 100.4 157.5
Other comprehensive income/(expense)
Items that will not be recycled to the income statement:
Remeasurement gains/(losses) on defined benefit pension plans 1.1 (0.4) -
Income tax on other comprehensive (income)/expense 4 (0.3) 0.1 -
Other comprehensive income/(expense) for the period, net of income tax 0.8 (0.3) -
100.5 157.5
Total comprehensive income for the period * 100.1
* All attributable to equity holders of the parent.
Condensed Group Statement of Changes in Equity
Note Issued capital Share premium Capital redemption Other reserves Retained earnings Total
reserve equity
£m £m £m £m £m £m
Half year ended 31 January 2026
Balance at 1 August 2025 14.8 183.5 20.6 1.5 3,335.8 3,556.2
Total comprehensive income for the period
Profit for the period - - - - 99.7 99.7
Other comprehensive income * - - - - 0.8 0.8
Total comprehensive income for the period - - - - 100.5 100.5
Transactions with shareholders recorded directly in equity:
Dividends on equity shares 11 - - - - (57.6) (57.6)
Purchase of own shares - - - - (4.7) (4.7)
Shares issued - 0.1 - - - 0.1
Credit in relation to share options and tax thereon 3.7
4 - - - - 3.7
Share buyback programme and cancellation of shares 10 (0.2) - 0.2 - (75.3) (75.3)
Total contributions by and distributions to shareholders (0.2) 0.1 0.2 - (133.9) (133.8)
Balance at 31 January 2026 14.6 183.6 20.8 1.5 3,302.4 3,522.9
Half year ended 31 January 2025
Balance at 1 August 2024 14.8 183.2 20.6 1.5 3,245.3 3,465.4
Total comprehensive income for the period
Profit for the period - - - - 100.4 100.4
Other comprehensive expense * - - - - (0.3) (0.3)
Total comprehensive income for the period - - - - 100.1 100.1
Transactions with shareholders recorded directly in equity:
Dividends on equity shares 11 - - - - (45.1) (45.1)
Credit in relation to share options and tax thereon
4 - - - - 2.0 2.0
Total contributions by and distributions to shareholders - - - - (43.1) (43.1)
Balance at 31 January 2025 14.8 183.2 20.6 1.5 3,302.3 3,522.4
Year ended 31 July 2025
Balance at 1 August 2024 14.8 183.2 20.6 1.5 3,245.3 3,465.4
Total comprehensive income for the year
Profit for the year - - - - 157.5 157.5
Other comprehensive expense * - - - - - -
Total comprehensive income for the year - - - - 157.5 157.5
Transactions with shareholders recorded directly in equity:
Dividends on equity shares 11 - - - - (70.0) (70.0)
Purchase of own shares - - - - (1.0) (1.0)
Shares issued - 0.3 - - - 0.3
Credit in relation to share options and tax thereon - - - - 4.0 4.0
4
Total contributions by and distributions to shareholders - 0.3 - - (67.0) (66.7)
14.8 183.5 20.6 1.5 3,335.8 3,556.2
Balance at 31 July 2025
* An additional breakdown is provided in the Condensed Group Statement of
Comprehensive Income.
Condensed Group Balance Sheet
Note At At At
31 January 31 January 31 July
2026 2025 2025
£m £m £m
ASSETS
Non-current assets
Property, plant and equipment 47.9 41.7 45.5
Financial assets 49.9 49.8 54.0
Equity accounted joint arrangements 0.1 9.3 0.1
Deferred tax assets 4 4.4 0.8 2.7
Retirement benefit assets 2.1 0.6 0.9
103.2
104.4 102.2
Current assets
Inventories 5 4,761.4 4,764.3 4,838.1
Trade and other receivables 79.1 87.7 81.0
Corporation tax receivable 4 1.1 - 0.4
Cash and cash equivalents 7 118.0 122.0 171.8
4,959.6 4,974.0 5,091.3
Total assets 5,064.0 5,076.2 5,194.5
LIABILITIES
Non-current liabilities
Interest-bearing loans and borrowings 7 (130.0) (130.0) (130.0)
Trade and other payables (104.5) (100.2) (90.5)
Provisions 6 (363.3) (358.1) (350.5)
(571.0)
(597.8) (588.3)
Current liabilities
Interest-bearing loans and borrowings 7 (60.0) - -
Corporation tax payable 4 - (9.1) -
Trade and other payables (740.1) (812.4) (901.4)
Provisions 6 (143.2) (144.0) (165.9)
(943.3) (965.5) (1,067.3)
Total liabilities (1,541.1) (1,553.8) (1,638.3)
Net assets 3,522.9 3,522.4 3,556.2
EQUITY
Issued capital 10 14.6 14.8 14.8
Share premium 183.6 183.2 183.5
Capital redemption reserve 10 20.8 20.6 20.6
Other reserves 1.5 1.5 1.5
Retained earnings 3,302.4 3,302.3 3,335.8
Total equity 3,522.9 3,522.4 3,556.2
Condensed Group Cash Flow Statement
Note Half year ended Half year ended Year
31 January 2026 31 January 2025 ended
31 July
2025
£m £m £m
Cash flows from operating activities
Profit for the period 99.7 100.4 157.5
Depreciation charge 2.8 2.7 5.5
Loss on the sale of property, plant and equipment - 0.1 -
Finance income 8 (4.7) (5.0) (9.6)
Finance expenses 8 17.9 18.1 36.9
Share-based payment expense 3.0 2.4 4.6
Share of post tax result of joint ventures 1.4 0.6 1.5
Income tax expense 4 40.2 40.4 64.4
Decrease/(increase) in inventories 76.7 (49.5) (101.9)
Decrease/(increase) in trade and other receivables 3.8 (11.5) (4.4)
(Decrease)/increase in trade and other payables (181.7) 11.0 74.7
Decrease in provisions 6 (16.4) (14.4) (7.2)
Cash from operations 42.7 95.3 222.0
Interest paid (5.1) (3.3) (6.7)
Income tax paid (42.0) (40.3) (76.1)
Net cash (outflow)/inflow from operating activities (4.4) 51.7 139.2
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired - - (4.6)
Acquisition of property, plant and equipment (5.0) (6.0) (11.9)
Proceeds from sale of property, plant and equipment 0.1 - -
Increase in loans to joint ventures (0.6) (0.6) (6.5)
Repayment of loans by joint ventures 6.0 - 3.3
Dividends from joint ventures - 1.0 3.1
Interest received 2.1 2.4 3.7
Net cash inflow/(outflow) from investing activities 2.6 (3.2) (12.9)
Cash flows from financing activities
Increase in bank borrowings 60.0 - -
Payment of lease liabilities (2.1) (0.9) (3.3)
Proceeds from the issue of share capital on exercise of share options 0.1 - 0.3
Purchase of own shares (4.7) - (1.0)
Share buyback programme 10 (47.7) - -
Dividends paid 11 (57.6) (45.1) (70.0)
Net cash outflow from financing activities (52.0) (46.0) (74.0)
Net (decrease)/increase in cash and cash equivalents (53.8) 2.5 52.3
Cash and cash equivalents at beginning of period 171.8 119.5 119.5
Cash and cash equivalents at end of period 7 118.0 122.0 171.8
Notes
Basis of preparation
Bellway p.l.c. (the 'Company') is a company incorporated in England and Wales.
These condensed consolidated interim financial statements, prepared to 31
January 2026, include the results of the Company, its subsidiaries and the
Group's interest in joint arrangements (together referred to as the
'Group').
These condensed consolidated interim financial statements are unaudited and
were authorised for issue by the Board on 23 March 2026.
a) Basis of preparation
This set of condensed consolidated interim financial statements has been
prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by
the UK.
The comparative figures for the financial year ended 31 July 2025 are not the
Group's statutory financial statements for that financial year as defined in
section 434 of the Companies Act 2006. Those financial statements have been
reported on by the Group's auditor and delivered to the Registrar of
Companies. The report of the auditor was (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report, and (iii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
The annual financial statements of the Group for financial year ending 31 July
2026 will be prepared in accordance with UK adopted International Accounting
Standards ('IAS'). As required by the Disclosure Guidance and Transparency
Rules of the Financial Conduct Authority, these condensed consolidated interim
financial statements have been prepared applying the accounting policies and
presentation that were applied in the preparation of the Group's published
consolidated financial statements for the year ended 31 July 2025.
b) Going concern
The Group's activities are financed principally by a combination of ordinary
shares and cash in hand less debt. At 31 January 2026, Bellway had net debt
of £72.0 million(2) (note 7), having utilised cash of £53.8 million (note 7)
during the period, including a £4.4 million net cash outflow from operating
activities.
The Group has operated within all its debt covenants throughout the period,
and covenant compliance was considered as part of the going concern
assessment. In addition, the Group had bank facilities of £400 million at 31
January 2026, expiring in December 2030. Furthermore, in February 2021 the
Group entered into a contractual arrangement to issue a sterling US Private
Placement ('USPP') for a total amount of £130.0 million, as part of its
ordinary course of business financing arrangements, which has maturity dates
in 2028 and 2031. In aggregate, the Group had committed debt lines of £530.0
million at 31 January 2026.
Including committed debt lines and cash, Bellway had access to total funds of
£458.0 million, along with net current assets (excluding cash and bank loans)
of £3,958.3 million at 31 January 2026, providing the Group with appropriate
liquidity to meet its current liabilities as they fall due.
The Group's internal forecasts have been regularly updated, incorporating our
actual experience along with our expected future outturn. The latest available
base forecast has been sensitised, setting out the Group's resilience to the
principal risks and uncertainties in the most severe but plausible scenario.
The sensitivity includes a recession due to economic uncertainty and a
deterioration in customer confidence. This could lead to a reduction in both
the total number of legal completions and private average selling price, with
overheads, land spend and construction spend reducing accordingly.
This sensitivity includes the following principal assumptions:
§ Private completions in H2 FY26 are supported by the forward order book. In
the 12 months to 31 July 2027, private completions reduce by around 50%
compared to the 12-month pre-stress peak achieved in FY22. This is followed
by a gradual recovery based on the lower base position.
Notes (continued)
Basis of preparation (continued)
b) Going concern (continued)
§ Private average selling price in H2 FY26 remains in line with internal
forecasts due to the forward order book position. In the 12 months to 31
July 2027, the private average selling price reduces by 10% compared to the
latest achieved pricing. This is followed by a gradual recovery based on the
lower base position.
§ These assumptions reflect the Group's experience in the 2008-09 Global
Financial Crisis.
A number of prudent mitigating actions within the Directors' control were
incorporated into the severe but plausible downside scenario, including:
§ Plots in the land bank only being replaced at the same rate that they are
utilised.
§ Construction spend reducing in line with housing revenue.
§ Dividends reducing in line with earnings.
The sensitivity analysis was modelled over the period to 31 July 2027 for the
going concern assessment. In addition to the scenario, several additional
mitigating measures remain available to management that were not included in
the scenario. These include withholding discretionary land spend and instead
trading out of the substantial existing land holdings.
In the scenario, the Group had significant headroom in both its financial debt
covenants and existing debt facilities and met its liabilities as they fall
due. In relation to climate risks, and in particular the requirement of the
Group to reduce carbon emissions, the going concern assessment is not
considered to be materially affected by the Future Homes Standard.
The Directors consider that the Group is well placed to manage business and
financial risks in the current economic environment. Consequently, the
Directors are confident that the Group will have sufficient funds to continue
to meet its liabilities as they fall due for the period to 31 July 2027,
aligning with the first year end after the minimum 12 month assessment period,
and have therefore prepared the condensed consolidated interim financial
statements on a going concern basis.
c) Accounting policies
Effect of new accounting standards and amendments
The adoption of the new accounting standards and amendments effective for the
first time in these condensed consolidated interim financial statements have
not had a material effect on the Groups' equity or profit for the period.
d) Accounting estimates and judgements
While preparing these condensed consolidated interim financial statements, the
Directors are required to make significant estimates and judgements that could
have a significant effect on these financial statements when applying the
Group's accounting policies.
When preparing these condensed consolidated interim financial statements, the
major judgements in applying the Group's accounting policies and the major
sources of estimation uncertainty were those applied in the Group's Annual
Report and Accounts for the year ended 31 July 2025.
e) Seasonality
In common with the rest of the UK housebuilding industry, activity occurs
throughout the year, but is subject to the two main house selling seasons of
spring and autumn. As these seasons fall in separate half years, the Group's
financial results are not usually subject to significant seasonal variations.
Notes (continued)
Performance for the period
1. Revenue
Segmental analysis
The Executive Board (the Chief Operating Decision Maker as defined in IFRS 8
'Operating Segments') regularly reviews the Group's performance and balance
sheet position at both a consolidated and divisional level. Each division is
an operating segment as defined by IFRS 8 in that the Executive Board assesses
performance and allocates resources at this level. All of the divisions have
been aggregated into one reporting segment on the basis that they share
similar economic characteristics including:
§ National supply agreements are in place for key inputs including materials.
§ Debt is raised centrally and the cost of capital is the same at each
division.
§ Sales demand at each division is subject to the same macroeconomic factors,
such as mortgage availability and government policy.
Additional information on average selling prices and the unit sales split
between private and social has been included in the Chief Financial Officer's
Review. The Board does not, however, consider these categories to be separate
reportable segments as they review the entire operations at a consolidated and
divisional level when assessing performance and making decisions about the
allocation of resources.
Revenue from contracts with customers
An analysis of the Group's revenue is as follows:
Housing completions Revenue
Half year ended Half year ended Year Half year ended Half year ended Year
31 January 31 January ended 31 January 31 January ended
2026 2025 31 July 2026 2025 31 July
2025 2025
Number Number Number £m £m £m
Housing - private 3,702 3,617 6,924 1,312.7 1,251.1 2,426.4
Housing - social 1,000 960 1,825 202.2 170.5 341.9
Total housing 4,702 4,577 8,749 1,514.9 1,421.6 2,768.3
Non-housing revenue - - - 5.2 7.8 14.5
Total 4,702 4,577 8,749 1,520.1 1,429.4 2,782.8
Notes (continued)
2. Net legacy building safety expense and other exceptional items
Profit before taxation has been arrived at after recognising the following
items in the income statement:
Half year ended 31 January 2026
SRT and associated review Structural defects Total net legacy building Other exceptional items Total adjusting items
safety expense
£m £m £m £m £m
Provisions (note 6) 4.6 (0.4) 4.2 - 4.2
Reimbursement assets - - - - -
Net cost of sales expense/(income) (note 6) 4.6 (0.4) 4.2 - 4.2
Administrative expenses - - - 0.3 0.3
Finance expenses (notes 6, 8) 5.9 0.6 6.5 - 6.5
Total net legacy building safety expense and other exceptional items 10.5 0.2 10.7 0.3 11.0
Half year ended 31 January 2025
SRT and associated review Structural defects Total net legacy building Other exceptional items Total adjusting items
safety expense
£m £m £m £m £m
Provisions 3.2 (0.9) 2.3 - 2.3
Reimbursement assets (0.2) - (0.2) - (0.2)
Net cost of sales expense/(income) 3.0 (0.9) 2.1 - 2.1
Administrative expenses - - - - -
Finance expenses (note 8) 6.4 0.9 7.3 - 7.3
Total net legacy building safety expense and other exceptional items 9.4 - 9.4 - 9.4
Year ended 31 July 2025
SRT and associated review Structural defects Total net legacy building Other exceptional items Total adjusting items
safety expense
£m £m £m £m £m
Provisions 50.9 (13.3) 37.6 - 37.6
Reimbursement assets (0.2) - (0.2) - (0.2)
Net cost of sales expense/(income) 50.7 (13.3) 37.4 - 37.4
Administrative expenses - - - 15.4 15.4
Finance expenses (note 8) 12.6 1.8 14.4 - 14.4
Total net legacy building safety expense and other exceptional items 63.3 (11.5) 51.8 15.4 67.2
The income tax rate applied to the total net legacy building safety expense
and other exceptional items in the income statement is the Group's standard
rate of income tax of 29.0%, inclusive of both corporation tax and Residential
Property Developer Tax ('RPDT'), adjusted for the impact of non-deductible
items (31 January 2025 - 29.0%, 31 July 2025 - 29.0%).
Notes (continued)
2. Net legacy building safety expense and other exceptional items
(continued)
SRT and associated review
Bellway continues to act responsibly with regards to building and resident
safety, and this is reflected by the significant resource and funding the
Group has committed to remediate its legacy apartments.
In March 2023 the Group signed the SRT with DLUHC. Under the terms of the SRT,
developers have agreed to identify and remediate, life-critical fire safety
defects in residential buildings over 11 metres in height that they have
developed or refurbished since April 1992. The Group contractually committed
to remediate its legacy buildings in both Wales and Scotland by signing the
Pact with The Welsh Ministers (the 'Pact') in May 2023 and the Scottish Safer
Buildings Accord in July 2023.
Signing the SRT has led to improved clarity on the standards required for
internal and external remediation, including Publicly Available Specification
('PAS') 9980:2022, which is the code of practice for Fire Risk Appraisals of
External Wall ('FRAEW') construction. Buildings are deemed to be assessed
under the requirements of the SRT when a qualifying assessment has been
approved by the MHCLG. This requires the completion of both a FRAEW and a Fire
Safety Assessment ('FSA').
In total, for the half year ended 31 January 2026 Bellway set aside a net
exceptional pre-tax expense of £10.5 million (2025 - £9.4 million), in
relation to the SRT and associated review. Of this expense, a net £4.6
million (2025 - £3.0 million) is recognised in cost of sales and an adjusting
finance expense of £5.9 million (2025 - £6.4 million) in relation to the
unwinding of the discount of the provision to present value. The net expense
recognised in cost of sales includes an expense of £27.1 million (2025 -
£10.6 million) relating to cost estimate increases, and an expense of £0.1
million (2025 - £2.1 million credit) following a decrease (2025 - increase)
in discount rates during the period (note 6), which are offset by provision
releases of £22.6 million (2025 - £5.3 million). The net exceptional cost of
sales expense includes one-off cost recoveries of £nil (2025 - £0.2
million).
The total amount Bellway has set aside in relation to the SRT and associated
review since 2017 is £683.7 million (31 July 2025 - £673.2 million). Costs
have been provided regardless of whether Bellway still retains ownership of
the freehold interest in the building or whether warranty providers have a
responsibility to carry out remedial works.
Cost estimates have been reviewed and updated in the period based on the
latest scopes following surveys undertaken, tendered works and progress with
remediation. These cost estimates are based on our extensive experience to
date, using analysis of previously tendered works, costs to date on similar
developments and prudent, professional estimates based on knowledge of known
issues.
The provision calculation uses the expected timings of cash outflows which are
adjusted for future estimated cost inflation in accordance with the Build Cost
Information Service ('BCIS') index, a leading provider of cost and price
information to the construction industry. The provision is discounted back to
a present value using UK gilt rates with maturities which reflect the expected
timing of cash outflows. The unwinding of this discount is charged through the
income statement as an adjusting finance expense. The majority of the cash
outflow is expected to be over the next five years, although there will be
some residual expenditure beyond this. The anticipated timing reflects the
complex issues around remediation including identifying the works required,
design and planning obligations, interpretation of the PAS 9980:2022, liaison
and negotiations with building owners, appointment of contractors and time
taken to obtain access licences.
As at 31 January 2026, and including those buildings that have been awarded an
application by the Building Safety Fund or ACM Funds, Bellway had a total of
172 buildings where work is complete or underway.
Total recoveries recognised since 2017 are £80.5 million (2025 - £80.5
million). Reimbursement assets of £0.1 million (2025 - £0.1 million)
remained outstanding at the period end.
Notes (continued)
2. Net legacy building safety expense and other exceptional items
(continued)
Structural defects
The Building Safety Act 2022 introduced an amendment to the limitation period
applicable to claims under the Defective Premises Act 1972, retrospectively
increasing the liability period for structural defects in all dwellings built
prior to 28 June 2022 from 6 years to 30 years.
Due to the change in legislation establishing a retrospective legal obligation
for structural defects in dwellings, this is seen as a highly unusual event
and is the primary reason the structural defects provision is treated as an
adjusting item.
As previously reported, the Group has identified a structural defect relating
to the reinforced concrete frame at an historical high-rise apartment scheme
in Greenwich, London and a mid-rise apartment scheme in Slough.
The increase in the limitation period means Bellway has a legal obligation for
undertaking the remedial works at both the Greenwich and Slough sites.
In total, for the half year ended 31 January 2026 Bellway recognised an
exceptional pre-tax expense of £0.2 million (2025 - £nil), in relation to
the structural defects. Of this, a credit of £0.4 million (2025 - £0.9
million) is recognised in cost of sales and an adjusting finance expense of
£0.6 million (2025 - £0.9 million) in relation to the unwinding of the
discount of the provision to present value. The amount recognised in cost of
sales includes a credit of £0.4 million (2025 - £0.8 million) relating to
provisions releases and £nil (2025 - £0.1 million) following a decrease
(2025 - increase) in discount rates during the period (note 6).
Cost estimates are based on expert third-party reports and reflects
management's expected scope of works.
The provision calculation uses the expected timings of cash outflows which are
adjusted for future estimated cost inflation in accordance with the BCIS
index. The provision is discounted back to a present value using UK gilt rates
with maturities which reflect the expected timing of cash outflows. The
unwinding of this discount is charged through the income statement as an
adjusting finance expense.
We are actively seeking recoveries in relation to the structural defects
identified, but as these are not virtually certain at the balance sheet date,
no reimbursement assets have been recognised.
The cash outflow is expected to be over the next three years.
Other exceptional items
In the half year ended 31 January 2026, there is an expense of £0.3 million
(31 January 2025 - £nil, 31 July 2025 - £15.4 million) relating to the CMA
market investigation. These non-recurring costs were classified as exceptional
given their size and nature. The amount recognised in the year ended 31 July
2025 included a voluntary commitment to the CMA which was paid during the half
year ended 31 January 2026.
Notes (continued)
3. Earnings per ordinary share
Basic earnings per ordinary share is calculated by dividing profit for the
period by the weighted average number of ordinary shares in issue during the
six month period (excluding the weighted average number of ordinary shares
held by the Bellway Employee Share Trust (1992) which are treated as
cancelled).
Diluted earnings per ordinary share uses the same profit for the period figure
as the basic calculation. The weighted average number of shares has been
adjusted to reflect the dilutive effect of outstanding share options allocated
under employee share schemes where the market value exceeds the option
price. Diluted earnings per ordinary share is calculated by dividing
earnings by the diluted weighted average number of ordinary shares.
Reconciliations of the profit for the period and weighted average number of
shares used in the calculations are outlined below:
( ) Half year ended 31 January 2026 Half year ended 31 January 2025
( )
( ) Profit for the period Weighted average number of ordinary Earnings per share Profit for the period Weighted average Earnings per share
shares number of ordinary
shares
£m Number p £m Number p
For basic earnings per ordinary share 99.7 118,025,956 84.5 100.4 118,656,710 84.6
Dilutive effect of options and awards 997,694 (0.7) 898,347 (0.6)
For diluted earnings per ordinary share 99.7 119,023,650 83.8 100.4 119,555,057 84.0
Year ended 31 July 2025
Profit for the year Weighted average Earnings per share
number of ordinary
shares
£m Number p
For basic earnings per ordinary share 157.5 118,644,063 132.8
Dilutive effect of options and awards 889,652 (1.0)
For diluted earnings per ordinary share 157.5 119,533,715 131.8
Notes (continued)
3. Earnings per ordinary share (continued)
Underlying basic and underlying diluted earnings per share exclude the effect
of adjusting items and any associated net tax amounts. Reconciliations of
these are outlined below:
( ) Half year ended 31 January 2026 Half year ended 31 January 2025
( )
( ) Underlying Weighted average number of ordinary Underlying earnings per share Underlying Weighted average Underlying earnings per share
profit for the period shares profit for the period number of ordinary
shares
£m Number p £m Number p
For basic underlying earnings per ordinary share 107.6 118,025,956 91.2 107.1 118,656,710 90.3
Dilutive effect of options and awards 997,694 (0.8) 898,347 (0.7)
For diluted underlying earnings per ordinary share
107.6 119,023,650 90.4 107.1 119,555,057 89.6
Year ended 31 July 2025
Underlying Weighted average Underlying earnings per share
profit for the year number of ordinary
shares
£m Number p
For basic underlying earnings per ordinary share 209.7 118,644,063 176.7
Dilutive effect of options and awards 889,652 (1.3)
For diluted underlying earnings per ordinary share
209.7 119,533,715 175.4
Taxation
4. Taxation
The income tax expense includes both corporation tax and RPDT. This is
calculated by applying the best estimate of the expected annual corporation
tax rate and RPDT rate to the profit before taxation adjusted for non-taxable
items and enhanced deductions.
The effective rate of taxation, including RPDT, for the period is 28.7% (31
January 2025 - 28.7%, 31 July 2025 - 29.0%).
As part of the UK adoption of the Organisation for Economic Cooperation and
Development ('OECD') Pillar Two rules, the UK government announced two new
taxes, the Multinational Top-up Tax and the Domestic Top-up Tax which are
designed to ensure corporations pay tax at a rate of at least 15%. The
Domestic Top-up Tax applied to the Group from 1 August 2024. As the Group's
current effective tax rate is in excess of 15%, the introduction of this has
not affected Bellway and no additional tax is expected to be due. The
Multinational Top-up Tax does not affect Bellway.
The carrying amount of the gross deferred tax assets are reviewed at each
balance sheet date and are recognised to the extent that there will be
sufficient taxable profits to allow the asset to be recovered.
The deferred tax assets/(liabilities) of the Group at 31 January 2026 were
valued at the substantively enacted corporation tax and RPDT rates of 29.0%
(31 January 2025 - 29.0%, 31 July 2025 - 29.0%). At 31 January 2026, the
Group recognised a deferred tax asset of £4.4 million (31 January 2025 -
£0.8 million, 31 July 2025 - £2.7 million).
Notes (continued)
Working capital
5. Inventories
Half year Half year Year
ended ended ended
31 January 31 January 31 July
2026 2025 2025
£m £m £m
Land 2,465.2 2,538.2 2,502.9
Work-in-progress 2,104.0 2,064.2 2,165.0
Showhomes 145.8 146.3 144.9
Part-exchange properties 46.4 15.6 25.3
Total 4,761.4 4,764.3 4,838.1
In the ordinary course of business, inventories have been written down by a
net £3.9 million in the period (31 January 2025 - written back by £2.8
million, 31 July 2025 - written down by £1.2 million).
The Directors consider all inventories to be essentially current in nature
although the Group's operational cycle is such that a proportion of
inventories will not be realised within 12 months. It is not possible to
determine with accuracy when specific inventory will be realised as this is
subject to a number of factors including consumer demand and planning
permission delays.
6. Provisions and reimbursement assets
SRT and associated review Structural defects Total legacy building safety improvements
Provision Reimbursement assets Total Provision Reimbursement assets Total Provision Reimbursement assets Total
£m £m £m £m £m £m £m £m £m
At 1 August 2025 (482.9) 0.1 (482.8) (33.5) - (33.5) (516.4) 0.1 (516.3)
Adjusting item - cost of sales (note 2) (4.6) - (4.6) 0.4 - 0.4 (4.2) - (4.2)
Analysed as:
Additions (27.1) - (27.1) - - - (27.1) - (27.1)
Released 22.6 - 22.6 0.4 - 0.4 23.0 - 23.0
Change in (0.1) - (0.1) - - - (0.1) - (0.1)
discount rate
Utilised 20.2 - 20.2 0.4 - 0.4 20.6 - 20.6
Unwinding of discount (notes 2,8) (5.9) - (5.9) (0.6) - (0.6) (6.5) - (6.5)
At 31 January 2026 (473.2) 0.1 (473.1) (33.3) - (33.3) (506.5) 0.1 (506.4)
Provisions are classified as follows:
SRT and associated review Structural defects Total legacy building safety improvements
£m £m £m
Current 142.4 0.8 143.2
Non-current 330.8 32.5 363.3
473.2 33.3 506.5
Total
The Group has established a provision for the cost of performing fire remedial
works on a number of legacy developments and structural defects relating to
historical apartment schemes (note 2).
Notes (continued)
Financing
7. Analysis of net cash/(debt)
At 1 August Cash At 31 January
2025 flows 2026
£m £m £m
Cash and cash equivalents 171.8 (53.8) 118.0
Bank loans - (60.0) (60.0)
Fixed rate sterling USPP notes (130.0) - (130.0)
41.8 (113.8) (72.0)
Net cash/(debt)
During the period, the Group refinanced its bank facilities into a £400.0
million club facility expiring in December 2030.
8. Finance income and expenses
Half year Half year ended Year
ended 31 January ended
31 January 2025 31 July
2026 2025
£m £m £m
Interest receivable on short-term bank deposits 2.0 1.8 3.8
Other interest receivable 2.7 3.2 5.8
Finance income 4.7 9.6
5.0
Interest payable on bank loans 1.6 1.6 3.4
Interest payable on fixed rate sterling USPP notes 1.7 1.7 3.4
Interest on deferred term land payables 7.7 7.1 14.9
Unwinding of the discount on the legacy building safety improvements provision 6.5 7.3 14.4
(notes 2, 6)
Interest payable on leases 0.4 0.4 0.8
Finance expenses 17.9 36.9
18.1
The unwinding of the discount on the legacy building safety improvements
provision is an adjusting item (note 2).
9. Financial instruments - fair value disclosures
The fair value of financial assets and liabilities are determined based on
discounted cash flow analysis using current market rates for similar
instruments.
The carrying values of financial assets and liabilities reasonably approximate
the fair values of the instruments.
Notes (continued)
Shareholder capital
10. Reserves
Issued capital
Half year ended 31 January 2026 Half year ended 31 January 2025 Year ended 31 July 2025
Number Number Number
000 £m 000 £m 000 £m
Allotted, called up and fully paid 12.5p ordinary shares
At start of the period 118,992 14.8 118,980 14.8 118,980 14.8
Issued on exercise of options 5 - 2 - 12 -
Buyback and cancellation of shares (1,756) (0.2) - - - -
117,241 14.6 118,992 14.8
At end of period 118,982 14.8
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at meetings of the
Company.
As announced on the 14 October 2025, the Board approved a return of £150
million of surplus share capital to shareholders through a share buyback
programme. The buyback programme consists of two tranches; the first £75
million tranche is irrevocable and is recognised in full as at 31 January
2026. The second £75 million tranche was contracted after the 31 January
2026 (note 14), so was not recognised as a liability at the half year.
As part of the first tranche, the Company purchased 1,756,055 of its ordinary
shares for a total consideration of £47.7 million, including transaction
costs of £0.3 million, during the half year ended 31 January 2026. All shares
purchased were for cancellation. As the first tranche is irrevocable as at 31
January 2026, the remaining share buyback commitment of £27.6 million
relating to this tranche was recognised as a financial liability.
Own shares held
The Group holds shares within the Bellway Employee Share Trust (1992) (the
'Trust'), on which dividends have been waived, for participants of certain
share-based payment schemes. The cost of these is charged to retained
earnings.
Half year ended 31 January Half year ended 31 January Year
2026 2025 ended
31 July
2025
Number Number Number
Allotted, called up and fully paid 12.5p ordinary shares
At start of the period 370,097 326,114 326,114
Transferred to employees or Directors (124,993) (1,000) (1,000)
Shares purchased 170,000 - 44,983
At end of period 415,104
325,114 370,097
Half year ended 31 January Half year ended 31 January Year
2026 2025 ended
31 July
2025
£m £m £m
Cost of shares held in Trust 11.0 8.8 9.8
Market value of shares held in Trust 11.3 8.5 9.2
Notes (continued)
10. Reserves (continued)
Capital redemption reserve
On 7 April 2014 the Group redeemed 20,000,000 £1 preference shares, being all
of the preference shares in issue. An amount of £20.0 million, equivalent
to the nominal value of the shares redeemed, was transferred to a capital
redemption reserve on the same date.
Over the course of the calendar year 2023 the Group purchased 4,560,057 of its
own shares which it cancelled. On cancellation of the shares, the aggregate
nominal value of £0.6 million was transferred from issued capital to the
capital redemption reserve.
During the period, the Company purchased 1,756,055 of its own shares which it
cancelled. On cancellation of the shares, the aggregate nominal value of £0.2
million was transferred from share capital to the capital redemption reserve.
This reserve is not distributable.
11. Dividends on equity shares
Amounts recognised as distributions to equity holders in the period:
Half year Half year Year
ended ended ended
31 January 31 January 31 July
2026 2025 2025
£m £m £m
Final dividend for the year ended 31 July 2025 of 49.0p per share (2024 - 57.6 45.1 45.1
38.0p)
Interim dividend for the year ended 31 July 2025 of 21.0p per share (2024 - - - 24.9
16.0p)
57.6 70.0
45.1
27.0 24.9
Interim dividend for the year ending 31 July 2026 of 23.0p per share (2025 - 24.9
21.0p)
The interim dividend was approved by the Board on 23 March 2026 and, in
accordance with IAS 10 'Events after the Reporting Period', has not been
included as a liability in these condensed consolidated interim financial
statements. The interim dividend will be paid on Wednesday 1 July 2026 to
all ordinary shareholders on the Register of Members on Friday 22 May 2026.
The ex-dividend date is Thursday 21 May 2026.
Contingencies and related parties
12. Contingent liabilities
SRT and associated review
We continue to take a proactive approach to nationwide concerns with regards
to fire safety in high-rise buildings across the UK. Bellway recognises its
responsibilities in its legacy apartment portfolio and continues to review
combustion risks, in external wall systems, on past highrise developments.
As detailed in note 2, Bellway has identified a number of developments, which
obtained building regulation approval at the time of construction, where the
building materials used may not fully comply with the most recent government
guidance or where remedial works may need to be performed in line with the
SRT, Welsh Pact or Scottish Safer Buildings Accord. For these developments we
have established that the cost of the remedial works satisfies the accounting
requirements of a provision at the balance sheet date. While a prudent
approach has been taken, the extent of the provision could increase or reduce
in line with normal accounting practice, if new issues are identified or if
estimates change, as Bellway and building owners continue to undertake
investigative works on these and other schemes within the legacy portfolio.
Notes (continued)
13. Related party transactions
There have been no related party transactions in the first six months of the
current financial year which have materially affected the financial position
or performance of the Group.
The related parties are consistent with those disclosed in the Group's Annual
Report and Accounts for the year ended 31 July 2025.
14. Post balance sheet events
The Board has approved a return of £150 million surplus capital to
shareholders, through a share buyback programme. The first £75 million
tranche was irrevocable as at 31 January 2026 and was recognised in full at 31
January 2026. The second £75 million tranche was agreed on 19 February 2026
so was not recognised as a liability at 31 January 2026.
Notes (continued)
Other information
15. Alternative performance measures
Bellway uses a variety of alternative performance measures ('APMs') which,
although financial measures of either historical or future performance,
financial position or cash flows, are not defined or specified by IFRSs. The
Directors use a combination of APMs and IFRS measures when reviewing the
performance, position and cash of the Group.
The APMs used by the Group are defined below:
§ Underlying gross profit and underlying operating profit - Both of these
measures are stated before net legacy building safety expense and other
exceptional items, and are reconciled to total gross profit and total
operating profit on the face of the Condensed Group Income Statement. The
Directors consider that the removal of the net legacy building safety expense
and other exceptional items provides a better understanding of the underlying
performance of the Group.
§ Underlying gross margin - This is gross profit before net legacy building
safety expense and other exceptional items divided by total revenue. The
Directors consider this to be an important indicator of the underlying trading
performance of the Group.
§ Underlying administrative expenses as a percentage of revenue - This is
calculated as the administrative expenses before any directly attributable
administrative expenses relating to the net legacy building safety expense and
other exceptional items divided by total revenue. The Directors consider this
to be an important indicator of how efficiently the Group is managing its
administrative overhead base.
§ Administrative expenses as a percentage of revenue - This is calculated
as the total administrative expenses divided by total revenue. The Directors
consider this to be an important indicator of how efficiently the Group is
managing its administrative overhead base.
§ Underlying operating margin - This is operating profit before net legacy
building safety expense and other exceptional items divided by total
revenue. The Directors consider this to be an important indicator of the
operating performance of the Group.
§ Net underlying finance expense - This is the net finance expense before
any directly attributable finance expense or finance income relating to the
net legacy building safety expense and other exceptional items. The
Directors consider this to be an important measure when assessing whether the
Group is using the most cost effective source of finance.
§ Net finance expense - This is finance expenses less finance income. The
Directors consider this to be an important measure when assessing whether the
Group is using the most cost effective source of finance.
§ Underlying profit before taxation - This is the profit before taxation
before net legacy building safety expense and other exceptional items. The
Directors consider this to be an important indicator of the profitability of
the Group before taxation.
§ Underlying profit for the period - This is the profit for the period
before net legacy building safety expense and other exceptional items. The
Directors consider this to be an important indicator of the profitability of
the Group.
§ Underlying earnings per share - This is calculated as underlying profit
for the period divided by the weighted average number of ordinary shares in
issue during the period (excluding the weighted average number of ordinary
shares held by the Group or Trust which are treated as cancelled). This is
calculated in note 3.
§ Underlying dividend cover - This is calculated as underlying profit for
the period per ordinary share for the period divided by the dividend per
ordinary share relating to that period. At the half year the dividend per
ordinary share is the approved interim ordinary dividend, and for the full
year it is the interim dividend paid plus the proposed final dividend. The
Directors consider this an important indicator of the proportion of underlying
earnings paid to shareholders and reinvested in the business.
Notes (continued)
15. Alternative performance measures (continued)
§ Dividend cover - This is calculated as earnings per ordinary share for the
period divided by the dividend per ordinary share relating to that period.
At the half year the dividend per ordinary share is the approved interim
ordinary dividend, and for the full year it is the interim dividend paid plus
the proposed final dividend. The Directors consider this an important
indicator of the proportion of earnings paid to shareholders and reinvested in
the business.
§ Capital invested in land, net of land creditors, and work-in-progress -
This is calculated as shown in the table below. The Directors consider this
as an indicator of the net investment by the Group in the period to achieve
future growth.
31 January 2026 31 January 2025
31 January 2026 31 July Movement 31 January 2025 31 July Movement
2025 2024
Per balance sheet £m £m £m £m £m £m
Land 2,465.2 2,502.9 (37.7) 2,538.2 2,431.4 106.8
Work-in-progress 2,104.0 2,165.0 (61.0) 2,064.2 2,123.9 (59.7)
(Decrease)/increase in capital invested in land and work-in-progress in the (98.7)
period
47.1
Land creditors (289.6) (337.6) 48.0 (289.7) (225.3) (64.4)
Decrease in capital invested in land, net of land creditors, and (50.7)
work-in-progress in the period
(17.3)
§ Net asset value per ordinary share ('NAV') - This is calculated as total
net assets divided by the number of ordinary shares in issue at the end of
each period. The Directors consider this to be a proxy when reviewing
whether value, on a share by share basis, has increased or decreased in the
period.
§ Capital employed - Capital employed is defined as the total of equity plus
net debt or less net cash. The Directors consider this to be an important
indicator of the operating efficiency and performance of the Group. The
definition has been updated in the period as explained below in the
calculation for underlying return on capital employed.
§ Underlying return on capital employed ('underlying RoCE') - This is
calculated as operating profit before net legacy building safety expense and
other exceptional items divided by the average capital employed. Average
capital employed is calculated based on opening and half year capital
employed. The calculation is shown in the table below. The Directors
consider this to be an important indicator of whether the Group is achieving a
sufficient return on its investments.
( ) 31 January 2026 31 January 2025*
Capital employed Land creditors Capital employed including land creditors Capital employed Land creditors Capital employed including land creditors
£m £m £m £m £m £m
Underlying operating profit 159.0 159.0 156.6 156.6
Capital employed/land creditors:
Opening 3,514.4 337.6 3,852.0 3,475.9 225.3 3,701.2
Half year 3,594.9 289.6 3,884.5 3,530.4 289.7 3,820.1
3,554.7 313.6 3,868.3 257.5 3,760.7
Average 3,503.2
8.9% 8.2%
Annualised underlying return on capital employed
8.9% 8.3%
*The definition of capital employed has been updated to deduct net cash. This
had no impact on the comparative figures. This was done to ensure consistency
in the calculation of the performance measure with other companies in the
housebuilding sector to allow for more meaningful comparison.
Notes (continued)
15. Alternative performance measures (continued)
§ Return on capital employed ('RoCE') - This is calculated as operating
profit divided by the average capital employed. Average capital employed is
calculated based on opening and half year capital employed. The calculation
is shown in the table below. The Directors consider this to be an important
indicator of whether the Group is achieving a sufficient return on its
investments.
( ) 31 January 2026 31 January 2025*
Capital employed Land creditors Capital employed including land creditors Capital employed Land creditors Capital employed including land creditors
£m £m £m £m £m £m
Operating profit 154.5 154.5 154.5 154.5
Capital employed/land creditors:
Opening 3,514.4 337.6 3,852.0 3,475.9 225.3 3,701.2
Half year 3,594.9 289.6 3,884.5 3,530.4 289.7 3,820.1
3,554.7 313.6 3,868.3 257.5 3,760.7
Average 3,503.2
8.7% 8.0%
Annualised return on capital employed 8.8% 8.2%
*The definition of capital employed has been updated to deduct net cash, this
had no impact on the comparative figures. This was done to ensure consistency
in the calculation of the performance measure with other companies in the
housebuilding sector to allow for more meaningful comparison.
§ Underlying pre-tax return on equity ('underlying RoE') - This is calculated
as profit for the period before taxation before net legacy building safety
expense and other exceptional items, divided by the average of the opening and
half year net assets. The Directors consider this to be a good indicator of
the operating efficiency of the Group.
31 January 2026 31 January 2025
£m £m
Underlying profit before taxation 150.9 150.2
Net assets:
Opening 3,556.2 3,465.4
Half year 3,522.9 3,522.4
3,539.6
Average 3,493.9
8.5%
Annualised underlying pre-tax return on equity 8.6%
§ Pre-tax return on equity ('RoE') - This is calculated as profit before
taxation divided by the average of the opening and half year net assets. The
Directors consider this to be a good indicator of the operating efficiency of
the Group.
31 January 2026 31 January 2025
£m £m
Profit before taxation 139.9 140.8
Net assets:
Opening 3,556.2 3,465.4
Half year 3,522.9 3,522.4
3,539.6
Average 3,493.9
7.9%
Annualised pre-tax return on equity 8.1%
Notes (continued)
15. Alternative performance measures (continued)
§ Asset turn - Asset turn is calculated as revenue divided by the average
capital employed. Average capital employed is calculated based on opening
and half year capital employed. The Directors consider this to be an
important indicator of how efficiently the Group is using its assets to
generate revenue.
§ Underlying post-tax return on equity - This is calculated as profit for the
period before net legacy building safety expense and other exceptional items,
divided by the average of the opening and half year net assets. The
Directors consider this to be a good indicator of the operating efficiency of
the Group.
31 January 2026 31 January 2025
£m £m
Underlying profit for the period 107.6 107.1
Net assets:
Opening 3,556.2 3,465.4
Half year 3,522.9 3,522.4
3,539.6
Average 3,493.9
6.1%
Annualised underlying post-tax return on equity 6.1%
§ Post-tax return on equity - This is calculated as profit for the period
divided by the average of the opening and half year net assets. The
Directors consider this to be a good indicator of the operating efficiency of
the Group.
31 January 2026 31 January 2025
£m £m
Profit for the period 99.7 100.4
Net assets:
Opening 3,556.2 3,465.4
Half year 3,522.9 3,522.4
3,539.6
Average 3,493.9
5.6%
Annualised post-tax return on equity 5.7%
§ Total growth in value per ordinary share - The Directors use this as a
proxy for the increase in shareholder value since 31 January 2023. A period
of 3 years is used to reflect medium-term growth.
Net asset value per ordinary share:
At 31 January 2026 3,005p
At 31 January 2023 2,819p
Net asset value growth per ordinary share 186p
Dividend paid per ordinary share:
12 months to 31 January 2026 70.0p
12 months to 31 January 2025 54.0p
12 months to 31 January 2024 140.0p
Cumulative dividends paid per ordinary share 264.0p
Total growth in value per ordinary share 450.0p
Notes (continued)
15. Alternative performance measures (continued)
§ Annualised accounting return in NAV and dividends paid since 31 January
2023 - This is calculated as the annualised increase in net asset value per
ordinary share plus cumulative ordinary dividends paid per ordinary share
since 31 January 2023 (as detailed above) divided by the net asset value per
ordinary share at 31 January 2023. The Directors use this as a proxy for the
increase in shareholder value since 31 January 2023.
Net asset value growth per ordinary share 186p
Dividend paid per ordinary share 264.0p
Total growth in value per ordinary share 450.0p
Net asset value per ordinary share at 31 January 2023 2,819p
Total value per ordinary share 3,269.0p
Annualised accounting return = (3,269.0/2,819)^(1/3)-1 5.1%
§ Annualised accounting return in NAV and dividends paid since 31 January
2016 - This is calculated as the annualised increase in net asset value per
ordinary share plus cumulative ordinary dividends paid per ordinary share
since 31 January 2016 divided by the net asset value per ordinary share at 31
January 2016. The Directors use this as a proxy for the increase in
shareholder value since 31 January 2016.
Net asset value per ordinary share:
At 31 January 2026 3,005p
At 31 January 2016 1,383p
Net asset value growth per ordinary share 1,622p
Dividend paid per ordinary share:
12 months to 31 January 2026 70.0p
12 months to 31 January 2025 54.0p
12 months to 31 January 2024 140.0p
12 months to 31 January 2023 140.0p
12 months to 31 January 2022 117.5p
12 months to 31 January 2021 50.0p
12 months to 31 January 2020 150.4p
12 months to 31 January 2019 143.0p
12 months to 31 January 2018 122.0p
12 months to 31 January 2017 108.0p
Cumulative dividends paid per ordinary share 1,094.9p
Total growth in value per ordinary share 2,716.9p
Net asset value per ordinary share at 31 January 2016 1,383p
Total value per ordinary share 4,099.9p
Annualised accounting return = (4,099.9/1,383)^(1/10)-1 11.5%
Notes (continued)
15. Alternative performance measures (continued)
§ Capital growth in the 12 month period - This is calculated as the increase
in NAV in the 12 month period combined with the ordinary dividend paid in the
period.
Net asset value per ordinary share:
At 31 January 2026 3,005p
At 31 January 2025 2,960p
Net asset value growth per ordinary share 45p
Dividend paid per ordinary share:
12 months to 31 January 2026 70.0p
Capital growth in the 12 month period 115.0p
§ Underlying capital growth in the 12 month period - This is calculated as
capital growth in the 12 month period before net legacy building safety
expense and other exceptional items per share.
Capital growth in the 12 month period 115.0p
Net legacy building safety expense and other exceptional items per share 45.5p
Underlying capital growth in the period 160.5p
Net asset value at 31 January 2025 2,960p
Underlying capital growth (160.5p/2,960p) 5.4%
§ Net (debt)/cash - This is the cash and cash equivalents less bank debt and
fixed rate sterling USPP notes. Net (debt)/cash does not include lease
liabilities, which are reported within trade and other payables on the balance
sheet. The Directors consider this to be a good indicator of the financing
position of the Group. This is reconciled in note 7.
§ Average net (debt)/cash - This is calculated by averaging the net
(debt)/cash position at 1 August and each month end during the period. The
Directors consider this to be a good indicator of the financing position of
the Group throughout the period.
§ Cash generated from operations before investment in land, net of land
creditors, and work-in-progress - This is calculated as shown in the table
below. The Directors consider this as an indicator of whether the Group is
generating cash before investing in land and work-in-progress to achieve
future growth.
31 January 2026 31 January 2025
£m £m
Cash from operations 42.7 95.3
Less: decrease in capital invested in land, net of land creditors, and (50.7) (17.3)
work-in-progress in the period (as described above)
(8.0)
Cash (utilised in)/generated from operations before investment in land, net of 78.0
land creditors, and work-in-progress
Notes (continued)
15. Alternative performance measures (continued)
§ Adjusted operating cashflow (before land spend, legacy building safety
spend, shareholder returns and changes in debt borrowings) - This is
calculated as the net change in cash and cash equivalents, adding back
cashflows relating to land spend, the utilisation of the legacy building
safety provision, shareholder returns and changes in debt borrowings. Land
spend is cashflows related to the acquisition of land in the period.
Shareholder returns include payments to shareholders through dividends and
share buyback programmes. The Directors consider this as an indicator of how
effective the Group is at generating cash to invest in future growth and drive
long term value creation for shareholders.
31 January 2026 31 January 2025
£m £m
Net (decrease)/increase in cash and cash equivalents (53.8) 2.5
Add back:
Land spend 302.0 302.0
Utilisation of total legacy building safety improvements provision, net of 20.6 16.5
reimbursement asset
Increase in bank borrowings (60.0) -
Dividends paid 57.6 45.1
Share buyback programme 47.7 -
314.1
Adjusted operated cashflow (before land spend, legacy building safety spend, 366.1
shareholder returns and changes in debt borrowings)
§ Adjusted gearing - This is calculated as the total of net (debt)/cash and
land creditors divided by total equity. The Directors believe that land
creditors are a source of long-term finance so this provides an alternative
indicator of the financial stability of the Group.
31 January 2026 31 January 2025
£m £m
Net debt (72.0) (8.0)
Land creditors (289.6) (289.7)
Total net debt (361.6) (297.7)
Total equity (3,522.9) (3,522.4)
10.3%
Adjusted gearing 8.5%
§ Gearing - This is calculated as net (debt)/cash divided by total equity.
The Directors consider this to be a good indicator of the financial stability
of the Group.
31 January 2026 31 January 2025
£m £m
Net debt (72.0) (8.0)
Total equity (3,522.9) (3,522.4)
2.0%
Gearing 0.2%
§ Order book - This is calculated as the total expected sales value of
current reservations that have not legally completed. The Directors consider
this to be an important indicator of the likely future operating performance
of the Group.
Principal risks and uncertainties
A risk register is maintained detailing all potential risks and our risk
management processes ensure that all aspects of the Group are considered, from
strategy through to operational execution which includes any specialist
business areas.
The risk register is reviewed as part of our management reporting processes,
resulting in the regular assessment of risk, severity and any required
mitigating actions. The severity of risk is determined based on a defined
scoring system assessing risk impact and likelihood.
A summary of risks is reported to management, the Audit Committee, and the
Board, which includes risks considered to be outside of our risk appetite
after mitigation. This summary is reviewed throughout the year, with the Board
systematically considering the risks and any changes that have occurred.
Once a year, via the Audit Committee, the Board determines whether the risk
management framework is appropriately designed and operating effectively. The
Directors confirm that they have conducted a robust assessment of the
principal risks facing the Group.
The Board has completed its assessment of the Group's emerging and principal
risks. The following nine principal risks to our business have been
identified:
Risk and description Strategic relevance KPIs Mitigation
Construction resources
Shortages of building materials and appropriately skilled § Failure to secure the required quantity and quality of resources causes § Number of homes sold. § Robust forecasting and forward planning of labour and materials
subcontractors at competitive prices. delays, impacting the ability to deliver volume growth targets.
requirements.
§ Operating profit.
§ Pricing pressures / increased costs impact returns.
§ Processes are in place to select, appoint, manage, and build long-term
§ Operating margin. relationships with subcontractors and suppliers.
§ EPS.
§ Gross margin.
§ Customer satisfaction score.
Climate change and the environment
Failure to evolve sustainable business practices and operations in response to § There is an increased focus on the actions taken by businesses in response § Tonnes of carbon emissions per legal completion. § Consultation with specialist external advisers and subject matter experts
climate change, including physical environmental impacts and transition risks to climate change and the disclosures made. Failure to improve policies,
(e.g. sustainability consultants).
associated with new regulation, reporting requirements, and increased reporting and performance in line with new government regulations and § Percentage of renewable electricity.
social/market expectations. heightened expectations could lead to financial penalties and reputational
§ Continual monitoring of new and evolving requirements as part of our legal
damage. § Tonnes of waste per home built. and regulatory compliance framework.
§ The physical impacts of climate change could lead to disruptions within the § Percentage of waste diverted from landfill. § Carbon reduction is a key priority under the Group's 'Better with Bellway'
supply chain and build programmes. sustainability strategy.
§ Dedicated sustainability, innovations and biodiversity resources in place
to assess risks, monitor performance and drive improvement.
§ Regular review of the design and features of new homes, along with
construction methods and the sustainability of materials.
Economy and market
Changes in the external environment (including, but not limited to, house § Reduced affordability has a negative impact on customer demand for new § Number of homes sold. § Board level monitoring of the housing market and economic environment
price inflation, interest rates, mortgage availability, unemployment, homes and consequently our ability to generate sales at good returns.
alongside key business metrics, leading to development of action plans as
government policy) reduce the affordability of new homes, resulting in reduced § Operating profit. necessary.
sales rates.
§ Operating margin. § Disciplined operating framework, strong balance sheet and low financial
gearing.
§ RoCE.
§ Product range and pricing strategy based on regional market conditions.
§ EPS.
§ Regular engagement with industry peers, representative bodies, and new
§ Gross margin. build mortgage lenders.
§ Customer satisfaction score. § Use of sales incentives such as part-exchange, and government-backed
schemes to encourage the selling process.
§ Reservation rate.
§ Quarterly site valuations and monthly budget reviews based on latest market
§ Order book value. data.
§ Average selling price.
Health and safety
A serious health and safety or environmental breach and/or incident occurs. § Failure to maintain safe working conditions would impact employee wellbeing § Number of RIDDOR seven-day reportable incidents per 100,000 site § Health and Safety Policy and procedures in place, supported by Group-wide
and the creation of a positive working environment. operatives. training.
§ Injury to an individual while at one of our business locations could delay § Health and safety incident rates. § Regular visits to sites by both our Group Health and Safety function
construction and result in criminal prosecution, civil litigation, and
(independent of divisions) and external specialist consultants to monitor
reputational damage. § Number of near-miss incidents reported. standards and performance against health and safety policies and legislation.
§ Number of NHBC Pride in the Job awards. § The Board considers health and safety matters at each meeting.
Human resources
Inability to attract, recruit and retain high-quality people. § Failure to attract and retain people with appropriate skills would affect § Employee voluntary turnover rate. § Continued development of our Group HR function and implementation of our
our ability to perform and deliver our strategy and volume growth targets.
people strategy.
§ Number of graduates, trainees, and apprentices.
§ Established human resources programme for apprentices, graduates, and site
§ Employees who have worked for the Group for over ten years or more. management.
§ Training days per employee. § Monitoring staff turnover, absence data and feedback from exit interviews.
§ Senior management gender split. § Competitive salary and benefits packages which are regularly reviewed and
benchmarked.
§ Percentage of staff in earn and learn roles.
§ Employee engagement activities undertaken, including an annual survey, with
§ Employee Engagement Survey response rate. results communicated to the Board.
§ Percentage of staff who would describe Bellway as a 'great place to § Succession plans in place and key person dependencies identified and
work'. mitigated.
§ Robust programme of training provided to employees which is regularly
updated and refreshed.
§ Development programmes for senior leaders and middle managers in place.
IT and security
Failure to have suitable IT systems in place that are appropriately supported § Poor performance of our systems would disrupt operational activity and § Operating profit. § Continued investment in infrastructure and systems.
and secured. impact the delivery of our strategy.
§ Operating margin. § Group-wide systems in operation which are centrally controlled by an
§ An IT security breach could result in the loss of data, with significant
in-house IT function, supported by a specialist outsourced provider.
potential fines and reputational damage. § RoCE.
§ IT security policy and procedures in place with regular Group-wide
§ RoE. training.
§ EPS. § Regular review and testing of our IT security measures, contingency plans
and policies.
§ Gross margin.
§ Security Committee in place.
§ Customer satisfaction score.
Land and planning
Inability to source suitable land at appropriate gross margins and return on § Insufficient land at appropriate margins, onerous planning conditions or a § Number of homes sold. § Continued development of our Group Strategic Land function and
capital employed. failure to obtain planning approval within appropriate timescales would
implementation of our land strategy.
exacerbate the challenge of developing new homes, restrict our ability to § Operating profit.
deliver volume growth targets and impact future returns.
§ Increased investment in land and more sites with DPP.
§ Operating margin.
Delays and complexity in the planning process.
§ Regular review by Group and divisions of the quantity, location, and
§ RoCE. planning status of land against growth targets to ensure our land bank
supports immediate, medium-term, and strategic requirements.
§ EPS.
§ Formal land acquisition process in place for the appraisal and approval of
§ Gross margin. all land purchases, including pre-purchase due diligence and Group level
challenge of viability assumptions.
§ Number of plots in owned and controlled land bank with DPP.
§ Group and divisional planning specialists in place to support the securing
§ RoE. of implementable planning permissions.
§ Number of plots in 'pipeline'.
§ Number of plots in strategic land bank - positive planning status.
§ Number of plots in strategic land bank - longer-term interests.
§ Number of plots acquired with DPP.
§ Number of plots converted from medium-term 'pipeline'.
Legal and regulatory compliance
Failure to comply with legislation and regulatory requirements, including the § Lack of an appropriate compliance framework and/or compliance breaches § Number of homes sold. § In-house expertise from Group functions such as Company Secretariat, Legal,
Self Remediation Terms. could incur fines, delay business operations and lead to re-work across sites,
Health and Safety and Technical/Design, who advise and support divisions on
which will impact our reputation and profitability. § Operating profit. legal compliance and regulatory matters.
§ Operating margin. § Consultation with government agencies, specialist external legal advisers
and subject matter experts, (e.g. fire safety engineers).
§ RoCE.
§ Strengthened Group-wide policies, guidance, and training in place supported
§ EPS. by externally facilitated whistleblowing and reporting procedures.
§ Gross margin. § Continual monitoring and review of changes to legislation and regulation,
including government guidance, advice notes and sector specific updates.
§ Regular liaison with industry peers and the HBF on compliance requirements
and matters.
Unforeseen significant event
An unforeseen significant national or global event occurs. § The economic uncertainty brought about by an unforeseen significant event § NAV. § Strong balance sheet, low financial gearing, committed bank loan facilities
could materially impact the Group's operations and liquidity.
and USPP debt which would help ensure resilience during a recession.
§ Operating profit.
§ Damage to reputation if the Group is not perceived to be following
§ Maintenance of business resilience and continuity plans covering offices,
We are mindful of the current conflict in the Middle East and continue to government guidelines and acting responsibly. § Operating margin. sites, and IT.
monitor the situation, acknowledging the potential impact on the UK economy,
supply chains and inflation/interest rates. § RoCE. § Experienced and well-established senior management team.
§ EPS. § Continued investment in systems and infrastructure to enable robust agile
working.
§ Total dividend per ordinary share.
§ Monitoring of government guidelines (including the Construction Leadership
§ Gross margin. Council).
§ Reservation rate. § Regular communications with subcontractors and suppliers to understand any
potential issues as a result of the event on their own business and supply
§ Order book value. chain.
§ Employee turnover.
The Group also considers any emerging risks that have the potential to impact
the achievement of our strategy, but which cannot yet be fully defined and
assessed. These uncertainties are reviewed as part of our established risk
management framework, discussed regularly by management, the Audit Committee
and the Board, and elevated to principal risks (either as new risks or an
extension of existing risks) when warranted.
Glossary
Affordable Housing
Social rented and intermediate housing provided to specified eligible
households whose needs are not met by the market, at a cost low enough for
them to afford, determined with regard to local incomes and local house
prices. It is generally provided by councils and not-for-profit organisations
such as housing associations.
Average Selling Price
Calculated by dividing the total housing revenue by the number of homes sold.
Biodiversity Net Gain ('BNG')
Is an approach to development and land management, that aims to leave the
natural environment in a measurably better state than it was beforehand.
Cancellation Rate
The rate at which customers withdraw from a house purchase after paying the
reservation fee, but before contracts are exchanged, usually due to
difficulties in obtaining mortgage finance. Reservation fees are refunded in
accordance with the
New Homes Quality Code.
Earnings per Share ('EPS')
Profit attributable to ordinary equity shareholders divided by the weighted
average number of ordinary shares in issue during the financial period,
excluding the weighted average number of ordinary shares held by the Group or
Trust which are treated as cancelled.
Executive Board
The Executive Board is made up of the Executive Directors of Bellway p.l.c.
Home Builders' Federation ('HBF')
The HBF is an industry body representing the homebuilding industry in England
and Wales. It represents member interests on a national and regional level to
create the best possible environment in which to deliver new homes.
Land Bank
The land bank is comprised of three tiers: i) owned or unconditionally
contracted land with an implementable detailed planning permission ('DPP');
ii) medium-term 'pipeline' land owned or controlled by the Group, pending an
implementable DPP; iii) strategic long-term plots which are typically held
under option or through a promotion agreement.
Land with DPP
Plots owned or unconditionally contracted by the Group where there is an
implementable detailed planning permission.
Legacy Building Safety Improvements Provision
Included within this provision, there are two components (i) SRT and
associated review, and (ii) structural defects provision.
MHCLG
Ministry for Housing, Communities and Local Government formerly Department for
Levelling up, Housing and Communities ('DLUHC').
National House Building Council ('NHBC')
The NHBC is the leading warranty insurance provider and body responsible for
setting standards of construction for UK housebuilding for new and newly
converted homes.
Net Legacy Building Safety Expense
This contains the income statement movements in relation to the legacy
building safety provision and any associated reimbursement assets.
New Homes Quality Board ('NHQB')
An independent not-for-profit body which was established for the purpose of
developing a new framework to oversee reforms in the build quality of new
homes and the customer service provided by developers.
New Homes Quality Code ('NHQC')
An industry code of practice that lays out a mandatory set of requirements
which must be adopted and observed by all registered developers.
Pipeline
Plots which are either owned or contracted by the Group, pending an
implementable detailed planning permission, with development generally
expected to commence within the next three years.
Planning Permission
Usually granted by the local planning authority, this permission allows a plot
of land to be built on, change its use or for an
existing building to be redeveloped or altered. Permission is either 'outline'
when detailed plans are still to be approved, or 'detailed' when detailed
plans have been approved.
Residential Property Developer Tax ('RPDT')
RPDT is a tax, introduced in April 2022, which is charged at a rate of 4% on
certain profits of companies carrying out residential property development.
Self-Remediation Terms ('SRT')
Is a commitment to remediate buildings over 11 metres in height with
identified life critical fire safety issues, which were constructed in England
since 5 April 1992.
Site/Phase
A site is a concise area of land on which homes are being constructed. Larger
sites may be divided into a number of phases which are developed at different
times.
Social Housing
Housing that is let at low rents and on a secure basis to people in housing
need. It is generally provided by councils and not-for-profit organisations
such as housing associations.
Strategic Land Holdings
These are plots which are typically held under option or through a promotion
agreement.
Underlying
Underlying refers to any statutory performance measure or alternative
performance measure which is before net legacy building safety expense and
other exceptional items. The Group believes that underlying metrics are useful
for investors as these measures are closely monitored by the Directors in
assessing Bellway's operating performance, thereby allowing investors to
understand and evaluate performance on the same basis as management.
Statement of Directors' Responsibilities
We confirm that to the best of our knowledge:
§ the condensed consolidated interim financial statements have been prepared
in accordance with UK adopted IAS 34 'Interim Financial Reporting';
§ the Half Year Report 2026 includes a fair review of the information
required by:
a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed consolidated interim
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place in the first six months of the
current financial year and that have materially affected the financial
position or performance of the Group during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
The directors of Bellway p.l.c. are listed in the Annual Report and Accounts
for the year ended 31 July 2025.
For and on behalf of the Board
Jason Honeyman
Chief Executive
Registered number 1372603
23 March 2026
Note on forward-looking statements
Certain statements in this presentation are forward-looking statements which
are based on Bellway p.l.c.'s expectations, intentions and projections
regarding its future performance, anticipated events or trends and other
matters that are not historical facts. Such forward-looking statements can be
identified by the fact that they do not relate only to historical or current
facts. Forward-looking statements sometimes use words such as "aim",
"anticipate", "target", "expect", "estimate", "intend", "plan", "goal",
"believe", "may", "could", "should" or other words of similar meaning. These
statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed or implied by such
forward-looking statements including, but not limited to, those risks set out
in the "Principal Risks" section in our most recently published annual report
and accounts. Given these risks and uncertainties, no assurance can be given
that any particular expectation will be met and reliance should not be placed
on any forward-looking statement. Forward-looking statements speak only as of
the date of such
statements and, except as required by applicable law or regulation, Bellway
p.l.c. undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR EAKDDAAPKEFA
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Bellway
See all newsREG - Bellway PLC - Transaction in Own Shares
AnnouncementREG - Bellway PLC - Interim Results Announcement
AnnouncementREG - Bellway PLC - Transaction in Own Shares
AnnouncementREG - Bellway PLC - Transaction in Own Shares
AnnouncementREG - Bellway PLC - Transaction in Own Shares
Announcement