REG - Bellway PLC - Trading Update

BellwayAnnouncement

10/02/2026 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:20260210:nRSJ3102Sa&default-theme=true

RNS Number : 3102S  Bellway PLC  10 February 2026

Bellway p.l.c.

 

Trading Update

 

Tuesday 10 February 2026

 

 

Bellway p.l.c. ('Bellway' or the 'Group') is today issuing a Trading Update
for the six months ended 31 January 2026 ahead of its Interim Results
announcement on Tuesday 24 March 2026.

 

 

Highlights

 

§ Growth in total housing completions to 4,702 homes (2025 - 4,577) at an
average selling price of around £322,000 (2025 - £310,581).

§ 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).

§ The forward order book at 31 January 2026 comprised 4,442 homes (2025 -
4,726), with a value of £1,241.6m(1) (2025 - £1,311.5m).

§ In line with previous guidance, the Group is on track to deliver full year
volume output of around 9,200 homes (31 July 2025 - 8,749).

§ Reflecting the strength of our land bank and drive for enhanced capital
efficiency, we have continued with a disciplined approach to land acquisition
and contracted to purchase 4,721 owned and controlled plots during the period
(2025 - 5,246).

§ The £150m share buyback launched on 14 October 2025 is progressing well,
with 1.76m shares purchased at a cost of around £48m during the period.

§ Bellway has a well-capitalised balance sheet with modest period-end net
debt of £72m(2) (2025 - net debt of £8.0m) and adjusted gearing, including
land creditors, remains low at around 10%(3) (2025 - 8.5%). This is in-line
with our approach to utilise an efficient capital structure, as outlined at
our FY25 results.

 

Jason Honeyman, Chief Executive, commented:

 

"Bellway has delivered a robust first half performance in a challenging
market. Notwithstanding the current industry headwinds, our forward order book
and strong outlet opening programme leave us well-placed to meet our targeted
growth in volume output for the full year, and I remain confident that we can
drive increased cash generation and shareholder returns in FY26 and beyond.

We welcome the Government's reforms to the planning system, however, to make
meaningful headway against its ambitious housing targets, the Government must
also make an early commitment to ease demand-side pressures by introducing
essential financial support for first-time buyers."

 

Results and trading

 

The Group entered FY26 with a strong forward order book and, despite subdued
trading through the autumn, delivered a robust performance with 2.7% growth in
total housing completions to 4,702 homes (2025 - 4,577). The proportion of
private completions was 79% of the total (2025 - 79%), and the overall average
selling price rose to around £322,000 (2025 - £310,581). The increase in the
average selling price was driven by geographic and mix changes, with incentive
levels remaining broadly stable at between 4-5%. Housing revenue increased by
over 6% to £1.51bn (2025 - £1,421.6m).

 

Similar to the prior financial year, customer demand throughout the autumn was
impacted by uncertainty ahead of the Government's Budget. 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%).

 

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 remain on track to open over 40 new outlets in the
second half of the financial year and continue to expect to operate from an
average of around 245 in FY26.

 

The forward order book at 31 January 2026 comprised 4,442 homes (2025 -
4,726), with a value of £1,241.6m(1) (2025 - £1,311.5m).

 

 

Land investment

 

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 contracted to purchase 4,721 owned and
controlled plots in the first half (2025 - 5,246) across 15 sites (2025 - 32
sites) with a total contract value of £227m (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.

 

During the first half our strategic land bank has been further strengthened to
support our longer-term growth ambitions, with the Group entering 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.

 

 

Financial position and capital allocation

 

The Group has a well-capitalised balance sheet with modest period-end net debt
of £72m(2) (2025 - net debt of £8.0m), in line with the Board's
expectations. We remain focused on maintaining a strong and efficient balance
sheet, and our adjusted gearing, inclusive of land creditors, remains low at
around 10%(3) (2025 - 8.5%).

 

We have a sustainable ordinary dividend policy, and the Board expects to
maintain underlying dividend cover for the full financial year at around 2.5
times(4).

 

The £150m share buyback launched on 14 October 2025 is also progressing well,
with 1.76m shares purchased at a cost of around £48m during the period, and
the Group intends to continue with the return of excess capital in future
years.

 

 

Outlook

 

There are clear signs of improving customer demand in the early weeks of the
current spring selling season compared to the subdued trading environment
through the autumn. While we remain mindful of the sensitivity of customer
demand to mortgage affordability and the evolving economic backdrop, we have
been encouraged by a pick-up in both reservation rates and leads for our sales
teams.

 

Supported by our order book and strong outlet opening programme, the Group
remains on track to deliver full year volume output of around 9,200 homes (31
July 2025 - 8,749). We continue to expect the full year average selling price
to be around £320,000 (31 July 2025 - £316,412) and the underlying operating
margin to be around 11.0%(5) (31 July 2025 - 10.9%).

 

We have a high-quality land bank and the operational capacity across the Group
to support our plans for long-term growth, and the Board remains confident
that our drive for greater cash generation and capital efficiency will deliver
a recovery in returns and ongoing value creation for our shareholders.

 

 

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.

-    Comparatives are for the half-year ended 31 January 2025 or as at 31
January 2025 ('2025') unless otherwise stated.

1    Forward order book is the total expected sales value of current
reservations that have not legally completed.

2    Net debt is cash plus cash equivalents, less debt financing.

3    Adjusted gearing is the total of net debt and land creditors divided
by total equity.

4    Underlying dividend cover is underlying profit for the year per
ordinary share divided by the dividend per ordinary share relating to that
period.

5    Underlying operating margin is operating profit before net legacy
building safety expense and other exceptional items divided by total revenue.

 

 

For further information, please contact:

 

Bellway p.l.c.

Shane Doherty, Chief Financial Officer

Gavin Jago, Group Investor Relations Director

0191 217 0717

 

Media enquiries

Paul Lawler, Group Head of Communications

paul.lawler@bellway.co.uk

07813 392 669

 

Sodali & Co (Financial PR)

Justin Griffiths

Victoria Heslop

bellway@sodali.com

0207 100 6451

 

 

Certain statements in this announcement 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', 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.  Given these risks and uncertainties, prospective investors are
cautioned not to place undue reliance on forward-looking statements.
Forward-looking statements speak only as of the date of such statements and,
except as required by applicable law, 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  TSTDKLFBQLLBBBV



            Copyright 2019 Regulatory News Service, all rights reserved