Bellway reports rising profits

Jessica Middleton-Pugh

Bellway Homes enjoyed a 73% increase in pre-tax profit to £103.8m in the six months to 31 January 2014, up from £59.9m in the same period a year earlier.

Revenue was also up to £701.1m from £502.5m. The company announced a 77.8% increase in the interim dividend to 16p share, compared to 9p last time.

Bellway sold 3,245 homes in 2013, up 25% from 2,597 in 2012. The average selling price rose by 13% to £212,071.

Bellway opened an office in Warrington in August 2013, which it said had consistently performed well. The company also has an office in Liverpool.

The group's land bank contains 34,057 plots across the UK.

John Watson, chairman of Bellway, said: "The group's operational and balance sheet capacity for volume growth has allowed Bellway to respond positively to strong consumer demand. The resulting growth in earnings, together with a strong focus on increasing return on capital employed, has allowed the Group to enhance the total return to shareholders through growth in the net asset value, together with the payment of a regular and progressive dividend."

The Bellway share price was up 83p, or 5%, to 1690p this morning.

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