Bellway H1 profit falls on lower margins; reinstates dividend on brighter outlook

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Homebuilder Bellway reported a fall in first-half profit on lower margins, but reinstated its dividend on an upbeat outlook for the year.

For the half year ended 31 December, pre-tax profit fell to £280.2 million from £291.8 million year-on-year, while revenue increased 11.6% to £1.72 billion.

Volume grew 6.3% to a record 5,656 homes, but the operating margin fell to 17.3%, from 19.3%.

Looking ahead, the company expects to sell 10,000 homes, up from 5,321 homes last year, with margins expected to be around 17% down from 19.3%.

The average selling price grew 5.8% to £303,206, and is expected to be more than £295,000 for the year, up from £286,570 last year.

The company touted a robust forward sales position, with the forward order book at 14 March 8.4% ahead at £1,643.2 million, compared with £1,515.8 million last year.

The interim dividend was reinstated at 35.0p per share.