Bellway p.l.c. (BLWYF) Q2 2025 Earnings Call Transcript

2025-03-25 13:39:04 ET

Bellway p.l.c. (BLWYF)

Q2 2025 Results Conference Call

March 25, 2025 05:00 AM ET

Company Participants

Jason Michael - Chief Executive Officer

Shane Doherty - Chief Financial Officer & Director

Simon Scougall - Chief Commercial Officer

Conference Call Participants

Ami Galla - Citi

Will Jones - Redburn Atlantic

Glynis Johnson - Jefferies

Chris Millington - Deutsche Numis

Allison Sun - Bank of America

Clyde Lewis - Peel Hunt

Alastair Stewart - Progressive

Charlie Campbell - Stifel

Presentation

Jason Michael

Good morning and welcome to Bellway's half year results. I'm joined by Shane, who most of you have met already. Simon is with us too and accompanied by a few of our senior management team.

If I could take you to the first slide. We've had a strong first half performance, with completions up by 12% to almost 4,600 homes. And that has driven a healthy increase in profit. The trading environment is much improved too. And while trading started slowly at the beginning of our financial year, there's been a notable pickup in both homebuyer enthusiasm and reservations since the start of the calendar year. Demand feels more robust, less fragile and supported by relative stability with mortgage rates. And that leaves us very well placed to deliver our full year target of 8,500 homes.

And to pick out a few highlights from our results. The order book has grown by around 20% to over 4,700 homes. Outlet numbers are up and averaged 248 in the period. And we have a strong land bank totaling some 95,000 plots, of which over 30,000 have a detailed consent.

Now looking at the figures on the slide, I'm pleased with our land bank. I'm pleased with our outlet position. And when coupled with our operational strength and our track record on delivery, Bellway are well placed to execute our multiyear growth story. The real focus here, the real opportunity is the box on RoCE. And at 9%, it's not good enough. There's clearly room for improvement. And Shane is going to offer his early thoughts and ideas on how we can deliver capital efficiencies through the group and drive a meaningful improvement on return on capital employed....

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