Bellway P.l.c. · LSE:BWY
Bellway P.l.c — H1 2011 Earnings Presentation
22 slides from Bellway P.l.c's earnings presentation, Mar 30, 2011
Slide 1: Analyst Presentation for half year ended 31 January 2011
Bellway p.l.c. Analyst Presentation for half year ended 31 January 2011
Slide 2: Highlights
Highlights Homes sold up 3.8% to 2,332 Turnover up 13.1% to £407.9m 8.1% increase in ASP to £168.4k Operating margin up 80bps to 6.9% Profit before tax up 26.3% to £24.0m Earnings per share - 15.3p Only £6.7m net bank debt Net asset value - 866p Interim dividend – 3.7p Results presentation 30 March
Slide 3: Turnover
Turnover for the 6 months ended 31 January 2011 2010 Homes Sold 2,332 2,247 3.8% Average Sales Price £168,428 £155,871 8.1% Housing Turnover £392.8m £350.2m 12.2% Other Turnover £15.1m £10.6m 42.5% Total Turnover £407.9m £360.8m 13.1% Results presentation 30 March 2011 -3-
Slide 4: Sales Statistics
Sales Statistics for the 6 months ended 31 January 2011 2010 Private Housing Homes sold 1,784 1,766 1.0% Average SP £180,812 £167,214 8.1% Social Housing Homes sold 548 481 13.9% Average SP £128,112 £114,225 12.2% Houses 64% 55% Apartments 36% 45% Results presentation 30 March 2011 -4-
Slide 5: Sales Statistics
Sales Statistics for the 6 months ended 31 January Selling price 2011 2010 Up to £100,000 14% 19% £100,001 to £150,000 37% 39% £150,001 to £200,000 25% 25% £200,001 to £250,000 13% 8% Over £250,000 11% 9% Average Sq. feet per home 948 849 Average Selling Price per Sq foot £178 £183 Results presentat
Slide 6: Operating Performance
Operating Performance for the 6 months ended 31 January 2011 2010 Gross Margin 12.4% 11.1% Admin Expenses 5.5% 5.0% Operating Margin 6.9% 6.1% Operating Profit £28.1m £22.1m Results presentation 30 March 2011 -6-
Slide 7: Finance Expense
Finance Expense for the 6 months ended 31 January 2011 2010 Net Interest Payable / (Receivable) £ 1.5m (£ 0.3m) Employee Benefits £ 0.2m £ 0.4m Land Creditors / Other Debtors - IAS39 £ 1.5m £ 2.0m Other interest (£ 0.1m) - Preference Dividend £ 1.0m £ 1.0m Finance Expense £ 4.1m £ 3.1m Average cash
Slide 8: Earnings and Dividends
Earnings and Dividends for the 6 months ended 31 January 2011 2010 Profit before tax £ 24.0m £ 19.0m Effective taxation rate 22.9% 26.3% Average no. of ordinary shares 120.7m 120.6m Earnings per share 15.3p 11.6p Dividend per ordinary share 3.7p 3.3p Results presentation 30 March 2011 -8-
Slide 9: Capital Employed
Capital Employed as at 31 January 31 July 2011 2010 £m £m Fixed Assets 16.5 15.9 Stocks 1,190.5 1,148.7 Debtors 90.5 82.2 Net cash - 65.7 Creditors (166.4) (195.8) Land Creditors (57.7) (61.9) CAPITAL EMPLOYED 1,073.4 1,054.8 Results presentation 30 March 2011 -9-
Slide 10: Stocks
Stocks as at 31 January 31 July 2011 2010 £m £m Land with Planning 690.7 619.5 Land pending Planning 51.0 105.5 Work in Progress 383.3 370.9 Showhomes 40.9 37.8 Part Exchange Stock 24.6 15.0 TOTAL 1,190.5 1,148.7 Results presentation 30 March 2011 - 10 -
Slide 11: Land with Planning
Land with Planning Plots Cost Average Plot Cost £m £k B/f August 2010 17,602 619.5 35.2 Sold (2,332) (101.5) 43.5 15,270 518.0 33.9 Net purchases 3,413 172.7 50.6 C/f January 2011 18,683 690.7 37.0 Results presentation 30 March 2011 - 11 -
Slide 12: Site Mix
Site Mix 2010/11 2011/12 2012/13 0% 20% 40% 60% 80% 100% Sites w ith provision Sites w ithout provision New sites at > 20% m argins Results presentation 30 March 2011 - 12 -
Slide 13: Finance
Finance as at 31 January 31 July 2011 2010 Net (borrowings)* / cash (£6.7m) £65.7m Gearing* 0.6% Nil Net Assets £1,046.7m £1,034.8m Net Asset Value per Ordinary Share 866p 856p * excluding £20m preference capital Results presentation 30 March 2011 - 13 -
Slide 14: Housing Market in H1
Housing Market in H1 Housing market remained difficult Generally the south was stronger than the north Incentives still needed but the mix changed as Government initiatives fell away Results presentation 30 March 2011 - 14 -
Slide 15: Completion Analysis
Completion Analysis for the 6 months ended 31 January 2011 2010 23% 11% 21% 10% 13% 14% 12% 13% 7% 13% 2% 9% 27% 25% Results presentation 30 March 2011 - 15 -
Slide 16: Sales Statistics
Sales Statistics for the 6 months ended 31 January 2011 2010 North Homes sold 1,186 927 27.9% Average SP £145,174 £136,653 6.2% South Homes sold 1,146 1,320 -13.2% Average SP £192,493 £169,367 13.7% Results presentation 30 March 2011 - 16 -
Slide 17: Land Buying
Land Buying Land spend £130m expended on land acquisition Plots owned with planning Increased to 18,683 plots 3,413 plots added to the land bank Plots pending planning 2,662 plots have successfully obtained a planning permission in the period Results presentation 30 March 2011 - 17 -
Slide 18: Land Bank
Land Bank 3 levels to our land bank 31 January 31 July 2011 2010 Plots owned with planning 18,683 17,602 Plots pending planning 13,000 15,000 Total plots 31,683 32,602 Long term potential plots > 2,800 > 2,800 Heads of terms agreed on further 4,000 plots * Results presentation 30 March 2011 - 18 -
Slide 19: Sales and Margin Growth
Sales and Margin Growth Increasing average selling price as the mix changes to more family housing Increasing outlets Now operating from 200 outlets compared with 185 at the start of this year Selling off plan remains difficult – completed units increased to 590 Operating from 30 recently acquired h
Slide 20: Cost Base
Cost Base Some minor material cost increases proposed Sub contract costs will probably not fall further and have remained static in the period Costs have remained neutral, but Build costs have fallen by between £7k and £9k since start of recession Costs will come under pressure due to carbon reducti
Slide 21: Market Place
Market Place Reservations 80 per week in first 6 months In the 6 weeks since 1 February reservations averaged 119 per week – up 7% Order book currently £479.2m - up 10% 66% of order book contracted ASP in order book of £173.4k – up 8% 700 reservations for 2011/12 Results presentation 30 March 2011 -
Slide 22: Summary
Summary Last year’s volumes now secured Target completions raised by around 5% Low gearing and £380m of bank facilities Future growth to come from:- Rising volume Growing average selling price due to mix changes Improving margins as we improve the site mix Results presentation 30 March 2011 - 22 -