Bellway p.l.c. (BWY) Q4 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

welcome to Bellway's full year results. As always I'm sure you will have a keen interest in autumn trading but first a few key points from last year. We've delivered a very credible performance in a particularly difficult trading environment. Housing completions at 10,945 homes we're only just behind last year's record output and underlying PBT at 533 million, down on last year, but still a solid performance, bearing in mind inflationary pressures. The dividend was maintained at 140 pence and combined with our 100 million share buyback, we've committed to return a total of 270 million to our shareholders. And notably, our balance sheet remains strong with over 230 million of net cash at the 31st of July. Now, understandably, trading conditions have been significantly impacted by rising interest rates. And in FY23, you may recall that our approach was to protect the balance sheet and lean markets. upon our operational strength and we achieved that by unwinding the order book to collect cash accelerating the delivery of affordable homes to underpin construction demand and working our land bank to encourage outlet growth for the years ahead looking forward into 2024 Our focus will be on preserving the business and positioning the group for recovery. Make no mistake, FY24 will be tough. High mortgage rates, cost of living pressures and a general election that often dampens demand. That said, there is room for optimism and potential for green shoots in 2025. Inflation may well be under control, mortgage rates may well moderate, and a new administration or government could bring a fresh impetus to the economy and add all that to the strong underlying demand that exists for new homes. And we could see order books and volumes start to improve. And Bellway is well-placed to c...