Bellway – 1210.5p

26th March 2013 –  interim results

Bellway put out a strong set of  interim results with revenue increasing 9.6% to £502.5m (2012: £458.6m) and profit before tax up 47.5% to £59.9m (2012: £40.6m). This was driven by an increase in operating margin from 10.1% to 12.8% and gave earnings per share of 37.9p (2012: 25.2p). The dividend was also raised 50% to 9.0p (2012: 6.0p). The company continues to trade from a low cost land bank and has reserved or legally completed 94% of its full year volume target. Although mortgage finance continues to be restrained any upturn will fuel even further demand for housing. The shares have had a very good run and now look up with events. HOLD 

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