Bellway p.l.c.
Annual Report and Accounts 2024
About Us
Financial and Strategic Highlights 4
Who We Are 6
Strategic Report
Principal KPIs 10
Investment Case 14
Our Strategy and Business Model 16
Our Marketplace 22
Chair’s Statement 24
Chief Executive’s Market and Operational Review 26
Group Finance Director’s Review 30
‘Better with Bellway’ Overview 34
‘Better with Bellway’ Strategy and Priorities 39
Section 172 Statement 62
Key Stakeholder Relationships 63
Risk Management 79
Principal Risks 83
Task Force on Climate-related Financial Disclosures (‘TCFD’) 88
Sustainability Accounting Standards Board (‘SASB’) 96
Non-Financial and Sustainability Information Statement 100
Governance
Chair’s Statement on Corporate Governance 104
Board of Directors 106
Board Activities and Decisions 108
Board Leadership 110
Division of Responsibilities 111
Composition, Succession and Evaluation 115
Nomination Committee Report 116
Audit Committee Report 118
Remuneration Report 130
Sustainability Committee Report 153
Directors’ Report 154
Independent Auditor’s Report 158
Accounts
Group Income Statement 170
Group Statement of Comprehensive Income 171
Statements of Changes in Equity 172
Balance Sheets 174
Cash Flow Statements 175
Accounting Policies 176
Notes to the Financial Statements 178
Five Year Record 222
Other Information
Glossary 224
Advisers and Company Secretary 226
Shareholder Analysis and Financial Calendar 227
1 All figures relating to completions,
order book, reservations, cancellations,
and average selling price exclude the
Group’s share of its joint ventures, unless
otherwise stated.
2 Bellway uses a range of statutory
performance measures and alternative
performance measures when reviewing
the performance of the Group against
its strategy. Definitions of the alternative
performance measures, and a
reconciliation to statutory performance
measures, are included in note 28.
3 Underlying refers to any statutory
performance measure or alternative
performance measure before net legacy
building safety expense and exceptional
items (note 2).
4 Includes the Group’s share of land
owned and controlled through joint
venture partners comprising 905 plots
(2023 – 935 plots).
5 As measured by the Home Builders’
Federation using the eight-week NHBC
Customer Satisfaction survey.
6 Comparatives are for the year ended
31 July 2023 or as at 31 July 2023 (‘2023’)
unless otherwise stated.
Bellway p.l.c. Annual Report and Accounts 2024 1
Brammer family enjoying their
new Bellway home in Cheadle.
About Us
Financial and Strategic Highlights 4
Who We Are 6
2 Bellway p.l.c. Annual Report and Accounts 2024
Building
communities for
over 75 years
Growing from a local family business in 1946 to a FTSE
250 company, Bellway has been building high-quality
new homes across the UK for more than 75 years,
creating exceptional properties in desirable locations.
Father and daughter
site team, Ken and
Amy Somerville at
our Riverbrook Place
development, Crawley.
Street scene from
our Ridgewood
development
inStirling.
About Us
3Bellway p.l.c. Annual Report and Accounts 2024
Resilient performance
Year ended
31 July 2024
Year ended
31 July 2023 Movement
Housing completions 7,654 10,945 (30.1%)
Revenue £2,380.2m £3,406.6m (30.1%)
Underlying performance measures:
Gross profit (underlying) £381.1m
2,3
£687.3m
2,3
(44.6%)
Gross margin (underlying) 16.0%
2,3
20.2%
2,3
(420 bps)
Operating profit (underlying) £238.1m
2,3
£543.9m
2,3
(56.2%)
Operating margin (underlying) 10.0%
2,3
16.0%
2,3
(600 bps)
Profit before taxation (underlying) £226.1m
2,3
£532.6m
2,3
(57.5%)
Earnings per share (underlying) 135.2p
2,3
328.1p
2,3
(58.8%)
RoCE (underlying) 6.9%
2,3
15.8%
2,3
(890 bps)
Statutory and other measures:
Adjusting items (pre-tax) £42.4m £49.6m (14.5%)
Profit before taxation £183.7m £483.0m (62.0%)
Earnings per share 109.8p 297.7p (63.1%)
Proposed total dividend per share 54.0p 140.0p (61.4%)
Net asset value per share 2,913p
2
2,871p
2
+1.5%
Net (debt)/cash (£10.5m)
2
£232.0m
2
(104.5%)
Land bank (total plots) 95,292
4
98,164
4
(2.9%)
Summary
Resilient performance and well-positioned for strong multi-year growth.
Financial performance in line with our expectations
• Total housing completions of 7,654 homes (2023 – 10,945), at
anoverall average selling price of £307,909 (2023 – £310,306).
• Total revenue reduced by 30.1% to £2,380.2 million (2023 –
£3,406.6 million), due to the lower starting forward order book
and challenging trading conditions, particularly in the first half
ofthe financial year.
• Customer confidence gradually improved throughout the
year, driven by a moderation of both mortgage interest rates
and consumer price inflation, and an increase in wages.
Combined with an increase in outlet numbers, this led to a 13.8%
rise in the private reservation rate to an average of 124 per week
(2023 – 109).
• The private reservation rate per outlet per week increased by
10.9% to 0.51 (2023 – 0.46). The private reservation rate per outlet
per week in the second half of the financial year increased to
0.58 (six months to 31 July 2023 – 0.53) compared to 0.43 in
the first half (six months to 31 January 2023 – 0.38), driven by
the improving trading backdrop and aseasonal uplift through
the spring.
• The underlying operating margin was in line with previous
guidance at 10.0%
2,3
(2023 – 16.0%), with the reduction reflecting
the effect of lower volume output, cost inflation and the use
of targeted sales incentives, together with higher site-based
overheads due to the slower sales market since the summer
of 2022.
• Underlying profit before taxation was £226.1 million
2,3
(2023–£532.6 million) and in line with our expectations.
• Adjusting items relating to net expenses associated with legacy
building safety of £37.0 million (2023 – £49.6 million) and aborted
transaction costs of £5.4 million (2023 – £nil), resulted in reported
profit before tax of £183.7 million (2023 – £483.0 million).
• Underlying RoCE was lower at 6.9%
2,3
(2023 – 15.8%) due to the
decrease in both asset turn and the underlying operating margin.
The Group has a strong platform from which to increase volume
output, and the Board expects this to support an improvement in
RoCE from the current financial year.
High-quality land bank to support outlet opening
programme and volume growth ambitions
• The Group has a high-quality land bank which comprises 95,292
plots
4
(2023 – 98,164 plots).
• Bellway’s owned and controlled land bank of 48,887 plots (2023
– 53,629 plots) remains healthy and provides good visibility with
regards to outlet openings in the current financial year and beyond.
• The Group traded from an average of 245 outlets (2023 – 238),
an increase of 2.9%, driven by the strength of our land bank and
targeted approach to land acquisition, and was achieved despite
the delays in the planning system.
• Our site teams successfully opened 80 new sales outlets during
the year, and in financial year 2025 we currently expect to open
around 50 new sales outlets and maintain theaverage number
ataround 245.
Financial and Strategic Highlights
About Us
4 Bellway p.l.c. Annual Report and Accounts 2024
Clear strategic priorities
• Overall, during financial year 2024, the Group contracted to
purchase 4,621 owned and controlled plots (2023 – 4,715 plots)
across 27 sites (2023 – 35 sites) with a total contract value of
£344.8 million (2023 – £378.2 million).
• The improving economic outlook in terms of both lower
interest rates and house price stability has supported an
increase in our activity in the shorter-term land market in recent
months, with Heads of Terms agreed on around 8,100 plots at
29 September 2024.
• Building on the expansion of our strategic land bank in recent
years, the Group entered into option agreements for 35 sites
(2023 – 19 sites), which has enhanced our longer-term growth
prospects and overall land supply for a relatively low initial
capital outlay.
• Bellway’s strategic land bank comprises 45,500 plots (2023 –
43,600 plots), providing the Group with an excellent platform for
growth in the years ahead, with this further supported by the new
Government’s proposed reforms to the planning system.
Robust and well-capitalised balance sheet
• Bellway has a strong balance sheet, with low year-end net debt,
in line with expectations, at £10.5 million
2
(2023 – net cash of
£232.0 million), and modest adjusted gearing, inclusive of land
creditors, of 6.8%
2
(2023 – 4.0%).
• The Group has access to significant levels of committed debt
finance, totalling £530 million, and this provides ongoing
financial resilience while supporting land investment and our
growth ambitions. We expect to end the current financial year
maintaining a low level
2
of adjusted gearing.
• The proposed total dividend per share is 54.0p (2023 – 140.0p)
which reflects reduced underlying earnings, and is inline with
the Board’s previously stated policy of underlying dividend cover
of 2.5 times
2,3
.
‘Better with Bellway’ – our responsible
andsustainableapproach to business
• The efforts of our colleagues in delivering our ‘Better with
Bellway’ sustainability strategy have been reflected through
multiple industry awards, including ‘Large Housebuilder of
the Year’ and ‘Best Staff Development Award’ at the 2023
Housebuilder Awards.
• The Group’s flagship ‘Future Homes’ research project into carbon
reduction at the University of Salford has also won several
accolades, including ‘Best Sustainability Initiative’ at the 2023
Housebuilder Awards and ‘Major Project of the Year’ at the 2023
National Sustainability Awards.
• Supported by several initiatives across the business, strong
progress has been made in lowering our carbon footprint as
we continue reducing the Group’s emissions. This includes the
Group’s scope 1 and scope 2 carbon emissions, which have
reduced by 44.7% since our base year of 2019, and we are
in an excellent position to meet our goal of a 46% reduction
significantly ahead of the 2030 target.
• Timber frame construction offers a proven range of operational,
financial and environmental benefits. Following successful trials
across the Group in recent years, Bellway is targeting an increase
in timber frame usage, to around 30% of housing output by 2030,
and this will be delivered, in part, through ‘Bellway Home Space’,
our new proprietary timber frame production facility.
• Our ongoing focus on providing high-quality homes and
service for our customers has resulted in Bellway retaining its
position as a five-star
5
homebuilder for the eighth consecutive
year. Bellway remains fully committed to acting responsibly
with regards to building safety, and we continue to make good
progress on assessing and remediating legacy properties
through our dedicated Building Safety division. Since the start of
our remediation programme, the Group has spent £146.3 million
on legacy building safety issues.
• An additional net £37.0 million has been recognised in relation to
legacy building safety issues, as an adjusting item. This includes
an additional £15.3 million for structural defects in relation to an
isolated design issue with the reinforced concrete frame of an
apartment scheme in London, identified in financial year 2023.
Encouraging recent trading and improvingoutlook
• The combination of the improvement in trading and growth
in outlet numbers led to a strong increase in the forward
orderbook in financial year 2024. This comprised 5,144 homes
(2023 – 4,411 homes) and increased in value by 18.4% to
£1,412.9 million
2
(2023 – £1,193.5 million) at 31 July 2024.
• Since the start of the new financial year, customer demand
has remained robust and has been supported by an overall
reduction in mortgage rates over the summer.
• In the nine weeks since 1 August, and against a weak
comparative, the private reservation rate increased by 48.5%
to147 per week (1 August to 1 October 2023 – 99), representing
aprivate reservation rate per outlet per week of 0.59
(1 Augustto1 October 2023 – 0.41).
• The private reservation rate includes bulk investor sales,
onattractive financial terms, totalling 232 homes (1 August to
1 October 2023 – 71 homes) and representing a contribution
of0.10 to the private reservation rate (1 August to 1 October
2023–0.03).
• Reflecting recent trading and volume output, the forward
order book at 29 September 2024 remained at a healthy level,
comprised 5,109 homes (1 October 2023 – 4,636 homes) and had
a value of £1,427.9 million
2
(1 October 2023 – £1,232.3 million).
• The strength of the Group’s forward order book, outlet opening
programme and work-in-progress position provides Bellway with
an excellent platform to deliver a material increase in volume
output in financial year 2025.
• If market conditions remain stable, the Group is targeting to
deliver completions of at least 8,500 homes in the current
financial year (2024 – 7,654 homes), and as was the case in
financial year 2024, volume output is expected to be weighted
towards the first half (half year ended 31 January 2024 – 53.5%).
• We are aiming to retain a healthy forward order book at the
end of the current financial year (2024 – 5,144 homes) to serve
as a platform for further growth in volume output in financial
year 2026.
• Overall, pricing has remained firm across our regions, and in
financial year 2025 we currently expect the average selling price
to be around £310,000 (2024 – £307,909), and the underlying
operating margin to approach 11.0%
2,3
(2024 – 10.0%).
• The combination of Bellway’s operational and financial
strength leaves the Group very well-placed to deliver long-term
sustainable growth and ongoing value creation for shareholders.
About Us
5Bellway p.l.c. Annual Report and Accounts 2024
The Ashberry brand was launched in 2014 and is typically offered
on larger sites, alongside our Bellway brand. This provides two
differentiated outlets, offering greater choice for our customers.
This allows for improved sales rates, often exceeding what can
be achieved through the use of two Bellway outlets.
707
Homes sold
Bellway London was launched in 2018 to provide the London market
with a contemporary and cohesive identity that is recognisable across
the capital. This encompasses all of our developments in the London
boroughs, with a primary focus on the outer London boroughs and
commuter towns within the M25. Our property offerings range from
one-bedroom apartments to four-bedroom houses.
358
Homes sold
Bellways three brands represent our commitment to meeting the different needs
of our customers. Buying a home is one of the biggest decisions our customers
will ever make. Each brand offers choice to meet their needs, while ensuring
consistently high levels of quality and service.
Who We Are
Bellway is our main brand, established in 1946 with a passion for building
high-quality homes in carefully selected locations, designed to meet the
needs of families. To this day, we maintain these fundamental values,
combining our decades of expertise with the personalised local care
thatBellway is known for.
6,589
Homes sold
About Us
6 Bellway p.l.c. Annual Report and Accounts 2024
Divisional Office Locations
(including our Building Safety division)
Creating communities
acrossthe UK
20 trading
divisions
covering the main population centres across
England, Scotland and Wales
2,659 people
employed in the Group as at 31 July 2024
We currently operate from 20
divisions across the UK, covering
England, Scotland and Wales.
Our divisional structure allows our
experienced local management teams
to respond to specific local geographical
demands. Due to their detailed knowledge
about the areas surrounding our land
acquisitions, we are able to design and build
homes that meet high standards, and help
create strong local communities. In addition,
we have a dedicated Building Safety division,
a specialist team dedicated to assessing and
remediating legacy properties.
Motivated by
aclear vision
Our aim is to operate our business in an ethical
and sustainable manner, while simultaneously
building attractive, desirable and sustainable
developments where customers want to live
inharmony with existing communities.
About Us
7Bellway p.l.c. Annual Report and Accounts 2024
Strategic
Report
Principal KPIs 10
Investment Case 14
Our Strategy and Business Model 16
Our Marketplace 22
Chair’s Statement 24
Chief Executive’s Market
and Operational Review
26
Group Finance Director’s Review 30
‘Better with Bellway’ Overview 34
‘Better with Bellway’ Strategy
and Priorities
39
Section 172 Statement 62
Key Stakeholder Relationships 63
Risk Management 79
Principal Risks 83
Task Force on Climate-related
Financial Disclosures (‘TCFD’)
88
Sustainability Accounting
Standards Board (‘SASB’)
96
Non-Financial and Sustainability
Information Statement
100
Karl and Alex with their two children exploring
their new community in Worksop.
8 Bellway p.l.c. Annual Report and Accounts 2024
Sales Adviser Arjini Karunanithy
promoting a ‘Dusty Boot’ event
at our Millworks development
in Kings Langley.
Creating better
communities,
with Bellway
Bellway aims to provide a consistently high service and
quality homes to all our customers, and the efforts under
our Customer First programme have resulted in the Group
retaining its position as a five-star
5
homebuilder for the
eighthconsecutive year.
Street scene at
Wellfield Rise
development
inWingate.
Strategic Report
9Bellway p.l.c. Annual Report and Accounts 2024
Principal KPIs
The Group has ten principal KPIs, which are shown below. Our secondary performance measures,
which support these KPIs, are shown on pages 16 to 21 .
Financial and Operational KPIs
This KPI illustrates how the business model
is able to support the Group’s strategy of
delivering volume growth.
The underlying operating profit is one of the measures
used to determine the Directors’ annual bonus
payment. Underlying operating profit is before net
legacy building safety expense and exceptional items.
Underlying operating margin is before net legacy
building safety expense and exceptional items.
Operating margin demonstrates how efficiently the
business is being operated.
Number of homes sold (homes)
7,654 homes
(30.1%)
7,654
10,945
11,198
2022 2023 2024
10.0%
(600bps)
10.0
16.0
18.5
2022 2023 2024
R
Underlying operating margin (%)
(2)(3)
8.9%
(590bps)
8.9
14.8
8.7
2022 2023 2024
Operating margin (%)
(2)
Operating profit measures how efficiently the business
is being operated and the profitability of the Group’s
core business.
£212.8m
(57.9%)
212.8
505.3
309.0
2022 2023 2024
Operating profit (£m)
£238.1m
(56.2%)
238.1
543.9
653.2
2022 2023 2024
R
Underlying operating profit (£m)
(2)(3)
Strategic Report
10 Bellway p.l.c. Annual Report and Accounts 2024
Key:
R
Link to remuneration – see pages 130 to 152.
The Directors consider net asset value per
ordinary share (‘NAV’) to be a useful proxy
when reviewing whether shareholder value,
on a share by share basis, has increased or
decreased in the period.
Underlying RoCE uses the underlying operating profit
as defined on page 10.
This is another useful indicator of how the Directors
are delivering the strategy of generating shareholder
value, particularly when combined with NAV.
Note thatthe 2024 final dividend figure is proposed.
Return on capital employed (‘RoCE’) is a key indicator
of how we are delivering our strategy of building
shareholder value, which is reliant on land acquisition
and the subsequent performance of our developments.
Earnings per ordinary share (‘EPS’) is a useful measure
of how profitable Bellway is, year on year.
2,913p
+1.5%
2,913
2,871
2,727
2022 2023 2024
Net asset value per ordinary share (p)
(2)
6.2%
(850bps)
6.2
14.7
9.2
2022 2023 2024
Return on capital employed (%)
(2)
6.9%
(890bps)
6.9
15.8
19.4
2022 2023 2024
Underlying return on capital employed (%)
(2)(3)
R
109.8p
(63.1%)
109.8
297.7
196.9
2022 2023 2024
Earnings per ordinary share (p)
R
54.0p
(61.4%)
54.0
140.0140.0
2022 2023 2024
Total dividend per ordinary share (p)
Strategic Report
11Bellway p.l.c. Annual Report and Accounts 2024
Demonstrates how the Group is working towards
reducing our carbon emissions, in line with our pledge
to reduce scope 1 and 2 emissions by 46% in absolute
terms by July 2030.
The Group is committed to reduce scope 3 GHG
emissions by 55% per square metre of completed floor
area by July 2030, against FY19 baseline of 1.53 tonnes.
Principal KPIs continued
The Group has ten headline KPIs mapped to our ‘Better with Bellway’ strategy.
Read more about our ‘Better with Bellway’ sustainability strategy on pages 44 to 59.
This KPI indicates the cumulative fundraising total for
our charity partner Cancer Research UK since 2016,
with the target to raise £4 million by December 2024.
This KPI shows the Group’s commitment to customer
service, with the long-term aim to achieve a 82% score
by December 2026.
This KPI shows the average percentage of employees
that stated they would recommend Bellway as ‘a great
place to work’ in our Employee Engagement Survey
over a three-year period.
‘Better with Bellway’ KPIs
82.0
Target
HBF 9-month survey score
(%)
80.1%
(0.5ppt)
80.1
80.6
82.1
2022 2023 2024
R
Customers and Communities
90
Target
Employees who would
recommend Bellway as
‘a great place to work’
3-year average score (%)
90% (1.0ppt)
90
91
93
2023
2022
2024
Employer of Choice
R
14,261
Target
0.68
Target
Scope 1 and 2 emissions
(tonnes)
14,227 tonnes
(14.1%)
14,227
16,562
18,405
2022 2023 2024
Scope 3 emissions
(tonnes CO
2
e per m
2
)
1.40 tonnes
(7.9%)
1.40
1.52
1.51
2022 2023 2024
Carbon Reduction
R
4.0
Target
CRUK fundraising total (£m)
£3.76m
+£0.62m
3.76
3.14
2.56
2022 2023 2024
Charitable Engagement
Strategic Report
12 Bellway p.l.c. Annual Report and Accounts 2024
Key:
R
Link to remuneration – see pages 130 to 152. Denotes flagship business priority – see pages 39 to 48.
This KPI shows the Group’s commitment to Resource
Efficiency, where we aim to reduce waste per
completed home by 20% to 7.1 tonnes by July 2025.
Percentage of 100 key suppliers who have achieved
Gold membership of the Supply Chain Sustainability
School against a target of 85% by 31 July 2024.
Percentage of sites where planning permission has
been submitted, since 1 July 2023, where a 10%
biodiversity net gain is achieved.
Number of RIDDOR seven-day reportable incidents
per 100,000 site operatives. We aim to reduce
the annual RIDDOR rate to below the three-year
rolling average.
This KPI demonstrates the Group’s commitment
to fire safety against a target of >80% of applicable
employees. During FY24 a new Group fire safety
programme was rolled out to applicable staff.
210.74
Target
80.0
Target
RIDDOR incidents
170.99
incidents
(22.7%)
221.15
170.99
240.08
2022 2023 2024
Applicable employees
trained on Group Fire
Safety Policy (%)
95.0%
+18.0ppt
95.0
77.0
69.0
20232022 2024
Building Quality Homes, Safely
Average 3 year RIDDOR Rate
7.1
Target
Waste per home built
(tonnes)
7.1 tonnes
(17.4%)
8.6
7.1
8.3
2022 2023 2024
Resource Efficiency
R
85
Target
100 key suppliers achieving
Gold membership of the Supply
Chain Sustainability School (%)
89%
+33ppt
89
56
25
2023 2024
2022
Sustainable Supply Chain
Sites with 10% biodiversity net gain (%)
100%
No change
100100
2023 2024
Biodiversity
Strategic Report
13Bellway p.l.c. Annual Report and Accounts 2024
Investment Case
Bellway’s long-term strategy is designed to deliver shareholder value through the cycle.
We have a strong track record of value creation and have generated an annualised
accounting return in NAV and dividend payments of 13.6%
2
over the last decade.
Our strategy is supported by the positive long-term fundamentals of the UK housebuilding industry,
which include healthy underlying customer demand, a structural undersupply of high-quality
housing, and an improving planning outlook.
Bellway’s experienced leadership team focuses on value creation through the delivery of
disciplined growth in volume output, together with improvements in underlying operating margin
and underlying RoCE. Our approach leverages the Group’s operational and financial strength,
while maintaining the flexibility to respond to changes in the trading environment. This is further
supported by ‘Better with Bellway’, our strategy and long-term commitment to acting responsibly
and sustainably (read more on pages 34 to 61).
Enhancing and growing
value for our shareholders
Financial strength
to support long-term
growth
Maintaining Bellway’s financial
strength forms the foundation
of our strategy. Operating with
a robust balance sheet through
the cycle enables the Group to
swiftly respond to attractive land
opportunities to meet our
long-term growth ambitions.
National
presence and
well-established
divisional structure
Bellway has a strong national
presence with 20 trading
divisions across the UK.
This geographically diverse
structure provides the Group
with economies of scale and
has the capacity for significant
organic growth in the
years ahead.
20 trading
divisions
across the UK
Strong track record
of build quality
andcustomer
service
Reflecting our ongoing focus
on build quality and customer
service, we are proud to
have retained our position as
a five-star
5
homebuilder for
the eighth consecutive year,
recording a Recommend a
Friend score of 91.6%.
Strategic Report
14 Bellway p.l.c. Annual Report and Accounts 2024
Wide range of
sustainable homes
forourcustomers
We develop much needed
sustainable new homes
across the country, with our
diverse portfolio ranging from
one-bedroom apartments
to five-bedroom family
homes. We offer a wide
choice of properties for our
customers, primarily from our
Artisan Collection standard
house-type range, which
also supports operational
efficiencies and improved
build quality.
High-quality
land bank
Bellway has a high-quality and
well-located land bank ,which
comprised 95,292
4
plots at 31 July
2024. Our approach to investment
and a rigorous approval process
remains focused on securing land
interests which offer compelling
financial returns, and we are
committed to enhancing the
areas where our new homes
are built.
Total number
ofland bank
plots 95,292
4
Experienced
leadership team
The Group has an
experienced leadership team
with operational strength-in-
depth across the organisation.
Bellway’s Executive
Committee comprises our
Board Executives and senior
leaders from across the Group,
all of whom have extensive
industry experience and a
clear focus on delivering
against our strategic priorities.
Strategic Report
15Bellway p.l.c. Annual Report and Accounts 2024
This section outlines our strategic priorities and through each stage of our business model how we create
value, from carefully selecting the right land and navigating the planning process to safely constructing
and selling high standard attractive homes, and providing an excellent customer experience.
Delivering quality with Bellway
Our Strategy and Business Model
Select the right land and manage
the planning process
Read more on pages 18 and 19.
Our value chain
What we do
• Our experienced divisional and Group land and planning
teams use their local knowledge and contacts to identify land
opportunities. The teams then prepare a viability assessment
and appraisal, which is assessed in detail at divisional,
Regional and then Group level, where the final decision is
taken by the Executive Directors on whether to purchase a
site. The value and nature of the proposed acquisition will
determine whether full Board approval may also be required.
• In line with our strategy, we are highly selective to ensure we
secure land that offers compelling and enhanced financial
returns, while maintaining a strong land bank.
• We often secure land without the benefit of an
implementable detailed planning permission (‘DPP’), typically
an outline planning consent or on a ‘subject to planning’
basis. We use the expertise of our land and planning teams
to obtain DPP, which thereby reduces risks, adds value and
enables higher returns.
• Our land teams assess biodiversity constraints and
opportunities at the earliest stage in site selection, supported
by our Group Head of Biodiversity. This forms part of our
sustainable and responsible business approach.
• Our divisional and Group planning teams work closely
with local authorities and communities to obtain DPP
to construct homes which reflect local planning and
vernacularrequirements. We also progress a combination of
medium-term ‘pipeline’ sites and land from our strategic land
bank through the planning system to ensure a steady supply
of sites.
As set out in the Chair’s Statement on pages 104 to 105,
to achieve our overall strategy we have identified the
following three strategic priorities:
1. Deliver long-term volume growth
How we performed in 2023/24
• Contracted to purchase 4,621 plots of land across 27 sites.
• Forward order book of 5,144 homes with a value of
£1,412.9 million
2
.
• Investment in land concentrated on securing land interests
that promise compelling and enhanced financial returns.
• Ongoing investment in strategic land has boosted our
long-term growth prospects and expanded our overall
land supply with a relatively low initial capital outlay.
Our plans for 2024/25
• Continue to selectively invest in strategic and immediate
land, as it allows us to secure and control land with less
capital investment and provides more flexibility.
• Maintain our current disciplined long term growth strategy,
whilst being mindful of market conditions.
2. Drive a long-term improvement in RoCE
How we performed in 2023/24
• Completed a £100 million share buyback programme.
• Strategic investment in land and work-in-progress, in high
demand areas.
• Net Asset Value (‘NAV’) increased by 1.5% to 2,913p
2
.
• £131.7 million paid out in dividend payments.
Our plans for 2024/25
• Continue to maintain a focus on balance sheet
management, with particular emphasis on large capital
intensive sites.
• Maintain RoCE as a key assessment when buying land,
and continue to monitor and control investment in land
and work-in-progress.
3. Operate responsibly and sustainably
through our ‘Better with Bellway’ strategy
‘Better with Bellway’ encompasses our ethos of operating
in a responsible and sustainable way. The strategy outlines
ambitious targets in respect of our three flagship areas
of Carbon Reduction, Customers and Communities and
becoming an Employer of Choice.
The metrics we use to measure our performance
are on pages 10 to 13.
Strategic priorities
‘Better with Bellway’
Strategic Report
16 Bellway p.l.c. Annual Report and Accounts 2024
These eight business priorities are integral to everything we do and drive the long-term success of our business model.
Design and construct high-quality
homes, safely
Read more on page 20.
Selling homes and delivering an
excellent customer sales experience
Read more on page 21.
What we do
• We construct a wide range of homes, with a focus on our
Artisan Collection of standard house types. Our Artisan
House types vary between two to five-bedrooms, which are
designed to suit a variety of customer budgets and lifestyles.
• There are various designs within the Artisan Collection
that have been developed to adhere to differing Regional
planning requirements. These standard house types drive
efficiencies during construction.
• Our homes are built to a high standard in compliance
with specific building, technical and health and safety
regulations and other regulatory requirements, as well as to
our own high-quality standards.
• The health, safety and wellbeing of our employees,
subcontractors and visitors to our developments remains
our highest priority.
• To reduce health and safety risks and to ensure the
commercial availability and quality of materials and labour,
we strive to maintain long-term working relationships with
reputable subcontractors and supply chain partners.
• To enable us to construct homes to the high standards
expected by our customers, in budget and on time, we
seek to ensure that we have suitable building materials
available at competitive prices.
• We closely monitor work-in-progress to ensure that build
rates are consistent with sales rates to avoid unnecessary
capital inefficiencies.
What we do
• We provide excellent customer service from the moment
our customers decide to look for a new home and
throughout all stages of their journey with Bellway,
including the early years of home ownership.
• Our Customer First initiative continues to drive future
improvements in quality and customer service, and helps
us to support our employees and subcontractors to deliver
to these high standards of customer service.
• We have dedicated customer care teams within each
division, which deliver high levels of customer service and
are supported by our Group Customer Care Director and
Group Customer Care team.
• Our commitment to providing the highest level of service to
our customers, is demonstrated by achieving the HBF five-
star
5
homebuilder status for the eighth consecutive year.
• In addition to the HBF survey, Bellway also engages with
our customers through Trustpilot, where we actively invite
feedback from our customers on all elements of our service.
• Bellway is a member of the New Homes Quality Board
(‘NHQB’), which means customers who reserve a new
home benefit from the protection of the New Homes
Quality Code (‘NHQC’) and the New Homes Ombudsman
Service (‘NHOS’).
‘Better with Bellway’ ‘Better with Bellway’
‘Better with Bellway’
Customers
and Communities
Employer
of Choice
Carbon
Reduction
Building Quality
Homes, Safely
Sustainable
Supply Chain
Resource Efficiency Biodiversity
Charitable
Engagement
Denotes flagship business priority. Read more on pages 39 to 48.
Strategic Report
17Bellway p.l.c. Annual Report and Accounts 2024
Select the right
land and manage
the planning process
Gross margin (%)
(2)
15.2%
(380bps)
15.2
19.0
12.5
2022 2023 2024
Return on capital employed (%)
(2)
6.2%
(850bps)
6.2
14.7
9.2
2022 2023 2024
Sufficient landbank plots with DPP
A
chieved
AchievedAchievedAchieved
2022 2023 2024
R
Underlying gross margin (%)
(2)(3)
16.0%
(420bps)
20.2
16.0
22.3
2022 2023 2024
Underlying return on capital employed
(%)
(2)(3)
6.9%
(890bps)
15.8
6.9
19.4
2022 2023 2024
R
Select the right land
Using their local knowledge and contacts, our experienced
divisional and Group land and planning teams identify land
opportunities that support Bellway’s strategy. A viability
assessment and appraisal is prepared by the respective land
team, which is assessed in detail at divisional, Regional and
then Group level, where the final decision is taken by the
Executive Directors whether to purchase a site. Full Board
approval may also be required depending upon the value
and nature of the proposed acquisition.
Typically, an outline planning consent or a ‘subject to
planning’ basis, we secure the land without the benefit of
a DPP. When obtaining DPP, we use the expertise of our
land and planning teams to minimise risks, add value and
enable higher returns. We strictly control the number of large,
long-term sites to avoid having too much capital tied up or
concentrated in one location. In order to maintain a strong
land bank and enhance financial returns, which are in line
with our strategy, we are highly selective in ensuring we
secure the right land.
Our land bank is comprised of three tiers:
1. Owned or unconditionally contracted land with DPP.
2. Pipeline of land owned or controlled pending DPP,
withdevelopment expected to commence within the
nextthreeyears.
3. Strategic land, which is longer term and typically held
underoption, or through a promotional agreement.
The risks
The inability to source suitable land that meets our financial
and non-financial acquisition criteria, including minimum
gross margin and RoCE hurdle rates. There has been no
change to this risk during the year.
What we do and how we manage risk
Bellway’s solid, asset-backed balance sheet, cash resources
and long-term committed debt financing arrangements have
enabled the Group to continue its front-footed, yet disciplined,
approach to land acquisition. Where sites require planning
consent it may take many months to progress a parcel of land
through the planning process before we can start building
and selling homes.
Alignment with ‘Better with Bellway’
Biodiversity
See pages 57 to 59.
By building one third of our homes on brownfield land, we
are contributing to the regeneration of areas, in mainly urban
locations. Wherever possible, mature trees and woodlands
located within our developments are retained, these trees are
then protected during development. We have Biodiversity Net
Gain (‘BNG’) protocols for site acquisitions and management,
and our land buying teams assess biodiversity constraints and
opportunities at the earliest stage in site selection, supported
by our Head of Biodiversity, and Group Strategic Land team.
How we measure our performance
Acquiring high-quality, sustainable sites in areas of strong
customer demand, that meet or exceed both our financial
and non-financial acquisition criteria is key to the success
of the business. Failure to have an adequate supply of land
would limit our ability to achieve our volume growth targets.
We, therefore, link part of the Executive Directors’ bonuses
to the delivery of a sufficient land bank to meet our growth
aspirations. RoCE is a key indicator of how we are delivering
our strategy of building shareholder value, which is reliant
on land acquisition and the subsequent performance of
our developments. Gross margin enables us to monitor the
robustness of our land purchasing process and the level of
profit on land purchases, and we regularly review the pipeline
to ensure that our land bank remains appropriate.
Our Business Model continued
Strategic Report
18 Bellway p.l.c. Annual Report and Accounts 2024
Number of plots in owned and
controlled land bank with DPP (plots)
30,787 plots
(4.5%)
32,229
30,787
32,344
2022 2023 2024
Number of plots in ‘pipeline’ (plots)
18
,100 plots
(15.4%)
21,400
18,100
28,800
2022 2023 2024
Number of plots in strategic land bank
– positive planning status (plots)
13,200 plots
+46.7%
9,000
13,200
9,400
2022 2023 2024
Number of plots in strategic land bank
– longer-term interests (plots)
32,300 plots
(6.6%)
32,300
34,600
26,200
2022 2023 2024
Number of plots acquired
with DPP (plots)
630 plots
+35.2%
630
466
1,345
2022 2023 2024
Number of plots converted from
medium term ‘pipeline’ (plots)
5,788 plots
(44.1%)
5,788
10,347
11,352
2022 2023 2024
Manage the planning process
Our divisional and Group planning teams work closely
with local authorities and communities to obtain DPP to
construct homes, which reflect local planning and vernacular
requirements. The divisional and Group planning teams
also progress a combination of medium-term ‘pipeline’
sites and land from our strategic land bank through the
planning system.
New legislation came into effect from February 2024, which
requires all new planning applications to have a Biodiversity
Net Gain (‘BNG’) of at least 10%. This requires housebuilders
to leave the biodiversity of land used for development in a
measurably better state compared to the baseline prior to
development. At Bellway, we early adopted this requirement
and, from 1 July 2023, all new planning submissions identified
how they will achieve the 10% BNG target.
The risks
• Delays, increasing complexity and cost in the planning
process. There has been no change in this risk during
the year.
• Delay or failure to obtain planning permission if any
application is not 10% BNG compliant, from February 2024.
This risk is not regarded as a principal risk and so, has not
been included in our principal risk table on pages 83 to 87.
What we do and how we manage risk
Our planning teams build collaborative relationships with
local authorities, communities and interest groups so that our
completed developments benefit the areas in which they are
built and support local needs.
Alignment with ‘Better with Bellway’
Biodiversity
See pages 57 to 59.
From February 2024, new legislation requires 10% Biodiversity
Net Gain on all new planning applications submitted.
We adopted the new legislation early and ensured that all
planning applications submitted from, 1 July 2023 onwards
were 10% BNG compliant.
Customers and Communities
See pages 39 to 40.
We consult with local residents as part of the planning
process to help us build the homes our customers
desire locally.
We make contributions to local communities through Section
106 (England and Wales), Section 75 (Scotland) contributions,
Community Infrastructure Levy payments, and through the
provision of the New Homes Bonus.
How we measure our performance
These KPIs enable us to monitor the number of plots in each
tier of our land bank to ensure they remain sufficient to help
us deliver our strategy of volume growth, and at the end of
the year, we have an appropriate number of plots in each
land bank tier to meet our strategy.
Strategic Report
19Bellway p.l.c. Annual Report and Accounts 2024
Slips, trips and falls (incidents)
87 incidents
(23.0%)
78
113
87
2022 2023 2024
Number of NHBC Pride in the
Job Awards (awards)
45 awards
+32.4%
45
34
36
2022 2023 2024
Number of RIDDOR seven-day
reportable incidents per 100,000
site operatives (incidents)
170.99 incidents
(22.7%)
170.99
221.15
240.08
2022 2023 2024
Design and construct
high-quality homes, safely
Our homes are built to a high standard in compliance with
specific building, technical and health and safety regulations
and other regulatory requirements, as well as to our own quality
standards, with a focus on our Artisan Collection of standard
house types, to suit a variety of customer budgets and lifestyles.
The health, safety and wellbeing of our employees,
subcontractors and visitors to our developments, is our key
priority. We continue to evaluate our working methodologies
to ensure they are robust, compliant, and create a safe
working environment.
We strive to maintain long-term working relationships with
reputable subcontractors and supply chain partners to
reduce health and safety risks and to ensure the commercial
availability and quality of materials and labour. We seek to
ensure that we have suitable building materials available at
competitive prices to enable us to construct homes to the
high standards expected by our customers, within budget and
on time. We closely monitor work-in-progress to ensure that
build rates are consistent with sales rates to avoid unnecessary
capital inefficiencies.
The risks
• Shortage of building materials at competitive prices.
• Shortage of appropriately skilled construction people
and subcontractors.
• Significant health and safety risks inherent in the
construction process.
There has been no change to these risks during the year.
What we do and how we manage risk
The key to enabling us to deliver homes built to the right
standard, at the right time and at the right price, are the
experienced construction people, strong relationships
we have with our skilled subcontractors and consultants,
together with Group purchasing arrangements with suppliers
and manufacturers.
Alignment with ‘Better with Bellway’
Building Quality Homes, Safely
See pages 49 to 52.
The health and safety of everyone who works on and visits
any of our locations is paramount, and we continue to review
our procedures for best practice. We continue to carry out
site inductions to anyone visiting our sites, toolbox talks and
workshops to ensure high health and safety standards across
the Group.
Sustainable Supply Chain
See pages 53 to 54.
We continue to work with our subcontractors, consultants,
and suppliers and manufacturers of materials to maintain our
strong long-term relationships, which generate benefits for
those we do business with and the communities in which
we operate.
Customers and Communities
See pages 39 to 40.
We continue to focus on our Artisan Collection of standard
house types, to ensure a high-quality variety to suit different
customer budgets and needs.
Carbon Reduction
See pages 45 to 48.
We have built several low-carbon exemplar homes on a trial
basis to help better understand upcoming challenges and
industry targets. These are designed to be constructed using
low-carbon methods and reduce end user carbon emissions.
Target: Reduce ‘absolute’ scope 1 and 2 emissions (tonnes CO
2
e)
by46% by July 2030 against FY19 baseline of 14,261.
R
2024: 14,228
Resource Efficiency
See pages 55 to 56.
Reducing waste on-site, in divisional offices and in sales
centres delivers cost savings for the business and reduces
theamount of waste sent to landfill.
Target: Reduce waste per completed home by 20% to 7.1 tonnes
byJuly 2025.
R
2024: 7.1 tonnes
How we measure our performance
Health and safety performance is taken into account as part
of the overall assessment of the Executive Directors’ potential
bonus payment. We continue to improve our reporting
procedures, which are measured via the Reporting of Injuries,
Diseases and Dangerous Occurrences Regulations (‘RIDDOR’)
rate. The Group is committed to continuing to improve health
andsafety standards.
Our Business Model continued
R
2024: 7.1 tonnes
Strategic Report
20 Bellway p.l.c. Annual Report and Accounts 2024
Number of homes sold (homes)
7,654
(30.1%)
7,654
10,945
11,198
2022 2023 2024
Order book value at 31 July (£m)
(2)
£1,412.9m
+18.4%
1,412.9
1,193.5
2,114.3
2022 2023 2024
Total reservation rate (homes per week)
161
+3.2%
161
156
218
2022 2023 2024
NHBC overall score (%)
90.3%
+5.0ppt
90.3
85.3
86.9
2022 2023 2024
NHBC 9-month ‘would you recommend
Bellway to a friend’ satisfaction score (%)
80.1%
(0.5ppt)
80.1
80.6
82.1
2022 2023 2024
Selling homes and
delivering an excellent
customer sales experience
How we measure our performance
We have chosen the following KPIs as they demonstrate
progress made in delivering our strategy of volume growth
alongside customer satisfaction. These include responses to
the question ‘Would You Recommend Bellway to a Friend?’
in the 9-month survey, which is the driver for the five-star
5
homebuilder status, and the overall satisfaction score, which
captures feedback on a range of categories including Quality,
Service After and Standard of Finish.
Bellway were awarded five-star
5
homebuilder status in March
2024 for the period ended 30 September 2023. The final
‘Recommend a Friend’ score was 91.6% against atarget
of 90%.
We provide excellent customer service from the moment our
customers decide to look for a new home and throughout
all stages of their journey, including the early years of home
ownership. Our Customer First programme supports all
Bellway employees and subcontractors to deliver to these
high standards of customer service.
Our achievement of retaining the HBF five-star
5
homebuilder
status for the eighth consecutive year highlights our
commitment to providing the highest level of service to all
our customers. Our dedicated customer care teams within
each division, deliver high levels of customer service with the
support of our Group Customer Care Director and our Group
office team.
Beyond the HBF survey, we also engage with our customers
through Trustpilot inviting customers to feedback on
all aspects of our service. In addition to this, we have a
subcontractor portal to better manage any post-completion
issues reported by our customers.
The risks
• Failure to be responsive to customer requests
and feedback.
• The risk to Bellway’s reputation if customer service
is inadequate.
• These risks are not regarded as principal risks and so have
not been included in our principal risk table on pages 83
to 87.
What we do and how we manage risk
Our well-trained and motivated team members through all
disciplines within the business have the necessary skills and
enthusiasm to deliver the highest levels of customer service.
All employees are required to complete annual training on
NHQB requirements.
Our construction teams are committed to building quality
homes to be proud of.
Alignment with ‘Better with Bellway’
Customers and Communities
See pages 39 to 40.
Customer handover packs contain information on sustainable
travel, local recycling centres and energy efficiency advice.
We continued to develop our school engagement
programme in partnership with The School Outreach
Company with the aim of driving awareness of Bellway and
highlighting the career opportunities available in our industry.
Carbon Reduction
See pages 45 to 48.
We continue to improve energy efficiency by building homes
that are, on average, more energy efficient than is required by
building regulations.
Strategic Report
21Bellway p.l.c. Annual Report and Accounts 2024
Our Marketplace
The housing market backdrop is improving, with customer confidence recovering and supported by a moderation of both
mortgage interest rates and consumer price inflation. High-quality, energy efficient housing remains in short supply across many
parts of the country, and in recent years, this has been exacerbated by changing regulations in the planning system. In this
regard, we welcome the new government’s plans to reform the planning system, which in time is expected to unlock land
supply, and Bellway remains in a strong position to capitalise on future growth opportunities.
Demand factors
The UK economy
The UK economy has shown a modest recovery in calendar year 2024, with GDP growth of 0.7% in the quarter to 31 March
2024, and 0.6% in the quarter to 30 June 2024. This follows an annual increase of only 0.1% in calendar year 2023, which was
the lowest level of economic growth since the Global Financial Crisis in 2009.
The medium-term economic growth outlook is for further gradual improvements, with the Bank of England’s August 2024
projections implying annual GDP growth rising to 1.7% by 2027. This recovery is supported by low levels of unemployment
which, at 4.1% in July 2024, remains low by historical standards. In addition, consumer price inflation is coming under control,
with the Consumer Prices Index (‘CPI’) at 2.2% in the year to August 2024, having fallen from a recent high of 11.1% in October
2022. CPI inflation is now close to the Bank of England’s 2% target and, as a result, its Monetary Policy Committee (‘MPC’) has
begun to lower the base rate, which was reduced from a 15-year high of 5.25% to 5.00% in August 2024.
CPI inflation and growth GDP expectations
2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 2026 Q1 2026 Q2 2026 Q3 2026 Q4 2027 Q1 2027 Q2 2027 Q3
Percentage
CPI inflation Annual GDP growth
3.0
1.0
1.5
2.0
2.5
0.5
0
Source: Office of National Statistics
House prices and mortgage affordability
Figures from the UK Land Registry’s House Price Index in July 2024 showed an annual increase in the average UK house price
of 0.6% to £289,723. Average nominal house prices have remained relatively resilient, however, the effects of high levels of wider
inflation in the economy have led to a reduction in real house prices of around 15% since the recent peak in house prices in
House Price Index (£)
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
Average house price
(£000s)
Average price of property in the United Kingdom
350
150
250
50
0
Source: Office of National Statistics
The Bank of England’s interest rate decisions and financial market expectations on the future path of interest rates both have a
direct impact on mortgage affordability. Overall, mortgage interest rates have reduced through financial year 2024, and together
with ongoing wage rises and limited house price inflation, this has led to an easing of affordability constraints and supported an
improvement in customer demand.
Average mortgage payments as a percentage of take-home pay have reduced from the elevated levels since the summer of
2022, and are currently within the range of historical norms.
Strategic Report
22 Bellway p.l.c. Annual Report and Accounts 2024
Mortgage costs as a proportion of disposable income
Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024
Five year 75% LTV
mortgage rate (%)
Mortgage as a %
of disposable income
Mortgage as a % of disposable income (LHS) Long run average (LHS) Five year 75% LTV mortgage rate (%) (RHS)
50%
40%
45%
35%
30%
25%
6%
4%
5%
3%
2%
1%
Source: Office of National Statistics (‘ONS’) / Nationwide House Price Index
Mortgage costs as a proportion of UK average household disposable income, based on Bellway private ASP in H2 FY24 and indexed to historical Nationwide house price index. Interest rates
from Bank of England monthly average quoted mortgage rates. Household disposable income data from the ONS. All figures in real terms in 2024 prices and adjusted using RPI from the ONS.
To support the improving trading backdrop, there remains good availability of mortgage products, with healthy increases in
product numbers across all loan-to-value categories during the year.
Mortgage products by LTV
Aug-22 Nov-22 Feb-23 May-23 Aug-23 Nov-23 Feb-24 May-24 Aug-24
Number of products
Max 60% LTV Max 75% LTV Max 90% LTV Max 95% LTV
1,200
600
800
1,000
400
200
0
Supply factors
Land supply and planning permissions
Bellway has a high-quality land bank with strength and depth, and our experienced land teams have continued with a
disciplined and targeted approach to land acquisition during the year. The improving economic outlook in terms of both lower
interest rates and house price stability has driven an increase in opportunities and our activity in the land market, notably since
the start of calendar year 2024.
Despite this, the planning system remains fraught with delays, having been impacted by under-resourced planning
departments and the dilution of housing targets by the previous government in late 2023. As a result, planning permissions
granted for housing are currently at a ten-year low.
Number of units granted planning permission in England
2007 2009 2011 2013 2015 2017 2019 2021
2023
Permissions (£000s)
400
200
300
100
0
Source: www.Gov.uk
The new government plans to reform the planning system to support a marked increase in the supply of new homes across
thecountry, and we welcome its plans to reintroduce mandatory housing targets.
Building materials and labour
During the year, build cost inflation continued to moderate with the easing of cost increases driven by the combined effect
oflower levels of construction activity and the fall in energy costs since their peak in the summer of 2022.
The industry-wide decline in construction activity has reduced the demand for building materials, and there are currently good
levels of labour and materials availability across the Group. As a result, there is limited overall material cost inflation on new
tenders, and requests for subcontract price increases remain low for most trades.
Bellway has well-established relationships with its subcontract partners and together with our strong commercial disciplines,
theGroup’s subcontract labour costs continue to be closely managed.
Strategic Report
23Bellway p.l.c. Annual Report and Accounts 2024
Introduction
Bellway has successfully navigated a period of challenging
trading conditions since the summer of 2022, and we
are encouraged that the housing market outlook is now
improving. On behalf of the Board, I would like to thank our
colleagues, subcontractors and supply chain partners who
have shown continued resourcefulness and commitment to
providing high-quality homes and service for our customers.
The hard work and dedication of our teams has been
recognised through several industry accolades, including
‘Large Housebuilder of the Year’ at the 2023 Housebuilder
Awards. I am also delighted that Bellway has been awarded
five-star
5
homebuilder status by the HBF for the eighth
consecutive year.
Strategic priorities
The Group has a clear focus on maintaining financial and
operational strength to enable ongoing value creation for
shareholders through the delivery of our strategic priorities.
Further details of these priorities are set out below:
• Deliver long-term volume growth;
• Drive a long-term improvement in RoCE; and
• Operate responsibly and sustainably through our ‘Better
with Bellway’ strategy.
Long-term volume growth
The Group is encouraged by the improving economic
outlook in terms of both lower interest rates and house
price stability. We also welcome the new Government’s
focus on addressing the ongoing shortfall of housing
and its recognition of the importance of housebuilding to
drive sustained economic growth. Bellway supports the
Government’s plans to reform the planning system to drive
a marked increase in the supply of new homes across
the country.
Given this improving backdrop and the combination of our
strong land bank, healthy forward order book and work-
in-progress position, the Board is confident that the Group
has an excellent platform to build on its proven track record
of organic volume growth in the current financial year
and beyond. Bellway’s balance sheet strength will enable
future investment to further support our plans for multi-year
volume growth.
Bellway has a strong operational structure, currently with 20
trading divisions, which have capacity for material organic
volume growth. The Group also has the potential to scale
up this structure, and given a mature division can typically
deliver annual volume output of around 650 completions
in a stable market, we have scope to significantly increase
overall volume output in the years ahead. The long-term
fundamentals of the UK housebuilding industry remain
positive and Bellway will continue to play an important role in
meeting the growing need for new homes across the country.
Long-term improvement in RoCE
The Group is focused on driving both profitable growth
and a long-term improvement in RoCE, given the positive
compounding effect on shareholder value that this
can create.
While lower profitability in financial year 2024 led to a
reduction in underlying RoCE to 6.9%
2,3
(2023 – 15.8%), we
are pleased that the significant industry headwinds faced
in the last two years, including affordability pressures and
cost inflation, are receding from the previous elevated levels.
Given the improving market backdrop and the strength of our
order book and outlet opening programme, we have a strong
platform from which to begin a recovery in RoCE from the
current financial year.
To help sustain this recovery, and in addition to our ongoing
management of costs, we expect to deliver additional volume
output from our strategic land bank in the years ahead.
Supported by the Government’s plans to reform the planning
system and unlock land supply, our strategic land bank will
underpin our long-term volume growth aspirations and, in
turn, help to improve asset turn and margin.
We are also increasing the use of timber frame construction
across the Group, which can improve build efficiencies and
asset turn, as well as reducing carbon emissions in the supply
chain. As part of this strategy, we are planning to open our
own timber frame production facility, ‘Bellway Home Space’,
to help meet our target of growing timber frame construction
to around 30% of housing output by 2030.
Creating value
for shareholders
The Group is focused on driving both profitable
growth and a long-term improvement in RoCE,
given the positive compounding effect on
shareholder value that this can create.“
John Tutte
Chair
Chair’s Statement
Strategic Report
24 Bellway p.l.c. Annual Report and Accounts 2024
These areas of focus, together with an improvement in
operating margin, can support a recovery in underlying RoCE
and, combined with our ongoing investment in land with
compelling financial returns, the Board remains optimistic
that Bellway is well-placed to deliver a normalised underlying
RoCE of up to 20%
2,3
over the longer-term.
‘Better with Bellway’
‘Better with Bellway’ is the Group’s strategy and long-
term commitment with regards to acting responsibly and
sustainably. The strategy outlines ambitious targets in respect
of our three flagship areas of Carbon Reduction, Customers
and Communities, and becoming an Employer of Choice.
Supported by several research projects underway across
the business, strong headway has been made in laying the
foundations for a lower carbon footprint as we work towards
a significant reduction in the Group’s emissions by 2030.
The Group’s scope 1 and 2 carbon emissions have reduced
by 14.1% compared to the prior year and by 44.7% since our
base year of 2019, and we are in an excellent position to meet
our goal of a 46% reduction by 2030, significantly ahead
of target.
Reflecting our focus on build quality and customer service,
we are proud to have retained our position as a five-star
5
homebuilder for the eighth consecutive year. There has also
been an excellent response to our most recent employee
engagement survey and, despite the ongoing challenges
in the market during the year, 87% of colleagues (2023 –
89%) said they would recommend Bellway as ‘a great place
to work’.
In addition to the flagship priority areas, the ‘Better with
Bellway’ strategy includes targets in respect of biodiversity,
resource efficiency, charitable engagement, sustainability
throughout the supply chain and building quality homes
safely. Through a range of initiatives, we have embedded
‘Better with Bellway’ across the Group’s operations, and
we are proud that the efforts of our colleagues have been
recognised through several industry awards. More details
are set out later in this report and are also available on our
website at www.bellwayplc.co.uk/sustainability
In relation to building safety, our ongoing focus on this serious
matter is reflected by the proactive approach to assessing
and remediating schemes through our dedicated Building
Safety division, and the Group is making every effort to further
accelerate progress in this area.
Since the start of our remediation programme, the Group
has spent £146.3 million on legacy building safety issues.
Notwithstanding the ongoing complexities with regards to
building safety, Bellway is focused on completing works
as promptly and efficiently as possible, and we expect to
continue making strong progress with our programme of
remediation in the current financial year.
Delivering value creation for shareholders
The successful delivery against our strategic priorities will
ensure the Group continues to generate long-term value
for shareholders, and the Board believes this is best gauged
through increasing NAV per share and supplemented by
regular dividends. Over the last decade, Bellway has delivered
a strong annualised accounting return in NAV and dividends
paid of 13.6%
2
.
In the year ended 31 July 2024, NAV per share rose modestly
to 2,913p
2
(2023 – 2,871p), with the effect of lower volume
output and earnings offset by the benefits of our value-driven
approach to capital allocation. This included the positive effect
of the final tranche of the £100 million share buyback, which
completed in October 2023, and £131.7 million of dividend
payments made during the year.
The Board has recommended a final dividend for financial
year 2024 of 38.0p per share (2023 – 95.0p). This brings the
total proposed dividend to 54.0p per share (2023 – 140.0p)
and, if approved, the overall dividend will be covered 2.5
times
2,3
by underlying earnings (2023 – 2.3 times), in line with
the Board’s previously stated policy.
Looking ahead, the strength of our land bank and balance
sheet provides the Group with optionality, and the
reinvestment of capital into compelling land opportunities will
continue to be balanced with future shareholder returns.
Board changes
Simon Scougall has recently joined the Board in the newly
created executive role of Chief Commercial Officer. Simon has
held a number of senior positions within Bellway over the past
13 years, including Group General Counsel and Company
Secretary and joined the Board on 1 August 2024. We look
forward to working with Simon in the years ahead as he
continues to support the Group in the delivery of our strategy.
Cecily Davis joined the Board on 1 May 2024 as an
independent Non-Executive Director. Cecily’s expertise as an
engineering, procurement and construction lawyer combined
with her experience as a Non-Executive Director and strong
commitment to the improvement of ESG in the construction
sector, has further strengthened the Board.
As previously announced and following a successful career
that has spanned over 15 years with Bellway, Keith Adey,
Group Finance Director, is to step down from his role on
1 December 2024. Keith will remain on the Board as an
Executive Director until 21 March 2025. On behalf of the
Board and everyone at Bellway, I want to place on record
our sincere gratitude for Keith’s significant and highly valued
contribution to Bellway’s growth and sustainability strategy,
and for his dedicated service over the years.
Following a thorough recruitment process for Keith’s
successor, and as announced on 11 October 2024, Shane
Doherty will join the Board as our new Chief Financial Officer
on 2 December 2024. Shane brings a wealth of financial and
sector experience to Bellway, having most recently held the
same position at Cairn Homes plc, and we look forward to
welcoming him to the Group.
Future long-term success
Bellway has an experienced leadership team with operational
strength-in-depth across the organisation. Given these
qualities and our robust balance sheet, I am confident that
the Group is well-positioned to capitalise on future growth
opportunities, deliver against our strategic priorities and create
a positive outcome for our stakeholders over the long term.
John Tutte
Chair
14 October 2024
Strategic Report
25Bellway p.l.c. Annual Report and Accounts 2024
Market
Customer confidence gradually improved throughout the
year, driven by a moderation of both mortgage interest rates
and consumer price inflation, and an increase in wages.
Trading patterns were less volatile than the prior financial
year when rapid changes in borrowing rates led to significant
variations in customer demand. We have been encouraged
by the improvement in affordability during the year and the
relative stability in mortgage interest rates since January 2024.
Overall, this led to a reduction in the cancellation rate to a
normalised level of 14% (2023 – 18%).
The private reservation rate was 13.8% higher than the prior
year at an average of 124 per week (2023 – 109), with the
improvement driven by stronger demand and an increase
in outlet numbers. The private reservation rate per outlet
per week increased by 10.9% to 0.51 (2023 – 0.46) including
a small contribution from bulk investor sales of 0.02 (2023 –
0.01). The private reservation rate per outlet per week in the
second half of the financial year increased to 0.58 (six months
to 31 July 2023 – 0.53) compared to 0.43 in the first half (six
months to 31 January 2023 – 0.38), reflecting the improving
trading backdrop and a seasonal uplift through the spring.
The overall reservation rate, including social homes, rose
by 3.2% to 161 per week (2023 – 156). The more modest
rate of increase reflects the planned reduction in social
housing completions, in both financial years 2024 and 2025,
compared to the elevated level achieved in financial year
2023. This is in line with expectations and follows a period
in which the Group accelerated the construction of social
homes as part of a wider programme of cash generation
and maintaining financial resilience when trading conditions
became challenging in late summer 2022.
The Group traded from an average of 245 outlets during the
year (2023 – 238), in line with our expectations, with a closing
position of 250 outlets at 31 July 2024 (2023 – 240). The 2.9%
increase in average outlets was driven by the strength of our
land bank and targeted approach to land acquisition and was
achieved despite the ongoing delays in the planning system.
Bellway’s focus on traditional two-storey family housing
attracts a wide range of customers and, notwithstanding
variations in mortgage rates during the year, demand for our
high-quality new homes was supported by good availability,
in general, of mortgage finance. The availability of mortgage
products and affordability does, however, remain relatively
constrained for those customers requiring higher loan-to-
value mortgages, although we have seen continuing demand
from first-time buyers, which accounted for around 36% of
private reservations (2023 – 34%). We have continued to see
relatively healthy levels of underlying demand from second-
time buyers, which accounted for around 60% of private
reservations (2023 – 64%). Sales to investors have remained
low and represented around 4% of private reservations (2023
– 2%), with the increase partly reflecting the modest rise in
bulk sales during the year.
Overall, headline pricing across our regions has remained
firm, and our sales teams continue to use a range of targeted
incentives to encourage further customer interest and secure
reservations. The use of selling incentives has generally
remained stable during the year, although there has been
more limited use in regions where affordability remains good
in the context of the local market and in areas with healthy
employment levels.
High-quality land bank to support outlet opening
programme and volume growth ambitions
Bellway has a high-quality land bank with strength and depth
to support our growth plans, and our experienced land teams
have continued with a disciplined and targeted approach to
land acquisition during the year. Our approach to investment
and rigorous approval process remains focused on securing
land interests which offer compelling financial returns and
where possible, have flexibility in the contract terms.
There is a well-established Group-wide oversight for land
approval at Bellway which ensures we focus our investment
resource in the areas where investment returns are supported
by strong demand. As part of this process, all sites are
reviewed by our divisional teams, a Regional Chair, and again
Chief Executive’s Market and Operational Review
Strong long-term
fundamentals
with Bellway
Bellway’s divisional structure has significant capacity to deliver
sustainable volume growth... combined with our operational
strength and robust balance sheet, the Group is well-placed to
deliver strong multi-year growth and to continue creating value
for all our stakeholders.”
Jason Honeyman
Group Chief Executive
Strategic Report
26 Bellway p.l.c. Annual Report and Accounts 2024
by the Group’s Head Office land acquisition team, prior to
entering into contract, in order to assess and optimise the
margin. This process also includes a review of layouts, product
offering and biodiversity solutions, to ensure we are offering a
sustainable and attractive product to our customers.
Given the cyclical nature of the housebuilding industry,
maintaining Bellway’s financial strength forms the foundation
of our capital allocation policy, and enables the Group to
swiftly respond to attractive land opportunities when they
arise. Our land bank was enhanced by a period of front-
footed investment prior to financial year 2023 and will
help the Group to achieve its strategic priority of long-term
volume growth.
The table below analyses the Group’s land holdings:
2024
Plots
2023
Plots
DPP: plots with implementable detailed
planning permission 30,787 32,229
Pipeline: plots pending an
implementableDPP 18,100 21,400
Bellway owned and controlled plots
48,887 53,629
Bellway share of land owned and controlled
by joint ventures 905 935
Total owned and controlled plots 49,792 54,564
Strategic land holdings 45,500 43,600
Total land bank
4
95,292 98,164
Reflecting ongoing planning delays, volume output and
the reduced level of land buying during the year, Bellway’s
owned and controlled land bank has decreased, yet remains
healthy at 48,887 plots (2023 – 53,629 plots). This represents a
land bank length of 6.4 years (2023 – 4.9 years) when based
on the last 12 months’ legal completions.
Within our land bank we have 30,787 plots (2023 – 32,229
plots) with an implementable detailed planning permission
(‘DPP’) and our pipeline land bank comprises 18,100 plots
(2023 – 21,400 plots). The reduction in the number of pipeline
plots reflects our lower land buying activity and several
pipeline sites receiving an implementable DPP in the year.
As noted earlier, the Group operated from an average of
245 outlets in the year (2023 – 238) with 250 active outlets
at 31 July 2024 (2023 – 240). We have good visibility on the
expected timing of near-term planning decisions, and we
currently expect to open around 50 new outlets in financial
year 2025 (2024 – 80). The Group is well-positioned to
maintain the average number of outlets at around 245 during
the year to 31 July 2025, with the outcome also dependent on
sales rates and therefore the number of outlets closing during
the year.
The improving economic outlook in terms of both lower
interest rates and house price stability has supported an
increase in our activity in the shorter-term land market,
notably since the start of calendar year 2024. Overall, during
financial year 2024, the Group has contracted to purchase
4,621 owned and controlled plots (2023 – 4,715 plots)
across 27 sites (2023 – 35 sites) with a total contract value of
£344.8 million (2023 – £378.2 million). We have also continued
to rebuild our future pipeline of potential acquisitions,
with Heads of Terms agreed on around 8,100 plots at
29 September 2024.
The planning system has remained fraught with delays.
The Competition and Markets Authority (‘CMA’) published the
results of its wide-ranging market study into the housebuilding
sector in England, Scotland and Wales in February 2024,
concluding that the UK’s complex and unpredictable
planning system was primarily responsible for the persistent
under delivery of new homes. The report highlighted that
local authority planning departments are typically under
resourced, and several do not have up to date local plans,
clear targets or strong incentives to deliver the number of
homes needed in their areas. This has been exacerbated by
the dilution of housing targets by the previous Government
in late 2023 and, as a result, planning permissions granted for
housing are currently at a 10-year low.
Against this backdrop, we welcome the new Government’s
clear plan to reform the planning system and its longer-term
approach to increase the supply of new housing, which
includes the reintroduction of mandatory housing targets.
While the Government’s reforms will take some time to ease
planning delays and unlock land supply, our land teams are
focused on progressing an increasing number of planning
applications from our high-quality land bank. Overall, we
remain well-placed to deliver further increases in outlet
numbers by the end of financial year 2026 and beyond to
support our volume growth ambitions.
Our Springwood development in Woodville, Derbyshire.
Strategic Report
27Bellway p.l.c. Annual Report and Accounts 2024
Strategic land investment to further support
ourlong-term growth ambitions
Bellway’s investment in strategic land has continued during
the year, which has enhanced our overall land supply for a
relatively low initial capital outlay. The Group’s longer-term
land opportunities are primarily sourced through option
agreements by the Group’s dedicated strategic land function,
with commercial terms that will reflect future market values
and conditions, while also allowing for prevailing planning
policy requirements at the time of acquisition. Strategic land
can also generate margin enhancement, in some instances,
due to option agreements prescribing that land values will
typically be agreed at a discount to open market cost, once
planning permission has been obtained.
The Group entered into option agreements for 35 sites (2023
– 19 sites) in the year, building upon our increased activity in
the strategic land market in recent years. As at 31 July 2024 the
strategic land holdings comprised 45,500 plots (2023 – 43,600
plots) and has grown by 77.7% in the last five years (31 July
2019 – 25,600 plots).
The Group’s experienced strategic land team is focused
on promoting and delivering sustainable sites through
the planning system, and is adept at navigating emerging
planning policies and other legislative changes. Given our
increased focus on strategic land and the proposed positive
planning changes under the new Government, we expect
to deliver a growing proportion of volume output from our
strategically sourced land bank over the medium term.
Overall, the Group’s ongoing investment in strategic
land continues to provide balance sheet efficiency and
financial flexibility through the use of option and promotion
agreements, while also supporting our longer-term growth
prospects, with plots usually expected to obtain planning
permission over a period of five years or more.
Production and cost control
Build cost inflation has continued to moderate with the easing
of cost increases driven by the combined effect of lower levels
of construction activity and the fall in energy costs since their
peak in late 2022.
The industry-wide decline in construction activity has
reduced the demand for building materials, and there is
currently limited overall material cost inflation on new tenders.
There are presently good levels of product availability
across the Group and our experienced procurement teams
continue to work closely with our wide range of supply chain
partners on demand planning, to ensure we are prepared
for our targeted increase in volume output from the current
financial year.
Bellway has well-established relationships with its subcontract
partners and together with our strong commercial disciplines,
the Group’s subcontract labour costs continue to be closely
managed. As construction output has declined across the
country, requests for subcontract price increases remain low
for most trades. The Group’s outlet opening programme has
provided good visibility on pipeline work for subcontractors
and remains beneficial when negotiating new labour
contracts and pricing, with minimum fixed price periods of
12 months secured for most trades.
Our subcontractors are also becoming increasingly familiar
with our Artisan Collection house-types, which continue to
drive a range of other benefits across the Group, including
improved site layouts. The proportion of Artisan homes within
Group housing completions rose to 57% of total output in
financial year 2024 (2023 – 45%), and we expect further
growth in the current year.
To improve productivity and response times on site, we
have also introduced a new site-based quality management
and compliance system across the Group. The system, Field
View, is a mobile application which significantly reduces the
need for office-based administrative work, thereby allowing
construction teams to spend more of their time to drive
on-site quality improvements. Digitalised forms and quality
inspections, including those for key construction stages,
health and safety, and fire stopping, can be completed on
mobile tablets, while inspecting plots. Field View is also being
used to monitor all key build stages to drive further efficiencies
in the management of construction programmes.
Bellway has robust cost controls and an ongoing focus on
margin protection. During the year, and as a part of our
programme of continuous improvement, we have completed
training sessions for all commercial colleagues at our Bellway
Academy to promote and reinforce our strong commercial
culture, while maintaining the high quality of our homes.
We have also completed a series of build cost review
meetings to enable inter-divisional benchmarking across
live developments and Artisan house-types. These meetings
are scheduled to continue on a regular basis in order to
share best practice and help drive the business towards
improved consistency.
Looking ahead, as the industry works towards building
to the requirements of the Future Homes Standard, our
Artisan Collection standard house-types and centralised
approach to design, procurement and site layout reviews will
continue to help the Group maintain efficiency and mitigate
cost pressures.
‘Bellway Home Space’ – expanding the use of
timber frame construction across the Group
As part of our long-term growth strategy, we are increasing
the use of sustainably sourced timber frame construction
across the Group. Timber frame construction offers a proven
range of operational, financial and environmental benefits,
and we have been expanding its use, on a trial basis, in
several Bellway divisions in recent years, in addition to its
long-established use in our two Scottish divisions.
As a modern method of construction (‘MMC’), the use of
timber frame in housebuilding is of growing importance in the
UK, and the Government is supporting the increased use of
MMC as part of its plans to increase the supply of high-quality,
sustainable new housing.
We expect to generate a range of benefits from the use
of timber frame in the years ahead and this has been
corroborated from our onsite trials. These include faster build
speed, reduced waste and improved construction quality,
as off-site manufacturing can drive higher levels of quality
control and consistency compared to traditional construction
methods. In turn, these build efficiencies should support
improvements in the Group’s asset turn, together with
strengthening customer care scores.
Chief Executive’s Market and Operational Review continued
Strategic Report
28 Bellway p.l.c. Annual Report and Accounts 2024
Compared to other mainstream building materials, timber
requires minimal processing and has very low relative levels
of embodied carbon.
To support our volume growth ambitions and carbon
reduction goals, Bellway is targeting an increase in timber
frame use to around 30% of housing output by 2030 (2024
– 12%). The planned growth in timber frame output will
be achieved primarily by investing in our own proprietary
timber frame manufacturing facility, ‘Bellway Home Space’.
In addition, we will continue to work with the UK’s leading
timber frame manufacturers for the supply and installation of
timber frame homes to Bellway sites across the Group.
The Group has recently taken possession of a 134,000 square
foot industrial unit for ‘Bellway Home Space’ under a long-
term lease agreement. The facility, chosen for its transport
links, is located within a strong logistics network near
Mansfield, Nottinghamshire, and the Group has appointed
an experienced Managing Director to run its timber frame
operations. In order to drive efficiencies and quality, the facility
will operate using computer driven robotic machinery which
will be supplied by a leading, well-established manufacturer.
‘Bellway Home Space’ will have the capability to manufacture
open panel systems, together with pre-insulated closed-panel
systems, where both insulation and the inner sheath are
assembled within the factory environment, further improving
thermal efficiency and reducing on-site waste. We currently
expect to produce our first homes from the facility in mid-
2026, with a gradual increase to full capacity of up to 3,000
homes per annum by 2030. All management, manufacturing
and materials control will be undertaken by Bellway, ensuring
the Group benefits from its overall investment in the factory
and machinery, while also providing the opportunity to
innovate product and control costs.
The full benefits of timber frame construction will require
some operational changes to the business, including the
redesign of our Artisan house types to accommodate the
requirements of timber frame and the Future Homes Standard.
We expect this process to complete by the end of calendar
year 2025.
Overall, we are confident that our investment in timber
frame in the years ahead will underpin the delivery of our
strategic priorities, to drive long-term volume growth and an
improvement in RoCE, and help meet the targets set out in
our ‘Better with Bellway’ sustainability strategy.
Recent trading and improving outlook
The combination of the improvement in trading and growth
in outlet numbers led to a strong increase in the forward
order book in financial year 2024. This comprised 5,144 homes
(2023 – 4,411 homes) and increased in value by 18.4% to
£1,412.9 million
2
(2023 – £1,193.5 million) at 31 July 2024.
Since the start of the new financial year, customer demand
has remained robust and has been supported by an overall
reduction in mortgage rates over the summer.
In the nine weeks since 1 August and against a weak
comparative, the private reservation rate increased by 48.5%
to 147 per week (1 August to 1 October 2023 – 99), representing
a private reservation rate per outlet per week of 0.59 (1 August
to 1 October 2023 – 0.41). The private reservation rate includes
bulk investor sales, on attractive financial terms, totalling 232
homes (1 August to 1 October 2023 – 71 homes). The bulk sales
represented a contribution of 0.10 to the private reservation
rate (1 August to 1 October 2023 – 0.03).
Reflecting recent trading and volume output, the forward
order book at 29 September 2024 remained at a healthy
level, comprised 5,109 homes (1 October 2023 – 4,636
homes) and had a value of £1,427.9 million
2
(1 October 2023 –
£1,232.3 million).
Outlook
The strength of the Group’s forward order book, outlet
opening programme and work-in-progress position provides
Bellway with an excellent platform to deliver a material
increase in volume output in financial year 2025.
If market conditions remain stable, the Group is targeting to
deliver completions of at least 8,500 homes in the current
financial year (2024 – 7,654 homes). As was the case in
financial year 2024, volume output is expected to be weighted
to the first half (half year ended 31 January 2024 – 53.5%),
with this completion profile supporting cash generation and
ongoing land investment. We are also aiming to retain a
healthy forward order book at the end of the current financial
year (2024 – 5,144 homes) to serve as a platform for further
growth in volume output in financial year 2026.
Over the long term, Bellway’s divisional structure has
significant capacity to deliver sustainable volume growth.
Given the depth and quality of our land bank and the
Government’s plans to support the increase of new housing
supply, we also have scope to scale up the Group’s divisional
structure to fully capitalise on future growth opportunities.
Combined with our operational strength and robust balance
sheet, the Group is very well-placed to deliver strong
multi-year growth and to continue creating value for all
our stakeholders.
Jason Honeyman
Group Chief Executive
14 October 2024
A street scene at our Heron’s Mead development near Newport.
Strategic Report
29Bellway p.l.c. Annual Report and Accounts 2024
Group Finance Director’s Review
Focussed on long-
term value creation
Given the Group’s financial strength and high-quality land bank,
the Board is confident that Bellway is in an excellent position to
capitalise on future growth opportunities and to continue
creating value for our shareholders over the long term.”
Keith Adey
Group Finance Director
Earnings per ordinary share (p)
109.8p
(63.1%)
109.8
297.7
196.9
2022 2023 2024
Group revenue (£m)
£2,380.2m
(30.1%)
2,380.2
3,406.6
3,536.8
2022 2023 2024
Operating margin (%)
(2)
8.9%
(590bps)
8.9
14.8
8.7
2022 2023 2024
Operating profit (£m)
£212.8m
(57.9%)
212.8
505.3
309.0
2022 2023 2024
Profit before taxation (£m)
£183.7m
(62.0%)
183.7
483.0
304.2
2022 2023 2024
Total dividend per ordinary share (p)
54.0p
(61.4%)
54.0
140.0140.0
2022 2023 2024
Underlying earnings per
ordinary share (p)
(2)(3)
135.2p
(58.8%)
135.2
328.1
420.8
2022 2023 2024
R
Underlying operating margin (%)
(2)(3)
10.0%
(600bps)
10.0
16.0
18.5
2022 2023 2024
Underlying operating profit (£m)
(2)(3)
£238.1m
(56.2%)
238.1
543.9
653.2
R
2022 2023 2024
Underlying profit before taxation (£m)
(2)(3)
£226.1m
(5
7.5%)
226.1
532.6
650.4
2022 2023 2024
Strategic Report
30 Bellway p.l.c. Annual Report and Accounts 2024
Trading performance
The Group has delivered housing revenue of £2,356.7 million
(2023 – £3,396.3 million), a reduction of 30.6%, which was
in line with our expectations and driven by the decrease
in volume output. Other revenue was £23.5 million (2023 –
£10.3 million) and comprises ancillary items such as land and
commercial sales, and management fee income earned on
our joint venture schemes. Total revenue was 30.1% lower at
£2,380.2 million (2023 – £3,406.6 million).
The table below shows the number and average selling
price (‘ASP’) of homes completed in the year, analysed
between private and social homes, and against the prior
year comparative:
2024 2024 2023 2023 Variance (%)
Homes
ASP
(£000) Homes
ASP
(£000) Homes ASP
Private 5,758 347.7 8,166 359.0 (29.5%) (3.1%)
Social 1,896 186.9 2,779 167.3 (31.8%) (11.7%)
Total 7,654 307.9 10,945 310.3 (30.1%) (0.8%)
Total housing completions reduced by 30.1% to 7,654 homes
(2023 – 10,945 homes), with the decline reflecting the lower
order book at 31 July 2023 and the generally softer trading
conditions in the first half of the financial year. Overall private
output reduced by 29.5% to 5,758 homes (2023 – 8,166
homes), with a 31.8% decline in social housing output to 1,896
homes (2023 – 2,779 homes). This resulted in the proportion
of social completions decreasing slightly to 24.8% of the total
(2023 – 25.4%). We have good visibility on our near-term
build programmes, and we expect a similar number of social
housing completions in the current financial year.
The overall average selling price was £307,909 (2023 –
£310,306), and this modest change was driven by the increase
in the level of sales incentives, together with geographic and
mix changes. Overall, headline pricing has remained firm
across our regions, and we currently expect the average
selling price in financial year 2025 to be around £310,000.
Underlying operating performance
The Group’s commercial disciplines and proactive
management of site-based overheads helped to alleviate
some of the margin pressures faced during the year.
Notwithstanding this, there has been a decrease in site
profitability, in line with expectations, arising from cost
inflationand the use of sales incentives, together with
higher site-based overheads due to the generally slower
sales market since the summer of 2022. This led to a 420
basis pointreduction in the underlying gross margin to
16.0%
2,3
(2023 – 20.2%) and as a result, underlying gross profit
decreased by 44.6% to £381.1 million
2,3
(2023 – £687.3 million).
Other operating income and expenses, which net to
a modest expense of £1.2 million (2023 – £1.2 million),
relatetothe running of our part-exchange programme.
Part-exchange activity remained low and was used for
only2.8% of completions (2023 – 1.7%), with a balance
sheetinvestment as at 31 July 2024 of only £14.5 million
(2023 – £18.0 million). The Group has strong controls around
the use of part-exchange as a selling tool, and we have the
financial capacity to increase its use, in a disciplined manner,
ifmarket conditions require it.
The underlying administrative expense decreased slightly
to £141.8 million
2,3
(2023 – £142.2 million), with strong cost
control and the lower headcount resulting from our
workforceplanning exercise in calendar year 2023 helping
to offset underlying cost inflation. As a proportion of
revenue,underlying administrative expenses rose to 6.0%
2,3
(2023 – 4.2%), with this due to the reduction in volume output
in the year.
In financial year 2025, while we are maintaining a clear focus
on costs, we expect administrative expenses to rise by up
to 10%. This follows two years of broadly flat overheads and
reflects the requirement to continue offering competitive
reward packages to attract and retain talent in order to
support our growth plans. It also includes the initial, pre-
operational costs of our new proprietary timber frame
manufacturing operations.
The underlying operating margin was 10.0%
2,3
(2023 – 16.0%),
with the decrease driven by the lower underlying gross
margin and the operational gearing effect of the decline
in volume output. Overall, underlying cost pressures are
beginning to ease, although residual cost inflation incurred in
earlier periods will be realised through the income statement
for legal completions in the months ahead. In financial
year 2025, we expect the underlying operating margin to
approach 11.0%
2,3
.
We will continue with our disciplined approach to land
investment and cost management through the cycle and,
together with the support of stable conditions in the housing
market, the Board is confident that an underlying operating
margin in the mid to high-teens
2,3
is sustainable over the
longer term.
Adjusting item: Net legacy building safetyexpense
Bellway continues to act responsibly with regards to building
and resident safety, and this is reflected by the significant
resource and funding the Group has committed to remediate
its legacy apartments.
In March 2023 the Group signed the Self-Remediation Terms
(‘SRT’) with the Government, and we have also signed
up to the Welsh Government Building Safety Developer
Remediation Pact (the ‘Pact’) and the Scottish Safer Buildings
Accord, reinforcing our responsible UK-wide approach to
legacy building safety.
Strategic Report
31Bellway p.l.c. Annual Report and Accounts 2024
Group Finance Director’s Review continued
In total, for the year ended 31 July 2024, a net £37.0 million
(2023 – £49.6 million) has been recognised in relation to
legacy building safety. The following table shows the primary
components of the net adjusting expense relating to legacy
building safety, split by half year:
H1 2024
£m
H2 2024
£m
FY 2024
£m
FY 2023
£m
SRT and associated review –
cost of sales expense/(credit) 8.0 (1.9) 6.1 58.1
SRT and associated review –
cost of sales recoveries – (0.3) (0.3) (50.0)
Structural defects – cost of
sales expense/(credit) (0.6) 14.7 14.1 30.5
Net cost of sales expense 7.4 12.5 19.9 38.6
SRT and associated review –
finance expense 8.8 7.1 15.9 11.0
Structural defects –
financeexpense 0.6 0.6 1.2 –
Total net legacy building
safety expense 16.8 20.2 37.0 49.6
The total adjusting expense includes a net adjusting
expense of £19.9 million through cost of sales, of which a net
£5.8 million relates to the refinement of overall cost estimates
in relation to the SRT and associated review, and a modest
level of recoveries. It also comprises an additional £14.1 million
for the structural defects provision in relation to an isolated
design issue identified with the reinforced concrete frame
of an apartment scheme in Greenwich, London in financial
year 2023.
The additional provision in relation to the Greenwich
apartment scheme reflects increases in the estimated costs
due to changes in the approach to remediation, following
the completion of more intensive modelling work. Bellway is
actively pursuing recoveries from the entities involved in the
development of the Greenwich apartment scheme, primarily
through their insurers, however, given the complexity of this
process, these have not yet been recognised as an asset.
The Group has undertaken a review of other buildings
constructed by, or on behalf of Bellway, where the same
third parties responsible for the design of the frame in the
Greenwich development have been involved, and no other
similar design issues with reinforced concrete frames have
been identified.
The Group’s legacy building safety provision has been
calculated based on our extensive experience to date,
using analysis of previously tendered works and prudent,
professional estimates based on our knowledge of known
issues. For buildings where full investigations have not yet
been undertaken or cost reports obtained, an allowance
has been made for as yet undiscovered problems, based on
experience to date from similar developments. Costs have
been provided regardless of whether Bellway still retains
ownership of the freehold interest in the building or whether
warranty providers have a responsibility to carry out
remedial works.
As part of the industry’s commitments under the SRT,
developers are required to submit quarterly data returns to
the Ministry of Housing, Communities and Local Government
(‘MHCLG’). These detail the progress on building assessments
and remediation works, although in some instances,
thereporting obligations can be subject to interpretation.
Notwithstanding this, Bellway has adopted a consistent and
prudent approach, only reporting assessments to have been
undertaken when they are supported by a report from an
independent qualified fire engineer.
The total amount Bellway has set aside for legacy buildings
in England, Scotland and Wales since 2017 is £655.5 million.
Demonstrating our ongoing commitment to deliver
appropriate solutions for legacy buildings, the Group has
spent £146.3 million since the start of the remediation
programme, including £36.3 million during financial year 2024
(2023 – £32.9 million). The remaining provision at 31 July 2024
was £509.2 million.
The Group’s established and dedicated Building Safety
division is making every effort to accelerate progress with
assessment and remediation. As at 30 September 2024,
and including those buildings that have been awarded
an application by the Building Safety Fund or ACM Funds,
Bellway had a total of 137 buildings where work is complete
or underway.
Our experienced site remediation teams are focused on
completing works as promptly and efficiently as possible
and, despite ongoing industry-wide delays in relation to
obtaining building access licences, we expect to make further
strong progress with assessment and remediation in the
current financial year and beyond. Overall, Bellway has the
operational and financial resources to meet its commitments
for legacy building safety.
The adjusting finance expense in financial year 2024 of
£17.1 million (2023 – £11.0 million) related to the unwinding of
the discount on both the SRT and associated review provision
and the structural defects provision. This is a technical interest
unwind, based on prevailing gilt rates at 31 July 2023 and
31 January 2024.
We currently anticipate a total adjusting legacy building safety
finance expense, in relation to both the SRT and associated
review provision and structural defects provision, of around
£8 million in the first half of financial year 2025. The expense
in the second half of the year will, in part, be dependent upon
the movement in gilt rates.
Adjusting item: Aborted transaction costs
During the year, the Group recognised costs of
£5.4 million in relation to the aborted Crest Nicholson
Holdings plc transaction, as an adjusting item through
administrative expenses.
Operating profit
After taking the cost of sales and administrative expenses
adjusting items into consideration, total operating profit
decreased by 57.9% to £212.8 million (2023 – £505.3 million).
Underlying net finance expense
The underlying net interest expense was £9.7 million
2,3
(2023
– £9.9 million). This includes notional interest on land acquired
on deferred terms of £11.1 million (2023 – £13.1 million), with the
decrease reflecting the reduction in land creditors.
Strategic Report
32 Bellway p.l.c. Annual Report and Accounts 2024
The expense also comprises interest on the Group’s fully
drawn fixed rate US Private Placement (‘USPP’) loan notes of
£3.4 million (2023 – £3.4 million) and net bank interest income
of £nil (2023 – £4.4 million). Net bank interest income includes
net interest receivable on cash balances, less loan interest,
commitment fees and refinancing costs, and the reduction
largely reflects the lower cash balances and higher borrowing
in the period. Other net interest receivable was £4.8 million
(2023 – £2.2 million) and primarily comprised £4.5 million
(2023 – £2.2 million) in relation to interest received on loans
tojoint ventures.
Based on prevailing interest rates, the net underlying interest
expense in financial year 2025 is currently expected to be
around £16 million
2,3
, with the anticipated increase to be
primarily driven by higher interest rates on the Group’s land
creditor balance.
Profit before taxation
Including our share of loss from joint ventures of £2.3 million
(2023 – £1.4 million), which reflects upfront financing costs
on a long-term scheme, underlying profit before taxation
reduced by 57.5% to £226.1 million
2,3
(2023 – £532.6 million).
Reported profit before taxation decreased by 62.0% to
£183.7 million (2023 – £483.0 million).
Taxation
The income tax expense was £53.2 million (2023 –
£118.0 million), reflecting an effective tax rate of 29.0% (2023
– 24.4%). The increase in the tax rate in the period was driven
by the full year effect of the six percentage points rise in the
standard rate of UK corporation tax in April 2023.
The effective tax rate also includes the Residential Property
Developer Tax (‘RPDT’), which was introduced in April 2022
and charged at a rate of 4% of relevant taxable profits.
Profit for the year
The underlying profit for the year was lower by 60.1%,
at£160.6 million
2,3
(2023 – £402.2 million) and underlying
earnings per share was 135.2p
2,3
(2023 – 328.1p).
After considering the adjusting items, reported profit
for the year reduced by 64.2% to £130.5 million (2023
– £365.0 million). Basic earnings per share was 109.8p
(2023–297.7p).
Strong balance sheet and financial position
Bellway’s well-capitalised balance sheet principally comprises
amounts invested in land and work-in-progress. Within total
inventories of £4,714.8 million (2023 – £4,575.6 million),
the carrying value of land was £2,431.4 million (2023 –
£2,578.8 million) and work-in-progress increased by 14.1% to
£2,123.9 million (2023 – £1,861.6 million). The higher work-in-
progress balance has arisen, as expected, because of the
slower sales market, but it also reflects our investment in
site infrastructure and early-stage foundation work, for our
ongoing strong programme of outlet openings.
Notwithstanding the lower profit in the year, we have
maintained financial resilience, and net debt at 31 July
2024 was low and in line with expectations at £10.5 million
2
(2023 – net cash of £232.0 million). Average net debt was
£45.8 million
2
(2023 – average net cash of £192.0 million).
Expenditure on land, including payment of land creditors,
was £465 million (2023 – £467 million), primarily comprising
cash payments on contracts approved in previous financial
years. Committed land obligations have reduced significantly
to £225.3 million (2023 – £368.8 million) and adjusted gearing,
inclusive of land creditors, remains low at 6.8%
2
(2023 – 4.0%).
In relation to its legacy, defined benefit pension scheme,
the Group had a retirement benefit asset of £0.9 million
(2023 – £2.5 million) at 31 July 2024, reflecting an ongoing
commitment to fund this future, long-term obligation.
To support our growth plans and ongoing investment in
land, the Group has access to significant levels of committed,
medium and long-term debt finance, totalling £530 million.
This comprises bank facilities of £400 million and £130 million
of fully drawn sterling USPP loan notes, which have maturity
dates that extend in tranches to February 2031. We remain
focused on preserving Bellway’s balance sheet resilience and
we expect to end the current financial year maintaining a low
level of adjusted gearing
2
.
Long-term value creation
The Group’s net asset value at 31 July 2024 was broadly in line
with the prior year at £3,465.4 million (2023 – £3,461.6 million),
as lower profitability was offset by cash dividend payments
of £131.7 million (2023 – £171.7 million). The positive effect of
the final tranche of the £100 million share buyback, which
completed in October 2023, led to a modest increase in NAV
per share to 2,913p
2
(2023 – 2,871p).
Underlying post-tax return on equity was 4.7%
2,3
(2023 – 11.7%)
and underlying RoCE was 6.9%
2,3
(2023 – 15.8%), or 6.4%
2,3
(2023 – 14.3%) when including land creditors as part of the
capital base. The reduction in these return metrics was driven
by the lower asset turn and underlying operating margin.
In the current financial year, we expect to deliver a strong
increase in volume output and, as a result, improvements
inboth asset turn and margin will start a recovery in returns.
Over the last decade, and notwithstanding periods of
significant challenge for our industry, Bellway has delivered
a strong annualised accounting return in NAV and dividends
paid of 13.6%
2
. Given the Group’s financial strength and high-
quality land bank, the Board is confident that Bellway is in an
excellent position to capitalise on future growth opportunities
and to continue creating value for our shareholders over the
long term.
Keith Adey
Group Finance Director
14 October 2024
Strategic Report
33Bellway p.l.c. Annual Report and Accounts 2024
Customers and
Communities
Read about how we are
engaging in our communities
on pages 39 to 40.
‘Better with Bellway’ vision
Mapping key sustainability
topicswithbusiness priorities
Business priorities
Customer First Diversity and
Inclusion
Upskilling
Workforce
Building Safely
People Planet
Our flagship business priorities
A responsible and sustainable
approach with Bellway
For over 75 years, Bellway has been constructing high-quality new homes across the UK, creating
exceptional properties and communities in sought-after locations. We are committed to operating
responsibly and sustainably, while acknowledging the increasing importance of understanding
our business’ impact.
‘Better with Bellway’ Overview
Customers
and
Communities
Putting customers
and communities
at the heart of
everything we do.
Building
Quality
Homes, Safely
Quality and safety
first for everyone.
Employer
of Choice
Creating an
environment that
our colleagues
can thrive in.
Strategic Report
34 Bellway p.l.c. Annual Report and Accounts 2024
Employer of Choice
Read about our commitment to
being a diverse and inclusive
employer on pages 42 to 43.
Carbon Reduction
Read about the work we are
doing to deliver lower carbon
and energy efficient homes on
pages 45 to 48.
People Planet
Responsible
Sourcing
Carbon Footprint
Modern Slavery Charitable Giving Low Carbon
Homes
Resource
Efficiency
Biodiversity
Sustainability is at the heart of our business, it is integrated
in our day-to-day operations across the UK and long-term
business strategy. As an organisation we understand our
environmental impact.
Our ‘Better with Bellway’ strategy, which was launched
over two years ago, reflects our dedication to responsible
and sustainable business practice, with our eight strategic
business priorities designed to ensure Bellway’s success now
and in the future by embedding our commitment into our
operational strategy, as we work to reduce our impact as
a business.
Our sustainable approach is a key part of our business
strategy, ‘putting people and the planet first’. Putting people
first means building quality homes, safely, and a commitment
to safety and sustainability within the supply chain, working
closely with our partners to achieve this.
Fundraising for charities and encouraging our employees
to volunteer puts people and community at the heart of
our business.
Putting the planet first means delivering on our commitment
to build low carbon homes, reducing our own carbon
footprint and considering our customers’ carbon footprint.
We rethink and reduce our use of resources to avoid waste,
minimise energy and water usage whilst also sourcing
materials responsibly. It also means taking a positive view
of biodiversity so that our developments can leave a
lasting legacy.
Sustainable
Supply Chain
Driving
sustainability
through long-
term partnerships.
Charitable
Engagement
Giving, to build
better lives.
Resource
Efficiency
Reducing waste
by building better.
Biodiversity
Restoring and
protecting nature.
Carbon
Reduction
Delivering low
carbon homes.
Strategic Report
35Bellway p.l.c. Annual Report and Accounts 2024
New Group Head
ofSustainability
Simon Park joined Bellway in November 2023 as Group
Head of Sustainability to drive the ‘Better with Bellway’
strategy. Simon is a Chartered Environmentalist with ten years’
experience working in Corporate Sustainability, and delivering
sustainability strategies in housebuilding and construction,
having previously worked at Esh Group, Gentoo Green and
Durham University.
Simon Park, Group Head of Sustainability.
‘Better with Bellway’ Overview continued
Sustainability strategy
‘Better with Bellway’ is our comprehensive sustainability
strategy, with the vision of putting people and the planet first.
The strategy is integrated within our day-to-day operations
and aligned with our commercial strategy.
Our strategy was developed following a review of corporate
responsibility in 2021. This review involved a comprehensive
materiality assessment, which highlighted the key
sustainability risks from a stakeholder and management
perspective. The outputs from the materiality assessment
helped to inform the development of ‘Better with Bellway’
andthe eight business priorities that make up the strategy.
Of the eight business priority areas (see pages 39 to 61), we
identified three as flagship – Customers and Communities;
Employer of Choice; and Carbon Reduction. These are
the areas Bellway can make the most beneficial impact
forour stakeholders.
Each ‘Better with Bellway’ business priority includes headline
KPIs and targets, with actions allocated to business sponsors
throughout the Group.
Underpinning our strategy is a robust governance framework,
which holds business sponsors to account and ensures
progress is made against our objectives and targets.
‘Better with Bellway’ is overseen by the Sustainability
Committee who are responsible for overseeing the
development of the overall strategy including objectives,
targets and implementation. The Committee reports
to the Board on key matters and engages with key
external stakeholders.
The ‘Better with Bellway’ Steering Group is led by the Group
Production Managing Director and the Group Head of
Sustainability. This group comprises senior leaders responsible
for the eight business priorities of ‘Better with Bellway’.
They co-opt business sponsors from various departments
within Bellway to implement projects at both functional
and departmental levels, to ensure the achievement of
sustainability objectives and the integration of sustainability
into everyday operations.
Business sponsors meet with the ‘Better with Bellway’
SteeringGroup quarterly. Progress against targets is then
reviewed by the ‘Better with Bellway’ Leadership Team,
andareport submitted to the Sustainability Committee.
This review process comprises a consideration of any risks
(both climate-related and wider risks) to the achievement of
‘Better with Bellway’, including the effectiveness of mitigations
in place and additional actions needed. These arealso
reviewed collectively as part of our overarching risk
management framework of which ‘Environment and Climate
Change’ isaprincipal risk.
We deliver the key messages of ‘Better with Bellway’ to all staff
using a range of methods, including a ‘Better with Bellway’
‘hub’ on our new ‘Pathway’ internal communication system,
on our corporate and customer websites and presentations
toour Employee Listening Groups.
A full summary of the work undertaken to help us form
thisstrategy can be viewed in our ‘Better with Bellway’
Strategy Report available on our website
(www.bellwayplc.co.uk/sustainability).
Reporting frameworks
This report includes non-financial disclosures linked to our
‘Better with Bellway’ strategy, demonstrating how we disclose
and manage key sustainability and climate risks.
We have aligned our ‘Better with Bellway’ KPIs with three
sustainability frameworks that best highlight our value-creating
activities for stakeholders. These frameworks are:
• Task Force on Climate-related Financial Disclosures
(‘TCFD’), see pages 88 to 95.
• Sustainable Accounting Standards Board (‘SASB’), see pages
96 to 99 for further detail.
• United Nations Sustainable Development Goals (‘SDGs’),
integrated into this section under each business
priority area.
We continue to contribute to the Carbon Disclosure Project
(‘CDP’) and will disclose all sections of CDP for the first time in
2024/25. The revised CDP submissions align with TCFD, the
incoming IFRS S1 and S2, and TNFD frameworks.
In the Carbon Reduction section, we report against the
Streamlined Energy and Carbon Reporting (‘SECR’) framework
required by the UK Government, detailing Bellway’s energy
consumption and greenhouse gas emissions. For more
information, please see page 47.
Strategic Report
36 Bellway p.l.c. Annual Report and Accounts 2024
Achieved our
Five-star
5
homebuilder
status
for the eighth consecutive year, recording a Recommend
aFriend score of
91.6%
(2023 – 91.1%)
Flagship business priorities headline KPIs
Customers and Communities
Implemented our fifth Employee Engagement Survey,
achieving an average ‘a great place to work’ engagement
score over a 3-year period.
90%
(2023 – 91%)
Employer of Choice
Achieved a
44.7% reduction
in our scope 1 & 2 emissions against the baseline verified by
Zeco Energy.
Ourscience-based target is a 46% reduction by 2030 in our
scope 1 & 2 emissions against the baseline. Our FY23 and
FY24 emissions have been verified by The Carbon Trust.
Carbon Reduction
23
targets achieved
21
targets in progress
10
targets missed
Targets and KPIs
As part of our ‘Better with Bellway’ strategy, we have
established a series of short, medium, and long-term
sustainability targets and corresponding KPIs for each
business priority. These targets and KPIs will help Bellway
implement our sustainability strategy effectively. They form
thefoundation of the ‘Better with Bellway’ sustainability
strategy and are reviewed annually to ensure they remain
themost appropriate targets to help us achieve our overall
aims and objectives.
The KPIs are designed to provide a high-level overview
aligned with notable Environment, social and governance
(‘ESG’) rating indices. A headline target has been set for each
business priority area, reflecting the vision for that priority.
These headline targets typically span at least two years,
allowing us to achieve sustained improvements. They are
easily communicated to stakeholders and are reported as
principal KPIs in this report (see pages 10 to 13).
Awards success
We are proud of the progress we are making through the
‘Better with Bellway’ strategy. In 2023, we initiated a project
to promote the ‘Better with Bellway’ strategy. We set an initial
target to be shortlisted for five awards, which we exceeded.
This project saw Bellway win eight awards across a number
ofcategories including:
Industry award Award received Link
Housebuilder
Awards
– 2023 Large Housebuilder of
the Year
– Best Staff Development Award
(Employer of Choice)
– Best Sustainability Initiative
(the Future Homes Project)
National
Sustainability
Awards
– Major Project of the Year –
The Future Home
@ University of Salford
Building
Innovation
Awards
– Most Sustainable Construction
Project – The Future Home @
University of Salford
Supply Chain
Sustainability
School
– Partner Award for Supply
Chain Engagement
North East HR&D
Awards
– Excellence in Leadership Award
WhatHouse?
Awards
– Large Housebuilder of the Year –
Bronze Award
Our key achievements in 2023/24
FY24 saw the third year of progress against our ‘Better with
Bellway’ targets. In total, we had 54 external targets spanning
the eight business priority areas, of which 23 have been
achieved, 21 are in progress and 10 have been missed or
re-evaluated where business priorities have changed or the
planned objectives have been delivered via other means.
Full details of target performance can be found under the
relevant ‘Better with Bellway’ business priority sections on
pages 39 to 61.
Strategic Report
37Bellway p.l.c. Annual Report and Accounts 2024
Achieved our
Five-star
5
homebuilder
status
for the eighth consecutive
year, recording a ‘Recommend
a Friend’ score of 91.6%
(2023–91.1%).
Implemented our fifth
Employee
Engagement
Survey
achieving an average ‘a great
place to work’ engagement
score over athree-year period
of90% (2023–91%).
Continued our partnership
with Cancer Research
UK, raising
£612,722
this year, bringing our eight-year
total to £3.76 million.
Achieved a reduction of
14.1%
in absolute terms in our scope
1and 2 carbon emissions (tonnes
CO
2
e) against 2022/23.
Customers and Communities
Carbon Reduction
Won a total of
45
NHBC Pride in the Job Awards.
(2023 – 34).
Continued to use HVO
biofuel across our sites,
utilising over
549,024 litres
of biofuel and saving over
1,334tonnesof carbon.
Implemented a new
‘Pathway’
Communications
System
to ensure that staff are able to
access the most up-to-date
information across the Group.
101 House to
Home
view homes now incorporated
into our developments, showing
customers different stages of
construction from pre-plaster
tofirst fix.
Partnered with
‘Plantlife’
to create Biodiversity Design
Guide and help our customers
create a ‘Space for Nature’ in
their gardens.
Charitable Engagement
89% of key
suppliers
achieved Gold
Supply Chain Sustainability
Schoolmembership.
(2023 – 56%).
Resource Efficiency
Carbon Reduction
Increased the proportion of
REGOelectricity we procure to
90%
across the year, saving 3,671
tonnes of carbon fromentering
the atmosphere.
Key highlights from the year
Biodiversity
Employer of Choice Employer of Choice
Customers and Communities
First report from Energy House 2.0
project, showed
Industry
leading Fabric
Performance
from the Bellway home
constructed in the monitoring
chamber at University of Salford.
Carbon Reduction
Building Quality Homes, Safely
Carbon Reduction
‘Better with Bellway’ Overview continued
Strategic Report
38 Bellway p.l.c. Annual Report and Accounts 2024
Field View
In FY24, we implemented the Field View system at
Bellway, supported with training for all relevant staff,
which has had a significant effect at all Bellway sites.
Field View is a digital platform used in the construction
sector, which replaces traditional pen and paper
methods. The system allows the real-time capture of data,
streamlining processes and improving task management.
Field View allows users to create and track tasks, use
custom forms and produce detailed reports.
Target Progress Performance
Headline
Increase year-on-year the HBF 9-month survey
score with the objective of achieving 82% by
December 2026.
Current performance at 80.1% (2023 – 80.6%).
Retain five-star
5
homebuilder status (>90%
‘Recommend a Friend’) and improve our score
to 95% by July 2024.
Current performance at 91.6% (2023 – 91.1%). This target
will be rolled forward to FY25.
All new sites starting construction works in FY24
to incorporate House to Home view homes.
77 House to Home View Homes constructed on our
developments in FY24, with 101 now open across
the Group.
Introduce new site-based quality management
and compliance system including training for
allsite teams by July 2024.
Field View system introduced and all site teams trained
by July 2024.
Each division to engage with four local schools
byJuly 2024.
664 schools engaged and 20,839 students reached in
FY24. This target was narrowly missed, with all but one
division engaging with four or more schools. This target
will continue in FY25.
Improve customer satisfaction through a reduced
‘Time to Fix’ for defects (target to close down
defects within 28 days).
The ‘days open’ average for reported jobs is 20 days.
Our Service After scores in both NHBC survey periods
areat their highest since 2013.
Customers and Communities
Putting customers and communities at the heart of everything we do
FLAGSHIP BUSINESS PRIORITY
Customers are central to everything we do, and
we take pride in delivering high-quality service
from the very start of their home buying journey.
We continuously enhance our service, as reflected
in our five-star
5
homebuilder rating with a score of
91.6%. Our goal is to build communities in desirable
locations by engaging with, and investing in, the
areas we develop.
Enhancing customer satisfaction
In 2021, we launched our Customer First programme, which
aims to put customers at the heart of everything we do, and
consistently build high-quality homes across the UK. We are
proud of the progress made since its inception, with several
initiatives introduced this year to continuously improve
customer satisfaction.
The launch of the House to Home view homes offers
customers a unique opportunity to witness the housebuilding
journey and understand how their new home was
constructed, with 101 of these view homes integrated into our
developments nationwide. Additionally, we expanded ‘Your
Bellway’ with ‘Your Ashberry,’ launched in 2022, allowing
more customers to receive online updates on build progress
and select additional options. This year, we also introduced
The Build Right Standard and The Build Right Quality
Framework to elevate construction standards.
Our ongoing commitment to customer service and quality
has been recognised in the latest HBF surveys, with 95.2% of
customers recommending Bellway in the eight-week survey
and a stable score of 80.1% in the nine-month survey at
31 July 2024.
We are also proud of our achievements in the NHBC
initiatives, with 45 site managers (2023 – 34) receiving the
Pride in the Job Award for their high standards, leadership,
and technical expertise. Our continued focus on quality
improvement is further demonstrated by our increased score
in the Construction Quality Review by NHBC independent
experts, reaching 89.9% (2023 – 87.9%).
At Bellway, maintaining high-quality customer service after
customers move into their homes is equally important.
Our Service After score in the NHBC surveys stands at
91.0% as of 31 July 2024, underscoring our commitment to
customer satisfaction.
‘Better with Bellway’ Strategy and Priorities
Strategic Report
39Bellway p.l.c. Annual Report and Accounts 2024
Throughout the year, we have supported our customers with
the following incentives:
• Up to £24,000 towards mortgage payments to help reduce
cost of living pressures.
• Score of the Summer, offering customers the opportunity
toreceive 5% of their home’s value as cashback.
As part of the planning process, we also commit to building
affordable homes, which are sold to local authorities and
affordable housing providers. Below is a breakdown of
affordability initiatives and the number of first time buyers who
purchased a Bellway home during FY24.
24.8%
of homes sold to affordable
housing providers
(2023 –25.4%)
26.1%
of homes purchased by
unassisted first-time buyers
(2023 – 18.6%)
26.5%
of homes purchased by first
time buyers
(2023 – 28.3%)
Contributing to our economy
The housebuilding sector significantly benefits the UK
economy. Based on metrics from the HBF, Lichfield, and
other public sources, we estimate that our housebuilding
activities have contributed £1.86 billion in gross value added.
Additionally, these activities have supported an estimated
20,000 to 24,000 direct, indirect, and induced employment
opportunities nationwide.
Future KPIs
Develop a procedure for community engagement in the
design of developments to be used across all projects by
July 2026.
To establish best practice for divisions covering each aspect
of sustainability (environmental, social and economic)
byJuly2025.
Report percentage of developments where we have
implemented community wellbeing initiatives, which
complement, support and mitigate the impact of our
newdevelopments by July 2026.
Each division to engage with four local schools by July 2025.
Develop a ‘Customer Care Portal’ linked to Your Bellway
byJuly 2025.
Develop a ‘Balanced Score Card’ system for quality,
customer care, health and safety and compliance, using
NHBC and Field View statistics by July 2025.
Develop a ‘Construction Tech Integration’ project to ensure
best practice forms are digitalised for quality, programming,
customer care and health and safety by July 2025.
‘Better with Bellway’ Strategy and Priorities continued
Customers and Communities continued
Building better communities
At Bellway, we are dedicated to engaging with, and
investing in, our communities, going beyond our role
as a housebuilder. This year, we have invested a total of
£36.3 million through the planning process to provide
our customers with facilities they can be proud of,
including improvements in education, health services,
andtransport infrastructure.
We have also launched several initiatives to engage with our
communities. This year marked the first year of volunteering
under our new Volunteering Policy, with employees across
the country contributing their time to good causes such as
food banks, hospitals, and animal shelters.
We continue to raise awareness of the construction
industry in primary and secondary schools, encouraging
young people to consider a career they can be proud
of. Through our Schools Outreach programme, we have
reached over 20,000 students and engaged with 664 schools
through newsletters and face-to-face interactions with
colleagues across the UK. We set a target for each division to
engage with four local schools by July 2024. While this target
was missed, with all but one of our divisions engaging with
four or more schools, we will continue to work towards this
target in 2025.
In addition to national initiatives, our divisional teams
organise personalised community days, such as dog walking
events and ‘green groups’ to maintain public spaces in
our developments.
Street scene at our Spindrift Park development, Bognor Regis.
Affordability
At Bellway, we provide a variety of affordable house-buying
schemes and incentives to help buyers purchase their new
Bellway home. To address the ongoing shortage of new
homes in the UK, and alleviate cost-of-living pressures,
we offer part-exchange or our exclusive express mover
programmes, along with a range of mortgage solutions.
These include the Own New Rate Reducer, which allows
customers to enjoy lower monthly mortgage payments.
Strategic Report
40 Bellway p.l.c. Annual Report and Accounts 2024
Sophie Curtis,
Apprentice of the
Year 2024, from our
Durhamdivision.
Charlie Devlin,
Apprentice of the
Year runner-up,
from our Scotland
East division.
It is such an honour to be
recognised by Bellway in this way.
I work hard every day to prove
myself, gain newskills and be
thebest colleague I can be.”
Sophie Curtis
Trainee Assistant Site Manager,
Durham division
Shaping a better
future with Bellway
Award-winning apprentices
This year saw Sophie Curtis, who joined Bellway as an
apprentice bricklayer in August 2021, named as Apprentice
of the Year. Sophie is a huge role model especially for
young people coming into the construction industry.
Sophie also chairs the Early Careers Network where she
is able to share ideas, experiences and shape future
careers with the support of colleagues across the Group.
Following successfully completing her apprenticeship,
Sophie is now a Trainee Assistant Site Manager.
Charlie Devlin, Trainee Assistant Site Manager, was
recognised with the runner-up prize and Jessi-Lou
Baker and Ollie Wynne Williams were named highly
commended apprentices.
41Bellway p.l.c. Annual Report and Accounts 2024
Strategic Report
Target Progress Performance
Headline
Achieve a >90% average score in our Employee
Engagement Survey of staff who would recommend
Bellway as ‘a great place to work’ over a three-year
period (FY22–FY24).
A three-year rolling average of 90.3% (FY22–24) of
staff would recommend Bellway as ‘a great place
to work’.
Reduce voluntary employee turnover rate to 18% or
less by July 2024.
Turnover rate in FY24 was 18.3% (FY23 – 21.9%).
This target will be extended to FY27.
Improve gender diversity of our directly employed
workforce to a 60/40 male/female split by July 2025.
66/34 split for FY24 (FY23 – 69/31).
Improve gender diversity of our senior leadership
teams to 75/25 male/female split by July 2025.
80/20 split for FY24 (FY23 – 79/21).
Improve ethnic diversity of our workforce to 7%
ormore by July 2025.
FY24 diversity of 4.6% based on minority group
classifications (FY23 – 4.9%).
Improve ethnic diversity of our senior leadership
teams to 5% or more by December 2027.
FY24 diversity of 2.9% based on minority
group classifications.
Increase percentage of our workforce in an ‘earn
and learn’ role to 12% by July 2024 and maintain
5%Club Gold membership.
Currently 6.5% of the workforce are in ‘earn and
learn’ roles with 22 new graduate and 41 new
apprentice roles recruited in FY24 and we have
retained our 5% Club Gold membership for FY24.
This target will be extended to FY27.
Implement a formal staff appraisal process across
the business with a proposed launch date of
February 2024.
Mi Experience, employee performance system
launched across Bellway.
Achieve ‘Clear Assured’ Silver status by December
2024, by demonstrating that diversity and inclusion
are reflected across all policies and processes.
We continue to work towards achieving Silver status
and have completed 37 of the required tasks, we
will work on completing the 22 outstanding tasks by
December 2024.
Employer of Choice
Creating an environment that our colleagues can thrive in
FLAGSHIP BUSINESS PRIORITY
At Bellway we are committed to becoming an
Employer of Choice, it is key to our operations
that our people have a safe, diverse and inclusive
environment. As at 31 July 2024, we directly
employ 2,659 people, and it is vital that we
continue to develop and upskill our workforce
to retain strong talent at Bellway and recognise
the importance this can have on filling skills gaps
throughout the Group. During the year, we have
introduced a range of initiatives to ensure the
success of our employees.
Engaging with our workforce
The opinions and ideas of our employees are an important
part of how we progress towards our aim of becoming
an Employer of Choice. Under the ‘Better with Bellway’
sustainability strategy, we have set a headline target of
achieving a three-year rolling average of more than 90% of
employees recommending Bellway as ‘a great place to work’
in our Employee Engagement Survey. This year, saw us carry
out our fifth Employee Engagement Survey, the aim of this
survey is to identify areas of strength, but most importantly
areas of weakness. The results of this survey support the
development of our strategic vision for the future and guides
the initiatives we roll-out across the Group.
This year’s survey saw an increased response rate with 76%
of employees completing the survey. The results show that
we achieved ‘a great place to work’ engagement score of
87% (2023 – 89%), with a three-year average score of 90.3%
(FY22–FY24) both well above the benchmark and meeting
our target to achieve an average score of 90% or above, over
the FY22–FY24 period.
‘Better with Bellway’ Strategy and Priorities continued
Strategic Report
42 Bellway p.l.c. Annual Report and Accounts 2024
Diversity, inclusion and belonging
At Bellway, we are committed to creating an open, diverse
and inclusive working environment, this is highlighted
through several of our ‘Better with Bellway’ targets focusing
on the gender diversity of our direct employers and senior
leadership, while also striving to improve the ethnic diversity
across the Group, our aim is to have a 60/40 split in gender
by July 2025, currently 66/34, and a representation of ethnic
minorities increased to 7% or more by July 2025, currently
4.6% of the workforce.
During FY24, we launched our Inclusion Steering Committee,
which forms part of our inclusion governance model to
support our aspiration of becoming an inclusive Employer of
Choice. The Inclusion Steering Committee is chaired by the
Group HR Director and sponsored by the Chief Commercial
Officer and brings together employee listening group and
diversity group chairs to define and prioritise inclusion goals
and deliverables in line with our inclusivity strategy.
We continue to partner with Women into Home Building
and the HBF to pro-actively attract more females into
Trainee Assistant Site Manager roles, supporting our work
towards improving gender balance in our site-based roles.
During FY24, we supported seven placements, and in FY25
we have committed to supporting 20 placements, which
could result in a permanent offer of employment.
To support our ambition of improving disability diversity
across Bellway, we have continued supporting Leonard
Cheshire’s Change 100 Programme by providing five paid
work placements (2023 - two). Following the placements in
2023, we offered a permanent role to one of the interns.
I’m truly grateful for the understanding
andsupport I’ve received from the amazing
team at Bellway. Their commitment to
inclusivity is inspiring, and it’s a testament
to what’s possible when organisations
prioritise diversity.”
Ivo Vasilev
Marketing Graduate/participant Change 100
The future of Bellway
Bellway would not exist without the talent and commitment
of our colleagues. We invest in our people to ensure that
they have the training and ongoing development necessary
to progress their careers and deliver work they can be
proud of. As an active gold member of ‘The 5% Club’, we are
committed to having at least 5% of our workforce employed
in earn and learn roles, including apprenticeships, student
placements, and graduate roles to support the long-term
growth of the business. We are pleased to report that this year
6.5% of our workforce were in earn and learn roles and we
have recruited 22 new graduate and 41 new apprentice roles,
who joined Bellway in September 2024.
In May 2024, we launched our new digitalised continuous
performance enablement model, Mi Experience.
Utilising technology, colleagues are encouraged to have
regular conversations with their line-manager to support
their career development and wellbeing. This new model
was piloted for three months, and a comprehensive training
programme was rolled out prior to the launch. Following the
launch, the Group HR team undertook roadshows across all
divisions to support the implementation. During FY25, we will
roll-out objectives and colleague feedback to further embed
this into our business.
In addressing skill gaps across the Group in FY24 we
launched a new senior leaders programme for heads of
departments and directors, and we rolled out a bigger
cohort of 66 delegates of our award-winning, Chartered
Management Institute (‘CMI’) accredited middle managers
programme ‘Elevate’ to build leadership capability. In addition,
we have created a number of bespoke training programmes,
such as fire safety, how to create a psychologically safe
workplace and how to have great conversations.
Equality of opportunity
Bellway supports diversity and inclusion through
several initiatives:
• Bellway has implemented policies and provides training on
diversity and inclusion, as well as modern slavery, to ensure
all employees understand and uphold these values.
• The Group is committed to providing equal opportunities
for all current and prospective employees, ensuring a fair
and respectful workplace.
• Employees can report any concerns related to diversity and
inclusion to the HR department or through the SpeakUp
whistleblowing helpline, which is managed by an external
provider to ensure confidentiality and impartiality.
These efforts help create an inclusive environment where
everyone feels valued and respected.
Attracting and retaining talented individuals
Labour shortages remains an issue across the entire
housebuilding industry, exacerbated by skills gaps and
a competitive recruitment market. Bellway’s voluntary
turnover rate for 2024 has decreased to 18.3% (2023 – 21.9%),
narrowly missing the target of less than 18% by July 2024.
We have extended this target to FY27. Last year, we achieved
Accredited Living Wage employer status, offering competitive
remuneration and benefits. These efforts support our
Employer of Choice priority, aimed at attracting and retaining
talented individuals in the business.
Future KPIs
Be recommended as ‘a great place to work’ by our
employees with an average score of >90% over a three-
year period (FY23–FY25).
Develop a purpose and set of values by December 2026.
Establish early careers performance-related progression
plans for construction, commercial and engineering trainees
by July2025.
Develop and implement training programmes through the
Bellway Academy for the production functions (commercial,
technical, construction and customer care) to upskill and
develop new skills by July 2026.
Strategic Report
43Bellway p.l.c. Annual Report and Accounts 2024
The Joiner,
two-bedroom
home at our Ivy
Hill development
in Bacton.
Sales Adviser Charlotte Largent and Senior
Site Manager John Baker showing, an air
source heat pump system.
The completion of the first new
home benefitting from an air
source heat pump is a significant
moment for not only Ivy Hill but
the division as a whole.”
Marrissa Gale
Sales Manager for Bellway Eastern Counties
Better sustainable
living with Bellway
Bellway Eastern Counties has
completed its first new home
heated by a sustainable air
source heat pump.
In FY24, our Eastern Counties division completed its first
new homes heated by sustainable air source heat pumps.
The Ivy Hill site is in a location that is difficult to connect
to the gas grid. Previously, homes in such areas would be
heated using high-carbon oil-fired solutions. However,
to support our transition to fossil fuel-free heating, all 85
properties at the Ivy Hill site will feature low-carbon air
source heat pumps and underfloor heating.
This marks the first homes delivered by Bellway Eastern
Counties to be heated in this manner, representing a
significant shift from traditional methods.
Strategic Report
44 Bellway p.l.c. Annual Report and Accounts 2024
Target Progress Performance
Headline
Reduce ‘absolute’ scope 1 and 2 emissions (tonnes
CO
2
e) by 46% by July 2030 against FY19 baseline.
FY24 saw absolute emissions fall to 14,227 tonnes CO
2
e,
a 14.1% reduction against the previous year and a 44.7%
reduction against our base year (FY23 – 16,562; FY19
base year – 25,715).
Reduce scope 3 emissions (tonnes CO
2
e per
m
2
floor area) by 55% by July 2030 against
FY19 baseline.
FY24 saw emissions reduced to 1.40 tonnes CO
2
e
perm
2
floor area (FY23 – 1.52; FY19 base year – 1.53).
Build four ‘Future Homes’ exemplar units at a site
in Manchester (changed to four units at Barton
Quarter, Bolton).
Construction of four ‘Future Homes’ units at Barton
Quarter ‘Future Hub’ completed in August 2024.
Build four ‘Future Homes’ exemplar units at a site in
Eastern Counties (changed to five units at Stafford,
West Midlands).
Five Zero Bills Homes under construction, completed
in September 2024.
Complete net zero ready exemplar plots at three
sites and install monitoring equipment to compare
energy consumption and running costs.
Exemplar plots complete, issues with the installation of
monitoring equipment at one site have resulted in us
missing this target. We will continue to work towards
this target in FY25.
Review car allowance payments to promote
choice of low emission, hybrid and electric
vehiclesby 2025.
Following a review of car allowance payments there is
no current plans to change the allowance. At the end
of FY24, 73.1% of the vehicles leased through our LEX
Autolease scheme were electric vehicles.
All divisions to commence Air Source Heat Pump
(‘ASHP’) trial sites, delivering space and water
heating by December 2024.
All divisions have identified a site to trial ASHPs.
Establish a programme to support SME
housebuilders through general mentoring,
interactive video and in-person training days
atFuture Homes exemplar projects.
24 SMEs supported in FY24. Further events to take
place in FY25, including atBarton Quarter ‘Future
Hub’, Bolton.
Carbon Reduction
Delivering low carbon homes
FLAGSHIP BUSINESS PRIORITY
The IPCC (Intergovernmental Plan on Climate
Change) states that global emissions need to peak
by 2025 for us to avoid 1.5°C of global warming
compared with pre-industrial levels. In response
to this challenge, we have set ambitious Science
Based Targets for Carbon Reduction, and we
are working hard to ensure the transition to air
source heat pumps from gas boilers is as smooth
as possible.
Science based targets
As part of the ‘Better with Bellway’ Carbon Reduction business
priority, we collaborated with the Carbon Trust to establish
two science-based targets (‘SBT’s):
• Bellway pledges to cut absolute scope 1 and scope 2 GHG
emissions by 46% by July 2030, using FY19 as the base year,
in line with the 1.5°C pathway.
• Bellway aims to decrease scope 3 GHG emissions by 55%
per square metre of completed floor area by July 2030, from
an FY19 base year, following well below the 2°C pathway
using the physical intensity target criteria (cumulative
base year).
‘Better with Bellway’ Strategy and Priorities continued
Strategic Report
45Bellway p.l.c. Annual Report and Accounts 2024
In FY24, we saw our market-based scope 1 and 2 emissions
fall by 14.1% from FY23, down to 14,227 tonnes of CO
2
e, which
represents a 44.7% reduction against our FY19 baseline of
25,715 tonnes of CO
2
e. Our emissions have reduced due to
the increased use of renewable electricity ‘REGO’ tariffs, our
ongoing investment in ‘Green Diesel’ and a reduction in
volume output due to market conditions.
We are close to meeting our 2030 target, and we will continue
to implement initiatives to further reduce emissions, including
plans to trial energy efficient construction site setups, and a
push to connect to the electricity grid earlier. We do however
anticipate a slight increase in FY25 emissions as our volume
output returns to previous levels.
With regards to our scope 3 target, the most significant
emissions are in category 11a (use of sold product), and they
will fall as we transition to all-electric air source heat pumps.
For FY24, we did see a reduction in scope 3 emissions,
of 7.9%, this was due to 130 ‘all electric’ plots (2023 - 95),
354 properties built to the updated Part L 2021 building
regulations, plus 24.8% of our homes included Solar PV
system, (2023 - 20.4%). We have also benefitted from an
update to the Energy & Emissions Projections, released by the
Department of Energy Security and Net Zero in October 2023,
which shows a quicker decarbonisation of the power grid,
which further reduces emissions from electricity. When the
Future Homes Standard comes into force, we will be moving
towards ‘all-electric’ homes, and we are working hard to
ensure this transition is a success.
Energy Saving Opportunities Scheme (‘ESOS’)
Phase 3 project
ESOS is a mandatory energy assessment scheme, where
large organisations are required to carry out energy
audits and report on energy consumption and savings
opportunities. In FY24, Bellway completed a project to comply
with the ESOS Phase 3 scheme. Our route to compliance
included appointing an ESOS Lead Assessor, who organised
energy audits at 12 locations across our business, including
two offices and ten developments. The recommendations
from the audits include carrying out a Group-wide energy
awareness campaign, reviewing building set-points and the
temperature in show homes and sales offices.
We submitted our compliance notification ahead of the
August 2024 deadline.
Streamlined Energy and Carbon Reporting
(SECR)Disclosure
In line with the Companies Act 2006 (Strategic Report and
Directors’ Reports) Regulations 2013 and the Companies
(Directors’ Report) and Limited Liability Partnerships (Energy
and Carbon Report) Regulations 2018 (‘SECR’), we disclose
our greenhouse gas (‘GHG’) emissions in the annual
Strategic Report.
Our GHG reporting year aligns with our financial year, and we
provide the previous year’s figures for comparison. Scope 1
includes emissions from fuel combustion and the operation
of facilities owned or operated by the Group (e.g. diesel in
site generators and telehandlers; fuel in company cars used
for business; and gas for heating in offices, show homes, and
construction compounds), while scope 2 includes emissions
from purchased electricity.
Our emissions calculation methodology follows the UK
Government’s Environmental Reporting Guidelines (2013)
and uses emission factors from the 2023 government GHG
Conversion Factors for Company Reporting. For scope
2 emissions, we report using both the location-based
and the market-based method to account for our use of
renewable electricity.
We report all emission sources for which we are responsible,
except for the following exclusions:
• Gas from part-exchange properties due to immateriality
– an estimation exercise showed that emissions from
gas used in these properties from October to May (when
heating is active to prevent damp and frozen pipes)
account for only 0.42% of the total scope 1 and 2 footprint.
• Emissions from air conditioning units in office buildings in
the FY19 footprint due to immateriality and data collection
difficulties. This data has been collected and included in the
FY23 and FY24 footprints.
• Emissions from site-based combined heat and power units
over which we do not have operational control.
We estimate carbon emissions in the following areas:
• Diesel fuel usage on a smaller number of sites where fuel is
provided by our groundworks contractors. Bellway’s share
is estimated based on forklift usage.
• Divisional offices where gas and electricity usage are
included in landlord charges. Bellway’s usage is estimated
using a kWh per square metre of occupied floor space
figure derived from other divisional offices with utility billing.
For scope 1 and 2 emissions, data for the FY19 base year has
been externally verified by Zeco Energy to a ‘reasonable
assurance level’ using the ISO-14064-3 verification standard,
while FY23 and FY24 emissions have been verified by the
Carbon Trust to a ‘limited assurance level’ using the ISO
14064-3 verification standard.
For scope 3 emissions, FY24 and FY23 emissions have been
verified by The Carbon Trust to a ‘limited assurance level’
using the ISO 14064-3 verification standard. Emissions for the
FY19 base year were calculated with the assistance of The
Carbon Trust for our Science Based Target submission but
have not undergone official verification.
We anticipate the publication of the Science Based Target’s
Construction Sector Guidance in late 2024 and will review our
scope 3 target to ensure it aligns with the latest guidance.
‘Better with Bellway’ Strategy and Priorities continued
Carbon Reduction continued
Street scene from our Abbey View development in Bourne.
Strategic Report
46 Bellway p.l.c. Annual Report and Accounts 2024
Greenhouse gas emissions (‘GHG’) (tonnes of CO
2
e)
(a)
2024 2023
2019
(base year)
Scope 1 – Combustion of fuel and operation of facilities (includingdiesel and petrol
used on-site and in company cars onGroup business) 13,590 15,116 20,560
Scope 2 – Electricity purchased for our own use (market-method)
(b)
637 1,446 5,155
Total market-method scope 1 and 2 GHG emissions 14,227 16,562 25,715
GHG intensity (market-method) per Bellway home sold 1.9 1.5 2.4
GHG intensity (market-method) per Bellway employee
(c)
5.1 5.3 8.6
Scope 1 – Combustion of fuel and operation of facilities (includingdiesel and petrol
used on-site and in company cars onGroup business)
13,590 15,116 20,560
Scope 2 – Electricity purchased for our own use (location-method)
(d)
4,101 3,979 5,518
Total location-method scope 1 and 2 GHG emissions
(d)
17,691 19,095 26,078
GHG intensity (location-method) per Bellway home sold 2.3 1.7 2.4
GHG intensity (location-method) per Bellway employee
(c)
6.4 6.1 8.8
Out of scope emissions
(e)
1,334 1,678 –
Energy consumption used to calculate above emissions (kWh) 89,829,236 96,735,314 109,622,315
Scope 3 (Category 1a: Purchased goods and services – product) 262,925 383,179 380,164
Scope 3 (Category 1b: Purchased goods and services – non-product) 13,493 15,934 16,261
Scope 3 (Category 2: Capital goods) 1,013 2,066 19,030
Scope 3 (Category 3: Fuel and energy-related activities) 5,055 5,044 5,081
Scope 3 (Category 4: Upstream transportation and distribution) 55,967 81,653 80,916
Scope 3 (Category 5: Waste generated in operations) 1,554 2,447 4,253
Scope 3 (Category 6: Business travel) 2,414 2,653 418
Scope 3 (Category 7: Employee commuting) 1,340 1,489 1,468
Scope 3 (Category 11a: Use of sold products – direct) 591,475 958,055 998,544
Scope 3 (Category 12: End-of-life treatment of sold products) 62,995 91,865 90,761
Scope 3 (Category 15: Joint venture developments emission) 7,187 – –
Total scope 3
(f)
1,005,418 1,544,385 1,596,895
Scope 3 – GHG intensity (tonnes CO
2
e per m
2
of completed floor area) 1.40 1.52 1.53
Notes:
a. Carbon dioxide equivalent as per the meaning given in Section 93(2) of the Climate Change Act 2008.
b. Scope 2 emissions reported using the market-based method to account for electricity supplies purchased under REGO contracts.
c. Based on the average number of employees during the year.
d. Scope 2 emissions reported using the location-based method for total electricity used which does not account for the zero-carbon nature of electricity supplies purchased under
REGO contracts.
e. ‘Out of Scope’ biogenic emissions arising from our consumption of HVO biodiesel.
f. Total scope 3 emissions are reported in line with our scope 3 science-based target, and so exclude category 11b (use of sold products – indirect). We have separately calculated these
category 11b emissions as part of our carbon lifecycle analysis as 36,276 tonnes of CO
2
e (2023 – 68,103; 2019 – 88,663). Categories 8, 9, 10 and 14 are not relevant to the Group.
Scope 1 emissions decreased by 10.1%, primarily due to our
adoption of HVO biofuel in site generators and telehandlers,
which offers approximately a 90% carbon reduction compared
to traditional white diesel. This switch to HVO has prevented
over 1,334 tonnes of carbon from being released into the
atmosphere this year. Scope 2 emissions (market-based) have
also dropped by 55.9%, due to our increased use of REGO
(Renewable Energy Guarantee of Origin) electricity supplies
and the ongoing decarbonisation of the UK electricity grid.
Currently, 90.0% of our electricity comes from renewable
sources (2023 - 78.4%), saving 3,671 tonnes of carbon over
the past year. Excluding the benefits of our REGO supplies,
location-based scope 2 emissions rose by 3.1%.
With 7,683 new homes (including our share of JV’s)
completed this year, scope 1 and 2 emissions (market-based)
per home sold rose by 26.7% to 1.9 tonnes (2023 – 1.5). Due to
a reduction in total number of employees, our scope 1 and 2
(market-based) emissions per employee decreased by 3.8% to
5.1 tonnes (2023 – 5.3).
We expect a significant reduction in our scope 3 emissions
from 2025 onwards, when the Future Homes Standard is
expected to come into force. For FY24 we saw a 38.3%
reduction in the ‘use of sold product’ category, as a result
of building 354 homes to the updated Part L 2021 building
regulations, 130 air-source heat pump properties being
completed and a reduction in volume output. We continue
to engage with our supply chain partners to gather updated
Environmental Product Declarations (EPDs), which are used in
our value-chain model and allow us to calculate category 1a,
purchased goods and services – product, emissions.
Strategic Report
47Bellway p.l.c. Annual Report and Accounts 2024
‘Better with Bellway’ Strategy and Priorities continued
Carbon Reduction continued
The Future Home Research Project
In connection with the development of our Future Homes
Standard (‘FHS’) specification, we have initiated several
projects to provide lower carbon and more energy-efficient
homes for our customers. The Energy House 2.0 project at
the University of Salford is an advanced research initiative
aimed at testing the energy efficiency and resilience of homes
under various climatic conditions. Bellway is a key partner in
this project, having built ‘The Future Home’, a three-bedroom
detached house within the climate-controlled chamber to
assess low carbon heating technologies and energy-efficient
building materials. This collaboration seeks to offer valuable
insights for significant reductions in carbon emissions for new
homes from 2025.
In January 2024, the first report from the project was released,
presenting initial results from rigorous testing of the homes’
fabric. These early findings suggest that the Future Homes
Standard can be achieved at scale, provided that the supply
chain and skills training keep up. The homes showed
resilience against extreme climates, with only a small variance
of up to 8% between expected and actual performance.
Further testing later this year will examine the effectiveness of
different types of electrified heating systems within the homes.
Barton Quarter – award winning ‘Future Hub’
The transition to low carbon housing presents a significant
challenge for the housebuilding industry. As traditional gas-
fired heating is phased out, we will see a significant increase in
the number of ASHPs installed in the UK each year, risingfrom
the tens of thousands to the hundreds of thousands.
There’s a steep learning curve for companies across the
sector who need to upskill their workforce at pace. The stakes
are high as if the FHS is not met, it will put the entire net
zero pledge at risk. Bellway is committed to driving forward
a methodical and incremental approach to ensure the
necessary understanding and knowledge is in place at all
levels, so that this transition is successful.
Our Future Hub at Barton Quarter in Bolton is an industry-
leading project to share expertise about how low-carbon
technologies including ASHPs can help homebuilders deliver
the changes required at scale to meet net-zero targets.
An important aspect of the Future Hub is getting organisations
and individuals on board with ASHPs who may be reluctant,
unconvinced, or uninformed about them. For FY24 we set an
objective to engage with SME housebuilders, and the Future
Hub presents a clear and workable path ahead towards FHS,
not only raising the level of training within our own business,
but making a significant contribution to the industry, to FHS
and to the UK’s net zero commitment.
In recognition of our contribution to the wider-net zero aims,
we won the 2024 Next Generation ‘Innovation Award’.
Reducing transport emissions
In 2022, we launched a salary sacrifice lease scheme to offer
Bellway staff an affordable way to lease electric vehicles,
thereby reducing our scope 3 transport emissions and their
personal carbon footprints. Since its introduction, we have
actively promoted the benefits of this scheme, and as of
31 July 2024, a total of 145 employees have participated.
To further support this initiative, Bellway has installed EV
charging points at all our offices, enabling staff to conveniently
charge their vehicles.
Future KPIs
Establish a ’net-zero’ target and produce a Climate Transition
Plan by July 2025.
Build ten homes to Passivhaus Standard by December 2025.
Solar panels fitted to one of our homes.
Octopus Energy Zero
Bills Homes
In 2024 we partnered with Octopus Energy to trial their ‘zero
bills homes’ approach across two Bellway developments
at Victoria Gate, Stafford and Sharnbrook, Bedfordshire.
Our homes will be fitted with 20 Solar PV panels, a 13.5kWh
battery, Air Source Heat Pump and an Octopus’ ‘kraken’
energy management system. Customers are guaranteed
‘zero’ energy bills for five years.
Strategic Report
48 Bellway p.l.c. Annual Report and Accounts 2024
Target Progress Performance
Headline
Reduce the annual RIDDOR rate to below the
three-year rolling average by July 2024.
The RIDDOR rate for FY24 is 170.99 versus a rolling
average for FY22 – FY24 of 210.74 (FY23 RIDDOR rate:
221.15; FY21 – FY23 rolling average: 193.43).
>80% of applicable employees trained on the
Group’s Fire Safety Policy and the Building Safety
Bill by July 2024.
95% of applicable employees have received training
on the Group’s Fire Safety Policy and the Building
Safety Bill.
Reduce accident rates from identified reporting
areas to below previous FY levels year on year.
During FY24, there were nil third-party reported
accidents (FY23 - nil) and 50 manual handling injuries
(FY23 - 76).
Increase the ratio of mental health first aiders
(‘MHFA’) to 1 in 10 (10%) by July 2024.
Current percentage for FY24 is 9.0% (FY23 – 5.8%).
Increase employees receiving mental
health awareness training to 1 in 5 (20%) by
December 2024.
Currently 14.6% of employees have received mental
health awareness training (FY23 – 10.4%).
Achieve ISO 14001 certification for the whole
business by July 2026.
We are working towards certification and have
partnered with consultancy Loreus to assist with
system development, and Interface NRM to act as our
external auditors.
Greater engagement with on-site colleagues and
subcontractors on mental health awareness, by
providing workshops on every site once a year to
discuss key areas such as suicide prevention, panic
attacks and first aid.
During the year three workshops were delivered to on-
site colleagues and subcontractors on mental health
awareness. This workshop has been re-designed and
will be rolled-out in FY25.
Reduce the number of slips, trips and falls from a
FY23 baseline of 113.
FY24 slip, trip and fall incidents fell by 23.0% from 113
to 87.
Increase the number of ‘near miss incidents’
reported from a FY23 baseline of 403. To provide
Bellway with the opportunity to see where action
is required.
10,998 near-miss incidents were reported during FY24.
100% of divisions to be provided with customer
care maintenance operative training on health and
safety subjects such as documentation, dynamic
risk assessments and safe use of ladders.
Complete.
Building Quality Homes, Safely
Quality and safety first for everyone
As a responsible homebuilder, the health, safety
and wellbeing of our stakeholders remains our
top priority. We strive to continuously enhance
health and safety standards across the Group, both
on our sites and in our offices. This commitment
is reflected through various key initiatives,
policies, and training programmes implemented
throughout Bellway.
Near-miss reporting
We continued our focus on near-miss reporting and
improving the communication with our subcontractor based
staff on-site this year, with incredible results. Statistics show
that near misses give employers, such as ourselves, the
opportunity to see where action is required, before accidents
occur. We encouraged all our employees and contractors
to anonymously report near-misses using a QR code, and
analysed the data monthly to identify any urgent or recurring
areas of risk. A phenomenal uptake in this system meant that
we recorded almost 11,000 near misses in the year, and has
led to policy changes such as introducing an Anti-cut Gloves
Policy, whereby anyone handling or cutting materials that
could cause injuries must wear anti-cut gloves.
Strategic Report
49Bellway p.l.c. Annual Report and Accounts 2024
‘Better with Bellway’ Strategy and Priorities continued
Building Quality Homes, Safely continued
Introduction of Health and Safety Workshops
Tool box talks have historically been used for delivering
generic safety-related information to a wide site audience.
We have recognised that alternative methods will further
support an improvement in retention of information.
Therefore, this year we introduced Health and Safety
Workshops. We invited the supervisors and managers of
our key subcontractors to our sites to engage for half a
day in activities that required participation, 97.5% of those
who have attended have provided feedback, stating that
they would enjoy more of the workshops on a variety of
subjects in the future, and that the information became more
understandable because of this approach.
Mental health
At Bellway, we recognise the significance of mental health
for our employees and subcontractors. We have established
programmes to ensure we have trained mental health first
aiders, and we offer employees the opportunity to participate
in mental health awareness training to provide quality support
to those in need.
Currently, we have 238 (9.0%) trained mental health first aiders
across the Group. Under the ‘Better with Bellway’ strategy, we
now aim to have at least 10% of our direct workforce trained
by December 2024. Bellway also seeks to raise mental health
awareness across the Group, aiming to train 1 in 5 of our
workforce in mental health awareness.
We will continue to promote mental health awareness by
aiming to train a further 350 employees in the next financial
year. We also offer a confidential helpline for employees
to speak to an independent third party if they feel more
comfortable doing so. Recognising the importance of
mental health, this year, following a project by a group
ofour graduates, we partnered with Bill Hill, the former
ChiefExecutive of The Lighthouse Construction Industry
Charity, to release an episode of our ‘Bricking It’ podcast
discussing mental health in the construction sector.
The episode covers why mental health issues are more
prevalent in the construction industry and the charity’s
new‘Make It Visible’ campaign.
Recognising excellence in health and safety
First held in 2022, the Annual Health and Safety Awards were
established to recognise Bellway developments that excel
in health and safety practices. While all our sites across the
Group uphold high standards, our Earls Way site was selected
as the winner of this year’s National Award for its exceptional
trade discipline, cleanliness, and promotion of a positive
safety culture.
Future KPIs
Health and Safety workshops to be delivered in all divisions,
informed byaccident and near miss data trends by
July2025.
Awareness of Silt Management to be raised with
construction, technical and commercial teams by July 2025.
Gap analysis of our Health and Safety Management System
against requirements of ISO 45001 by July 2025.
100% of sales operatives to attend a half-day course in
Health and Safety, delivered by the Regional Health and
Safety Managers by July2025.
Group of our Graduates and Apprentices on a site visit.
Strategic Report
50 Bellway p.l.c. Annual Report and Accounts 2024
Building Safety – Our Progressing Remediation Work
Proactive remediation
Bellway has consistently taken a proactive approach to fire
safety and is committed to delivering remediation works as
quickly as possible, having set aside £609.7 million (2023
– £582.8 million) for legacy building safety improvements
since 2017.
In August 2022, Bellway established a new standalone
Building Safety Division, which is dedicated to the remediation
of buildings over 11 metres in height where life critical fire
safety issues have been identified. In March 2023, Bellway
signed the Ministry of Housing, Communities and Local
Government (‘MHCLG’) Self Remediation Terms (‘SRT’) in
England, which converted the principles of the building safety
pledge signed in 2022, in which we committed to resolving
any life critical fire safety issues on buildings over 11 metres
completed since 5 April 1992, into a binding agreement
between the government and Bellway. This was followed
with the signing of the Welsh Government’s Self Remediation
Terms in May 2023, which follows the same remediation
principles as those in England. The signing of the English
and Welsh SRT’s provided clarity for future remediation,
particularly with regards to the standards required for
internal and external remedial works on legacy buildings.
Bellway continues to engage with the Scottish Government
and Homes for Scotland in developing the Scottish Accord,
and has agreed in principle to the intentions of the Accord.
In addition, we have implemented a programme to ensure
all applicable employees receive training on the principles of
the Group’s Fire Safety Policy and the requirements of the SRT.
This programme has recently undergone a review and an
up-to-date training programme was rolled out to all applicable
employees during FY24.
Identifying and assessing
Following the Grenfell tragedy in June 2017, Bellway
proactively instigated a full review of our high-rise portfolio
and identified buildings with aluminium composite material
(‘ACM’) cladding. At the time of construction, all Bellway
developments met the required building regulation approvals.
We implemented remediation plans immediately following
the tragedy, identifying high-risk buildings where ACM
cladding was used in the construction. The work to remediate
these buildings has been complex and subject to ongoing
regulatory changes since 2017, with the scope of work
required extending beyond cladding to focus on the wider
external wall construction.
The signing of the SRT in March 2023 provided clarity on the
standard required for buildings, ensuring that remediation
works meet the requirements of the SRT. We have taken a
prudent approach to ensure we assess to this standard, even
where buildings may have been assessed under previous fire
safety standards. Although this is a lengthy process, relying
on co-operation of building owners and managing agents,
this approach is vital in ensuring Bellway fully remediates
buildings to the required standards.
Following the signing of the SRT, the Group identified a total of
499 buildings over 11 metres high, which required assessment.
We have been working with key stakeholders, and
independently qualified fire engineers to carry out thorough
SRT-compliant assessments of these buildings and deliver
remediation works as quickly as possible when required.
Building remediation is a complex process and where
Bellway no longer retains any legal responsibility for a
development, legal permissions need to be in place before
we are able to complete assessments or subsequent
remediation activity. In some cases, protracted legal
negotiations with building owners and/or managing
agents have led to delays in performing assessments and
remediation works. In addition, progress is dependent on
the availability of independent qualified fire engineers and,
in some cases, planning requirements both potentially
resulting in delays. The introduction of the new Building
Safety Regulator, although a welcome move, has meant
additional regulatory requirements needing to be met before
any work can commence on buildings over 18 metres.
We have been working with the newly created Ministry of
Housing, Communities and Local Government (‘MHCLG’) to
address the constraints limiting acceleration in the pace of
assessments and remediation.
As at 31 July 2024, 293 buildings have been assessed, which
identified that remedial work are required on 134 buildings.
Strategic Report
51Bellway p.l.c. Annual Report and Accounts 2024
‘Better with Bellway’ Strategy and Priorities continued
Building Safety – Our progressing remediation work continued
Moving forward, the Group is proactively working through
the assessments required for the remaining 206 buildings,
but notwithstanding the issues highlighted above, we expect
these to be completed by the end of FY26 subject to the
cooperation of building owners and managing agents.
Committed remediation
The total amount Bellway has set aside for the SRT and
associated review in England, Scotland and Wales since 2017
is £609.7 million, with a remaining provision of £509.2 million
at 31 July 2024. Costs have been provided regardless of
whether Bellway still retains ownership of the freehold
interest in the building or whether warranty providers have a
responsibility to carry out remedial works. The provision has
been calculated based on our extensive experience to date,
using analysis of previously tendered works and prudent,
professional estimates based on our knowledge of known
issues. For buildings where full investigations have not yet
been undertaken or cost reports obtained, an allowance
has been made for as yet undiscovered problems, based
onexperience to date from similar developments.
Future remediation
Since 2017, Bellway has taken a proportionate approach
to remediation of buildings, concentrating on the higher-
risk developments where a detailed understanding of the
building safety issues was known. We have taken the same
approach to our SRT requirements, concentrating on initial
remediation and identifying those developments where there
is the greatest known risk. This is an evolving strategy as more
assessments are undertaken.
Of the 134 buildings identified as requiring remediation,
11 have been completed, 40 have work underway and
we expect a further 17 to begin within the next six-month
period. In the medium term, we expect a further 7 buildings
to begin remediation within 6–12 months, and 14 between
12–24 months. These figures exclude a further 35 buildings
where remediation work was completed prior to the signing
of the SRT.
In relation to building safety, our ongoing focus on this serious
matter is reflected by the proactive approach to assessing
and remediating schemes through our dedicated Building
Safety division, and the Group is making every effort to further
accelerate progress in this area.
Since the start of our remediation programme, the Group
has spent over £145 million on legacy building safety issues.
Notwithstanding the ongoing complexities with regards to
building safety, Bellway is focused on completing works
as promptly and efficiently as possible, and we expect to
continue making strong progress with our programme of
remediation in the current financial year.
293
buildings have been assessed as at 31 July 2024
£609.7m
The total amount Bellway has set aside for the SRT and
associated review in England, Scotland and Wales since 2017
Over
£145m
has been spent on legacy building safety issues since
thestartof our remediation programme
Strategic Report
52 Bellway p.l.c. Annual Report and Accounts 2024
Target Progress Performance
Headline
85% of our key 100 suppliers with GOLD Supply
Chain Sustainability School (‘SCSS’) membership by
July 2024.
89% of our key suppliers now have Gold membership
with the Supply Chain Sustainability School.
Undertake discovery meetings with top 50
suppliers on joint sustainability and embodied
carbon topics by December 2024.
42 Supply Chain Discovery meetings held to date,
topics for discussion have included long-term climate
scenario analysis.
Top 500 subcontractors to be registered with the
Supply Chain Sustainability School (%) by July 2026.
Currently 101 Bellway subcontractors are registered with
the Supply Chain Sustainability School.
Engage with our supply chain to materially reduce
single-use plastics in their packaging and products.
All suppliers we have engaged with in our Supply
Chain Discovery meetings are implementing initiatives
to reduce single-use plastics.
Ensure that at least two Bellway employees in each
division have undertaken training with Supply
Chain Sustainability School by July 2024.
69 staff members are signed up to SCSS, with at least
two from each division.
Sustainable Supply Chain
Driving sustainability through long-term partnerships
As a responsible housebuilder, we take all
necessary steps to source all of our products and
services in an ethical, sustainable and socially
conscious way. We have a range of policies,
procedures and initiatives that guide this process
and the ‘Better with Bellway’ sustainable approach
provides a framework to ensure continuous
improvement in this area.
Award winning supplier engagement programme
We received the Partner Award for Supply Chain Engagement
from the Supply Chain Sustainability School, announced
during the Net Zero Summit 2023. This award acknowledges
our success in promoting the School’s learning and training
to our supply chain partners and our dedication to enhancing
their skills in various sustainability issues, including reducing
carbon and waste and combating modern slavery.
In FY24, we continued to encourage our supply chain
partners to engage with the SCSS, setting an external target
for at least 85% of our key 100 suppliers to achieve Gold
membership status. By July 2024, 89% of our key 100 suppliers
had attained Gold membership status, surpassing our target.
Achieving Gold membership requires an organisation to
complete a specified amount of training and produce a case
study detailing how they have implemented sustainability
initiatives within their operations.
This year, we also launched our Supply Chain Discovery
meetings, which have been an effective tool for engaging
with our suppliers on key sustainability topics. As of July 2024,
we have conducted 42 meetings where suppliers showcased
initiatives to reduce their impact, such as a steel company
switching to an ‘electric arc furnace’, a timber supplier
installing a railway line to a depot to cut transport emissions,
and a plant-hire firm incorporating ‘just-transition’ initiatives
into their sustainability strategy to ensure no one is left behind
by net-zero.
We are expanding our supplier engagement programme,
aiming for our top 500 subcontractors to be registered with
the Supply Chain Sustainability School by July 2026.
Maintaining long-term relationships
Building and sustaining long-term partnerships with our
subcontractors and suppliers is crucial to Bellway’s success.
These robust relationships enable us to collaborate effectively
with the supply chain, helping us achieve our sustainability
objectives. This includes optimising packaging, significantly
reducing single-use plastics, and lowering embodied carbon
to meet our ambitious scope 3 emissions reduction targets.
In FY24, our supply chain spend was £1.5 billion (2023
– £2.1 billion), delivering a £1.4 billion investment in the
UK economy (based on the HBF estimating that 90% of
housebuilders’ supply chain spend remains in the UK).
Voltage Optimiser Trial at Head Office
Through our stationery supplier ‘Commercial’ we installed
a ‘voltage optimiser’ at Head Office in January 2024.
This equipment regulates and reduces incoming voltage to
an optimal level, improving energy efficiency and extending
the lifespan of electrical equipment. As at 31 July 2024, the
equipment had saved 14,488kWh, which equates to £5,071.
For FY25, we are looking to install similar devices across our
divisional offices.
Strategic Report
53Bellway p.l.c. Annual Report and Accounts 2024
Sourcing responsibly
As part of our Sustainable Procurement Policy and Supply
Chain Discovery meetings, we have been collaborating with
our suppliers to ensure that the products we purchase are
responsibly sourced. Since April 2022, we have requested
that our supply chain use plastics with a minimum of 30%
recycled content. We have been working with suppliers
and the SCSS packaging optimisation group to eliminate
plastics altogether or to use more recyclable alternatives
where available. When plastics are unavoidable, we aim to
standardise the types used to facilitate easier segregation and
recycling. Many suppliers are now transitioning to recycled
cardboard as an alternative and are opting for higher recycled
content plastics where no alternatives exist.
For several years, we have required all our timber suppliers to
provide only sustainable timber. An audit of Group suppliers
showed that 99.8% met our sustainability standards of Forestry
Stewardship Council (FSC), Programme for the Endorsement
of Forest Certification (PEFC), or Category B standard. We plan
to extend this audit to divisional suppliers and subcontractors
in FY25.
Ensuring compliance in our supply chain
At Bellway, we have implemented several policies and
procedures to ensure our partners adhere to the agreed
standards. These policies are overseen by the Board
and include:
• Anti-Slavery Policy: Reflects our zero tolerance for any form
of slavery, servitude, forced labour, or human trafficking.
• Responsible Sourcing Policy: Demonstrates our agreed
standards, which can be monitored.
• Whistleblowing Procedure: Provides a confidential
mechanism for reporting any wrongdoing.
• Anti-Bribery and Corruption Policy: Sets out the standards
expected of our employees, with a zero tolerance approach
to bribery and corruption.
Our Anti-Slavery Policy, which underscores our zero-tolerance
stance, is available on our website along with our latest
Slavery and Human Trafficking Statement detailing the actions
we have taken.
To ensure compliance, we require all applicable suppliers
and subcontractors to either have their own modern slavery
policies or adopt Bellway’s Policy. Employees undergo
mandatory training to enhance their awareness and ability to
identify signs of slavery, with compliance activities monitored
throughout the year.
We continue to conduct risk-based site visits, both internally
and externally facilitated, focusing on our subcontracted
workers and their adherence to our modern slavery
procedures. Additionally, we participate in sector-wide
working groups to champion best practices.
Group management is responsible for enforcing compliance
and conducting additional checks as needed. We work with
partners to address any identified non-compliance issues and
reserve the right to terminate relationships as a last resort.
Future KPIs
Arrange a supplier conference with a strong emphasis
onSustainable Procurement by April 2025.
Ascertain approximate spend with suppliers who are
certified to BES 6001 Responsible Sourcing of Materials
byJuly 2025.
Establish a process for sustainability and modern slavery
checks on Tier 2 suppliers by July 2025.
Support the Group’s compliance with the Taskforce
for Climate Related Financial Disclosures (TCFD) and
Taskforce for Nature Related Financial Disclosures
(TNFD)requirements by engaging with our supply chain
byJuly 2027.
Street scene at our Millstone Park development in Yorkshire.
‘Better with Bellway’ Strategy and Priorities continued
Strategic Report
54 Bellway p.l.c. Annual Report and Accounts 2024
Target Progress Performance
Headline
Reduce waste per completed unit by 20% by
July 2025 (achieving 7.1 tonnes of waste per
completed unit).
FY24 performance is at 7.1 tonnes (FY23 – 8.6 tonnes).
Achieve landfill diversion rate above 99%
year-on-year.
FY24 performance at 99.2% (FY23 – 99.5%).
Reduce construction site water usage (measured
in m
3.
of water per 1000 m
2
of completed homes)
against a base year of FY21 by July 2025.
FY24 saw construction water usage increased by
16.7% to 270.3 m
3
/1000 m
2
against the prior year
231.7m
3
/1000 m
2
, but was lower against the FY21
baseline of 301.8 m
3
/1000 m
2
of completed homes.
20% of homes commenced by July 2024 to be
intimber frame.
In FY24 12.1% of plots were completed in timber frame
(2023 – 11.4%). This target has been extended to FY30.
Undertake three plot studies on waste generation
and identify opportunities to reduce in FY24.
In 2024, our Graduate business project saw three
plot studies in the North London, Essex and North
West divisions.
Develop a longer-term action plan to reduce
waste at all stages of our developments, full life
cycle to include earthworks, demolition materials,
embodied waste in materials we buy, packaging
waste and construction waste on-site by July 2026.
In 2024, our Graduate business project reviewed
Green Construction Board’s Zero Avoidable Waste
Roadmap to select the most relevant actions for a
long-term action plan.
Resource Efficiency
Reducing waste by building better
As a sector, it is estimated that the construction
industry is responsible for 60% of the UK’s total
waste, with an estimated 60 million tonnes of
construction and demolition around waste
produced each year. However, with a long-term
target of ‘zero avoidable waste’ in construction
by 2050, we continue to drive improvement
in performance.
Continued improvements in waste reduction
Our headline target under the Resource Efficiency business
priority is a 20% reduction in construction waste per
completed unit, aiming to hit a Group average of 7.1 tonnes
per unit by 2025. We are pleased to report that FY24 saw a
final figure of 7.1 tonnes per unit, hitting our target 12 months
early. We can attribute this improvement in performance to
an ongoing education campaign, engagement with divisional
site teams, and the continued roll-out of waste broker
Ecoefficiency across the Group.
Through our Waste and Resources Group, we will continue
to drive progress in FY25, with the development of a long-
term waste plan, linked to the Zero Avoidable Waste in
Construction Roadmap, waste champions identified across all
divisions, and continued close monitoring of progress against
our targets. Our landfill diversion rate was above 99% again,
at99.2% (2023 – 99.5%).
Alongside our internal processes, we continue to work with
our supply chain partners and Community Wood Recycling
(CWR), a network of social enterprises that collects and reuses
waste wood. This year our CWR partnership rescued 410
tonnes of wood from the waste stream (FY23 – 785 tonnes).
We also continue to understand work with our supply chain
partners to address waste in the industry. We have targeted
packaging and have asked suppliers to investigate reusable
alternatives to single-use packaging as well as ensuring
where plastic packaging is unavoidable, they use a minimum
of 30% recycled content.
Reducing our water consumption
Water is an essential part of the construction process, it is
used on our sites by ‘wet trades’ and in dust suppression
and concrete washout activities, and also in our supply chain
with cementitious products consuming significant amounts
of water. Through ‘Better with Bellway’ we are looking at
ways we can reduce water usage, both on our sites and for
our customers.
As a recognition of the importance of being more water
efficient we continue to review and improve the designs of
our homes to improve water efficiency. Under the ‘Better
with Bellway’ strategy we set a target to reduce construction
site water usage measured in m
3
of water per 1000 m
2
of
completed home, against an FY21 baseline of 301.8m
3
by
2025. In FY24 we saw an increase of 16.7% to 270.3 m
3
(2023
– 231.7m
3
}, compared to the previous year, but this was lower
than the FY21 baseline of 301.8 m
3
.
Strategic Report
55Bellway p.l.c. Annual Report and Accounts 2024
The 2024 sustainability project with
Adrian and Simon was very interesting.
As a group we learnt a lot about the
circular economy and also gained
an understanding of the long-term
ambitions for the sector. We’re confident
that with the right engagement on-site,
we will be able to reach ‘zero avoidable
waste’ by 2050, or earlier.”
Carl Hyslop
Technical Graduate, Bellway North West division
Drone photo of our Clifford Gardens development in Skipton.
Incorporating timber frame
As a responsible builder, we recognise the embodied carbon
benefits of timber frame construction and its ability to reduce
reliance on traditional brick and block methods, leading
to material savings. Consequently, we have continued to
incorporate timber frame into our developments, delivering
925 homes using this method across various divisions in
FY24. This brings the total number of timber frame units since
FY21 to 3,797.
Under our ‘Better with Bellway’ initiative, we set a target to
complete 20% of our homes using timber frame by 2024.
The current proportion for FY24 is 12.1%. We have extended
this target to build a third of our homes in timber frame by
FY30 as we continue to expand the use of timber frame in
our projects.
Future KPIs
Build a third of our homes in timber frame by FY30.
Work with divisions to promote a site-based league table
tracking waste per completed unit on a monthly basis,
recommending an incentive scheme for best performance
each month.
Identify a ‘waste champion’ in each division working in
aconstruction role.
Increase awareness of the link between lost and damaged
items and overall waste figures.
Graduate Project –plotstudies
To achieve our target of carrying out three ‘plot studies’
assessing waste produced at different stages of build, we
worked on a project with a team of Graduates from our
2022 intake. The Graduates documented and weighed
waste produced during construction of three plots in our
Essex, North London and North West Divisions. The team also
reviewed the ‘Zero Avoidable Waste’ roadmap, to select the
actions most appropriate for our long-term plan. Results were
written up in a comprehensive report, and presented to a
panel of Bellway Group senior management in June 2024.
‘Better with Bellway’ Strategy and Priorities continued
Strategic Report
56 Bellway p.l.c. Annual Report and Accounts 2024
Target Progress Performance
Headline
Achieve 10% Biodiversity Net Gain (‘BNG’) on all new
sites submitted for planning from 1 July 2023 onwards.
This target will be continued in the form of our Bellway
BNG+ commitment.
From July 2023 all new Bellway homes
planning submissions have identified how they
will achieve the 10% Biodiversity net gain target.
Establish a partnership arrangement with a nature
organisation in FY23.
Target was rolled into FY24.
This target was due to complete in FY23, but in
2024 we signed a partnership agreement with
nature charity ‘Plantlife’.
Work with an appropriate conservation partner to ensure
that the mowing regimes implemented on all new
Bellway developments are designed to be beneficial to
invertebrates during the summer growing period.
A Management Guide was produced showing
best practice for our Management Companies.
This will be reviewed and implemented in the
coming year.
Work with our conservation partner to support each new
Bellway customer in creating a ‘space for nature’ in the
gardens of their new homes.
In partnership with Plantlife we have created
Space for Nature information packs.
Create a new community woodland to benefit both
communities and biodiversity as part of every new
Bellwayplanning application.
We have identified five locations across the
UK which will support the new community
woodland initiative.
Investigate additional tree planting for each home sold
byJuly 2024.
This initiative is to be delivered through the
Community Woodlands.
Investigate the potential to utilise existing Bellway land
to deliver a range of secondary ‘stacked’ eco-system
services to benefit the environment and complement
our broader sustainability and biodiversity aims in 2024.
This will include renewable energy, nutrient mitigation
andbiodiversity net gains delivery.
We have completed a review of existing
Bellway owned land. This has concluded that
the land has limited realistic potential to deliver
renewable energy projects, but could be used
to host biodiversity habitat improvement in
support of future housing projects.
Biodiversity
Restoring and protecting nature
At Bellway we are working to ensure we can
leave our developments in a measurably better
state once a development is completed. We aim
to avoid, minimise and where necessary mitigate
the impact our operations have on nature,
through a range of initiatives.
Biodiversity approach
The preceding 12 months have been a period of significant
change for the development sector and the way it interacts
with Biodiversity. Biodiversity is an overarching term used to
describe the ‘
variety of all life on earth
’ or a particular location
or habitat. High levels of biodiversity are essential to the
prosperity of all life, including the human population, and the
vital natural systems which support it.
The most significant change to occur during this period is the
requirement for most new developments, including residential
housing, to deliver a measurable Biodiversity Net Gain (BNG).
This gain, in order to comply with the statutory process,
must be an improvement of at least 10% when the pre-
development and post-construction habitats are compared.
Bellway has embraced the arrival of BNG positively, but also
recognises the potential challenges presented by such an
ambitious new requirement and has therefore invested a
significant amount of time and resource into understand
the potential impacts and opportunities it represents.
This investment has focused on three key activities:
1 – Critical risk appraisal and assessment of potential impacts
from BNG upon the business.
2 – Staff awareness, engagement and delivery training.
3 – Key stakeholder engagement and relationship building
with prospective BNG delivery partners.
This approach has been driven by our Group Head of
Biodiversity, who was appointed to the business in 2022, and
in May 2024 was recognised as one of the most influential
environmental professionals in the ENDS Report Power List
2024. This was in recognition of his strategic work in preparing
Bellway and the wider housing sector for the arrival of
mandatory BNG.
The strategic approach aims to build on the biodiversity
benefits already delivered by Bellway. For example, in FY24
Sustainable urban Drainage Systems (‘SuDS’) have been
implemented on 246 of our developments (2023 – 253),
mimicking natural drainage processes to reduce flooding and
pollution whilst also providing habitats for wildlife. In addition,
154 developments included a biodiversity plan (2023 – 146)
and we planted 9,665 trees (2023 – 15,023).
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57Bellway p.l.c. Annual Report and Accounts 2024
Bellway Homes –
Westhoughton development
– BNG delivery
Bellway Homes recently received planning permission to
develop a new housing scheme in Bolton. The scheme, to be
built over several phases, will eventually deliver in the region
of 300 new homes.
With landscape impact being a key consideration, our
approach to BNG played a key role in delivering a design
which both complimented sensitive local landscape and
provided measurable gains in biodiversity.
Bellway’s urban design team worked with our consultants
to identify key existing important landscape features such
as mature trees, ponds and hedgerows and then sought to
identified ways to retain and integrate them into the wider
landscaping scheme.
This approach allowed Bellway to deliver gains of between
11% and 41% for habitats across the phases, and between 20%
and 40% gains for hedgerows. Key lessons learnt:
• BNG should not be viewed as a standalone constraint,
rather part of an integrated planning solution.
• Retention of existing valuable habitats should be prioritised.
• BNG can integrate with the requirements of other
ecological constraints such as protected species.
Our Regency Manor Development in Wynyard.
Bellway BNG + promise
In line with BNG statutory framework, Bellway aims to
deliver, where practicable, all required BNG within our
development boundaries. However, in doing so it is important
to reflect upon the fact that the greenspace surrounding
our developments not only delivers biodiversity but must
also provide functional greenspace to serve the new
communities we create. Therefore, onsite delivery must be
a balance between the need to create biodiversity gains,
with functioning recreational greenspace space required by
our residents.
Recreational pressure, the negative effects of a changing
climate and a range of other unexpected events all have
the potential to lead to adverse effects upon our biodiversity
gain space. If these effects are significant, and lead to the
degradation of the habitats created then the 10% minimum
delivery target could be missed. To resist this and ensure our
BNG delivery is resilient, for FY25 Bellway will aim to deliver
more than the minimum 10% gain on all new developments.
This approach will form the basis of our new headline
biodiversity performance indicator known as the ‘
Bellway
BNG+ promise
’.
Ecosystem resilience
The global climate is widely acknowledged to be in a state of
change, moving away from traditional patterns and becoming
more unpredictable. BNG is delivered for a minimum period
of 30 years, therefore it is highly probable that a changing
climate will influence the success of the habitats we create
within our landscaping areas. To address this, Bellway must
ensure that the landscape schemes we create, which are the
primary means of delivering BNG on-site, not only deliver the
required 10% gain now but will also continue to do so into
the future.
To address this, Bellway has in FY24 commenced an
internal review of the ‘Ecosystem resilience’ delivered by
our landscaping. With support from a range of industry
experts, this work will be continued into FY25 with the aim of
establishing a pilot study to look at how best to build eco-
system resilience into our new developments. This pilot will
consider a range of factors such as onsite soil management
and the suitability of our planting schemes.
Offsite BNG delivery options
In situations where onsite BNG is not sufficient to meet the
meet the minimum 10% BNG target, a hybrid option should
be devised which combines both onsite and offsite BNG
delivery. Following a review completed in FY24, Bellway
has identified a range of offsite BNG delivery options within
its existing freehold land. These options provide flexibility in
situations where suitable open-market BNG offsite units are
not currently available and allows Bellway to commercially
establish its own strategic BNG habitat banks in advantageous
locations. This option will be developed further through FY25
and will ensure that BNG can always be delivered.
Partnership working
Our goal is to provide resources and support to equip our
customers and management companies with the knowledge
and guidance needed to ensure that all developments leave
biodiversity in a measurably better state upon completion.
To support this ambition, Bellway has partnered with the
conservation charity Plantlife this year.
‘Better with Bellway’ Strategy and Priorities continued
Biodiversity continued
Strategic Report
58 Bellway p.l.c. Annual Report and Accounts 2024
This partnership has already delivered a range of beneficial
resources to help meet our BNG obligations and broader
biodiversity goals, including:
1 – The creation of a BNG style guide to inform and support
the design of our onsite landscaping schemes to
maximise biodiversity.
2 – A show-home Garden design guide to maximise their
biodiversity value.
3 – Ecologically sensitive on-site mowing guidance.
In addition to these three key outputs, the Plantlife partnership
has also helped Bellway to move towards the delivery of two
further key biodiversity aims – the use of ‘Native species only’
planting schemes within our show home gardens and the
use of planting stock from ‘peat-free’ nurseries only.
Community woodlands
Five sites have been identified and submitted for planning
approval that will trial the creation of Bellway’s new
community woodland strategy. These woodlands will form
part of the site landscaping allocation, be populated with the
equivalent of one new tree per new plot and use only native
and locally suitable tree species.
Nutrient and water neutrality
Bellway’s exposure to the planning delays created in
some areas as a result of Nutrient and Water Neutrality
compliance is limited. Where solutions have been required,
Bellway has drawn upon a combination of expert support
from its consultant team, solutions secured via offsite credit
delivery partners and the benefits provided by Bellway’s
own innovative approach to water saving technologies now
standard on all new homes. Bellway will continue to work
with sector partners, local and central government to find
robust solutions to protecting sensitive sites while delivering
much needed sustainable housing development.
Helping our customers
As part of the drive to improve our sustainability offering
to customers, we have developed a green welcome pack.
New homeowners will receive a pack that includes a bird box,
bee bomb and garden trowel, along with advice on how they
can cultivate a nature friendly garden. The pack also contains
tea, coffee and biscuits, and families with children will have
the addition of a colouring story book, encouraging children
to understand how they can be more environmentally aware
in a fun way.
We have also incorporated hedgehog highways into our
new developments from 31 January 2023 and to date more
than 4,000 highways have been installed. Bellway will also
undertake to provide one new wildlife feature, such as a swift
brick or bat access tile on all new properties delivered from
September 2024.
Future KPIs
Deliver the Bellway BNG+ promise on all new sites secured.
Conduct a research project investigating the impact on soil
health from different soil storage strategies by July 2025.
Deliver one wildlife feature per house by July 2025.
Understand the implications of the Taskforce for Nature
Related Financial Disclosures (TNFD) and the steps we need
to take to comply by July 2025.
Street scene at our Ebbsfleet Cross development at Garden City.
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59Bellway p.l.c. Annual Report and Accounts 2024
Target Progress Performance
Headline
Raise £4m for Cancer Research UK by the end of
December 2024.
£612,722 raised and donated in FY24, bringing our total
to date to £3.76 million.
Promote volunteering within Bellway to benefit
local charities and good causes, donating 4,000
hours of employee time to charities/good causes
by July 2026.
496 volunteering hours logged in FY24.
Volunteering opportunities were arranged with Cancer
Research UK, Trussell Trust Food Banks and Cat &
Dog Shelter.
Establish at least one partnership with a charity
supporting disability/disadvantaged individuals with
a view of providing work placements by July 2024.
Five placements were organised in summer
2024 through the charity Leonard Cheshire’s
‘Change100’scheme.
Charitable Engagement
Giving, to build better lives
with a fundraising total as at 31 July 2024 of £612,722 (2023
– £580,048) raised and donated to CRUK. £147,927 has been
raised by employees (2023 – £140,295) with another £168,938
from subcontractors and suppliers (2023 – £157,084), Bellway’s
award winning double matching of employee fundraising
added a further £295,857 (2023 – £282,669). This brings our
eight-year total to £3.76 million.
Between April 2023 and April 2024, Bellway and Cancer
Research UK teamed up to carry out a workplace health
activity, which involved 13 nurse health stands carried out
by CRUK and a webinar aimed at spreading awareness of
spotting cancer early. A total of 245 employees engaged with
these activities which led to 29 of our employees signposted
to further health support services. It was reported that 100%
of the 16 people asked had a better understanding of ways to
improve their health and 67% felt better towards Bellway after
the cancer awareness activity.
In addition to our national charity partnership, we continue
to support a range of local charities, causes and community
groups in the communities where we develop, including
corporate donations and employees fundraising for causes
close to their hearts. Non-CRUK employee fundraising came
to £61,202 this year, with Bellway ‘matching’ employees’
fundraising efforts.
We are proud that across all charitable engagement in
financial year 2024, Bellway raised and donated a total of
£831,078 (2023 – £799,978), with employees, subcontractors
and suppliers raising £378,066 (2023 – £364,744).
£613k raised
forCRUK in FY24
£831k raised across
all fundraising activity
£3.76m raised
forCRUK since 2016
496 volunteering
hours donated in FY24
At Bellway we are dedicated to fostering strong
relationships with our communities and supporting
both local and national charities and initiatives.
Charitable engagement is a core part of the
Bellway ethos, and we take pride in our efforts to
date. As part of the ‘Better with Bellway’ strategy,
we are committed to expanding our support for
others by encouraging employees to participate
in fundraising and volunteering activities for local
charities and our national charity partner, Cancer
Research UK (CRUK).
Succeeding in our key partnerships
Bellway’s national charity partnership with Cancer
Research UK, began in 2016 and we recently extended our
partnership until the end of 2025. We are proud of how the
partnership continues to grow and at the start of 2024 set
an ambitious target of raising £4 million by the end of 2024,
the commitment and enthusiasm from employees across
the Group has remained high this year, and the Group
is well on the way to achieving the £4 million target by
31 December 2024.
In January 2024, we hosted our second National Charity Day
for Cancer Research UK, which saw employees from across
the Group come together to take part in a virtual quiz and free
prize draw, this event raised over £30,000 for CRUK including
double matching. This event saw engagement from all 21 of
our operating divisions and Head Office, and included both
our office staff and site-based staff which was a key objective
for the national charity day.
As well as our national events, we saw events organised on
a divisional level, including charity balls, golf days, cycling
challenges and hiking challenges. This year 15 of our
employees took part in the TCS London Marathon raising
£87,181 for CRUK.
As a result of the fundraising efforts from employees, suppliers
and subcontractors, this year we saw the highest annual
fundraising total since the start of the partnership in 2016,
‘Better with Bellway’ Strategy and Priorities continued
Charitable Engagement continued
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60 Bellway p.l.c. Annual Report and Accounts 2024
Volunteering Policy
We launched our employee Volunteering Policy on 1 July
2023, which allows our employees the opportunity to
participate in one volunteering day per year. During the year,
Bellway has been investigating the corporate volunteering
opportunities which are available to us and worked with
divisional charity coordinators to assist in promoting
volunteering opportunities at a divisional level.
Volunteering offers additional routes for employees’ personal
and professional development and enables Bellway to share
our skills and knowledge to help create better communities
where we live and work.
Cancer Research UK are also supporting our Volunteering
Policy by hosting volunteering stands at our divisional offices
to provide information on the opportunities available to them,
and improve engagement.
We have set a target to complete 4,000 hours of volunteering
by the end of 2026. During FY24, a total of 496 volunteering
hours were reported, including large group volunteering
from our Group, Scotland West, Manchester and East
Midlands offices.
We will continue to promote volunteering opportunities
across the Group, and aim to incorporate volunteering
into our future ‘National Charity’ events to support our
national partner and other local communities initiatives and
charitable causes.
Establishing new partnerships
This year we established three new partnerships with charities
supporting disability or disadvantaged individuals with a view
of providing work placements. We are currently hosting five
summer internships for graduates with disabilities as part of
the Change 100 initiative. The Leonard Cheshire’s flagship
programme aims to kickstart the careers of ambitious disabled
university students and graduates, and provide support
through the graduate assessment process.
The Percy Hedley Foundation, a local disability charity based
in Newcastle upon Tyne, that supports people with complex
learning difficulties, disabilities, and additional communication
needs, recently attended our Group Head Office to undertake
an accessibility audit. They have made some useful
recommendations for us to follow to ensure that we are
able to host future work placements for a broad spectrum of
disabled individuals. Members of the HR teams supported by
hosting an employability session at one of their campuses to
help with CV writing and interview tips. We also sponsored a
vocational award for students of Percy Hedley at their annual
ceremony in July.
Future KPIs
Extend the CRUK partnership for a further year and
increasethe fundraising/donation total to £5 million
byendDecember 2025.
Offer ten new placements per year with disability charity,
Leonard Cheshire until July 2027.
Group Legal, Land and Co Sec team fundraising for CRUK with support of our panel solicitors.
Colleagues from our South West completing three peak challenge.
Strategic Report
61Bellway p.l.c. Annual Report and Accounts 2024
Section 172 statement
The Board of Directors confirm that during the year under review, it has acted to promote the long-term success of the
Company for the benefit of the members as a whole, whilst having due regard to the matters set out in Section 172(1)(a)
to(f)ofthe Companies Act 2006, being:
(a) the likely consequences of any decision in the long-term,
(b) the interests of the Group’s employees,
(c) the need to foster the Group’s business relationships with suppliers, customers and others,
(d) the impact of the Group’s operations on the community and the environment,
(e) the desirability of the Group maintaining a reputation for high standards of business conduct, and
(f) the need to act fairly between members of the Group.
The following page compromises the Group’s Section 172 Statement and how the Board has fulfilled its duties to have
regardstothe above and where to find further information regarding each factor in this report.
Board report Strategic planning and direction of culture
The Board receives detailed reports and in-person updates
from senior management, which they query, challenge, and
debate, to ensure conflicting views are carefully considered.
Updates on the progress and decision implementation are
also provided, to allow the Board to review and alter where
appropriate, as situations (and stakeholder priorities) evolve.
The Board is responsible for setting the strategic direction,
values and culture of the Company. It sets the tone of how
business is done throughout Bellway and has embedded
expectations that stakeholder considerations are important
to decision-making at all levels of the organisation.
Further information can be found in Our Strategy (pages 16
to17), Our Business Model (pages 18 to 21) and within the
‘Better with Bellway’ section (pages 34 to 61).
Diverse set of skills, knowledge, and experience Board discussion
The Board has a wide range of experience and expertise,
which is vital to making informed decisions and promoting
the success of the Company in the long term, whilst
considering the likely consequences of any decision and
theneeds of stakeholders.
Further details on pages 106 to 107 in the Board of Directors
and Company Secretary section, and in the Nomination
Committee Report on pages 116 to 117.
All Directors are expected to contribute, engage, and
constructively challenge discussions, while also offering
adiffering perspective.
Further information can be found in the Division of
Responsibilities and Board Evaluation sections on pages 111
to114 and page 115 respectively.
S.172 factor Further information can be found
(a) The likely consequences of any decision in the
long-term.
• Our Business Model – Pages 16 to 21.
• ‘Better with Bellway’ – Pages 34 to 61.
• Key Stakeholder Relationships – Pages 63 to 78.
• Chair’s Statement – Pages 104 to 105.
• Principal Risks – Pages 83 to 87.
(b) The interests of the Group’s employees. • ‘Better with Bellway’ – Pages 34 to 61.
• Key Stakeholder Relationships – Pages 63 to 78.
• Nomination Committee Report – Pages 116 to 117.
(c) The need to foster the Group’s business relationships
withsuppliers, customers and others.
• ‘Better with Bellway’ – Pages 34 to 61.
• Key Stakeholder Relationships – Pages 63 to 78.
• Our Business Model – Pages 16 to 21.
(d) The impact of the Group’s operations on the community
and the environment.
• ‘Better with Bellway’ – Pages 34 to 61.
• Key Stakeholder Relationships – Pages 63 to 78.
• Our Business Model – Pages 16 to 21.
• Sustainability Committee – Page 153.
• TCFD – Pages 88 to 95.
(e) The desirability of the Group maintaining a reputation
forhigh standards of business conduct.
• Our Business Model – Pages 16 to 21.
• Who We Are – Pages 6 to 7.
• ‘Better with Bellway’ – Pages 34 to 61.
• Our Strategy – Pages 16 to 17.
• Risk Management – Pages 79 to 82.
• Audit Committee Report – Pages 118 to 129.
(f) The need to act fairly between members of the Group. • Key Stakeholder Relationships – Pages 63 to 78.
• Our Strategy – Pages 16 to 17.
• Remuneration Report – Pages 130 to 152.
How our Directors fulfil their Section 172 duty under the Companies Act 2006
Strategic Report
62 Bellway p.l.c. Annual Report and Accounts 2024
Key Stakeholder Relationships
Engaging with our stakeholders
Our key stakeholders play a vital role in the development and implementation of ‘Better with Bellway’, with all key
stakeholders being engaged both directly and indirectly as a result including:
Customers
See pages 63 to 66.
Employees
See pages 67 to 69.
Investors, Analysts and Advisors
See pages 70 to 71.
Partners and Supply Chain
See pages 72 to 73.
Local Communities and the Environment
See pages 74 to 75.
Government and Regulators
See pages 76 to 78.
‘Better with Bellway’
Our ‘Better with Bellway’ sustainability strategy (detailed on pages 35 to 61) is an integral part of our overall business approach,
addressing the interests of our key stakeholders by putting people and the planet first. This strategy was developed with input
from essential business functions and has received substantial engagement and oversight from the Board throughout its
creation, approval, and implementation.
Consequently, the Board has been actively involved in the ongoing execution of this strategy throughout the financial year,
approving and supporting key activities under this initiative.
During this period, we proactively engaged with key stakeholders to ensure they understand our strategy and to demonstrate
how Bellway’s commitment to sustainability is integrated into our daily business operations.
Stakeholder engagement
Engaging with stakeholders is crucial for our business as it informs Board decision-making and ensures the impacts on key
stakeholders are considered. These decisions can affect stakeholders collectively or individually, so we must account for the
varying outcomes across all stakeholder groups.
Customer
Why we engage
We place our customers at the heart of our business, they have key interactions with our brands at the buying, construction,
completion and post-completion stages of their journey. The changing consumer landscape marked by continued uncertain
consumer confidence, higher lending rates and changes in the political landscape makes it important to consider our
customers in our decision-making. By understanding the challenges they face, we can adapt our product offerings to better
meet their needs.
Issues raised as a result of engagement
• Customer service.
• Digital adoption.
• Build quality.
• Sustainability and energy efficiency of homes.
• Innovation.
• Legacy building safety improvements.
Customers service and digital adoption
Customers and Communities – See pages 39 to 40.
Our strong reputation for excellence in customer service along with our dedication to high build quality, ensures that
customers are prioritised at every stage of our buying and construction process. Our goal is to provide customers with
clear guidance and support to ensure they feel confident and well-informed. We have a range of initiatives to ensure the
continuous improvement of our customer service and digital adoption including:
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63Bellway p.l.c. Annual Report and Accounts 2024
Key Stakeholder Relationships continued
How we engage Engagement outcomes
Our digital channels
To improve the experience of potential
customers by providing detailed information
about our houses and apartments, and
additional insights into the customer journey
and what to expect before visiting our
sales offices.
To inform customers of new technologies they
will find in their new homes, as we move away
from fossil fuels within the homes we build.
Our use of digital channels to help our customers has been beneficial
during a period where energy bills have been high. Through our channels,
using government data through the HBF, we are able to demonstrate the
energy efficiency of our homes.
Following the rise in mortgage rates, we have also been able to utilise our
digital marketing capability by highlighting promotional campaigns offering
incentives on selected plots, which helped our customers during the
completion process.
Social media channels and website content
Using uplifting posts and customer case
studies. This engagement is especially valuable
during the period between reservation and
completion, allowing us to provide helpful
content as customers prepare to move into their
new home.
We are able to positive engage with customers who have moved into
their new homes and provide relevant content for homebuyers who are
completing the home purchase journey, by providing them with relevant
content and materials.
Face-to-face approach
Our dedicated and experienced sales teams are
available to assist our customers in navigating
the sales process and support them throughout
their journey.
This is a key part of our customer journey for all Bellway and
Ashberry customers.
Digital sales office and customer web portal
Ensures that we can provide the benefits of
both traditional customer service and new
technologies throughout the process.
‘Your Bellway’, our online customer portal
designed to keep customers fully informed
of the sales and build progress of their home.
We continue to enhance this portal and this
year we launched ‘Your Ashberry’ to provide
the same experience to customers of our
Ashberry brand.
Our digital adoption strategy continued at pace during the year, with ‘Your
Bellway’ being rolled out across every division, and all new developments
being added to our digital sales platform. In addition, we launched
‘Your Ashberry’, which offers Ashberry customers access to the same
digital platform.
We have introduced Digital Sales Offices on all new developments, which
contain digital touchscreens containing information relating to each
individual plot, including detailed floor plans, and a street-level tour of a
development. Customers can use QR codes to download personalised
sales brochures, helping reduce the need for paperwork in our offices.
Customer Care teams
Post-completion, our dedicated Customer
Care teams assume responsibility for any post
completion issues that may occur as part of our
initial two-year warranty.
Our Customer Care, and site teams, are utilising technologies to improve the
after-care process for our customers with all of our site teams now accessing
post-completion issues using tablets where they can record and evidence
customer care activity in our customers’ homes.
Encouraging feedback
Throughout the sales process via Trustpilot and
HBF Customer Satisfaction surveys. The Board
places significant emphasis on this feedback,
regularly reviewing eight-week and nine-month
post-completion HBF scores.
For the eighth year running, Bellway was recognised as a five-star
5
homebuilder in the Home Builders Federation (‘HBF’) annual awards, this is
independently decided by our customers, and achieved by having more
than 9 out of 10 of customers stating they would recommend us to a friend.
The New Homes Quality Code (‘NHQC’) launched by The New Homes Quality Board (‘NHQB’).
To enhances protections for customers buying
new build we have continued to successfully
adopt the Code with complemented existing
controls we already had in place, and further
enhancements have been made to our
processes to ensure we adhere to this.
Our Customer Care teams monitor our controls to ensure we adhere to the
Code and where complaints are escalated to NHQB, we ensure that any
areas of non-compliance are addressed. This is reported to the Board.
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64 Bellway p.l.c. Annual Report and Accounts 2024
Build quality
Building Quality Homes, Safely – See pages 49 to 52.
At Bellway, we are dedicated to continuously improving our build quality, and the appointment of our new Group
Construction Director during the year has enabled us to push several initiatives such as:
How we engage Engagement outcomes
Customer First
Continues to enhance the customer journey
and has seen the roll-out of some key initiatives
designed to help customers understand
our product and meet the teams who are
responsible for delivery of their new home.
Our Meet the Builder and Customer Pre-Plaster visits continue to be a
popular addition to the customer experience, with these meetings helping
customers develop a better understanding of the complexities in building
their home.
House-to-Home
A new initiative incorporated into our
developments across the Group, giving
customers a unique opportunity to
understand the different stages of build,
toimprove understanding.
Across the UK, 77 House-to-Homes have been plotted in FY24. These plots
offer customers the opportunity to view the first, second, and final fix stage
and are usually located alongside our show homes, giving our customers
complete transparency on the build process.
This also supports our post-completion after-care activities as customers
can be educated on how to best manage and run their homes once they
move in.
New guides and frameworks
The launch of new guides and frameworks for
our Sales, Construction and Customer Care
teams, including the ‘Build Right’ framework
ensures that process improvements are
constantly reviewed and implemented for the
benefit of our customers.
Using feedback and Customer Care data, we are able to ensure that our
‘Build Right’ framework is effective in delivering quality homes.
Sustainability, innovation and energy efficient homes
Carbon Reduction – See pages 45 to 48.
How we engage Engagement outcomes
‘Better with Bellway’ sustainability strategy Future Home project at Energy House 2.0
Provides customers with valuable insights on
how to live sustainably in their new home and
how we are reducing the impact we have on
the planet.
We have built a home in a climate chamber at
the University of Salford, which is providing us
with a unique data-led approach to educating
our customers.
This enables us to offer guidance to our
customers on how to live efficiently in
our homes.
We also have real-world exemplar projects
throughout the UK, where we are building
Future Home Standard homes, ahead of the
regulations, to help build our understanding,
educate construction colleagues and customers
as we transition away from fossil fuels as the main
source of energy for our homes.
Our ‘Better with Bellway’ sustainability strategy continues to provide us with
opportunities to engage our customers on sustainability. The shift to Interim
Future Home Standards for Building Regulations, has allowed us to engage
customers on sustainability issues.
We are able to take learnings from our live sustainability projects, including
The Future Home at Energy House 2.0, to educate customers on some
of the new technologies that exist in our homes and this remains a key
focus as we move to 2025 Future Home Standards, which will see the
phase-out of gas completely. All-electric homes require a different way of
living, and Bellway is using its expertise in helping our customers adapt to
these changes.
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Key Stakeholder Relationships continued
Legacy building safety improvements
Carbon Reduction – See pages 45 to 48.
How we engage Engagement outcomes
Building Safety division
A recently established division, with a team
of dedicated and specialist employees, in
response to changing building safety legislation
post-Grenfell, which continues to engage with
customers living in legacy Bellway apartments
where historical issues have been identified.
The division allows us to manage legacy building safety improvement
projects using our team of experts, in line with our commitment under
theSelf Remediation Terms (‘SRT’).
Communication
We maintain communication with leaseholders
and residents through dedicated websites,
resident portals, regular updates, and
direct interactions with Resident Liaison
Officers or Managing Agents during active
remediation efforts.
We are able to manage any risks and ensure our activity is communicated
effectively to residents living in active building safety project sites.
Board level engagement
The Board places significant emphasis on the importance
of the HBF Customer Satisfaction survey scores, regularly
reviewing eight-week and nine-month post-completion
scores. Improving our nine-month scores has been a key
focus of our Customer First programme, which is a key part
of our overall ‘Better with Bellway’ strategy.
Impact on Board decision-making
The Board is fully committed to improving quality and
customer service scores, actively supporting all customer
facing initiatives, including our Customer First programme,
digital transformation projects, and other key Customer
Care enhancements aimed at enhancing the overall
customer experience.
Paul Smits welcomed MK City Council leader
CouncillorPeteMarland to Whitehouse Park.
West Midlands division on International Women’s Day.
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66 Bellway p.l.c. Annual Report and Accounts 2024
Employees
Why we engage
Being an Employer of Choice is a key part of our ‘Better with Bellway’ engagement strategy. Our ambition is to create a safe,
diverse, and inclusive environment where our colleagues are recognised, can be their true selves, and be supported in their
development and success. We engage with our employees because they are pivotal to the success of the business.
Issues raised as a result of engagement
• Internal communications.
• Training and development.
• Career progression.
• Health, safety and wellbeing.
• Diversity and inclusion.
• Succession planning.
Internal communications
Employer of Choice – See pages 42 to 43.
How we engage Engagement outcomes
Employee engagement survey
We conduct an annual Employee Engagement
Survey, which this year ran in June 2024, and
provides an opportunity for employees from all
areas of the business to share their feedback on
various topics. This includes their experience
working for Bellway, areas for business
enhancements, and their views on management
and the overall leadership of the organisation.
The latest Employee Engagement Survey undertaken in June 2024
received a strong 76% (2023 – 69%) response rate.
During the past year, improvements identified from the 2023 Employee
Engagement Survey have been implemented with full support of the Board.
Using the data obtained from the survey, we established that the most
engaged employees were those who had regular conversations with their
line managers about their roles and their career ambitions. As a result, in
May 2024, we launched Mi Experience, our new continuous performance
enablement process. This process, using a dedicated digital platform, is
designed to nurture and support our employees’ growth and development.
By encouraging employees and their line managers to engage in regular
conversations about their roles, it is designed to encourage conversations
about their development, wellbeing and the role they play in contributing
tothe success of the business, not just day-to-day activities.
Regular updates
A 12-month Communications Transformation
Programme is underway to enhance internal
communications within the organisation.
This initiative has led to the launch of ‘Pathway’,
a new Employee Engagement App and Desktop
Intranet, aimed at improving communication
with employees. The programme is designed
to transition from an email-only approach to a
multi-channel strategy, with a focus on reaching
employees who work on-site or remotely.
How we communicate with our employees, particularly those who are
based on site or in sales offices has always been a challenge as we relied
on one-way email communications for most announcements. Our internal
communications transformation programme has created a new Employee
Engagement App and Desktop Intranet, which allows us to communicate
through a multi-channel platform and foster a culture of two-way
communication with our employees. Our new App was launched in May
2024 and already 82% have registered – this is ahead of the benchmark for
other organisations in the sector who have utilised the same software.
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67Bellway p.l.c. Annual Report and Accounts 2024
Key Stakeholder Relationships continued
Internal communications continued
Employer of Choice – See pages 42 to 43.
How we engage Engagement outcomes
Employee Listening Groups
These are run on a quarterly basis, and chaired
by employees from within the business, and
are used to obtain feedback from colleagues
on a variety of topics. We use this feedback
from employees, alongside the results of our
engagement survey, to set our strategy and
targets for our Employer of Choice activity.
We also take the opportunity to highlight any
changes as a result of employee feedback to
foster a culture of improvement, with employees
feeling empowered to feedback knowing that
improvements or action will be taken as a result.
Our Employee Listening Groups, alongside our Employee Engagement
Survey have helped shape our employee strategy.
Regular attendance from our Non-Executive Directors at the Employee
Listening Groups ensures Board level involvement in addressing feedback
from these groups.
Training, development and career progression
Employer of Choice – See pages 42 to 43.
How we engage Engagement outcomes
Mi Experience
We have also recently launched our new
continuous performance enablement process,
Mi Experience, to promote ongoing feedback
and dialogue between employees and their
managers. This has been implemented in
response to our 2023 Employee Engagement
Survey. We have also enhanced our training
and development programmes, as investing
in our people is paramount to the success
of Bellway.
To support our colleagues in customer facing roles, we have reviewed
and updated Sales Manager and Sales Advisor training, and following an
initial pilot this will be rolled out from September 2024. We have also been
working with our Customer Care teams, who are pivotal in maintaining our
customer experience scores post completion, and we have plans to roll out
role-specific training.
Our commitment to mental health awareness, a key target of our Employer
of Choice strategy, has resulted in mental health awareness training being
mandatory for all people managers. As of 31 July 2024, 387 employees,
representing 14.6% of our workforce, have completed mental health
awareness training (with a target set of 20% by December 2024). Additionally,
we have recruited and trained 238 mental health first aid advocates,
which constitutes 9.0% of our workforce, aiming for a target set of 10% by
December 2024. Of these advocates, 59.7% are based on-site and 40.3%
areoffice-based.
Our emphasis on early careers remains strong, with 22 graduates joining
our Graduate Programme in 2024, filling roles across various departments.
Additionally, our Apprenticeship Programme recruited 41 new apprentices
this year.
Middle managers training programme
Our development programme ‘Elevate’ for
senior leaders and middle managers.
We have expanded Elevate, our award-winning middle managers
training programme, and have additionally launched a new senior leader
development programme designed for Directors and Heads of department
to build leadership capability across the business.
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68 Bellway p.l.c. Annual Report and Accounts 2024
A drone picture of Bellway’s Rolleston Manor Development in Rolleston on Dove.
Diversity and inclusion
Employer of Choice – See pages 42 to 43.
How we engage Engagement outcomes
Women into Construction
We have also been working with Women
into Construction (‘WiC’), the not-for-profit
organisation to encourage more women into
construction-based roles.
We have introduced ambitious targets to specifically increase the number of
females in site-based roles. Each of our 20 trading divisions will be offering
a placement as part of the 2024-25 programme, to employ a female in a
permanent role as a Trainee Assistant Site Manager across all our divisions.
Balance Network
Our dedicated colleague diversity and inclusion
network consists of representatives from
across the business and meets regularly to
promote diversity and inclusion initiatives across
the business.
The Balance Network focuses on, understanding opportunities, barriers or
challenges to drive more diversity into site-based roles as this is the area
of greatest imbalance. Creating menopause guidance for employees and
managers, and improving awareness and support for employees with
breast or prostate cancer.
Leonard Cheshire Change 100 Programme
In 2023 we began our partnership with
Leonard Cheshire’s Change 100 programme
which aims to assist university students
and recent graduates with disabilities or
long-term conditions in gaining valuable
workplace experience.
This year the placement led to the employment of one individual on a
full-time basis and we have again worked with Leonard Cheshire to offer
five placements within our business.
Board level engagement
The Board has been actively involved in the development
and ongoing discussions about becoming an Employer
of Choice, supporting our senior management teams
in delivering this key priority. As part of our ‘Better with
Bellway’ reporting activities, key target achievements and
ongoing strategic priorities are reported and discussed at
Board level, ensuring support for key projects that align with
our objectives. Our Chief Executive and Executive Board
members regularly visit our divisions and conduct site visits
to meet with colleagues and observe our operations first
hand. Non-Executive Directors attend Listening Groups
each year to better understand our colleagues’ concerns,
with outcomes discussed at Board level. Additionally, each
Non-Executive Director visits a division separately for a day
and joins the Board on more formal divisional and site visits.
Impact on Board decision-making
As Employer of Choice remains a flagship business
priority, the Board has dedicated significant time to
analysing the results of our Employee Engagement
Survey and continuous feedback from Listening Groups.
Throughout the year, our Group HR Director has presented
key initiatives related to this strategy to the Board, which has
provided ongoing scrutiny and support. The results of our
June 2024 Employee Engagement Survey were presented
to the Board in September. These findings are now guiding
the development of additional initiatives based on feedback
from our colleagues.
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69Bellway p.l.c. Annual Report and Accounts 2024
Key Stakeholder Relationships continued
Investors, Analysts and Advisors
Why we engage
As a FTSE 250 publicly listed company, we have a duty to provide our equity and debt investors with fair, transparent, and
balanced information regarding our business performance and strategy. This commitment ensures ongoing confidence and
trust in our company, enabling investors to make well-informed decisions.
Issues raised as a result of engagement
• Environment, social and governance (‘ESG’).
• CMA Market Investigation.
• Corporate acquisition opportunities.
• Remuneration policies.
• Market conditions e.g. mortgage market, supply and
laboursupply chain, impact of economic uncertainty,
affordability, and land market.
Environment, social and governance (‘ESG’)
‘Better with Bellway’ – See pages 34 to 61.
How we engage Engagement outcomes
‘Better with Bellway’ strategy
Created additional opportunities to engage with
investors on the eight business priorities, which
focus on people and the planet. This strategy
includes ambitious targets to significantly reduce
carbon emissions, and our communications
have helped investors better understand the
evolving landscape of the housebuilding
industry as we adapt our products and
business practices.
Our proactive communication regarding our ‘Better with Bellway’ strategy
has resulted in positive engagement with investors, analysts, and advisors.
This has provided them with a deeper understanding of our business
priorities, challenges, and opportunities as we work towards the targets and
KPIs of the ‘Better with Bellway’ strategy, which is closely aligned with our
core operations.
• Capital allocation and dividend policy.
• Customer care and build quality.
• Building safety Self-Remediation Terms.
• Future Homes Standard.
• Diversity and inclusion.
• Carbon reduction strategy.
• Impact of government policies on housebuilding.
Remuneration Policies
How we engage Engagement outcomes
Major shareholders
The Remuneration Committee Chair engaged
with major shareholders on the proposed
Remuneration Policy and implementation of the
Policy for the 2025 financial year.
Major shareholders are broadly supportive of the proposed changes.
For more information please see pages 130 to 132.
Building safety Self Remediation Terms
Building Quality Homes, Safely – See pages 49 to 52.
How we engage Engagement outcomes
We have also provided regular updates on
the remediation of legacy developments
related to building safety, as part of our UK-
wide commitment under the Self-Remediation
Terms (‘SRT’) agreed with The Ministry for
Housing, Communities and Local Government
(‘MHCLG’), the Welsh Developers’ Pact with
the Welsh Government and the Scottish Safer
Buildings Accord.
This allow us to demonstrate our prudent approach to building safety to
demonstrate to investors how we are executing this strategy.
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Communicating with shareholders
How we engage Engagement outcomes
Financial calendar activities
We engage with investors around our Interim
and Preliminary results announcements, as well
as through regular trading updates throughout
the financial year.
Engagement around our Interim and Preliminary results and trading
updates enables us to effectively communicate our strategy to investors and
analysts, helping to maintain Bellway’s reputation for strong management.
We leverage shareholder feedback from these announcements to shape
our positioning for future communications, ensuring we meet the needs
and expectations of our investors.
Executive Management Team
Regularly convenes and communicates with
major shareholders and analysts, including
at formal presentations at least twice a year.
This ensures that investors receive timely
updates on our progress and provides an
opportunity to share feedback.
This enables us to effectively communicate our strategy to investors and
analysts, helping to maintain Bellway’s reputation for strong management.
We leverage shareholder feedback from these announcements to shape
our positioning for future communications, ensuring we meet the needs
and expectations of our investors.
Media Channels
In addition to regular financial announcements,
we utilise traditional media channels to
inform a broader audience about our key
business performance messages. We also
engage with our colleagues through internal
communications to inform them of key
announcements, as many are shareholders in
the business.
The appointment of new corporate communications advisors has helped
Bellway to engage with a wider audience and enhance communications
with our colleagues. We have leveraged the positive messaging from our
‘Better with Bellway’ strategy, including the positive progress on carbon
reduction and employee engagement strategy and other activities, which
position Bellway strongly among its peers.
Board level engagement
The Board and Executive Management team have
engaged with key investors, analysts and advisors
throughout the financial calendar with meetings
and updates around our Interim and Preliminary
announcements, and trading updates. Ad hoc engagement
with certain key analysts and investors has taken place
throughout the year. The Board also undertook a review
of our external corporate communications advisors with a
view to providing an increased engagement programme
with our investors, the media and political stakeholders.
The appointment of new corporate communications
advisers came into effect from 1 August 2023.
Impact on Board decision-making
The Board carefully considers the impact of its decision
making on shareholders and the wider investment
community. Our ‘Better with Bellway’ sustainability
strategy has been a key tool in proactively engaging with
our investors, with their feedback being used to inform
and shape.
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71Bellway p.l.c. Annual Report and Accounts 2024
Key Stakeholder Relationships continued
Partners and Supply Chain
Why we engage
As a national homebuilder, the relationships we have with our partners is extremely important. Our strong long-term sustainable
relationships with our partnership , which have served us well, particularly during times when we need to be able to call upon
those relationships, due to supply chain issues, inflationary pressures and the move towards net zero. Our ‘Better with Bellway’
strategy relies on our key partners, to help us deliver our goals, particularly when it comes to embodied carbon in the supply
chain, and waste reduction.
Our collaborative approach helps both our company, our customers and our partners in delivering more sustainable products
at the scale we need as a volume housebuilder.
Issues raised as a result of engagement
• Supply chain issues as housing demand increases.
• Skills shortage.
• Health and safety.
• Land and planning.
• Sustainability.
• Availability of specialists for remediation of buildings.
Sustainability
Carbon Reduction – See pages 45 to 48.
How we engage Engagement outcomes
Future Home project at the University of Salford
We have closely collaborated with partners to
introduce and evaluate new technologies in
our homes. This initiative not only showcases
the effectiveness of these innovations, but also
emphasises our commitment to advancing
sustainable practices alongside our partners.
We have closely collaborated with partners to introduce and evaluate
new technologies in our homes. This initiative not only showcases the
effectiveness or otherwise of these innovations, but also underscores our
commitment to advancing sustainable practices alongside our partners.
Such partnerships are instrumental in driving meaningful progress towards
our sustainability goals, while delivering innovative solutions to benefit
both our business and the environment. The initial testing results within this
project are also enabling us to make decisions on the key design elements
and technologies suitable for Future Home Standard houses. This data is
also being shared with industry partners, who benefit from our research and
development investment.
Carbon and waste reduction
Our ambitious Carbon Reduction targets as part
of our ‘Better with Bellway’ sustainability strategy
necessitate working closely with our partners to
decrease embodied carbon within our supply
chain and we are meeting regularly with them to
discuss sustainability.
Working closely with our key partners on embodied carbon in the supply
chain, and reducing waste. Our involvement extends to our partnership
with the Supply Chain Sustainability School (‘SCSS’) where we have set
an ambitious target for 85% of our key 100 suppliers to reach Gold level
membership with the School – the highest level achievable.
We have exceeded that target as 89% of our key 100 suppliers are Gold
level members. To this end, Bellway received an award for Supply Chain
Engagement from the school, which was presented to us at the Net Zero
Summit held in September 2023.
Through our sustainability strategy, we have experienced positive
engagement from several key suppliers who have embraced and integrated
our plans into their own sustainability strategies. This collaborative effort has
yielded favourable outcomes, as our partners have adjusted their practices
to align with our sustainability goals.
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Health and safety
Building Quality Homes, Safely – See pages 49 to 52.
How we engage Engagement outcomes
Continuous monitoring
We maintain continuous monitoring of health
and safety across our sites, collaborating closely
with our partners to ensure subcontractors and
suppliers receive the necessary education and
information. This proactive approach is aimed
at maintaining consistent RIDDOR (Reporting of
Injuries, Diseases and Dangerous Occurrences
Regulations) levels, thereby prioritising the safety
and wellbeing of all individuals involved in
our operations.
Our RIDDOR score for FY24 was 170.99 against a target of 210.74.
Board level engagement
The Board maintains active oversight of partners and the
supply chain receiving regular updates and reports on
these matters. Our Commercial and Technical teams ensure
ongoing communication with the Board regarding key
partner issues, with Board approval sought for significant
decisions. The progress of our ‘Better with Bellway’ targets
across all eight business priority areas is regularly reported
to the Board. These updates include detailed assessments
and recommendations, ensuring alignment with corporate
strategies and receiving Board approval as necessary.
Our building safety remediation projects are subject to
Board oversight and key decisions require Board approval.
Impact on Board decision-making
Given the critical role of partnerships in our business
success, the Board carefully evaluates the impact of
decisions on our partners. The effectiveness of our ‘Better
with Bellway’ sustainability strategy hinges on the co-
operation and support of our partners, emphasising the
importance of collaborative efforts in achieving our shared
goals. This strategic approach ensures that decisions are
made with consideration for the mutual benefits and
outcomes of all stakeholders involved.
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73Bellway p.l.c. Annual Report and Accounts 2024
Key Stakeholder Relationships continued
Local Communities and the Environment
Why we engage
Bellway’s commitment to local communities extends beyond the construction of desirable developments in areas with housing
needs. We actively foster relationships with local suppliers and subcontractors, contributing to job creation and investing in local
infrastructure. Our community outreach activity involves local schools, charitable organisations and other key local stakeholder
groups. Through these efforts, we consistently engage with, and contribute to the broader communities where we operate,
striving to make a positive impact beyond our housing developments.
Issues raised as a result of engagement
• Affordability and the supply of housing.
• Planning and community engagement.
• Biodiversity.
• Home efficiency and sustainability.
• Environmental issues.
• Impact on existing communities and infrastructure.
• Charitable and community giving.
Planning and community engagement
Customers and Communities – See pages 39 to 40.
How we engage Engagement outcomes
Planning process
We actively participate in public
consultations and engage with
the local community. Our research
into local areas helps us identify
housing requirements, allowing us
to create desirable developments
that complement the area and meet
the needs of the local population.
We use feedback from local
engagement to adjust our plans
as necessary.
Our engagement provides feedback, which is used to develop schemes that meet
local needs and ensure we are delivering quality homes in keeping with local
community requirements.
Section 106 (England and Wales), Section 75 (Scotland), Community Infrastructure Levies and affording
housing contributions
We invest significant resources
into the communities where we
develop. Local authorities use these
investments to deliver infrastructure
improvements, designed to mitigate
the impact of additional housing on
local services.
This results in significant funds being allocated to improve or build schools, healthcare
facilities, roads, recreational facilities, and other services that benefit the wider
community. Our developments also lead to job creation and provide contracts for local
subcontractors, many of whom have long-term relationships with us. This, in turn, fosters
additional investment from the supply chain involved in building our homes.
Of the 7,654 housing completions this year, 24.8% (down from 25.4% in 2023) were
sold to affordable housing providers, supplying much-needed affordable homes to
communities throughout the UK. We sold 26.5% (down from 28.3% in 2023) of our
homes to first-time buyers. The increase in housing provision benefits local communities
by freeing up homes in the second-hand market and increasing overall supply,
particularly in areas with housing shortages.
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Charitable and community giving
Charitable Engagement – See pages 60 to 61.
How we engage Engagement outcomes
National and local charities
We maintain relationships with national and
local charities and community organisations.
We also conduct school outreach projects
in the areas where we operate, where our
divisional teams visit schools and deliver
programmes designed to encourage careers
in construction. These engagements benefit
the organisations by providing financial
donations and using our employees’ expertise
for tasks that the organisations are unable to
perform themselves.
We directly involve local communities and
charity organisations in our development
plans, especially where there is a historical
connection to the land. Our ‘Better with
Bellway’ sustainability strategy further supports
community engagement in sustainable
activities. Our plans for biodiversity net gain on
some sites will also involve local communities.
Our national charity partnership with Cancer
Research UK, now in its eighth year, enables
us to engage in charitable activities at both
national and local levels.
Our fundraising efforts with our national charity partner, Cancer Research
UK, have resulted in us reaching our target of raising £3 million by the end
of 2023, ahead of schedule thanks to the incredible fundraising efforts of
our colleagues, suppliers, and subcontractors. At the end of FY24, a total of
£3.76 million has been raised for CRUK, with a target to reach £4 million by the
end of the calendar year.
Across the Group, our divisions have also raised an additional £61,202 for other,
national, regional, and local charities through various fundraising activities.
This is in addition to the benefits in kind we donate through staff time and the
donation of goods and services.
Volunteering
Employees are granted one day of
volunteering leave each year to support
charitable causes. This initiative encourages
our staff to engage with, and positively
contribute to, the communities in which
we operate, further reinforcing our
commitment to social responsibility and
community betterment.
All Bellway employees are granted one day of volunteering leave annually
to support charitable purposes and during the year, a total of 496 hours of
cumulative volunteering time was donated by our employees.
Schools engagement
We run school outreach projects in
areas where we operate, which involve
our divisional teams going into schools
and delivering programmes designed to
encourage careers in construction.
Our schools engagement programme, launched in September 2022, designed
to promote housebuilding as a career option for school leavers, has engaged
664 secondary schools, and we have access to 492,386 students (male –
49.8%, female – 50.2%).
Board level engagement
The Board supports our engagement with local
communities and our environmental initiatives, recognising
them as integral components of our business strategy
under ‘Better with Bellway’. This strategy has received full
approval from the Board, underscoring our commitment to
making a positive impact beyond our core operations.
Impact on Board decision-making
Community feedback on planned developments plays a
crucial role in our Board’s decision-making process when
assessing the feasibility of a project before proceeding.
This input helps us gauge community sentiment and
ensure that our developments align with local needs and
expectations. Our community engagement and charitable
fundraising initiatives are integral to our ‘Better with
Bellway’ sustainability targets. These efforts are regularly
reported to the Board, influencing decisions on future
strategies and directions. By incorporating this data into
our decision-making, we ensure that our actions are not
only aligned with our sustainability goals but also reflect our
commitment to go beyond just building new homes in the
communities we serve.
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75Bellway p.l.c. Annual Report and Accounts 2024
Key Stakeholder Relationships continued
Government, Regulators and Industry Bodies
Why we engage
Bellway is apolitical, has no political affiliations and does not make any political donations, but we do have regular interactions
with government departments, opposition parties and regulators as they are responsible for setting the regulatory and legal
framework in which we operate. In addition, local government plays a vital role in our activities as the planning system and
other regional policies have a direct impact on our business activities. We also work with industry bodies, such as the House
Builders Federation (‘HBF’) in dealing with issues facing the wider sector.
Issues raised as a result of engagement
• Building safety and the industry voluntary pledge to
remediate buildings in England, the Pact in Wales and
the Accord in Scotland.
• Competition and Markets Authority investigation into
suspected anti-competitive conduct by housebuilders.
• Local planning issues.
• Sustainability and environment.
• Future Home Standards Building Regulations.
• Health and safety.
• Access to housing.
• Acceleration of housing supply.
Local planning issues
Customers and Communities – See pages 39 to 40.
How we engage Engagement outcomes
Government policies
Government policies at central, devolved,
and local levels in England, Scotland, and
Wales significantly influence our business
operations. Policies related to planning and local
infrastructure investment directly impact supply in
the UK housing market, and we need to engage
directly with policy makers to achieve this.
To advance our developments, we collaborate
with local authorities and other relevant bodies
to ensure our planned developments meet local
housing needs. We adjust our plans to reflect
the specific requirements of the communities in
which we build, aiming to create desirable places
to live.
Our centralised communication with MPs and key stakeholders ensures that
we effectively address concerns at both the government and constituent
levels. Issues raised by local MPs are managed centrally to ensure a
consistent business response. Regular reporting of this engagement
occurs at the Board level to maintain transparency regarding our political
stakeholder interactions.
The Board conducted a review of our corporate advisors. This ensures that
our political engagement aligns effectively with the stature and needs of
our company.
Investment in communities
In addition to building new communities,
wecontribute to local infrastructure initiatives
through Section 106 (England and Wales),
Section75 (Scotland), and Community
Infrastructure Levy (‘CIL’) contributions.
These funds support essential infrastructure
projects, such as road improvements, new
schools, healthcare facilities, and other vital
projects, such as creating new sporting facilities
that meet local needs.
This approach not only supports the growth and
development of communities, but also enhances
the overall infrastructure and services available
to residents.
This results in significant funds being allocated to improve or build schools,
healthcare facilities, roads, recreational facilities, and other services that
benefit the wider community.
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76 Bellway p.l.c. Annual Report and Accounts 2024
Sustainability and environment
Carbon Reduction – See pages 45 to 48.
How we engage Engagement outcomes
Future Home exemplar project
As part of our ‘Better with Bellway’ sustainability
strategy, we also use our expertise gained from
our Future Homes exemplar projects around
the UK to contribute to industry consultations
regarding the phasing out of fossil fuels and
the strategies for achieving this transition within
the sector.
We are able to demonstrate our commitment to our ‘Better with Bellway’
sustainability strategy and provide important insight into our work towards
delivering low-carbon homes at scale, working with key government and
sector bodies. We have shared our findings in the recent Future Home
Standard consultation.
Access to housing
Customer and Communities – See pages 39 to 40.
How we engage Engagement outcomes
Homes England
Bellway works closely with Homes England,
the government’s housing accelerator body,
toaddress housing needs across the UK.
As a result of ongoing engagement, Bellway is able to deliver some of
Homes England’s delivery projects across England.
The New Homes Quality Code
The industry standard practice for all registered
builders ensures that customers who reserve a
new home benefit from the protections offered
by the New Home Quality Code and the New
Homes Ombudsman Service. We work closely
with the New Homes Quality Board and the
Ombudsman Service in responding to any cases
referred to them by our customers.
Our Customer Care teams monitor our controls to ensure we adhere to the
Code and where complaints are escalated to NHQB, we ensure that any
areas of non-compliance are addressed. This is reported to the Board.
UK Competition and Market Authority
How we engage Engagement outcomes
UK Competition and Market Authority
The UK Competition and Markets Authority
(‘CMA’) investigation on suspected anti-
competitive conduct by some housebuilders has
become a significant focus for our Board. We are
actively involved in discussions and responses
related to this study.
The Group has actively participated in the Competition and Markets
Authority (CMA) study of the sector, and the subsequent ongoing
investigation into suspected anti-competitive conduct by housebuilders.
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77Bellway p.l.c. Annual Report and Accounts 2024
Building safety
Building Quality Homes, Safely – See pages 49 to 52.
How we engage Engagement outcomes
Proactive response
A proactive response has led to ongoing
engagement with the Ministry of Housing,
Communities and Local Government (‘MHCLG’),
both directly and through our participation
in the HBF. Similar engagements have been
replicated in Scotland and Wales, focusing on
building safety issues within their respective
frameworks. We meet regularly with officials from
MHCLG to discuss remediation activities, share
project data, and ensure that we are fulfilling our
obligations completely.
Following extensive Board involvement, the Group finalised the signing
of the Self-Remediation Terms in March 2023. These terms operationalise
the principles initially outlined in the Building Safety Pledge signed with
the government in April 2022, converting them into a binding agreement
between Bellway and the government.
In October 2022, we committed to the Developers’ Pact with the
Welsh Government, mirroring the principles of the Pledge in England.
This commitment focuses on remediating buildings over 11 meters in height
with critical fire safety issues, underscoring our consistent and responsible
approach to building safety across the UK. Discussions with the Scottish
Government regarding a similar Accord are ongoing.
We regularly meet key stakeholders as part of these commitments
and provide regular updates to the government departments who
are responsible for delivery of these agreements. We also use these
relationships to help resolve some of the issues being faced by all
builders who have agreed remediation, for example, where a freeholder
or managing agent is delaying our ability to begin remediation projects
through protracted legal negotiated to gain access to buildings we have no
legal responsibility for.
Board level engagement
The Board has been fully engaged in key issues facing the
housebuilding sector, which has been driven by political
uncertainty and the recent change in government leading
to changes in policies relating to the sector. Given the
macroeconomic impact of policy on the housebuilding
sector, this has been an important focus for the Board this
year. The UK Competition and Markets Authority (‘CMA’)
investigation into suspected anti-competitive conduct by
housebuilders, launched in February 2024, has received
full Board attention as the business has fully complied with
requests from the regulator.
Impact on Board decision-making
The political nature of housing strategy naturally impacts
the housebuilding sector. As a result, government policy
and economic changes have a direct effect on our
business. The recent changes in UK Government and the
positive move towards reintroducing housebuilding targets
means the Board must fully consider the implications of any
changes in government policy, and the opportunities and
threats that may arise as a result.
Key Stakeholder Relationships continued
Strategic Report
78 Bellway p.l.c. Annual Report and Accounts 2024
Risk Management
Risk management framework
Our established framework for managing risks has continued to be in place across the business
throughout this financial year, with responsibility to implement the Board’s policies on risk
managementand internal control sitting with management.
Our risk management objectives continue to be:
• Assessing emerging and principal risks against an agreed appetite for risk, which is regularly reviewed.
• Improving the balance of risk and return through developing and maintaining a proactive, risk-aware culture.
• Ensuring there is a consistent approach for the identification, assessment, control, monitoring, follow-up and reporting of risks.
• Developing and implementing action plans to ensure that risks are mitigated where required, within our agreed risk appetite
and that improvements are made to our control environment.
• Ensuring the approach to risk management meets the needs of the business, senior management and all key stakeholders.
Risk management roles and responsibilities
In all businesses, responsibility for managing risk sits with every employee. In undertaking their roles, employees are assisting in
identifying, assessing and managing risks. Specific roles and responsibilities, as defined in our risk management framework and
corresponding Policy, are set out in the diagram below:
Identify
all business
areas
Risk management process
Evaluate
severity of
risks
Treat
to bring within
risk appetite
Action
mitigate risks
(where needed)
Report
monitor risks
and report
progress
of mitigation
Key
Reports to Directs and monitors
The Board
• Overall responsibility for risk management.
• Review, challenge and approve the risk
management framework and corresponding
Policy, processes and annual risk plan.
• Review and agree risk appetite.
• Conduct a robust assessment of the emerging
and principal risks facing the Group.
• Review and challenge risk reports.
Audit Committee
• Oversee the risk management framework, Policy
and processes.
• Review routine risk reports and utilise risk
information to review and approve assurance
plans and priorities.
• Provide assurance over risk management to
the Board.
• Monitor the progress of risk mitigating actions
and recommendations.
Executive Management
• Review, challenge and approve the risk
management framework and corresponding
Policy and processes.
• Review and challenge risk information against
stated business objectives.
• Approve risk treatments and actions.
• Approve risk reports for the Board.
• Review and agree risk appetite.
Group Risk Director
• Design and implement the risk management
framework and corresponding Policy
and processes.
• Facilitate and implement the risk management
framework, Policy and processes.
• Undertake risk management activities and
produce reports in accordance with Risk
Management Policy.
Strategic Report
79Bellway p.l.c. Annual Report and Accounts 2024
Risk Management continued
Risk management process
A risk register is maintained detailing all potential risks and
our risk management processes ensure that all aspects of the
Group are considered, from strategy through to operational
execution, which includes any specialist business areas.
The risk register is reviewed as part of our management
reporting processes, resulting in the regular assessment of
risk, severity and any required mitigating actions. The severity
of risk is determined based on a defined scoring system
assessing risk impact and likelihood.
A summary of risks is reported to management, the
Audit Committee and the Board, which is mainly, but not
exclusively, comprised of risks considered to be outside
of our risk appetite after mitigation. This summary is
reviewed throughout the year, with the Board systematically
considering the risks and any changes that have occurred.
Once a year, via the Audit Committee, the Board determines
whether the risk management framework is appropriately
designed and operating effectively. The Directors confirm
thatthey have conducted a robust assessment of the
principal risks facing the Group.
More information on risk management and internal controls
is included within the Audit Committee Report on pages 118
to 129.
Financial risk management
The Group’s financial instruments comprise cash, fixed
rate sterling USPP notes and various items such as trade
receivables and trade payables that arise directly from
its operations.
The main objective of the Group’s Policy towards financial
instruments is to maximise returns on the Group’s cash
balances, manage the Group’s working capital requirements,
and finance the Group’s ongoing operations.
Capital management
The Board’s Policy is to maintain a strong capital base to
underpin the future development of the business in order
to deliver value to shareholders. The Group finances its
operations through reinvested profits, bank facilities, fixed rate
sterling USPP notes, cash in hand and the management of
working capital.
The dividend is determined following careful consideration
of capital requirements, as well as the Group’s operational
capability to deliver further long-term volume growth. If the
final dividend is approved, the total dividend will be covered
by total underlying earnings by 2.5 times
(2,3)
(2023 – 2.3 times).
Management of financial risk
The main risks associated with the Group’s financial
instruments held during the year have been identified as
credit risk, liquidity risk, interest rate risk and housing market
risk. The Board is responsible for managing these risks and the
policies adopted, which have remained unchanged during
the year and are set out below.
Credit risk
The Group’s exposure to credit risk is largely mitigated as the
vast majority of the Group’s sales are made on completion
of a legal contract, at which point monies are received
in exchange for transfer of legal title. There is no specific
concentration of credit risk in respect of home sales as the
exposure is spread over a number of customers.
In respect of trade and other receivables, the amounts
presented in the balance sheet are measured at amortised
cost less a loss allowance for expected credit losses, which are
assessed on the basis of an average weighting of the risk of
default (see note 8 to the accounts). For this purpose, a default
is determined to have occurred if the Group becomes aware
of evidence that it will not receive all contractual cash flows
that are due. The Group had £47.7 million (2023 – £38.6 million)
of financial assets relating to loans made by Bellway to equity
accounted joint arrangements (note 12). The counterparties to
these loans are expected to make a profit and, therefore, repay
the loans in full. The Group, therefore, considers the risk of
default to be minimal.
No credit limits were exceeded during the reporting period, or
subsequently, and the Group does not anticipate any losses
from non-performance by these counterparties.
The Board considers the Group’s exposure to credit risk to be
acceptable and normal for an entity of its size, in the industry
in which it operates.
Liquidity risk
The Group finances its operations through a mixture of
equity (comprising share capital, reserves and reinvested
profit) and debt (comprising bank, borrowings and fixed-rate
sterling USPP notes). The Group manages its liquidity risk by
monitoring existing facilities and cash flows against forecast
requirements based on a three-year rolling cash forecast.
The Group’s Treasury Policy has, as its principal objective,
the maintenance of flexible debt facilities in order to meet
anticipated borrowing requirements. The Group’s banking
arrangements outlined in note 17 to the accounts are
considered to be adequate in terms of flexibility and liquidity
for its medium-term cash flow needs. Relationships with
banks, fixed-rate sterling USPP noteholders and overall
cash management are co-ordinated centrally. The Group is
operating well within its financial covenants and available
debt facilities.
Short-term cash surpluses are placed on deposit at
competitive rates with high-quality counterparties. Other than
those disclosed, there are no financial instruments or
derivative contracts. The Board, therefore, considers the
Group’s liquidity risk to be mitigated.
In relation to land payables, certain payables are secured
onthe respective land asset held (see note 9 to the accounts).
No other security is held against any other financial assets of
the Group.
Strategic Report
80 Bellway p.l.c. Annual Report and Accounts 2024
Interest rate risk
Interest rate risk reflects the Group’s exposure to fluctuations
in interest rates. The risk arises because the Group’s overdraft
and floating rate bank loans, fully undrawn at year-end, bear
interest based on SONIA.
The Group’s attitude to interest rate risk and forecast debt is
influenced by the existing and forecast conditions prevailing
at the time that each new interest-bearing instrument is
entered into. This will determine, amongst other things, the
term and whether a fixed or floating interest rate is obtained.
During the year ended 31 July 2024, it is estimated that an
increase of 1% in interest rates applying to the full year would
have decreased the Group’s profit before taxation by
£0.5 million (2023 – £1.9 million increase to profit).
Housing market risk
The Group is affected by movements in UK house prices.
These in turn are affected by factors such as credit availability,
employment levels, interest rates, consumer confidence and
supply of land with planning.
While it is not possible for the Group to fully mitigate housing
market risk on a national macroeconomic basis, the Group
does continually monitor its geographical spread within
the UK, seeking to balance investment in areas offering
the best immediate returns with a long-term spread of its
operations throughout the UK to minimise the effect of local
microeconomic fluctuations.
Going concern statement
After conducting a full review, the Directors have a reasonable
expectation that the Group has adequate resources to fund its
operations for at least the period to 31 July 2026, aligning with
the first year-end after the minimum 12-month assessment
period. For this reason, they continue to adopt the going
concern basis in preparing the financial statements as
discussed further on pages 177 to 178.
Viability statement
In accordance with provision 31 of the UK Corporate
Governance Code, the Directors have assessed the viability
of the Group over the period to 31 July 2028, which is longer
than required by the going concern assumption. This period
is consistent with the Group’s detailed bottom-up forecasts,
which assess future profitability, cash flows and the land bank,
and are overlayed with prudent Group-level assumptions.
Factors considered in assessing the long-term viability
In assessing the Group’s forecasts and long-term viability,
thefollowing factors are considered:
Factor Consideration
Group’s latest
performance
This considers the trading
performance in both the year ended
31 July 2024 and in the first nine weeks
of the new financial year including any
changes to selling prices. In addition,
any relevant external factors that may
affect Bellway, such as any changes to
government policies, regulations and
mortgages, were considered.
Group’s current
financial position
This considers the latest net cash/debt
held by the Group and the expiry date
of existing debt financing. Furthermore,
consideration is given to the land and
work-in-progress held on the balance
sheet at 31 July 2024.
Group’s strategy Whether the base forecast is consistent
with the Group’s strategy, both
financial and non-financial.
Principal and
emerging risks
Whether the principal and emerging
risks associated with achieving the
Group’s strategy, particularly those
that would have a significant effect on
Bellway’s ability to meet its liabilities
over the period of the viability
assessment, are incorporated.
A street-scene from our The Vickers development in Witchford.
Strategic Report
81Bellway p.l.c. Annual Report and Accounts 2024
Group forecast methodology
The Group’s bottom-up forecasts are updated on at least a
monthly basis by the 20 trading divisions and are subject to
review by the divisional management team, Regional Chairs
and Group management.
The forecasts consider the profitability, cash flows, debt
covenants, land bank and other financial and non-financial
metrics over the period. These forecasts also incorporate
anticipated costs arising from adopting the Future Homes
Standard, which is linked to the environment and climate
change risk. The viability assessment has not been materially
affected by climate change considerations.
The main assumptions used in preparing the forecasts are:
• The number, timing and selling price of legal completions.
• Production volumes and the associated build costs.
• The quantity and timing of land spend.
• The quantity and timing of spend following the signing of
the Self-Remediation Terms.
• Working capital requirements.
• Dividend payments.
• Corporation tax and residential property developer tax.
Viability assessment
The viability assessment is based on the Group’s current
position and the potential effect of the principal risks facing
the Group, which are summarised on pages 83 to 87.
The principal risk that has been identified as the most severe
and plausible scenario is:
Factor Consideration
External environment:
Including housing demand,
mortgage availability and
Government Housing Policy.
A reduction in private
completions and private ASP
due to a decline in demand.
The most severe but plausible downside scenario is a severe
recession. It includes the following principal assumptions:
• Private completions in H1 FY25 are supported by the
forward order book. In the 12 months to 31 January 2026,
private completions reduce by around 50% compared
to the 12 month pre-stress peak achieved in FY22.
This is followed by a gradual recovery based on the lower
base position.
• Private average selling price in H1 FY25 remains in line with
internal forecasts due to the order book position. In the
12-months to 31 January 2026, the private average selling
price reduces by 10% compared to the latest achieved
pricing. This is followed by a gradual recovery based on the
lower base position.
• These assumptions reflect the Group’s experience in the
2008–09 Global Financial Crisis.
A number of prudent mitigating actions within the Directors’
control were incorporated into the plausible but severe
downside scenario, including:
• Plots in the land bank only being replaced at the same rate
that they are utilised.
• Construction spend reducing in line with housing revenue.
• Dividends reducing in line with earnings.
The sensitivity analysis was modelled over the period to
31 July 2026 for the going concern assessment, but extended
to the 31 July 2028 for the Directors’ viability assessment.
In addition to the above, several additional mitigating
measures remain available to management that were
not included in the scenario. These include withholding
discretionary land spend and instead trading out of the
substantial existing land holdings.
The output of this review considered the profitability, cash
flows and funding requirements of the Group over the period
to 31 July 2028. The assessment included an assumption
that existing debt facilities remained in place, but, very
conservatively, were not renewed at the end of their term.
In the most severe but plausible scenario, the Group had
significant headroom in both its financial debt covenants
and existing debt facilities and met its liabilities as they fall
due. Based on the results of this review, the Directors have
a reasonable expectation that the Group will be able to
continue in operation and meet its liabilities as they fall due
over the period to 31 July 2028.
Risk Management continued
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82 Bellway p.l.c. Annual Report and Accounts 2024
Principal Risks
The Board has completed its assessment of the Group’s emerging and principal risks. The following nine
principal risks to our business have been identified:
Construction resources
Shortages of building materials and appropriately skilled subcontractors at competitive prices.
Strategic relevance
• Failure to secure the required quantity and quality of
resources causes delays, impacting the ability
to deliver volume growth targets.
• Pricing pressures/increased costs impact returns.
KPIs
• Number of homes sold.
• Operating profit.
• Operating margin.
• EPS.
• Gross margin.
• Customer satisfaction score.
Mitigation
• Robust forecasting and forward planning of labour and
materials requirements.
• Processes are in place to select, appoint, manage,
and build long-term relationships with subcontractors
and suppliers.
Climate change and the environment
Failure to evolve sustainable business practices and operations in response to climate change, including physical
environmental impacts and transition risks associated with new regulation, reporting requirements, and increased social/
market expectations.
Strategic relevance
• There is an increased focus on the actions taken by
businesses in response to climate change and the
disclosures made. Failure to improve policies, reporting
and performance in line with new government regulations
and heightened social/market expectations could lead to
financial penalties and reputational damage.
• The physical impacts of climate change (such as extreme
weather) could lead to disruptions within the supply chain
and build programmes.
KPIs
• Tonnes of carbon emissions per legal completion.
• Percentage of renewable electricity.
• Tonnes of waste per home built.
• Percentage of waste diverted from landfill.
Mitigation
• Continual monitoring of new and evolving requirements
as part of our legal and regulatory compliance framework,
including TCFD, the Future Homes Standard and the
Environment Act.
• Climate change and Carbon Reduction is a key
priority under the Group’s ‘Better with Bellway’
sustainability strategy.
• Dedicated sustainability innovations and biodiversity
resources in place to assess risks relating to climate
change, monitor performance and drive improvement.
• Consultation with specialist external advisers and subject
matter experts (e.g. sustainability consultants).
• Regular review of the design and features of new homes,
along with construction methods and the sustainability of
materials, to increase energy efficiency and reduce waste.
• Investment in energy-saving measures for offices and sites,
including transition to REGO certified electricity.
• Development and monitoring of science-based Carbon
Reduction targets.
Strategic Report
83Bellway p.l.c. Annual Report and Accounts 2024
Principal Risks continued
Economy and market
Changes in the external environment (including, but not limited to, house price inflation, interest rates, mortgage
availability, unemployment, Government Housing Policy and post-Brexit trade agreements) reduce the affordability
ofnew homes.
Strategic relevance
• Reduced affordability has a negative impact on customer demand for new homes and consequently our ability
togenerate sales at good returns.
KPIs
• Number of homes sold.
• Operating profit.
• Operating margin.
• RoCE.
• EPS.
• Gross margin.
• Customer Satisfaction score.
• Reservation rate.
• Order book value.
Mitigation
• Board-level monitoring of the housing market and
economic environment alongside key business metrics,
leading to development of action plans as necessary.
• Disciplined operating framework, strong balance sheet
and low financial gearing.
• Product range and pricing strategy based on Regional
market conditions.
• Regular engagement with industry peers, representative
bodies, and new build mortgage lenders.
• Use of sales incentives such as part-exchange, and
Government-backed schemes to encourage the
selling process.
• Quarterly site valuations and monthly budget reviews
based on latest market data.
Health and safety
A serious health and safety breach and/or incident occurs.
Strategic relevance
• Failure to maintain safe working conditions would impact
employee wellbeing and the creation of a positive
working environment.
• Injury to an individual while at one of our business
locations could delay construction and result in criminal
prosecution, civil litigation, and reputational damage.
KPIs
• Number of RIDDOR seven-day reportable incidents per
100,000 site operatives.
• Health and safety incident rate.
• Number of NHBC Pride in the Job Awards.
Mitigation
• Health and Safety Policy and procedures in place,
supported by Group-wide training.
• Regular visits to sites by both our Group Health and Safety
function (independent of divisions) and external specialist
consultants to monitor standards and performance against
health and safety policies and legislation.
• The Board considers health and safety matters at
each meeting.
Strategic Report
84 Bellway p.l.c. Annual Report and Accounts 2024
Human resources
Inability to attract, recruit and retain high-quality people.
Strategic relevance
• Failure to attract and retain people with appropriate skills would affect our ability to perform and deliver our strategy and
volume growth targets.
KPIs
• Employee turnover.
• Number of graduates, trainees, and apprentices.
• Employees who have worked for the Group for ten years
or more.
• Training days per employee.
• Senior management gender split.
• Percentage of staff in earn and learn roles.
• Employee Engagement Survey response rate.
Mitigation
• Continued development of our Group HR function and
implementation of our people strategy.
• Established human resources programme for apprentices,
graduates, and site management.
• Monitoring of staff turnover, absence data and feedback
from exit interviews.
• Competitive salary and benefits packages, which are
regularly reviewed and benchmarked.
• Employee engagement activities undertaken, including an
annual survey, with results communicated to the Board.
• Succession plans in place and key person dependencies
identified and mitigated.
• Robust programme of training provided to employees,
which is regularly updated and refreshed.
• Development programmes for senior leaders and middle
managers in place.
IT and security
Failure to have suitable IT systems in place that are appropriately supported and secured.
Strategic relevance
• Poor performance of our systems would disrupt
operational activity and impact the delivery of our strategy.
• An IT security breach could result in the loss of data, with
significant potential fines and reputational damage.
KPIs
• Operating profit.
• Operating margin.
• RoCE.
• EPS.
• Gross margin.
• Customer Satisfaction score.
Mitigation
• Continued investment in infrastructure and systems.
• Group-wide systems in operation, which are centrally
controlled by an in-house IT function, supported by a
specialist outsourced provider.
• IT Security Policy and procedures in place with regular
Group-wide training.
• Regular review and testing of our IT security measures,
contingency plans and policies.
• Security Committee in place.
Strategic Report
85Bellway p.l.c. Annual Report and Accounts 2024
Principal Risks continued
Land and planning
Inability to source suitable land at appropriate gross margins and return on capital employed.
Delays and complexity in the planning process.
Strategic relevance
• Insufficient land at appropriate margins, onerous planning conditions or a failure to obtain planning approval within
appropriate timescales would exacerbate the challenge of developing new homes, restrict our ability to deliver volume
growth targets and impact future returns.
KPIs
• Number of homes sold.
• Operating profit.
• Operating margin.
• RoCE.
• EPS.
• Gross margin.
• Number of plots in owned and controlled land bank
with DPP.
• Number of plots in ‘pipeline’.
• Number of plots in strategic land bank – positive
planning status.
• Number of plots in strategic land bank –
longer-term interests.
• Number of plots acquired with DPP.
• Number of plots converted from medium-term ‘pipeline’.
Mitigation
• Continued development of our Group Strategic Land
function and implementation of our land strategy.
• Increased investment in land and more sites with detailed
planning permission (‘DPP’).
• Regular review by both Group and divisions of the
quantity, location, and planning status of land against
growth targets to ensure our land bank supports
immediate, medium-term, and strategic requirements.
• Formal land acquisition process in place for the appraisal
and approval of all land purchases, including
pre-purchase due diligence and Group-level challenge
ofviability assumptions.
• Group and divisional planning specialists in
place to support the securing of implementable
planning permissions.
Legal and regulatory compliance
Failure to comply with legislation and regulatory requirements, including the Self Remediation Terms.
Strategic relevance
• Lack of an appropriate compliance framework and/or compliance breaches could incur fines, delay business operations
and lead to re-work across sites, which will impact our reputation and profitability.
KPIs
• Number of homes sold.
• Operating profit.
• Operating margin.
• RoCE.
• EPS.
• Gross margin.
Mitigation
• In-house expertise from Group functions such as
Company Secretariat, Legal, Health and Safety and
Technical /Design, who advise and support divisions on
legal compliance and regulatory matters.
• Consultation with government agencies, specialist
external legal advisers and subject matter experts, (e.g., fire
safety engineers).
• Strengthened Group-wide policies, guidance, and training
in place supported by externally facilitated whistleblowing
and reporting procedures.
• Continual monitoring and review of changes to legislation
and regulation, including government guidance, advice
notes and sector specific updates.
• Regular liaison with industry peers and the HBF on
compliance requirements and matters.
Strategic Report
86 Bellway p.l.c. Annual Report and Accounts 2024
Unforeseen significant event
An unforeseen significant national or global event occurs.
Strategic relevance
• The economic uncertainty brought about by an
unforeseen significant event could materially impact the
Group’s operations and liquidity.
• Damage to reputation if the Group is not perceived to be
following government guidelines and acting responsibly.
KPIs
• NAV.
• Operating profit.
• Operating margin.
• RoCE.
• EPS.
• Total dividend per ordinary share.
• Gross margin.
• Reservation rate.
• Order book value.
• Employee turnover.
Mitigation
• Strong balance sheet, low financial gearing, committed
bank loan facilities and USPP debt, which would help
ensure resilience during a recession.
• Maintenance of business resilience and continuity plans
covering offices, sites, and IT.
• Experienced and well-established senior
management team.
• Continued investment in systems and infrastructure to
enable robust agile working.
• Monitoring of government guidelines (including the
Construction Leadership Council).
• Regular communications with subcontractors and
suppliers to understand any potential issues as a result
ofthe event on their own business and supply chain.
The Group also considers any emerging risks that have the potential to impact the achievement of our strategy, but which
cannot yet be fully defined and assessed. These uncertainties are reviewed as part of our established risk management
framework, discussed regularly by management, the Audit Committee, and the Board of Directors, and elevated to principal
risks (either as new risks or an extension of existing risks) when warranted.
Strategic Report
87Bellway p.l.c. Annual Report and Accounts 2024
In meeting the requirements of Listing Rule 6.6.6R(5) and 6.6.6R(6), we have concluded that:
For FY24, we fully comply with recommended disclosures 1, 2, 3, 4, 6, 7, 8, 9, 10 and 11.
For FY24, we partially comply with recommended disclosure 5.
We are not complaint with the requirement to consider the financial impact of identified risks over the medium and long-term
time horizons, as we evolve our approach to TCFD, this will be addressed.
TCFD recommended disclosures Cross-reference or reason for non-compliance Next steps and further comments
Governance
1) Describe the Board’s oversight of
climate-related risks and opportunities.
2024 Annual Report – Governance
section (Pages 102 to 167)
Compliant
The Sustainability Committee will
continue to monitor progress of the
‘Better with Bellway’ strategy, which
incorporates climate-related risks
and opportunities.
2) Describe management’s role in
assessing and managing climate-
related risks and opportunities.
2024 Annual Report – Governance
section (Pages 102 to 167)
Compliant
The ‘Better with Bellway’ Leadership
Group meets quarterly to monitor KPIs,
targets and delivery of the ‘Better with
Bellway’ strategy.
Strategy
3) Describe the climate-related risks and
opportunities the organisation has
identified over the short, medium and
long term.
2024 Annual Report – Strategic report
section (Pages 8 to 101)
Compliant
In FY24 we updated our climate-related
risks and opportunities to identify the
most likely timeframe in which they
could materialise. We are committed
to continually improving our financial
quantification of risks and opportunities.
4) Describe the impact of climate-
related risks and opportunities on the
organisation’s businesses, strategy
and financial planning.
2024 Annual Report – Strategic report
section (Pages 8 to 101)
Compliant
We will continue to review our overall
strategy considering climate-related
issues.
5) Describe the resilience of the
organisation’s strategy, taking
into consideration different future
climate scenarios, including a 2°C or
lower scenario.
2024 Annual Report – Strategic report
section (Pages 8 to 101)
Partially Compliant – We have assessed
the resilience of our strategy to climate-
related risks.
The resilience of our overall
organisational strategy is reviewed
regularly, including the suitability of our
‘Better with Bellway’ strategy to respond
to climate-related risks and opportunities.
Risk management
6) Describe the organisation’s processes
for identifying and assessing climate-
related risks.
2024 Annual Report – Risk management
(Pages 79 to 82)
Compliant
We will continue to enhance our level
of awareness regarding our climate-
related risks and opportunities in line
with emerging regulatory requirements.
Climate change is included as a principal
risk (page 83).
7) Describe the organisation’s processes
for managing climate-related risks.
2024 Annual Report – ‘Better with
Bellway’ (Pages 34 to 61)
Compliant
Our processes for managing climate-
related risks are integrated within the
‘Better with Bellway’ strategy. Business
sponsors are risk-owners for climate
related issues identified in the strategy.
Sponsors meet with the ‘Better with
Bellway’ Steering Group quarterly, who
then report progress against targets to the
Sustainability Committee.
8) Describe how processes for
identifying, assessing and managing
climate-related risks are integrated
into the organisation’s overall
risk management.
2024 Annual Report – Risk management
(Pages 79 to 82)
Compliant
We will continue to monitor and
manage our risk management processes
to ensure climate-related risks are
integrated and appropriate accountability
ismaintained.
Task Force on Climate-related Financial Disclosures (‘TCFD’)
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88 Bellway p.l.c. Annual Report and Accounts 2024
TCFD recommended disclosures Cross-reference or reason for non-compliance Next steps and further comments
Metrics and targets
9) Disclose the metrics used by the
organisation to assess climate-related
risks and opportunities.
2024 Annual Report – Carbon
Reduction section (Pages 45 to 48)
Compliant
In FY24 we considered setting an internal
carbon price, and we will include this in
our Climate Transition Plan in FY25.
10) Disclose scope 1, scope 2, and if
appropriate, scope 3 greenhouse gas
emissions, and the related risks.
2024 Annual Report – Carbon
Reduction section (Pages 45 to 48)
Compliant
Bellway commits to reduce absolute
scope 1 and scope 2 GHG emissions by
46% by July 2030 from a FY19 base year,
aligned to the 1.5°C pathway.
Bellway commits to reduce scope 3 GHG
emissions by 55% per square metre of
completed floor area by July 2030 from a
FY19 base year.
11) Describe the targets used by the
organisation to manage climate-
related risks and opportunities and
performance against targets.
2024 Annual Report – Carbon
Reduction section (Pages 45 to 48)
Compliant
Our Carbon Reduction business priority
includes Science-Based Targets for scope
1, 2 and 3 emissions. We also have targets
relating to the transition to air source
heat pumps, and the development of a
climate transition plan.
As a responsible homebuilder, we recognise the significance
of climate change, and our role in mitigating its impacts.
For a fourth consecutive year, we are reporting against the
TCFD recommendations.
In FY24 we have concentrated on managing our transition
risks, increasing the knowledge within our business to move
away from traditional gas boilers to low-carbon air source
heat pumps. We have also focused on reducing our direct
emissions, demonstrated through a 44.7% reduction in our
scope 1 and 2 footprint from our FY19 baseline. More details
on emissions methodology and efficiency ratios used as part
of our ‘Better with Bellway’ strategy can be found on pages
39to 61.
For FY24 we signed up to CDP Global Reporter Services,
which provides additional support with our CDP submission.
The updated 2024 CDP survey is aligned with TCFD, IFRS
S1 and S2 and the incoming TNFD requirements, and by
being part of the Reporter Services we can identify, and
address gaps in our approach. For this Annual Report
we will continue disclosing in line with the four TCFD
recommended disclosures:
• Governance.
• Strategy.
• Risk management.
• Metrics and targets.
We have provided a summary of our performance against
each recommended disclosure above, and a reference table.
We will continue to refine our approach to identifying,
assessing and managing our climate-related financial risks
and opportunities. Although yet to be fully confirmed in the
UK, we plan to be compliant with IFRS S1 and S2 by FY26, and
will complete a comprehensive project to further develop
our understanding of long-term physical and transition risks
and opportunities, so we can address them in our ‘Better with
Bellway’ sustainability strategy.
Governance
Climate change represents a principal risk for our business
and, as such, it is treated with the utmost importance
by our Board and within our approach to governance.
Governance is headed up by our Sustainability Committee,
which assists the Board in fulfilling its responsibilities in
relation to ESG matters and overseeing the performance
of the ‘Better with Bellway’ strategy, reporting to the Board
on at least an annual basis. Our Group Finance Director is
the Board sustainability sponsor and with the support of the
Committee is responsible for monitoring climate change risks,
opportunities and business impacts.
The Sustainability Committee is supported by the ‘Better
with Bellway’ Leadership Team, chaired by the Group Head
of Sustainability. The Leadership Team meets on a quarterly
basis, where it receives an update from the Steering Group,
who act as an intermediary, running the business Sponsor
meetings, where objectives and targets are discussed in detail.
Actions, targets and KPIs are reviewed annually, with new
initiatives proposed by the Business Sponsors, then taken to
the Leadership Team by the steering group, and then sent for
Board approval at the annual Strategy Meeting.
Business sponsors are selected from across the Group, they
are the best placed individuals to deliver the changes needed
for us to meet our objectives. As an example, our Group
Head of Procurement is the main sponsor for many of the
Sustainable Supply Chain objectives. Objectives also have
a second business sponsor, who is responsible for assisting
with the delivery of objectives, helping with reporting and
attending meetings.
The Audit Committee receives quarterly updates on business
risks, which include climate change. Annually, the Committee
undertakes a comprehensive review of key business risks.
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89Bellway p.l.c. Annual Report and Accounts 2024
Strategy
Our ‘Better with Bellway’ strategy shows our commitment
to delivering long-term value for all stakeholders and
supporting the UK Government’s net-zero target by 2050.
Our climate change efforts are integrated into four of the
eight pillars of our strategy:
Carbon Reduction
• Developing science-based carbon
reduction targets.
• Identifying and mitigating our climate-related
financial risks and opportunities.
Resource Efficiency
• Implementing energy-efficient construction
practices and equipment.
• Innovating and investing in research
and development.
Sustainable Supply Chain
• Evaluating the embodied carbon in our
raw materials.
• Working with suppliers to find opportunities
along the supply chain.
Building Quality Homes, Safely
• Complying and exceeding the requirements
of the government’s Future Homes Standard.
• Designing homes with reduced
energy consumption.
Climate scenario analysis
The World Economic Forum identified climate related
risks, including extreme weather events, changes to Earth’s
systems, biodiversity loss, and shortages of natural resources
as the top global risks over the next ten years
b
. At Bellway,
wehave worked to identify how climate-related financial risks
and opportunities could impact our business since 2021, and
we have identified key physical and transition issues along
with their corresponding impact over two climate scenarios,
in accordance with the Intergovernmental Panel on Climate
Change’s Representative Concentration Pathways (‘RCPs’)
a
.
a The RCPs are considered a method to set different scenarios under economic, social and
physical assumptions that might occur because of climate change, and compare global
carbon emissions against pre-industrial levels, projecting the effects from now until the
end of the century.
b These are the biggest global risks we face in 2024 and beyond | World Economic Forum
(weforum.org)
Climate scenarios
Cautious scenario
(RCP 4.5)
A predicted global temperature
increase between 1.7°C and 3.2°C,
in line with current climate change
policies, pledges and commitments.
Worst-case scenario
(RCP 8.5)
A global temperature increase
between 3.2°C and 5.4°C, where
carbon emissions continue
growingunmitigated.
For our TCFD reporting, both climate scenarios are projected
over three time horizons – short-term (2024 to 2040), medium-
term (2040 to 2060) and long-term (2060 to 2080). The time
horizons encompass the wide range of timeframes over
which the different climate-related risks will be realised.
Our selected timeframes present a clear distinction between
the short, medium, and long term and allow for longer-term
planning of key climate-related risks. For the context of
Bellway, the time-horizons took into account the lifetime of
Bellway’s assets (primarily homes), the profile of the climate-
related risks, and the geography of operations across the
UK. The following parameters were considered:
• The short-term time-horizon allows for the prioritisation of
risks and opportunities to be included within operational,
financial, and capital planning;
• Industry guidance highlights the typical lifespan of homes
as up to 60 years (for the purposes of whole lifecycle
carbon assessments); and
• Bellway Homes operates out of 20 trading divisions in
England, Scotland, and Wales. The time-horizons took
account of the relevant geographical data from the
UK Met Office (2018). This dataset shows clear changes
and projections for physical climate-related impacts at
key milestones in alignment between present day and
post-2070s.
Notably, most climate models deliver scenario results for
physical impacts at a timeframe beyond 2050. The immediacy
of the physical risks will increase under a high-emission
scenario and should be considered over the short term.
The climate scenario analysis outlined above was used
to identify the projected climate changes across England,
Scotland and Wales. Consistent with TCFD, we identified:
• Physical risks: defined as direct damage resulting from
climate change phenomena. These can be event-driven
(acute) or long-term shifts (chronic) in climate patterns.
• Transition risks: defined as Policy and legal, technological,
market and reputation impacts, associated with
the implementation of measures to reach a low-
carbon economy.
• Opportunities: realised benefits of climate change arising
from new policies, operational efficiencies, resource
efficiencies, and capitalising upon the low-carbon market
and technological drivers.
We also assessed the financial significance of our climate-
related financial risks and opportunities by:
1. Conducting a financial climate change workshop with
cross-departmental representation.
2. Analysing the financial thresholds and value of our current
and pipeline land and housing portfolio.
3. Identifying the potential financial impacts of every climate
risk for the business.
4. Classifying every risk and opportunity in the financial
threshold, depending on the level of impact against
Bellway’s portfolio value i.e. assets and land.
Task Force on Climate-Related Financial Disclosures (‘TCFD’) continued
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90 Bellway p.l.c. Annual Report and Accounts 2024
The most relevant climate-related risks we have identified
are summarised on pages 88 to 95. This includes the level of
financial impact for the short-term time horizon (2024 – 2040).
We are not compliant with the requirement to consider the
financial impact of the identified risks over the medium and
long-term time horizons, we will do this as we evolve our
approach to TCFD.
Risk: financial impact score key.
1. Impacts less than 1% of Bellway’s portfolio value.
2. Impacts between 1% to 2.5% of Bellway’s portfolio value.
3. Impacts between 2.5% to 5% of Bellway’s portfolio value.
4. Impacts more than 5% of Bellway’s portfolio value.
For each climate-related opportunity, we have identified a
potential value score for the short-term time-horizon (2024
to 2040). Each opportunity is scored against the strength of
the benefits Bellway will experience if they are to realise the
identified opportunity.
The thresholds are defined as follows:
Opportunity: financial impact score key.
1. An increase to Bellway’s portfolio value at less than 1%.
2. An increase to Bellway’s portfolio value at 1% to 2.5%.
3. An increase to Bellway’s portfolio value at between 2.5%
and 5%.
4. An increase to Bellway’s portfolio value at more than 5%.
The financial impacts of risks and opportunities are integrated
into our financial planning process. This encompasses
resource allocation for initiatives like the Air Source Heat
Pump Trials (detailed on pages 44 to 48), compliance costs
for updated Building Regulations Part L1A requirements, and
ongoing consideration of physical climate risks, such as flood
risk, in land viability assessments. Bellway believes its strategy
is resilient to the identified climate risks.
Physical risk
TCFD physical risks refer to the potential financial impacts on an organisation due to climate-related events, including acute
issues like extreme weather, and chronic challenges such as rising sea levels, and temperature changes.
Financial score
Category Identified climate risk Actual and financial impact
Cautious
Scenario
(short-term
time-horizons)
Worst-Case
Scenario
(short-term
time-horizons)
Potential
Impact
Timeframe
Acute Increased frequency
and intensity of
heatwaves leading
to adverse on-site
working conditions.
• Increased expenditure as a result of implementing
measures to maintain comfortable working
conditions on construction sites.
• Reduced revenue and increased costs as a result
of build delays caused by labour disruption and
decreased production capacity.
Score 1 Score 2 Medium
Term
Increased frequency
and intensity of
extreme rainfall
events leading to
increased river,
coastal and surface
water flooding.
• Increased costs of repair and loss of useable
materials during construction.
• Reduced availability of future developable land.
• Increased operating costs due to the need
for additional drainage, or amendments to
existing drainage, both during development and
upon completion.
This risk is reflected in the new Resource Efficiency
objective, to understand link between damaged
items and waste performance.
Score 1 Score 2 Medium
Term
Chronic Sustained increase in
temperatures leading
to poor thermal
comfort/overheating
inhomes.
• Increased costs due to adapting and redesigning
new homes.
• Reduced sales revenue and investment if buyers
and investors perceive that the design of Bellway’s
homes are not adequate for mitigating against the
effects of climate change.
This risk is addressed in our plans to comply with
the new Approved Document ‘Part O’, which aims
to mitigate overheating in new residential buildings.
Score 1 Score 2 Short
Term
Sea and tidal river
levels rising may put
some site locations
in the coastal regions
and near flood
plains up-river at
riskofflooding.
• Increased costs due to prolonged planning and
construction times for at-risk sites.
• Loss of revenue due to reduced availability
of future useable land and inability to include
planned units on at-risk sites.
• Increased insurance premiums and reduced
availability of insurance on assets at
high-risk locations.
• Our Land Teams assess long-term flood risk when
making a decision to purchase land.
Score 1 Score 2 Long
Term
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91Bellway p.l.c. Annual Report and Accounts 2024
Transition risk
TCFD transition risks refer to the potential financial impacts on an organisation due to the shift towards a low-carbon economy,
they include changes to Policy, technology, market preferences and legal requirements.
Financial score
Category Identified climate risk Actual and financial impact
Cautious
Scenario
(short-term
time-horizons)
Worst Case
Scenario
(short-term
time-horizons)
Potential
Impact
Timeframe
Policy
andlegal
• Many local
authorities have
declared climate
emergencies,
aligned to the
Environment Act
and the Planning
and Energy Act,
and have set
expectations
of developers
to address
associated
impacts.
• Increased operating costs as a result of planning
delays or rejections by local authorities and the
associated resubmissions.
• Reduced revenue due to negative perception of
stakeholders arising from an insufficient response
to local authority requirements.
• Constrained land supply leading to inflated
land costs.
• Loss of revenue if stakeholders perceive that
Bellway is not responding appropriately to local
authority climate agendas.
• Financial penalties and a fall in demand and
investment if new local authority requirements are
not met.
We have addressed this risk in our new target to
create best practice for divisions covering each
aspect of sustainability (environmental, social and
economic) by FY25.
Score 1 Score 1 Short
Term
Failure to comply
with the Future
Homes Standard
for England, which
is planned to be
introduced from
2025 – requiring
new build homes to
be future-proofed
with low-carbon
heating and a very
high standard of
energyefficiency.
• Reduced sales revenue and investment if
buyers and investors perceive that the design of
Bellway’s homes are not adequate for mitigating
against the effects of climate change.
• Financial penalties and a fall in demand and
investment if new regulatory requirements are
not met.
The impact of this risk has been built into the
Carbon Reduction strategy, metrics and targets as
part of ‘Better with Bellway’, see pages 45 to 48.
Score 3 Score 4 Short
Term
Failure to report
and disclose both
mandatory and
voluntary climate-
related information
to a credible
standard.
• Reduced demand and investment if partners,
customers and potential investors perceive
Bellway has had a delayed response to the
climate-related reporting landscape.
• Increased costs from fines and judgements
arising from non-compliance and with new
reporting requirements.
We have addressed this risk through our ongoing
work with the Carbon Trust, to verify our annual
footprint in accordance with ISO 14064.
Score 1 Score 1 Short
Term
Technology Insufficient
development and
availability of more
efficient products
and technologies
to deliver climate-
resilient homes.
• Increased costs due to investment in research
and development.
• Increased costs from extended build time and
effort to deliver homes and developments resilient
to climate change.
• Loss of revenue if buyers perceive that Bellway is
unable to offer climate-resilient homes.
• Constrained supply of more efficient products and
technologies leading to inflated prices.
The impact of this risk has been built into the
Carbon Reduction and Sustainable Supply Chain
strategies, metrics and targets as part of ‘Better with
Bellway’, see pages 45 to 48 and 53 to 54.
Score 3 Score 3 Short
Term
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
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92 Bellway p.l.c. Annual Report and Accounts 2024
Transition risk continued
Financial score
Category Identified climate risk Actual and financial impact
Cautious
Scenario
(short-term
time-horizons)
Worst Case
Scenario
(short-term
time-horizons)
Potential
Impact
Timeframe
Technology
(continued)
The government
has now recognised
that low-carbon
homes may be
more expensive
for customers than
existing (e.g., gas
boiler) homes.
• Increased costs due to higher input prices of
‘renewable’ resources and equipment.
• Reduced demand and sales revenue as a result
of negative feedback from buyers on the costs of
running a Bellway home or if buyers favour older
properties as opposed to new builds.
We have addressed this risk through our
requirement for all Divisions to trial Air Source Heat
Pump technology.
Score 2 Score 2
Short
Term
Market Supply chain
challenges resulting
in exhaustion of
resources leading to
decreased availability
of building materials.
• Increased costs due to inflated input prices and
delays in construction activity.
• Reduced revenue from a reduction in
completed homes.
The impact of this risk has been built into the
Sustainable Supply Change strategy, metrics and
targets as part of ‘Better with Bellway’, see pages 53
to 54.
Score 3 Score 3
Medium
Term
Failure to improve
Bellway’s carbon
footprint by not
meeting the
Science-Based
Targets, whereby
scope 1, 2 and 3
carbon emissions
are reduced.
• Increased operating costs due to construction
and wider business disruptions resulting from the
transition to a low-carbon economy.
• Damage to share price owing to a perception of
potential and existing investors that Bellway has
not met its net zero commitments.
• Increased expenditure and costs resulting from
the actions and initiatives required to meet
Science-Based Targets.
This risk is addressed in the Carbon Reduction
business priority in our ‘Better with Bellway’ strategy.
Score 2 Score 2
Short
Term
Reputation Customers and
communities do not
perceive that Bellway
has responded/
contributed
appropriately or
sufficiently to the
transition to a low-
carbon economy.
• Loss of competitive advantage resulting in
reduced demand for Bellway homes and a fall in
sales revenue.
• Damage to share price if potential and existing
investors perceive that Bellway’s response to
transitioning to a low-carbon economy has
been inadequate.
The impact of this risk has been built into
the Customers and Communities and Carbon Reduction
strategies, metrics and targets as part of ‘Better with
Bellway’, see pages 39 to 40 and 45 to 48 respectively.
Score 3 Score 3
Short
Term
Failure to embed
sustainability in the
business (including
within staff training
and development
processes) may
lead to the
business becoming
unattractive to staff,
potential investors
and existing
shareholders as
sustainability and
ESG performance
are increasingly
incorporated into
employment and
investment decisions.
• Increased costs due to recruitment/
inductions and associated construction and
business disruptions.
• Reduced revenues due to the impact of
workforce issues on completions.
• Damage to share price if the business is not seen
as an attractive investment due to perceived poor
performance regarding sustainability and ESG.
• Increased staff turnover resulting in loss of
knowledge and inefficiency.
This risk is addressed in our ‘Better with Bellway’
strategy, including comprehensive governance
structure and regular promotion of our goals.
Score 1 Score 1
Short
Term
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93Bellway p.l.c. Annual Report and Accounts 2024
TCFD opportunity
TCFD opportunities refer to the potential financial benefits an organisation can gain from climate-related actions, for example
cost savings from energy efficiency or increased revenue from low-carbon products.
Category Identified climate opportunity Business impact
Impact
Score
Potential
Impact
Timeframe
Physical
(Acute)
Increased market valuation through
resilience planning against flood risk and
more informed land bank acquisition
demonstrating 'climate-readiness'
toinvestors.
• Increase in revenue as a result of
increased house prices and sales.
Score 3 Medium
Term
Physical
(Chronic)
Bellway could leverage the competitive
advantage gained through optimised
building design, which includes natural
ventilation, temperature control,
andthermalcomfort.
• Lower operational costs for residents
owing to reduced energy demand.
• Well-designed homes with optimum
building design presenting strong
market position and a commercially
competitive advantage for Bellway.
Score 2 Medium
Term
Physical
(Chronic)
Improved stakeholder trust and competitive
positioning of Bellway’s homes through
the use of climate-resilient materials and
improved build processes.
• Reputational benefits arising from
sustainable home designing, as well
as long-term financial gain through
competitive market positioning.
Score 3 Medium
Term
Physical
(Chronic)
Reduced financial losses and reduced
expenditure as a result of subsidence risk
assessments (and associated mitigation
measures) to reduce damage to Bellway’s
current and future land bank.
• Improved build site identification
processes and procedures, resulting in
the financial savings and the reduced
expenditure from loss and/or damage
to assets.
Score 3 Long
Term
Technology Scaling up and researching how low-carbon
technology can reduce Bellway’s operating
costs and support the transition to a low-
carbon economy through smart solutions.
• Reduction in running costs and
therefore associated financial
savings associated with operational
expenditure savings.
Score 2 Short
Term
Technology Harnessing significant operational savings
by investing in energy-efficient equipment,
sustainable materials and implementing
sustainable building practices.
• Operational savings, more efficient
building processes, more efficient
technology and equipment.
Score 2 Medium
Term
Resource
efficiency
Achieving savings from optimising resources
consumption and adopting circular
economy measures, reintegrating fit-out
materials to productive cycles, reducing
waste costs and buying less materials.
• Operational savings and reduced
expenditure for materials and
waste management.
Score 2 Medium
Term
Market and
reputation
Increase in demand for housing due to the
impact of climate change (more people in
need of homes due to forced displacement
and migration, for example).
• Increase in demand, sales and market
share resulting in enhanced revenue.
Score 1 Long
Term
Market and
reputation
Developing new, low-carbon homes,
according to changes in the market,
whichmay result in an enhanced
competitive position, reflecting shifting
consumer preferences.
• Competitive advantage, increase of
demand, sales and market share.
Score 4 Medium
Term
Market and
reputation
Local communities and stakeholders are
more likely to partner with Bellway if they
have strong sustainability credentials.
• Partnership and strengthening relations
with stakeholders, building reputation,
competitive advantage.
Score 3 Medium
Term
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
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94 Bellway p.l.c. Annual Report and Accounts 2024
‘Better with Bellway’ is regularly reviewed by the Board,
the Sustainability Committee and the ‘Better with Bellway’
Leadership Team, against our identified scenarios, to monitor
and further identify climate risks, opportunities and financial
impacts and how these will affect Bellway as a business.
Risk management
At Bellway, climate-related risks have been integrated into our
established Company-wide Risk Management Framework.
This framework is overseen by our Audit Committee, and
we utilise our Risk Management Policy to identify the current
climate-related risks and opportunities. This process considers
internal and external uncertainties which, if they occur, will
have a significant impact on our business. Once we identify
our risks, we then categorise each of them as follows:
• Strategic risks.
• Operational risks.
• Financial risks.
• Compliance risks.
• Reputational risks.
A full summary of our climate-related risks and opportunities,
and their associated business and financial impacts, is
captured within our internal TCFD Risk and Opportunities
Register. The register provides a coherent framework to
identify, assess, manage and monitor the impacts of climate
change on our business. We identify current or future
mitigation measures and controls for the risks to reduce the
impact and likelihood of each arising. We follow the same
method to identify our climate-related opportunities.
Following the quantification of the most significant risks and
opportunities for our business, we then integrate these into
our Company-wide strategic Risk Register. This Risk Register is
reviewed on an annual basis by the Board, with risks deemed
high or significant then monitored on a quarterly basis by the
Audit Committee, to prevent the actualisation of a risk event.
Metrics and targets
We understand that further, and more tangible, steps
need to be taken to mitigate our climate-related risks and
realise opportunities, both for the future of our planet and
our business.
The most significant climate-related risk to the business
identified through the scenario analysis is the failure to
comply with the Future Homes Standard. More detail on our
decarbonisation plans and actions to achieve our targets can
be found on pages 45 to 48.
Our scope 3 target goes beyond the emission reductions
that will be required to meet the Future Homes Standard
from 2025.
The Group monitors carbon emissions through the metrics
and targets that form part of the ‘Better with Bellway’
strategy. These targets outline our commitment to drive
down emissions throughout our operations and our value
chain. We have set targets, which are aligned to the SBTi
1.5°C ambition.
In line with our legal obligation under the Companies
(Directors’ Report) and Limited Liability Partnerships (Energy
and Carbon Report) Regulations 2018 and the Greenhouse
Gas Protocol, we have continued to measure our scope 1 and
2 greenhouse gas (‘GHG’) emissions and are pleased to report
a 44.7% reduction from 2019. This progress is critical to our
business as we continue on our journey towards net zero by
2050. For Bellway, we define net zero as reducing our scope
1, 2 and 3 emissions to zero, consistent with achieving net
zero emissions in line with the Paris Agreement. Our definition
accounts for neutralising any residual emissions at the net
zero target year and any GHG emissions released into the
atmosphere thereafter with appropriate initiatives, measures
and technologies.
For more information on our carbon footprint, please see
pages 45 to 48.
We are proud of our achievements so far and have
set ambitious targets to manage climate-related risks,
realise opportunities, and achieve net zero by 2050.
Our targets include:
• 46% reduction of absolute scope 1 and scope 2 (tonnes
of CO
2
e) emissions against our 2019 baseline by
July 2030.
• 55% reduction of our scope 3 emissions (tonnes
CO
2
e per m
2
floor area) against our 2019 baseline by
July 2030.
• At FY24, 90% of our purchased electricity was from
certified renewable ‘REGO’ sources. We expect this to
increase to 95% by FY25.
• We installed 130 Air Source Heat Pumps in FY24, and all
Divisions have identified schemes to install heat pumps
in FY25.
• 20% reduction in waste per completed unit by July
2025, we have achieved a 20% reduction by FY24,
12 months ahead of schedule.
• Reduction in construction site water usage against the
baseline of FY21 by July 2025 (m
3
of water per 1000m
2
of completed homes).
• Support the Group’s compliance with the TCFD and
TNFD requirements by engaging with our supply chain
by July 2027.
• Establish a ‘net zero’ target and produce a Climate
Transition Plan by July 2025.
These targets will help strengthen our resilience against
climate change, increase our investors’ trust and enable us
to play a full and active role within the construction industry
to drive innovative change around Carbon Reduction.
In addition, targets around reducing scope 1 and scope 2
emissions and waste have been added as a performance
criteria for the Group’s long-term incentive remuneration,
seepages 145 to 146 and 150 for further information.
For more information, please see our ‘Better with Bellway’
page on our website.
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95Bellway p.l.c. Annual Report and Accounts 2024
Sustainability Accounting Standards Board (‘SASB’)
The Sustainability Accounting Standards Board (‘SASB’) is an independent not for profit organisation
which sets standards to guide the disclosure of financially material sustainability information
of companies.
Terminology used in the SASB is different from the UK marketplace, therefore, we have used equivalent data where
requirements are different from established building and sustainability-related standards and measures for the UK.
The following table discloses our performance against the criteria set by the SASB for the Home Builders sector.
Data relatestothe period 1 August 2023 to 31 July 2024.
Throughout this section, ‘Plots’ are homes prior to completion, which are equivalent to ‘Lots’.
Code SASB criteria Our approach
Land use and ecological impacts
IF-HB-160a.1 Number of (1) lots; and
(2) homes delivered on
redevelopment sites.
30.0% of our owned and controlled land bank plots were on brownfield land,
as at 31 July 2024.
31.1% of completions (excluding joint ventures).
IF-HB-160a.2 Number of (1) lots; and
(2) homes delivered in
regions with High or
Extremely High Baseline
Water Stress.
11,086 of our owned and controlled land bank plots were in regions with High or
Extremely High Baseline Water Stress.
1,164 completed (excluding joint ventures).
IF-HB-160a.3 Total amount of monetary
losses as a result of
legal proceedings
associated with
environmental regulations.
There has been no monetary losses as a result of legal proceedings associated
with the environment in the financial year.
Strategic Report
96 Bellway p.l.c. Annual Report and Accounts 2024
Code SASB criteria Our approach
Land use and ecological impacts continued
IF-HB-160a.4 Discussion of process to
integrate environmental
considerations into site
selection, site design,
and site development
and construction.
For all developments, we aim to mitigate our impact through a range of
actions, including flood impact assessments, risk assessments, ecology surveys,
environmental impact assessments, and, in agreement with local planning
authorities, biodiversity mitigation, enhancement and offsetting.
We have a Group Head of Biodiversity who works closely with our Commercial,
Planning and Land teams to ensure that we fully integrate all reasonable
environmental considerations into our developments and achieve our ‘Better
with Bellway’ objectives.
The Group Head of Biodiversity has provided detailed training to a range of staff
across the business on specific ecology and biodiversity related matters.
Site selection:
• At acquisition stage, we carry out detailed due diligence on sites with regard
to flood risk and mitigation, land contamination, air quality, landscape and
biodiversity assessments.
• We consider connectivity to transport links, and potential nitrate and
phosphate issues.
• All land purchases are scrutinised by senior divisional management, prior to
being reviewed by our Group Head Office.
• Flood risk authorities specify that new developments must survive a
one in one hundred year storm with an additional risk tolerance of 30%.
Our developments meet or exceed this specification. We also strive to reduce
water use associated with our developments using a range of available
techniques, most notably in areas of existing high water stress.
• We have committed to demonstrating a minimum Biodiversity Net Gain of
10% across all development designs submitted for planning from July 2023
onwards. Our Land teams utilise their knowledge received from training
resources and models, as well as external ecologists, to assess biodiversity
constraints and opportunities. This is performed at the earliest stage of site
selection and they are supported by our Group Head of Biodiversity and Head
Office teams.
Site design:
• Our Artisan house type design standards exceed statutory requirements for
energy efficiency.
• Environmental considerations are driven through our new ‘Better with
Bellway’approach.
• In 2024, we planted 9,665 tree saplings across our developments.
Site development and construction:
• We identify and mitigate environmental impact during the development and
construction phase through the application of Group Standards.
• Our divisions are working towards being certified to IS0 14001 Environmental
Management System Standards by the financial year ended 31 July 2026.
• Wherever possible, mature trees and woodlands located within our
developments are retained. These trees are then protected during
development in accordance with British Standard 5837:2012.
• Our Regional Health and Safety Managers conducted 808 monitoring
visits of sites in FY24 to assess compliance with our health, safety and
environmental policies.
• Over the past year, we’ve installed sustainable drainage systems on 246 of
our developments.
• We’ve implemented biodiversity plans on 154 of our developments across
the UK.
Strategic Report
97Bellway p.l.c. Annual Report and Accounts 2024
Code SASB criteria Our approach
Workforce health and safety
IF-HB-320a.1 (1) Total recordable
incident rate (‘TRIR’);
and (2) fatality rate for (a)
direct employees; and (b)
contract employees.
We measure H&S performance using an Annual Injury Incidence Rate (‘AIIR’)
metric, which is per 100,000 employees. Our overall AIIR is 170.99.
There were no fatalities.
The health, safety, and wellbeing of our colleagues and subcontractors is our
highest priority.
Reportable injuries are those covered by the UK’s Reporting of Injuries, Diseases
and Dangerous Occurrences Regulations (‘RIDDOR’).
Design for resource efficiency
IF-HB-410a.1 Number of homes that
obtained a certified
residential energy
efficiency rating; and (2)
average score.
The Energy Performance Certificate (‘EPC’) is a UK equivalent to the HERS Index.
Properties are assessed by an accredited assessor.
99% of our homes achieve an energy efficiency rating of either A or B.
This statistic is based on analysis of actual final EPC data from 1 August 2023 to
31 July 2024. The sample analysed covered 6,513 homes accounting for 85% of
the completions in the period.
The construction specification of every Bellway home includes high levels of
thermal insulation, the detailed house type designs incorporate calculated
thermal bridging thereby reducing a significant source of heat loss. Our homes
also feature highly efficient services and appliances. Solar PV arrays and
mechanical ventilation systems with heat recovery feature in a growing number
of our homes.
IF-HB-410a.2 Percentage of installed
water fixtures certified a
water efficiency standard.
100% of total home completions in FY24 were designed to a flow of less than 110
litres per person per day.
Our homes incorporate low flow outlets and sanitary ware to achieve a low water
consumption rate, this strategy permanently reduces water consumption.
IF-HB-410a.3 Number of homes
delivered certified to a
third-party multi-attribute
green building standard.
The UK does not currently have an established third-party multi-attribute green
building standard for homes.
All our homes are subject to UK building regulations.
IF-HB-410a.4 Description of risks and
opportunities related to
incorporating Resource
Efficiency into home
design, and how benefits
are communicated
to customers.
We continuously review risks and opportunities in relation to Resource Efficiency
in our Artisan Collection house designs.
We do this through internal workshops, working directly with our supply chain
partners, collaborating in sector forums and testing through customer research.
It is recognised that the low-carbon home of the future is not necessarily a low
running cost home. We are conducting research projects that include energy
monitoring and reporting to identify the prime configuration of fabric, services
and renewable energy generation to ensure affordable running costs for
our customers.
These benefits will be communicated to the customer via improved EPC ratings.
The greater use of timber products increases construction efficiency and reduces
the amount of embodied carbon in a home we build.
As part of Customer First we communicate with our customers throughout their
customer journey, utilising various channels to keep them informed about all
aspects of their new home.
Sustainability Accounting Standards Board (‘SASB’) continued
Strategic Report
98 Bellway p.l.c. Annual Report and Accounts 2024
Code SASB criteria Our approach
Community impacts of new developments
IF-HB-410b.1 Description of how
proximity and access to
infrastructure, services,
and economic centres
affect site selection and
development decisions.
Proximity and access to infrastructure, services, and economic centres influence
site selection and development decisions.
For each site, we assess the current level of facilities and services to see if they
are sufficient to support the scale of proposed development. We aim for future
residents to have convenient access to local facilities and services.
Where it is deemed the current level of facilities or services are not adequate to
support the development, we contribute to improve local facilities.
The UK’s NPPF also requires consideration of the opportunities presented by
existing or planned investment in infrastructure.
During 2024, we contributed £36.3 million to local communities via planning
obligations to fund infrastructure and facilities.
Around 89.0% of our sites were within 400 metres of a public transport node.
IF-HB-410b.2 Number of (1) lots; and
(2) homes delivered on
infill sites.
This data is not currently collected. However, the majority of brownfield land in
the UK would meet the definition of an infill site.
9,227 (30.0%) of our owned and controlled land bank plots at 31 July 2024 were
on brownfield land.
2,381 (31.1%) home completions (excluding joint ventures) were on
brownfield land.
IF-HB-410b.3 (1) Number of homes
delivered in compact
developments; and (2)
average density.
According to SASB definitions, all our schemes meet the criteria for
compact development.
Climate change adaptation
IF-HB-420a.1 Number of lots located in
100-year flood zones.
For all developments, and specifically where we develop greenfield sites,
we aim to mitigate our impact through a range of actions, including flood
impact assessments, risk assessments, ecology surveys, environmental impact
assessments, and in agreement with local planning authorities, biodiversity
mitigation, enhancement and offsetting.
Flood risk authorities specify that new developments must survive a one in
hundred year storm plus 30%.
We ensure our developments meet and very often exceed this specification.
IF-HB-420a.2 Description of climate
change risk exposure
analysis, degree of
systematic portfolio
exposure, and strategies
for mitigating risks.
We recognise climate change as a principal risk to our business and are
committed to reducing our own emissions through our Science-Based
Targets(‘SBTs’).
The assessment of, and response to, climate risk is a key consideration in the
Group’s future strategy.
The identification of new and emerging climate-related risks, assessment and
prioritisation of those risks, and our risk management approach will be key to
integrate climate change mitigation into our overall approach to sustainability.
Over the next year, we will undertake scenario planning to identify the risks
related to the increasing frequency and severity of acute weather events
or increasing water scarcity that could impact our operating environment.
Once identified, we will work towards obtaining a better understanding of
the potential financial impacts using our established scoring criteria, and our
resilience with regards to different scenarios.
We have clear governance to allow the business to oversee climate risks, along
with the Group’s progress on compliance with the Task Force for Climate-
related Financial Disclosures (‘TCFD’).
Activity metrics
IF-HB-000.A Number of controlled lots. As at 31 July 2024, our short-term land bank stood at 30,787 plots.
IF-HB-000.B Number of
homes delivered.
We delivered 7,683 home completions, 7,654 from wholly owned operations
along with 29 from our share of joint ventures.
IF-HB-000.C Number of active
selling communities.
We sold from 247 average active sales outlets, 245 in our wholly owned
operations and two in our joint ventures.
Strategic Report
99Bellway p.l.c. Annual Report and Accounts 2024
Non-Financial and Sustainability Information Statement
This section of the Strategic Report constitutes Bellway p.l.c.’s Non-Financial and Sustainability Information
Statement, required by Section 414CA and 414CB of the Companies Act 2006. The requirements are
addressed in this section by means of cross referencing to indicate which sections of the narrative
they are embedded. Our policies can also be found at www.bellwayplc.co.uk.
Non-financial information Section Pages
Description of our Business Model Our Business Model 16 to 21
Principal Risks Risk Management 79 to 82
Principal Risks 83 to 87
Non-Financial KPIs ‘Better with Bellway’ KPIs
‘Bellway with Bellway’
Our Business Model
12 to 13
34 to 61
16 to 21
Climate-related Financial Disclosures Task Force on Climate-related Financial Disclosures (‘TCFD’) 88 to 95
Environmental matters
Our approach
As a responsible housebuilder we are committed to ensuring the business plays a role in delivering Carbon Reduction and
planning for a sustainable future. We recognise that climate change is one of the defining challenges of our time and we are
committed to reducing our own emissions, and customer emissions from the homes we build, through the setting of science-
based targets to reduce our scope 1, 2 and scope 3 emissions. Through collaborations andtest trials, we are working on
avariety of technologies to help reduce carbon emissions.
Relevant policies and standards that govern our approach Related principal risks* Where to find more information Pages
• Climate Change Policy.
• Environmental.
• Policy.
• Sustainability.
• Policy.
• ‘Better with Bellway’.
• Future Homes Standard (‘FHS’).
• Waste Management Policy.
• Environment and
climatechange.
• Land and Planning.
• Legal and Regulatory
Compliance.
• TCFD. 88 to 95
• ‘Better with Bellway’ –
Carbon Reduction.
45 to 48
• ‘Better with Bellway’ –
Biodiversity.
57 to 59
• ‘Better with Bellway’ –
Sustainable Supply Chain.
53 to 54
• SASB Disclosures. 96 to 99
• Section 172 Statement. 62
Employees
Our approach
We are committed to being an inclusive employer, dedicated to fostering a supportive and inclusive environment for our
employees that aims to create an environment that is open, diverse, and free from all forms of prejudice and discrimination.
We also thrive to create a safe working environment that promotes personal development and equal opportunities. We
recognise the importance of maintaining and supporting the mental health of our colleagues and we are taking steps to
improve the ratio of mental health first aiders within the Group.
Relevant policies and standards that govern our approach Related principal risks* Where to find more information Pages
• Health and Safety Policy.
• Agile Working.
• Policy.
• Safeguarding.
• Policy.
• Equality Diversity & Inclusion Policy.
• Health and Safety.
• Legal and
Regulatory Compliance.
• Human Resources.
• IT and Security.
• TCFD.
• ‘Better with Bellway’ –
Employer of Choice.
• ‘Better with Bellway’
– Building Quality
Homes,Safely.
• Key Stakeholder
Relationships.
• Section 172 Statement.
88 to 95
42 to 43
49 to 52
63 to 78
62
* For full details on related principal risks see pages 83 to 87.
Strategic Report
100 Bellway p.l.c. Annual Report and Accounts 2024
Respect for Human Rights
Our approach
Bellway is committed to respecting human rights, ensuring our people, subcontractors and suppliers are always treated
fairly. We are committed to continuous improvement through our procedures and policies and develop our knowledge and
awareness of human rights and ensure processes are in place for the workforce to speak up through our ‘SpeakUp’ platform.
Relevant policies and standards that govern our approach Related principal risks* Where to find more information Pages
• Anti-Slavery and Human
Trafficking Statements.
• Data protection Policy.
• Privacy Notice.
• Bereavement Policy.
• Maternity Leave Policy.
• Paternity Leave Policy.
• Construction
resources.
• Health and Safety.
• IT and Securit.y
• Legal and Regulatory
Compliance.
• ‘Better with Bellway’
Employer of Choice.
• Key Stakeholder
Relationships .
• SASB Disclosures.
• Nomination Committee
Report .
• Audit Committee Report.
• Section 172 Statement.
42 to 43
63 to 78
96 to 99
116 to 117
118 to 129
62
Social matters
Our approach
Bellway is committed to support our local communities through, community engagement, donations, and our
Volunteering Policy.
We continue to invest in our local communities through the planning process, where we invest in a range of community
services and build a wide range of houses and apartments, to meet the varying budgets and needs of our customers.
In August 2022, Bellway established a new standalone Building Safety division, which is dedicated to the remediation
of buildings identified during the review of our high-rise portfolio, providing a full in-house capability in the delivery of
remedial works.
In March 2023, Bellway signed the MHCLG Self-Remediation Terms (‘SRT’) in England, which converted the principles of
the building safety pledge signed in 2022, in which we committed to resolve any historical fire remedial work on buildings
completed since 5 April 1992, into a binding agreement between the government and Bellway. This was followed in May
2023, with the signature of the Welsh Government’s Self-Remediation Terms.
Relevant policies and standards that govern our approach Related principal risks* Where to find more information Pages
• ‘Better with Bellway’.
• Charity Policy.
• Volunteering Policy.
• Anti-Money Laundering Policy.
• Home Builders Federation.
• Self-Remediation Terms.
• Health and Safety.
• Land and Planning.
• IT and Security.
• Legal and Regulatory
compliance.
• ‘Better with Bellway’.
• Our Business Model.
• Our Marketplace.
• SASB Disclosures.
• Chief Executive’s Market
and Operational Review.
• Section 172 Statement.
• Key Stakeholder
Relationships.
34 to 61
16 to 21
22 to 23
96 to 99
26 to 29
62
63 to 78
Anti-bribery and anti-corruption
Our approach
Bellway is committed to high standard of ethics, honesty and integrity and have a zero-tolerance approach to any form
of bribery and corruption and have compliance procedures in place to prevent bribery and corruption in our business.
Thestandards set by Bellway are expected to be followed by all employees, subcontractors, suppliers and any other third
party acting for or on behalf of the Company.
Relevant policies and standards that govern our approach Related principal risks* Where to find more information Pages
• Bribery and Corruption Policy.
• Whistleblowing Policy.
• Legal and Regulatory
Compliance.
• Audit Committee Report. 118 to 129
* For full details on related principal risks see pages 83 to 87.
Strategic Report
101Bellway p.l.c. Annual Report and Accounts 2024
Sales Advisor and Sales Manager with pupils from
Christ Church CofE Primary School.
Governance
Chair’s Statement on
CorporateGovernance
104
Board of Directors 106
Board Activities and Decisions 108
Board Leadership 110
Division of Responsibilities 111
Composition, Succession
andEvaluation
115
Nomination Committee Report 116
Audit Committee Report 118
Remuneration Report 130
Sustainability Committee Report 153
Directors’ Report 154
Independent Auditor’s Report 158
102 Bellway p.l.c. Annual Report and Accounts 2024
Better choices for
our stakeholders
with Bellway
Stakeholder engagement is an important part of our
business operations, it helps inform the Board decision-
making process and ensure we consider the impact of those
decisions to make better choices for our key stakeholders.
Street scene at
our Pirton Fields
development in
Churchdown.
Amy Hughes, Sales Manager
at Northern Homes Counties.
Governance
103Bellway p.l.c. Annual Report and Accounts 2024
Dear Shareholder
As Chair of Bellway, I am pleased to introduce this year’s
Corporate Governance Report.
During the year, the Board has continued to progress the
long-term, sustainable strategy of the Group. Our effective
governance arrangements underpin the Board activities and
ensure effective consideration of the risks and opportunities
that theCompanyis faced with.
This year in review
In 2023-2024 the Board continued to address the challenges
arising from the macroeconomic and geopolitical conditions,
but are encouraged by the housing market outlook and
welcome the new government’s focus on addressing the
ongoing shortfall of housing. Despite these challenges,
we have delivered another year of strong operational
performance. This is testament to the effectiveness of our
long-term strategic priorities, our culture, and the hard work
and talent of our people. The Board provided strong support
to the management team and, considered and debated
various challenging scenarios, taking into account the
interests of all the Company’s stakeholders.
The application of the skills and experience of the Directors,
coupled with the wide-ranging work of the Audit Committee,
provides strong governance for the benefit of all our
stakeholders. To learn more about our Board activity in 2024,
please see pages 108 to 109.
Stakeholder engagement
We engage with our stakeholders on a regular basis to
understand their perspectives and incorporate their feedback
into our decision-making processes. We are committed
to fostering strong relationships with our shareholders,
employees, customers, and the communities in which we
operate. Please see pages 63 to 78 for more information on
the wider stakeholders and shareholder engagement during
the year.
Sustainability
The Board has continued to focus on ESG matters, which
is detailed via our ‘Better with Bellway’ strategy (pages 34
to 61), and driven by our Sustainability Committee, which
was constituted in May 2023, more details can be found on
page 153.
We acknowledge the importance of the TCFD disclosures,
and continue to improve upon, and develop, our approach,
more details can be found on pages 88 to 95.
Our ‘Better with Bellway’ strategy has been operational
since March 2022, with sustainability at its heart, it reinforces
our commitment to operating in a responsible and ethical
manner. As part of our ‘Better with Bellway’ strategy, we
have chosen to report against SASB and SDGs reporting
frameworks as these were identified as being most relevant
to our investors. SASB have produced standards to focus
companies disclosing performance on the most financially
material sustainability topics for the benefit of investors.
We have reported against the standards applicable for our
industry (more detail on pages 96 to 99).
There are 17 SDGs in total, and Bellway have mapped the
goals that are applicable against the ‘Better with Bellway’
strategy (more detail on pages 34 to 61).
Board succession and diversity
Our Board is structured to ensure there is a balance of skills,
experience, independence, and knowledge necessary
for effective decision-making and oversight. We have a
diverse and experienced Board comprising individuals
with relevant expertise in the housebuilding industry and
corporate governance.
The Board continues to be committed to making
appointments on merit, against objective criteria and
strongly supports boardroom diversity in all its characteristics,
including but not limited to, age, gender, race, education,
professional background and experience.
In May 2024, the Company announced that Simon Scougall
would be promoted to the newly created role of Chief
Commercial Officer, and this came into effect from the 1
August 2024. Please see the Nomination Committee Report
for more detail on pages 116 to 117. An announcement on
the appointment of a new Company Secretary will be made
in FY25.
In addition, in May 2024, Keith Adey announced his decision
to retire from full-time executive work. Keith will be stepping
down from his current role as Group Finance Director
on 1 December 2024. He will remain on the Board and
will continue to have an active role in the business as an
executive director until 21 March 2025, which will include
helping to oversee an orderly transition.
During the year the Board has continued its
commitment to sustainability whilst applying
effective corporate governance and promoting
the highest standards of governance and values
throughout the Company.”
John Tutte
Chair
Chair’s Statement on Corporate Governance
Governance
104 Bellway p.l.c. Annual Report and Accounts 2024
Shane Doherty, who was the Group Chief Financial Officer
of Cairn Homes PLC (‘Cairn’) (a company trading on both the
Euronext Dublin and the London Stock Exchange) until April
2024, will join Bellway on 2 December 2024 as Chief Financial
Officer and be appointed as a member of the Board with
effect from that date.
As part of Board succession planning, the Nomination
Committee has been actively working on promoting
diversity with the objective of aligning Board composition
with the Parker Reviews, the FTSE Women’s Leaders Review
recommendations, and the FCA disclosure rules.
During the year, Cecily Davis has been appointed as a
Non-Executive Director bringing a wealth of experience.
Further details on Cecily’s biography can be found on
page 107.
Diversity extends beyond the boardroom and the Board
values diversity across the workforce. Becoming an ‘Employer
of Choice’ is a flagship business priority pillar of our ‘Better
with Bellway’ strategy (more details on pages 42 to 43).
This objective includes becoming a more open, diverse and
inclusive organisation. We are committed to providing a great
working environment, which recognises that people from
different backgrounds, experiences and abilities can bring
fresh ideas and innovation to improve our business. We want
to ensure that equality, diversity and inclusion is embedded
in our culture, and reflected in our people and behaviours.
Bellway held its second Pride event in 2024 as well as other
initiatives as part of the Balance Network. Our culture is a key
component in our strategy and during the year, the Board
has monitored our culture with updates from the Group’s
HR Director on our people, our talent, diversity and inclusion
network updates and engagement surveys. More details of
these activities can be found on pages 42 to 43.
We continue our strong commitment to increasing the
number of females in the construction industry, especially
in senior roles, and we continue to invest in our apprentice
and graduate schemes to bring new diverse talent into the
business. In addition, we continue to partner with Women in
Construction and the HBF to be proactive in our approach
to attract more female talent into the industry. More details
on this, and our approach to diversity and inclusion, can be
found on page 43.
Board effectiveness and evaluation
In line with the UK Corporate Governance Code, we
undertake a formal and rigorous annual evaluation of our
own performance and that of our Committees and individual
Directors. We normally operate a three-year cycle of internal
and externally facilitated reviews. Bellway’s last externally
facilitated evaluation took place in 2023 facilitated by Trusted
Advisors Partnership (‘TAP’), a specialist consultancy, which
has no other business or connection to the Group or
individual Directors.
In 2024, it was decided to follow up the previous Board
evaluation with a second consecutive external evaluation
conducted again by TAP and supported by the Chief
Commercial Officer and Company Secretary.
A similar approach was adopted to the previous year,
TAP, with the support of the Chief Commercial Officer and
Company Secretary, reviewed the Chair, Non-Executive
Directors, the Board and its Committees’ effectiveness to
fulfil their duties. The review considered the Board structure,
capability and performance; and the quality of Board
discussion and review to support the delivery of Bellway’s
sustainable growth strategy.
The output of the review provides a series of observations
and considerations, which the Chair and Board of Directors
use to help further enhance its performance in a challenging
economic environment.
The Board evaluation carried out confirmed that the Board
and its Committees continue to operate effectively and that
the Bellway p.l.c. Board is well constituted and comprised
of experienced, capable, and engaged Non-Executive and
Executive Directors that are able and willing to fulfil their
responsibilities, without any conflict of interest. The review also
highlighted that the Board Committees operate well, and the
Main Board is well chaired. You can read more about this on
page 115.
Annual General Meeting (‘AGM’)
The 2024 AGM will be held on 12 December 2024 at
Woolsington House, Newcastle, and we hope that we can
count on shareholders’ support for the proposed resolutions.
Full details in the Notice of Meeting.
Compliance with the UK Corporate Governance
Code (‘The Code’)
I am pleased to confirm that the Board considers that it has
complied throughout the year with the detailed provisions
of the Code published in July 2018. As required by the Code,
this report describes our activities and key achievements
during the year, giving shareholders and stakeholders the
necessary information to evaluate how the Code’s Principles
have been applied. The Code is available, from the Financial
Reporting Council, online at www.frc.org.uk or by telephoning
0207492 2300.
Conclusion
I would like to recognise the hard work and commitment
of all Bellway employees during the year and thank them
for their efforts to ensure the success of the Company and
also the members of the Board for their continued support
and commitment.
John Tutte
Chair
14 October 2024
105Bellway p.l.c. Annual Report and Accounts 2024
Governance
Key:
A
Audit Committee
S
Sustainability Committee
R
Remuneration Committee
*
Denotes Committee Chair
N
Nomination Committee
NR
Board Committee on Non-Executive Directors’ Remuneration
Background and experience
Jason commenced employment with the Group in January
2005 as Managing Director of the Thames Gateway division,
becoming Southern Regional Chairman in December 2011.
Jason joined the Board as Chief Operating Officer and was
promoted to GroupChief Executive on 1 August 2018.
Background and experience
John was appointed to the Board on 1 March 2022 as
Non-Executive Chair Designate, and succeeded Paul
Hampden Smith as Non-Executive Chairman and Chair of
the Nomination Committee on 1 April 2022. He is qualified
in civil engineering and has over 40 years’ experience
within the industry through various senior roles at Redrow
plc, including Group Chief Executive, Executive Chairman,
and then Non-Executive Chairman, prior to him retiring
from the Board in 2021.
Other appointments
• Home Builders Federation – Non-Executive Director.
Background and experience
Simon joined Bellway in March 2011 and has held senior
positions within the Group including that of Group
Commercial Director and Group General Counsel and
Company Secretary. Simon joined the Board as Chief
Commercial Officer on 1 August 2024.
Background and experience
Keith, a Chartered Accountant, joined Bellway in December
2008 as Group Chief Accountant, becoming Group Finance
Director on 1 February 2012. Prior to joining Bellway he
worked at KPMG and Grainger plc.
John Tutte
Chair
Appointed 1 March 2022
N*
R
S*
Jason Honeyman
Group Chief Executive
Appointed 1 September 2017
NR*
Board of Directors
Membership and meeting attendance
Director Number of meetings attended during the year
John Tutte 9/9
Sarah Whitney 9/9
Jill Caseberry 9/9
Ian McHoul 9/9
Cecily Davis 1/2
*
Jason Honeyman 9/9
Keith Adey 9/9
* Partial absence was due to commitments prior to joining the Board.
Keith Adey
Group Finance Director
Appointed 1 February 2012
NR
S
Simon Scougall
Chief Commercial Officer
and Company Secretary
Appointed 1 August 2024
NR
Governance
106 Bellway p.l.c. Annual Report and Accounts 2024
Background and experience
Jill was appointed to the Board as a Non-Executive Director
on 1 October 2017. Jill has extensive sales, marketing and
general management experience across a number of
blue-chip companies including Mars, PepsiCo and Premier
Foods.
Other appointments
• Halfords Group plc – Senior Independent Director,
Remuneration Committee Chair and a member of the
Audit, Nomination and ESG Committees.
• C&C Group plc – Non-Executive Director and a member of
the Remuneration and Audit Committees.
• St. Austell Brewery Company Limited – Senior Independent
Director, Chair of the Remuneration Committee and a
member of the Audit and Nomination Committees.
• Bakkavor Group plc – Senior Independent Director, Chair
of the Remuneration Committee and member of the
Nomination Committee.
Background and experience
Cecily, a registered solicitor, was appointed to the Board as a
Non-Executive Director on 1 May 2024. Cecily has extensive
legal, construction and infrastructure experience, combined
with a wealth of senior executive experience and general
management experience. She was a Partner at DLA Piper
from 2005 to 2012 and has since served at Fieldfisher as
Partner, Head of Construction and Engineering and Head of
the Africa Group. Cecily currently serves as a Non-Executive
Director on the Board of Triple Point Social Housing REIT PLC
and has previously acted as Non-Executive Director for both
L&Q Group and Places for People.
Other appointments
• Fieldfisher LLP – Partner, Head of Construction and
Engineering and Co-Head of the Africa Group.
• Triple Point Social Housing REIT PLC – Non-Executive
Director and member of the Sustainability & Impact and
Nomination Committee.
Jill Caseberry
Independent
Non-Executive Director
Appointed 1 October 2017
A
N
R*
S
Background and experience
Sarah, a Chartered Accountant, was appointed to the Board
as a Non-Executive Director on 1 September 2022. Sarah
has extensive property and finance experience from roles
at PricewaterhouseCoopers, DTZ Holdings (now Cushman
& Wakefield), and at CBRE.
Other appointments
• JP Morgan Global Growth & Income plc – Non-
Executive Director, Chair of Audit Committee and
Remuneration Committee.
• BBGI Global Infrastructure S.A. – Chair of the Supervisory
Board and Chair of the Nomination Committee, member
ofthe Remuneration Committee.
• Tritax EuroBox plc – Senior Independent Director
and member of the Audit, ESG and Management
Engagement Committees.
• University College London – Member of the Council and
Chair of the Audit Committee.
• Nuffield College, University of Oxford – Member of the
Investment Committee.
Sarah Whitney
Senior Independent
Non-Executive Director
Appointed 1 September 2022
A
N
R
S
Background and experience
Ian, a Chartered Accountant, was appointed to the
Boardas a Non-Executive Director on 1 February 2018,
andappointed as Chair of the Audit Committee on
12 December 2018. He was Finance & Strategy Director of
the Inntrepreneur Pub Company Limited from 1995 to 1998
and then served at Scottish & Newcastle plc from 1998 to
2008, first as Finance Director of Scottish Courage and later
as Group Finance Director of Scottish & Newcastle plc.
From 2008 to 2017 he was Chief Financial Officer of Amec
Foster Wheeler plc. Ianwas also a Non-Executive Director
of Premier Foods plc fromJuly 2004 to April 2013.
Other appointments
• None currently.
Ian McHoul
Independent
Non-Executive Director
Appointed 1 February 2018
A*
N
R
S
Cecily Davis
Independent
Non-Executive Director
Appointed 1 May 2024
A
N
R
S
107Bellway p.l.c. Annual Report and Accounts 2024
Governance
Board activity
ordecision
New corporate
communications
advisers appointed.
How stakeholders
wereconsidered
Powerscourt were
appointed as
new corporate
communications
advisers to improve
communication
toinvestors.
Board Activities and Decisions
August September October December February March May June July
For more detail on how the Board has considered and engaged with key stakeholders please see
theKeyStakeholder Engagement section on pages 63 to 78.
Board activities, decisions and stakeholders considered
2023
Board activity or decision
Employee Survey Results
presented to the Board.
How stakeholders
wereconsidered
The Board agreed actions
to be taken to improve the
Employee Survey results.
Board activity or decision
Board Evaluation results.
How stakeholders
wereconsidered
The impact of the Boards
decisions on strategy and
our stakeholder groups
were considered, and
agreed actions to further
develop the effectiveness of
the Board.
Board activity or decision
Approve the new ‘Better
with Bellway’ targets
for FY24.
How stakeholders
wereconsidered
The targets are set while
considering the impact
the business has on
its stakeholders and
wider environment.
Board activity
ordecision
Annual General
Meeting 2023.
How stakeholders
wereconsidered
Shareholders had the
opportunity to meet the
Board and discuss issues
ofimportance.
Board activity or decision
Approval of Executive
Committee Terms
of Reference.
How stakeholders
wereconsidered
This demonstrates
theBoard’s commitment
to the recommendations
of the Board evaluation,
and improving decision-
making.
Board activity or decision
Approval of the 2023 Annual Report
and Accounts.
How stakeholders
wereconsidered
The Board approved the preliminary
announcement along with the 2023
Annual Report and Accounts.
Board activity or decision
Anti-Slavery and Human Trafficking
Statement approved.
How stakeholders wereconsidered
Demonstrating commitment to
comply with the legislation, and
Bellway’s commitment to improving
practices and ways of working to
stop Modern Slavery in our business
and direct supply chain.
Board activity or decision
Completion of £100 million share
buyback programme.
How stakeholders wereconsidered
Return capital to investors, via
completion of the second tranche
ofthe share buyback programme.
Board activity or decision
Approval of the FY24 Health and
Safety targets.
How stakeholders wereconsidered
The targets are set to continue
our key priority to provide a safe
environment for everyone on
our sites.
Governance
108 Bellway p.l.c. Annual Report and Accounts 2024
August September October December February March May June July
Board activities, decisions and stakeholders considered
Customers Employees
Investors, Analysts
and Advisors
Subcontractors
and Supply Chain
Local Communities
and the Environment
Government
and Regulators
Key:
2024
Board activity
ordecision
Audit Consultation
with shareholders.
How stakeholders
wereconsidered
Consulted with
shareholders on
changes to the
UK Corporate
Governance
Code2024.
Board activity
ordecision
Employee
Engagement
survey conducted.
How stakeholders
wereconsidered
Provides an
opportunity for
employees to
share feedback
on a range of
topics including
training, views on
management and
the other leadership
of theorganisation.
Board activity
ordecision
Annual Board
Strategy Meeting
including
presentations
fromthe CEO
of the Future
Homes Hub.
How
stakeholders
wereconsidered
The Board’s
annual strategy
day allows for
discussion of the
short and long-
term strategy of
thebusiness.
Board activity
ordecision
Remuneration
Policy
consultation.
How
stakeholders
wereconsidered
Shareholders and
investor agencies
were consulted
and asked to
provide feedback
on the proposed
Remuneration
Policy to be
voted on at
the Company’s
Annual General
Meeting on 12
December 2024.
Board activity
ordecision
Non-Executive
Directors attended
Employee
Listening Groups.
How stakeholders
wereconsidered
The outcome of
the discussions
are discussed at
Boardlevel.
Board activity
ordecision
Approve the
Gender pay
Gap Report.
How stakeholders
wereconsidered
The Board is
committed to being
transparent on
it’sreporting.
Board activity ordecision
Cecily Davis appointed
totheBoard as
Non-Executive Director.
How stakeholders
wereconsidered
The Board is committed to
making appointments that
complement and expand
upon the Board’s existing
skills, and to comply with the
requirements of the Parker
Reviews, the FTSE Women’s
Leaders Review andthe FCA
disclosure rules.
Board activity ordecision
Board site visit.
How stakeholders
wereconsidered
The Board visited our joint
venture site Springstead
Village, Cherry Hinton and met
with staff and subcontractors.
Board activity ordecision
Announcement of
Directorate changes.
How stakeholders
wereconsidered
It was announced that Simon
Scougall was to be appointed
as Chief Commercial Officer
from 1 August 2024. It was
also announced that Keith
Adey would retire once an
appropriate replacement
wasfound.
109Bellway p.l.c. Annual Report and Accounts 2024
Governance
Board Leadership and Company Purpose Leadership and Culture
The Board is the principal decision-making body of the Group and, collectively, is responsible for establishing
a clear purpose and setting the strategic direction of Bellway. The Board promotes the long-term sustainable
success of the Group, for the benefit of our shareholders, while also contributing to wider society.
Board leadership
Board of Directors
Audit Committee
Nomination
Committee
Board Committee
on Non-Executive
Directors’ Remuneration
Sustainability
Committee
Sets and defines the Company’s purpose and values,
whichdrives the Company’s culture.
Annual review of subcommittee Terms of Reference and the
delegated authority.
Reviews, considers and approves major transactions and
investmentsfor the Group.
Sets and drives the Group’s strategies, including sustainability,
volume growth and value creation.
Oversees the risk appetite of the Group
andensuressufficient controls.
Provides oversight of corporate governance and ensures
effectiveengagement with stakeholders.
Approval of the annual
Anti-Slavery and Human
Trafficking Statement.
Annual internal control and
risk management review.
Annual Policy
compliance review.
Review and approval of
the draft Annual Report
and Accounts.
Audit plan and review of
Auditor Policy.
Monitoring the integrity of
the financial statements.
Review internal audit plan
and the effectiveness of the
internal audit function.
Read more
on pages 118 to 129.
Review the structure, size
and composition of the
Board, in accordance with
the Board’s Diversity Policy,
and current legislation.
Consider succession
planning for the Board and
their direct reports.
Identify candidates to
fill Board vacancies and
nominate these to the Board
for approval.
Consider diversity and
inclusion targets for
the Group.
Annual performance
evaluation of the Committee.
Keep under review
the range of skills and
experience on the Board.
Read more
on pages 116 to 117.
Review and determine
salaries and other elements
of remuneration package
of individuals under the
Committee’s remit.
Work with external
Advisors to review and
determine annual bonus
performance targets.
Annual review of
remuneration of
management below
Board level and the
wider workforce.
Annual review, grant
and vest of any awards
under the long-term
incentive plan.
Review Remuneration
Policy.
Ensure practices are
designed to support and
promote the long-term
success of the Company.
Read more
on pages 130 to 152.
Meet at least once a year,
to review fees, and the
terms of appointment of the
Non-Executive Directors
(excluding the Chair).
Receive advice from the
Chief Commercial Officer
and Company Secretary
and external remuneration
consultants when required.
Read more
on page 114.
Oversee ESG matters for
Bellway, including the ‘Better
with Bellway’ strategy.
Review industry best
practice in respect of
ESG compliance.
Review and approve
‘Better with Bellway’ targets
and KPIs.
Review relevant policies
and determine their
appropriateness in
supporting the Group’s
sustainability agenda.
Will meet at least twice a
year, and when required
in addition.
Read more
on page 153.
Leadership
Remuneration
Committee
Divisional Boards
Executive Committee
Executive Directors
Head Office Senior Management Team ‘Better with Bellway’ Leadership Committee
Governance
110 Bellway p.l.c. Annual Report and Accounts 2024
Division of Responsibilities
Statement about applying the principles
ofgoodgovernance
The Board acknowledges the importance of, and is
committed to the principle of, achieving and maintaining
ahigh standard of corporate governance and in promoting
apositive culture within the Group.
We have applied the principles of good governance, including
both the Main Principles and the Supporting Principles, by
complying with the Code. Further explanations of how the
Main Principles and Supporting Principles have been applied
are set out below and in the Remuneration Report.
Leadership
The Board is the principal decision-making body of the Group
and is collectively responsible to shareholders for promoting
the long-term success of the Group.
At the date of this Report, the Board consists of eight Directors
whose names, responsibilities and other details appear on
pages 106 to 107. Currently three of the Directors are Executive
and five are Non-Executive including the Chair.
The Board sets the strategic aims, ensures that the necessary
resources (including finances, people and materials) are in
place for the Group to meet these objectives and also reviews
management performance. It defines the Group’s values and
standards and ensures that its obligations to its shareholders
are understood and met.
The Board has put in place the following structure, which
allows it to provide entrepreneurial leadership of the Group
and to delegate authority for operational matters through a
framework of prudent and effective controls, which enable
risk to be assessed and managed.
Chair
• Promoting the highest standards of integrity, probity
and corporate governance throughout the Group and
particularly at Board level including ensuring that the
correct cultural tone is set from the top.
• Ensuring that the Group complies with the requirements of
the UK Corporate Governance Code and adheres to the
highest standards of governance.
• Leading the Board and ensuring its effectiveness.
• Setting the Board’s agenda.
• Ensuring the Directors receive accurate, timely and
clear information.
• Ensuring effective communication with shareholders.
• Ensuring the effective conduct of Board meetings and
facilitating the effective contribution of all directors and the
Chief Commercial Officer and Company Secretary.
• Leading the evaluation of the performance of the Board,
its Committees, individual Directors and Chief Commercial
Officer and Company Secretary.
• Overseeing the induction of any new Board Directors and
the development of existing Directors.
• Ensuring that the views of shareholders are communicated
to the Board as a whole.
• Encouraging constructive relations between the Executive
and Non-Executive Directors and the Chief Commercial
Officer and Company Secretary.
• Approving land purchases over specified limits in
conjunction with the wider Board.
Group Chief Executive
Implementing the strategy agreed by the Board.
• Leading the Executive Directors, Company Secretary and
the senior management team in the day-to-day running of
the Group’s business.
• Ensuring the effective implementation of Board decisions.
• Reviewing the Group’s organisational structure and
recommending changes as appropriate.
• Supervising the activities of the Regional Chairs and
divisional senior management, overseeing their
development and succession planning.
• Overseeing Group operations.
• Overseeing the activities of subsidiary companies.
• Overseeing divisional expansion plans.
• Together with the Chair, providing coherent leadership of
the Group, including representing the Group to customers,
suppliers, government, shareholders, financial institutions,
employees, the media, the community and the general public.
• Keeping the Chair informed of all important matters.
• Overseeing the sales and marketing, public relations,
andtechnical departments.
Group Finance Director
• Devising and implementing the financial strategy and
policies of the Group, including treasury and tax.
• Developing budgets and financial plans.
• Responsible for the Group’s investor relations activities.
• Responsible for delivering the Board agreed sustainability
and ESG strategy.
• Overseeing the sustainability, finance, IT and
risk departments.
Chief Commercial Officer
• Supporting the Group Chief Executive in fulfilling his duties.
• Approving land purchases, within specified limits.
• Keeping the Board regularly updated on corporate
governance, legal, commercial and HR matters.
• Responsible for legal compliance throughout the Group
including ensuring policies and procedures are maintained
and updated on a regular basis.
• Overseeing the legal, company secretarial, HR, land,
strategic land and planning, health and safety departments,
and the Building Safety division.
• Working with the Group Finance Director on the delivery of
the sustainability and ESG agenda.
• Managing the Group’s external legal panel.
Senior Independent Non-Executive Director
• Acting as a sounding board for the Chair, Executive
Directors and the Chief Commercial Officer.
• Being available to shareholders.
• Leading the annual appraisal of the Chair.
• Holding meetings with the Non-Executive Directors
withoutthe Chair present.
111Bellway p.l.c. Annual Report and Accounts 2024
Governance
Division of Responsibilities continued
Non-Executive Directors
• Constructively challenging management.
• Contributing to the development of strategy.
• Scrutinising the performance of management.
• Ensuring integrity of financial information and financial
controls and ensuring systems of risk management
are robust.
• Determining appropriate levels of Executive Director, Chief
Commercial Officer and Company Secretary and Regional
Chairs remuneration.
• Appointing and removing Executive Directors and
succession planning.
• Serving on Board Committees.
Executive Committee
• The Executive Committee make recommendations for
the objectives and strategy of the group to the Board for
its approval.
• Overseeing the implementation of the objectives and
strategy approved by the Board.
• They are responsible for the day-to-day management of
the Group in accordance with the approved objectives
and strategies.
• Ensuring the identification, management and monitoring of
risks and the implementation of effective internal controls.
• They are also responsible for reviewing performance,
development and succession planning of
senior management.
‘Better with Bellway’ Leadership Committee
• The ‘Better with Bellway’ Leadership Committee is
comprised of Group Finance Director, Chief Commercial
Officer and Company Secretary, Group Production
Managing Director and Group Head of Sustainability.
• Oversees the continued development of the ‘Better with
Bellway’ strategy, objectives and targets.
• Engages with the Board and key external stakeholders.
• Works with senior management across the business
to embed the ‘Better with Bellway’ strategy into day to
day activities.
Head Office Senior Management team
• The Head Office Senior Management team consists of all
the Group Directors and heads of department, who meet
on a bi-monthly basis, to provide updates and collaborate
on projects.
Board effectiveness
All Directors have access to the advice and services of the
Chief Commercial Officer and Company Secretary, and
his department. All of the Directors may take independent
professional advice at the Group’s expense where they judge
it necessary to discharge their responsibilities as Directors.
In accordance with the Code, all of the Directors will retire
from the Board and offer themselves for re-election or
election at the forthcoming AGM. None of the Executive
Directors hold external directorships.
The Board, its Committees and the individual Directors
are subject to annual performance evaluation and all
Directors are subject to annual re-election by shareholders.
The Board regularly reviews the Directors’ other interests and
appointments to ensure that there are no conflicts of interest.
The Chair is responsible for leading the Board and ensuring
it operates effectively. The Directors possess an appropriate
balance of skills, knowledge and experience to meet the
requirements of the business. The Board recognises the
value of both gender and ethnic diversity as well as the
recommendations of the Parker Reviews, the FTSE Women’s
Leaders Review, and the FCA disclosure rules. This will be taken
into careful consideration when addressing Board succession.
Conflicts of interest
Pursuant to the provisions of the Companies Act 2006 relating
to conflicts of interest, the Board has put in place a register
to deal with the notification, authorisation, recording and
monitoring of Directors’ interests and how these procedures
have operated throughout the year.
Board activity during the year
The Board meets formally and informally during the year to
consider strategy, performance, risk, major land acquisitions,
potential conflicts of interest and reports from senior
employees and external advisers.
One meeting a year is devoted entirely to the consideration
of strategy where the Board agrees the medium and long-
term business plan and ensures that the necessary financial,
human, land and other resources are in place to meet its
objectives. Areas focused on during the strategy day were the
following strategic priorities of:
1. Deliver long-term volume growth.
2. Drive a long-term improvement in RoCE.
3. Operate responsibly and sustainably through
our ‘Better with Bellway’ strategy.
Each year we look to hold separate annual conferences
for the divisional Managing, Finance, Sales, Technical and
Commercial Directors and our Planning Managers, which are
attended by Executive Directors or members of the Group
Office senior management team.
We also host informal Board dinners where senior
management meet members of the Board. The Chair meets
with Executive Management and individual Directors on a
regular basis outside of Board meetings. This process allows
for two-way discussion, enabling the Chair to act as necessary
to deal with any issues relating to Board effectiveness.
Membership and meeting attendance
Director
Date appointed
to the Board
Number of
meetings
attended
during the year
John Tutte
(Chair)
1 March 2022, appointed
Chair 1 April 2022
9/9
Jill Caseberry 1 October 2017 9/9
Ian McHoul 1 February 2018 9/9
Jason Honeyman 1 September 2017 9/9
Keith Adey 1 February 2012 9/9
Sarah Whitney 1 September 2022
9/9
Cecily Davis 1 May 2024 1/2*
* Partial absence was due to commitments prior to joining the Board.
Governance
112 Bellway p.l.c. Annual Report and Accounts 2024
The number of Committee meetings are set out in each
Committee Report. There was one absence from the May
Board and Committee meetings due to a pre-existing
commitment at the same time as the May Board meeting
attime of appointment.
The Executive Directors and Chief Commercial Officer and
Company Secretary regularly met with the divisions during
the year. The Board also received presentations from the
Regional Chairs and certain Group Functional Heads, with an
update on their operating area including the opportunities
and challenges they face, and from external advisors.
Each Non-Executive Director separately visits at least one
division during the year, independent of the Executive
Directors, and reports their key findings and observations at
the next Board meeting.
Meetings with operational management ensured that the
Board’s standards and values for integrity and honesty are
disseminated. Each of our divisions has its own management
team and staff who manage and take pride in the success
of their own operational business within the strategy set by
the Board. In this way, we create a culture that motivates and
rewards our colleagues. We promote a supportive culture
that enables our employees to develop their talents and skills.
The Board assesses the Group’s corporate culture through
various interactions with senior management and the wider
workforce including Board presentations, divisional visits,
Board dinners and the employee awards. The Board has
concluded that the corporate culture of the Group is of a
high standard.
The Board has adopted a schedule of matters that are
specifically reserved for its decision, which includes strategy
and management, structure and capital, financial reporting
and controls, internal controls covering both financial and
operational areas of the business, land acquisition above
specified limits, contracts and agreements, communication,
Board membership and other appointments, remuneration,
delegation of authority, corporate governance matters,
Grouppolicies and other miscellaneous items.
In addition, it has a series of matters that are dealt with at
regular Board meetings including:
• Operational and strategic review.
• Financial review.
• Major land acquisitions.
• Major projects.
• Risk.
• Health and safety.
• Sales and customer care.
• Human Resources.
• Reporting requirements.
• Corporate governance and internal control including any
whistleblowing issues.
In between Board meetings, the Directors receive updates
from the Chair, the Group Chief Executive or the Chief
Commercial Officer and Company Secretary to advise them of
any significant matters affecting the Group or its performance.
During the year the work carried out by the Board included:
• Strategy.
• Considering regular reports on KPIs from the Group
Chief Executive.
• A review of risk and internal control.
• Consideration of recommendations from the
Board Committees.
• Scrutiny of reports from the Group Chief Executive, Group
Finance Director, Chief Commercial Officer and Company
Secretary, and senior management at each Board meeting.
• Considering regular reports on health and safety matters
from the Group Chief Executive and approval of the health
and safety targets for FY24.
• Approval of major land purchases.
• Board evaluation.
• Approval of debt facility agreements.
• Receiving presentations from the five Regional Chairs about
the performance of the divisions under their responsibility.
• Receiving presentations from Finance, HR, IT, Procurement,
Sales and Marketing, Commercial and Technical head
office departments.
• Receiving presentations on sustainability and approval of
corporate responsibility targets for FY24 from the ‘Better
with Bellway’ Leadership Team.
• Approval of the ‘Better with Bellway’ strategy.
• Approval of the Gender Pay Gap Report.
• Approval of the Group’s tax strategy.
• Approval of major IT expenditure.
• Approval of the Group’s insurance programme.
• Approval of the Group’s Slavery and Human Trafficking
Statement for 2023.
• Approval of the Annual Report and Accounts for 2022/23.
• Approval of the preliminary announcement, interim results
and trading updates.
• Recommending the final dividend for 2022/23 to be
approved by shareholders.
• Approval of the interim dividend for 2023/24.
• Defence document review and meeting with
corporate advisors.
• Crisis protocol review.
• Approval of HR (including Equality, Diversity and
Inclusion)KPIs.
• Reviewed and assessed the Group’s cyber controls,
basedon best practices for securing systems and data.
• Receiving regular updates on legacy apartment schemes
where fire safety improvements may be required or where
works are planned or underway.
113Bellway p.l.c. Annual Report and Accounts 2024
Governance
Division of Responsibilities continued
Training and development
The Board receives appropriate training and updates on
various matters relevant to its role and responsibilities.
Training needs are reviewed as part of the performance
evaluation process through the Board’s skills matrix and
onanongoing basis.
A board evaluation conducted by an external third party
wasconducted in July 2024. Following this year’s evaluation
no specific training needs were identified.
Non-Executive Directors attend external training sessions
designed specifically for non-executives and members of
Board Committees as and when required.
Board balance and independence
The roles of Chair and Group Chief Executive are separate,
with a clear division of responsibilities, ensuring a balance
ofresponsibility and authority at the head of the Group.
The Company considers all of its Non-Executive Directors,
including the Chair, to be independent, as defined in the
Code. Each of the Independent Non-Executive Directors has,
at all times, acted independently of management and has no
relationship that would materially affect the exercise of his or
her independent judgement and decision-making.
The Senior Independent Director is Sarah Whitney, with
whom shareholders may raise any queries or concerns
theymay have.
Whenever any Director considers that they are interested
in any contract or arrangement to which the Group is or
may bea party, due notice is given to the Board. No such
instances have arisen during the year.
The Board Committees
The Board has formally constituted Audit, Executive,
Nomination, Remuneration, and Sustainability Committees.
The Terms of Reference for these Committees are available
either on request from the Chief Commercial Officer
and Company Secretary, at the AGM or on our website:
www.bellwayplc.co.uk.
The Executive Committee was formally constituted during
the year, as a sub-committee of the Board, and consists of
the Executive Directors, the Chief Commercial Officer and
Company Secretary, the Regional Chairs and several Group
Director’s and Senior Managers, with the responsibility
for planning, objectives and strategy, operations and
performance, Risk and Internal control, and people related
matters relating to the Group.
Other Committees of the Board are formed to perform certain
specific functions as and when required.
The work carried out by each of the Board Committees
during the year is described in the reports of the Committee
Chairs, which follow.
Board Committee on Non-Executive
Directors’Remuneration
The Board Committee on Non-Executive Directors’
Remuneration comprises the Executive Directors and
isChaired by the Group Chief Executive.
This Committee meets at least once a year. Last year it met
onone occasion to review the fees and terms of appointment
of the Non-Executive Directors (excluding the Chair) and
received advice from the Chief Commercial Officer and
external remuneration consultants when required.
Governance
114 Bellway p.l.c. Annual Report and Accounts 2024
Composition, Succession and Evaluation
Board evaluation
In line with the UK Corporate Governance Code, we
undertake a formal and rigorous annual evaluation of our
own performance and that of our Committees and individual
Directors. We operate a three-year cycle of internal and
externally facilitated reviews. In 2023, Bellway conducted an
externally facilitated evaluation, which was run by Trusted
Advisors Partnership (‘TAP’), a specialist consultancy. TAP has
no other business or connection to the Group or the
individual directors. For 2024, due to changes to the Board
and the increased focus on governance, we conducted
an externally facilitated evaluation carried out by TAP for a
second successive year.
Having been provided with a comprehensive briefing
by the Chair and the Chief Commercial Officer and
CompanySecretary, TAP conducted an evaluation process
inJuly2024,involving:
Current Board evaluation cycle
External evaluation facilitated by TAP.
Internal evaluation facilitated by the Chair.
Internal evaluation facilitated by the Chair.
Year 1 – Current
Year 2
Year 3
Board evaluation process
Stage 1 Stage 2 Stage 3
Revisiting the findings and
recommendations of the 2023
external evaluation.
Engaging with the Chair and
the Chief Commercial Officer
and Company Secretary on
the scope and approach to the
internal evaluation.
Reviewed the Board and Committee
papers since the last evaluation
to aid the understanding of the
progress made.
Conducted a set of individual virtual
meetings with each Board member
and the Chief Commercial Officer
and Company Secretary.
TAP reviewed the Board and its
Committees’ effectiveness to fulfil its
duties considering:
a) Board structure, capability
and performance.
b) Quality of Board discussion
and review to support the
delivery of Bellway’s sustainable
growth strategy.
Produced a report of findings,
progress since the prior year, and
key areas following the evaluation
and fed back to the Board which was
presented to and discussed in detail
in a Board meeting.
The evaluation concluded
that the Bellway p.l.c.
Board was well constituted with
acohort of experienced, capable,
and engaged Non-Executive and
Executive Directors.
Board evaluation 2022/23 update
Action point Progress
Further consideration given to organisational structure and
the lack of an Executive Committee.
A formal Executive Committee was set up during the year,
which includes the senior executives, Regional Chairs,
andseveral Group Directors.
Consideration given to Board composition. An additional Non-Executive Director was appointed during
theyear.
Board evaluation 2023/24
Following the recent Board Evaluation conducted by TAP, the The Board continues to be effective with all Directors fulfilling their
obligations and duties in the interest of the shareholders, employees, customers, and suppliers. The Board remains committed
to continually improving with the Board found to have good diversity of thought and experience. For the year under review,
theChair was found to be performing effectively and to a very high standard. The evaluation concludes that shareholders,
andall stakeholders, should be confident that the Board is effective and is committed to further develop and improve.
115Bellway p.l.c. Annual Report and Accounts 2024
Governance
Nomination Committee Report
Composition, Succession and Evaluation
Membership and meeting attendance
Director Date appointed to theCommittee
Number of
meetings
attended during
theyear
John Tutte
(Chair)
1 March 2022, appointed
Committee Chair
on1April2022
2/2
Jill Caseberry 1 October 2017 2/2
Ian McHoul 1 February 2018 2/2
Sarah Whitney 1 September 2022 2/2
Cecily Davis 1 May 2024 1/1
I am pleased to present the Nomination Committee Report
forthe year, which details the main activities undertaken
during the year.
The Nomination Committee plays a key role in Board
succession, identifying the key skills and abilities required for
the Board, as well as developing the talent within the Senior
Management team, and driving diversity and inclusion, which
supports Bellway in becoming an Employer of Choice.
Key focus areas during the year
• Board succession and appointment of Cecily Davis as an
additional Non-Executive Director.
• Simon Scougall was promoted to a newly created role of
Chief Commercial Officer as of 1st August 2024.
• Conducted a thorough recruitment process for a new
Group Finance Director with the support of an external
consultant following the announcement that Keith Adey
intends to retire from full-time executive work.
• Continue our work to improve diversity across the Group.
• With support from the Executive Management Team and
Group HR Director, continue to develop the succession
plan for those immediately below Board level and the
newly formed Executive Committee.
Key focus areas for the year ahead
• Board succession, considering the Board composition
and ensuring compliance with the requirements of the
Parker Reviews, the FTSE Women’s Leaders Review and
the FCA disclosure rules. With support from the Executive
Management Team and Group HR Director, continue to
develop the succession plan for those immediately below
Board level.
• To continue our work to improve diversity across the Group,
taking into account the recommendations from the Parker
Reviews, the FCA Diversity and Inclusion Policy Statement,
and the FTSE Women’s Leaders Review.
Key responsibilities and terms of reference
The main areas of the Nomination Committee’s (the
‘Committee’) responsibilities are:
• To review the structure, size and composition of the
Board, in accordance with the Board’s Diversity Policy,
and recommend to the Board any changes it considers
appropriate. This encompasses membership of the Board
Committees and the re-appointment, if appropriate, of
Non-Executive Directors at the end of their term of office.
• To consider succession planning not only within the
Board, but also immediately below Board level and ensure
appropriate plans are in place.
• To identify candidates to fill Board vacancies and nominate
these to the Board for approval. Appointments to the Board
are made on merit using a formal, rigorous and transparent
process against objective criteria recommended by
the Committee. These criteria take into account the
skills, knowledge and experience of existing members
of the Board and the importance of diversity, in all its
aspects, within the Board. The Committee is aware of
the recommendations of the Parker Reviews, the FTSE
Women’s Leaders Review and the FCA disclosure rules, and
will continue to take these into consideration when making
future Board appointments.
• The appointment of a Non-Executive Director is for a
specified term and re-appointment is not automatic, rather
itis made on the recommendation of the Committee.
• To consider diversity and inclusion targets for the Group.
• To carry out an annual Board evaluation of the Committee
and review the results of the Board evaluation in relation
tothe composition of the Board.
The Committee meets at least twice a year and operates
under its own Terms of Reference. These have been agreed
by the Board and are available at www.bellwayplc.co.uk/
investor-centre/governance/committees.
The members of the Committee are shown in the table
tothe left.
The Committee continues to recognise the importance
of gender and ethnic diversity as part of the succession
planning at all levels of the business.”
John Tutte
Chair of the Nomination Committee
Governance
116 Bellway p.l.c. Annual Report and Accounts 2024
Committee activities during the year
Appointment of Cecily Davis as an Non-Executive Director to
the Board in May 2024, expanding the breadth of knowledge
and expertise on the board and helping to comply with
the requirements of the Parker Reviews, the FTSE Women’s
Leaders Review and the FCA disclosure rules. The Committee
recognises the importance of gender and ethnic diversity as
part of succession planning and will continue to work towards
increasing the diversity of the current Board, while taking into
account the future retirement of the Group Finance Director,
the appointment to the Board of the Chief Commercial
Officer, and the current UK Code recommendations on Board
composition and size.
We continued our work to improve diversity and inclusion
across the Group, taking into account the various
recommendations from the Parker Reviews and the FTSE
Women’s Leaders Review. Building on the success of the
2023 Bellway Graduate Recruitment Programme, we continue
to look for the opportunities to recruit female candidates and
candidates from an ethic minority where possible, which
helps drive diversity within Bellway and provides possible
leaders of the future.
Further development of the Senior Leaders and Middle
Managers programmes, working with an external third party,
the Group HR team reviewed the current development
programmes to further improve upon them, looking at
sharing best practice and driving consistency across the
Group, which further supports the Group’s culture.
The Committee continued to develop, with support from the
Executive Management Team and Group HR Director, the
succession plan for those immediately below Board level
and Executive Committee. This exercise will look to promote
diversity and inclusion where possible.
The Committee had oversight of the following activities
undertaken by the Group HR function.
• Equality, diversity and inclusion e-learning continues to
be issued to employees and forms part of the mandatory
training a new employee must undertake. 60.3% of
employees have completed this training within three
months of joining Bellway.
• Partnering with external charities and organisations to
promote diversity and inclusion throughout Bellway,
including Leonard Chesire and Change100.
• Rolling out talent and succession planning training to
senior leaders and line-managers, focused on developing
graduates as part of our three-year talent strategy.
• Continuing to work with the Regional Chairs and Managing
Directors to develop progression and retention plans for
key employees within each division, promoting diversity
where possible.
Director and employee profile
The following tables show the gender and ethnicity split in the
Group as at 31 July 2024. Ethnic diversity was reported for the
first time in 2021. More detail on the Group’s efforts to improve
diversity can be found on pages 42 to 43:
Male
No.
Male
%
Female
No.
Female
%
Total
No.
Total
%
Board of Directors 4 57 3 43 7 <1
Executive
Committee and
direct reports
13 68 6 32 19 <1
Senior managers 146 82 32 18 178 7
Other employees 1,594 65 861 35 2,455 92
Total 1,757 66% 902 34% 2,659 100%
Asian or
Asian British
Black or
Black British
Mixed/Multiple
Ethnicity
Other
Ethnic/Arab
White British/
European/Non-
European
Any other
ethnic group
Prefer not
tosay
Board of Directors 0 1 0 0 6 0 0
Executive Committee and direct reports 0 0 1 0 18 0 0
Monthly paid employees 53 25 19 2 1,986 3 22
Weekly paid employees 0 14 3 1 497 1 7
Total 53 40 23 3 2,507 4 29
John Tutte
Chair of the Nomination Committee
14 October 2024
117Bellway p.l.c. Annual Report and Accounts 2024
Governance
Audit Committee Report
Membership and meeting attendance
Director
Date appointed to
theCommittee
Number of
meetings
attended during
theyear
Ian McHoul (Chair) 1 February 2018,
appointed
Committee Chair on
12 December 2018
4/4
Jill Caseberry 1 October 2017 4/4
Sarah Whitney 1 September 2022 4/4
Cecily Davis 1 May 2024 0/1*
* Absence was due to commitments prior to joining the Board.
Statement from the Chair of the Audit Committee
I am pleased to present the Audit Committee Report for the
year ended 31 July 2024. This Report provides an overview of
how the Committee operates, an insight into the Committee’s
activities during the year and its role in ensuring the integrity
of the Group’s financial statements and effectiveness of audit,
risk management and internal controls. We have worked
closely with our finance, and risk and internal audit teams,
along with Ernst & Young LLP (‘EY’), our external auditor,
throughout the year.
The Committee met four times during the year and the
attendance by Committee members can be seen above.
Key areas of focus during the year
As detailed in last year’s report, I set out our focus areas for
this year and I’m pleased to provide an update on these:
• Monitor the progress made by management in preparation
for forthcoming governance changes – an additional
meeting was held in September 2024 to discuss the
progress made by management against their strategy
for formally documenting and testing controls. We will
continue to monitor progress against our plan, which
includes formal documenting and testing (design and
operational effectiveness) of controls for IT, entity level and
material financial and commercial processes.
• Ensure the Group has the appropriate IT infrastructure
and operating environment – an update from the Group
IT Director in relation to the Group’s IT infrastructure and
operating environment was received at the January
meeting. A further update on the results of cybersecurity
penetration testing was received at the September meeting.
• Ensure that the Group continues to have the appropriate
disclosures as required by the TCFD in the 2024 Annual
Report and Accounts – the TCFD disclosures in the 2024
Annual Report and Accounts have been reviewed by
management and an update presented to the Committee.
It is anticipated that the reporting will continue to evolve in
future years.
• Continue to review the legacy building safety provision
– both component parts of this provision, namely the (i)
SRT and associated review provision; and (ii) structural
defects provision were discussed at both the March
and October meetings before the Interim Accounts and
Annual Report and Accounts were recommended to the
Board for approval. As part of this review, the Committee
dedicated a significant amount of time challenging the
assumptions and methodology used in calculating the
legacy building safety provision, along with the disclosure in
the financial statements.
• Ensure the early adoption of the requirements of the Audit
Committees and the External Audit: Minimum Standard
FRC report issued in May 2023 – a paper was presented at
the October 2023 meeting assessing our compliance and
presenting an action plan to meet all the requirements.
In addition, during the year, the Committee received a
presentation from the Group Production Managing Director in
relation to the commercial function across the Group. This set
out the relevant key findings of divisional compliance visits
and related action points, IT enhancements and a five-point
five-year framework setting out focus areas, strategy and how
this complements ‘Better with Bellway’.
Anticipated key areas of focus for the year ahead
• BEIS consultation – we will continue to monitor changes
in legislation and the UK Corporate Governance Code
resulting from the initial BEIS and subsequent Financial
Reporting Council (‘FRC’) consultation process. In addition,
we will monitor progress made by management against
their strategy for formally documenting and testing the
related controls.
• IT security – we will monitor the enhancement plan
presented following the penetration testing performed
in the year to ensure it is delivered on time and to the
required standard.
This report provides an overview of how the Committee
operates... and its role in ensuring the integrity of the
Group’s financial statement and effectiveness of audit,
risk management and internal controls.”
Ian McHoul
Chair of the Audit Committee
Governance
118 Bellway p.l.c. Annual Report and Accounts 2024
• Sustainability reporting – we will review the Group’s TCFD
disclosures in the Annual Report and Accounts 2024 and
consider what additional requirements will be needed for
compliance with IFRS S1 and IFRS S2.
• Legacy building safety provision – we will continue
to review this provision to ensure the approach and
assumptions are appropriate as more detailed information
becomes available.
• EY audit partner rotation – the Committee will work with EY
to identify the new EY engagement partner to replace the
incumbent who will rotate off after completing five years
in post, following the completion of the audit for the year
ended 31 July 2025.
Committee governance and competence
In May 2024, Cecily Davis joined the Committee, which
subsequently comprised four independent Non-Executive
Directors. Throughout the period, the Committee members
had significant and diverse experience, and I believe
that between us we have an appropriate and relevant
combination of experience and knowledge.
I am a Chartered Accountant. Previously I served Scottish
& Newcastle plc from 1998 to 2008, first as Finance Director
of Scottish Courage and later as Group Finance Director of
Scottish & Newcastle plc, before becoming Chief Financial
Officer of Amec Foster Wheeler plc until 2017. I was Chair of
Videndum plc and was Chair of the Audit Committee and a
member of the Remuneration Committee of Young & CO.’s
Brewery P.L.C. The Board considers that I have recent and
relevant financial experience as required by the Corporate
Governance Code (the ‘Code’). As part of the effectiveness
review, the Nomination Committee has also confirmed that it
is confident that the collective and broad experience of the
members enables us to act effectively as an Audit Committee.
Further information on the experience and knowledge of the
Committee members is included in the Directors’ biographies
on pages 106 to 107.
In line with the Terms of Reference, there were four meetings
of the Committee during the year, with three regular
meetings scheduled in line with the Group’s financial
reporting timetable and the other being a one-off meeting
to review and approve fees, prior to the commencement
of any work relating to the Crest Nicholson transaction that
was subsequently aborted. All members of the Committee
attended each meeting that occurred after their appointment,
apart from Cecily Davis who was unable to attend a meeting
in May due to a prior commitment that had been arranged
before she became a Non-Executive of the Group.
The Chair of the Board, Group Chief Executive, Group
Finance Director, Group Chief Commercial Officer and
Company Secretary (formally the Group General Counsel and
Company Secretary), Group Financial Controller and Group
Risk Director attend meetings by invitation. Furthermore, the
Group Production Managing Director, Group Head of Finance
Services and Group IT Director attended parts of certain
meetings. The Committee is supported by the Deputy Group
Company Secretary who acts as Secretary to the Committee.
Representatives of EY attended the three regular meetings
during the year and they, along with the Group Risk
Director, also met with the Committee independently of
management. Any matters raised during discussions with
the external auditors and the Committee were discussed
appropriately with executive management. I also had further
discussions, independently of each other, with the Group
Finance Director, Group Risk Director and external auditor
and reported relevant information to other members of
the Committee.
Detailed papers are prepared and circulated in advance of
Committee meetings by both management and the external
auditor, thereby allowing informed discussions, challenge,
and decision-making to take place.
Committee purpose and responsibilities
The Committee supports the Board in achieving the objectives
of the corporate governance framework, with its principal
activities focused on:
• the integrity of financial reporting;
• the quality of narrative reporting;
• the quality and effectiveness of internal controls and risk
management systems;
• procedures relating to the prevention and detection of
fraud and bribery;
• risk and internal audit; and
• external audit.
A comprehensive version of the Committee’s Terms
of Reference is available on the Group’s website at
www.bellwayplc.co.uk/investor-centre/governance/committees.
A review of the Terms of Reference during the period
determined that they remain appropriate and in line with best
practice, reflecting the Committee’s responsibilities in line with
both the Code and other regulations.
Committee evaluation and effectiveness
Every three years the Board appoints an external organisation
to perform an independent review of the Committee to
evaluate its performance. This review was performed in
the prior year and concluded that the Committee was
effective and provides a robust and independent challenge,
underpinned by professional respect from all attendees.
During the year, the Committee assessed both the
performance of the Committee as a whole and that of its
individual members. This was externally facilitated and no
major areas of improvement were identified.
Following a review of these results, I consider the Committee
to be effective and it provides a robust and independent
oversight over the financial reporting, narrative reporting,
internal control and risk management, fraud and bribery
prevention and detection, risk and internal audit, and
external audit activities of the Group. The Committee has an
appropriate and complementary set of skills and experience
that enables it to deliver the aforementioned activities.
119Bellway p.l.c. Annual Report and Accounts 2024
Governance
Audit Committee Report continued
Committee activities during the year and post year-end
The activities undertaken at the October 2024 meeting concluded the Committee’s activities in relation to the Group’s financial
reporting for the year ended 31 July 2024.
The main activities performed by the Committee at these meetings are described below:
Meetings during the year
Post year end
meetings
Activity /review
October
2023
January
2024
March
2024
May
2024
September
2024
October
2024
Financial reporting
Reviewed the final draft of the Annual Report and Accounts, together with
a report produced by EY, which detailed their findings both on areas of key
financial reporting matters and other areas of audit focus.
Reviewed the final draft of the Interim Announcement.
Received a paper, on significant judgemental areas prepared by management,
including the controls, and provided appropriate challenge.
Reviewed a paper which analysed notable one-off items, both those separately
disclosed on the face of the income statement or otherwise, that affected profit
during the period and provided challenge of the treatment of these.
Considered and challenged a paper produced by management setting out
the accounting approach used for the SRT and associated review provision
and related expense. This consisted of understanding the approach taken in
identifying apartment blocks dating back to April 1992 that could fall within the
scope of the SRT, cost estimates applied, inflation and discounting assumptions
along with ensuring the associated disclosures are clear and understandable.
The Committee challenged management’s cost and inflation assumptions,
including considering a sensitivity paper, and believed management’s
proposed assumptions to be appropriate.
Considered and challenged a paper produced by management setting out
the accounting approach used for the structural defects provision and related
expense. This consisted of understanding the technical background of the
issue, the basis of the cost estimate, inflation and discounting assumptions,
along with ensuring the associated disclosures are clear and understandable.
The Committee challenged management’s cost and inflation assumptions, and
believed management’s proposed assumptions to be appropriate.
Considered and challenged management about the use of APMs and whether
they were appropriate, or whether GAAP measures would be more relevant.
Reviewed, discussed, and challenged a paper produced by management
setting out the rationale for preparing the Annual Report and Accounts and the
Interim Announcement on a going concern basis. The paper incorporated a
sensitivity analysis based on the Group’s internal forecasts.
Reviewed and approved the appropriateness of disclosures in relation to the
ongoing CMA Market Investigation.
Received an update on the year-end process focusing on the significant
judgement areas.
Narrative reporting
Concluded that the Annual Report and Accounts presented a fair, balanced
and understandable assessment of the Group’s position and prospects after
considering reports from both internal audit and the external auditor. The
Committee recommended the Annual Report and Accounts to the Board for
approval.
Reviewed the draft viability statement to appear in the Annual Report and
Accounts, together with the supporting assumptions and financial forecasts.
Internal control and risk management systems
Reviewed compliance with the Group policies in the period.
Reviewed a paper setting out the effectiveness of the internal control and risk
management framework during the year.
Reviewed and approved the Slavery and Human Trafficking Statement.
Governance
120 Bellway p.l.c. Annual Report and Accounts 2024
Meetings during the year
Post year end
meetings
Activity /review
October
2023
January
2024
March
2024
May
2024
September
2024
October
2024
Internal control and risk management systems continued
Received an update on the changes to the UK Corporate Governance Code
project and reviewed the progress made by management against their strategy
for formally documenting and testing controls.
Reviewed and approved the Slavery and Human Trafficking Statement.
Reviewed and approved the Group’s Corporate Criminal Offence Policy
andrisk asessment.
Prevention and detection of fraud and bribery
Reviewed a paper produced by management setting out the main controls
forpreventing and detecting fraud.
Reviewed the Group’s policies and procedures in relation to Whistleblowing,
Anti-Bribery and Corruption, Anti-Slavery and Data Protection.
Reviewed the Group’s policies and procedures in relation to Anti-Money
Laundering.
Risk and internal audit
Reviewed and challenged a risk management and internal audit update.
Considered whether the interaction between the Group risk and audit function
(internal audit) and external auditor during the period had been appropriate.
Reviewed and considered the effectiveness of the Group risk and auditfunction.
Held a one-to-one meeting with the Group Risk Director.
Reviewed and approved the Risk Management Policy.
Reviewed the Internal Audit Charter and provided feedback on the proposed
2024 Internal Audit plan.
Received an update on the IT department, details of a disaster recovery
simulation test and the results of cybersecurity penetration testing.
Received a presentation from the Group Production Managing Director in
relation to the commercial function across the Group. This set out the relevant
key findings of divisional compliance visits and related action points, IT
enhancements and a five-point five-year framework setting out focus areas,
strategy and how this complements ‘Better with Bellway’.
External audit
Assessed the performance of the external auditor, including obtaining
an explanation from EY in relation to the firm-wide annual Audit Quality
Inspection findings compared to their peers and understanding the effect,
ifany, these had on the Bellway audit.
Challenged and approved EY’s audit plan, including the proposed Group,
subsidiary, and divisional materiality for the 2024 audit.
Reviewed the EY engagement letter and approved the audit fee for FY24.
Approved the Independent Auditor Policy.
Held a private meeting with EY.
Approved the Recruitment of Auditor Staff Policy.
Reviewed a report produced by management setting out the requirements of
the FRC report ‘Audit Committees and the External Audit: Minimum Standard’
and agreed a strategy of how the Group will early adopt the requirements.
Approved (i) the appointment of EY and KPMG as Reporting Accountants; and
(ii) the associated fees relating to the aborted Crest Nicholson transaction.
Governance
Considered the findings of the performance evaluation of the Committee.
Reviewed the terms of reference of the Committee, number of meetings and
skills and experience of the Committee. No items were identified that needed
to be updated.
121Bellway p.l.c. Annual Report and Accounts 2024
Governance
Audit Committee Report continued
Integrity of financial reporting
Significant financial reporting matters
The table below sets out the matters considered, and the action performed, by the Committee during the year in relation to the
significant financial reporting matters of the Group.
Key financial matters
Information provided
by management
Challenge by the
external auditor
Committee assessment
and conclusion
Revenue recognition
Matter considered
Revenue of £2,380.2 million has
been recognised in the year.
The majority of housing revenue
is recognised on a point in time
basis either i) when the completed
dwelling is transferred to the
customer; or ii) when the home is
build is complete and all material
contractual obligations have been
satisfied. For a small number of
contracts, revenue is recognised
over time from the point that the
land is irrevocably transferred to
the customer.
Management outlined
the existing systems and
controls surrounding
revenue recognition.
The Committee
discussed these controls,
challenging management
where appropriate.
The external auditor
explained to the
Committee that they had:
• reviewed the
appropriateness
of the Group’s
Revenue Recognition
Accounting Policy;
• used data analytics to
identify any anomalies,
which were investigated;
• reviewed internal audit
work in relation to sales
cut-off;
• agreed a sample of legal
completions to source
documentation; and
• reviewed manual
journals posted to
numerous accounts
selected using
risk criteria.
The Committee understood
the Group’s Revenue
Recognition Policy.
The Committee also reviewed
a summary prepared by EY
explaining the findings from
their work assessing the
design of the Group’s systems
and controls pertaining to
revenue recognition.
Following enquiries with
management and the external
auditor, the Committee
concluded that there are
appropriate systems and
internal controls in place
to ensure revenue is
recognised appropriately, and
that the Group’s Revenue
Recognition Policy has been
properly applied in these
financial statements.
Cost of sales (before net legacy building safety expense) recognition
Matter considered
Cost of sales (before net legacy
building safety expense) of
£1,999.1 million has been recognised
on housing and other revenue.
Cost of sales for completed housing
sales is recognised based on the
latest whole site/phase margin,
which is derived as part of the
site/phase valuation process.
These valuations are updated
frequently throughout the life of
the site/phase and include both
actual and forecast selling prices,
land costs and construction costs.
The forecast costs and revenues
are estimates and are inherently
uncertain due to potential changes
in market conditions.
Management outlined
the existing systems and
controls surrounding
gross profit recognition
and the valuation
process. The Committee
discussed these controls,
challenging management
where appropriate.
The external auditor
explained to the
Committee that they had:
• reviewed the
appropriateness
of the Group’s
Margin Recognition
Accounting Policy;
• attended valuation
meetings; and
• performed Group-wide
analytical reviews; and
challenged assumptions
in relation to forecast
selling prices and costs.
The Committee understood
the Group’s Gross Profit
Recognition Policy.
The Committee also reviewed
a summary prepared by EY
explaining the findings from
their work assessing the
design of the Group’s systems
and controls pertaining to the
valuation process.
Following enquiries with
management and the external
auditor, the Committee
concluded that there are
appropriate systems and
internal controls in place
to assess and quantify
both actual and forecast
selling prices and costs,
and that the Group’s Gross
Profit Recognition Policy is
appropriate, and has been
properly applied in these
financial statements.
Governance
122 Bellway p.l.c. Annual Report and Accounts 2024
Key financial matters
Information provided
by management
Challenge by the
external auditor
Committee assessment
and conclusion
Carrying amount of land and work-in-progress
Matter considered
Land and work-in-progress are
the most significant assets on
the Group’s balance sheet and
at 31 July 2024 had a book value
of £4,555.3 million. The carrying
value of land and work-in-progress
is affected by both the revenue
recognition and gross profit
recognition policies of the Group.
In addition, all inventory is held at
the lower of cost and net realisable
value, which is determined by the
whole site/phase margin as set out
in the ‘cost of sales recognition’
section. The risk for any site/
phase, currently trading or not, is
that the whole site/phase margin
may be negative resulting in a net
realisable value that is below cost.
Divisional management review all
sites/phases to ensure any with
a negative forecasted whole site/
phase margin have an appropriate
provision, and this has been
re-assessed at regular intervals
during the year.
Management set out
details of the land
and work-in-progress
impairment review process
and the outcome of this.
Management provided
a summary of this work,
which was considered by
the Committee.
The external auditor
explained to the
Committee they had:
• reviewed land with
either internal or external
impairment indicators
and discussed these
with management;
• focused on the
Group’s pipeline and
strategic land interests
and challenged
management on their
assessment of the
recoverable amount;
and
• performed enquires
with management.
This included the
procedures identified
in relation to profit
recognition and a review
of the latest site/phase
valuation for all sites/
phases active during the
year and those that are yet
to commence production.
The Committee reviewed
and understood the Group’s
methodology in reviewing the
carrying value of the Group’s
land and work-in-progress
and the surrounding controls.
Following enquiries with
management and the external
auditor, the Committee
concluded that there are
appropriate systems and
internal controls in place to
assess the carrying value
of the Group’s land and
work-in-progress, and that the
carrying value of these assets
in the financial statements
is appropriate.
Going concern
Matter considered
The financial statements have been
prepared on a going concern basis.
If the financial statements were not
prepared on this basis, significant
adjustments and presentational
changes would be required to the
balance sheet.
Management produced
a paper setting out
detailed forecasts and
adverse scenarios
compared to a base case
forecast. These were then
compared against the
Group’s banking facilities
to show the expected
headroom and bank
covenant compliance.
This showed that the
Group could continue
to meet its liabilities as
they fall due during the
review period.
The external auditor
explained to the
Committee they had:
• reviewed and
challenged the Group’s
assessment of going
concern and obtained
an understanding of
significant assumptions;
• challenged the Group’s
downside and reverse
stress testing scenarios;
• reviewed the effect of
the various scenarios
on debt headroom
and covenants;
• recalculated debt
covenants; and
• considered the accuracy
of previous forecasts.
Following a review of this
paper and challenge of both
management and the external
auditor, the Committee
concluded that the going
concern basis of preparation
continues to be appropriate
in the context of the Group’s
expected funding and
liquidity position.
Further details in relation to
the Group’s going concern
and viability assessment can
be found on pages 81 to 82.
123Bellway p.l.c. Annual Report and Accounts 2024
Governance
Audit Committee Report continued
Key financial matters
Information provided
by management
Procedures performed by the
external auditor
Committee assessment
and conclusion
Legacy building safety improvement provision
Matter considered
Legacy building safety improvement
provision totalling £509.2 million
was recognised in the balance
sheet as at 31 July 2024.
There are two components of the provision as set out below:
SRT and associated review
The Committee reviewed
a paper setting out the
IAS 37 requirements for
recognising a provision.
The paper set out the
approach taken in
identifying apartment
blocks dating back to April
1992 that could fall within
the scope of the SRT,
cost estimates applied,
inflation and discounting
assumptions along with
ensuring the associated
disclosures are clear
and understandable.
The Committee
challenged management’s
cost and inflation
assumptions, and after
considering a sensitivity
paper concluded
that management’s
proposed assumptions
are appropriate.
The external auditor
explained to the
Committee they had:
• reviewed the
completeness of
the Group’s model
capturing the potential
developments that fall
under the scope of
the SRT;
• reviewed the detailed
cost estimates;
• challenged assumptions
relating to cost inflation,
timing of spend and the
discount rate; and
• reviewed the disclosures
in relation to the
SRT and associated
review provision.
Overall
Following a review of these
papers, and challenge of
management and the external
auditor, the Committee
concluded that the legacy
building safety improvement
provision consisting of (i) the
SRT and associated review;
and (ii) the structural defects,
held in the balance sheet and
the associated disclosures
are appropriate.
Structural defects
The Committee reviewed
a paper setting out the
background of the issue,
how the risk has been
quantified, inflation and
discounting assumptions
along with ensuring the
associated disclosures are
clear and understandable.
The Committee challenged
management’s cost and
inflation assumptions
and concluded
that management’s
proposed assumptions
are appropriate.
The external auditor
explained to the
Committee they had:
• reviewed the detailed
cost estimates;
• challenged assumptions
relating to cost inflation,
timing of spend and the
discount rate; and
• reviewed the
disclosures in relation
to the structural
defects provision.
Governance
124 Bellway p.l.c. Annual Report and Accounts 2024
Key financial matters
Information provided
by management
Procedures performed by the
external auditor
Committee assessment
and conclusion
Adjusting items expense disclosure
Matter considered
A pre-tax net adjusting items
expense of £42.4 million has
been recognised in the year.
This has two component parts (i)
net legacy building safety expense
of £37.0 million; and (ii) aborted
transaction costs of £5.4 million.
Separate disclosure is required on
the face of the income statement
when, in the opinion of the Board,
a transaction is material by size or
nature and of such significance
that it is necessary to give a proper
understanding of the results.
Management produced
a paper setting out
the accounting and
presentational requirements
of IFRSs relating to the
separate disclosure of
material items of income or
expense that could affect
decisions made by the
primary users of the Annual
Report and Accounts.
This paper used the above
framework, which set out
the treatment of whether
the net legacy building
safety expense and aborted
transaction costs should
be disclosed separately.
The paper ensured the
principles agreed in the
previous year had been
consistently applied.
The external auditor
explained to the
Committee they had:
• reviewed the disclosures
in relation to the net
legacy building safety
expense and aborted
transaction costs.
The Committee provided
careful consideration to the
judgements made in the
presentation and disclosure of
both the net legacy building
safety expense and aborted
transaction costs, ensuring
the Annual Report and
Accounts as a whole provides
a balanced view, including
the presentation of GAAP
measures and APMs.
Following enquiries
with management and
the external auditor, the
Committee concluded
that both the net legacy
building safety expense and
aborted transaction costs
are appropriately presented
and disclosed in the
financial statements.
The Committee considers climate change, and although it is not considered a key audit matter, EY utilise some of their audit
effort considering the impact of potential climate-related risks on the Group’s Annual Report and Accounts, both quantitively in
the financial statements and narratively elsewhere in the wider report, including in relation to going concern and the long-term
viability statement. A specific climate-related risk considered during the audit was in relation to the effect on the valuation of
inventory arising from the requirements of the Future Homes Standard, and whether the necessary future costs were included
in site margin, itself being a key audit matter. No issues were identified as part of this work. The Committee concluded that
climate change and the associated risks are appropriately included and disclosed in the financial statements.
The Committee did not specifically ask EY to focus on any particular areas during the audit as they considered the key financial
matters and audit scope to be appropriate, and had no specific concerns in relation to other areas of the Group.
Long-term viability statement
In accordance with provision 31 of the Code and the FRC guidance on Risk Management, Internal Control and Related Financial
and Business Reporting, the Committee challenged management on the assumptions, methodology and timespan that the
viability statement covers.
A paper by management was considered by the Committee, which set out the resilience of the Group to the emerging and
principal risks and uncertainties to various adverse sensitivities using different scenarios. These scenarios included a reduction
in both the total number of legal completions and private average selling price, with both sales and administrative overheads,
land spend, and construction spend reducing accordingly. The results were then compared to the Group’s financing facilities to
ensure sufficient headroom exists and compliance with debt covenants, and to determine whether the Group could continue
to meet its liabilities as they fall due.
The paper concluded that the viability statement and going concern basis of preparation is appropriate. This was then
recommended to the Board for approval.
125Bellway p.l.c. Annual Report and Accounts 2024
Governance
Audit Committee Report continued
Quality of narrative reporting
2024 Annual Report and Accounts: fair, balancedandunderstandable
The Group Risk Director provided a paper to the Committee to assist them in concluding whether the 2024 Annual Report and
Accounts are fair, balanced, and understandable. This independent review of the Annual Report and Accounts ensured the
various components satisfied the requirements when read as a whole. This review also considered whether feedback provided
by shareholders in respect of the 2023 Annual Report and Accounts has been reflected.
In addition, the Committee performed a comprehensive review of the Annual Report and Accounts considering items such as:
Fair Balanced Understandable
• The Annual Report and Accounts
provide a comprehensive review of
the Group’s strategy and activities
during the year, which is consistent
with the business model.
• The Annual Report and Accounts
provide a balanced view of the
performance and position of the entity,
with both significant positive and
negative points disclosed.
• The Annual Report and Accounts are
clear and understandable, and have
consistent messaging throughout.
• The narrative section is both
consistent throughout and also with
the financial results and performance.
• The key accounting judgements
considered by the Committee are
appropriately disclosed and are
consistent with those considered
by EY.
• There are clear links between the
strategy and KPIs.
• Market conditions are clearly
described, and the emerging and
principal risks and uncertainties are
both accurate and complete.
• The Annual Report and Accounts
provides a balance between statutory
and adjusted performance measures.
• The KPIs and APMs have remained
consistent and there has been no
change in the methodology, and they
are reconciled to statutory measures
where appropriate.
• All material transactions and issues
faced by the Group are included
within the financial statements and
disclosed where required.
• The Annual Report and Accounts
provide a clear and consistent theme
and tone with the Group’s other
external reporting requirements.
• The Group has sufficient distributable
reserves when compared to the
proposed dividend.
The Committee concluded that the 2024 Annual Report
and Accounts:
• when taken as a whole, is fair, balanced and
understandable; and
• provides the necessary information for shareholders to
assess the Group’s position, performance, business model
and strategy.
ESG and climate risk considerations
ESG and climate risks are considered by the Board due
to their importance, although the associated disclosure
requirements, processes and controls are separately reviewed
by the Committee. The Committee is aware of the increasing
significance of ESG reporting matters with the Group having
established a road map for climate risk disclosures relating to
its Annual Report and Accounts. This, along with updates from
EY throughout the year, has enabled the Committee to review
and assess the disclosures included in the 2024 Annual
Report and Accounts.
Quality and effectiveness of internal controls
andrisk management systems
The Committee is responsible for reviewing and assessing
the Group’s internal controls and risk management systems
and providing guidance on these to the Board. The Board is
responsible for reviewing the effectiveness of the system of
internal controls.
Throughout the year, the risk register for the Group has been
reviewed and updated by management on a quarterly basis.
This review includes ensuring the completeness of risks,
assessing their likelihood, their impact, and the effectiveness
of the control environment to mitigate the risks.
Risk is considered by the Board with a full review of the risk
register taking place at least annually. The internal control and
risk management process only reduces the risk of material
misstatement or loss and does not eliminate this risk completely.
The emerging and principal risks facing the Group, which
are described in the Strategic Report on pages 83 to 87,
are regularly reviewed and cover all aspects of Bellway’s
operations including land acquisition, planning, construction,
health and safety, sales, HR, IT, legal and regulatory
compliance, and climate change.
The continuing role of the Board is, on a systematic and
ongoing basis, to review the key emerging and principal
risks inherent in the business, the operation of the systems
and controls necessary to manage such risks and their
effectiveness, and to satisfy itself that all reasonable steps are
being taken to mitigate these risks.
Governance
126 Bellway p.l.c. Annual Report and Accounts 2024
The key areas of control are as follows:
• The Board has agreed a list of key risks, which affect the
Group, that are reviewed throughout the year and has
considered the extent to which the measures taken by the
Group mitigate those risks.
• The acquisition of land and land interests is initiated by
divisional management and reviewed by the appropriate
Regional Chair prior to submission to Head Office for
approval. All land acquisitions must achieve minimum
financial acquisition criteria and are subject to approval
by the Executive Directors, and in certain circumstances,
approval by the Board.
• A comprehensive monitoring and reporting system is in
place including annual budgets, monthly forecasting, and
management reporting, incorporating variance analysis and
commentary. This is produced by divisional management
and reviewed by the Regional Chairs and functional
heads at Head Office. Summaries are also provided to the
Executive Directors.
• Monthly divisional board meetings are held to review
divisional performance, which are attended by the Regional
Chairs. The Executive Directors attend divisional board
meetings on a rolling basis, and this is supplemented with
Non-Executive Director visits to divisions.
Review Focus and outcomes
Legal completions
(half-year and year-end)
2 reviews
Testing of legal completions is undertaken on a bi-annual basis to check that transactions have
been recorded and recognised in the correct period, with appropriate supporting documentation.
For FY24, this work provided positive assurance that the processes operate effectively and
prevent the occurrence of cut-off issues.
Divisional compliance
10 reviews
These reviews assess whether the design and operation of accounting, land acquisition and
commercial processes in trading divisions is compliant with the requirements of key Group
policies. Findings and recommendations have resulted in policy improvement, updated
procedural guidance, and focused training for divisional management.
Journals (half-year and
year-end)
2 reviews
Testing of journals is undertaken on a bi-annual basis to check the validity and accuracy of a
sample of transactions and confirm that appropriate journal reviews are being undertaken by the
trading divisions. For FY24, there were no major findings.
Modern slavery –
subcontractors
17 site visits
This work included an audit of trades at 17 sites. The work provided positive assurance
that the Group takes its responsibilities surrounding modern slavery seriously and raised
minor recommendations, which have further enhanced third-party onboarding and
induction processes.
Anti-money
laundering procedures
This work assessed the design and operating effectiveness of the Group’s anti-money laundering
procedures, including training and communications. The work provided positive assurance that
the Group takes its compliance obligations seriously and raised minor recommendations to
further enhance processes and compliance.
Duplicate payments
2 reviews
Analysis of payments data was undertaken at the half-year and year-end, identifying a very
small number of low-value duplicate payments that have since been recovered. Despite the
immaterial value, preventative controls have been reviewed and strengthened to reduce the risk
of recurrence in future.
Cyber penetration testing A third party performed external, internal and wireless infrastructure penetration testing.
The testing aims to identify security weaknesses that may be exploited by an attacker or malicious
user that has authenticated access to the infrastructure. The report identified some areas where
the Group’s already robust IT control environment could be further improved. An enhancement
action plan was presented alongside the report.
Regulatory
compliance training
This risk assessment offered several recommendations to help further drive timely completion
and effective monitoring of compliance-based training.
Where any control recommendations are made by the external auditors, these are considered, and where relevant are
implemented to further strengthen the control environment.
• Site/phase valuations are produced periodically throughout
the life of a site/phase, with a summary of the actual and
forecast costs and revenues produced at a divisional level
prior to review by the divisional management team and
Head Office team.
• During the year the Group set up an Executive Committee
which includes the Executive Directors, Regional Chairs
and other senior Group management. This committee
focuses on key strategic and operational matters affecting
the Group. The minutes from these meetings are provided
to the Board for review.
• Regular visits to sites by in-house health and safety teams
and external consultants to monitor health and safety
standards and performance.
• A central treasury function operates at Head Office ensuring
the appropriate financing is obtained for the Group as
a whole.
• A number of the Group’s key functions are dealt with
centrally. These include taxation, pensions, insurance, IT,
legal, HR, regulatory compliance and company secretarial
functions. This centralisation ensures a consistent approach
and the appropriate range of skills to manage these
specialised areas.
Throughout the year, the Committee received reports
from the Group Risk and Audit team on the following areas
of focus.
127Bellway p.l.c. Annual Report and Accounts 2024
Governance
Audit Committee Report continued
Procedures relating to the prevention and
detection of fraud and bribery
Whistleblowing
The Group’s Whistleblowing Policy is well publicised at all
locations and allows all employees and members of the
supply chain to raise concerns in confidence to either the
Chief Commercial Officer and Company Secretary, Deputy
Group Company Secretary or, alternatively, an independent
third party. The Group encourages employees and members
of the supply chain to raise any concerns in an open
and honest way. These concerns could be in relation to
possible wrongdoing in financial reporting, breaches of
Group policies and procedures, or other matters such as
harassment, bullying, money laundering, modern slavery,
or discrimination.
All whistleblowing reports are reviewed and confidentially
investigated by senior, independent personnel and the
findings are reported to the Board.
During the year, the Committee approved minor changes to
the Whistleblowing Policy.
Bribery Act
The Group’s Anti-Bribery and Corruption Policy and
procedures are circulated throughout the Group and are
included on the Group’s intranet.
Internal audit
Testing of processes which help the Group prevent and
detect fraud is undertaken as part of a rolling programme
throughout the year by the Group Risk and Audit function
and is focused in the following areas: bank reconciliations,
employee expenses, payments, journal transactions, sales
completions, site valuations and supplier bank details.
Risk and internal audit
The Group has a risk and audit function which, in part,
performs internal audit reviews. The Group Risk Director has
a direct reporting line into both the Group Finance Director
and myself. During the year the Group Risk and Audit function
undertook a number of internal audit reviews, utilising
specialists from within relevant functions where appropriate.
The Group Risk Director provided the Committee with a
summary of the findings together with recommendations
to further enhance the control environment. A register
is maintained centrally which monitors progress against
any system and control enhancements to ensure they
are implemented appropriately and in a timely and
controlled manner.
External audit
Audit performance and effectiveness
The external auditor of the Group is EY. EY continues to
provide robust challenge to management and provides its
independent view to the Committee on specific financial
reporting judgements and the control environment across
the Group.
EY’s performance is regularly reviewed by both management
and the Committee, and this is done formally on an
annual basis.
The Committee considered a paper produced by
management, which used the FRC practice aid ‘Audit Quality
– Practice aid for Audit Committees’ as a basis.
The review consisted of:
• Considering the robustness and appropriateness of EY’s
approach to auditing the significant risk areas facing
the Group.
• Considering whether EY’s materiality proposal for the
previous financial year, which was the most up-to-date
information held at the date of review, was set at an
appropriate level for the component parts of the Group.
• Discussions with management who were involved in the
financial reporting processes.
• An understanding of the findings of the Audit Quality
Inspection (‘AQI’) results that were published by the FRC
on 6 July 2023, following their inspection of audit firms
including EY. This included understanding whether any of
the findings would have affected the Bellway audit.
• An understanding of the Audit Quality Review (‘AQR’) and
internal EY quality review findings, specifically in relation to
the engagement partner, Mark Morritt.
• Considering EY’s independence, objectivity, and
professional scepticism.
• Reviewing the performance of EY against their audit
strategy for FY23, the most recent completed audit
cycle, and their interaction with the Committee during
the process.
• Considering where EY have added value and
demonstrated proactivity.
Following this review, the Committee recommended to the
Board, which is in turn recommending to the shareholders,
that EY be re-appointed as auditor of the Group.
Auditor rotation
The Committee acknowledges the provisions contained in
the Code in respect of audit tendering. In conformance with
these requirements, Bellway will be required to tender the
external audit no later than for the 2030 financial year-end.
Governance
128 Bellway p.l.c. Annual Report and Accounts 2024
Auditor independence and non-audit fees
The Independent Auditor Policy, which seeks to preserve
the independence of the external auditor by defining those
non-audit services, which the external auditor may and may
not provide, was reviewed during the year.
Any non-audit engagement with the external auditor needs
to be approved, in advance, by the Chair of the Audit
Committee, and retrospectively by the Audit Committee.
During the year, EY were engaged alongside KPMG LLP as
reporting accountants to perform certain non-audit related
services in relation to the aborted Crest Nicholson transaction.
Certain workstreams were allocated to EY as they are
typically performed by the external auditor and to generate
efficiencies, with the other workstreams allocated to KPMG.
Before seeking formal Committee approval of the workstream
allocation, EY obtained upfront approval from the Financial
Reporting Council to exceed the non-audit services fee cap
when looking over a two-year period.
The Committee recognises and supports the independence
of auditors, and it considered and approved the proposal to
use EY for these non-audit services at a specially convened
meeting, along with the fee estimates for both EY and KPMG.
This is the first year since EY were appointed as auditor
that Bellway have used them for non-audit services, with
independence maintained as the Committee expects the
non-audit service spend with the external auditor will revert
back to the historical norm.
For an analysis of fees paid to EY see note 4 to the accounts.
The ratio of non-audit fees for the year to the external audit
fee was 0.83:1.00.
Following the conclusion of the audit for the year ended
31 July 2024, Mark Morritt will have completed four years
out of the normal maximum of five years as EY engagement
partner. During the year ending 31 July 2025, the Committee
will work with EY to identify the new EY engagement
partner and ensure processes are in place to enable a
smooth transition.
The Committee considers EY to be independent and EY, in
accordance with professional ethical standards, provided the
Committee with written confirmation of its independence
throughout the year. The Committee monitors all fees paid to
the external auditor at each Committee meeting.
The Group has a policy that includes certain restrictions on
the recruitment of employees from the external auditor.
The Committee confirms there are no independence issues
in relation to the external auditor and that these policies have
been adhered to throughout the year.
Ian McHoul
Chair of the Audit Committee
14 October 2024
129Bellway p.l.c. Annual Report and Accounts 2024
Governance
Annual Statement
Dear Shareholder
I am pleased to present the Report of the Remuneration
Committee (the ‘Committee’).
This Report is divided into three sections: my statement; the
Directors’ Remuneration Policy being put to shareholders at
the 2024 Annual General Meeting; and our annual report on
remuneration for the 2023/24 financial year.
Performance in 2023/24
The Group has delivered another resilient performance
despite the continuation of challenging operating conditions
during the year. While a lower starting forward order book
drove a reduction in volume output, customer demand
during the year has benefitted from a moderation in
mortgage interest rates, which has helped to ease affordability
constraints and supported an increase in reservations.
The improving trading backdrop, combined with the strength
of our outlet opening programme, has generated healthy
growth in the year-end order book. As a result, we are in a
strong position to return to growth in 2024/25.
2023/24 Remuneration outcome
During the financial year, the Committee continued to
operate a remuneration structure based on the three core
elements of: basic salary; annual cash bonus, subject to the
deferral policy; and a share based long-term incentive plan,
which it considers closely aligns management interests with
those of stakeholders.
The 2023/24 annual bonus was subject to underlying
operating profit, adjusted capital employed and strategic
performance measures. The Committee is very conscious that
the housebuilding sector is highly cyclical and so sets bonus
targets by reference to a combination of market consensus
forecasts, the stretching goals we set in the annual business
plan and internal forecasts for the year.
Forecasts for 2023/24 were lower than the previous year
across the housebuilding sector following the higher levels
of performance in 2021/22. Forecasts for 2024/25 are for a
return to growth and bonus targets are being set for the year
reflecting this. Based on performance across the year, which
included exceeding the profit target by 12%, the Committee
has awarded the Executive Directors a bonus payment of
108% of basic salary.
Remuneration Report
The Committee continues to operate a remuneration
structure… which it considers closely aligns
management interests with those of stakeholders.”
Jill Caseberry
Chair of the Remuneration Committee
The Committee is comfortable that the formulaic outcome
of the bonus reflects wider business performance, and as a
result, no discretion has been applied. In line with the policy
in place for 2023/24, any bonus in excess of 100% of salary will
be deferred into shares and held for three years. As a result,
8% of salary will be deferred.
The 2021/22 LTIP awards are eligible to vest based on
performance over the three financial years to 31 July 2024.
Performance was based on EPS, relative TSR vs a bespoke
peer group of housebuilders and relative TSR vs the FTSE
350 (excluding financial services and investment trusts).
Based on performance over the period, the awards will lapse.
The Committee believes that this outcome is appropriate and
no discretion has been applied.
The Committee is comfortable that actions taken on pay
during the year across the Company were appropriate
and balanced the interests of all stakeholders, and that the
Remuneration Policy operated as intended.
Directors’ Remuneration Policy
Our current Remuneration Policy was approved at our 2021
AGM and is due for renewal at our 2024 AGM. Therefore,
during the course of this year, the Remuneration Committee
has carried out its triennial review of the Executive Directors’
Remuneration Policy.
The Committee has evaluated the Policy in light of our long-
term strategy. Specifically, we assessed the conventional
performance share plan to determine its effectiveness in
motivating the Executive team to make decisions that benefit
the Company over the long-term. The review concluded
that the primary goal of the long-term incentive should be
to align the interests of our Executive team with those of our
shareholders and to support the retention of our Executive
team. We felt that this has not been achieved in the past
and that position would not change in the future without
achange of policy.
We believe Restricted Shares are a more suitable model
because they: (i) align with our company strategy; (ii) ensure
strong alignment with investors; (iii) fit with our company
culture; and (iv) are simple and transparent.
Further details are set out below.
Governance
130 Bellway p.l.c. Annual Report and Accounts 2024
• Align with our company strategy – A key driver of the
change is increasing alignment between our strategy of
delivering long-term volume growth with value creation for
shareholders and incentivising Directors to make decisions
in the long-term interests of the Company. Restricted Shares
will remove the volatility that we have experienced in
vesting under the Performance Share Plan and ensure that
awards will change in value in the same proportion to the
returns we create for shareholders over each three year
period. We are conscious that executive pay has been a
controversial topic in the sector over the years and see
benefits in reducing the maximum available quantum while
remaining market competitive.
• Ensure strong alignment with investors – Restricted Shares
create an immediate alignment between participants and
investors, offering tangible value that promotes long-term
thinking and avoids inadvertently incentivising volatility
and risk taking. Awards will only be eligible to vest subject
to the Remuneration Committee being satisfied that
the Company’s overall performance is in line with the
Company’s long-term strategic plan (the ‘performance
underpin’). Further details are set out below.
• Fit with our company culture – We believe that Restricted
Shares offer a better match for our business goals and
will operate for roles below the Executive Committee.
This approach allows for consistency across all
management levels.
• Simple and transparent – Restricted shares are simple
and easier to understand. As such, they can be a highly
retentive LTIP vehicle. In addition, shareholders have a
much clearer view of remuneration quantum.
The maximum grant of Restricted Shares will be half of
the maximum opportunity under the existing policy for
Performance Shares which is consistent with the Investment
Association’s guidance and wider investors’ expectations.
In terms of the quantum of award proposed, the maximum
Restricted Share award will be 100% of salary (reduced from
a 200% of salary performance share award). This reduction is
fair considering the greater certainty of vesting and reflects the
average vesting level of the last ten years of 46% of award.
Therefore, we propose replacing the annual grant of
performance shares with restricted shares. The key terms of
the restricted share awards are:
– Limit to 100% of salary in relation to any financial year.
– Awards will be subject to the performance underpin.
The underpin will be based on a holistic review of
overall business performance as determined by the
Remuneration Committee.
In assessing the underpin, the Committee will consider the
Group’s overall performance, including financial and non-
financial performance over the course of the vesting period
and any material factors identified.
This approach enables the Remuneration Committee to
form a well-rounded view of the Group’s performance.
If the Committee is not satisfied that the underpin has
been met, it reserves the right to reduce the vesting levels,
including the possibility of reducing them to zero. We will
disclose the Committee’s assessment against the underpin
each year to provide full transparency to shareholders.
To reinforce the alignment with shareholders’ long-term
interests, the in-employment shareholding guidelines will be
increased from 200% of salary to 300%.
Reflecting the increase in scale of the business, the maximum
annual bonus opportunity for Executive Directors will be
increased from 120% to 150% of salary which will provide more
market competitive bonus opportunities and better alignment
with the Company’s current strategy which is equally focused
on short-term performance and long-term value creation.
In line with market best practice, compulsory bonus deferral
will be introduced so that a quarter of any bonus paid will
be deferred into shares for three years. We will also reduce
the amount that can be earned for meeting the threshold
level of performance for financial metrics from 40% to 25%.
Reflecting the increase in bonus opportunity, the targets set
for 2024/25 are considered more challenging in aggregate
than those set in 2023/24.
Other minor amendments are being proposed to the policy
tosimplify it and align it with market practice. Further details
on the proposed changes are set out on page 137.
Other considerations during the year
Shareholder engagement
Ahead of the 2024 AGM, we engaged with our largest
investors as well as Institutional Shareholder Services
(‘ISS’), the Investment Association (‘IA’) and Glass Lewis, to
understand their views on our proposed new policy and its
proposed implementation in 2024/25. Based on the feedback
received from our engagement, almost all investors were
supportive of the changes proposed.
Wider workforce engagement
We engage with our employees through our annual
engagement survey, and through our employee listening
groups. We have four employee listening groups that
meet four times per year, and all groups are chaired by
employees. We engage with our employee listening groups
on executive remuneration and explain how this aligns with
the wider Company Pay Policy. Feedback from employee
listening groups is shared with the main board, and our Non-
Executives regularly attend these sessions to actively listen to
the feedback from employees directly.
Board changes
As announced on 21 May 2024, Keith Adey, Group Finance
Director, has advised the Board that he intends to retire
from full-time executive work once a successor has been
appointed. Keith will remain committed as Group Finance
Director, and although his contract provides for only a six
month notice period, he has agreed to remain until a suitable
handover has taken place.
As announced on 11 October 2024, Shane Doherty, who
was the Group Chief Financial Officer of Cairn Homes PLC
(‘Cairn’) (a company trading on the Euronext Dublin) until
April 2024, will join Bellway on 2 December 2024. Shane’s
remuneration arrangements have been set in accordance
with the Directors’ Remuneration Policy and will comprise a
salary of £480,000, a pension in line with the rate applying to
the majority of the workforce, an annual bonus opportunity
and long term incentives for 2024 at the same rates as the
other executive directors and other benefits.
131Bellway p.l.c. Annual Report and Accounts 2024
Governance
Remuneration Report continued
Keith will be stepping down from his current role as Group
Finance Director on 1 December 2024. He will remain on the
Board and will continue to have an active role in the business
as an executive director until 21 March 2025, which will
include helping to oversee an orderly transition.
He will participate in the annual bonus plan but will not be
awarded any long-term incentives. In line with the Policy,
his retirement means that he will be a good leaver under
the Bellway incentive plans and his bonus and long-term
incentives will be prorated. The targets will be assessed at
the end of the respective performance periods to determine
whether they have been met. Bonus payments and the
release of shares will not be accelerated, therefore the
two year holding period will also apply to any PSP awards
that vest. Keith will also remain subject to the Directors’
shareholding requirements for 2 years post departure.
As also announced on 21 May 2024, Simon Scougall was
appointed to the Board in the newly created Executive role
of Chief Commercial Officer from 1 August 2024. Simon’s
remuneration package comprises a salary of £444,000, a
pension in line with the rate applying to the majority of the
workforce, of 10% of salary, an annual bonus opportunity and
a LTIP award for 2024/25 at the same level as the CEO, and
other benefits, all in line with the Remuneration Policy.
The Committee decided that it would be more appropriate
for Executive Directors to have 12 month notice periods in
the future as shorter periods do not provide adequate time
to conduct an external search process. This was agreed by
both Jason and Simon on his appointment. As Keith will
retire during the year, no changes have been made to his
service contract.
Cecily Davis was appointed to the Board as a Non-Executive
Director on 1 May 2024. Further details of her appointment
can be found in the Nomination Committee Report on
page 117.
How we will implement the Remuneration Policy in 2024/25
The Committee considered how remuneration should be
implemented in 2024/25. Part of this process was reviewing
current practice against both market and best practice, our
Group reward principles and pay ratios. The key decisions
taken are set out below.
The Committee has awarded Jason Honeyman and
Keith Adey salary increases of 4.5%, which are in line
with the average for the workforce for 2024/25 of 4.5%.
Simon Scougall’s base salary was set on appointment and he
received no further salary increase.
Subject to shareholder approval at the 2024 AGM, the
maximum bonus opportunity for Executive Directors
will be in line with the amended Remuneration Policy at
150% of basic salary. During the year, the Remuneration
Committee reviewed the performance measures used
for the annual bonus to ensure they align with the Group
strategy. The Committee concluded that the performance
measures remain appropriate but have made minor changes
to the weightings of each element to ensure that they align
with our short term goals. In summary, the bonus will be
subject to underlying operating profit (60%), adjusted capital
employed (6.7%), land delivery (20%), and ‘Better with Bellway’
measures (13.3%). The Committee will have the discretion to
adjust the formulaic outcome of the bonus to reflect wider
business performance including satisfactory health and
safety performance. A quarter of any bonus earned must be
deferred into shares for three years.
In line with the proposals set out on page 138, the Company
intends to make an award of Restricted shares under the
LTIP Rules of up to 100% of salary to the Executive Directors.
Awards will vest to the Executive Directors after three years,
subject to satisfaction of the performance underpin with any
shares vesting subject to a two-year holding period.
Concluding remarks
I hope it is clear from the way we are proposing to apply
policy in 2024/25 that we continue to take account of
the feedback of our shareholders and we look forward
to receiving your support for the Directors’ Remuneration
report at the upcoming Annual General Meeting. I will be
available to answer any questions before, and at, the Annual
General Meeting.
Jill Caseberry
Chair of the Remuneration Committee
14 October 2024
Governance
132 Bellway p.l.c. Annual Report and Accounts 2024
Remuneration at a glance
How remuneration links to our strategy
(See pages 10 to 13 for details of our performance).
Strategic objective Link to remuneration Metric Performance against metric
Earnings growth and driving
down costs
Annual bonus and vesting LTIP Underlying operating profit
andunderlying EPS
Achieved and Not
Achieved
Focus on capital employed Annual bonus Adjusted capital employed Not Achieved
Land delivery Annual bonus Outlet opening and DPP
inBRICs
Achieved
ESG Annual bonus Retain five-star
5
homebuilder
status, results of Employee
Engagement Survey and
Carbon reduction
Achieved
Value creation through capital
and dividend growth
Vesting LTIP Relative TSR against two
comparator groups
Not Achieved
The Committee set ambitious targets which have been challenging to achieve in a tough economic environment which has
impacted all elements of the business, this is reflected in the outcomes highlighted above.
Bonus outcomes – see page 145
The 2023/24 bonus was based on financial and strategic targets.
Strategic objective
Weighting
(%ofmaximum)
Achievement
(%ofmaximum)
Underlying operating profit
(a)
60% 100%
Adjusted capital employed 10% 0%
Strategic objectives 30% 100%
Total 90%
Notes:
a. Underlying operating profit for the Bonus includes the share of result of joint ventures.
LTIP outcomes – see page 146
The PSP awards granted in 2021/22 were based on the performance conditions set out below.
Measure
Weighting
(%ofmaximum)
Achievement
(%ofmaximum)
EPS underlying EPS in 2023/24. 33% 0%
Relative TSR
vs housebuilders 33% 0%
vs FTSE 350 (excl. Financial services and
investment trust) 33% 0%
Total 0%
Directors’ Remuneration Policy
This part of the remuneration report, the Directors’ Remuneration Policy, has been prepared in accordance with The Large and
Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013.
The overall Remuneration Policy has been developed in compliance with the principles of the 2018 UK Corporate Governance
Code, UK institutional investor guidance and the Listing Rules.
The Remuneration Policy set out on the following pages is submitted to shareholders for approval at the AGM on 12 December
2024. It is the Company’s current intention that this Policy will apply for three years.
Objectives of Remuneration Policy
The aim of the Committee is to ensure that the Company has competitive remuneration packages in place that will promote
the long-term success of the Company and motivate Executive Directors in the overall interests of shareholders, the Group, its
employees and its customers.
The Committee has a policy of paying a level of remuneration comparable with that of a peer group of similar UK housebuilding
businesses, subject to experience and performance.
The Committee uses this comparative approach to benchmarking with caution, recognising the relatively few direct
housebuilding comparatives, their differing size and the risk of an upward ratchet effect with any peer-based analysis.
The structure of the package has been designed to ensure that the performance-related elements of remuneration
constitute asignificant proportion of an executive’s potential total remuneration package, but are only receivable if the stretch
performance targets are achieved.
133Bellway p.l.c. Annual Report and Accounts 2024
Governance
Remuneration Report continued
The structure of the performance conditions for annual bonus has been designed to provide a strong link to the Group’s
performance, namely a focus on maximising profit in a sustainable fashion and producing superior shareholder returns, thereby
generating a strong alignment of interest between senior executives and shareholders. The two-year post-vesting holding
period which applies to the long-term incentive plan (which also applies to good leavers) reinforces that alignment.
Decision-making process
The Committee is responsible for the determination of the Directors’ Remuneration Policy and how it is implemented.
In addressing this responsibility, the Committee works with management and external advisers to develop proposals and
recommendations. The Committee considers the source of information presented to it, analyses the detail and ensures
that independent judgement is exercised when making decisions. Information is independently verified where there are
conflicts of interest and no individual is present when their remuneration is being discussed. The Remuneration Committee
works alongside other Board Committees as needed; for example, the Group Audit Committee confirms incentive plan
performance results.
When setting the Remuneration Policy, the Committee considered the Company’s strategic objectives over both the short and
the long-term, the external environment and market best practice. In addition, the Committee also considered the alignment
across the business as well as stakeholder views.
Policy principles
The Directors’ Remuneration Policy is aligned with the principles within the 2018 UK Corporate Governance Code and these
principles are taken into account in its implementation.
Principles Considerations within the Policy
Clarity: remuneration arrangements
should be transparent and promote
effective engagement with
shareholders and the workforce.
We clearly communicate our approach to remuneration in this report and in all
communications with shareholders, while providing transparency in our rationale.
This also allows straightforward engagement with the wider workforce.
Simplicity: remuneration structures
should avoid complexity and their
rationale and operation should be
easy to understand.
We have structured the Remuneration Policy to be as simple as possible, within the
confines of ensuring arrangements are in line with the business strategy, have a robust
link between pay and performance and are designed with consideration of investor
expectations. The introduction of the ability to make Restricted Share awards provides
asimple approach for aligning Executive Director and shareholder interests.
Risk: remuneration arrangements
should ensure reputational and
other risks from excessive rewards,
and behavioural risks that can arise
from target-based incentive plans,
are identified and mitigated.
We mitigate against these risks through a carefully designed policy, which includes
a balance between financial and non-financial bonus metrics, deferral of a portion
of the annual bonus into shares, the Restricted Share awards that are subject to a
holistic performance underpin and shareholding requirements. The Committee also
has the ability to apply discretion and clawback provisions if incentive payment levels
are inappropriate.
Predictability: the range of possible
values of rewards to individual
Directors and any other limits or
discretions should be identified and
explained at the time of approving
the policy.
Examples of the caps under the Remuneration Policy are illustrated in the
scenario charts.
At the time of assessment, the Committee would use discretion where necessary if the
formulaic result is considered inappropriate.
Proportionality: the link between
individual awards, the delivery
of strategy and the long-term
performance of the Company
should be clear. Outcomes should
not reward poor performance.
The opportunity under incentive plans is determined based on a proportion of salary
with the quantum determined to ensure that there is an appropriate link between pay
and performance.
The performance conditions and underpins applying to the incentives are aligned with
the Company’s strategy, and are reviewed on an annual basis to consider whether they
are working effectively.
There are provisions to override the formula-driven outcome of incentive plans and
clawback provisions to ensure that there is not reward for poor performance.
Alignment to culture: incentive
schemes should drive behaviours
consistent with Company purpose,
values and strategy.
The Committee reviews workforce composition and remuneration across the Group
and takes them into account when reviewing the implementation of the policy.
Where possible, in support of our performance culture, we align remuneration across
theGroup; for example, Restricted Share awards have been introduced below the
Boardand all employees can join the Group’s savings-related share option scheme.
Governance
134 Bellway p.l.c. Annual Report and Accounts 2024
Consideration of employment conditions elsewhere in the Group
Our Employee Listening Groups provide an opportunity to engage with the workforce on Executive remuneration and for
employees to raise issues that are reported to the Board. During the year, an engagement process took place. Based on
employee feedback, the Executive Remuneration Policy and its implementation were not raised as material issues in
the discussions during the year and, therefore, no amendments to the Remuneration Policy were required as a result of
this engagement.
In determining the elements of remuneration for the Executive Directors, the Committee takes into consideration the
pay and conditions of employees throughout the Group as a whole, paying particular attention to the levels of basic pay
increase awarded to the workforce generally. All eligible employees, including the Executive Directors, can join the Group’s
savings-related share option scheme, have life assurance benefits and have access to pension arrangements. A significant
proportion of employees benefit from health insurance, a company car or car allowance and are eligible to participate in a
discretionary bonus scheme. At senior levels, remuneration is increasingly long term and ‘at risk’ with an increased emphasis
onperformance-related pay and share-based remuneration.
The Committee is regularly updated of any significant policy changes for the workforce generally and management below
Board level in particular.
Consideration of shareholder views
In considering the operation of the Remuneration Policy, the Committee will take into account the published remuneration
guidelines and specific views of shareholders and proxy voting agencies. The Committee will consult with the Company’s larger
shareholders, where considered appropriate, regarding changes to the operation of the Policy, and when the Policy is being
reviewed and brought to shareholders for approval.
As set out in the letter from the Remuneration Committee Chair, an extensive consultation process was undertaken in relation
to the updated Policy to be presented for approval by shareholders at the 2024 AGM. Based on the feedback received from our
engagement, investors were almost all supportive of the changes proposed to the Remuneration Policy. Therefore, there were
no amendments to the changes to the policy based on the consultation.
Summary of changes to the Remuneration Policy
Below we have summarised the key changes to the Remuneration Policy.
Introduction of restricted shares to replace performance shares
Assuming that the Policy is approved at the 2024 AGM, no further Performance Share grants will be made and, instead, the first
grant of Restricted Share awards will be made shortly following the AGM.
In terms of the quantum of award proposed, the maximum Restricted Share award will be 100% of salary (reduced from a
200% of salary performance share award). Restricted Share awards would be subject to a three-year vesting period and the
performance underpin. Similar to the existing Performance Shares, the awards would also be subject to a two-year post vesting
holding period.
We believe that the introduction of the ability to make Restricted Share awards is aligned with Company strategy and
shareholder interests. Further details regarding the rationale for the introduction of these grants are set out in the Chair’s letter
on pages 130 to 131.
Shareholding guidelines
The in-service shareholding requirement will be increased from 200% of salary to 300%. The current post-employment
requirement, which requires Executive Directors to hold a shareholding of 200% of salary for two years post cessation of
employment, will be retained.
Annual bonus
The maximum annual bonus opportunity will be increased from 120% to 150% of salary and the payout at threshold for financial
performance will be reduced from 40% to 25% of maximum.
In line with market best practice, we will introduce compulsory bonus deferral, which will require Executive Directors to invest a
quarter of their bonus into shares, which will be held for three years. The remainder of the bonus will be paid in cash.
Wider Policy Changes
As part of its Policy review work, the Committee also considered how other aspects of remuneration compare to current market
and best practice. As a result, the following minor changes to the Policy are being proposed:
Executive Director pension rates were aligned with the rate of the wider workforce in 2022. The policy wording will be updated
to reflect this.
For internal appointments to the Board, any remuneration awards previously granted prior to appointment will continue on their
original terms.
The notice period for the CEO has been increased to 12 months for both the employee and employer in line with market
practice and to provide greater protection to the Company.
135Bellway p.l.c. Annual Report and Accounts 2024
Governance
Remuneration Report continued
Policy table
This section of the Report describes the key components of each element of the remuneration arrangements for Executive and
Non-Executive Directors.
Component and
linktostrategy Operation Maximum opportunity Framework to assess performance
Salary
To be market
competitive and,
therefore, assist
in recruiting,
retaining and
motivating high-
quality executives.
Reflects individual
role and
experience.
Salaries are normally reviewed
in July each year and changes
normally take effect from 1 August.
They are typically determined by
reference to market levels of a peer
group of similar UK housebuilding
businesses, taking account of salaries
at other companies of a similar size,
and by taking account of the role,
performance, and experience of the
individual, Company performance,
salary increases throughout
the rest of the business and
economic conditions.
Where salaries of new Executive
Directors are positioned below
market levels, the Committee’s policy
is to progress these over time, with
increases potentially higher than for
the general workforce, as experience
is gained, subject to performance.
No prescribed maximum.
Increases are normally in
line with the average for
the workforce generally.
Increases may be
below or above this
e.g. due to promotion,
change in responsibility
or experience, role
change or a significant
change, in the size, value
and/or complexity of
the Company.
Salaries are set out
in the Annual Report
on Remuneration.
In addition to the reviews by the
Chair, as part of the annual Board
evaluation, the performance of the
Executives and the Company is
kept under continuous review by
the Board.
Pension
To provide
a structure
and value
that is market
competitive.
Pension contributions into the
Company’s Group Self Invested
Personal Pension Plan and/
or a salary supplement in lieu of
pension contributions.
The rate for current
Directors will be no
higher than that of the
majority of the workforce
(currently 10% of salary).
Not applicable.
Benefits
To provide a
range and value
that is market
competitive.
Typically comprises car or car
allowance, life assurance and health
insurance. Other benefits may be
provided where appropriate.
Any expenses incurred in carrying
out duties will be fully reimbursed
by the Company, including any
personal taxation associated with
such expenses.
Not applicable. Not applicable.
Governance
136 Bellway p.l.c. Annual Report and Accounts 2024
Component and
linktostrategy Operation Maximum opportunity Framework to assess performance
Annual bonus
To reward
achievement with
a combination
of financial and
non-financial
operational-based
performance
targets in
accordance with
Group KPIs.
Annual bonuses are normally
payable in cash in November
following the year-end on 31 July,
subject to the achievement of
performance targets that were set at
the start of the financial year.
The Company operates a recovery
mechanism, which allows the
Company to clawback some, or
all, of the payments made under
the variable components of an
individual’s remuneration, in the
following circumstances:
(i) material misstatement of results;
(ii) error in assessing a
performance condition;
(iii) gross misconduct by
the individual;
(iv) in the case of corporate failure; or
(v) in the case of material
reputational damage.
A maximum of 75% of the bonus
will be paid in cash. Deferral of
the remainder into shares will be
achieved by applying the net amount
of the bonus to purchase shares that
must normally be held for three years.
150% of basic
salary maximum.
The bonus may be based on
a combination of financial
and strategic objectives, with
financial performance accounting
for a majority of the overall
bonus opportunity.
The Committee determines the
choice of measure(s) and their
weighting for each year to ensure
alignment with the Board’s priorities
and Company strategy over the
short to medium term.
The level of pay-out at threshold for
financial metrics will not be more
than 25% of maximum, and varies
for non-financial metrics.
Full vesting will take place for
equalling or exceeding maximum,
subject to the health and
safety underpin.
The Committee has discretion to
adjust the payment outcome to
ensure it reflects the individual’s
contribution and/or the overall
performance of the Company over
the performance period.
Details of the performance
measures used are set out in the
Annual Report on Remuneration.
Share ownership guideline for Executive Directors
To align Executive
Directors’ interests
with those of
shareholders.
Executive Directors are required to
accumulate a minimum shareholding
equivalent to 300% of basic salary.
For any Executive Director under
notice at the date this Policy is
approved by shareholders, a level of
200% applies.
Executive Directors are also required
to retain shares for two years
following their departure from the
Board, at the lower of 200% of their
salary and their shareholding at the
time of departure.
Within a period of three months of
appointment, an Executive Director
must acquire a minimum of 1,000
ordinary shares in the Company
and must retain at least 50% of any
shares vesting under the incentive
arrangements, after allowance for
paying tax, until the requisite number
of shares has been accumulated.
If personal circumstances make
this difficult, the Committee would
exercise discretion.
Not applicable. Not applicable.
137Bellway p.l.c. Annual Report and Accounts 2024
Governance
Remuneration Report continued
Component and
linktostrategy Operation Maximum opportunity Framework to assess performance
Long-term incentives
To encourage
long-term
value creation,
aid retention,
encourage
shareholding
and promote
alignment of
interests with
shareholders.
The Company grants Restricted
Share Awards as its primary long-
term incentive.
Annual awards of nil-cost options or
conditional awards may be made
under the LTIP to the Executive
Directors, at the discretion of
the Committee.
Awards normally vest three years
after grant.
Dividend equivalents (normally
awarded in shares) may be payable,
and will only accrue during the
vesting and holding period on
awards that ultimately vest.
The Company operates recovery
and withholding mechanisms, which
allow the Company, in exceptional
circumstances, to clawback some,
or all, of the payments made, or
recover unvested awards, in the
following circumstances:
(i) material misstatement of results;
(ii) error in assessing a
performance condition;
(iii) gross misconduct by
the individual;
(iv) in the case of corporate failure; or
(v) in the case of material
reputational damage.
A minimum holding period of two
years applies to awards post vesting.
100% of basic salary in
respect of a financial year.
Awards will only be eligible to
vest subject to the Remuneration
Committee being satisfied that the
Company’s overall performance is in
line with the Company’s long-term
strategic plan (the ‘performance
underpin’). In assessing the
underpin, the Committee will
consider the Group’s overall
performance, including financial
and non-financial performance over
the course of the vesting period
and any material factors identified.
To ensure that pay aligns with
performance, the Committee may
reduce vesting levels (including to
zero) if they are not satisfied that the
underpin has been met.
The Committee has discretion
to adjust the vesting outcome in
exceptional circumstances to ensure
it is a true reflection of the overall
performance of the Company over
the period.
All-employee share schemes
To encourage
employees to
build a stake in
the future of the
Company.
The Executive Directors can
participate in any HMRC-approved
all-employee plans operated by
the Company.
Subject to prevailing
HMRC limits.
Not applicable.
Governance
138 Bellway p.l.c. Annual Report and Accounts 2024
Component and
linktostrategy Operation Maximum opportunity Framework to assess performance
Chair and Non-Executive Directors
To set appropriate
fees in light of the
time commitment,
responsibilities,
wider market and
best practice.
The Chair’s fee is determined by the
Remuneration Committee.
The remuneration of the Non-
Executive Directors (‘NED’) is
determined by the Board Committee
on Non-Executive Directors’
Remuneration, which comprises the
Executive Directors.
Fee levels are normally reviewed
annually, taking into account the time
commitment and responsibilities of
the roles including membership or
chairmanship of Board Committees
and the level of fees for similar
positions in comparable companies.
Non-Executive Directors are not
normally entitled to any taxable
benefits or pension. They do not
participate in any bonus or long-
term incentive plans and they are
not entitled to compensation on
termination of their arrangements,
other than normal notice provisions
of three months given by either party.
Travel, accommodation and other
related expenses incurred in
carrying out the role will be paid
by the Company including any
personal taxation associated with
such expenses.
The aggregate of NED
fees is set out in the
Articles of Association
and is currently £500,000
per annum.
The performance of the Non-
Executive Directors is assessed by
the Chair. The senior independent
Non-Executive Director reviews
the performance of the Chair in
conjunction with the Directors.
For the avoidance of doubt, under this Directors’ Remuneration Policy, authority is given to the Company to honour any
commitments entered into with current or former Directors that is consistent with the approved Remuneration Policy in force
at the time the commitment was made (or, if made before the current policy was approved, as have been disclosed previously
to shareholders), or was made at the time when the relevant individual was not a Director of the Company. Details of any
payments made to former directors will be set out in the Annual Report on Remuneration as they arise. All historical share
awards and bonus arrangements that were granted under any current or previous incentive schemes operated by the
Company and remain outstanding remain eligible to vest/payout based on their original terms.
139Bellway p.l.c. Annual Report and Accounts 2024
Governance
Remuneration Report continued
Clawback/malus
The time period over which clawback/malus will apply to bonuses is at any time before the third anniversary of payment of
bonus or vesting of an LTIP award, as relevant.
Incentive plan discretions
The Remuneration Committee can exercise discretion in a number of areas when operating the Company’s incentive schemes,
in line with the relevant rules of the schemes. These include (but are not limited to):
• the choice of participants;
• the size of awards in any year (subject to the limits set out in the Directors’ Remuneration Policy table);
• the extent of payments or vesting in light of the achievement of the relevant performance conditions;
• the determination of good or bad leavers and the treatment of outstanding awards (subject to the provisions of the scheme
rules and the Remuneration Policy provisions); and
• the treatment of outstanding awards in the event of a change of control.
In addition, if events occur that cause the Remuneration Committee to conclude that any performance condition is no longer
appropriate, that condition may be substituted, varied or waived as is considered reasonable in the circumstances in order to
produce a fairer measure of performance that is not materially less difficult to satisfy.
Choice of performance measures for 2024/25 and approaches to target setting
The performance measures used in the annual bonus are aligned with the Company’s KPIs and the business strategy.
For the annual bonus, underlying operating profit is an appropriate barometer of short-term performance as management will
neither benefit from, or be penalised by, one-off or short-term impacts on the Group’s profit, it also acts as an incentive for the
sustainable development of the business. Customer care and land bank are important drivers of future growth and employee
metrics and maintaining a strong health and safety record is very important to our employee base and the Group.
Targets for incentive plans are set to be stretching but achievable, taking into account internal and external reference points,
including internal forecasts and market consensus.
Approach to recruitment remuneration
In arriving at a total package, and in considering the quantum for each element of the package, the Committee will take
into account the skills and experience of the candidate and the market rate for a candidate of that experience, as well as the
importance of securing the preferred candidate.
Element General policy Detail
Salary At a level required to attract the most
appropriate candidate.
Discretion to pay lower basic salary with incremental
increases, potentially higher than for the general
workforce, as new appointee becomes established in
the role.
Pension and benefits In accordance with Company policies. Additional benefits in relation to recruitment may be
provided where considered appropriate, for example,
relocation expenses or allowances, legal fees and other
recruitment-related costs may be payable.
Any new Director’s pension contributions will be in line
with the Policy for other Directors. The current employer
pension contribution rate is between 5% and 10%
ofsalary depending on years of service.
Bonus In accordance with existing schemes. The maximum annual bonus opportunity is 150% of
salary (in line with the policy).
Depending on the timing of recruitment, bespoke
targets could be introduced for an individual within the
maximum individual limits of the annual bonus plan
applicable at the time.
Pro-rating would be applied as appropriate for
intra-yearjoiners.
Governance
140 Bellway p.l.c. Annual Report and Accounts 2024
Element General policy Detail
Long-term incentives In accordance with Company policies
and maximum limits in the long-term
incentive plan rules.
The maximum LTIP grant is 100% of salary (in line with
the policy). Therefore, the total variable remuneration
is250% of salary.
An award may be made in the year of joining or,
alternatively, the award can be delayed until the
following year.
Targets would normally be the same as for other
Directors and grant levels consistent within the
permitted individual maximum under the rules of the
plan and this policy.
Buyout of forfeited
remuneration
The Committee may make an award in
cash or shares to replace deferred or
incentive pay forfeited by an Executive
leaving a previous employer (and, if
required, by relying on the flexibility
provided in the Listing Rules to grant
such replacement awards).
Awards would, where possible, be consistent
with the awards forfeited in terms of the vehicle,
structure,vesting periods, expected value and
performance conditions.
Internal appointment
totheBoard
In accordance with Company policies. When existing employees are promoted to the Board,
the above policy will apply, from the point where they
are appointed to the Board and not retrospectively.
In addition, any existing awards will be honoured and
formpart of ongoing remuneration arrangements.
Non-Executive Directors In accordance with Company policies. Fees will be in line with the Remuneration Policy and
the fees provided for the other Non-Executive Directors.
Service contracts and Loss of Office Payment Policy
The details of the Executive Directors’ service contracts are as follows:
Executive Director
First appointed as
aDirector
Current contract
commencement date
Notice period
fromemployer
Notice period
fromExecutive
Jason Honeyman 1 September 2017 1 August 2018 12 months 12 months
Keith Adey 1 February 2012 1 February 2012 12 months 6 months
Simon Scougall 1 August 2024 1 August 2024 12 months 12 months
Contracts are available for inspection at the Company’s registered office.
Our policy is that notice periods for Executive Directors should be no longer than 12 months.
The Executive Directors may accept external appointments provided that such appointments do not, in any way, prejudice their
ability to perform their duties as Executive Directors of the Company. The extent to which any Executive Director is allowed to
retain any fees payable in respect of such appointments, or whether such fees are remitted to the Company, will be assessed on
a case-by-case basis. None of the Executive Directors currently hold any outside appointments.
Our policy is that notice periods for Non-Executive Directors should be no longer than three months, save in the case of the
Chair, whose notice period may extend to six months.
Currently, all Non-Executive Directors (including the Chair) have letters of appointment with the Company for no more than
three years, subject to annual re-appointment at the AGM, with a three-month notice period by either side. The appointment
letters for the Chair and Non-Executive Directors provide that no compensation is payable on termination, other than fees
accrued and expenses.
Non-Executive Director
First appointed as
aDirector
Current letter
of appointment
commencement date
Current letter
ofappointment
end date
John Tutte 1 March 2022 1 March 2022 1 April 2025
Cecily Davis 1 May 2024 1 May 2024 30 April 2027
Sarah Whitney 1 September 2022 1 September 2022 31 August 2025
Jill Caseberry 1 October 2017 1 October 2023 30 September 2026
Ian McHoul 1 February 2018 1 February 2024 31 January 2027
Approach to recruitment remuneration continued
141Bellway p.l.c. Annual Report and Accounts 2024
Governance
Remuneration Report continued
The overriding principle for payments on loss of office will be to honour contractual remuneration entitlements. The Committee
would determine, on an equitable basis, the appropriate treatment of performance-linked elements of the package, taking
account of the circumstances, in accordance with the rules of each respective plan. Failure will not be rewarded.
The Company may pay statutory claims. Reasonable costs of legal expenses incurred by the Director may be reimbursed by the
Company by making direct payment to the professional adviser.
Element Bad leaver
(a)
Departure on agreed terms
(b)
Good leaver
(c)
Salary, pension
and benefits
(after cessation
of employment)
Nil. Up to 12 months’ basic salary, benefits
and pension.
Payments may be phased and
subject to offsetting against alternative
income from elsewhere during the
notice period.
The Company may pay in lieu of notice
an amount equivalent to 12 months’
salary, pension and benefits.
Apart from death, the Company may pay
up to 12 months’ basic salary, benefits and
pension, less any period of notice worked.
Payments may be phased and subject to
offsetting against alternative income from
elsewhere during the notice period.
The Company may pay in lieu of notice
an amount equivalent to 12 months’ salary,
pension and benefits.
The Executive Director will normally have
a duty to seek alternative employment
and any outstanding payments will be
subject to offset against earnings from any
new role.
Annual bonus No bonus payable. For the proportion of the financial
year worked, bonus may be payable
pro-rata, subject to performance, at the
discretion of the Committee. There will
be no bonus payment in respect of
any period of notice not worked.
For the proportion of the financial year
worked, bonus may be payable pro-rata,
subject to performance, at the discretion
ofthe Committee.
Restricted Share
awards and
legacy
Performance
Share awards
All awards, including
those that have
vested but are
unexercised will
lapse immediately
upon cessation
of employment.
Awards will lapse upon cessation of
employment, unless the Committee
decides otherwise, in which case
awardsmay vest.
Where employment ends before the
vesting date, awards may vest at the
normal time (other than by exception)
to the extent that the performance
conditions/performance underpin
havebeen satisfied.
The level of vested award will be reduced,
pro-rata, based upon the period of
time after the start of the financial year
of grant and ending on the date of
cessation of employment, relative to the
three-year performance period/vesting
period unless the Committee, acting
fairly and reasonably, decides that such
a scaling back is inappropriate in any
particular case.
Awards may be exercised within 12 months
of the vesting date.
Where employment ends before the
vesting date, awards may be exercised
at the normal vesting time (other than by
exception) and only to the extent that the
performance conditions/performance
underpin have been satisfied.
The level of vested award will be reduced,
pro-rata, based upon the period of time
after the start of the financial year of grant
and ending on the date of cessation of
employment, relative to the three-year
performance period/vesting period unless
the Committee, acting fairly and reasonably,
decides that such a scaling back is
inappropriate in any particular case.
Other payments Nil. Depending upon circumstances, the
Committee may consider payments in
respect of an unfair dismissal award,
outplacement support and assistance
with legal fees.
The Company may pay for outplacement
support and assistance with legal fees.
Notes:
a. For example, normal resignation from the Company or termination for cause (e.g. disciplinary issues).
b. This may cover a range of circumstances such as business reorganisation, changes in reporting structure, change in requirements for the role, termination as a result of a failure to be
re-elected at an AGM, etc.
c. Leaver for compassionate reasons such as death, injury, disability or retirement, with the agreement of the employer.
Governance
142 Bellway p.l.c. Annual Report and Accounts 2024
Change of control
On a change of control, Executive Directors’ incentive awards will be treated in accordance with the rules of the relevant plans.
In summary:
• Bonus payments will consider the extent to which the performance measures have been satisfied between the start of
the performance period and the date of the change of control, and the value will normally be pro-rated to reflect the
same period.
• Long-term incentive awards will generally vest on the date of a change of control, taking into account the extent to which any
performance condition or underpin has been satisfied at that point. Time pro-rating will normally apply unless the Committee
determines otherwise.
Illustrations of the application of current Remuneration Policy
The Remuneration Policy results in a significant portion of remuneration received by Executive Directors being dependent on
the Group’s performance. The chart below illustrates how the total pay opportunities for the Executive Directors vary under
three performance scenarios: minimum, target and maximum. For the purpose of this illustration, we have used the amended
policy set out in the tables above. The chart is indicative, as share price movement and dividend accrual have been excluded
unless otherwise noted.
£926k
32%
41%
28%
36%
27%
36%
£2,326k
£2,926k
£3,326k
£4,000k
£3,000k
£2,000k
£1,000k
£
Minimum Target
Maximum
with share
price growth
Maximum
Chief Executive
■
Fixed Pay
■
Annual Bonus
■
Long-term share awards
£527k
100% 40%
26%
32%
41%
28%
36%
34%
27%
36%
£1,304k
£1,637k
£1,859k
Minimum Target
Maximum
with share
price growth
Maximum
Chief Commercial Officer
£573k
100% 61%
39%
44%
56%
44%
56%
£939k
£1,305k £1,305k
Minimum Target
Maximum
with share
price growth
Maximum
Group Finance Director
100% 40%
26%
34%
Notes:
a. Chart labels show proportion of total package comprised of each element. The Group Finance Director has advised the Board that he intends to retire from full-time Executive work once a
successor has been appointed. Keith has agreed to remain until an appropriate candidate has been appointed and a suitable handover has taken place. The Board expects this to be early
in 2025. For the purpose of this illustration, we have assumed that Keith will receive a full year’s salary and bonus for 2024/25. If he steps down earlier in the year, these elements will be
prorated. Keith will not receive an LTIP grant in 2024/25.
b. Assumptions:
• Minimum: fixed pay only (salary + benefits + pension/pay in lieu of pension). Salary is based on actual for 2024/25, benefits are based on the value of actual benefits received in 2023/24 and
pension/pay in lieu of pension is at the rate of 10% of salary. The benefit figure for the Chief Commercial Officer, is based on estimated benefits for 2024/25 including a car allowance and
private medical insurance totaling £39,003.
• Target: fixed pay plus 50% of maximum bonus payment plus an LTIP award of 100% of salary with 100% of the award vesting.
• Maximum: fixed pay plus 100% of maximum bonus payment plus an LTIP award of 100% of salary with 100% of the award vesting.
• Maximum with share price increase: the Maximum scenario with the impact of a 50% increase in share price on the LTIP illustrated.
143Bellway p.l.c. Annual Report and Accounts 2024
Governance
Remuneration Report continued
Annual Report on Remuneration
Committee membership and activity
The Committee met five times during the year and details of the Committee members and their attendance are set out in the
table below.
Membership and meeting attendance
Director Date appointed to the Committee
Number of meetings
attendedduring the year
Jill Caseberry (Chair) 1 October 2017
(appointed as Committee Chair on 13 December 2017)
5/5
John Tutte 1 March 2022 5/5
Ian McHoul 1 February 2018 5/5
Sarah Whitney 1 September 2022 5/5
Cecily Davis 1 May 2024 1/2*
* The absence was due to commitments prior to joining the Board.
The operation of the Committee is conducted by reference to its Terms of Reference which have been prepared to comply
with relevant statutory, regulatory and corporate governance requirements and best practice and are available at www.
bellwayplc.co.uk/investor-centre/governance/committees.
None of the Committee members have a personal financial interest, other than as shareholders, in the matters to be decided.
There are no conflicts of interest arising from cross-directorships and no day-to-day involvement in running the business.
The Committee appointed Korn Ferry as independent external advisers, following a competitive tender process, on 1 January
2019. Korn Ferry does not provide any other services to the Company other than to the Remuneration Committee and the
Board Committee on Non-Executive Directors’ Remuneration. They are members of the Remuneration Consultants Group
and abide by its Code of Conduct. The Committee is satisfied that Korn Ferry are independent. The total fee paid to Korn Ferry
for advice to the Committees during the year was £137,930 (2023 – £70,287), which was charged on a time and material basis.
The Committee also benefited from advice received from the Group General Counsel and Company Secretary on issues other
than those relating to his own remuneration.
The remuneration of the Non-Executive Directors (apart from the Chair) is determined by the Board Committee on
Non-Executive Directors’ Remuneration, which comprises the Executive Directors. It also receives advice from the Group
General Counsel and Company Secretary, and Korn Ferry.
Main focus in 2023/24
• Reviewed the Remuneration Policy ahead of the 2024 AGM.
• Review and determine the remuneration packages for the Executive Directors (including the newly appointed Chief
Commercial Officer), and the first tier of management below Board level.
• Approve the long-term incentive awards vesting levels for the 2023/24 year for the Executive Directors and the Group
General Counsel and Company Secretary.
• Approve the 2022/23 financial year bonus payments for the Executive Directors and the Group General Counsel and
Company Secretary.
• Approve the 2022/23 Remuneration Report.
• Set the bonus targets for the 2023/24 year.
• Make awards under the long-term incentive scheme.
• Engage with employees on Executive remuneration through the Employee Listening Groups.
Focus areas for 2024/25
• Review and determine the remuneration packages for the Executive Directors, and the first tier of management below
Board level.
• Approve the long-term incentive awards vesting levels for the 2024/25 year for the Executive Directors and
senior management.
• Approve the 2023/24 financial year bonus payments for the Executive Directors and senior management.
• Approve the 2023/24 Remuneration Report.
• Set the bonus targets for the 2024/25 year.
• Make awards under the long-term incentive scheme.
• Engage with employees on Executive remuneration through the Employee Listening Groups.
Governance
144 Bellway p.l.c. Annual Report and Accounts 2024
Implementation of Remuneration Policy in 2023/24
The auditor is required to report on the information contained in the following part of this report, as noted on the
relevant sections.
Salary for the year ended 31 July 2024
For 2023/24, Jason Honeyman received a salary of £765,372 and Keith Adey received a salary of £467,053.
Annual bonus for the year ended 31 July 2024
The annual bonus is payable in November 2024 for performance during the year ended 31 July 2024. The performance targets
for the 2023/24 bonus comprised underlying operating profit, capital employed and strategic targets.
The actual bonus payment against underlying operating profit was determined on the following basis:
Objective
Weighting
(%ofsalary)
Threshold
(25% pays out)
Maximum value
(100% pays out) Actual
Payment
(% of maximum)
Payment
(% of salary)
Underlying operating profit
(a)
72% £170m £230m
(b)
£235.8m 100% 72%
Adjusted capital employed 12% <£1,900m <£1,750m £1,964.3m 0% 0%
Strategy performance 36% See below 100% 36%
Total 90% 108%
Notes:
a. Underlying operating profit for the Bonus includes the share of result of joint ventures.
b. The target value for underlying operating profit was £210million.
The basis for payment of the actual bonus against the strategic measures is set out below:
Strategic pillar
Weighting
(% of salary) Objectives Performance
Achievement
(% of max)
Land bank 21% This will be in two parts:
• Sales outlet openings to ensure that we have
the ability to meet our sales ambitions and
have secured sufficient planning consents.
A threshold payment of 6% of salary would
be triggered for 70 outlet openings up to a
maximum of 12% of salary for 80 openings.
• Availability of land bank of plots with DPP
(available for completion in the following
financial year) to ensure our sales ambitions are
not frustrated by land shortages in future years.
80 outlets were
opened in 2023/24,
meeting the
maximum target.
Achieved – the
land bank targets
are commercially
sensitive and will be
disclosed one year
in arrears
(a)
.
100%
Sustainability – 5 star builder 5% Retaining five-star
5
homebuilder status
(as measured by the HBF) and achieve a score of
at least 90%.
We retained
our five-star
5
homebuilder status.
The Group’s score in
2024 was 91.6%.
100%
Sustainability –
Employee Engagement
5% A threshold payment of 2.5% of salary would be
triggered for a score of 75% with an additional
bonus opportunity on a straight-line basis for
further improvement in score, up to a maximum
of 5% of salary for a score of at least 80%.
The Group’s
engagement score
was 80.8% and so
the maximum target
was exceeded.
100%
Sustainability –
Carbon Reduction
5% Development of a high-quality timber frame
proposition to enable investment to be evaluated
in line with our strategic business objectives.
A business case
for a timber frame
investment was
presented to the
Board at the July
strategy meeting,
and the Board
was satisified with
the strategy and
provided approval.
100%
Notes:
a. The 2022/23 base target was set at 11,950 plots with a maximum target of 12,450 plots. The actual performance achieved was 13,216 plots.
145Bellway p.l.c. Annual Report and Accounts 2024
Governance
Health and safety performance is taken into account by the Committee as part of its overall assessment of the bonus payment,
and the Committee has discretion to reduce the overall bonus payment if it considers that health and safety standards
have been unsatisfactory. The Committee is satisfied with the health and safety standards over the year and is comfortable
that the formulaic outcome under the bonus is in line with wider business performance. Therefore, the Committee has not
applied discretion.
The bonus outcome for the Executive Directors is set out below.
Executive Director Outcome
Jason Honeyman £826,602
Keith Adey £504,417
In line with the policy in place for 2023/24, any bonus in excess of 100% of salary will be deferred into shares and held for three
years. As a result, 8% of salary will be deferred.
Long-term incentives vesting in respect of performance period ended 31 July 2024
The PSP awards granted in 2021/22 were based on a three-year TSR performance for the period to 31 July 2024 and underlying
EPS in 2023/24. The applicable vesting percentages were as follows:
Performance measure
Weighting
(% of
maximum)
Threshold
(25% of
maximum)
Maximum
(100% of
maximum) Actual
Vesting
(% of
maximum)
Underlying EPS in 2023/24
1
33.3% 383p 436p 135.2p 0%
Relative TSR vs peer housebuilders
2
33.3% Median Median +7.5%
p.a.
Below
median
0%
Relative TSR vs FTSE 350
3
33.3% Median Upper quartile Below
median
0%
Total 100% 0%
Notes:
1. Calculated using underlying profit.
2. The peer group includes: Barratt Developments plc, The Berkeley Group plc, Crest Nicholson Holdings plc, McCarthy & Stone plc, Persimmon plc, Redrow plc, Taylor Wimpey plc and Vistry
Group plc.
3. Excludes financial services companies and investment trusts.
Based on performance over the period, the awards will lapse. The Committee is comfortable that the formulaic outcome of the
LTIP reflects wider business performance and so no discretion has been applied.
Remuneration Report continued
Governance
146 Bellway p.l.c. Annual Report and Accounts 2024
Single figure of total remuneration (audited)
Salary and
fees
(a)
£
Taxable
benefits
(b)
£
Pension
(c)
£
Annual
bonus
£
Sub-total
£
Long-term
incentives
(d)
£
Other
items
(e)
£
Total
£
Total fixed
remuneration
£
Total variable
remuneration
£
Non-Executive Chair
John
Tutte
2024 269,100 – – – 269,100 – – 269,100 269,100 –
2023 260,000 – – – 260,000 – – 260,000 260,000 –
Executive Directors
Jason
Honeyman
2024 765,372 46,320 76,537 826,602 1,714,831 – – 1,714,831 888,229 826,602
2023 739,490 51,570 104,761 185,316 1,081,137 – 7,488 1,088,625 903,309 185,316
Keith Adey 2024 467,053 35,707 46,705 504,417 1,053,882 – – 1,053,882 549,465 504,417
2023 451,259 35,143 63,915 113,086 663,403 – 4,493 667,896 554,810 113,086
Non-Executive Directors
Sarah
Whitney
2024 76,849 – – – 76,849 – – 76,849 76,849 –
2023 63,879 – – – 63,879 – – 63,879 63,879 –
Denise
Jagger
2023 28,177 – – – 28,177 – – 28,177 28,177 –
Jill
Caseberry
2024 78,660 – – – 78,660 – – 78,660 78,660 –
2023 75,999 – – – 75,999 – – 75,999 75,999 –
Ian McHoul 2024 78,660 – – – 78,660 – – 78,660 78,660 –
2023 75,999 – – – 75,999 – – 75,999 75,999 –
Cecily
Davis
2024 16,172 – – – 16,172 – – 16,172 16,172 –
Total 2024 1,751,866 82,027 123,242 1,331,019 3,288,154 – – 3,288,154 1,957,135 1,331,019
2023 1,694,803 86,713 168,676 298,402 2,248,594 – 11,981 2,260,575 1,962,173 298,402
Notes:
a. Cecily Davis was appointed to the Board on 1 May 2024.
Denise Jagger retired from the Board and as Senior Independent Director on 16 December 2022, Sarah Whitney was appointed to the Board on 1 September 2022 and took over as
SeniorIndependent Director upon Denise’s retirement. Their fees reflect their service during the financial year.
b. Taxable benefits include car allowance/benefit and health insurance and £11,820 for Jason Honeyman, which relates to hotel and travel costs.
c. Pension includes payments in lieu of pension based on 10% of salary. In 2023/24, Keith Adey made contributions to a defined contribution scheme of £nil (2022/23 - £2,613). None of the
Directors are members of the Group’s defined benefit scheme.
d. The value of long-term incentives in 2024 is nil as the threshold performance targets for the 2021 PSP awards were not met and as a result the awards lapsed in full.
e. Other items refer to the discount on the awards, during the year stated, under the Group’s all-employee savings-related share option scheme.
147Bellway p.l.c. Annual Report and Accounts 2024
Governance
Remuneration Report continued
Directors’ share-based rewards and options (audited)
Details of all Directors’ interests in the Company share-based reward schemes are shown.
Jason Honeyman
Scheme
Awards/
options held at
1 August 2023
Granted/
awarded
during the year
Exercised
during the year
Lapsed during
the year
Awards/
options held at
31 July 2024
Exercise price/
market price
at date of
award(p)
Date of grant/
award
Exercisable/
capable of
vesting from
PSP
(a)
39,005 – – (39,005) – 2,317.0 27.10.2020 27.10.2023
PSP
(b)
33,216 – – – 33,216 3,211.0 26.10.2021 26.10.2024
PSP
(c)
64,901 – – – 64,901 1,937.0 11.11.2022 11.11.2025
2013 SRSOS
(f)
1,935 – – – 1,935 1,550.0 07.12.2022 01.02.2028
PSP
(d)
– 75,036 – – 75,036 2,040.0 24.10.2023 24.10.2026
Totals 139,057 75,036 – (39,005) 175,088
Keith Adey
Scheme
Awards/
options held at
1 August 2023
Granted/
awarded
during the year
Exercised
during the year
Lapsed during
the year
Awards/
options held at
31 July 2024
Exercise price/
market price
at date of
award(p)
Date of grant/
award
Exercisable/
capable of
vesting from
PSP
(a)
22,668 – – (22,668) – 2,317.0 27.10.2020 27.10.2023
PSP
(b)
19,304 – – – 19,304 3,211.0 26.10.2021 26.10.2024
PSP
(c)
39,604 – – – 39,604 1,937.0 11.11.2022 11.11.2025
2013 SRSOS
(f)
1,161 – – – 1,161 1,550.0 07.12.2022 01.02.2026
PSP
(d)
– 45,789 – – 45,789 2,040.0 24.10.2023 24.10.2026
Totals 82,737 45,789 – (22,668) 105,858
Notes:
a. The performance period for the awards granted in October 2020 finished on 31 July 2023 and these awards lapsed.
b. The performance period is 1 August 2021–31 July 2024. Details of the vesting of these awards, which will take place after this Report is published are set out in full under the heading
‘Long-3term incentives vesting in respect of performance period ended 31 July 2024’ above.
c. The performance period is 1 August 2022–31 July 2025. The performance condition is subject to underlying EPS performance (20%), Relative TSR vs a bespoke peer group of housebuilders
(20%), Relative TSR vs FTSE 350 excluding financial services companies and investment trust (20%), Underlying Return on Adjusted Capital Employed (20%), Reduction in scope 1 and 2
emissions (10%) and Reduction in waste per completed unit (10%). These awards are subject to clawback provisions.
d. On 24 October 2023, awards of performance shares under the PSP were made to Jason Honeyman and Keith Adey, equal to 200% of their respective salaries at the date of grant.
The face values on grant of these awards were, therefore £1,530,734 and £934,096 respectively based on a share price of £20.40 (based on the share price on the date prior to grant).
The performance period is 1 August 2023–31 July 2026. The performance condition was in seven parts as detailed below. The Committee may adjust the level of vesting (including to nil)
to such extent as it considers appropriate to ensure the level of vesting is a true reflection of the overall performance of the Company over the performance period. These awards are also
subject to clawback provisions.
Metric Performance condition
Threshold target
(25% of max)
Stretch target
(100% of max)
25% of
opportunity
Relative TSR against a group of peer housebuilders comprising Barratt
Developments PLC, The Berkeley Group plc, Crest Nicholson Holdings plc,
Persimmon plc, Redrow plc, Taylor Wimpey plc and Vistry Group plc.
Median Median
+7.5% p.a.
25% of
opportunity
Relative TSR against the FTSE 350 (excluding financial services companies and
investment trusts).
Median Upper quartile
10% of
opportunity
Margin protection: ROCE in 2025/26. 10% 13%
10% of
opportunity
Margin protection: Strategic land in DPP land bank in 2025/26. 2,700 plots 3,000 plots
10% of
opportunity
Margin protection: Relative underlying operating margin against a group of peer
housebuilders comprising Barratt Developments PLC, The Berkeley Group plc,
Crest Nicholson Holdings plc, Persimmon plc, Redrow plc, Taylor Wimpey plc
and Vistry Group plc in FY26. Median is calculated as an average of the median
company and the Company above and below it.
Median Median x 1.05
10% of
opportunity
Sustainability: Customer satisfaction score 9-month survey result in 2025/26. 79% 82%
10% of
opportunity
Sustainability: Achieve a meaningful contribution towards reducing scope 1,2 and
3 carbon emissions including through the redesign of Artisan house types to
accommodate timber frame construction. The Committee will assess performance
achieved (including the level and pace of achievement) during the three years
and report these achievements and our expectations at the end of 2025/26.
Satisfactory
performance
Excellent
performance
e. All of the above awards set out in notes a–d were granted for nil consideration.
f. Further details of the 2013 SRSOS are shown in the summary of outstanding share options in note 23 to the accounts.
g. The market price of the ordinary shares at 31 July 2024 was 2,866p and the closing range during the year was 2,008p to 2,866p.
Governance
148 Bellway p.l.c. Annual Report and Accounts 2024
Payments to past Directors (audited)
No past Director received any payments from the Company during the year.
Payments for loss of office (audited)
No payments have been made in respect of loss of office during the 2023/24 financial year.
Statement of Directors’ shareholdings and share interests (audited)
The Directors’ interests (including family interests) in the ordinary share capital of the Company are set out below:
Scheme
Beneficially
owned at
31 July 2024
(c)
% basic
salary held
by Executive
Directors in
shares
(a)(b)
Shareholding
target of 200%
of basic salary
met?
Beneficially
owned at
31 July 2023
(c)
Outstanding
and unvested
PSP awards
(d)
– with
performance
conditions
Outstanding
and unvested
share options
– without
performance
conditions
Vested
unexercised
options
Share options
exercised in
the year
Jason
Honeyman
38,186 125 In progress 38,186 173,153 1,935 – –
Keith Adey 80,218 429 Yes 80,218 104,697 1,161 – –
John Tutte 20,000 N/A N/A 20,000 N/A N/A N/A N/A
Sarah
Whitney
1,131 N/A N/A – N/A N/A N/A N/A
Cecily Davis – N/A N/A – N/A N/A N/A N/A
Jill
Caseberry
470 N/A N/A 470 N/A N/A N/A N/A
Ian McHoul 2,000 N/A N/A 2,000 N/A N/A N/A N/A
Notes:
a. For 2023/24, Executive Directors were required to accumulate a minimum shareholding equivalent to 200% of basic salary. Within a period of three months of appointment an Executive
Director must acquire a minimum of 1,000 ordinary shares in the Company and must retain at least 50% of any shares vesting under the PSP, after allowance for paying tax, until the requisite
number of shares has been accumulated.
b. The percentage of shareholding is based on salaries as at 31 July 2024 using the average share price for the year.
c. Includes shares owned by partner.
d. All awards are structured in the form of nil-cost options
There has been no change in any of the above interests between 31 July 2024 and the date of this report.
The following section of this Report is not required to be audited.
Implementation of Remuneration Policy in 2024/25
This section sets out how the Company will implement the Remuneration Policy for the 2024/25 financial year. Full details of
how each element will operate are set out in the Remuneration Policy table.
The Committee has taken into account the remuneration and related policies for the rest of the workforce generally
and engaged with the workforce through the Employee Listening Groups when setting the 2024/25 targets for the
Executive Directors.
Basic salaries
The Committee has awarded Jason Honeyman and Keith Adey salary increases of 4.5%, which are in line with the average
for the workforce for 2024/25 of 4.5%. Therefore, from 1 August 2024, Jason’s salary was increased to £799,814 per annum and
Keith’s salary was increased to £488,070 per annum. On appointment, Simon Scougall’s base salary was set as £444,000 and he
received no further salary increase.
Annual bonus
Subject to shareholder approval at the 2024 AGM, the bonus opportunity will be in line with the new Remuneration Policy
maximum of 150% of basic salary.
Performance measures and weightings were reviewed during the year. As a result, the 2024/25 bonus will be subject to
underlying operating profit (60%), adjusted capital employed (6.7%), land delivery (20%) and ‘Better with Bellway’ measures
(13.3%).
For the financial measures, the payout at threshold will be limited to 25% of maximum. The actual annual bonus performance
targets are considered to be commercially sensitive at this time, and the Committee will disclose these retrospectively in next
year’s annual report on remuneration, provided they are no longer commercially sensitive.
The bonus remains subject to a health and safety underpin. The Committee will have the discretion to adjust the formulaic
outcome of the bonus to reflect wider business performance including satisfactory health and safety performance. A quarter of
any bonus earned must be deferred into shares for three years.
149Bellway p.l.c. Annual Report and Accounts 2024
Governance
Remuneration Report continued
Long-term incentives
In line with the rationale set out in the Statement from the Committee Chair, the Company anticipates making a grant of
Restricted Shares under the LTIP with a face value equivalent to 100% of salary to the Executive Directors. Awards will vest to the
Executive Directors after three years, subject to satisfaction of the performance underpin with any shares vesting subject to a
two-year holding period.
The Committee may adjust the level of vesting (including to nil) to such extent as it considers appropriate to ensure the level of
vesting is a true reflection of the overall performance of the Company over the performance period.
Non-Executive Director fees
The Company’s approach to Non-Executive Directors’ remuneration is set by the Board, with account taken of the time and
responsibility involved in each role, including, where applicable, the chairing of Board Committees.
With effect from 1 August 2024, an increase of 4.5% to the Non-Executive Director base fees was approved by the Board, and
an increase of 4.5% to the Board Chair fee was approved by the Remuneration Committee, in line with the increase for the
wider workforce.
Director
Fee from
1 August 2023
£
%
increase
Fee from
1 August 2024
£
Non-Executive Chair fee 269,100 4.5 281,210
Non-Executive Director fee 64,688 4.5 67,599
Senior Independent Non-Executive Director 12,161 4.5 12,708
Audit and Remuneration Committee Chair fees 13,973 4.5 14,602
The Company’s Articles of Association specify an annual limit on Non-Executive Director fees of £500,000. This excludes the
fees for the Chair and additional fees payable to the Senior Independent Non-Executive Director and to Committee Chairs.
Shareholder approval is required to amend this limit.
Performance graph and table
The graph below shows the TSR performance over the past ten years of the Company, the FTSE 250 Index and the bespoke
Housebuilders’ Index (as defined in note a on page 148). The FTSE 250 Index has been selected as the most appropriate
‘broad equity market index’ as the Company has been a constituent of the FTSE 250 Index over this period. The bespoke
Housebuilders’ Index has been selected as these companies have been used for the Company’s long-term incentive plans.
This graph shows the value, as at 31 July 2024, of £100 invested in Bellway on 31 July 2014 compared with the value of
£100 invested in the FTSE 250 Index and £100 invested equally in each of the other housebuilders, who form part of the
Housebuilders Index. The other points plotted are the values at intervening financial year-ends.
Sou
rce: Datastream (Refinitiv) Bellway
Housebuilder’s Index
FTSE 250 Index
Total shareholder return (£, rebased)
350
300
250
200
150
100
50
0
Total shareholder return
31 July
2015
31 July
2016
31 July
2017
31 July
2018
31 July
2019
31 July
2020
31 July
2021
31 July
2022
31 July
2023
31 July
2024
164
136
199
198
209
276
172
212
264
219
212
137
149
141
120
171
152
150
178
280
194
148
223
31 July
2014
240
235
181
213
117118
287
Governance
150 Bellway p.l.c. Annual Report and Accounts 2024
Group Chief Executive total remuneration
The table below sets out the total remuneration for the Group Chief Executive over the same ten-year period as for the chart
overleaf, together with the percentage of annual bonus paid and the vesting of long-term incentives as a percentage of the
maximum (relating to the performance periods ending in that year).
2015 2016 2017 2018
(a)
2019
(b)
2020 2021 2022 2023 2024
Total remuneration
(£000)
1,960 2,785 3,468 1,737 1,220 1,110 1,998 1,738 1,089 1,715
Annual bonus paid
(as % of maximum)
88.8% 95.8% 93.8% 0.0% 76.7% 0.0% 99.5% 98.6% 20.9% 90%
PSP vesting (as a %
of maximum)
50.0% 100.0% 100.0% 99.8% 30.6% 47.7% 28.7% 0% 0% 0%
Notes:
a. Ted Ayres was absent during the 2017/18 financial year due to ill health and so the figures shown are lower than would normally be expected if he had been at work during the year.
b. Jason Honeyman was appointed as Group Chief Executive on 1 August 2018.
Percentage change in remuneration of Directors compared to workforce
The table below shows the annual percentage change in base salary, benefits and bonus between 2019/20 and 2023/24 in
respect of the Directors of the Company and the average for all other employees. Over time, the percentage change over five
years will eventually be disclosed.
2023–2024 2022–2023 2021–2022 2020–2021 2019–2020
% Change
in salary
/ fees
(a)
%
Change
in
benefits
% Change
in bonus
%
Change
in salary
/ fees
(a)
%
Change
in
benefits
%
Change
in bonus
%
Change
in salary
/ fees
%
Change
in
benefits
%
Change
inbonus
%
Change
in salary
/ fees
%
Change
in
benefits
%
Change
inbonus
%
Change
in salary
/ fees
%
Change
in
benefits
%
Change
inbonus
All other
employees
(b)
+6.7 +3.1 -9.4 +6.3 +1.6 +4.5 +6.0 +8.4 +83.2 +1.6 +8.3 -79.9 +2.6 +8.7 +17.8
J Honeyman
(Group Chief
Executive)
(c)
+3.5 -10.2 +346.0 +4.0 -11.9 -78.0 +3.2 -11.2 +2.6 +3.4 +9.8 +100 +25.6 +38.5 -100
K Adey
(Group Finance
Director)
+3.5 +1.6 +346.0 +6.5 -13.1 -77.4 +5.6 +3.3 +5 +3.4 +0.3 +100 -1.4 +2.4 -100
J Tutte (Chair)
(d)
+3.5 n/a n/a +140 n/a n/a +100 n/a n/a n/a n/a n/a n/a n/a n/a
S Whitney
(INED)
(f)
+10.3 n/a n/a +100 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
J Caseberry
(INED)
+3.5 n/a n/a +5.9 n/a n/a +3.2 n/a n/a +3.4 n/a n/a -1.4 n/a n/a
I McHoul
(INED)
+3.5 n/a n/a +5.9 n/a n/a +3.2 n/a n/a +3.4 n/a n/a +4.4 n/a n/a
Notes:
a. The comparative figures used for the Board are the actual salary and fees paid as per the single figure of remuneration table on page 147.
b. All other employee figures are calculated on a cash only basis, including the bonus which covers the prior year.
c. Explanations for large increases in prior years are provided in the previous Annual Reports.
d. John Tutte was appointed as Non Executive Chair during the 2021/22 financial year, having joined Bellway on the 1 March 2022.
e. Cecily Davis was appointed to the Board on 1 May 2024 and so a year-on-year comparison cannot be provided. As a result, Cecily has been excluded from the table.
f. Sarah Whitney was appointed to the Board 1 September 2022 and appointed as Senior Independent Director in December 2022.
CEO pay ratio
We are publishing our CEO pay ratio figures for the financial years 2018/19, to 2023/24. Over time, ten-year ratios will eventually
be disclosed.
Upper quartile Median Lower quartile
Financial year Method
Pay
ratio
Total pay
andbenefits
£
Salary
component
£
Pay
ratio
Total
pay and
benefits
£
Salary
component
£
Pay
ratio
Total
pay and
benefits
£
Salary
component
£
2018/19 A 19:1 62,168 50,200 28:1 42,845 22,647 40:1 29,858 23,305
2019/20 A 18:1 60,675 24,400 27:1 40,415 22,000 43:1 25,580 25,200
2020/21 A 31:1 65,866 52,279 45:1 44,864 40,556 68:1 29,886 24,750
2021/22 A 25:1 70,036 62,311 36:1 48,662 29,438 54:1 32,148 24,561
2022/23 A 15:1 74,421 55,000 22:1 49,903 40,215 34:1 32,422 26,462
2023/24
(a)
A 22:1 76,381 58,008 33:1 51,475 24,550 48:1 35,534 27,143
Notes:
a. Median value is based on total pay, although salary component is higher within the lower quartile for 2023/24.
151Bellway p.l.c. Annual Report and Accounts 2024
Governance
The pay ratios have been calculated as at 31 July 2024 using Option A of the Regulations, that is, the full-time equivalent pay
and benefits for all of our employees to identify those employees on the quartiles. Option A has been selected as it is the most
statistically accurate method of calculation. Employee benefits include company car, car allowance, private medical, employer
pension contributions and share option gains. All payments are included on a cash basis, with the exception of the annual
bonus for the Group Chief Executive. The annual bonus earned during the 2023/24 financial year, which is expected to be
paid in November 2024, has been approved for the Group Chief Executive, there is not an accurate estimate for all other staff,
therefore cash bonus paid during the year (relating to the 2022/23 financial year) has been used in the calculations.
The CEO pay ratio has increased year-in-year reflecting the higher payout under the annual bonus in FY24. A similar impact
can be seen in FY 2022 and FY 2021. The pay ratios reflect how remuneration arrangements differ as accountability increases for
more senior roles within the group. In particular the ratios reflect the weighting towards variable pay for the CEO which provides
a strong link between pay and performance and alignment with shareholder interests.
We are satisfied that the median pay ratio reported this year is consistent with our wider pay, reward and progression policies for
employees. The median reference employee has the opportunity for annual pay increases, annual performance payments and
career progression and development opportunities.
Importance of remuneration relative to dividends and Section 106 and CIL payments
The table below shows the relative expenditure of the Group in respect of employee remuneration, dividends and Section 106
and CIL payments, together with the percentage change in each, for the financial years ended 31 July 2023 and 31 July 2024.
The Directors have chosen dividends and Section 106 and CIL payments as comparators to employee costs as they consider
that these demonstrate the relative importance of the remuneration of its employees to the returns the Group generates to
shareholders and the contribution it makes to developing communities through Section 106 and CIL payments.
2024
£m
2023
£m
% change
Employee costs
(a)
168.7 191.5 (11.9)
Dividends
(b)
64.1 169.2 (62.1)
Section 106 and CIL payments
(c)
36.3 89.2 (59.3)
Notes:
a. Employee costs are calculated as wages and salaries, bonus and taxable benefits (including the Directors).
b. The dividend figures shown are the interim and final dividends paid or payable for the relevant financial year less forfeited dividends (see note 20 to the accounts).
c. The Section 106 and CIL payments figures are calculated from invoices received for these payments.
Dilution limits/shares held in trust to satisfy awards
The Bellway Employee Share Trust (1992) (the ‘Trust’) holds market-purchased shares to satisfy awards made under some of the
Company’s executive and employee share schemes. As at 31 July 2024, the Trust held 326,114 shares. It is the Company’s current
intention to use market-purchased shares to satisfy awards made under the PSP. Awards made under the deferred bonus plans
(to which the Executive Directors are not eligible) must be satisfied using market-purchased shares. The SRSOS uses new issued
shares. The Company’s share plans comply with the IA guidance on dilution limits and the position as at 31 July 2024 was:
Limit of 5% in any ten years under all executive share plans Actual 0.99%
Limit of 10% in any ten years under all share plans Actual 0.88%
Statement of voting at AGMs
The votes cast by proxy at AGMs in relation to resolutions regarding Directors’ remuneration are set out in the table below:
Directors’ Remuneration Policy
(binding vote at AGM on 6
December 2021)
Remuneration Report
(advisory vote at AGM
on 15 December 2023)
Number
of votes
% of
votes cast
Number
of votes
% of
votes cast
For 89,540,335 96.95 95,714,235 98.84
Against 2,815,436 3.05 1,119,756 1.16
Total votes cast (excluding votes withheld) 92,355,771 100 96,869,491 100
Votes withheld 206,210 35,500
At the AGM on 12 December 2024, the Company’s shareholders will have an advisory vote on the Remuneration Report and a
binding vote on the Directors’ Remuneration Policy.
On behalf of the Board
Jill Caseberry
Chair of the Remuneration Committee
14 October 2024
Remuneration Report continued
Governance
152 Bellway p.l.c. Annual Report and Accounts 2024
Sustainability Committee Report
Membership and meeting attendance
Director Date appointed to theCommittee
Number of
meetings
attended during
theyear
John Tutte
(Chair)
18 May 2023 3/3
Sarah Whitney 18 May 2023 3/3
Jill Caseberry 18 May 2023 3/3
Ian McHoul 18 May 2023 3/3
Cecily Davis 1 May 2024 1/2*
Keith Adey 18 May 2023 3/3
* Absence was due to commitments prior to joining the Board.
Focus areas for 2023/24
• To approve the Committee Terms of Reference.
• Approve the ‘Better with Bellway’ targets and KPIs for FY24.
• Continue to monitor progress of the ‘Better with
Bellway’strategy.
• Meet with key management with responsibility for the
delivery of the ‘Better with Bellway’ strategy.
Focus areas for 2024/25
• To review the Committee Terms of Reference in line with
updated guidance.
• Approve the ‘Better with Bellway’ targets and KPIs for FY25.
• Continue to monitor progress of the ‘Better with
Bellway’strategy.
• Meet with key management to review the implementation
of the ‘Better with Bellway’ strategy.
Responsibilities and terms of reference
The main areas of the Sustainability Committee’s (the
‘Committee’) responsibilities are:
• Debate, review and scrutinise the ‘Better with Bellway’
sustainability strategy and implementation plan and make
recommendations to the Board for approval.
• Monitor and challenge the objectives, KPIs and targets set
in relation to the implementation of the ‘Better with Bellway’
strategy, make recommendations for new KPIs and targets
and recommend these to the Board for approval.
• Scrutinise the implementation of major
‘Better with Bellway’ initiatives.
The Committee helps to drive the ‘Better with Bellway’
strategy, via best practice and sensible but
challenging internal targets, helping us meet our
long-term ESG aims.”
John Tutte
Chair of the Sustainability Committee
• Identify, debate, review and scrutinise the business
response to environmental and social risks with specific
focus on climate risks and opportunities.
• Review the ongoing appropriateness of the Group’s
approach to ESG issues in the context of external best
practice and monitor ESG compliance.
• Review the ongoing appropriateness and relevance of
policies relating to ESG matters.
Activities in 2023/24
• The Committee met in September 2023, May 2024 and
July 2024.
• The Committee Substantive Business, setting out standard
agenda items, was drafted during the year and approved by
the Board in May 2024.
• Key management met with the Committee and
presented an update on the ‘Better with Bellway’ strategy,
which includes a review of the KPIs and targets and
recommendations were made for future targets.
• Gap analysis was carried out by the ‘Better with Bellway’
leadership team, on the supply chain against the Next
Generation Benchmark requirements and presented to
the Committee.
• Cecily Davis joined the Committee in May 2024, and brings
extensive experience in the areas of legal, construction
and infrastructure.
Focus in 2024/25
• To approve the ‘Better with Bellway’ targets and KPIs for
FY25, ensuring they support the delivery of the overall
‘Better with Bellway’ strategy.
• Continue to monitor progress of the ‘Better with Bellway’
strategy, KPI’s and targets.
• Carry out training for the Non-Executive Directors on ESG
reporting requirements.
• Meet with key management who are responsible for the
delivery of the ‘Better with Bellway’ strategy.
• Review relevant policies and determine their
appropriateness in supporting the Groups
sustainability agenda.
• Review industry best practice in respect of ESG compliance.
John Tutte
Chair of the Sustainability Committee
14 October 2024
153Bellway p.l.c. Annual Report and Accounts 2024
Governance
Directors’ Report
The Directors of Bellway p.l.c. present their report in
accordance with Section 415 of the Companies Act 2006.
Bellway p.l.c. is the holding company of the Bellway Group of
companies and is a UK publicly listed company whose shares
are traded on the London Stock Exchange. The main trading
company is Bellway Homes Limited and this and all other
subsidiaries and joint arrangements of the Group, are listed in
note 26 to the accounts.
The following table sets out where information can be found,
which is required to be reported on in the Directors’ Report
but has been included elsewhere in the Annual Report and
Accounts and is cross-referenced here to avoid repetition.
Topic Page number
Directors 106 to 107
Appointment and
replacement of Directors 112 and in the Articles
Directors’ interests 149
Future developments 29 of the Strategic Report
Group undertakings 206
Environmental issues 34 to 61 of the Strategic Report
Section 172 statement/
reporting
62 of the Strategic Report
Greenhouse gas emissions 45 to 48 of the Strategic Report
Whistleblowing 128
Financial risk management 79 to 82 of the Strategic Report
Going concern 81 of the Strategic Report
Results and dividends
The profit for the year attributable to equity holders of
the parent company amounts to £130.5 million (2023 –
£365.0 million).
The Directors have proposed a final ordinary dividend for
the year ended 31 July 2024 of 38.0 per share (2023 – 95.0p).
This has not been included within creditors as it was not
approved by shareholders before the end of the financial
year. The Directors recommend payment of the final
dividend on Wednesday 8 January 2025 to shareholders on
the Register of Members at the close of business on Friday
29 November 2024.
The Directors have proposed a final ordinary dividend
for the year ended 31 July 2024 of 38.0p per share.”
Simon Scougall
Chief Commercial Officer and Company Secretary
Dividends paid during the year comprise the final dividend
of 95.0p per share in respect of the year ended 31 July 2023,
together with an interim dividend in respect of the year ended
31 July 2024 of 16.0p per share.
Directors’ indemnities and Directors’ and officers’
liability insurance
The Company carries appropriate insurance cover in respect
of possible legal action being taken against its Directors,
Officers and senior employees. The Articles provide the
Directors and Officers with further protection against liability
to third parties, subject to the conditions set out in the
Companies Act 2006. Such qualifying third-party indemnity
provision remains in force as at the date of this report.
Major interests in shares
As at 31 July 2024, and as at the date of this report, the
Company had been notified under DTR 5 of the following
interests, amounting to 3% or more of the voting rights in the
issued ordinary share capital of the Company:
As at 31 July 2024 As at 14 October 2024
Topic
Number of
shares with
voting rights
% total
voting
rights
Number of
shares with
voting rights
% total
voting
rights
BlackRock Inc 8,854,350 7.44 6,718,486 5.65
Baillie Gifford 7,126,810 5.99 6,958,535 5.85
Vanguard Group 6,358,956 5.34 6,663,749 5.60
Fidelity
Management
&Research 6,168,856 5.13 5,687,025 4.78
JPMorgan Asset
Management 5,492,027 4.61 5,966,717 4.49
Dimensional
Fund Advisors 5,297,361 4.45 5,338,009 4.49
Polaris Capital
Management 4,848,312 4.07 4,800,712 4.03
GLG Partners 4,121,659 3.46 1,976,669 1.66
Governance
154 Bellway p.l.c. Annual Report and Accounts 2024
Post balance sheet events
Post year end, the Group entered into both a lease agreement
for an industrial unit where Bellway will set up its own timber
frame manufacturing facility and placed an order for robotic
equipment which has the capability to manufacture both
open panel systems and pre-insulated closed panel timber
frame systems. This has increased capital commitments by
around £20m.
Information on those third parties with which the
Company has contracts or arrangements essential
to its business
The Company is party to a number of debt agreements
with major clearing banks. The withdrawal of such facilities
could have a material effect on the financing of the business.
There are no other arrangements that the Group considers to
be critical to the performance of the business.
Takeovers directive and change of control
The Company is party to a number of banking agreements
that may be terminable in the event of a change of control
of the Company. On a change of control, any outstanding
options and awards granted under the Group’s share
schemes would become exercisable, subject to any
performance conditions being met.
Share capital
The Company’s total issued share capital, as at 31 July
2024, consisted of 118,980,237 ordinary shares of 12.5p each.
Further details of the issued capital of the Company can be
found in note 18 to the accounts. The rights and obligations
attaching to the ordinary shares in the Company are set out in
the Articles of Association (the ‘Articles’). Copies of the Articles
can be obtained from Companies House or by writing to
the Chief Commercial Officer and Company Secretary at the
Company’s registered office.
Restrictions on the transfer of shares
The restrictions on the transfer of shares are set out in the
Articles. In compliance with the Company’s Share Dealing
Code, Company approval is required for Directors, certain
employees and those persons closely associated with them
to deal in the Company’s ordinary shares. No person has
special rights of control over the Company’s share capital.
There has been no amendments to these procedures during
the year.
Rights in relation to the shares held in the
employee benefit trust
The voting rights on shares held in the Bellway Employee
Share Trust (1992) in relation to the Company’s employee
share schemes are exercisable by the trustees.
Restrictions on voting rights
Details of the deadlines for exercising voting rights are set out
in the Articles. The Directors are not aware of any agreements
between shareholders that may result in restrictions on the
transfer of securities or on voting rights.
Amendments to the Articles
The Company may amend its Articles by passing a special
resolution at a general meeting of its shareholders.
Powers of the Board
The business and affairs of the Company are managed
by the Directors, who may exercise all such powers of the
Company as are, not by law or by the Articles, required to be
exercised by the Company in general meetings. Subject to
the provisions of the Articles, all powers of the Directors are
exercised at meetings of the Directors, which have been
validly convened and at which a quorum is present.
Allotment of shares
During the year, 52,927 new ordinary shares were issued to
satisfy awards made under the Company’s employee share
schemes. The Directors have authority to allot shares within
limits agreed by shareholders. Details of the renewal of this
authority, including the resolutions which seek to renew this
authority, are set out in the Notice of Meeting of the AGM, to
be held on Thursday 12 December 2024.
Purchase of the Company’s own shares
The Company was given authority at the AGM on
15 December 2023 to purchase its own ordinary shares.
On 28 March 2023, the Group announced, ‘The Buyback
Programme’, with the Board approving a return of surplus
capital of £100 million to shareholders, an initial tranche of
£50 million (First Tranche) was completed on 16 June 2023,
followed by a further tranche of £50 million (Second Tranche),
which commenced on 19 June 2023 and completed on
27 October 2023. The Company repurchased 4,560,057
shares for an aggregate value of circa £100 million.
Listing rules
There are no disclosures required by LR9.8.4 that apply to
the Company. We have considered the Financial Conduct
Authority’s (‘FCA’) update to its Listing Rules in July 2024,
including the categories under which securities are listed on
the Official List. We also welcome the Financial Reporting
Council’s publication of the 2024 Corporate Governance
Code (2024 Code) which will apply to Bellway for 1 August
2025 (FY26) and 1 August 2027 (FY28) in relation to procision
29. We are in the process of reviewing our governance
framework and putting arrangements in place to ensure
compliance with the 2024 Code in advance of the
effective dates.
Accountability and audit
The Going Concern Statement, Long-Term Viability Statement
and the Statement of Directors’ Responsibilities in respect of
the Annual Report and Accounts are shown on pages 81, 125
and 156 respectively.
The Audit Committee, whose role is detailed on pages 118 to
129, has meetings at least twice a year with the Company’s
auditor, Ernst & Young LLP.
155Bellway p.l.c. Annual Report and Accounts 2024
Governance
Directors’ Report continued
People
The key role that our people perform is described throughout
the Strategic Report. In addition, supported by ‘Better with
Bellway’ sustainable strategy and the Employer of Choice
business priority, we aim to be an Employer of Choice
that embraces diversity and promotes a safe and inclusive
environment. More details are included with the ‘Better with
Bellway’ section on pages 42 to 43.
The following disclosures provide additional information on
how we treat our people and how we engage with them.
We are committed to fostering a diverse and inclusive
workplace where everyone is valued and treated with
respect. It is our policy to develop and apply, throughout
the Group, procedures and practices, which are designed to
ensure that equal access is provided to all of our employees,
or those who seek employment with the Group, irrespective
of their age, colour, disability, ethnic origin, gender, marital
status, nationality, parental status, race, religion, belief, or
sexual orientation.
All employees, whether part-time, full-time, or temporary,
are treated fairly and equally. Selection for employment,
promotion, training, or other matters affecting their
employment is on the basis of aptitude and ability.
All employees are supported and encouraged to develop
to their full potential and the talents and resources of the
workforce are fully utilised to maximise the efficiency of
the organisation. Training at each division is planned and
monitored through an annual training plan.
It is our policy to give full and fair consideration to the
employment needs of disabled persons (and persons
who become disabled while employed by the Group)
and to comply with any current legislation with regard to
disabled persons.
The importance of good communications with employees
is recognised by the Directors and senior management
team. Employee Listening Groups are held on a regular
basis to engage in open communication and a new internal
communication platform ‘Pathway’ launched during the
financial year. Each division maintains good employee
relations using a variety of means appropriate to its own
particular needs, with guidance, when necessary, from
Head Office.
All new employees, when eligible, are automatically entered
into the Group’s pension arrangements. In addition, we
operate a savings-related share option scheme and have
discretionary bonus arrangements in place. We also provide
life assurance cover to all of our employees, offer a private
medical scheme (depending on seniority), and enhanced
family friendly provisions, and the opportunity to purchase
additional annual leave.
Health and safety at work
We promote all aspects of health and safety throughout our
operations in the interests of employees, subcontractors,
suppliers, customers and visitors to our sites and premises.
This is further supported by our sustainable approach, ‘Better
with Bellway’, and the Building Quality Homes, Safely business
priority. More details can be found within the ‘Better with
Bellway’ section on pages 49 to 52.
Health and safety issues are considered at each Board
meeting and are addressed in the Strategic Report, and
on our website www.bellwayplc.co.uk/sustainability.
The Board receives external advice and training from
specialist advisers on both the Directors’ and the Company’s
regulatory obligations.
Auditor
In accordance with Section 489 of the Companies Act
2006, a resolution for the re-appointment of Ernst & Young
LLP as auditor of the Company is to be proposed at the
forthcoming AGM.
AGM – special business
Six resolutions will be proposed as special business at
the AGM to be held on Thursday 12 December 2024.
Explanatory notes on these resolutions are set out in the
Notice of Meeting of the AGM.
Disclosure of all relevant information to theauditor
The Directors who held office at the date of this report confirm
that, so far as they are each aware, there is no relevant audit
information of which the Company’s auditor is unaware and
that each Director has taken all the steps that they ought to
have taken as a Director to make themselves aware of any
relevant audit information and to establish that the Company’s
auditor is aware of that information. This confirmation is given,
and should be interpreted in accordance, with the provisions
of Section 418 of the Companies Act 2006.
Statement of Directors’ responsibilities in respect
of the financial statements
The Directors are responsible for preparing the Annual Report
and the Financial Statements in accordance with applicable
United Kingdom law and regulations.
Company law requires the Directors to prepare Financial
Statements for each financial year. Under that law, the
Directors have elected to prepare the Group and parent
company Financial Statements in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006. Under company
law, the Directors must not approve the Financial Statements
unless they are satisfied that they give a true and fair view of
the state of affairs of the Group and the Company and of the
profit or loss of the Group and the Company for that period.
Under the Financial Conduct Authority’s Disclosure Guidance
and Transparency Rules, Group Financial Statements are
required to be prepared in accordance with international
financial reporting standards (‘IFRS’) as adopted by the UK.
Governance
156 Bellway p.l.c. Annual Report and Accounts 2024
In preparing these Financial Statements the Directors are
required to:
• Select suitable accounting policies in accordance with IAS 8
Accounting Policies, Changes in Accounting Estimates and
Errors, and then apply them consistently;
• Make judgements and accounting estimates that are
reasonable and prudent;
• Present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
• Provide additional disclosures, when compliance with
the specific requirements in IFRS is insufficient, to enable
users to understand the impact of particular transactions,
other events and conditions on the Group and Company
financial position and financial performance;
• In respect of the Group Financial Statements, state whether
international accounting standards in conformity with
the requirements of the Companies Act 2006 and IFRSs
as adopted by the UK have been followed, subject to
any material departures disclosed and explained in the
Financial Statements;
• In respect of the parent company Financial Statements,
state whether UK adopted international accounting
standards in conformity with the requirements of the
Companies Act 2006 have been followed, subject to
any material departures disclosed and explained in the
Financial Statements; and
• Prepare the Financial Statements on the going concern
basis, unless it is appropriate to presume that the Company
and/or the Group will not continue in business.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Company’s and Group’s transactions and disclose with
reasonable accuracy at any time the financial position of the
Company and the Group and enable them to ensure that
the Company and the Group Financial Statements comply
with the Companies Act 2006. They are also responsible for
safeguarding the assets of the Group and parent company
and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
Under applicable law and regulations, the Directors are also
responsible for preparing a Strategic Report, Directors’ Report,
Directors’ Remuneration Report and Corporate Governance
Statement that comply with that law and those regulations.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information included
on the Company’s website.
The Board consider the Annual Report and Accounts,
taken as a whole, is fair, balanced, and understandable,
and provides the information necessary for shareholders to
assess the Company’s position, performance, business model
and strategy.
Directors’ responsibility statement (DTR 4.1)
The Directors confirm, to the best of their knowledge:
• That the consolidated Financial Statements, prepared in
accordance with international accounting standards in
conformity with the requirements of the Companies Act
2006 and IFRSs as adopted by the UK, give a true and fair
view of the assets, liabilities, financial position and profit
of the parent company and undertakings included in the
consolidation taken as a whole;
• That the Annual Report, including the Strategic Report,
includes a fair review of the development and performance
of the business and the position of the Company and
undertakings included in the consolidation taken as a
whole, together with a description of the principal risks and
uncertainties that they face; and
• That they consider the Annual Report, taken as a whole,
is fair, balanced and understandable and provides the
information necessary for shareholders to assess the
Company’s position, performance, business model
and strategy.
By order of the Board
Simon Scougall
Chief Commercial Officer and Company Secretary
14 October 2024
157Bellway p.l.c. Annual Report and Accounts 2024
Governance
Independent Auditor’s Report to the Members of Bellway p.l.c.
Opinion
In our opinion:
• Bellway p.l.c.’s Group financial statements and Parent
Company financial statements (the “financial statements”)
give a true and fair view of the state of the Group’s and of
the Parent Company’s affairs as at 31 July 2024 and of the
Group’s profit for the year then ended;
• the Group financial statements have been properly
prepared in accordance with UK adopted international
accounting standards;
• the Parent Company financial statements have been
properly prepared in accordance with UK adopted
international accounting standards as applied in
accordance with section 408 of the Companies Act 2006;
and
• the financial statements have been prepared in accordance
with the requirements of the Companies Act 2006.
We have audited the financial statements of Bellway p.l.c.
(the‘Parent Company’) and its subsidiaries (the ‘Group’) for
the year ended 31 July 2024 which comprise:
Group Parent Company
Group Income Statement for
the year then ended
Company Statement of
Changes in Equity for the
year then ended
Group Statement of
Comprehensive Income for the
year then ended
Company Balance Sheet
as at 31 July 2024
Group Statement of Changes in
Equity for the year then ended
Company Statement of
cash flows for the year
thenended
Group Balance Sheet as at 31
July 2024
Related notes 1 to 29 to
the financial statements,
including material
accounting policy
information
Group Cash Flow Statement for
the year then ended
Related notes 1 to 29 to the
financial statements, including
material accounting policy
information
The financial reporting framework that has been applied
in their preparation is applicable law and UK adopted
international accounting standards and as regards the Parent
Company financial statements, as applied in accordance with
section 408 of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK) and applicable law.
Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit of the
financial statements section of our report. We believe that the
audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Independence
We are independent of the Group and Parent in accordance
with the ethical requirements that are relevant to our audit of
the financial statements in the UK, including the FRC’s Ethical
Standard as applied to listed public interest entities, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements.
The non-audit services prohibited by the FRC’s Ethical
Standard were not provided to the Group or the Parent
Company and we remain independent of the Group and
theParent Company in conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that
the directors’ use of the going concern basis of accounting
in the preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the Group
and Parent Company’s ability to continue to adopt the going
concern basis of accounting included:
• In conjunction with our walkthrough of the Group’s
financial close process, obtaining an understanding of
management’s going concern assessment process and
challenging management to ensure key factors were
considered in their assessment.
• Assessing the appropriateness of the duration of the going
concern assessment period to 31 July 2026 and considering
the existence of any significant events or conditions beyond
this period based on our procedures on the Group’s
business plan, cash flow forecasts and from knowledge
arising from other areas of the audit.
• Obtaining management’s going concern assessment,
including the cash forecast, for the going concern period
through to 31 July 2026 and testing these for arithmetical
accuracy. We obtained an understanding of each of
management’s modelled scenarios, including the base
case, severe downside cases and reverse stress test
case. The reverse stress test case had been prepared by
management to demonstrate the point at which the Group
would run out of cash.
• Assessing the historical accuracy of forecasting and
challenging the appropriateness of key assumptions
in management’s forecasts, including the impact of
housing completions and average selling price on
revenue generation. We also assessed these against
information from the Office of National Statistics, with
consideration to trends in respect of house price inflation,
noting no contradictory indicators. We considered the
appropriateness of the methods used to calculate the
cash flow forecasts and determined through inspection
and testing of the methodology and calculations that the
methods utilised were appropriately sophisticated to be
able to make an appropriate assessment of going concern.
• Verifying the inputs into the cash flow forecasts, the debt
facility terms, and reconciling the liquidity position as at
31 July 2024. We further reviewed the Group’s borrowing
facilities to both verify their availability to the Group aligned
with their underlying contractual terms and to validate the
financial covenants in relation to the available facilities.
Governance
158 Bellway p.l.c. Annual Report and Accounts 2024
• Assessing the plausibility of the downside scenarios and
reverse stress test prepared by management. We did this
by challenging the assumptions made and considering
indicators of contradictory evidence.
• Considering any mitigating factors included in the
downside scenarios that are within control of the Group.
This includes assessment of the Group’s operating and
non-operating cash outflows relating to uncommitted land
and work in progress spend, discretionary bonus payments
and dividend payments and evaluating the Group’s ability
to control these outflows as mitigating actions if required.
• Assessing management’s consideration of material climate
change impacts in the going concern period, including
incorporation of the expected costs of applying the Future
Homes Standard during the going concern period.
• Reviewing the Group’s going concern disclosures
included in the Annual Report and Accounts in order to
assess whether the disclosures appropriately described
the assessment management performed and the key
judgements taken.
Key observations
• The directors’ assessment forecasts that the Group
will maintain sufficient liquidity throughout the going
concern assessment period in the base case scenario.
Under management’s reverse stress test (which comprises a
significant additional investment in land of £525m over and
above that assumed the base case, followed by a reduction
in private home completions of approximately 50% from
31 January 2025 compared to the 12 month pre-stress peak
achieved in FY22, and average selling prices on private
homes subsequently reducing by 15%), liquidity headroom
is eliminated in May 2026. Management has concluded the
likelihood of this combination of events to be remote.
• Other than the impact of the Future Homes Standard,
we have not identified any material climate-related risks
that should be incorporated into the Group’s forecasts to
31 July 2026.
Based on the work we have performed, we have not
identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant
doubt on the Group and Parent Company’s ability to continue
as a going concern for the period to 31 July 2026.
In relation to the Group and Parent Company’s reporting
on how they have applied the UK Corporate Governance
Code, we have nothing material to add or draw attention to in
relation to the directors’ statement in the financial statements
about whether the directors considered it appropriate to
adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors
with respect to going concern are described in the relevant
sections of this report. However, because not all future
events or conditions can be predicted, this statement is
not a guarantee as to the Group’s ability to continue as a
going concern.
Overview of our audit approach
Audit scope • We performed an audit of the complete
financial information of Bellway p.l.c.
and its components
• The components where we performed full
scope audit procedures accounted for 99%
of profit before taxation, 99% of revenue and
99% of total assets.
Key audit
matters
• Risk of inappropriate revenue recognition;
• Risk of inappropriate cost of sales
recognition and valuation of work
in-progress and land on sites
under development;
• Risk of inappropriate valuation of land on
sites not yet under development; and
• Risk of inappropriate recognition of legacy
building safety improvement provisions.
Materiality • Overall Group materiality of £16.7m
which represents 5% of normalised profit
before taxation.
An overview of the scope of the Parent Company
and Group audits
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality
and our allocation of performance materiality determine
our audit scope for each company within the Group.
Taken together, this enables us to form an opinion on the
consolidated financial statements. We take into account
size, risk profile, the organisation of the Group, changes in
the business environment, the potential impact of climate
change and other factors such as recent Internal Audit
results when assessing the level of work to be performed at
each component.
In assessing the risk of material misstatement to the Group
financial statements, and to ensure we had adequate
quantitative coverage of significant accounts in the financial
statements, of the 12 reporting components of the Group, we
selected 2 components covering entities which represent the
principal business units within the Group.
Of the 2 full scope components selected, which were
selected based on their size or risk characteristics, we
performed an audit of the complete financial information.
The full scope components accounted for 99% (2023: 99%)
of the Group’s profit before taxation, 99% (2023: 99%) of
the Group’s revenue and 99% (2023: 99%) of the Group’s
total assets.
The remaining 10 components together represent 1% of
the Group’s profit before taxation. For these components,
we performed other procedures, including analytical
review, testing of consolidation journals, and intercompany
eliminations to respond to any potential risks of material
misstatement to the Group financial statements. The statutory
audits of these 10 components were performed concurrently
with the Group audit.
Changes from the prior year
There are no changes to our scoping compared to the
prior year.
159Bellway p.l.c. Annual Report and Accounts 2024
Governance
Involvement with component teams
All audit work performed for the purposes of the audit was
undertaken by the Group audit team.
Climate change
Stakeholders are increasingly interested in how climate
change will impact Bellway p.l.c. The Group has determined
that the most significant future impacts from climate change
on their operations will be from evolving legal and regulatory
requirements (e.g. the Future Homes Standard) and the
availability of more efficient products and technologies to
deliver climate-resilient homes. These are explained on
pages 88 to 95 in the required Task Force On Climate Related
Financial Disclosures and on page 83 in the principal risks
and uncertainties. They have also explained their climate
commitments on pages 34 to 38. All of these disclosures
form part of the “Other information,” rather than the audited
financial statements. Our procedures on these unaudited
disclosures therefore consisted solely of considering whether
they are materially inconsistent with the financial statements
or our knowledge obtained in the course of the audit or
otherwise appear to be materially misstated, in line with our
responsibilities on “Other information”.
In planning and performing our audit we assessed the
potential impacts of climate change on the Group’s
business and any consequential material impact on its
financial statements.
The Group has explained in the Basis of Preparation note
on page 176 how they have reflected the impact of climate
change in their financial statements and how they have
considered the impact of climate change, specifically
providing an assessment of inventories and how they
could be affected by measures taken to address additional
requirements included in the Future Homes Standard.
Management concluded in this assessment that no issues
were identified that would have a material impact on the
carrying value of the Group’s assets or liabilities or have any
other material impact on the financial statements.
Our audit effort in considering the impact of climate change
on the financial statements was focused on evaluating
management’s assessment of the impact of climate risk,
physical and transition, their climate commitments and the
effects of material climate risks disclosed on page 83. We also
understood the Group’s strategy to address these risks that
may affect the financial statements and our audit.
As part of this evaluation, we performed our own risk
assessment, supported by our climate change specialists, to
determine the risks of material misstatement in the financial
statements from climate change which needed to be
considered in our audit. We identified the specific impact of
climate change risks relating to the valuation of inventory,
including land and work-in-progress under development
arising from the requirements of the Future Homes Standard.
Specifically, we considered the timing and nature of future
cost assumptions underpinning the valuation of land and
work-in-progress under development. We did this by
understanding how future cost estimates were included
within the site margin calculation in respect of the costs of
applying the Future Homes Standard, required to be applied
to all units without foundations constructed prior to its
implementation. We further identified the specific impact of
climate change risks relating to the valuation of land not yet
under development. We considered the impact of physical
climate risks, with consideration to land bank at flood risk
locations, for a sample of items.
We also evaluated the Directors’ considerations of climate
change risks in their assessment of going concern and
viability and associated disclosures. Where considerations
of climate change were relevant to our assessment of going
concern, these are described above.
We read the climate related information within the Annual
Report, which included the Group’s Task Force for Climate
Related Financial Disclosures and considered consistency
with the financial statements and our audit knowledge.
As described above, we considered the impact of climate
change on the financial statements to impact certain key audit
matters, principally cost of sales recognition and the valuation
of work-in-progress and land on sites under development.
Details of our procedures and related findings are included in
our key audit matters below.
Key audit matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
financial statements of the current period and include the
most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These matters
included those which had the greatest effect on: the overall
audit strategy, the allocation of resources in the audit; and
directing the efforts of the engagement team. These matters
were addressed in the context of our audit of the financial
statements as a whole, and in our opinion thereon, and we
do not provide a separate opinion on these matters.
Independent Auditor’s Report to the Members of Bellway p.l.c. continued
Governance
160 Bellway p.l.c. Annual Report and Accounts 2024
Risk Our response to the risk
Key observations communicated
to the Audit Committee
Inappropriate
revenue recognition
Refer to the Audit Committee
Report (page 122); Accounting
policies (pages 176 to 177); and
Note 1 and 8 of the Consolidated
Financial Statements (pages 178
to 179 and 186).
The Group has reported:
• Revenues of £2,380.2m
(2023: £3,406.6m).
• Trade receivables of £27.0m
(2023: £34.6m).
We identified a specific risk
of fraud and error in respect
of inappropriate revenue
recognition arising from sales
transactions being recorded
ahead of performance
obligations being satisfied, being
legal or practical completion.
There is a risk that management
may recognise revenue in
advance of legal or practical
completion of plot sale through
inappropriate application of cut
off or manual postings recording
revenue in an earlier period
than appropriate.
We focused our procedures on
the occurrence of revenue and
existence of trade receivables.
There is no change in our risk
assessment from the prior year.
Walkthrough and controls
• We performed walkthroughs of each significant class
of revenue transactions which consists of private sales
and housing association sales and assessed the design
effectiveness of key transaction controls.
Timing of revenue recognition
• We applied a data analytics approach which allowed us to
evaluate full populations of revenue transactions across all
trading divisions to focus on any anomalies and unusual
trends in respect of timing. This work has also enabled us
to obtain assurance through a 3-way correlation between
sales, accounts receivables and cash postings. We tested this
correlation through a sample of revenue transactions from
cash entries to source documentation. We also searched
for associated identification of transactions which were
processed outside of the expected transaction flow.
• We reviewed the output of the work performed by internal
audit in respect of revenue recognised on plot completions
2 weeks prior and 2 weeks post the year end. We do not
rely on the work performed by internal audit, therefore in
line with our identified audit risk, we tested items classified as
higher risk and agreed these items to completion statements
to confirm the performance obligation was satisfied in
advance of year end.
• We performed test of details in relation to unit sales at year
end. We agreed a sample of transactions pre-year end and
post year end to legal or practical completion statements or
evidence of cash receipts. We selected these transactions
randomly to incorporate unpredictability within our testing.
We confirmed that revenue recognition is appropriate based
on the performance obligation being satisfied when practical
completion takes place.
Management override
• We performed inquiries of management at Group and
divisions regarding awareness of instances of fraud.
We extended these inquiries beyond the finance team and
inquired with Internal Audit, the Group Chief Commercial
Officer and Company Secretary, Regional Chairs and the
Divisional Director teams.
• We performed specific procedures in relation to manual
journals impacting revenue. We focused on entries with
specific characteristics, such as journals from outside normal
revenue patterns and those with unusual descriptions.
We did not identify any
evidence of material
misstatement in revenue
recognised in the year as
a result of inappropriate
revenue recognition,
application of cut-off or
management override.
161Bellway p.l.c. Annual Report and Accounts 2024
Governance
Risk Our response to the risk
Key observations communicated
to the Audit Committee
Inappropriate cost of sales
recognition and valuation of
work-in-progress and land on
sites under development
Refer to the Audit Committee
Report (page 122); Accounting
policies (pages 176 to 177); and
Note 3 and 7 of the Consolidated
Financial Statements (pages 181
and 185 to 186).
The Group has reported:
• Cost of sales before net legacy
building safety expense of
£1,999.1m (2023: £2,719.3m)
• Land £2,431.4m (2023: £2,578.8)
• Work-in-progress of £2,123.9m
(2023: £1,861.6m).
• Showhomes £145.0m
(2023: £117.2m).
The economic environment in
FY24 has been challenging, with
higher interest and mortgage
rates impacting the affordability
of new homes, combined with
increased input costs and the
ongoing cost-of-living crisis,
having affected consumer
confidence. Consequently, this
has impacted customer demand
for new homes and presents
a greater risk of deterioration
in margin.
There is a risk that costs of sales
and margin recognised in the
financial statements and resulting
valuation of work in progress
(including land in respect of
sites under development) may
be misstated if the site margin is
incorrectly determined, whether
arising from fraud or error.
Walkthrough and controls
• We performed a walkthrough of management’s transaction
controls in place covering the monitoring and updating of
certain site valuations to assess design effectiveness.
• We attended and observed the valuation meeting at
8 divisions held closest to year end. As part of this, we
observed the level of review applied by management in
evaluating assumptions within site valuations.
• We confirmed that management action logs were reviewed
at the valuation meetings attended. This included ensuring
the process which is undertaken to challenge the margin,
forecast costs to complete and any other factors that could
impact on the margin was followed in accordance with the
Group Commercial Policy.
Testing appropriateness of assumption underpinning
site margin
We utilised data analytics in order to identify higher risk
sites based on certain risk indicators. We identified certain
sites for testing and performed the following procedures
where appropriate:
• We assessed management’s inputs into projected future
selling prices by developing an expectation of revenue
at a plot level, utilising historical sales experience and
considering the impact of trends in house price inflation.
We assessed this using the average selling price on
sold plots, based on house types and square footage.
Where necessary we further corroborated exceptions to
advertised plot release prices and/or selling prices recorded
in the Bellway sales system.
• We assessed management’s inputs into projected costs
on a site by site basis. We did this by performing a detailed
review of the cost estimate and sampling key elements to
supporting documentation including subcontractor orders,
quotations, tender documentation and invoices. We also
obtained supporting correspondence with suppliers in
respect of price increases and variations where relevant.
• We enquired of management regarding their assessment
of the impact of climate change on the forecast costs to
complete. In order to assess the reasonableness of their
assumptions, we selected a sample of sites with construction
phases beyond FY24. This was in order to assess for
those sites impacted by the Future Homes Standard, that
the application of future homes cost assumptions were
appropriately reflected within the valuations.
• We performed specific procedures to assess whether there
were material movements recorded in the final stages of site
completion, the net impact of this was not material.
• We tested a sample of developments where the last plot was
sold during FY24 and compared the final site margin to the
previous quarterly valuation to assess whether the previous
quarterly valuation was reasonable.
• We performed specific procedures to assess whether there
have been any material movements in the site margins post-
year end. Where we identified sites with margin adjustments,
the net impact of this was not material.
• We performed inquiries of Internal Audit, Regional
Chairs and the Divisional Director teams to further
understand whether there are any other specific issues
requiring evaluation.
We are satisfied the cost
of sales margin and
valuation of work-in-
progress and land on
sites under development
is appropriate
Independent Auditor’s Report to the Members of Bellway p.l.c. continued
Governance
162 Bellway p.l.c. Annual Report and Accounts 2024
Risk Our response to the risk
Key observations communicated
to the Audit Committee
Inappropriate valuation
of land on sites not yet
under development
Refer to the Audit Committee
Report (page 123); Accounting
policies (pages 176 to 177); and
Note 7 of the Consolidated
Financial Statements (pages 185
to 186).
The Group has reported
total land of £2,431.4m
(2023: £2,578.8m), of which
£570.0m (2023: £659.5m) relates
to land interests that are either
not owned or unconditionally
contracted, or without detailed
planning permission.
Land held without detailed
planning permission is initially
recorded at cost and reviewed
for impairment with consideration
of the value in use of the land
and assessment of likelihood of
achieving planning consent.
There is a risk that land is valued
at an amount that is higher
than its recoverable amount,
particularly where there are
undeveloped sites where
planning permission is yet to be
granted or where development
on the land is considered no
longer feasible.
The risk in respect of
inappropriate valuation of
land on sites not yet under
development is heightened
in the current year due to
the UK’s current macro-
economic conditions.
Walkthrough and controls
• We understood management’s policies and performed a
walkthrough the controls in place covering the valuation of
land on sites not yet under development.
Testing appropriateness of the valuation of land
• For a sample of items included within the land bank
not under development, we challenged management’s
assumptions in respect of land viability, with consideration
of current economic factors impacting forecast margin
calculations. Our sample included regional locations
experiencing more severe economic impacts and/or
reduction in house prices at a greater rate.
• We performed test of details on the land bank and reviewed
the status of planning permissions, agreeing to supporting
information. We reviewed local authority planning websites
for evidence of status of planning permissions and
consultation outcomes.
• For our sampled items we considered the impact of physical
climate risks, with consideration to land bank at flood risk
locations, for further indicators of impairment.
• We performed inquiries of Internal Audit, Regional Chairs
and the Divisional Director teams to further understand
whether there are any potential impairment indicators.
Testing the basis of management’s provision calculation
• We obtained management’s fire provision schedule
showing the brought forward fire provision, amounts spent
and recovered, amounts further provided or released,
and additional amounts recognised in respect of the
Self-Remediation Terms and final year end provision,
andunderstood significant movements.
• We performed procedures on sites with known claims.
We tested movements in the year, agreeing significant
costs and recoveries to supporting documentation and
agreed assumptions to third party support where available.
We tested items of cash spend incurred in the year in excess
of our testing threshold to supporting invoices, contractor
certification or payment applications.
• We obtained an understanding of the methodology used
within valuation reports, through discussion with external
consultants. This was in order to understand and challenge
the basis of estimates made and to discuss the status of
the most material provisions. We assessed the scope of
the consultants work in accordance with government
guidance. As part of our procedures, we assessed the
objectivity, experience and competency of management’s
external specialist.
We are satisfied
that the valuation of
land on sites not yet
under development
is appropriate
163Bellway p.l.c. Annual Report and Accounts 2024
Governance
Risk Our response to the risk
Key observations communicated
to the Audit Committee
Inappropriate recognition
of legacy building safety
improvement provisions
Refer to the Audit Committee
Report (page 124); Accounting
policies (pages 176 to 177);
and Notes 2 and 10 of the
Consolidated Financial
Statements (pages 179 to 181
and188 to 189).
The Group has reported:
• Net Self Remediation Terms
(‘SRT’) and associated
review provision of £463.6m
(2023: £477.7m).
• Structural defects provision
of£45.6m (2023: £30.5m).
• Net legacy building
safety expense of £19.9m
(2023: £38.6m).
There is estimation uncertainty
and subjectivity in determining
the most likely costs which will
be required in order to remediate
affected properties based on the
latest legal interpretation and
government guidance.
There is no change in our risk
assessment from the prior year.
Walkthrough and controls
• We performed a walkthrough of management’s transaction
controls in place over monitoring and updating the SRT and
associated review and structural defects provisions to assess
design effectiveness.
• We attended the valuation meeting closest to year end for
the Building Safety division. As part of this, we observed
the level of review applied by management in evaluating
the status of live and pending projects (known claims) and
challenging assumptions. This included estimates provided
by third party consultants underpinning the amounts
recognised relating to live projects within management’s
provision calculation.
Testing the basis of management’s provision calculation
• We obtained management’s provision schedules showing
the brought forward provisions, amounts spent and
recovered, amounts further provided or released, additional
amounts recognised and the final year end provisions, and
understood significant movements.
• We performed procedures on sites with known claims.
We tested movements in the year, agreeing significant costs
and recoveries to supporting documentation and agreed
assumptions to third party support where available.
• We tested items of cash spend incurred in the year in excess
of our testing threshold to supporting invoices, contractor
certification or payment applications.
• We obtained an understanding of the methodology used
within valuation reports, through discussion with external
consultants. This was in order to understand and challenge
the basis of estimates made and to discuss the status of
the most material provisions. We assessed the scope of
the consultants work in accordance with government
guidance. As part of our procedures, we assessed the
objectivity, experience and competency of management’s
external specialist.
• We performed testing on management’s assumptions, with
support from EY Insurance Risk and Actuarial specialists,
regarding the costs of remediation per plot, the number
of plots to be remediated, the time period for the work
to be completed and the discount factor applied to the
overall provision.
• We performed sensitivity analysis on the provision in order to
establish whether these could give rise to material variances.
• We further performed divisional inquiries with all Regional
Chairs and Divisional Finance teams to understand latest
obligations. We further made inquiries of the Group
Finance Director and the Group Chief Commercial Officer
and Company Secretary. We did not identify any further
known or potential issues to be included in management’s
provision calculation.
Disclosures within the financial statements
• We assessed the appropriateness of the disclosures included
within the Financial Statements in relation to provisions
and contingent liabilities, including the disclosure of the
assumptions and associated sensitivities in relation to the key
sources of estimation uncertainty.
Based on the procedures
performed, including
testing of key movements,
direct inquiry of
management’s expert and
engaging EY Insurance
Risk and Actuarial
specialists in the audit of
assumptions underpinning
management’s provision
calculation, we are satisfied
that the resultant year end
provision is fairly stated.
Independent Auditor’s Report to the Members of Bellway p.l.c. continued
Governance
164 Bellway p.l.c. Annual Report and Accounts 2024
Our application of materiality
We apply the concept of materiality in planning and
performing the audit, in evaluating the effect of identified
misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that,
individually or in the aggregate, could reasonably be
expected to influence the economic decisions of the users
of the financial statements. Materiality provides a basis for
determining the nature and extent of our audit procedures.
We determined materiality for the Group to be £16.7 million
(2023: £24.2 million), which is 5% (2023: 5%) of normalised
profit before taxation (2023: profit before taxation). We believe
that normalised profit before taxation, calculated as the
average of 2023 and 2024 profit before taxation, provides
us with the most relevant performance measure to the
stakeholders of the Group and reflects the significant
fluctuation in profitability arising from market conditions that
are not expected to recur in future years. It is therefore an
appropriate basis for materiality. We determined materiality
for the Parent Company to be £3.2 million (2023: £3.0 million),
which is 0.5% (2023: 0.5%) of total assets.
Performance materiality
The application of materiality at the individual account
or balance level. It is set at an amount to reduce to
an appropriately low level the probability that the
aggregate of uncorrected and undetected misstatements
exceeds materiality.
On the basis of our risk assessments, together with our
assessment of the Group’s overall control environment,
our judgement was that performance materiality was 75%
(2023: 75%) of our planning materiality, namely £12.5 million
(2023: £18.2 million). We have set performance materiality at
this percentage due to the level of misstatements identified in
prior years being low
Audit work at component locations for the purpose of
obtaining audit coverage over significant financial statement
accounts is undertaken based on a percentage of total
performance materiality. The performance materiality set for
each component is based on the relative scale and risk of
the component to the Group as a whole and our assessment
of the risk of misstatement at that component. In the current
year, the range of performance materiality allocated to
components was £3.8 million to £11.9 million (2023: £4.3 million
to £20.2 million).
Reporting threshold
An amount below which identified misstatements are
considered as being clearly trivial.
We agreed with the Audit Committee that we would report to
them all uncorrected audit differences in excess of £0.8 million
(2023: £1.2 million), which is set at 5% of planning materiality,
as well as differences below that threshold that, in our view,
warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the
quantitative measures of materiality discussed above and in
light of other relevant qualitative considerations in forming
our opinion.
Other information
The other information comprises the information included
in the annual report set out on pages 1 to 157, including the
Strategic Report, Governance Reports, the Directors’ Report
set out on pages 8 to 157, other than the financial statements
and our auditor’s report thereon. The directors are responsible
for the other information contained within the annual report.
Our opinion on the financial statements does not cover
the other information and, except to the extent otherwise
explicitly stated in this report, we do not express any form of
assurance conclusion thereon.
Our responsibility is to read the other information and, in
doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge
obtained in the course of the audit, or otherwise appears
to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are
required to determine whether this gives rise to a material
misstatement in the financial statements themselves. If, based
on the work we have performed, we conclude that there
is a material misstatement of the other information, we are
required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the
Companies Act 2006
In our opinion, the part of the directors’ remuneration report
to be audited has been properly prepared in accordance with
the Companies Act 2006.
In our opinion, based on the work undertaken in the course
of the audit:
• the information given in the strategic report and the
directors’ report for the financial year for which the financial
statements are prepared is consistent with the financial
statements; and
• the strategic report and the directors’ report have been
prepared in accordance with applicable legal requirements.
Matters on which we are required to report
byexception
In the light of the knowledge and understanding of the Group
and the Parent Company and its environment obtained
in the course of the audit, we have not identified material
misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters
in relation to which the Companies Act 2006 requires us to
report to you if, in our opinion:
• adequate accounting records have not been kept by the
Parent Company, or returns adequate for our audit have not
been received from branches not visited by us; or
• the Parent Company financial statements and the part of
the Directors’ Remuneration Report to be audited are not in
agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by
law are not made; or
• we have not received all the information and explanations
we require for our audit.
165Bellway p.l.c. Annual Report and Accounts 2024
Governance
Corporate Governance Statement
We have reviewed the directors’ statement in relation to
going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Group and
Parent Company’s compliance with the provisions of the UK
Corporate Governance Code specified for our review by the
UK Listing Rules.
Based on the work undertaken as part of our audit, we
have concluded that each of the following elements of the
Corporate Governance Statement is materially consistent with
the financial statements or our knowledge obtained during
the audit:
• Directors’ statement with regards to the appropriateness of
adopting the going concern basis of accounting and any
material uncertainties identified set out on page 81;
• Directors’ explanation as to its assessment of the company’s
prospects, the period this assessment covers and why the
period is appropriate set out on page 81;
• Director’s statement on whether it has a reasonable
expectation that the Group will be able to continue in
operation and meets its liabilities set out on page 156 to 157;
• Directors’ statement on fair, balanced and understandable
set out on page 157;
• Board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out on
pages 83 to 87;
• The section of the annual report that describes the review
of effectiveness of risk management and internal control
systems set out on pages 126 to 127; and
• The section describing the work of the audit committee set
out on page 118 to 129.
Responsibilities of directors
As explained more fully in the directors’ responsibilities
statement set out on pages 156 to 157, the directors are
responsible for the preparation of the financial statements and
for being satisfied that they give a true and fair view, and for
such internal control as the directors determine is necessary
to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are
responsible for assessing the Group and Parent Company’s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either
intend to liquidate the Group or the Parent Company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
financial statements.
Explanation as to what extent the audit was considered
capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-
compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect
irregularities, including fraud. The risk of not detecting a
material misstatement due to fraud is higher than the risk of
not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion. The extent to
which our procedures are capable of detecting irregularities,
including fraud is detailed below.
However, the primary responsibility for the prevention
and detection of fraud rests with both those charged with
governance of the company and management.
• We obtained an understanding of the legal and regulatory
frameworks that are applicable to the Group and
determined that the most significant are those that relate
to the reporting framework (UK adopted international
accounting standards, the Companies Act 2006 and UK
Corporate Governance Code), tax legislation, competition
law, employment law, health and safety legislation,
environmental regulations and the Self-Remediation
Terms with the Department for Levelling Up, Housing
and Communities in relation to historical fire safety issues
across the sector as well as equivalent regulations in Wales
and Scotland.
• We understood how the Group is complying with those
frameworks by making inquiries with management,
internal audit, those responsible for legal and compliance
procedures, the Group Chief Commercial Officer and
Company Secretary and, where necessary, the Group’s
external legal counsel. We corroborated our enquiries
through our review of Board minutes and review of Group
compliance with policies and processes. We obtained
and reviewed legal correspondence to support our
audit procedures and to assess management positions
reported in respect of legacy building safety improvements
and the market investigation by the Competition and
Markets Authority.
Independent Auditor’s Report to the Members of Bellway p.l.c. continued
Governance
166 Bellway p.l.c. Annual Report and Accounts 2024
• We assessed the susceptibility of the Group’s financial
statements to material misstatement, including how
fraud might occur by meeting with management from
various parts of the business to understand where it was
considered there was a susceptibility to fraud. We also
considered performance targets and their propensity
to influence efforts made by management to manage
earnings. We considered the programmes and controls that
the Group has established to address risks identified, or that
otherwise prevent, deter and detect fraud; and how senior
management monitors those programmes and controls.
Where the risk was considered to be higher, we performed
audit procedures to address each identified fraud risk.
These procedures included testing manual journals and
were designed to provide reasonable assurance that the
financial statements were free from fraud and error.
• Based on this understanding we designed our audit
procedures to identify non-compliance with such laws
and regulations. Our procedures involved journal entry
testing, with a focus on manual consolidation journals,
and journals indicating large or unusual transactions
based on our understanding of the business; enquiries
of Group management and internal audit; and focused
testing, as referred to in the key audit matters section above.
In addition, we completed procedures to conclude on the
compliance of the disclosures in the Annual Report and
Accounts with the requirements of the relevant accounting
standards, UK legislation and the UK Corporate Governance
Code 2018.
A further description of our responsibilities for the audit
of the financial statements is located on the Financial
Reporting Council’s website at https://www.frc.org.uk/
auditorsresponsibilities. This description forms part of our
auditor’s report.
Other matters we are required to address
• Following the recommendation from the Audit Committee,
we were appointed by the company on 11 December 2020
to audit the financial statements for the year ending 31 July
2021 and subsequent financial periods
• The period of total uninterrupted engagement including
previous renewals and reappointments is 4 years, covering
the years ending 31 July 2021 to 31 July 2024.
• The audit opinion is consistent with the additional report to
the Audit Committee.
Use of our report
This report is made solely to the company’s members,
as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so
that we might state to the company’s members those matters
we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we
do not accept or assume responsibility to anyone other than
the company and the company’s members as a body, for our
audit work, for this report, or for the opinions we have formed.
Mark Morritt (Senior statutory auditor)
For and on behalf of Ernst & Young LLP, Statutory Auditor
Newcastle upon Tyne
14 October 2024
167Bellway p.l.c. Annual Report and Accounts 2024
Governance
Disciplined
financial
management
with Bellway
We will continue with our disciplined approach
tolandinvestment and cost management.
Sales advisor at
our Crossways
Quarter site.
Our Barton Meadows
development in
Northhamptonshire.
168 Bellway p.l.c. Annual Report and Accounts 2024
Primary statements
Group Income Statement 170
Group Statement of Comprehensive Income 171
Statements of Changes in Equity 172
Balance Sheets 174
Parent Company Income Statement 174
Cash Flow Statements 175
Accounting Policies
Basis of preparation 176
Going concern 177
Effect of new standards and amendments
effectivefor the first time
177
Standards and amendments in issue
butnotyet effective
178
Notes to the Financial Statements
Performance for the year
1. Revenue 178
2. Net legacy building safety expense
andexceptional items
179
3. Cost of sales recognition 181
4. Operating profit 181
4a. Part-exchange properties 181
4b. Operating profit is stated after charging 181
4c. Auditor’s remuneration 182
5. Earnings per ordinary share 182
Taxation
6. Taxation 183
6a. Income tax recognised in the
income statement
183
6b. Factors affecting the income tax charge
forthe year
183
6c. Tax recognised in equity and other
comprehensive expense
184
6d. Deferred taxation 184
Working capital
7. Inventories 185
8. Trade and other receivables 186
9. Trade and other payables 187
10. Provisions and reimbursement assets 188
Investingactivities
11. Property, plant and equipment 189
12. Financial assets and equity accounted joint
arrangements, and investments in subsidiaries
190
13. Joint arrangements 191
14. Commitments 192
Financing
15. Net (debt)/cash 192
15a. Reconciliation of net cash flow
to net (debt)/cash
192
15b. Analysis of net (debt)/cash 192
16. Finance income and expenses 195
17. Financial instruments 193
Shareholder capital
18. Issued capital 196
19. Reserves 197
20. Dividends on equity shares 198
Directors and employees
21. Employee information 198
22. Retirement benefit assets 199
23. Share based payments 202
Contingencies, related parties andsubsidiaries
24. Contingent liabilities 204
25. Related party transactions 205
26. Group undertakings 206
27. Resident management companies 207
Other information
28. Alternative performance measures 217
29. Post balance sheet events 221
Five year record 222
Key to financial statement icons
Throughout the financial statements the below
icons are usedand they represent the following:
Accounting policy
The accounting policies set out within the
financial statements have, unless otherwise
stated, been applied consistently to all
periods presented in these consolidated
financial statements.
Accounting estimate
The Directors consider these areas to be
the major sources of estimation that have
been made in these financial statements.
Accounting judgement
The Directors consider these to be the
major judgements that could have
a significant effect on the financial
statements when applying the Group’s
accounting policies.
Accounts
169Bellway p.l.c. Annual Report and Accounts 2024
Accounts
Group Income Statement
for the year ended 31 July 2024
| 2024 | 2023 | ||
| Note | £m | £m | |
Revenue | 1 | ||
Cost of sales | 3 | ( | ( |
| Analysed as: | |||
Underlying cost of sales | ( | ( | |
Adjusting item: net legacy building safety expense | 2 | ( | ( |
Gross profit | |||
Other operating income | 4 | ||
Other operating expenses | 4 | ( | ( |
Administrative expenses | ( | ( | |
| Analysed as: | |||
Underlying administrative expenses | ( | ( | |
Adjusting item: aborted transaction costs | 2 | ( | |
Operating profit | 4 | ||
Finance income | 16 | ||
Finance expenses | 16 | ( | ( |
| Analysed as: | |||
Underlying finance expenses | ( | ( | |
Adjusting item: net legacy building safety expense | 2 | ( | ( |
Share of result of joint ventures | 13 | ( | ( |
Profit before taxation | |||
Income tax expense | 6 | ( | ( |
Profit for the year * | |||
Earnings per ordinary share – Basic | 5 | ||
Earnings per ordinary share – Diluted | 5 |
* All attributable to equity holders of the parent.
Adjusting items
| 2024 | 2023 | ||
| Note | £m | £m | |
| Gross profit | |||
Gross profit per the Group Income Statement | |||
Adjusting item: net legacy building safety expense | 2 | ||
Underlying gross profit | |||
| Operating profit | |||
Operating profit per the Group Income Statement | |||
Adjusting item: net legacy building safety expense | 2 | ||
Adjusting item: aborted transaction costs | 2 | ||
Underlying operating profit | |||
| Profit before taxation | |||
Profit before taxation per the Group Income Statement | |||
Adjusting item: net legacy building safety expense | 2 | ||
Adjusting item: aborted transaction costs | 2 | ||
Underlying profit before taxation | |||
| Profit for the year | |||
Profit for the year per the Group Income Statement | |||
Adjusting item: net legacy building safety expense | 2 | ||
Adjusting item: aborted transaction costs | 2 | ||
Adjusting item: income tax on exceptional items | 2 | ( | ( |
Underlying profit for the year |
Accounts
170 Bellway p.l.c. Annual Report and Accounts 2024
Group Statement of Comprehensive Income
for the year ended 31 July 2024
| 2024 | 2023 | ||
| Note | £m | £m | |
Profit for the year | |||
| Other comprehensive expense | |||
| Items that will not be recycled to the income statement: | |||
Remeasurement losses on defined benefit pension plans | 22 | ( | ( |
Income tax on other comprehensive expense | 6 | ||
Other comprehensive expense for the year, net of income tax | ( | ( | |
Total comprehensive income for the year* |
* All attributable to equity holders of the parent.
171Bellway p.l.c. Annual Report and Accounts 2024
Accounts
Statements of Changes in Equity
at 31 July 2024
| Issued | Share | Capital | Other | Retained | Total | ||
| capital | premium | redemption | reserves | earnings | equity | ||
| reserve | |||||||
Group | Note | £m | £m | £m | £m | £m | £m |
Balance at 1 August 2022 | |||||||
| Total comprehensive income | |||||||
| forthe year | |||||||
Profit for the year | |||||||
Other comprehensive expense * | ( | ( | |||||
| Total comprehensive income | |||||||
forthe year | |||||||
| Transactions with shareholders | |||||||
| recorded directly in equity: | |||||||
Dividends on equity shares | 20 | ( | ( | ||||
| Credit in relation to share options | |||||||
and tax thereon | 6, 23 | ||||||
Share buyback programme and cancellation of shares | 18,19 | ( | ( | ( | |||
Total contributions by and distributions to shareholders | ( | ( | ( | ||||
Balance at 31 July 2023 | |||||||
| Total comprehensive income | |||||||
| forthe year | |||||||
Profit for the year | |||||||
Other comprehensive expense * | ( | ( | |||||
| Total comprehensive income | |||||||
forthe year | |||||||
| Transactions with shareholders | |||||||
| recorded directly in equity: | |||||||
Dividends on equity shares | 20 | ( | ( | ||||
Shares issued | 18 | ||||||
| Credit in relation to share options | |||||||
and tax thereon | 6, 23 | ||||||
Share buyback programme and cancellation of shares | 18, 19 | ( | ( | ( | |||
Total contributions by and distributions to shareholders | ( | ( | ( | ||||
Balance at 31 July 2024 |
* An additional breakdown is provided in the Group Statement of Comprehensive Income.
Accounts
172 Bellway p.l.c. Annual Report and Accounts 2024
Company Note
Issued
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Other
reserves
£m
Retained
earnings
£m
Total
equity
£m
Balance at 1 August 2022 15.4 182.0 20.0 2.1 386.4 605.9
Total comprehensive income
forthe year
Profit for the year – – – – 171.5 171.5
Other comprehensive income – – – – – –
Total comprehensive income
forthe year – – – – 171.5 171.5
Transactions with shareholders
recorded directly in equity:
Dividends on equity shares 20 – – – – (171.7) (171.7)
Credit in relation to share options 23 – – – – 4.5 4.5
Share buyback programme and
cancellation of shares 18, 19 (0.4) – 0.4 – (100.5) (100.5)
Total contributions by and
distributions to shareholders (0.4) – 0.4 – (267.7) (267.7)
Balance at 31 July 2023 15.0 182.0 20.4 2.1 290.2 509.7
Total comprehensive income
forthe year
Profit for the year – – – – 234.0 234.0
Other comprehensive income – – – – – –
Total comprehensive income
forthe year – – – – 234.0 234.0
Transactions with shareholders
recorded directly in equity:
Dividends on equity shares 20 – – – – (131.7) (131.7)
Shares issued 18 – 1.2 – – – 1.2
Credit in relation to share options 23 – – – – 4.5 4.5
Share buyback programme and
cancellation of shares 18, 19 (0.2) – 0.2 – (0.4) (0.4)
Total contributions by and
distributions to shareholders (0.2) 1.2 0.2 – (127.6) (126.4)
Balance at 31 July 2024 14.8 183.2 20.6 2.1 396.6 617.3
173Bellway p.l.c. Annual Report and Accounts 2024
Accounts
Balance Sheets
at 31 July 2024
Parent Company Income Statement
In accordance with the provisions of section 408 of the Companies Act 2006, a separate Income Statement for the Company
has not been presented. The Company’s profit for the year was £234.0 million (2023 – £171.5 million).
| Restated* | |||||
| Group | Group | Company | Company | ||
| 2024 | 2023 | 2024 | 2023 | ||
| Note | £m | £m | £m | £m | |
| ASSETS | |||||
| Non-current assets | |||||
Property, plant and equipment | 11 | – | – | ||
Investments in subsidiaries | 12 | 52.3 | 48.0 | ||
Financial assets | 12 | – | – | ||
Equity accounted joint arrangements | 12 | – | – | ||
Deferred tax assets | 6 | – | – | ||
Retirement benefit assets | 22 | – | – | ||
Trade and other receivables | 8 | 441.1 | 276.5 | ||
493.4 | 324.5 | ||||
| Current assets | |||||
Inventories | 7 | – | – | ||
Trade and other receivables | 8 | 80.8 | 167.3 | ||
Corporation tax receivable | – | – | |||
Cash and cash equivalents | 15 | 55.8 | 52.9 | ||
136.6 | 220.2 | ||||
Total assets | 630.0 | 544.7 | |||
| LIABILITIES | |||||
| Non-current liabilities | |||||
Interest-bearing loans and borrowings | 15 | – | – | ||
Trade and other payables | 9 | – | – | ||
Deferred tax liabilities | 6 | – | – | ||
Provisions | 10 | – | – | ||
– | – | ||||
| Current liabilities | |||||
Corporation tax payable | 1.8 | 0.4 | |||
Trade and other payables | 9 | 10.9 | 34.6 | ||
Provisions | 10 | – | – | ||
12.7 | 35.0 | ||||
Total liabilities | 12.7 | 35.0 | |||
Net assets | 617.3 | 509.7 | |||
| EQUITY | |||||
Issued capital | 18 | 14.8 | 15.0 | ||
Share premium | 19 | 183.2 | 182.0 | ||
Capital redemption reserve | 19 | 20.6 | 20.4 | ||
Other reserves | 2.1 | 2.1 | |||
Retained earnings | 396.6 | 290.2 | |||
Total equity | 617.3 | 509.7 |
Registered number 1372603
* See basis of preparation for details of the restatement.
Accounts
174 Bellway p.l.c. Annual Report and Accounts 2024
Cash Flow Statements
for the year ended 31 July 2024
| Restated* | |||||
| Group | Group | Company | Company | ||
| 2024 | 2023 | 2024 | 2023 | ||
| Note | £m | £m | £m | £m | |
| Cash flows from operating activities | |||||
Profit for the year | 234.0 | 171.5 | |||
Depreciation charge | 11 | – | – | ||
Finance income | 16 | ( | ( | (2.9) | (1.9) |
Finance expenses | 16 | – | – | ||
Share-based payment expense | 23 | 0.2 | – | ||
Share of post tax result of joint ventures | 13 | – | – | ||
Income tax expense | 6 | 1.5 | 0.4 | ||
Increase in inventories | ( | ( | – | – | |
Decrease/(increase) in trade and other receivables | (243.5) | (171.2) | |||
(Decrease)/increase in trade and other payables | ( | ( | 10.8 | – | |
(Decrease)/increase in provisions | ( | – | – | ||
Cash (utilised in)/from operations | ( | 0.1 | (1.2) | ||
Interest paid | ( | ( | – | – | |
Income tax paid | ( | ( | – | – | |
Net cash (outflow)/inflow from operating activities | ( | 0.1 | (1.2) | ||
| Cash flows from investing activities | |||||
Acquisition of property, plant and equipment | ( | ( | – | – | |
Proceeds from sale of property, plant and equipment | – | – | |||
Increase in loans to joint ventures | 12 | ( | ( | – | – |
Dividends from joint ventures | 12 | – | – | ||
Interest received | 2.8 | 1.3 | |||
Net amounts (outflow)/inflow from investing activities | ( | ( | 2.8 | 1.3 | |
| Cash flows from financing activities | |||||
Amounts received from subsidiary undertakings | 165.4 | 237.7 | |||
Payment of lease liabilities | 17 | ( | ( | – | – |
| Proceeds from the issue of share capital on exercise | |||||
ofshareoptions | 1.2 | – | |||
Share buyback programme | 18 | ( | ( | (34.9) | (66.0) |
Dividends paid | 20 | ( | ( | (131.7) | (171.7) |
Net cash outflow from financing activities | ( | ( | – | – | |
Net (decrease)/increase in cash and cash equivalents | ( | ( | 2.9 | 0.1 | |
Cash and cash equivalents at beginning of year | 52.9 | 52.8 | |||
Cash and cash equivalents at end of year | 15 | 55.8 | 52.9 |
* See basis of preparation for details of the restatement.
175Bellway p.l.c. Annual Report and Accounts 2024
Accounts
Accounting Policies
Accounts
176 Bellway p.l.c. Annual Report and Accounts 2024
177Bellway p.l.c. Annual Report and Accounts 2024
Accounts
Notes to the Financial Statements
Basis of preparation continued
Performance for the year
Accounts
178 Bellway p.l.c. Annual Report and Accounts 2024
1. Revenue continued
Housing completions | Revenue | |||
| 2024 | 2023 | 2024 | 2023 | |
| Number | Number | £m | £m | |
Housing – private | 5,758 | 8,166 | 2,002.3 | 2,931.3 |
Housing – social | 1,896 | 2,779 | 354.4 | 465.0 |
Total housing | 7,654 | 10,945 | 2,356.7 | 3,396.3 |
Non-housing revenue | – | – | 23.5 | 10.3 |
Total | 7,654 | 10,945 | 2,380.2 | 3,406.6 |
| 2024 | |||||
| SRT and | Structural | Total net | Aborted | Total | |
| associated | defects | legacy building | transaction | adjusting | |
| review | safety expense | costs | items | ||
| £m | £m | £m | £m | £m | |
Provisions (note 10) | 6.1 | 14.1 | 20.2 | – | 20.2 |
Reimbursement assets (note 10) | (0.3) | – | (0.3) | – | (0.3) |
Net cost of sales | 5.8 | 14.1 | 19.9 | – | 19.9 |
Administrative expenses | – | – | – | 5.4 | 5.4 |
Finance expenses (notes 10, 16) | 15.9 | 1.2 | 17.1 | – | 17.1 |
| Total net legacy building safety expense | |||||
and exceptional items | 21.7 | 15.3 | 37.0 | 5.4 | 42.4 |
| 2023 | |||||
| SRT and | Structural | Total net | Aborted | Total | |
| associated | defects | legacy building | transaction | adjusting | |
| review | safety expense | costs | items | ||
| £m | £m | £m | £m | £m | |
Provisions | 58.1 | 30.5 | 88.6 | – | 88.6 |
Reimbursement assets | (50.0) | – | (50.0) | – | (50.0) |
Net cost of sales | 8.1 | 30.5 | 38.6 | – | 38.6 |
Finance expenses (note 16) | 11.0 | – | 11.0 | – | 11.0 |
| Total net legacy building safety expense | |||||
and exceptional items | 19.1 | 30.5 | 49.6 | – | 49.6 |
179Bellway p.l.c. Annual Report and Accounts 2024
Accounts
2. Net legacy building safety expense and exceptional items continued
Notes to the Financial Statements continued
Accounts
180 Bellway p.l.c. Annual Report and Accounts 2024
2. Net legacy building safety expense and exceptional items continued
| 2024 | 2023 | |
| £m | £m | |
Employee costs (including Directors) (note 21) | 198.2 | 223.2 |
Depreciation of owned property, plant and equipment (note 11) | 2.3 | 2.7 |
Depreciation of right-of-use assets (note 11) | 2.8 | 3.3 |
Expenses related to short-term and low value leases | 14.9 | 17.6 |
181Bellway p.l.c. Annual Report and Accounts 2024
Accounts
4. Operating profit continued
| 2024 | 2023 | |
| £000 | £000 | |
Fee payable for the audit of the Company and consolidated financial statements | 89 | 84 |
| Amounts receivable by the auditor and its associates in respect of: | ||
Fees payable for the audit of the Company’s subsidiaries | 455 | 408 |
Fees payable for the pension scheme audit | 21 | 20 |
Total audit fees | 565 | 512 |
Non-audit related fees | 470 | – |
Total fees related to the Company and its subsidiaries | 1,035 | 512 |
| 2024 | 2023 | |
| £000 | £000 | |
Fees payable for the audit of the Group’s joint ventures pursuant to legislation | 46 | 42 |
Total fees related to joint ventures | 46 | 42 |
5. Earnings per ordinary share
Basic earnings per ordinary share is calculated by dividing profit for the year by the weighted average number of ordinary
shares in issue during the year (excluding the weighted average number of ordinary shares held by the Company or Trust which
are treated as cancelled).
Diluted earnings per ordinary share uses the same profit for the year figure as the basic calculation. The weighted average
number of shares has been adjusted to reflect the dilutive effect of outstanding share options allocated under employee share
schemes where the market value exceeds the option price. Diluted earnings per ordinary share is calculated by dividing profit
for the year by the diluted weighted average number of ordinary shares.
Reconciliations of the profit for the year and weighted average number of shares used in the calculations are outlined below:
| Profit for | Weighted | Earnings | Profit for | Weighted | Earnings per | |
| the year | average | per share | the year | average | share | |
| number of | number of | |||||
| ordinary | ordinary | |||||
| shares | shares | |||||
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
| £m | Number | p | £m | Number | p | |
For basic earnings per ordinary share | 130.5 | 118,830,821 | 109.8 | 365.0 | 122,593,350 | 297.7 |
Dilutive effect of options and awards | 846,522 | (0.8) | 600,864 | (1.4) | ||
For diluted earnings per ordinary share | 130.5 | 119,677,343 | 109.0 | 365.0 | 123,194,214 | 296.3 |
Underlying basic and underlying diluted earnings per share exclude the effect of adjusting items and any associated net tax
amounts. Reconciliations of these are outlined below:
| Underlying | Weighted | Underlying | Underlying | Weighted | Underlying | |
| profit for | average | earnings per | profit for | average | earnings per | |
| the year | number of | share | the year | number of | share | |
| ordinary | ordinary | |||||
| shares | shares | |||||
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
| £m | Number | p | £m | Number | p | |
| For basic underlying earnings per | ||||||
ordinary share | 160.6 | 118,830,821 | 135.2 | 402.2 | 122,593,350 | 328.1 |
Dilutive effect of options and awards | 846,522 | (1.0) | 600,864 | (1.6) | ||
| For diluted underlying earnings per | ||||||
ordinary share | 160.6 | 119,677,343 | 134.2 | 402.2 | 123,194,214 | 326.5 |
Notes to the Financial Statements continued
Accounts
182 Bellway p.l.c. Annual Report and Accounts 2024
Taxation
| 2024 | 2023 | |
| £m | £m | |
| Current tax expense/(income): | ||
UK corporation tax | 49.1 | 101.8 |
Residential property developer tax | 6.9 | 18.6 |
Adjustments in respect of prior years | (0.3) | 0.5 |
55.7 | 120.9 | |
| Deferred tax income: | ||
Origination and reversal of temporary differences | (2.5) | (1.6) |
Adjustments in respect of prior years | – | (1.3) |
(2.5) | (2.9) | |
Total income tax expense in income statement | 53.2 | 118.0 |
| 2024 | 2024 | 2023 | 2023 | |
| £m | £m | £m | £m | |
| Reconciliation of effective tax rate: | ||||
Profit before taxation | 183.7 | 483.0 | ||
Tax calculated at UK income tax rate | 29.0 | 53.3 | 25.0 | 120.8 |
Non-taxable income and enhanced deductions | 0.1 | 0.2 | (0.4) | (2.0) |
Adjustments in respect of prior years – current tax | (0.1) | (0.3) | 0.1 | 0.5 |
– deferred tax | – | – | (0.3) | (1.3) |
Effective tax rate and tax expense for the year | 29.0 | 53.2 | 24.4 | 118.0 |
183Bellway p.l.c. Annual Report and Accounts 2024
Accounts
6. Taxation continued
| 2024 | 2023 | |
| £m | £m | |
| Deferred tax recognised directly in equity and other comprehensive expense: | ||
Credit relating to remeasurements on the defined benefit pension scheme | 0.5 | 1.4 |
Credit relating to equity-settled transactions | 0.8 | – |
| Capital | Retirement | Share-based | Inventory | Unutilised tax | Total | |
| allowances | benefit assets | payments | losses | |||
| Group | £m | £m | £m | £m | £m | £m |
At 1 August 2022 | (1.6) | (2.1) | 0.1 | (5.2) | – | (8.8) |
Income statement credit | 0.2 | – | 0.2 | 1.1 | 1.4 | 2.9 |
Credit to other comprehensive expense | – | 1.4 | – | – | – | 1.4 |
At 31 July 2023 | (1.4) | (0.7) | 0.3 | (4.1) | 1.4 | (4.5) |
Income statement (expense)/credit | (0.2) | – | 0.7 | 0.7 | 1.3 | 2.5 |
Credit to other comprehensive expense | – | 0.5 | – | – | – | 0.5 |
Credit to equity | – | – | 0.8 | – | – | 0.8 |
At 31 July 2024 | (1.6) | (0.2) | 1.8 | (3.4) | 2.7 | (0.7) |
Notes to the Financial Statements continued
Accounts
184 Bellway p.l.c. Annual Report and Accounts 2024
Working capital
185Bellway p.l.c. Annual Report and Accounts 2024
Accounts
7. Inventories continued
| 2024 | 2023 | |
| Group | £m | £m |
Land | 2,431.4 | 2,578.8 |
Work-in-progress | 2,123.9 | 1,861.6 |
Showhomes | 145.0 | 117.2 |
Part-exchange properties | 14.5 | 18.0 |
4,714.8 | 4,575.6 |
Inventories of £1,942.9 million were expensed in the year (2023 – £2,662.0 million).
In the ordinary course of business, inventories have been written down by a net £8.2 million in the year (2023 – £18.4 million).
Land with a carrying value of £162.5 million (2023 – £212.0 million) was used as security for land payables (note 9).
Land includes £1,861.4 million (2023 – £1,913.3 million) which is owned or unconditionally contracted by the Group and where
there is an implementable detailed planning permission.
The anticipated costs relating to the adoption of the Future Homes Standard in 2025, and the interim standard in 2023, are
included within the carrying value of inventories as at 31 July 2024 and 31 July 2023 where appropriate.
The Directors consider all inventories to be essentially current in nature although the Group’s operational cycle is such that
a proportion of inventories will not be realised within 12 months. It is not possible to determine with accuracy when specific
inventory will be realised as this is subject to a number of factors including consumer demand and planning permission delays.
The Company has no inventory.
| Restated* | ||||
| Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| Non-current receivables | £m | £m | £m | £m |
Amounts due from subsidiary undertakings | – | – | 441.1 | 276.5 |
– | – | 441.1 | 276.5 |
| Restated* | ||||
| Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| Current receivables | £m | £m | £m | £m |
Trade receivables | 27.0 | 34.6 | – | – |
Other receivables | 35.0 | 36.5 | – | – |
Amounts due from subsidiary undertakings | – | – | 80.0 | 166.7 |
Prepayments and accrued income | 14.8 | 17.2 | 0.8 | 0.6 |
76.8 | 88.3 | 80.8 | 167.3 |
Notes to the Financial Statements continued
Accounts
186 Bellway p.l.c. Annual Report and Accounts 2024
| Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| Non-current liabilities | £m | £m | £m | £m |
Land payables | 82.6 | 95.4 | – | – |
Lease liabilities | 11.0 | 11.9 | – | – |
93.6 | 107.3 | – | – |
| Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| Current liabilities | £m | £m | £m | £m |
Trade payables | 285.0 | 306.2 | – | – |
Land payables | 142.7 | 273.4 | – | – |
Social security and other taxes | 5.6 | 7.7 | 0.2 | – |
Other payables | 5.3 | 5.0 | 0.3 | 0.1 |
Lease liabilities | 3.1 | 3.1 | – | – |
Accruals | 194.6 | 147.0 | 10.4 | – |
Payments on account | 156.6 | 123.9 | – | – |
Share buyback obligation | – | 34.5 | – | 34.5 |
792.9 | 900.8 | 10.9 | 34.6 |
187Bellway p.l.c. Annual Report and Accounts 2024
Accounts
9. Trade and other payables continued
Notes to the Financial Statements continued
Accounts
188 Bellway p.l.c. Annual Report and Accounts 2024
10. Provisions and reimbursement assets continued
SRT and associated review | Structural defects | Total legacy building safety improvements | |||||||
| Reimbursement | Reimbursement | Reimbursement | |||||||
| Provision | assets | Total | Provision | assets | Total | Provision | assets | Total | |
| £m | £m | £m | £m | £m | £m | £m | £m | £m | |
At 1 August 2023 | (477.7) | – | (477.7) | (30.5) | – | (30.5) | (508.2) | – | (508.2) |
| Adjusting item – | |||||||||
cost of sales (note 2) | (6.1) | 0.3 | (5.8) | (14.1) | – | (14.1) | (20.2) | 0.3 | (19.9) |
| Analysed as: | |||||||||
Additions | (32.7) | 0.3 | (32.4) | (13.8) | – | (13.8) | (46.5) | 0.3 | (46.2) |
Released | 33.3 | – | 33.3 | – | – | – | 33.3 | – | 33.3 |
Change in discount rate | (6.7) | – | (6.7) | (0.3) | – | (0.3) | (7.0) | – | (7.0) |
Utilised/(received) | 36.1 | (0.2) | 35.9 | 0.2 | – | 0.2 | 36.3 | (0.2) | 36.1 |
| Unwinding of discount | |||||||||
(notes 2, 16) | (15.9) | – | (15.9) | (1.2) | – | (1.2) | (17.1) | – | (17.1) |
At 31 July 2024 | (463.6) | 0.1 | (463.5) | (45.6) | – | (45.6) | (509.2) | 0.1 | (509.1) |
| SRT and | Structural | Total legacy | |
| associated | defects | building safety | |
| review | improvements | ||
| £m | £m | £m | |
Current | (132.5) | (0.2) | (132.7) |
Non-current | (331.1) | (45.4) | (376.5) |
Total | (463.6) | (45.6) | (509.2) |
Investing activities
189Bellway p.l.c. Annual Report and Accounts 2024
Accounts
11. Property, plant and equipment continued
Owned | Right-of-use assets | ||||
| Land and | Plant, | Land and | Plant, | Total | |
| property | fixtures | property | fixtures | ||
| and fittings | and fittings | ||||
| Group | £m | £m | £m | £m | £m |
| Cost | |||||
At 1 August 2022 | 16.9 | 16.0 | 20.2 | 5.0 | 58.1 |
Additions | 1.3 | 1.4 | 0.4 | 0.6 | 3.7 |
Disposals | – | (1.3) | – | (1.5) | (2.8) |
At 1 August 2023 | 18.2 | 16.1 | 20.6 | 4.1 | 59.0 |
Additions | 0.1 | 1.3 | 2.3 | – | 3.7 |
Disposals | – | (1.5) | (0.5) | (1.0) | (3.0) |
At 31 July 2024 | 18.3 | 15.9 | 22.4 | 3.1 | 59.7 |
| Depreciation | |||||
At 1 August 2022 | 3.3 | 10.7 | 7.5 | 2.4 | 23.9 |
Charge for year | 0.4 | 2.3 | 2.3 | 1.0 | 6.0 |
On disposals | – | (1.2) | – | (1.4) | (2.6) |
At 1 August 2023 | 3.7 | 11.8 | 9.8 | 2.0 | 27.3 |
Charge for year | 0.5 | 1.8 | 2.0 | 0.8 | 5.1 |
On disposals | – | (1.5) | (0.5) | (0.9) | (2.9) |
At 31 July 2024 | 4.2 | 12.1 | 11.3 | 1.9 | 29.5 |
| Net book value | |||||
At 31 July 2024 | 14.1 | 3.8 | 11.1 | 1.2 | 30.2 |
At 31 July 2023 | 14.5 | 4.3 | 10.8 | 2.1 | 31.7 |
The Company has no property, plant and equipment.
| Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
| Subsidiary undertakings | ||||
Interest in subsidiary undertakings’ shares at cost | – | – | 52.3 | 48.0 |
| Financial assets and equity accounted joint arrangements | ||||
Financial assets – loan to joint ventures | 47.7 | 38.6 | – | – |
Interest in joint ventures – equity | 9.8 | 4.9 | – | – |
57.5 | 43.5 | – | – | |
57.5 | 43.5 | 52.3 | 48.0 |
Notes to the Financial Statements continued
Accounts
190 Bellway p.l.c. Annual Report and Accounts 2024
12. Financial assets and equity accounted joint arrangements, and investments in subsidiaries continued
| Group | Group | |
| 2024 | 2023 | |
| £m | £m | |
At the start of the year | 43.5 | 30.2 |
Increase in loans to joint ventures | 18.3 | 17.7 |
Dividends received from equity accounted joint ventures | (2.0) | (3.0) |
Share of result | (2.3) | (1.4) |
At the end of the year | 57.5 | 43.5 |
| Group | Group | |
| 2024 | 2023 | |
| £m | £m | |
Current assets | 74.0 | 65.5 |
Current liabilities | (63.5) | (50.2) |
Non-current liabilities | (9.9) | (10.4) |
Share of net assets of joint ventures | 0.6 | 4.9 |
Joint venture losses recognised against loan to joint ventures | 9.2 | – |
Interest in joint ventures – equity | 9.8 | 4.9 |
Revenue | 10.7 | 10.6 |
Costs | (8.2) | (9.5) |
Operating profit | 2.5 | 1.1 |
Interest | (4.8) | (2.5) |
Share of result of joint ventures | (2.3) | (1.4) |
Share of dividends paid to joint venture partners | (2.0) | (3.0) |
191Bellway p.l.c. Annual Report and Accounts 2024
Accounts
| 2024 | 2023 | |
| Group | £m | £m |
| Capital commitments | ||
Contracted not provided | 0.4 | – |
Authorised not contracted | 0.1 | – |
Financing
| 2024 | 2023 | |
| Group | £m | £m |
Decrease in net cash and cash equivalents | (242.5) | (13.3) |
Decrease in net cash from cash flows | (242.5) | (13.3) |
Net cash at 1 August | 232.0 | 245.3 |
Net (debt)/cash at 31 July | (10.5) | 232.0 |
| 2024 | 2023 | |
| Company | £m | £m |
Increase in net cash and cash equivalents | 2.9 | 0.1 |
Increase in net cash from cash flows | 2.9 | 0.1 |
Net cash at 1 August | 52.9 | 52.8 |
Net cash at 31 July | 55.8 | 52.9 |
| At 1 August | Cash | At 31 July | |
| 2023 | flows | 2024 | |
| Group | £m | £m | £m |
Cash and cash equivalents | 362.0 | (242.5) | 119.5 |
Fixed rate sterling USPP notes | (130.0) | – | (130.0) |
Net (debt)/cash | 232.0 | (242.5) | (10.5) |
| At 1 August | Cash | At 31 July | |
| 2023 | flows | 2024 | |
| Company | £m | £m | £m |
Cash and cash equivalents | 52.9 | 2.9 | 55.8 |
Net cash | 52.9 | 2.9 | 55.8 |
Notes to the Financial Statements continued
Accounts
192 Bellway p.l.c. Annual Report and Accounts 2024
| 2024 | 2023 | |
| £m | £m | |
Interest receivable on short-term bank deposits | 3.8 | 7.2 |
Net interest on defined benefit asset (note 22) | – | 0.3 |
Other interest receivable | 5.7 | 2.4 |
Finance income | 9.5 | 9.9 |
| 2024 | 2023 | |
| £m | £m | |
Interest payable on bank loans | 3.8 | 2.8 |
Interest payable on fixed rate sterling USPP notes | 3.4 | 3.4 |
Interest on deferred term land payables | 11.1 | 13.1 |
Unwinding of the discount on the legacy building safety improvements provision (notes 2, 10) | 17.1 | 11.0 |
Interest payable on leases | 0.4 | 0.5 |
Other interest payable | 0.5 | – |
Finance expenses | 36.3 | 30.8 |
| Balance at | Total contracted | Within 1 year or | 1–2 | 2–5 | More than | |
| 31 July | cash payment | on demand | years | years | 5 years | |
| £m | £m | £m | £m | £m | £m | |
At 31 July 2024 | 225.3 | 234.9 | 145.0 | 62.2 | 26.8 | 0.9 |
At 31 July 2023 | 368.8 | 381.1 | 276.0 | 61.6 | 26.0 | 17.5 |
193Bellway p.l.c. Annual Report and Accounts 2024
Accounts
17. Financial instruments continued
The maturity profile of the total contracted payments in respect of financial liabilities (excluding amounts due on land creditors
shown separately above) is as follows:
| Total | ||||||
| Balance at | contracted | Within 1 year or | 1–2 | 2–5 | More than | |
| 31 July | cash payment | on demand | years | years | 5 years | |
| £m | £m | £m | £m | £m | £m | |
| Trade and other payables | ||||||
| (excluding lease liabilities) | 484.9 | 484.9 | 484.9 | – | – | – |
Fixed rate sterling USPP notes | 130.0 | 146.3 | 3.4 | 3.4 | 87.3 | 52.2 |
Lease liabilities | 14.1 | 15.2 | 3.6 | 3.2 | 4.9 | 3.5 |
At 31 July 2024 | 629.0 | 646.4 | 491.9 | 6.6 | 92.2 | 55.7 |
| Trade and other payables | ||||||
(excluding lease liabilities) | 458.2 | 458.2 | 458.2 | – | – | – |
Fixed rate sterling USPP notes | 130.0 | 149.8 | 3.4 | 3.4 | 89.4 | 53.6 |
Lease liabilities | 15.0 | 17.5 | 3.6 | 3.6 | 6.5 | 3.8 |
Share buyback obligation | 34.5 | 34.5 | 34.5 | – | – | – |
At 31 July 2023 | 637.7 | 660.0 | 499.7 | 7.0 | 95.9 | 57.4 |
The imputed interest rate on land payables reflects market interest rates available to the Group on floating rate bank loans at the
time of acquiring the land.
At the year end, the Group had £400.0 million (2023 – £400.0 million) of undrawn bank facilities available.
Cash and cash equivalents
This comprises cash held by the Group and short-term bank deposits with a maturity date of less than one month.
The amount of cash and cash equivalents for the years ended 31 July 2024 and 31 July 2023 for both the Group and the
Company are shown in note 15.
The average interest rate earned on the cash and cash equivalents balance as at 31 July 2024, excluding joint ventures, was
4.61% (2023 – 4.16%).
Financial assets and liabilities by category
The carrying values and fair values of the financial assets and liabilities of the Group and the Company are as follows:
| Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Loans and receivables | 109.7 | 109.7 | 521.1 | 443.2 |
Cash and cash equivalents | 119.5 | 362.0 | 55.8 | 52.9 |
Financial liabilities at amortised cost | (854.3) | (1,006.5) | (10.7) | (34.6) |
(625.1) | (534.8) | 566.2 | 461.5 |
Notes to the Financial Statements continued
Accounts
194 Bellway p.l.c. Annual Report and Accounts 2024
17. Financial instruments continued
Reconciliation of liabilities arising from financing activities
| Net | Share buyback | ||||||
| At 1 August | cash flows | New leases | programme | Disposals | Interest | At 31 July | |
| Group | £m | £m | £m | £m | £m | £m | £m |
Fixed rate sterling USPP notes | 130.0 | (3.4) | – | – | – | 3.4 | 130.0 |
Lease liabilities | 15.0 | (3.6) | 2.3 | – | – | 0.4 | 14.1 |
Share buyback obligation | 34.5 | (34.9) | – | 0.4 | – | – | – |
At 31 July 2024 | 179.5 | (41.9) | 2.3 | 0.4 | – | 3.8 | 144.1 |
Fixed rate sterling USPP notes | 130.0 | (3.4) | – | – | – | 3.4 | 130.0 |
Lease liabilities | 17.2 | (3.5) | 1.0 | – | (0.2) | 0.5 | 15.0 |
Share buyback obligation | – | (66.0) | – | 100.5 | – | – | 34.5 |
At 31 July 2023 | 147.2 | (72.9) | 1.0 | 100.5 | (0.2) | 3.9 | 179.5 |
| Net | Share buyback | ||||||
| At 1 August | cash flows | New leases | programme | Disposals | Interest | At 31 July | |
| Company | £m | £m | £m | £m | £m | £m | £m |
Share buyback obligation | 34.5 | (34.9) | – | 0.4 | – | – | – |
At 31 July 2024 | 34.5 | (34.9) | – | 0.4 | – | – | – |
Share buyback obligation | – | (66.0) | – | 100.5 | – | – | 34.5 |
At 31 July 2023 | – | (66.0) | – | 100.5 | – | – | 34.5 |
Cash flows relating to interest are included within interest paid in cash flows from operating activities, within the cash flow statement.
Bank facilities
The Group had bank facilities of £400.0 million as at 31 July 2024 (2023 – £400.0 million) which, as at the year end, were due to
expire during the course of the following financial years:
| Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
By 31 July 2025 | – | 50.0 | – | – |
By 31 July 2026 | 150.0 | 100.0 | – | – |
By 31 July 2027 | 50.0 | 100.0 | – | – |
By 31 July 2028 | 150.0 | 150.0 | – | – |
By 31 July 2029 | 50.0 | – | – | – |
400.0 | 400.0 | – | – |
Post year end the Group extended the maturity of some of its bank facilities by a year. In the above table, the £50.0 million that
was due to expire by 31 July 2027 is now due to expire by 31 July 2028, and the £150.0 million that was due to expire by 31 July
2026 is now due to expire by 31 July 2027.
195Bellway p.l.c. Annual Report and Accounts 2024
Accounts
17. Financial instruments continued
Fixed rate sterling USPP notes
During 2021, the Group entered a contractual arrangement to issue fixed rate sterling USPP notes for a total amount of £130.0 million,
as part of its ordinary course of business financing arrangements. This USPP debt has a weighted average fixed coupon of 2.7%,
is fully drawn down at year end and expires during the course of the following financial years:
| Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
By 31 July 2028 | 80.0 | 80.0 | – | – |
By 31 July 2031 | 50.0 | 50.0 | – | – |
130.0 | 130.0 | – | – |
| Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Equity | 3,465.4 | 3,461.6 | 617.3 | 509.7 |
Net debt (note 15) | 10.5 | – | – | – |
Capital employed | 3,475.9 | 3,461.6 | 617.3 | 509.7 |
Risks
Details of the risks relating to financial instruments are set out in the Risk Management section on page 80.
Company
Relating to subsidiaries
The Company is a guarantor to bank and USPP indebtedness of other companies within the Group. Based on the liquidity
and expected cash generation of these other companies, the fair value of these guarantees, as at 31 July 2024 is immaterial
(2023 – immaterial).
Relating to joint arrangements
The Company has guaranteed the overdrafts of joint arrangements up to a maximum of £0.3 million (2023 – £0.3 million).
These overdrafts were cancelled post year end with the guarantees released and there were no related cash outflows, so the
fair value of these guarantees, as at 31 July 2024 were considered immaterial (2023 – immaterial).
Shareholder capital
Notes to the Financial Statements continued
Accounts
196 Bellway p.l.c. Annual Report and Accounts 2024
18. Issued capital continued
| 2024 | 2024 | 2023 | 2023 | |
| Number | Number | |||
| 000 | £m | 000 | £m | |
| Allotted, called up and fully paid 12.5p ordinary shares | ||||
At start of year | 120,559 | 15.0 | 123,486 | 15.4 |
Issued on exercise of options | 52 | – | 2 | – |
Buyback and cancellation of shares | (1,631) | (0.2) | (2,929) | (0.4) |
At end of year | 118,980 | 14.8 | 120,559 | 15.0 |
| 2024 | 2023 | |
| Number | Number | |
At start of year | 327,202 | 331,115 |
Transferred to employees or Directors | (1,088) | (3,913) |
At end of year | 326,114 | 327,202 |
| 2024 | 2023 | |
| £m | £m | |
Cost of shares held in the Trust | 8.8 | 8.8 |
Market value of shares held in the Trust | 9.3 | 7.3 |
197Bellway p.l.c. Annual Report and Accounts 2024
Accounts
19. Reserves continued
| 2024 | 2023 | |
| £m | £m | |
At start of year | 20.4 | 20.0 |
Amounts transferred in respect of own shares purchased and cancelled during the year | 0.2 | 0.4 |
At end of year | 20.6 | 20.4 |
| 2024 | 2023 | |
| £m | £m | |
| Amounts recognised as distributions to equity holders in the year: | ||
Final dividend for the year ended 31 July 2023 of 95.0p per share (2022 – 95.0p) | 112.7 | 117.0 |
Interim dividend for the year ended 31 July 2024 of 16.0p per share (2023 – 45.0p) | 19.0 | 54.7 |
131.7 | 171.7 | |
Proposed final dividend for the year ended 31 July 2024 of | 114.5 |
Directors and employees
21. Employee information
Employment costs, including directors, comprised:
Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Wages and salaries | 168.7 | 191.5 | 4.6 | 2.5 |
Social security | 16.2 | 18.4 | 0.4 | 0.5 |
Pension costs (note 22) | 8.8 | 8.8 | 0.2 | 0.2 |
Share-based payments (note 23) | 4.5 | 4.5 | 1.8 | 1.3 |
198.2 | 223.2 | 7.0 | 4.5 |
The average number of persons employed, including Directors, during the year was:
Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| Number | Number | Number | Number | |
Administrative | 1,064 | 1,170 | 11 | 7 |
| Production and others employed in housebuilding | ||||
and associated trading activities | 1,709 | 1,960 | – | – |
2,773 | 3,130 | 11 | 7 |
On 10 June 2024, the employment contracts of 26 employees of a subsidiary were transferred to the Company.
The majority of the costs of the Company’s employees are charged to the other Group companies.
The emoluments of the Executive Directors are disclosed in the Report of the Board on Directors’ Remuneration on pages 130
to 152.
Notes to the Financial Statements continued
Accounts
198 Bellway p.l.c. Annual Report and Accounts 2024
21. Employee information continued
Key management personnel remuneration, including directors, comprised:
| 2024 | 2023 | |
| £m | £m | |
Salaries and fees (including pension compensation) | 4.2 | 3.3 |
Social security | 1.0 | 0.6 |
Taxable benefits | 0.2 | 0.2 |
Annual cash bonus | 3.3 | 0.6 |
Pension costs | 0.2 | 0.1 |
Share-based payments | 2.4 | 1.7 |
11.3 | 6.5 |
Key management personnel, as disclosed under IAS 24 ‘Related party disclosures’, comprises the Directors and other senior
operational management.
199Bellway p.l.c. Annual Report and Accounts 2024
Accounts
22. Retirement benefit assets continued
Defined benefit obligation | Fair value of Scheme assets | Net defined benefit asset | ||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | £m | £m | |
Balance at 1 August | (41.5) | (48.9) | 44.0 | 56.0 | 2.5 | 7.1 |
| Included in the income statement | ||||||
Interest (expense)/income | (2.1) | (1.7) | 2.1 | 2.0 | – | 0.3 |
(2.1) | (1.7) | 2.1 | 2.0 | – | 0.3 | |
| Included in other comprehensive | ||||||
| (expense)/income | ||||||
| Remeasurement gain arising from: | ||||||
– Change in demographic and financial assumptions | (0.4) | 8.8 | – | – | (0.4) | 8.8 |
– Experience adjustments | (0.8) | (2.1) | – | – | (0.8) | (2.1) |
| Return on plan assets excluding | ||||||
interest income | – | – | (0.4) | (11.6) | (0.4) | (11.6) |
(1.2) | 6.7 | (0.4) | (11.6) | (1.6) | (4.9) | |
Other Benefits paid | 2.5 | 2.4 | (2.5) | (2.4) | – | – |
2.5 | 2.4 | (2.5) | (2.4) | – | – | |
Balance at 31 July | (42.3) | (41.5) | 43.2 | 44.0 | 0.9 | 2.5 |
Notes to the Financial Statements continued
Accounts
200 Bellway p.l.c. Annual Report and Accounts 2024
22. Retirement benefit assets continued
| 2024 | 2023 | |
| £m | £m | |
Diversified growth fund | 13.9 | 14.7 |
Corporate bonds | 4.9 | 5.2 |
Liability driven instruments | 19.6 | 18.7 |
Insurance policies annuities | 4.7 | 5.2 |
Cash and cash equivalents | 0.1 | 0.2 |
Total | 43.2 | 44.0 |
| 2024 | 2023 | |
| % per annum | % per annum | |
Discount rate | 5.00 | 5.10 |
Future salary increases | 3.60 | 3.60 |
Allowance for pension in payment increases of RPI or 5% p.a. if less | 2.90 | 2.90 |
Allowance for deferred pension increases of 3% p.a. | 3.00 | 3.00 |
| 15% of | 15% of | |
| Allowance for commutation of pension for cash at retirement | pension | pension |
Male retiring in 2024 | 22.3 years |
Female retiring in 2024 | 24.2 years |
Male retiring in 2044 | 23.6 years |
Female retiring in 2044 | 25.7 years |
Male retiring in 2023 | 22.3 years |
Female retiring in 2023 | 24.2 years |
Male retiring in 2043 | 23.6 years |
Female retiring in 2043 | 25.6 years |
201Bellway p.l.c. Annual Report and Accounts 2024
Accounts
22. Retirement benefit assets continued
Assumption | Change in assumption | Change in liabilities (%) |
Discount rate | +0.10% p.a. | Decrease by 1.1% |
Inflation | +0.10% p.a. | Increase by 1.0% |
Mortality | +1 year life expectancy | Increase by 4.1% |
Notes to the Financial Statements continued
Accounts
202 Bellway p.l.c. Annual Report and Accounts 2024
23. Share-based payments continued
Options issued under the SRSOS are offered to all employees including the Executive Directors.
An outline of the performance conditions in relation to the LTIP is detailed under the long-term incentive scheme section on
pages 146 to 150 within the Remuneration Report.
Share-based payments have been valued by an external third party using various models detailed below, based on publicly
available market data at the time of the grant, which the Directors consider to be the most appropriate method of determining
their fair value.
The number and weighted average exercise price of share-based payments is as follows:
LTIP, DBP
| 2024 | 2024 | 2023 | 2023 | |
| Weighted | Number of | Weighted | Number of | |
| average | options | average | options | |
| exercise price | exercise price | |||
| p | No. | p | No. | |
Outstanding at the beginning of the year | – | 459,623 | – | 329,279 |
Granted during the year | – | 268,698 | – | 222,974 |
Lapsed during the year | – | (129,954) | – | (88,717) |
Exercised during the year | – | (1,088) | – | (3,913) |
Outstanding at the end of the year | – | 597,279 | – | 459,623 |
Exercisable at the end of the year | – | – | – | 88 |
The options outstanding at 31 July 2024 have a weighted average contractual life of 1.5 years (2023 – 1.5 years). The weighted
average share price at the date of exercise for share options exercised during the year was 2,260.9 (2023 – 1,906.6p).
SRSOS
| 2024 | 2024 | 2023 | 2023 | |
| Weighted | Number of | Weighted | Number of | |
| average | options | average | options | |
| exercise price | exercise price | |||
| p | No. | p | No. | |
Outstanding at the beginning of the year | 1,686.5 | 753,984 | 2,445.4 | 442,082 |
Granted during the year | 1,632.0 | 232,528 | 1,550.0 | 684,517 |
Forfeited during the year | 1,707.6 | (163,423) | 2,337.5 | (371,508) |
Exercised during the year | 2,268.9 | (52,927) | 1,892.8 | (1,107) |
Outstanding at the end of the year | 1,625.5 | 770,162 | 1,686.5 | 753,984 |
Exercisable at the end of the year | 2,338.2 | 6,767 | 2,528.0 | 356 |
The options outstanding at 31 July 2024 have an exercise price in the range of 1,550.0p to 2,535.0p (2023 – 1,550.0p to 2,535.0p)
and have a weighted average contractual life of 2.7 years (2023 – 3.3 years). The weighted average share price at the date of
exercise for share options exercised during the year was 2,734.3p (2023 – 2,445.7p).
203Bellway p.l.c. Annual Report and Accounts 2024
Accounts
23. Share-based payments continued
The fair value of services received in return for share options granted is measured by reference to the fair value of the share
options granted. The inputs into the models for the various grants in the current and previous year were as follows:
| 2024 | |||||
| October | November | November | November | November | |
| 2023 | 2023 | 2023 | 2023 | 2023 | |
Scheme description | LTIP | LTIP | DBP | 3 year SRSOS | 5 year SRSOS |
| Monte | Monte | Black | Black | ||
| Valuation model | Carlo | Carlo | n/a | Scholes | Scholes |
Grant date | 24-Oct-23 | 14-Nov-23 | 14-Nov-23 | 22-Nov-23 | 22-Nov-23 |
Risk free interest rate | 0.0% | 0.0% | 0.0% | 4.3% | 4.1% |
Exercise price | – | – | – | 1,632.0p | 1,632.0p |
Share price at date of grant | 2,036.0p | 2,350.0p | 2,350.0p | 2,378.0p | 2,378.0p |
Expected dividend yield | 0.0% | 5.0% | 5.0% | 5.0% | 5.0% |
| 3 years 2 | 5 years 2 | ||||
Expected life | 3 years | 3 years | 4 years | months | months |
Vesting date | 24-Oct-26 | 14-Nov-26 | 14-Nov-27 | 01-Feb-27 | 01-Feb-29 |
Expected volatility | 30% | 30% | 30% | 30% | 35% |
Fair value of option | 1,376.6p | 1,554.3p | 1,744.0p | 744.0p | 789.0p |
| 2023 | ||||||
| November | November | November | November | December | December | |
| 2022 | 2022 | 2022 | 2022 | 2022 | 2022 | |
Scheme description | LTIP | LTIP | DBP | DBP 3 year SRSOS 5 year SRSOS | ||
| Monte | Monte | Black | Black | |||
| Valuation model | Carlo | Carlo | n/a | n/a | Scholes | Scholes |
Grant date | 11-Nov-22 | 28-Nov-22 | 28-Nov-22 | 28-Nov-22 | 07-Dec-22 | 07-Dec-22 |
Risk free interest rate | 0.0% | 0.0% | 0.0% | 0.0% | 3.3% | 3.2% |
| Exercise price | – | – | – | – | 1,550.0p | 1,550.0p |
Share price at date of grant | 2,093.0p | 1,996.0p | 1,996.0p | 1,996.0p | 1,940.0p | 1,940.0p |
Expected dividend yield | 0.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |
| 3 years 2 | 5 years 2 | |||||
Expected life | 3 years | 3 years | 3 years | 4 years | months | months |
Vesting date | 11-Nov-25 | 28-Nov-25 | 28-Nov-25 | 28-Nov-26 | 01-Feb-26 | 01-Feb-28 |
Expected volatility | 40% | 40% | 40% | 40% | 40% | 35% |
Fair value of option | 1,560.6p | 1,412.6p | 1,508.0p | 1,432.0p | 574.0p | 537.0p |
A simplified Monte Carlo simulation method has been used to determine the Group’s TSR performance against the FTSE
350 Index (excluding investment trusts and financial service companies). In the case of the DBP, there are no market-related
performance conditions and awards will be eligible to vest upon reaching a date set out in the Deed of the award. As dividends
are not reinvested, the fair value of these awards is equal to the share price at the date of the grant. The valuations have also
been adjusted for any post-vesting holding period with the adjustment calculated using Ghaidarov’s adjustments to Finnerty’s
Average Strike Option Marketability Discount Model to calculate the loss of marketability discount factor.
The expected volatility for all models was determined by considering the volatility levels historically for the Group. Volatility levels
for more recent years were considered to have more relevance than earlier years for the period reviewed.
The Group recognised total expenses of £4.5 million (2023 – £4.5 million) in relation to equity-settled share-based payment transactions.
Contingencies, related parties and subsidiaries
Notes to the Financial Statements continued
Accounts
204 Bellway p.l.c. Annual Report and Accounts 2024
24. Contingent liabilities continued
| 2024 | 2023 | |
| £m | £m | |
Invoiced to joint arrangements in respect of accounting, management fees, interest on loans, land purchases and infrastructure works | 22.9 | 22.4 |
| Amounts owed to joint arrangements in respect of land purchases and management fees | ||
at the year end | (5.0) | (4.3) |
Amounts owed by joint arrangements in respect of accounting, management fees, interest, land purchases and infrastructure works | 62.2 | 45.4 |
| 2024 | 2023 | |
| £m | £m | |
| Amounts received in the year from subsidiaries for share options exercised by subsidiary company | ||
employees, dividends received, finance income and recharges for group services | 244.5 | 171.2 |
| Amounts paid in the year by subsidiaries on behalf of the Company in respect of dividends, finance | ||
expenses and share purchases, and receivable from subsidiaries on disposal of investments | (166.6) | (237.7) |
Amounts owed by subsidiaries in respect of dividends and shares issued net of amounts paid on behalf of the Company | 521.1 | 443.2 |
Investments in subsidiaries | 52.3 | 48.0 |
205Bellway p.l.c. Annual Report and Accounts 2024
Accounts
| Subsidiaries – trading |
| Bellway Homes Limited |
| Bellway Housing Trust Limited |
| Bellway Properties Limited |
| Bellway (Services) Limited |
| Litrose Investments Limited |
Woolsington One Limited ^^ |
Ashberry Strategic Land Limited (formerly Rosconn Strategic Land Limited) ^^ |
Bellway Home Space Limited (formerly Woolsington Three Limited) g |
Subsidiaries – dormant ^ |
| Ashberry Homes Limited |
| Bellway (Builders) Limited |
| Bellway Financial Services Limited |
| Bellway London Limited |
| Bellway Trustee Company Limited |
| Bulldog Premium Growth I Limited |
| George Blackett Limited |
| Homes2Let Limited |
| J. T. B. (Chapel Farm) Estates Limited |
| J. T. B. Estates Limited |
| John T. Bell & Sons (1976) Limited |
| Nixons Kitchens Limited |
| Seaton GR SPV 13 Limited |
| Seaton GR SPV 14 Limited |
| Seaton Thirteen Limited |
Seaton Eleven Limited f |
| Seaton Eight Limited |
| Other entities |
HBF Insurance PCC Limited b |
MI New Home Insurance PCC Limited b |
Artex Insurance (Guernsey) PCC Limited d |
Notes to the Financial Statements continued
Accounts
206 Bellway p.l.c. Annual Report and Accounts 2024
27. Resident management companies
The Directors set out below information relating to resident management companies which are currently held by the Group as
at 31 July 2024.
Control is exercised by the Group’s power to appoint directors and the Group’s voting rights in these companies. All the resident
management companies listed below are limited by guarantee, unless otherwise indicated, without share capital and are
incorporated in the UK.
The capital, reserves and profit or loss for the year have not been stated for the resident management companies listed below
as the beneficial interest in any assets or liabilities of these companies is held by the residents. The Group does not have
exposure, or rights to variable returns from these companies and therefore they are not included in the consolidated financial
statements. They are temporary members of the Group and will be handed over to residents in due course.
Company Name | Registered Office | |
Abbey Heights Residents Management Company Limited | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER | |
Abbotswood Park Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY | |
Abingworth Meadows Management Company Limited | Suite No. 1 Stubbings House, Henley Road, Maidenhead, Berkshire, England, SL6 6QL | |
Admiral Park (Tongham) Management Company Limited | Victoria House, 178 - 180 Fleet Road, Fleet, Hampshire, England, GU51 4DA | |
Alkerden Heights (Parcel 5a) Management Company Limited | C/O Trinity Estates Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, | |
| United Kingdom, HP2 7DN | ||
Amen Corner (Binfield) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY | |
Archers Field Management Company Limited | 8 Hemmells, Basildon, Essex, England, SS15 6ED | |
Area F1 (Kings Hill) Management Company Limited | Gateway House, 10 Coopers Way, Southend-On-Sea, Essex, United Kingdom, SS2 5TE | |
Arrowe Brook Park (Greasby) Residents Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL | |
Ashlands and Brierley View Management Company Limited | Bellway Homes Limited (East Midlands) 3 Romulus Court, Meridian Business Park, | |
| Braunstone Town, Leicester, United Kingdom, LE19 1YG | ||
Aspects Management Company Limited | 100 | Avebury Boulevard, Milton Keynes, England, MK9 1FH* |
Aspen Apartments (Colchester) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Aspen Walk (Eight Ash Green) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Astley Management Company Limited | Bellway Homes Limited (West Midlands) 1 Centurion Court, Centurion Way, Wilnecote, | |
| Tamworth, Staffordshire, United Kingdom, B77 5PN | ||
Avondale (Cressing) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Azalea (Medstead) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Badbury Reach Management Company Limited | Trinity, Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Barley Fields (Tamworth) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Barleycorn Way Residents Management Company Limited | C/O Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, | |
| CW6 9DL | ||
Barleywoods Residential Management Limited | C/O Mlm Property Management 2nd Floor, Premiere House, Elstree Way, | |
| Borehamwood, United Kingdom, WD6 1JH | ||
Bartley Square Management Company Limited | Sutherland House, 1759 London Road, Leigh-On-Sea, Essex, SS9 2RZ | |
Barton Manor (Barton) Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH | |
Barton Meadows Residents Management Company Limited | C/O Kingston Property Services Limited Cheviot House, Beaminster Way, | |
| East Kingston Park, Newcastle Upon Tyne, United Kingdom, NE3 2ER | ||
Barton Quarter (Horwich) Residents Management Company Limited | C/O Rmg House, Essex Road, Hoddesdon, United Kingdom, EN11 0DR | |
Bassingbourne Fields Management Company Limited | C/O Michael Laurie Magar Ltd, Elstree Way, Borehamwood, England, WD6 1JH | |
Baswich Grange Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Beaulieu Grange (Chelmsford) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Beckton Parkside Management Company Limited | C/O Pinnacle Housing Ltd As Agent For Beckton Parkside Management Company | |
| Limited, 8th Floor Holborn Tower, 137-144 High Holborn, London, England, WC1V 6PL | ||
Bellway at Rosewood Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Bellway Whitehouse Farm Management Company Limited | 253-255 Queensway Queensway, Bletchley, Milton Keynes, England, MK2 2EH | |
Belmont Park (Maidenhead) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY | |
Belvedere Park Management Company Limited | 20 King Street, London, England, EC2V 8EG | |
Bentall Place (Heybridge) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Berwick Green Bristol Management Company Limited | 1st Floor 2540 The Quadrant, Aztec West, Almondsbury, Bristol, United Kingdom, | |
| BS32 4AQ* | ||
Bicknor Wood Ltd | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR |
207Bellway p.l.c. Annual Report and Accounts 2024
Accounts
Company Name | Registered Office | |
Blenheim Green Management Company Limited | C/O Trustmgt Ltd Unit 7, Portal Business Park, Eaton Lane, Tarporley, Cheshire, | |
| United Kingdom, CW6 9DL | ||
Bluebell Walk (Harrietsham) Management Company Ltd | C/O Gateway Property Management Limited Gateway House, 10 Coopers Way, | |
| Southend-On-Sea, Essex, United Kingdom, SS2 5TE | ||
Bluebells (Witham) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY | |
Bluecoats Management Company Limited | North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England, | |
| SY1 3BF | ||
Bluenote Apartments Management Company Limited | 395 | Centennial Park Centennial Avenue, Elstree, Borehamwood, England, WD6 3TJ |
Boorley Gardens Residents Management Company Limited | 2 Centro Place, Pride Park, Derby, Derbyshire, United Kingdom, DE24 8RF* | |
Bourne View (Ipswich) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY | |
Bower Place Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Bowood View (Melksham) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Brackley Village Residents Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL | |
Brambleside Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Brampton Gate Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Bridleway Grange Residents Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, United Kingdom, SP2 7QY | |
Broadleaf Ashby Management Company Limited | 100 | Avebury Boulevard, Milton Keynes, United Kingdom, MK9 1FH |
Broadleaf Management Company Limited | 100 | Avebury Boulevard, Milton Keynes, United Kingdom, MK9 1FH |
Brook Meadows Wixams Residents Management Company Limited | Building 5 Caldecotte Lake, Caldecotte, Milton Keynes, United Kingdom, MK7 8LE | |
Brook View (Wixams) Residents Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Brookvale Management Company Limited | Trinity Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Buckland Rise (Peters Village) Management Company Ltd | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Buckthorn Grange Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Burdon Rise Residents Management Company Limited | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER | |
Byron Heights Residents Management Company Limited | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, Tyne And Wear, England, | |
| NE3 2ER | ||
Castlegate (Skelton) Management Company Limited | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, England, NE3 2ER | |
Cathedral Park (Chichester) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Cecilly Mills Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Centurion Chase Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL | |
Centurion Fields Elloughton Ltd | North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England, | |
| SY1 3BF | ||
Chailey Gardens Management Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Chalfont Drive Residents Management Company Limited | 406a Birmingham Road, Sutton Coldfield, England, B72 1YJ | |
Chamberlains Bridge Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Charters Hill Residents Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Cherry Orchard (Bevere) Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Chestnut Vale Residents Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Chilsey Grange Management Company Limited | Imperium, Imperial Way, Reading, Berkshire, United Kingdom, RG2 0TD | |
City Fields (Wakefield) Management Company Limited | 2 Centro Place, Pride Park, Derby, Derbyshire, DE24 8RF | |
Clarence Gate Residents Management Company Limited | C/O Kingston Property Services Limited Cheviot House, Beaminster Way East, | |
| Newcastle Upon Tyne, United Kingdom, NE3 2ER | ||
Clifford Gardens (Skipton) Management Company Limited | North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, United Kingdom, | |
| SY1 3BF | ||
Coed Derw Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL | |
Cooper Square (Maidenhead) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Copenhagen Wharf Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Copperfields Residents Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, United Kingdom, SP2 7QY | |
Copperhouse Green Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Copthorne Keep Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Corallian Heights Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Cornelia Gardens Management Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
27. Resident management companies continued
Notes to the Financial Statements continued
Accounts
208 Bellway p.l.c. Annual Report and Accounts 2024
Company Name | Registered Office | |
Cornfield's Residents Management Company Limited | Romulus Court Meridian East, Meridian Business Park, Leicester, Leicestershire, | |
| United Kingdom, LE19 1YG | ||
Cortlands Management Company Limited | C/O Mlm Property Management 2nd Floor, Premiere House, Elstree Way, | |
| Borehamwood, United Kingdom, WD6 1JH | ||
Cotton Woods (Preston) Residents Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL | |
Crossways Quarter Management Company Limited | 8th Floor Holborn Tower, 137-144 High Holborn, London, United Kingdom, WC1V 6PL | |
Crown Fields (Chatham) Management Company Limited | C/O Gateway Property Management Gateway House 10 Coopers Way, | |
| Temple Farm Industrial Estate, Southend-On-Sea, Essex, England, SS2 5TE | ||
Curzon Park (Residents) Management Company Limited | One Eleven, Edmund Street, Birmingham, West Midlands, B3 2HJ | |
Cuttle Brook Management Company Ltd | One Eleven, Edmund Street, Birmingham, B3 2HJ | |
Dacres Wood Court Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Dalesway (Harrogate) Management Company Limited | RMG House, Essex Road, Hoddesdon, Hertfordshire, United Kingdom, EN11 0DR | |
Darwins Edge Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
De Havilland Place (Kings Hill) Management Company Limited | C/O 30 Tower View, Kings Hill, West Malling, Kent, United Kingdom, ME19 4UY | |
Devonshire Place (Grays) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Dickens Manor Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Digby Court (Birmingham) Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH | |
Dove Manor Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Dunton Fields (Laindon) Management Company Limited | 8 Hemmells, Basildon, Essex, England, SS15 6ED | |
Earlsfield Park (Knowsley) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
East Middle Callerton Residents Management Company Limited | Kingston Property Services Limited Cheviot House, Beaminster Way East, | |
| Newcastle Upon Tyne, United Kingdom, NE3 2ER | ||
Eastbrook Village East Phase 1 (Site H) Management Company Limited | 8th Floor Holborn Tower, 137-144 High Holborn, London, United Kingdom, WC1V 6PL | |
Eastbrook Village East Phase 2 (Site H) Management Company Limited | 8th Floor Holborn Tower, 137-144 High Holborn, London, United Kingdom, WC1V 6PL | |
Eastside Quarter Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Ebbsfleet Cross (Phase 2) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Ebbsfleet Cross Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Elder brook Residents Management Company Limited | C/O Mlm Property Management 2nd Floor, Premiere House, Elstree Way, | |
| Borehamwood, Hertfordshire, United Kingdom, WD6 1JH | ||
Elements Residents Management Company Limited | One Eleven, Edmund Street, Birmingham, West Midlands, B3 2HJ | |
Elizabeth Square (Durrington) Residents Management Company Limited | C/O Bellway Homes Limited (South London) 1st Floor, Regent House, 1-3 Queensway, | |
| Redhill, Surrey, United Kingdom, RH1 1QT | ||
Elmington Parcel 1 Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Elmington Parcel 2 Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Elmington Parcel 3 Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Euxton Heights Residents Management Company Limited | C/O Trustmgt (Rfs) Limited, Unit 7 Portal Business Park, Tarporley, Cheshire, | |
| United Kingdom, CW6 9DL | ||
Eve Meadows (Haughley) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY | |
Fairfields (Calcot) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Falcon Grove Management Company Limited | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER | |
| Fallow Wood View (Burgess Hill) Residents Management Company | C/O Bellway Homes Limited (South London) 1st Floor, Regent House, 1-3 Queensway, | |
| Limited | Redhill, Surrey, United Kingdom, RH1 1QT | |
Farriers Court Residents Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Fellows Gardens Management Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Fielders Crescent Management Company Limited | C/O Pinnacle Housing Ltd As Agent For Fielders Crescent Management Company | |
| Limited, 8th Floor Holborn Tower, 137-144 High Holborn, London, England, WC1V 6PL | ||
Fielders Crescent Phase 3 (209A) | Management Company Limited | 8th Floor Holborn Tower, 137-144 High Holborn, London, United Kingdom, WC1V 6PL |
Fielders Quarter Phase 4 (209B) | Management Company Limited | 8th Floor Holborn Tower, 137-144 High Holborn, London, United Kingdom, WC1V 6PL |
Fielders Quarter Phase 5 (208A) | Management Company Limited | 8th Floor Holborn Tower, 137-144 High Holborn, London, United Kingdom, WC1V 6PL |
Fifers Lane (Orchard Place) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN | |
Forest Chase Management Company Ltd | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Forest Oak Management Company Limited | Faulkner & Company 1a, George Street, Hinckley, Leicestershire, England, LE10 0AL | |
Forest Walk (Lydney) Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL | |
Forster Park (Stevenage) Residents Management Company Ltd | 2 Centro Place, Pride Park, Derby, Derbyshire, United Kingdom, DE24 8RF | |
Four Oaks (Oxted) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR |
27. Resident management companies continued
209Bellway p.l.c. Annual Report and Accounts 2024
Accounts
Notes to the Financial Statements continued
Company Name | Registered Office | |
Foxhill (Brackley) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Foxlow Grange Berryfields Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Foxmill Gardens (Willand) Management Company Limited | C/O Principle Estate Management, 137 Newhall Street, Birmingham, United Kingdom, | |
| B3 1SF | ||
Frobisher Court (Finningley) Management Limited | North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, United Kingdom, | |
| SY1 3BF | ||
Furlong Park Residents Management Company Limited | North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England, | |
| SY1 3BF | ||
Fusion (Harlow) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Gloster Chase Management Company Limited | C/O 30 Tower View, Kings Hill, West Malling, Kent, United Kingdom, ME19 4UY | |
Goodsyard (No 1) Management Company Limited | 395 | Centennial Park 395 Centennial Park, Centennial Avenue, Elstree, London, |
| United Kingdom, WD6 3TJ | ||
Grammar School Gardens Management Company Limited | North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England, | |
| SY1 3BF | ||
Great Dunmow Grange Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Greensands Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Greenwich Wharf Management Company Limited | 8th Floor, South Block, 55 Baker Street, London, United Kingdom, W1U 8EW | |
Grey Gables Farm Management Company Limited | One Eleven, Edmund Street, Birmingham, B3 2HJ | |
Greystone Meadows (Undy) Management Company Limited | 7 Portal Business Park, Eaton Lane, Tarporley, England, CW6 9DL | |
Grove Meadows Management Company Limited | Marlborough House, 298 Regents Park Road, London, N3 2UU | |
Halewood Oaks Resident Management Company Limited | C/O Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, | |
| CW6 9DL | ||
Hall Road (Rochford) Management Company Limited | C/O Pod Group Services Limited First Floor, Unit 1, Elstree Gate, Elstree Way, | |
| Borehamwood, Hertfordshire, United Kingdom, WD6 1JD | ||
Halyards Residents Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Hampden Gardens (Thame) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Hampton Trove Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Hanwell View Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Harbour Village (Ebbsfleet) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Hardintone Court Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH | |
Harnham Park Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Hartshorne Residents Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Hartside View (Hartlepool) Residents Management Company Limited | 2 Centro Place, Pride Park, Derby, Derbyshire, United Kingdom, DE24 8RF* | |
Harvard Place (Earls Colne) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Harvino Residents Management Company Limited | Trustmgt (Rfs) Limited 7 Portal Business Park, Eaton Lane, Tarporley, United Kingdom, | |
| CW6 9DL | ||
Hatfield Grove (Hatfield Peveral) Management Company Limited | C/O Pod Group Services Limited First Floor, Unit 1, Elstree Gate, Elstree Way, | |
| Borehamwood, Hertfordshire, United Kingdom, WD6 1JD | ||
Hathaway Gardens Management Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Hathaway Gardens Ph2 Residents Management Company Limited | 100 | Avebury Boulevard, Milton Keynes, United Kingdom, MK9 1FH |
Hawksview (Hawkhurst) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Hawthorne Rise Management Company Limited | Trinity, Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Hazel Fold Residents Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, United Kingdom, SP2 7QY | |
Hazelrigg Residents Management Company Limited | 2 Centro Place, Pride Park, Derby, Derbyshire, DE24 8RF* | |
Hazlemere Marina (Waltham Abbey) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Heathcote Park (Warwick) Management Limited | Alexander Faulkner Partnership Limited, 11 Little Park Farm Road, Fareham, England, | |
| PO15 5SN | ||
Heatherley Wood Residents Management Company Limited | Rmg House, Essex Road, Hoddesdon, England, EN11 0DR | |
Heathlands Rmc Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Helios Park Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Helios Park Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Helliers Lane (Cheddar) Management Company Limited | 1st Floor 2540 The Quadrant Aztec West, Almondsbury, Bristol, United Kingdom, | |
| BS32 4AQ | ||
Hellingly (Hailsham) Management Company Ltd | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
27. Resident management companies continued
Accounts
210 Bellway p.l.c. Annual Report and Accounts 2024
Company Name | Registered Office | |
Henderson Park (Thorpe le Soken) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, HP2 7DN | |
High Point Residents Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Highland Park (South Ockendon) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Highlands Grange Management Company Limited | Bellway House Anchor Boulevard, Crossways Business Park, Dartford, Kent, England, | |
| DA2 6QH | ||
Hinxhill Park (Ashford) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Hollytree Walk (Colchester) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Holmwood Residents Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Hugglescote Grange Management Company Limited | Bellway Homes Limited (East Midlands) Romulus Court, Meridian East, Leicester, | |
| United Kingdom, LE19 1YG | ||
Huntercombe Walk (Taplow) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, United Kingdom, SP2 7QY | |
Ikon (Croydon) Management Company Limited | Sutherland House, 1759 London Road, Leigh On Sea, Essex, United Kingdom, SS9 2RZ | |
Imperial Gardens (Howden) Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, CW6 9DL | |
Imperial Park (Maidstone) Management Company Limited | Gateway House, 10 Coopers Way, Southend On Sea, Essex, United Kingdom, SS2 5TE | |
Indigo Park (Chichester) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Ivy Hill Residential Management Company Limited | C/O Mlm Property Management 2nd Floor, Premiere House, Elstree Way, | |
| Borehamwood, United Kingdom, WD6 1JH | ||
Jameson Manor Residents Management Company Limited | Kingston Property Services Limited Cheviot House, Beaminster Way East, | |
| Newcastle Upon Tyne, United Kingdom, NE3 2ER | ||
Jellicoe Gardens (Moreton) Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, United Kingdom, CW6 9DL | |
Jubilee Green Management Company Limited | Bellway Homes Limited (South Midlands) Oak House, Eastwood Business Village, | |
| Harry Weston Road, Binley, Coventry, United Kingdom, CV3 2UB | ||
Jubilee Park Residents Management Company Limited | North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, UK, SY1 3BF | |
K George’s Vale (Cuffley) Management Company Limited | Gateway House, 10 Coopers Way, Southend-On-Sea, Essex, England, SS2 5TE | |
Keephatch Gardens (Wokingham) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Kent Wharf Management Company Limited | Concierge Office Kent Wharf, Creekside, London, England, SE8 3GP | |
Kingfisher Green (Rainham) Management company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Kingsland Gate Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Kingsmere Park (West Parley) Management Company Limited | Vantage Point 23 Mark Road, Hemel Hempstead Industrial Estate, Hemel Hempstead, | |
| England, HP2 7DN | ||
Kingsreach (Slough) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, SP2 7QY | |
Kingswood (High Wycombe) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Kingswood Heath (Colchester) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR* | |
| Ladden Garden Village Pl 24-27 (Leasehold Apartments) Management | 1st Floor 2540 The Quadrant, Aztec West, Almondsbury, Bristol, United Kingdom, | |
| Company Limited | BS32 4AQ | |
Lakeside Park Management Company Limited | 137 | Newhall Street, Birmingham, England, B3 1SF |
Langford Park Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Langmead Place (Angmering) Management Company Limited | C/O Realty Management Ground Floor, Discovery House, Crossley Road, Stockport, | |
| United Kingdom, SK4 5BH | ||
Lansbury Square Management Company Limited | 129 | Oxford Street, London, England, W1D 2HZ |
Lathom Pastures Residents Management Company Limited | C/O Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, | |
| CW6 9DL | ||
Latitude Residents Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Latitude Residents No 3 Limited | New Kings Court Tollgate, Chandler's Ford, Eastleigh, Hampshire, United Kingdom, | |
| SO53 3LG | ||
Legacy Wharf (Phase 2) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Legacy Wharf Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Lestone Mews Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Liberty Quarter Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Lilibet Gardens Residents Management Company Limited | Rmg House, Essex Road, Hoddesdon, United Kingdom, EN11 0DR | |
Limehouse Basin (London) Management Company Limited | 196 | New Kings Road, London, United Kingdom, SW6 4NF |
Linkside (Burton) Management Company Limited | Unit 7, Astra Centre, Edinburgh Way, Harlow, Essex, England, CM20 2BN | |
Linmere Gateway Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Linmere Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Lion Wharf (Isleworth) Management Company Limited | 395 | Centennial Park Centennial Avenue, Elstree, Borehamwood, England, WD6 3TJ |
Little Acres Residents Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, England, SP2 7QY | |
27. Resident management companies continued
211Bellway p.l.c. Annual Report and Accounts 2024
Accounts
Company Name | Registered Office | |
Little Meadows (Cranleigh) Management Company Limited | C/O A W Associates Regus, Building 2, Guildford Business Park Road, Guildford, Surrey, | |
| GU2 8XG | ||
Littlebrook (Cutbush Lane) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Lockharts Rmc Limited | Unit 7 Astra Centre, Harlow, Essex, England, CM20 2BN | |
Lockwood Place (Bramford) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY | |
Long Acre (Shinfield) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Long Lane (Beverley) Management Company Limited | North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, United Kingdom, | |
| SY1 3BF | ||
Longfield Place (Sherfield) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Longholme Park Residents Management Company Limited | North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, England, SY1 3BF | |
Longwood Copse Residents Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Lucas Green Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Lyde Green Management Company Limited | 94 Park Lane, Croydon, England, CR0 1JB | |
Lydiate Gate Residents Management Company Limited | C/O Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, | |
| CW6 9DL | ||
Lysander Fields Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Maes Y Rhedyn Fern Meadow Residents Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL* | |
Mallard Walk Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Malvern Chase (Tewkesbury) Management Company Limited | Bellway Homes 2540 The Quadrant, Aztec West, Bristol, BS32 4AQ | |
Maple Creek Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead Industrial Estate, Hemel Hempstead, | |
| Hertfordshire, England, HP2 7DN | ||
Marconi (Chelmsford) Management Company Limited | C/O Pinnacle Housing Ltd As Agent For Marconi (Chelmsford) Management Company | |
| Limited, 8th Floor Holborn Tower, 137–144 High Holborn, London, England, WC1V 6P | ||
| Marlborough Road Wroughton (Swindon) Management Company | 1st Floor 2540 The Quadrant, Aztec West, Almondsbury, Bristol, United Kingdom, | |
| Limited | BS32 4AQ | |
Maybrey Works Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Mead Fields (Phase 2) Weston Parklands Management Company Limited | 1st Floor, 2540 The Quadrant Aztec West, Almondsbury, Bristol, England, BS32 4AQ | |
| Mead Fields Phase 2 (Leasehold Apartments) Management Company | 1st Floor 2540 The Quadrant, Aztec West, Almondsbury, Bristol, United Kingdom, | |
| Limited | BS32 4AQ | |
Meadow Rise (Heighington) Management Company Limited | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, England, NE3 2ER | |
Meadow View (Romsey) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Merchants Gate Cottingham Limited | North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England, | |
| SY1 3BF | ||
Mill Fields (Wingerworth) Management Company Limited | C/O Trust Green Management Company Unit 7, Portal Business Park, Eaton Lane, | |
| Tarporley, Cheshire, United Kingdom, CW6 9DL | ||
Milldown Residents Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Millstone Park Residents Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, United Kingdom, CW6 9DL | |
Millworks, K Langley Management Company Limited | C/O Gateway Property Management Gateway House 10 Coopers Way, Temple Farm | |
| Industrial Estate, Southend-On-Sea, Essex, England, SS2 5TE | ||
Modello Residents Management Company Limited | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER | |
Montague Green (Rowland's Castle) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Montem Square Management Company Limited | Bellway Homes Limited (Thames Valley) Imperium, Imperial Way, Reading, | |
| United Kingdom, RG2 0TD | ||
Mousley Park Hilton Management Company Limited | One Eleven, Edmund Street, Birmingham, United Kingdom, B3 2HJ | |
Mulberry Park Apartments (Management Company) Limited | 2540 | The Quadrant Aztec West, Almondsbury, Bristol, BS32 4AQ |
New Cardington Estate Management Company Limited | C/O It All Figures 14 Coningsbury Lane, Shortstown, Bedford, England, MK42 0PW | |
| New Cardington Hangars Block Residents Management Company | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
| Limited | ||
| New Cardington Hangars Estate Residents Management Company | Fisher House, 84 Fisherton Street, Salisbury, SP2 7QY | |
| Limited | ||
New Gimsons Place (Witham) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY | |
Nightingale Rise (Hoo) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
North Abingdon Management Company Limited | Unit 7 Astra Centre, Edinburgh Way, Harlow, Essex, United Kingdom, CM20 2BN | |
Northdene Residents Management Company Limited | Unit 7 Portal Business Park Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL | |
Novello Management Company Limited | C/O Pod Group Services Limited First Floor, Unit 1, Elstree Gate, Elstree Way, | |
| Borehamwood, Hertfordshire, United Kingdom, WD6 1JD |
Notes to the Financial Statements continued
27. Resident management companies continued
Accounts
212 Bellway p.l.c. Annual Report and Accounts 2024
Company Name | Registered Office | |
Oak Hill Park (Chinnor) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Oakes Park (Dartford) Management Company Limited | C/O Pmuk, The Base, Dartford Business Park, Victoria Road, Dartford, England, DA1 5FS | |
Oakfields Park (Halstead) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Oakley Park (Edenbridge) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Old Brook View Residents Management Company Limited | C/O Rmg House, Essex Road, Hoddesdon, United Kingdom, EN11 0DR | |
Old Forest Road (Winnersh) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Old R Chace Management Company Limited | 395 | Centennial Park, Elstree, Borehamwood, England, WD6 3TJ |
Old School Gardens Residents Management Company | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER | |
Oxenden Park (Thornden Wood) Management Company Limited | Unit 7, Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL | |
Oxlease Residents Limited | New Kings Court Tollgate, Chandler's Ford, Eastleigh, Hampshire, England, SO53 3LG | |
P.R.P. Management Company Limited | North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England, | |
| SY1 3BF | ||
Park Gate Village Residents Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, England, CW6 9DL | |
Parsonage Place (Otham) Management Company Limited | Queensway House, Queensway, New Milton, Hampshire, England, BH25 5NR | |
Parsons Croft Management Company Limited | Unit 7 Portal Business Park, Tarporley, United Kingdom, CW6 9DL | |
Pasture Walk Management Company Limited | Castleman Business Centre, Embankment Way, Ringwood, England, BH24 1EU | |
Penmire Rise Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Penny Way Snaith Management Company Limited | Bellway Homes Limited (Yorkshire) First Floor, Unit 2150, Century Way, Leeds, | |
| United Kingdom, LS15 8ZB | ||
Perceval Grange Management Company Limited | C/O Bellway Homes Limited (South London) 1st Floor, Regent House, 1-3 Queensway, | |
| Redhill, Surrey, United Kingdom, RH1 1QT | ||
Phase 1A Parc Mawr (Penllergaer) Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, England, CW6 9DL | |
Phoenix Park (Thame) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Pinchbeck Fields (EC) Residents Management Company Limited | C/O Mlm Property Management 2nd Floor, Premiere House, Elstree Way, | |
| Borehamwood, United Kingdom, WD6 1JH | ||
Pinchbeck Fields Management Company Limited | C/O Mlm Property Management 2nd Floor, Premiere House, Elstree Way, | |
| Borehamwood, United Kingdom, WD6 1JH | ||
Pine Walk Guisborough Management Company Limited | North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England, | |
| SY1 3BF | ||
Pinewood Grange (Stowmarket) Management Company Limited | Second Floor, Premier House, Elstree Way, Borehamwood, Hertfordshire, | |
| United Kingdom, WD6 1JH | ||
Pipits Residents Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Pirton Fields (Churchdown) Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, England, CW6 9DL | |
Platts Meadow (Winsford) Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, United Kingdom, CW6 9DL | |
| Plummers Meadow (Halewood) Residents Management Company | Unit 7 Portal Business Park, Eaton Lane, Tarporley, England, CW6 9DL | |
| Limited | ||
Poppy Field Residents Management Company Limited | North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England, | |
| SY1 3BF | ||
Poppy Fields (Cholsey) Flats Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Poppy Fields (Cholsey) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Poppy View (Saffron Walden) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Porters Grove (St. Leonards) Management Company Limited | C/O 30 Tower View, Kings Hill, West Malling, Kent, United Kingdom, ME19 4UY | |
Portland Gardens (Wouldham) Management Company Ltd | Gateway House, 10 Coopers Way, Southend On Sea, Essex, United Kingdom, SS2 5TE | |
Priory Grange (Hatfield Peverel) Management Company Limited | C/O Pod Group Services Limited First Floor, Unit 1, Elstree Gate, Elstree Way, | |
| Borehamwood, Hertfordshire, United Kingdom, WD6 1JD | ||
QE2 (Welwyn Garden City) Management Company Limited | Sutherland House, 1759 London Road, Leigh On Sea, Essex, United Kingdom, SS9 2RZ | |
Quakers Walk (Devizes) Management Company Limited | Queensway House, 11 Queensway, New Milton, England, BH25 5NR | |
Quantock Heights (Banwell) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Rainbow Fields (Waddicar) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, England, SP2 7QY | |
Redlands Grove Management Limited* | 13a, Building Two, Canonbury Yard, 190 New North Road, London, England, N1 7BJ | |
Renaissance (Reading) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Renovo (West Thurrock) Management Company Limited | 8 Hemmells, C/O Accordant Estates Company Ltd., Hemmells, Basildon, England, | |
| SS15 6ED | ||
27. Resident management companies continued
213Bellway p.l.c. Annual Report and Accounts 2024
Accounts
Company Name | Registered Office |
Ridleys Orchard (Whitton) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY |
Riverbrook Place (Crawley) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR |
Rolleston Manor Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, |
| NG1 6HH | |
Roman Fields (Corbridge) Management Company Limited | 2 Centro Place, Pride Park, Derby, Derbyshire, United Kingdom, DE24 8RF |
Roman Gate (Melton Mowbray) Management Company Limited | 80 Mount Street, Nottingham, Nottinghamshire, England, NG1 6HH |
Roman Walk Residents Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, |
| HP2 7DN | |
Rookery Park Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY |
Rose Meadow (Northwich) Residents Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL |
Rosedale Park Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY |
Rowley Fields Residents Management Company Limited | North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, England, SY1 3BF |
Royal Bowland Park Residents Management Company Limited | C/O Rmg House, Essex Road, Hoddesdon, United Kingdom, EN11 0DR |
Sandstone Brook Residents Management Company | One Eleven, Edmund Street, Birmingham, West Midlands, United Kingdom, B3 2HJ |
Sandwell College Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH** |
Sapphire Fields & Beaumont Park Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY |
Saxon Heath (Marham Park) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, |
| HP2 7DN | |
Scholars Place Management Company Limited | Unit 7, Astra Centre, Edinburgh Way, Harlow, Essex, England, CM20 2BN |
Seaford Grange (Newlands) Management Company Limited | Woodland Place Wickford Business Park, Hurricane Way, Wickford, England, SS11 8YB |
Sheasby Park Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, |
| NG1 6HH | |
Silkmakers Court Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, |
| HP2 7DN | |
Sixty Three Management Company Limited | Gateway House, 10 Coopers Way, Southend-On-Sea, Essex, SS2 5TE |
Sky Plaza (Farnborough) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY |
Snelsmoor Village Management Company Limited | Bellway Homes East Midlands 3 Romulus Court, Meridian Business Park, |
| Braunstone Town, Leicester, United Kingdom, LE19 1YG | |
Solomon's Seal (Horsham) Management Company Limited | 25 Carfax, Horsham, West Sussex, RH12 1EE |
Somerford Gate (Congleton) Residents Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL |
Sovereign Place (Horley) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR |
Spindrift Park (Pagham) Residents Management Company Limited | Embankment Way, Castleman Business Centre, Ringwood, Hampshire, United Kingdom, |
| BH24 1EU | |
St George’s Walk Residential Management Company Limited | North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England, |
| SY1 3BF | |
St James Park (Parcel G) Management Company Limited | C/O Gateway Property Management Gateway House, 10 Coopers Way, |
| Southend-On-Sea, England, SS2 5TE | |
St James Park (Parcels B and C) Management Company Limited | C/O Gateway Property Management Limited, Gateway House 10 Coopers Way, |
| Southend-On-Sea, Essex, SS2 5TE | |
St John’s View (Menston) Management Company Limited | North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, United Kingdom, |
| SY1 3BF | |
St Lythans Park (Culverhouse Cross) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR |
St Mary's Hill (Blandford) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY |
St Mary's Stannington Management Company Limited | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, England, NE3 2ER*** |
St Wilfrid's Place (Litherland) Residents Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL |
St. George's Park Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR |
St. James Mews (Charfield) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR |
Staverton Lodge Residents Management Company Limited | Bellway Homes South Midlands Oak House, Binley Business Park, Coventry, |
| Warwickshire, United Kingdom, CV3 2UB | |
Steeds Farm (Fern Hill Gardens) Management Co Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR |
Steeple Chase (Frisby) Management Company Limited | 7 Astra Centre, Edinburgh Way, Harlow, Essex, England, CM20 2BN |
Stilton Gate Management Company Limited | Premiere House, Elstree Way, Borehamwood, England, WD6 1JH |
Stonebridge View Residents Management Company Limited | North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England, |
| SY1 3BF | |
Stoughton Park Management Company Limited | One Eleven, Edmund Street, Birmingham, West Midlands, United Kingdom, B3 2HJ |
Summerhill View Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL |
Summers Bridge (SAB) Management Limited | Unit 7, Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL* |
Summers Bridge Residents Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL* |
Swanland Grange Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, CW6 9DL |
Swinfen Vale Management Company Limited | Bellway Homes East Midlands 3 Romulus Court, Meridian Business Park, |
| Braunstone Town, Leicester, United Kingdom, LE19 1YG |
Notes to the Financial Statements continued
27. Resident management companies continued
Accounts
214 Bellway p.l.c. Annual Report and Accounts 2024
Company Name | Registered Office | |
Tattenhoe Park (Parcel 4) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
The Abbey Fields Grange Management Company Limited | 80 Mount Street, Nottingham, Nottinghamshire, England, NG1 6HH | |
The Academy Residents Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, United Kingdom, SP2 7QY | |
The Alders (Wolverhampton) Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH | |
The Avenue (Medburn) Residents Management Company Limited | Kingston Property Services Limited Cheviot House, Beaminster Way East, | |
| Newcastle Upon Tyne, United Kingdom, NE3 2ER | ||
The Beeches (Stanton Cross) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
The Brackens Residents Management Company Limited | R M G House, Essex Road, Hoddesdon, England, EN11 0DR | |
The Brambles (Apse Heath Isle of Wight) Limited | The Estate Office Church Mews, Beatrice Avenue, East Cowes, Isle Of Wight, PO32 6LW | |
The Bridles Residential Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
The Chase Residents Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
The Coppice Heights & Amber Rise Management Company Limited | 80 Mount Street, Nottingham, Nottinghamshire, England, NG1 6HH | |
The Fairways (Basingstoke) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
The Foresters Management Company Limited | 3 Romulus Court Meridian Business Park, Braunstone Town, Leicester, United Kingdom, | |
| LE19 1YG | ||
The Foundry (Hemel Hempstead) Management Company Limited | 395 | Centennial Park Centennial Avenue, Elstree, WD6 3TJ |
The Furlongs (Gt.Leighs) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
The Furrows (Warboys) Residents Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
The Gateford Quarter Management Company Limited | 80 Mount Street, Nottingham, Nottinghamshire, England, NG1 6HH | |
The Grange (Fenham) Resident Management Company Limited | Cheviot House, Beaminster Way East, Newcastle, Tyne And Wear, United Kingdom, | |
| NE3 2ER | ||
The Green (Solihull) Management Company Limited | 10 Queen Street Place, London, United Kingdom, EC4R 1AG | |
The Haven (Emsworth) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
The Landings Residents Management Company Limited | C/O Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, | |
| CW6 9DL | ||
The Long Shoot Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
The Mount Prestwich Residents Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, United Kingdom, SP2 7QY | |
The Oaks (Parsons Hill) Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
The Oaks (Witham) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
The Orchards (Colchester) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
The Pastures (Telford) Management Company Limited | 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH | |
The Printworks (Reading) Residents Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
The Residence (Nine Elms) Management Company Limited | C/O Pinnacle Housing Ltd As Agent For The Residence (Nine Elms) Management | |
| Company Ltd, 8th Floor Holborn Tower, 137-144 High Holborn, London, England, | ||
| WC1V 6PL | ||
The Residence (Phase 2) Management Company Limited | C/O Pinnacle Housing Ltd As Agent For The Residence (Phase 2) Management Company | |
| Limited, 8th Floor Holborn Tower, 137-144 High Holborn, London, England, WC1V 6PL | ||
The Ridgeway (Chinnor) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN** | ||
| The Rosehips (Lower Howsell Road) Residents Management Company | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
| Limited | ||
The Spinney (Oteley Road) Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, England, SP2 7QY | |
The Vale (Bottesford) Management Company Limited | One Eleven, Edmund Street, Birmingham, United Kingdom, B3 2HJ | |
The Vickers (Witchford) Residents Management Company Limited | C/O Michael Laurie Magar Ltd, Elstree Way, Borehamwood, England, WD6 1JH | |
The Wickets Management Company Limited | Bellway Home East Midlands 3 Romulus Court, Meridian Business Park, Braunstone Town, | |
| Leicester, United Kingdom, LE19 1YG | ||
The Willows (Swallowfield) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
The Willows Residential Management Company Limited | C/O Mlm Property Management 2nd Floor, Premiere House, Elstree Way, Borehamwood, | |
| United Kingdom, WD6 1JH | ||
The Withers (Netherton Residents Management Company Limited | Unit 7 Portal Business Park, Tarporley, England, CW6 9DL | |
The Woodlands (Watnall) Management Company Limited | Unit 7, Astra Centre, Edinburgh Way, Harlow, Essex, England, CM20 2BN | |
Thomas Road Management Company Limited | C/O Pinnacle Housing Ltd As Agent For Thomas Road Management Company Limited, | |
| 8th Floor Holborn Tower, 137-144 High Holborn, London, England, WC1V 6PL | ||
Tidbury Heights Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Tindale Reach (Wickwar) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
27. Resident management companies continued
215Bellway p.l.c. Annual Report and Accounts 2024
Accounts
Company Name | Registered Office | |
Tranby Park Residential Management Company Limited | Rmg House, Essex Road, Hoddesdon, Hertfordshire, United Kingdom, EN11 0DR | |
Turnberry Quay Management Company Limited | 137 | Newhall Street, Birmingham, England, B3 1SF |
Tylman Place (Faversham) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
| Vicarage Gardens (South Marston Swindon) Management Company | 13a, Building Two, Canonbury Yard, 190 New North Road, London, England, N1 7BJ | |
| Limited | ||
Victoria Gardens (Peters Village) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Victoria Gate and Place Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom, | |
| NG1 6HH | ||
Waltham Heights Resident's Management Company Limited | 100 | Avebury Boulevard, Milton Keynes, United Kingdom, MK9 1FH |
Walton Park Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Waterhouse Mill Residents Management Company | One Eleven, Edmund Street, Birmingham, B3 2HJ | |
Waterside At Riverwell (Block E) Management Company Limited | 395 | Centennial Park Centennial Avenue, Elstree, Borehamwood, England, WD6 3TJ |
Wavendon Chase Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Wavendon View Residents Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Weaver Green Residents Management Company Limited | C/O Unit 7 Portal Business Park, Eaton Lane, Tarporley, United Kingdom, CW6 9DL | |
Weavers Meadow (Trowbridge) Management Company Limited | 1st Floor, 2540 The Quadrant Aztec West, Almondsbury, Bristol, United Kingdom, | |
| BS32 4AQ | ||
Wellfield Rise Residents Management Company Limited | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER | |
Wellington Gardens (Aldershot) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Wellington Grange (Pocklington) Management Limited | North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, United Kingdom, | |
| SY1 3BF | ||
West End Quarter (Folkestone) Management Company Limited | C/O Gateway Property Management Limited Gateway House, 10 Coopers Way, | |
| Southend-On-Sea, Essex, United Kingdom, SS2 5TE | ||
Westbrook Moorings Management Company Limited | 395 | Centennial Park Centennial Avenue, Elstree, Borehamwood, England, WD6 3TJ |
Westcombe Park (Heybridge) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Western Grange Residents Management Company Limited | Bellway Homes Limited Bellway House, Kings Park, Kingsway North, Gateshead, | |
| Tyne And Wear, United Kingdom, NE11 0JH | ||
Westland Place (Rainham) Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Westland Place Management Company Limited | C/O 30 Tower View, Kings Hill, West Malling, Kent, United Kingdom, ME19 4UY | |
Westminster Road Management Company Limited | One Eleven, Edmund Street, Birmingham, B3 2HJ | |
Wharf Farm (Rugby) Residents Management Company Limited | Unit 7 Portal Business Park, Eaton Lane, Tarporley, United Kingdom, CW6 9DL* | |
Whitehill Gardens Residential Management Company Limited | C/O Mlm Property Management 2nd Floor, Premiere House, Elstree Way, Borehamwood, | |
| United Kingdom, WD6 1JH | ||
Whitehouse Park Residents Management Company Limited | C/O Trinity (Estates) Property Management Limited Vantage Point, 23 Mark Road, | |
| Hemel Hempstead, United Kingdom, HP2 7DN | ||
Whitworth View Residents Management Company Limited | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER | |
Wickfields (Longwick) Management Company Limited | Sutherland House, 1759 London Road, Leigh On Sea, Essex, United Kingdom, SS9 2RZ | |
Wildflower Meadow Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN | |
Willow Park (Halstead) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Willow Rise Management Company Limited | Bellway Homes Limited (East Midlands) Romulus Court, Meridian East, Leicester, | |
| United Kingdom, LE19 1YG | ||
Windgreen Gardens Management Company Limited | Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY | |
Wolds View Residents Management Company Limited | North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England, | |
| SY1 3BF | ||
Woodcroft Park Management Company Limited | Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR | |
Woodgreen (Blyth) Residents Management Company Limited | Cheviot House, Beaminster Way East, Newcastle Upon Tyne, Tyne And Wear, England, | |
| NE3 2ER | ||
Yellowfields Phase 3B Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, United Kingdom, HP2 7DN | |
Yew Tree Gardens (Cholsey) Management Company Limited | Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom, | |
| HP2 7DN | ||
Yew Tree Park Management Company Limited | Cumberland Court, 80 Mount Street, Nottingham, United Kingdom, NG1 6HH | |
Notes to the Financial Statements continued
27. Resident management companies continued
Accounts
216 Bellway p.l.c. Annual Report and Accounts 2024
Other information
28. Alternative performance measures
Bellway uses a variety of alternative performance measures (‘APMs’) which, although financial measures of either historical or
future performance, financial position or cash flows, are not defined or specified by IFRSs. The Directors use a combination of
APMs and IFRS measures when reviewing the performance, position and cash of the Group.
The APMs used by the Group are defined below:
• Underlying gross profit and underlying operating profit – Both of these measures are stated before net legacy building
safety expense and exceptional items, and are reconciled to total gross profit and total operating profit on the face of the
consolidated income statement. The Directors consider that the removal of the net legacy building safety expense and
exceptional items provides a better understanding of the underlying performance of the Group.
• Underlying gross margin – This is gross profit before net legacy building safety expense and exceptional items, divided by
total revenue. The Directors consider this to be an important indicator of the underlying trading performance of the Group.
• Underlying administrative expenses as a percentage of revenue – This is calculated as the administrative expenses before
any directly attributable administrative expenses relating to the net legacy building safety expense and exceptional items
divided by total revenue. The Directors consider this to be an important indicator of how efficiently the Group is managing its
administrative overhead base.
• Administrative expenses as a percentage of revenue – This is calculated as the total administrative expenses divided by total
revenue. The Directors consider this to be an important indicator of how efficiently the Group is managing its administrative
overhead base.
• Underlying operating margin – This is operating profit before net legacy building safety expense and exceptional items
divided by total revenue. The Directors consider this to be an important indicator of the operating performance of the Group.
• Net underlying finance expense – This is the net finance expense before any directly attributable finance expense or
finance income relating to the net legacy building safety expense and exceptional items. The Directors consider this to be an
important measure when assessing whether the Group is using the most cost effective source of finance.
• Net finance expense – This is finance expenses less finance income. The Directors consider this to be an important measure
when assessing whether the Group is using the most cost effective source of finance.
• Underlying profit before taxation – This is the profit before taxation before net legacy building safety expense and
exceptional items. The Directors consider this to be an important indicator of the profitability of the Group before taxation.
• Underlying profit for the year – This is the profit for the year before net legacy building safety expense and exceptional items.
The Directors consider this to be an important indicator of the profitability of the Group.
• Underlying earnings per share – This is calculated as underlying profit for the year divided by the weighted average number
of ordinary shares in issue during the year (excluding the weighted average number of ordinary shares held by the Company
or Trust which are treated as cancelled). This is calculated in note 5.
• Underlying dividend cover – This is calculated as underlying profit for the year per ordinary share divided by the dividend
per ordinary share relating to that period. At the half year the dividend per ordinary share is the proposed interim ordinary
dividend, and for the full year it is the interim dividend paid plus the proposed final dividend. The Directors consider this an
important indicator of the proportion of underlying earnings paid to shareholders and reinvested in the business.
• Dividend cover – This is calculated as earnings per ordinary share for the period divided by the dividend per ordinary share
relating to that period. At the half year the dividend per ordinary share is the proposed interim ordinary dividend, and for the
full year it is the interim dividend paid plus the proposed final dividend. The Directors consider this an important indicator of
the proportion of earnings paid to shareholders and reinvested in the business.
• Capital invested in land, net of land creditors, and work-in-progress – This is calculated as shown in the table below.
The Directors consider this as an indicator of the net investment by the Group in the period to achieve future growth.
| 2024 | 2023 | Mvt | 2023 | 2022 | Mvt | |
| Per balance sheet | £m | £m | £m | £m | £m | £m |
Land | 2,431.4 | 2,578.8 | (147.4) | 2,578.8 | 2,786.4 | (207.6) |
Work-in-progress | 2,123.9 | 1,861.6 | 262.3 | 1,861.6 | 1,524.8 | 336.8 |
| Increase in capital invested in land | ||||||
| and work-in-progress in the year | 114.9 | 129.2 | ||||
Land creditors | (225.3) | (368.8) | 143.5 | (368.8) | (393.4) | 24.6 |
Increase in capital invested in land, net of land creditors, and work-in- progress in the year | 258.4 | 153.8 |
217Bellway p.l.c. Annual Report and Accounts 2024
Accounts
28. Alternative performance measures continued
• Net asset value per ordinary share (‘NAV’) – This is calculated as total net assets divided by the number of ordinary shares in
issue at the end of each period (see note 18). The Directors consider this to be a proxy when reviewing whether value, on a
share by share basis, has increased or decreased in the period.
• Capital employed – Capital employed is defined as the total of equity and net debt. Equity is not adjusted where the Group has
net cash. The Directors consider this to be an important indicator of the operating efficiency and performance of the Group.
• Underlying return on capital employed (‘underlying RoCE’) – This is calculated as operating profit before net legacy building
safety expense and exceptional items divided by the average capital employed. Average capital employed is calculated
based on opening, half year and closing capital employed. The calculation is shown in the table below. The Directors
consider this to be an important indicator of whether the Group is achieving a sufficient return on its investments.
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
| Capital | Land | Capital | Capital | Land | Capital | |
| employed | creditors | employed | employed | creditors | employed | |
| including land | including land | |||||
| creditors | creditors | |||||
| £m | £m | £m | £m | £m | £m | |
Underlying operating profit | 238.1 | 238.1 | 543.9 | 543.9 | ||
| Capital employed/land creditors: | ||||||
Opening | 3,461.6 | 368.8 | 3,830.4 | 3,367.8 | 393.4 | 3,761.2 |
Half year | 3,434.2 | 238.5 | 3,672.7 | 3,481.4 | 372.4 | 3,853.8 |
Closing | 3,475.9 | 225.3 | 3,701.2 | 3,461.6 | 368.8 | 3,830.4 |
| Average | 3,457.2 | 277.5 | 3,734.7 | 3,436.9 | 378.2 | 3,815.1 |
Underlying return on capital employed | 6.9% | 6.4% | 15.8% | 14.3% |
• Return on capital employed (‘RoCE’) – This is calculated as operating profit divided by the average capital employed.
Average capital employed is calculated based on opening, half year and closing capital employed. The calculation is shown
in the table below. The Directors consider this to be an important indicator of whether the Group is achieving a sufficient
return on its investments.
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
| Capital | Land | Capital | Capital | Land | Capital | |
| employed | creditors | employed | employed | creditors | employed | |
| including land | including land | |||||
| creditors | creditors | |||||
| £m | £m | £m | £m | £m | £m | |
Operating profit | 212.8 | 212.8 | 505.3 | 505.3 | ||
| Capital employed/land creditors: | ||||||
Opening | 3,461.6 | 368.8 | 3,830.4 | 3,367.8 | 393.4 | 3,761.2 |
Half year | 3,434.2 | 238.5 | 3,672.7 | 3,481.4 | 372.4 | 3,853.8 |
Closing | 3,475.9 | 225.3 | 3,701.2 | 3,461.6 | 368.8 | 3,830.4 |
| Average | 3,457.2 | 277.5 | 3,734.7 | 3,436.9 | 378.2 | 3,815.1 |
Return on capital employed | 6.2% | 5.7% | 14.7% | 13.2% |
• Asset turn – Asset turn is calculated as revenue divided by the average capital employed. Average capital employed is
calculated based on opening, half year and closing capital employed. The Directors consider this to be an important indicator
of how efficiently the Group is using its assets to generate revenue.
Notes to the Financial Statements continued
Accounts
218 Bellway p.l.c. Annual Report and Accounts 2024
28. Alternative performance measures continued
• Underlying post tax return on equity – This is calculated as profit for the year before net legacy building safety expense and
exceptional items, divided by the average of the opening, half year and closing net assets. The Directors consider this to be a
good indicator of the operating efficiency of the Group.
| 2024 | 2023 | |
| £m | £m | |
Underlying profit for the year | 160.6 | 402.2 |
| Net assets: | ||
Opening | 3,461.6 | 3,367.8 |
Half year | 3,434.2 | 3,481.4 |
Closing | 3,465.4 | 3,461.6 |
Average | 3,453.7 | 3,436.9 |
Underlying post tax return on equity | 4.7% | 11.7% |
• Post tax return on equity – This is calculated as profit for the year divided by the average of the opening, half year and closing
net assets. The Directors consider this to be a good indicator of the operating efficiency of the Group.
| 2024 | 2023 | |
| £m | £m | |
Profit for the year | 130.5 | 365.0 |
| Net assets: | ||
Opening | 3,461.6 | 3,367.8 |
Half year | 3,434.2 | 3,481.4 |
Closing | 3,465.4 | 3,461.6 |
Average | 3,453.7 | 3,436.9 |
Post tax return on equity | 3.8% | 10.6% |
• Total growth in value per ordinary share – The Directors use this as a proxy for the increase in shareholder value since
31 July 2021. A period of 3 years is used to reflect medium-term growth.
| Net asset value per ordinary share: | ||
At 31 July 2024 | 2,913p | |
At 31 July 2021 | 2,664p | |
Net asset value growth per ordinary share | 249p | |
| Dividend paid per ordinary share: | ||
Year ended 31 July 2024 | 111.0p | |
Year ended 31 July 2023 | 140.0p | |
Year ended 31 July 2022 | 127.5p | |
Cumulative dividends paid per ordinary share | 378.5p | |
Total growth in value per ordinary share | 627.5p |
219Bellway p.l.c. Annual Report and Accounts 2024
Accounts
28. Alternative performance measures continued
• Annualised accounting return in NAV and dividends paid since 31 July 2021 – This is calculated as the annualised increase
in net asset value per ordinary share plus cumulative ordinary dividends paid per ordinary share since 31 July 2021 (as detailed
above) divided by the net asset value per ordinary share at 31 July 2021. The Directors use this as a proxy for the increase in
shareholder value since 31 July 2021.
Net asset value growth per ordinary share | 249p | ||
Cumulative dividends paid per ordinary share | 378.5p | ||
Total growth in value per ordinary share | 627.5p | ||
Net asset value per ordinary share at 31 July 2021 | 2,664p | ||
Total value per ordinary share | 3,291.5p | ||
3,291.5 | ^(1/3) –1 | ||
| Annualised accounting return = | 2,664 | 7.3% |
• Annualised accounting return in NAV and dividends paid since 31 July 2014 – This is calculated as the annualised increase in
net asset value per ordinary share plus cumulative ordinary dividends paid per ordinary share since 31 July 2014 divided by the
net asset value per ordinary share at 31 July 2014. The Directors use this as a proxy for the increase in shareholder value since
31 July 2014.
| Net asset value per ordinary share: | ||||
At 31 July 2024 | 2,913p | |||
At 31 July 2014 | 1,118p | |||
Net asset value growth per ordinary share | 1,795p | |||
| Dividend paid per ordinary share: | ||||
Year ended 31 July 2024 | 111.0p | |||
Year ended 31 July 2023 | 140.0p | |||
Year ended 31 July 2022 | 127.5p | |||
Year ended 31 July 2021 | 85.0p | |||
Year ended 31 July 2020 | 100.0p | |||
Year ended 31 July 2019 | 145.4p | |||
Year ended 31 July 2018 | 132.5p | |||
Year ended 31 July 2017 | 111.5p | |||
Year ended 31 July 2016 | 86.0p | |||
Year ended 31 July 2015 | 61.0p | |||
Cumulative dividends paid per ordinary share | 1,099.9p | |||
Total growth in value per ordinary share | 2,894.9p | |||
Net asset value per ordinary share at 31 July 2014 | 1,118p | |||
Total value per ordinary share | 4,012.9p | |||
4,012.9 | ^(1/10) –1 | |||
| Annualised accounting return = | 1,118.0 | 13.6% |
• Underlying capital growth in the period – This is calculated as capital growth in the period before net legacy building safety
expense and exceptional items per share.
Capital growth in the period | 153.0p | |
Net legacy building safety expense and exceptional items per share | 25.3p | |
Underlying capital growth in the period | 178.3p | |
Net asset value at 31 July 2023 | 2,871p | |
178.3p | ||
| Underlying capital growth | 2,871p | 6.2% |
Notes to the Financial Statements continued
Accounts
220 Bellway p.l.c. Annual Report and Accounts 2024
28. Alternative performance measures continued
Capital growth in the period – This is calculated as the increase in NAV in the period combined with the ordinary dividend
paid in the year.
| Net asset value per ordinary share: | ||
At 31 July 2024 | 2,913p | |
At 31 July 2023 | 2,871p | |
Net asset value growth per ordinary share | 42p | |
| Dividend paid per ordinary share: | ||
Year ended 31 July 2024 | 111.0p | |
Capital growth in the period | 153.0p |
• Net cash/(debt) – This is the cash and cash equivalents less bank debt and fixed rate sterling USPP notes. Net cash/(debt)
does not include lease liabilities, which are reported within trade and other payables on the balance sheet. The Directors
consider this to be a good indicator of the financing position of the Group. This is reconciled in note 15.
• Average net cash/(debt) – This is calculated by averaging the net cash/(debt) position at 1 August and each month end
during the year. The Directors consider this to be a good indicator of the financing position of the Group throughout the year.
• Cash generated from operations before investment in land, net of land creditors, and work-in-progress – This is calculated
as shown in the table below. The Directors consider this as an indicator of whether the Group is generating cash before
investing in land and work-in-progress to achieve future growth.
| 2024 | 2023 | |
| £m | £m | |
Cash (utilised in)/from operations | (20.2) | 372.9 |
| Add: increase in capital invested in land, net of land creditors, and work-in-progress | ||
(asdescribedabove) | 258.4 | 153.8 |
Cash generated from operations before investment in land, net of land creditors, and work-in-progress | 238.2 | 526.7 |
• Adjusted gearing – This is calculated as the total of net cash/(debt) and land creditors divided by total equity. The Directors
believe that land creditors are a source of long-term finance so this provides an alternative indicator of the financial stability of
the Group.
• Gearing – This is calculated as net debt divided by total equity. The Directors consider this to be a good indicator of the
financial stability of the Group.
• Order book – This is calculated as the total expected sales value of current reservations that have not legally completed.
The Directors consider this to be an important indicator of the likely future operating performance of the Group.
29. Post balance sheet events
Post year end, the Group entered into both a lease agreement for an industrial unit where Bellway will set up its own timber
frame manufacturing facility and placed an order for robotic equipment which has the capability to manufacture both open
panel systems and pre-insulated closed panel timber frame systems. This has increased capital commitments by around £20m.
221Bellway p.l.c. Annual Report and Accounts 2024
Accounts
2020
£m
2021
£m
2022
£m
2023
£m
2024
£m
Income statement
Revenue 2,225.4 3,122.5 3,536.8 3,406.6 2,380.2
Operating profit 321.7
3
531.5
3
653.2
3
543.9
3
238.1
3
Net finance expenses (13.4) (11.1) (12.1)
3
(9.9)
3
(9.7)
3
Share of results of joint ventures 1.0 10.4 9.3 (1.4) (2.3)
Profit before taxation 309.3
3
530.8
3
650.4
3
532.6
3
226.1
3
Income tax expense (57.6)
3
(98.1)
3
(131.9)
3
(130.4)
3
(65.5)
3
Profit for the year 251.7
3
432.7
3
518.5
3
402.2
3
160.6
3
Balance sheet
ASSETS
Non-current assets 99.3 102.1 71.6 79.4 88.6
Current assets 3,984.3 4,574.7 4,913.5 5,034.7 4,911.1
LIABILITIES
Non-current liabilities (133.8) (316.9) (646.3) (647.0) (600.8)
Current liabilities (955.8) (1,072.1) (971.0) (1,005.5) (933.5)
EQUITY
Total equity 2,994.0 3,287.8 3,367.8 3,461.6 3,465.4
Statistics
Number of homes sold 7,522 10,138 11,198 10,945 7,654
Average price of new homes £293.1k £306.5k £314.4k £310.3k £307.9k
Underlying gross margin
2
19.0%
3
20.9%
3
22.3%
3
20.2%
3
16.0%
3
Gross margin 15.7% 19.2% 12.5% 19.0% 15.2%
Underlying operating margin
2
14.5%
3
17.0%
3
18.5%
3
16.0%
3
10.0%
3
Operating margin 11.2% 15.4% 8.7% 14.8% 8.9%
Basic earnings per ordinary share 156.6p 316.9p 196.9p 297.7p 109.8p
Total dividend per ordinary share 50.0p 117.5p 140.0p 140.0p 54.0p
Underlying return on capital employed
2
10.8%
3
16.9%
3
19.4%
3
15.8%
3
6.9%
3
Return on capital employed
2
8.3% 15.2% 9.2% 14.7% 6.2%
Gearing
2
– – – – 0.3%
Net asset value per ordinary share
2
2,427p 2,664p 2,727p 2,871p 2,913p
Land portfolio – plots with implementable DPP 28,289 30,933 32,344 32,229 30,787
Weighted average number of ordinary shares 123,205,211 123,306,035 123,227,544 122,593,350 118,830,821
Number of ordinary shares in issue at end of year 123,345,834 123,396,422 123,486,260 120,558,573 118,980,237
Notes:
2 Alternative performance measures (note 28)
3 Stated before net legacy building safety expense and exceptional items.
* All attributable to equity holders of the parent.
Five Year Record
Accounts
222 Bellway p.l.c. Annual Report and Accounts 2024
Other
Information
Glossary 224
Advisers and Company Secretary 226
Shareholder Analysis
and Financial Calendar
227
223Bellway p.l.c. Annual Report and Accounts 2024
Other Information
Glossary
Affordable Housing
Social rented and intermediate housing provided to specified
eligible households whose needs are not met by the market,
at a cost low enough for them to afford, determined with
regard to local incomes and local house prices. It is generally
provided by councils and not-for-profit organisations such as
housing associations.
Average Selling Price
Calculated by dividing the total housing revenue by the
number of homes sold.
Biodiversity Net Gain (‘BNG’)
Is an approach to development and land management, that
aims to leave the natural environment in a measurably better
state than it was beforehand.
Brownfield
Land which has been previously used for other purposes.
Cancellation Rate
The rate at which customers withdraw from a house purchase
after paying the reservation fee, but before contracts are
exchanged, usually due to difficulties in obtaining mortgage
finance. Reservation fees are refunded in accordance with the
Consumer Code for Home Builders.
Community Infrastructure Levy (CIL)
The CIL is a tool for local authorities in England and Wales
to help deliver infrastructure to support the development of
the area.
DEFRA
Department for Environment, Food and Rural Affairs.
Earnings per Share (EPS)
Profit attributable to ordinary equity shareholders divided by
the weighted average number of ordinary shares in issue
during the financial year, excluding the weighted average
number of ordinary shares held by the Company or the Trust,
which are treated as cancelled.
Energy Savings Opportunity Scheme (ESOS)
The ESOS is a mandatory energy assessment scheme for
large organisations in the UK.
Executive Board
The Executive Board is made up of the Executive Directors of
Bellway p.l.c.
Greenhouse Gas (GHG)
GHGs are gases that contribute to the greenhouse effect
by absorbing infrared radiation. Carbon dioxide and
chlorofluorocarbons are examples of greenhouse gases.
Home Builders’ Federation (HBF)
The HBF is an industry body representing the homebuilding
industry in England and Wales. It represents member interests
on a national and Regional level to create the best possible
environment in which to deliver new homes.
Land Bank
The land bank is comprised of three tiers: i) owned or
unconditionally contracted land with an implementable
detailed planning permission (‘DPP’); ii) medium-term
‘pipeline’ land owned or controlled by the Group,
pending an implementable DPP; iii) strategic long-term
plots which are typically held under option or through a
promotion agreement.
Legacy Building Safety Improvements Provision
Included within this provision, there are two components (i)
SRT and associated review, and (ii) Structural defects provision.
MHCLG
Ministry of Housing, Communities and Local Government.
Mortgage Market Review (MMR)
The MMR was a comprehensive review of the mortgage
market which introduced reforms to deliver a mortgage
market that is sustainable and works better for consumers.
National Planning Policy Framework (NPPF)
The NPPF sets out the government’s planning policies for
England and how these are expected to be applied.
It provides a framework within which local people and their
accountable councils can produce their own distinctive
local and neighbourhood plans, which reflect the needs and
priorities of their communities.
National House Building Council (NHBC)
The NHBC is the leading warranty insurance provider and
body responsible for setting standards of construction for UK
housebuilding for new and newly converted homes.
Net Legacy Building Safety Expense
This contains the income statement movements in relation to
the legacy building safety improvements provision and any
associated reimbursement assets.
New Homes Bonus (NHB)
The NHB was introduced in 2011 by the coalition government
with the aim of encouraging local authorities in England to
grant planning permissions for the building of new houses
in return for additional revenue. Under the scheme, the
government has been matching the council tax raised on
each new home built in England.
New Homes Ombudsman Service (NHOS)
Has been introduced with the aim to provide dispute
resolution for, and determine complaints by, buyers of new
build homes.
New Homes Quality Board (NHQB)
An independent not-for-profit body which was established
for the purpose of developing a new framework to oversee
reforms in the build quality of new homes and the customer
service provided by developers.
New Homes Quality Code (NHQC)
An industry code of practice that lays out a mandatory set of
requirements which must be adopted and observed by all
registered developers.
Other Information
224 Bellway p.l.c. Annual Report and Accounts 2024
Social Housing
Housing that is let at low rents and on a secure basis to
people in housing need. It is generally provided by councils
and not-for-profit organisations such as housing associations.
Strategic Land Holdings
These are plots which are typically held under option or
through a promotion agreement.
Sustainability Accounting Standards Board (SASB)
SASB have developed a set of industry standards which
identify the minimal set of financially material sustainability
topics and their associated metrics for the typical company in
an industry to report against.
Task Force on Climate Related Financial
Disclosures (TCFD)
TCFD was created by the Financial Stability Board to develop
consistent climate-related financial risk disclosures.
Total Shareholder Return (TSR)
The total return of a stock to an investor, or the capital gain
plus dividends.
The 5% Club
Members of The 5% Club aspire to achieve 5% of their
workforce in ‘earn and learn’ positions (including apprentices,
sponsored students and graduates on formalised training
schemes) within 5 years of joining.
Underlying
Throughout the Annual Report and Accounts, underlying
refers to any statutory performance measure or alternative
performance measure which is before net legacy building
safety expenses and exceptional items. The Group believes
that underlying metrics are useful for investors as these
measures are closely monitored by the Directors in assessing
Bellway’s operating performance, thereby allowing investors
to understand and evaluate performance on the same basis
as management.
See also Alternative Performance Measures section on pages
217 to 221.
United Nations Sustainable Development Goals
(SDGs)
The SDGs are a collection of 17 interlinked global goals
designed to be a ‘shared blueprint for peace and prosperity
for people and the plant, now and into the future’.
Pipeline
Plots which are either owned or contracted by the Group,
pending an implementable detailed planning permission,
with development generally expected to commence within
the next three years.
Planning Permission
Usually granted by the local planning authority, this
permission allows a plot of land to be built on, change its use
or for an existing building to be redeveloped or altered.
Permission is either ‘outline’ when detailed plans are still
to be approved, or ‘detailed’ when detailed plans have
been approved.
Residential Property Developer Tax (RPDT)
RPDT is a tax, introduced in April 2022, which is charged at
a rate of 4% on certain profits of companies carrying out
residential property development.
REGO
Renewable Energy Guarantees of Origin.
RIDDOR
RIDDOR refers to the Reporting of Injuries, Diseases and
Dangerous Occurrences Regulations 2013. The regulations
require an employer to report any absence by an employee
of seven days or more caused by an accident at work to the
Health and Safety Executive.
Science Based Target initiative (SBTi)
Science-based targets provide companies and financial
institutions with a clearly defined pathway to future-proof
growth by specifying how much and how quickly they need
to reduce their greenhouse gas emissions.
Section 75 and Section 106 Planning Agreements
These are legally binding agreements or planning obligations
entered into between a landowner and a local planning
authority, under Section 75 of the Town and Country
Planning (Scotland) Act 1997 or Section 106 of the Town and
Country Planning Act 1990. These agreements are a way of
delivering or addressing matters that are necessary to make
a development acceptable in planning terms. They are
increasingly used to support the provision of services and
infrastructure, such as highways, recreational facilities,
education, health and affordable housing. Self-Remediation
Terms (SRT).
Is a commitment to remediate buildings over 11 metres in
height with identified life critical fire safety issues, which were
constructed in England and Wales since 5 April 1992.
Self-Remediation Terms (SRT)
Is a commitment to remediate buildings over 11 metres in
height with identified life control fire safety issues, which were
constructed in England since 5 April 1992.
Site/Phase
A site is a concise area of land on which homes are being
constructed. Larger sites may be divided into a number of
phases which are developed at different times.
225Bellway p.l.c. Annual Report and Accounts 2024
Other Information
Advisers and Company Secretary
Company Secretary and Registered Office
Simon Scougall
Bellway p.l.c.
Registered number 1372603
Registrars, Transfer Office and
ShareholderQueries
Link Group
Central Square
29 Wellington Street
Leeds
LS1 4DL
E-mail: enquiries@linkgroup.co.uk
Tel +44 (0) 371 664 0300 Calls are charged at the standard
geographic rate and will vary by provider. Calls outside the
United Kingdom are charged at the applicable international rate.
Lines are open 9.00am – 5.30pm Monday to Friday excluding
bank holidays in England and Wales
Financial Adviser
Citigroup Global Markets Limited
Stockbrokers
Citigroup Global Markets Limited
Numis Securities Limited
Bankers
Barclays Bank PLC
HSBC Holdings plc
Lloyds Banking Group plc
National Westminster Bank plc
Santander UK plc
Svenska Handelsbanken AB
Auditor
Ernst & Young LLP
Solicitor
Slaughter and May
Other Information
226 Bellway p.l.c. Annual Report and Accounts 2024
Shareholder Analysis and Financial Calendar
Financial Calendar
Shareholders by size of holding at 31 July 2024 Holdings Shares
Number % Holding %
0 – 2,000 1,487 68 779,970 1
2,001 – 10,000 324 15 1,428,247 1
10,001 – 50,000 155 7 3,798,476 3
50,001 and over 225 10 112,973,544 95
Total 2,191 100 118,980,237 100
Shareholders by type at 31 July 2024 Holdings Shares
Number % Holding %
Private shareholders 1,508 69 2,698,462 2
Investment trusts 8 <1 641 <1
Deceased accounts 22 1 49,061 <1
Nominee companies 569 26 100,417,465 84
Limited companies 36 2 125,993 <1
Bank and bank nominees 20 1 14,382,333 12
Other institutions 28 1 1,306,282 1
Total 2,191 100 118,980,237 100
Final 2023/24 dividend – ex-dividend date 28 November 2024
Final 2023/24 dividend – record date 29 November 2024
AGM 12 December 2024
DRIP election date for final 2023/24 dividend 13 December 2024
Final 2023/24 dividend – payment date 08 January 2025
Trading update 12 February 2025
Announcement of 2024/25 interim results 25 March 2025
227Bellway p.l.c. Annual Report and Accounts 2024
Other Information
Notes
228 Bellway p.l.c. Annual Report and Accounts 2024
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Bellway p.l.c.
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Tel: (0191) 217 0717
www.bellwayplc.co.uk