Bellway’s Shares Surge After Company Boosts Dividend by 40%by
Bellway Plc rose the most in almost eight weeks after the company increased its dividend and reported higher full-year earnings.
The U.K. homebuilder gained as much as 5.6 percent to 2,376 pence a share, the most since Aug. 23. The shares were up 2.2 percent at 8:39 a.m. in London trading.
The Newcastle Upon Tyne-based company is increasing its dividend by 40 percent to 108 pence after pretax profits jumped to 497.9 million pounds ($610 million) from 354.2 million pounds a year earlier. Demand for new homes remained “robust” in the financial year with average reservations rising more than 10 percent a week from a year earlier.
“The long-term outlook continues to be positive, supported by strong customer demand, a substantial forward order book and favorable trading conditions across all areas of the country where Bellway operates,” Chairman John Watson said in the statement, “Whilst there is some uncertainty following the result of the EU referendum, trading since that date has remained resilient.”
Bellway sold 8,721 homes in the full year compared with 7,752 a year earlier. The average selling price increased to 252,800 pounds from about 223,800 pounds.