Bellway

INTRODUCTION

Formed in 1946 by John Thomas Bell and his sons John and Russell Bellway Group is one of the largest house builders in the country with operations spanning the length and breadth of the United Kingdom.

It employs around 2446 employees and has build over 100,000 houses since it was formed. With the headquarters located in Newcastle Upon Thames it has over a dozen regional divisions. But the group is mainly divided into two divisions the north and the south group.

Key activities include: land acquisition, finance, planning, architecture, design, build management, marketing and customer service. The core business of the group is house building. Bellway homes are designed, built and marketed by local teams operating from regional offices managed and staffed by local people. This allows the company to stay close to its customers and to take key decisions about design, build, materials, planning and marketing in response to local and not national demands.

Though formed as a family owned business, the family involvement in the business was ceased after 1999 when the premature death of Kenneth bell and his son Ashley. The main personnel of the group are now Howard Dawe the chairman and John Watson the CEO of the company.

Financially the group has done very well; the revenue has increased by 9.19% from £1240.2 million in 2006 to £1354 million in 2007. The operating profit was £253.1 million.

The gross profit for the company increased by 6.7% from £292.3 million to £311.9 million in 2007. The profit before taxation of £234.8 million is a record high for the Group, improving by £14.1 million from £220.7 million, an increase of 6.4%.

FINANCIAL ANALYSIS

CURRENT YEARPREVIOUS YEAR%MOVEMENT

TURNOVER/REVENUE1354 m1240.2 m9.176 %OPERATING PROFIT BEFORE TAX AND INTEREST253.076 m

239.340 m5.74%

NET FINANCE COSTS

22.961 m21.339 m

7.6%

PROFIT FOR THE YEAR166.72 m155.742 m7.04 %TOTAL ANNUAL DIVIDEND PER...