These two ratios can be affected by ‘window dressing’ which involves manipulating the working capital position by accelerating or delaying transactions close to the accounting year-end to give improved figures. Therefore, it is important to assess the overall borrowing capacity of Bellway by evaluating its gearing ratios.
Gearing Ratio
Debt ratio, including short-term borrowings, was 20.59% in 2004 rising from 14.07% in 2000. This is slightly higher then Wilson Bowden meaning that Bellway have trouble paying its liabilities, especially when sales are low and cash is scarce such as in 2001 when cash-in-hand was significantly lower then in pervious years.
Debt-to-equity ratio has increased from 16.37% in 2000 to 25.92%, which indicates that Bellway has increased in debt finance. This is due to the low interest rate currently in the market and interest payment being cheaper then dividends. In 2004, £7,725,000 interest was paid while £29,864,000 was paid out as dividends. The debt finance was required by Bellway to finance their strategic landbank growth. This is corresponded in interest cover, which has fluctuated over the past five years in a re-occurring cycle of increase followed by a decrease. This is because Bellway borrowed money in one year to buy land, then paid off the debt in the next year then borrowed again, in a bid for continuous growth in operations. The ratio remains very high through the years, which indicates Bellway is easily able to meet its interest obligations from profits.
Bellway uses long-term debt to finance operation keeping equity issues stable. They also used small short-term finance in 2001, 2002 & 2004 to help recover short-term cash situations. These were mainly used for marketing purposes such as more showrooms and creating new divisions. By having stable equity issues Bellway is not diluting shareholder value.
Activity Ratios
In 2004 Bellway employed an average of 2020 people, 7% more than 2003, which helps strength labour strategy. An increase in fixed asset turnover between 2000 and 2004 has doubled; it has reduced fixed asset investment compared to its competitors.
Net asset turnover ratio has fallen from 1.89% in 2000 to 1.62% in 2004, and slightly peaked in 2003 to 1.71%.
Debtor days have slightly fluctuated over the 5-year period on the hold remained very low against Wilson Bowden. This demonstrates management are operating efficiently and debtors are being repaid on an average of about 5 days in the 5-year period, whilst creditors are being paid on an average of 36 days.
Creditor days slightly fluctuated over the 5-year period just lower than the industry low average and tend to be slightly less overall then Wilson. This suggests that they take more time paying their creditors than their competitors.
Profitability Ratio
Bellway has achieved year-on-year turnover growth. Return on equity in 2001 experienced slight erosion in maintaining operating capital, due to damp economical climate and large purchase of stock. However, they have shown a steady increase through the 5-year period, which is part of their strategy of producing higher returns for shareholders.
Bellway has offered high returns to its shareholders than Wilson Bowden in all the years but below the industry medium average.
Net profit margins have increased from 15.07% in 2000 to 19.52% in 2004 and compares favourably with the industry upper average of 16.74%. This demonstrates that the strategic reorganisation has worked well. The improvement in management has reflected in Bellway’s meeting ambitious but realistic growth targets in substantial turnover had increased and improved shareholder value.
Creative Accounting
‘Accounting For EPOS Trusts’ has increased Shareholders’ funds by £118.0 million to £675.1 million reflecting retained profits of £114.0 million, net movements of £2.2 million. These policies have decreased reserves by £2,160,000 in 2004. These policies have overall improved the return on equity ratio and will affect the profitability of the company.
Problems of Comparison
The financial statements and ratio analysis of the companies do not accurately portray their performance in the industry. Different policies and accounting method adopted by the company will subjectively influence the representation of the company. Therefore the comparison of the company itself over time and with another company is subjective to a bias outlook and may not demonstrate the true underling performance.
In an idealistic environment two companies that used exactly the same accounting policies would be ideal however this is not the case but Financial Reporting Standards do help in establishing boundaries and basis for sound accounting practices.
- Financial statements year-end date
The industry is affected by seasonal sales therefore companies can choose the best time to produce financial statements to show better results.
Seasonal adjustment shows that June is generally the strongest month for house prices and January is the weakest.
Bellway uses this knowledge to its advantage by having 31st July as it year-end while Wilson has 31st December.
Wilson turnover incorporates income received through commercial activity whilst Bellways do not but include rental income.
Method of depreciation will affect the net asset value, net profit and return on capital employed. Both companies have got different policies, which will impact the profit. If high levels of depreciation are charged it would reduce tax liabilities while low charges with increase profit.
Wilson has incorporated goodwill into there accounts which has resulted in an increase to there assets, while Bellway does not us any form of goodwill.
- Different financial and business risk profile
Companies have different capital structures so are exposed to different risk.
New Accounting Policies
1st January 2005 the introduction of international financial reporting standard (IFRS) is replacing the current accounting method Generally Accepted Accounting Principles. IFRS attempts to harmonise accounting practices internationally, forming greater transparency and comparability. It involves a new approach of financial reporting that puts the emphasis on ‘fair value’ accounting as opposed to historic cost.
The table displayed below demonstrate how the adoption of IFRS will affect Bellway accounts.
- Stock Market Analysis
Overall, Bellway has outperformed the FTSE All-Shares and FTSE 350 Construction & Building Material sector with similar price movement pattern as the sector. Both have encountered substantial growth in its share price, while the FTSE All-Shares has preserved its price over the period.
The graph demonstrates that the industry is affected by re-occurring business cycle that peaks around August and dips in February-March. House sale are higher in summer, when more buyers are in the market consequently companies are not required to discount prices so deeply, to attain a sale.
In January 2001, all the company’s share prices were predominately the same. During the next five years, they were a clear difference in movement emerging. Persimmon largest percentage increase followed by Bellway then Wilson Bowden.
Investment Ratios
EPS has doubled over the last five years to 134.60 compared to 118.41 by Persimmon’s. This is due to high levels of profit growth financed by debt and only issuing a small number of new issues.
P/E relative remained constant but in 2002 the market crashed which resulted in a fall in market share price. Bellway’s P/E ratio has increased from 5.6 to 6.4 but this is well below its competitors, suggesting poor growth prospects. Persimmon is perceived to have high growth prospect due to strategic acquisitions and recent acquiring of Westbury. Vast amount of acquisitions have driven the industry average.
The dividend yield has also fallen from 4.0 to 3.6 in 2005 but it fluctuated over the last five years. This indicates that the market believes Bellway future growth prospects have improved however, it is still higher then competitors which agrees with the P/E ratio that investor perceive Bellway to have less future growth then competitors as the industry average is 2.9, which means Bellway’s exposure to regeneration schemes and Pathfinder Project have not been recognised yet.
- Conclusion & Recommendations
Bellway’s has achieved its 14th consecutive year of organic growth in 2005 when many of its competitors have struggled in the current slow market.
Bellway has a national coverage across the UK, not being dependent or overexposed on any one market, least of all the inner London arena, from where it has largely exited and instead is focussing its activities on less highly priced, outer areas.
The impact of Bellway’s exposure to huge urban regeneration schemes and Pathfinder Project in the North has not been recognised yet.
The current state of the market will be the key issue for Bellway’s future prospect. Volume and margin outlook for the future is less positive.
There will be an increase in the number of sites, the trend in 2004 to 2005 will be continued and there would be a decrease in the number of units sold per site, which will slightly increase in actual volumes of sale in 2006. Therefore Bellway is unlikely to match 2005 volume growth, even though it has 50% of 2006 sales already reserved.
With increase pressure on margins in a slow market from the use of incentives and the growth in inflation cost predominantly from the labour market, Bellway will struggle to maintain its operating margin of 19.5% achieved in 2004.
A decline in operating profits will be partly compensated by lower interest charges.
Bellway’s PBT increase of 6% in 2005 is an achievement in a challenging year for the housing market. For there to be a consecutive steady incline in PBT a higher average selling price will be required to offset a potential cut in volume expectation.
The average selling price of a house was £161.4k in 2004, one of the lowest in the industry reflecting a focus towards the low to middle market segmentation where demand is stronger.
Bellways has demonstrated its ability to retain EBIT margin, which will be sustainable in the future given a continued successful land acquisition strategy. Bellway has a strong land bank, which should support long term volume expansion.
Strong strategy land bank and a steady stream of new divisions with nine out of the existing seventeen at sub-optimal levels puts the company in a firm position to continue this growth record, together with strong management team.
Bellway has proven itself capable of creating successful returns in both strong and weaker markets. Therefore I am confident that Bellway’s successful track record will continue into the future, I recommend current shareholder to hold on to shares and recommend prospect investors to buy.
Words = 3294 (Exclude Heading Titles)
Appendices
- PEST Analysis
POLITICAL
- Increase in annual house construction
The government are pushing for annual house construction to rise from 150,000 to 200,000 from 2006 to meet supply and demand.
- Increase in social housing
In Gordon Brown 2005 pre-budget speech he emphasised the need to ‘bridge the gap’ between the high demand for “houses young people can afford” and the supply of them.
- Change in stamp duty charge
The 2005 Budget has increased the threshold for stamp duty from £60,000 to £120,000. Therefore only one percentage stamp duty will be charged on any residential property between £120,000 and £250,000, making first time house purchase more affordable.
- More Brownfield development
Deputy Prime Minister John Prescott is asking local authorities to offer more brownfield sites for the construction of new housing to meet the demand.
- Taxing plan premised land
The government may introduce a new tax, Planning Gain Supplement; taxing any gains on land consequently of receiving planning permission. As the value of the land, increases once granted planning permission.
- Change in self-invested personal pensions
From April 2006 residential property will be allowed to be held in self-invested personal pensions.
Gordon Brown has initiated a new finance scheme to help first time house buyer. He has struck a deal with three leading mortgage lenders that will provide 75% of the property's value mortgages to first time buyers. The lender and the government will then equally split the remaining 25 %.
- Change in financial reporting
The introduction of new international financial reporting standard will change the current practices of accounting and will significant affects on illustration of profit.
- Restrictive Planning Permission
The government are establishing new legislation to protect green belt areas against sprawl.
-
Speeding up reviewing planning permission application
The Office of the Deputy Prime Minister introduced incentive funding to speed planning permission application for house builders. However the pressure for a quick decision is resulting in more applications being rejected.
- European Competition Policy
The European Community has designed rules to promote competition and restrict monopolized of the markets. Therefore the EC Merger Regulation will prohibit mergers and acquisitions that will cause a reduction in competition and result in an monopolised market.
- Creation of affordable houses
John Prescott produced plans to create new £60,000 houses on ex-NHS sites, buyers will only have to pay for the construction cost.
- The debate on joining the Euro
The debate still exists on joining the Euro. The government are contemplating weather the Euro will bring economic benefits to the United Kingdom.
By joining the Euro there would be a lower exchange rate in transactions costs for companies. The uncertainty of exchange rates would be reduced, removing the risks of unforeseen exchange rate revaluations or devaluation.
There would be lower interest rate then currently present in the United Kingdom, encouraging economic growth. However in a recession, the United Kingdom would not be able to stimulate its economy by devaluing its currency and increasing exports.
ECONOMIC
Adjustment to inflation rate will have a direct affect on determining house prices and will control the demand. Moderate inflation will result in economic growth, while high increase rate will consequently causes people to lose confidence in the economy and put their money in assets such as real estate.
Increase in raw material cost, results in productive capacity of the economy to be reduced which lead to GDP to fall as consumer are not capable of purchasing goods at the new highwe price.
There currently is a shortage of skilled labour for the housing construction industry, which is placing a constraint on the supply of house being built.
A new national minimum wage has come into effect since October 2005. For workers aged 22 and over the rate has raised from £4.85 to £5.05 and for 18 to 21 year olds there has been a raise from £4.10 to £4.25.
Land is becoming scarce especially in the South-East causing house prices to be significantly greater in these areas. Consequently there would be more people per acre through dense construction.
Low interest rate will increase demand for houses, which will result in house prices rising. While high interest rate will cause demand to fall back as the economy slows down, stabilising and decreasing house prices.
- Uncertainty within the manufacturing sector (Systematic risk)
A global slow down in the economy due to increasing in oil prices, raw material costs, terrorist activities and high value of the Sterling pound, generating uncertainty in the manufacturing sector.
With issues surrendering the pension crisis, consumers are seeking alternative form of investment for security, which is boosting the buy-to-let property market.
Employment rate has a direct affect on the economy, high levels of employment causes inflation to increase to create a balance in the economy. As high employment results in more money in the economy, therefore there would be a greater number of consumers spending.
- Exchange rate & stability of currency
High value of the Sterling will increases the real purchasing power when buying and importing goods from another country. A rise in the interest rate will lead to a rise in the value of Sterling against other currencies.
- Demand for affordable housing
The United Kingdom’s house building industry has grown considerably over the last few years, due to an intense demand for houses, which has forced house prices to increase.
GDP is a measure of the economy’s total production of goods and services. The growth of GDP from the table indicates the economy is slightly expanding, therefore it would provide more opportunities for companies to increase their sales.
Terrorist attacks would reduce consumer confidence, which could trigger a reduction in consumer spending that could lead the economy into recession.
The global economy impacts the national economy environment, which will affect an industry performance, as it is harder for companies to succeed in a contracting economy than in an expanding one.
If the economy is in a recession then confidence in the economy will be low and consumers will inclined to spend.
SOCIAL
- Increased life expectancy
Derived from better living conditions and advances in health care, people are living longer, therefore increasing life expectancy.
With an increase in life expectancy, elder people homes are becoming less commonly available for purchase.
Consumer optimism or pessimism, concerning the economy is an important determinant of economic performance. If consumers have confidence in their future income levels, their will be more willing to spend.
- Society demand for dwelling
As a result of demographically factors consumers demand for type of dwelling in the United Kingdom has changed in the last five year.
The table above highlights the change in demand from large ‘family’ originated detached house to the increase in smaller single flats.
The graph below demonstrates an increase trend in the number of people getting divorce in the United Kingdom, in conjunction with people getting married at a later age is resulting in single person households and smaller
In the United Kingdom British culture has created a preference for owner own dwelling rather than rental.
Demographic changes are trigging a rising pressure on housing demand, chiefly influenced by population growth
Social trends have produced a rising pressure on demand on housing, such as long-term increase single occupant households.
- Natural increase in population
There has been a natural increase in population; births are outnumbering the amount of deaths combined with increase movement in net migration into the United Kingdom.
The table above displays a slight increase population every year.
TECHNOLOGY
- Induction of e-conveyancing
The development of e-conveyancing is set improve the performance of transferring property. It enables land to be registered completely electronically.
The development of new construction technologies has affected the building industry work practices, more components are being constructed in factories than building sites.
E-commerce has created a global phenomenon, changing the way consumers shop. It allows 24 hour / 7 day shopping without geographical restrictions.
- Porter’s Five Forces
Industry Competitors
Rivalry in the private housing industry is quite high; this is largely due to the high demand for houses that has pushed house prices to high levels. Land is in scarce supply therefore is the critical factor in explaining competitive pressures in the house building industry. There are currently around 18,000 housebuilders registered by the National House Building Council (NHBC). The main players in the industry are Persimmon, George Wimpey, Barratt Developments PLC and Taylor Woodrow.
Baratt Plc is Bellways main rivalry as both companies derive majority of their profits from nationwide urban regeneration projects on brown field sites.
The market in the UK for private housing is fragmented, reflecting regional demands, with a large number of smaller construction firms.
There is little product differentiation among the competitors for private housing, so they have to compete in other area such as quality, price, brand loyalty, and location. In addition, the more successful companies have exhibited such characteristics as acquisitions and developing creative advertising campaign. Barrat and Beazer, have successfully employed new intensive advertising and sales techniques, which has enhanced their brand recognition and profile.
Buyers
The buyers have significant influence over the market, the market operates under supply and demand and they control the demand. In uncertainty market conditions internal rivalry causes price-cost margins to be lowed in order to compete for business of price-sensitive consumers.
House builders can create market power in local regions. By buying up large sites, they are able to charge “monopoly prices” for their output, establishing a reduction in competitive pressures in the industry due to the absence of competitor. Therefore once land has been acquired house builders will have little incentive to compete for consumers as most consumers would purchase from the same builder so to ‘brand loyalty’. The expectation of competition would lead developers to be more cautious in their bids for sites.
Individual developers can embody market power in local areas by creating certain type of house for a set of potential customers however; market power will only remain for a limited period.
As new house buyers make infrequent one-off house purchase, builders are not threatened by buyers taking their future business elsewhere. The absence of strong brands and lack of information about quality of work means consumers have limited and poor information especially buying off plan.
Suppliers
The astonishing rise in oil prices has triggered a rise in the cost of petroleum-based raw materials, such as asphalt shingles and vinyl. Builders are also experiencing an increase in the transportation of materials from manufacturing regions to building sites.
Land owner have a huge baring power over land supplies, as there is a scarce supply of land available for development. There may be future issue over the supply of wood due to concerns over natural resource and environmental concern over deforestation restricting the availability of it.
The uncertainty of the industry and economy encourages builders to structure their business activities around minimal fixed commitments for fear that a market downturn could hugely cause reduction in profits or result in bankruptcy. Therefore builder tend to use sub-contracting which may affect optimal operation being achieved and the availability of skills. Skilled labour wages are rising faster then the economy putting pressures on company’s profits.
Potential Barriers of Entrants
Barrier for entry for smaller regional companies is low considering the fragmented market, especially in the area where the presence of large development is not existent.
There is a low level of innovation in the industry, making it easy to enter the industry.
It is, however, very hard to enter the market where market players, such as Persimmons, have strong foothold.
There is a very high initial start up cost in development such as acquiring land and raw material resource. This would require large amount of finance over a lengthy period as profit would not be realised until development has been created and properties have been sold. Development expertise as well as capital market reputation would be required to obtain this finance.
Large players in the industry can take advantages of economies of scale. Therefore, they can afford to lower prices in hope to force competitors out of the market.
Barriers to entry into the market can be created by existing builders that have options and significant landbank, making scarce supply of land available for new competitors. Builders need a strong landbank that look ahead for future development as land is the critical factor affect the success of a builder. Options for land present a barrier to competition between builders for land.
Another barrier is the issue of the environmental impact that adds to the operating cost as the industry is facing a number of challenges on the environmental front.
With scarcity land available and stricter planning permission regulations, builders are going to difficult to obtain planning permission, especially builder that do not have an existing relationship with councils.
There is possibility that government new regulation to protect green belt areas against sprawl, can act as barrier of entry for new competitors.
New entrants will also need to establish brand identity to overcome the major player’s reputation and create consumer loyalty.
Substitutes
The price of new dwelling is dictated and controlled by the second hand dwelling. This is due to the second hand market being a close substitute, enforcing a constrain on the new dwelling market ability to raise prices. Dwelling price elasticity is affected by second hand house market and rental substitute, making demand more elastic since consumers have more alternatives. As market is highly competitive with many sellers, it results in individual sellers having little or no control over the market price.
New dwelling attract a price premium over second hand dwellings of the same type. This will encourage consumers to substitute buying a new house for a second hand house in a rising market making new house price unaffordable.
In rising markets, consumers may substitute buying a house with the option of renting; with the buy-to-let market booming, there are lots of houses available for renting.
Within the new housing market, consumers are switching to buy small individual dwelling as opposed to large detached properties.
- SWOT Analysis
STRENGTHS
- Diversified portfolio of products
Bellway has a diverse range of homes covering the full spectrum of the housing industry from small apartments to large detached luxury homes, providing a mix of homes for sale and rent, including special needs properties. It also provides financial assistance to its buyers. The company’s diversified product portfolio enables it to satisfy the demands of various customer segments.
Bellway build affordable houses, they average house price for 2004 was £161,400 one of the lowest in the industry, as the average price of the house in England & Wales was £187,971.
- Wide geographical coverage
Bellway’s has extensive geographical coverage within the United Kingdom, creating an excellent defence against the regional variances in the housing market and reducing the vulnerability of local price fluctuation impact.
Every year Bellway has increased the amount of land it acquires. During 2004 the Bellway acquired 35% more land than it sold, thereby increasing the size and quality of the land bank.
Bellway’s profit growths is due to the company’s exisiting operation opposed to through mergers, acquisitions and take-overs.
WEAKNESS
- Reliance on volume growth in a tight market
Bellway rely on volume sale of houses to create a profit, in uncertainty market, which has seen several increases in interest rates.
- Only focuses on private market.
Bellway’s only focuses on the private industry therefore it is more prone and exposed to firm-specific risk. By operating in two market segmentation such as commercial property, it diversified it risks and be less expose.
Regional divisions can opt out of national purchasing deals thus Bellway may not always mobilise its full purchasing power. Therefore Bellway may fail to benefit from economies of scale.
OPPORTUNITIES
- Integrating technology in the home
In difficult house market conditions, Bellway’s can attempt to lure consumers back into the market by integrating technology in the houses. The house will have hi-tech features either as standard or as an optional extra.
- Buy to let market boosted by pensions fears
With issues surrendering the pension crisis, consumers are seeking alternative form of investment for security, which is boosting the buy-to-let property market. Therefore this would boost demand for Bellway high quality cheap housing.
THREATS
- Consolidation in the homebuilding industry
Bellway’s growth and results of operations could be negatively affected by the consolidation taking place in some of its markets. Bellway’s operations in markets undergoing consolidation exposes it to the risk of loss of business and market share due to consolidation.
The construction industry is currently facing a shortage of skilled labour that will result in a constraint on supply.
- Increasing raw material costs
Inflation rate rises combined with weak exchnage rate will cause the power of purchase to depricate. Therefore importing costs of raw material will be high as the vaule of the Sterling is lower against the other currnecies.
decrease the cost of purchasing raw material increase and the importing price increases as the value of the Sterling is lower against the other currnecies.
With raw materials cost increasing, the productive capacity of the economy is reduced. House price rises making it more diffcult for consumers to purchase.
Rising mortgage rates are expected to reduce demand and profits for Bellway. An increase in interest rates would increase monthly mortgage costs for its potential homebuyers and could therefore reduce demand for its homes and mortgages.
- Market Segmentation
The industry is going to be driven by demand; however the type of demand is going to be very diverse. It is crucial to identify what the demand is going to be for.
Market Segmentation for dwelling is based on socio-economic characteristics for demand of a specific property, based on consumer’s financial circumstances.
- Financial Trends
The figures have been adjusted to the production index.
- Segmentation Analysis
- Financial Ratios
Liquidity Ratios
Gearing Ratios
Asset utilization ratio
Operating Ratios
Investment Ratios
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Financial Times News Paper (17/11/05) interpretation on the number of companies operating in Construction and building material industry is going to be used.
The FTSE Actuaries 350 is a combination of the FTSE 100 and the FTSE 250 and uses the Standard Industry Classification Code to group the industry. The Construction and building material industry is element within the Basic Industries.
The graph was created from Digital Look, Sector:
Based on December 2005 Company Ref information.
Crosland Jonas (9/12/2005), Mixed message for housebuilders
Milner Mark & Jones Rupert (6/12/2005), Measures aim for 200,000 new homes per year
Mintel (11/2005) House Building (Industrial Report) – UK
Based on the Public Interest Theory, this purports that regulation is supplied to protect the public as a result of inefficient markets.
Mintel (11/2005) House Building (Industrial Report) – UK
Housebuilder Magazine – Management Structure, Power Conductor November 2005
Bellway Plc – Company Vision statement
Bellway Annual Report 2003, Chairman Executive’s Operating Review - Page 9
A firm organisation is legitimate when its value is perceived as being congruent with the value system of the larger social system of which the entity is a part. Failure to consider community expectations and changes therein are expected to lead to negative implications for an firm with an extreme result being that the firm will driven out of business. (Linblom 1994)
Figures adjusted to the index of production, the full table are in the Appendix 5
The Price was taken from Bellway Annual Report 2005 Page 71
Segmentation Analysis full detail table can be found in the Appendix 6
The share price is going to be based on the assumption that operates in a semi-strong efficient market. Efficient hypothesis theory assumes all public information available is compounded into the share price therefore share price movement reflect news information and future prospects of the share price.
The Graph was created using Hemscott’s Web site.
Money Am (03/2004) Bellway p.l.c. and English Partnerships Sign Thames Gateway Housing Deal
English Partnerships is the government's national regeneration agency
Money Am (10/2004) bellway preliminary results for the year ended 31 july 2004.
Company New (18/03/05), BUDGET 2005 - Buyers and builders to benefit from stamp duty change
Bellway Annual Report 2003, Chairman Statement - Page 3
Ratios were obtain from Digitallook website
Figures obtained from 17/11/05 Financial Times
Persimmon was used as a benchmark as it formally the market leader.
Bellway Annual Report 2005, Chairman Statement - Page 3
Assumption based on low growth prospect , which is concluded from P\E & dividends yield ratio.
Based on Bellway Annual Report 2005, Chairman Statement – Page 5
Bellway Annual Report 2004, Five Year Record Page - 71
Bellway Annual Report 2004, Five Year Record Page - 71
Crosland Jonas (9/12/2005), Mixed message for housebuilders
Milner Mark & Jones Rupert (6/12/2005), Measures aim for 200,000 new homes per year
Company New (18/03/05), BUDGET 2005 - Buyers and builders to benefit from stamp duty change
Publictechnology (12/06/05), Gordon Brown pre-budget report: the speech in full
Crosland Jonas (9/12/2005), Mixed message for housebuilders
Court C (6/10/05) SIPPs made simple
Jones Rupert (6/12/2005), Cut-price mortgages offered to help first-time buyers gain foothold in property market
Milner Mark & Jones Rupert (6/12/2005), Measures aim for 200,000 new homes per year
Teitelbaum (27/07/05) U.K. Home Builders Hit Roadblocks;
Consumer & Competition Policy, European Competition Policy market
BBC News (09/08/05) House prices too high - Prescott
Crosland Jonas (9/12/2005), Mixed message for housebuilders
Department of Trade & Industry, The National Minimum Wage
Mintel (11/2005) House Building (Industrial Report) – UK
Data Mointor Report (06/2005) Home Buidling in the United Kingdom Industry Profile
National Statistics (25/11/05), GDP Growth
National Statistics (25/08/05), Population - Ageing
Mintel (11/2005) House Building (Industrial Report) – UK
National Statistics (31/08/05), Socitey - Divorces
National Statistics (25/08/05), Population Change
Pinsent masons (14/11/05), Construction industry embraces new technology
Mintel (11/2005) House Building (Industrial Report) – UK
Average house price in 2004 taken from BBC News (08/11/05), House prices up 3.5% on the year
National Statistics, Index of Prudction
Total borrowings consist of Short-term debt & Long-term debt. Short-term debt & Long-term debt will only include bank overdraft and bank loan (taken from creditor note from the Annual reports).
Capital Employed will consist of Shareholders Funds, Short-term debt, Long-term debt. Short-term debt & Long-term debt will only include bank overdraft and bank loan (taken from creditor note from the Annual reports).
The interest payable figure subtracts interest receivable, therefore the net interest payable figure is used throughout the computations.
Stock includes land holdings figure.
EPS was obtained from Bellway’s Plc Profit & Loss Account in the Annual Report.
8 Dividends per ordinary share was obtained from Bellway’s Plc 2004 Annual Report from page 71
9 Preference dividends from Note 5 in Bellway’s Plc Annual Report is subtracted from the profit for the financial year attributable to shareholders and subtracted from dividends paid in the Profit & Loss Account.
![Bellway Plc is a holding company with subsidiaries; its main subsidiary company is Bellway Homes.[1] Bellway's principal activity is the construction of houses, bungalows and flats primarily in the private market](https://mbt-essays-prod-public.s3.eu-west-1.amazonaws.com/81040/listing/81040_1.jpg)
