Interim Results

Bellway PLC
06 April 2004



NATIONAL HOUSEBUILDER BELLWAY p.l.c. TODAY, TUESDAY 6 APRIL 2004, ANNOUNCE THEIR
INTERIM RESULTS FOR THE SIX MONTHS TO 31 JANUARY 2004




HIGHLIGHTS                                        Six Months to 31 January

                                                2004         2003     Increase

Turnover - £m                                  436.5        362.2        20.5%

Operating profit - £m                           81.0         59.7        35.7%

Profit before taxation - £m                     77.4         57.1        35.6%

Basic earnings per ordinary share - pence       47.9         35.6        34.6%

Dividend per ordinary share - pence              9.3          6.2        50.0%

Net asset value per ordinary share - pence       521          427        22.0%

THE CHAIRMAN HOWARD DAWE SAID '2004 IS SET TO BE AN HISTORIC YEAR FOR BELLWAY'.
FURTHERMORE 'WE ARE ON TRACK TO DELIVER OUR THIRTEENTH YEAR OF UNINTERRUPTED
ORGANIC VOLUME GROWTH'. HE ADDED 'I AM DELIGHTED TO ANNOUNCE ... AN INCREASE OF
50% IN THE INTERIM DIVIDEND, ... WE HAVE ... 98% OF THIS YEAR'S TARGET'. HE
CONCLUDED 'THE BOARD IS CONFIDENT THAT IT WILL DELIVER ANOTHER RECORD SET OF
RESULTS'.
                                                            2004            2003
* Homes sold - no.                                         2,728           2,470
* Average selling price - £000                             156.9           144.5
* Operating margin - %                                      18.5            16.5
* Return on average capital employed - %                    28.0            26.8
* Land bank - plots with planning permission              19,600          17,800
* Shareholders' funds - £m                                 602.8           491.3


FOR FURTHER INFORMATION, PLEASE CONTACT JOHN WATSON, CHIEF EXECUTIVE OR ALISTAIR
LEITCH, FINANCE DIRECTOR

TUESDAY 6 APRIL - THURSDAY 8 APRIL

J WATSON: 07855 337007

A LEITCH: 07855 337001

THEREAFTER: 0191 217 0717

                                 BELLWAY p.l.c

                             CHAIRMAN'S STATEMENT

Interim Results

2004 is set to be an historic year for Bellway and I am delighted to announce
record results for the six months ended 31 January 2004. This period saw the
Group convert its record order book position last July into increased
completions, turnover, operating margin and profits. We are on track to deliver
our thirteenth year of uninterrupted organic volume growth.

In the period, turnover grew by 20.5% to £436.5 million as we completed the sale
of 2,728 homes at an average price of £156,900, an increase of 10.4% and 8.6%
respectively over the same period in 2003. Profit before tax advanced by 35.6%
from £57.1 million to £77.4 million, with the operating margin improving from
16.5% to 18.5% and operating profit rising by £21.3 million to £81.0 million, an
increase of 35.7%. Net interest payable of £3.6 million is covered 23 times and
net borrowings at 31 January 2004 stood at £188.8 million resulting in gearing
of 31.3%. During the six months we have spent £174 million on acquiring land
with planning permission. The return on the average capital employed was 28%.

Dividend

You will recall that at this stage last year we increased our interim dividend
by 36% to effect a more even distribution between the first and second halves
and to better reflect our actual trading performance. In recognition of this
excellent performance, I am delighted to announce a continuation of this
realignment with an increase of 50% in the interim dividend from 6.2p to 9.3p. I
would expect in the absence of unforeseen circumstances that the Board will
recommend an increase in the total dividend for the year of around 20%.

The dividend will be paid on Thursday 1 July to ordinary shareholders who are on
the company's Register of Members at the close of business on Friday 4 June
2004. The ex-dividend date is Wednesday 2 June 2004.

Trading and Outlook

Despite the recent increases in interest rates, we continue to enjoy buoyant
market conditions and have, to date, reserved 1,000 more homes than at the same
time last year. We have reserved, contracted or legally completed 98% of this
year's target compared to 92% last year. The forward order book for this and the
next financial year currently stands at £631 million, an increase of 25% as
compared to last year. Our main focus remains the middle market and our 'local,
national housebuilder' ethos allows us to adapt to local needs through the wide
geographical coverage enjoyed by the fifteen trading divisions.

I previously mentioned 2004 as being an historic year as we celebrate our 25th
anniversary of Bellway p.l.c.'s listing on the London Stock Exchange and we will
also complete the sale of our 100,000th home. Bellway was the first housebuilder
to receive an Urban Regeneration Grant, an Urban Development Grant and a City
Grant. We were pleased to announce last week another first with the creation of
a joint venture company, Barking Riverside Limited, between ourselves and the
Government's development agency, English Partnerships, to develop land at
Barking Reach in Thames Gateway. This agreement will bring forward the early
release for development of up to 11,000 new homes.

Excluding Barking, our landbank with planning permission has grown by
approximately 1,200 plots since July 2003 to a record 19,600 plots. This is
further augmented by land that we own or control where planning should be
received in the near future amounting to 16,000 plots. In addition, we have
holdings of 3,200 acres which we continue to progress through the planning
system.

Our fifteen trading divisions have all performed well with the embryonic South
West division contributing to these results for the first time. Plans to
sub-divide Scotland into two trading divisions are well advanced and these two
separate entities will commence operation from August 2004. The Thames Gateway
North division has recently bought its first site and will contribute in 2005.

People

As ever, we are indebted to our employees together with our many suppliers,
sub-contractors and partners without whose efforts these record results would
not be possible and the Board would like to offer to everyone involved its
sincere thanks.

Future Prospects

The recent 'Barker Report' in tandem with the Budget announcement on 17 March
should have a positive long-term effect on the industry. In the interim, the
Group's efforts continue to be focused primarily on the middle market. This,
together with our urban regeneration skills and wide geographical spread, should
ensure that Bellway continues to flourish and achieve its target of selling by
2010 some 10,000 homes per annum. The Board is confident that it will deliver
another record set of results for the year to 31 July.


                                                                        H C Dawe

                                                                        Chairman
5 April 2004


                                 BELLWAY p.l.c.

                         GROUP PROFIT AND LOSS ACCOUNT




                                                                  Half year ended     Half year ended               Year

                                                                                                                   ended
                                                                       31 January          31 January            31 July
                                                                             2004                2003               2003
                                                                               £m                  £m                 £m
Turnover                                                                    436.5               362.2              954.2
                                                                             ====                ====               ====
Operating profit                                                             81.0                59.7              173.1
Exceptional items : Profit on disposal of freehold ground                       -                   -                2.1
rents
Net interest payable (including associated undertakings)                    (3.6)               (2.6)              (5.9)
                                                                           ______              ______             ______
Profit on ordinary activities before taxation                                77.4                57.1              169.3
Taxation                                                                   (23.2)              (17.1)             (50.7)
                                                                           ______              ______             ______
Profit on ordinary activities after taxation                                 54.2                40.0              118.6
Dividends on equity and non-equity shares                                  (11.4)               (7.8)             (24.2)
                                                                           ______              ______             ______
Retained profit                                                              42.8                32.2               94.4
                                                                             ====                ====               ====
Dividend per preference share                                               4.75p               4.75p               9.5p
Dividend per ordinary share                                                  9.3p                6.2p              20.0p
Earnings per ordinary share - basic                                         47.9p               35.6p             106.0p
Earnings per ordinary share - diluted                                       47.3p               35.2p             104.9p



                                 BELLWAY p.l.c.

                              GROUP BALANCE SHEET

                                                                At                          At                        At
                                                        31 January                  31 January                   31 July
                                                              2004                        2003                      2003
                                                                                   As Restated               As Restated
                                                    £m          £m            £m            £m          £m            £m
Fixed assets
Tangible assets                                               16.0                        16.3                      16.3
Investments                                                    0.1                           -                       0.1
                                                            ______                      ______                    ______
                                                              16.1                        16.3                      16.4
Current assets
Stocks                                          1020.8                     809.0                     858.0
Debtors                                           36.3                      21.3                      33.4
Cash at bank and in hand                          11.9                      33.0                      88.4
                                                ______                    ______                    ______
                                                1069.0                     863.3                     979.8
                                                ______                    ______                    ______
Creditors due within one year
Bank borrowings                                 (40.7)                    (73.3)                         -
Other creditors                                (255.1)                   (216.5)                   (269.4)
                                                ______                    ______                    ______
Net current assets                                           773.2                       573.5                     710.4
                                                            ______                      ______                    ______
Total assets less current liabilities                        789.3                       589.8                     726.8
Creditors due after more than one year
Bank borrowings                                (160.0)                    (85.0)                   (130.0)
Other creditors (including provisions for       (26.5)                    (13.5)                    (39.8)

liabilities and charges)
                                                ______                    ______                    ______
                                                           (186.5)                      (98.5)                   (169.8)
                                                            ______                      ______                    ______
NET ASSETS                                                   602.8                       491.3                     557.0
                                                              ====                        ====                      ====
Capital and reserves
Called up share capital                                       34.0                        33.8                      33.9
Reserves and share premium                                   568.8                       457.5                     523.1
                                                            ______                      ______                    ______
SHAREHOLDERS' FUNDS                                          602.8                       491.3                     557.0
                                                              ====                        ====                      ====

The interim accounts were approved by the Board of Directors on 5 April 2004.

The financial information for the two half year periods is unaudited and does not constitute statutory accounts within
the meaning of the Companies Act 1985. The figures relating to the year ended 31 July 2003 are an extract from statutory
accounts within the meaning of section 240 of the Companies Act 1985 which have been delivered to the Registrar of
Companies and on which the auditors gave an unqualified audit report.

The taxation charge is calculated by applying the directors' best estimate of the annual effective tax rate to the
profit for the period.

The interim accounts have been prepared on the basis of the accounting policies adopted for the year ended 31 July 2003
in all material respects, other than as detailed below. These policies are detailed in the company's Annual Report and
Accounts for that year.

The Group has adopted Urgent Issues Task Force Abstract 38 : ' Accounting for ESOP trusts' for the 2004 Interim results.
Ordinary shares in Bellway p.l.c. held in employee share ownership plans were previously reported as Fixed Asset
Investments. The shares are now recorded as a deduction from Shareholders' Funds.

At 31st January 2004 the carrying value of these shares was £1.9m which has been set against Other Reserves within
Reserves and Share Premium. The comparative figures for Fixed Asset Investments and Reserves and Share Premium have been
amended to reflect the change in treatment. The comparative figures have been restated such that Reserves and Share
Premium has been reduced by £1.5m at 31 January 2003 and by £1.3m at 31 July 2003.

                                 BELLWAY p.l.c.

                           GROUP CASH FLOW STATEMENT

                                                                   Half Year ended    Half Year ended         Year ended
                                                                        31 January         31 January            31 July
                                                                              2004               2003               2003
                                                                      £m        £m        £m       £m        £m       £m
Net cash (outflow) / inflow from operating activities
Group operating profit                                              81.0                59.7              173.1
Depreciation charge                                                  1.8                 1.8                3.6
Profit on sale of fixed assets                                     (0.1)               (0.2)              (0.2)
Increase in stocks - Land                                         (94.0)              (61.0)             (84.0)
- Work in Progress                                                (68.8)              (10.8)             (36.7)
(Increase) / Decrease in debtors                                   (2.8)                 0.2             (12.6)
(Decrease) / Increase in creditors                                (18.4)              (41.1)               18.8
                                                                  ______              ______             ______
                                                                           (101.3)             (51.4)               62.0
Net cash outflow from returns on investments
and servicing of finance
Interest paid                                                      (3.5)               (3.3)              (5.8)
Interest received                                                    0.6                 0.7                1.4
Dividends paid - non-equity                                        (0.9)               (0.9)              (1.9)
                                                                  ______              ______             ______
                                                                             (3.8)              (3.5)              (6.3)
Taxation                                                                    (25.5)             (20.2)             (44.3)
Net cash (outflow) / inflow from capital
expenditure
and financial investment
Purchase of tangible fixed assets                                  (2.0)               (2.0)              (4.1)
Sale of tangible fixed assets                                        0.7                 5.4                  -
Sale of freehold ground rents                                          -                   -                8.1
                                                                  ______              ______             ______
                                                                             (1.3)                3.4                4.0
Equity dividends paid                                                       (15.4)             (12.4)             (19.2)
                                                                            ______             ______             ______
Net cash outflow before financing                                          (147.3)             (84.1)              (3.8)
Net cash inflow from financing
Issue of ordinary share capital on exercise
of share options                                                     0.1                 0.2                3.6
Increase / (decrease) in bank loans due within one year             15.0                   -             (30.0)
Increase in bank loans due after more than one                      30.0                   -               45.0
year
                                                                  ______              ______             ______
                                                                              45.1                0.2               18.6
                                                                            ______             ______             ______
(Decrease) / increase in cash in period                                    (102.2)             (83.9)               14.8
                                                                              ====               ====               ====



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