false01372603213800CY4L3HST4FGZ982025-08-012026-07-31iso4217:GBP213800CY4L3HST4FGZ982024-08-012025-07-31iso4217:GBPxbrli:shares213800CY4L3HST4FGZ982024-07-31ifrs-full:IssuedCapitalMember213800CY4L3HST4FGZ982024-07-31ifrs-full:SharePremiumMember213800CY4L3HST4FGZ982024-07-31ifrs-full:CapitalRedemptionReserveMember213800CY4L3HST4FGZ982024-07-31ifrs-full:OtherReservesMember213800CY4L3HST4FGZ982024-07-31ifrs-full:RetainedEarningsMember213800CY4L3HST4FGZ982024-07-31213800CY4L3HST4FGZ982024-08-012025-07-31ifrs-full:IssuedCapitalMember213800CY4L3HST4FGZ982024-08-012025-07-31ifrs-full:SharePremiumMember213800CY4L3HST4FGZ982024-08-012025-07-31ifrs-full:CapitalRedemptionReserveMember213800CY4L3HST4FGZ982024-08-012025-07-31ifrs-full:OtherReservesMember213800CY4L3HST4FGZ982024-08-012025-07-31ifrs-full:RetainedEarningsMember213800CY4L3HST4FGZ982025-07-31ifrs-full:IssuedCapitalMember213800CY4L3HST4FGZ982025-07-31ifrs-full:SharePremiumMember213800CY4L3HST4FGZ982025-07-31ifrs-full:CapitalRedemptionReserveMember213800CY4L3HST4FGZ982025-07-31ifrs-full:OtherReservesMember213800CY4L3HST4FGZ982025-07-31ifrs-full:RetainedEarningsMember213800CY4L3HST4FGZ982025-07-31213800CY4L3HST4FGZ982025-08-012026-07-31ifrs-full:IssuedCapitalMember213800CY4L3HST4FGZ982025-08-012026-07-31ifrs-full:SharePremiumMember213800CY4L3HST4FGZ982025-08-012026-07-31ifrs-full:CapitalRedemptionReserveMember213800CY4L3HST4FGZ982025-08-012026-07-31ifrs-full:OtherReservesMember213800CY4L3HST4FGZ982025-08-012026-07-31ifrs-full:RetainedEarningsMember213800CY4L3HST4FGZ982026-07-31ifrs-full:IssuedCapitalMember213800CY4L3HST4FGZ982026-07-31ifrs-full:SharePremiumMember213800CY4L3HST4FGZ982026-07-31ifrs-full:CapitalRedemptionReserveMember213800CY4L3HST4FGZ982026-07-31ifrs-full:OtherReservesMember213800CY4L3HST4FGZ982026-07-31ifrs-full:RetainedEarningsMember213800CY4L3HST4FGZ982026-07-3101372603bus:Consolidated2025-08-012026-07-3101372603bus:CompanySecretaryDirector12025-08-012026-07-3101372603bus:Consolidated2026-07-31013726032026-07-3101372603bus:Director12025-08-012026-07-3101372603bus:Director22025-08-012026-07-31013726032025-08-012026-07-31xbrli:pure01372603bus:FullAccounts2025-08-012026-07-3101372603bus:CompanySecretaryDirector1bus:Consolidated2025-08-012026-07-3101372603bus:Audited2025-08-012026-07-3101372603bus:FRS1012025-08-012026-07-31
Bellway p.l.c.
Annual Report and Accounts 2026
Bellway has a new brand.
Same name, same high standards,
butwithanew focus on what customers
want. Morethan ever before, we make
buying a home as easy and enjoyable as
possible. Homes with character, homes
designed with passion, homes built with
love. Homes sold with love. Homes for life.
A place that feels like home.
Feels like home.
Bellway p.l.c. Annual Report and Accounts 2026 1GovernanceStrategic Report Accounts Other Information
Welcome
The footnotes below are used throughout this Annual Report
– 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.
– Comparatives are for the year ended 31 July 2025 or as at 31 July 2025 (2025), unless otherwise stated.
1. Bellway uses a range of statutory performance measures and alternatives 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 26 of the Group
Financial Statements.
2. Underlying refers to any statutory performance measure or alternative performance measure
before netlegacy building safety expense and other exceptional items (note 2 of the Group
Financial Statements).
3. Includes the Group’s share of land owned and controlled through joint venture partners comprising
674plots (2025: 760 plots).
4. As measured by the Home Builders Federation (HBF) using the eight-week NHBC Customer
Satisfaction survey.
5. A positive planning status for strategic land is defined as plots being allocated in a local plan, a planning
application has been submitted, or both.
Business
Model
page 24
Other Information
Five-year Record 195
Non-Financial and Sustainability
Information Statement (NFSIS) 196
Glossary 197
Advisers and Company Secretary 199
Financial Calendar 200
Accounts
Group Financial Statements 144
Accounting Policies 149
Notes to the Group Financial Statements 150
Company Financial Statements 177
Accounting Policies 179
Notes to the Company Financial Statements 179
Subsidiaries, Associates and Joint Ventures 184
Governance
Chair’s Statement on Corporate Governance 60
Board of Directors and Company Secretary 62
Leadership and Culture 67
Board Activities and Decisions 68
Section 172 Statement and
StakeholderEngagement 70
Engaging with Key Stakeholders 72
Governance Framework 78
Composition, Succession and Evaluation 84
Nomination Committee Report 86
Audit Committee Report 90
Remuneration Report 104
Sustainability Committee Report 125
Executive Committee Report 127
Directors’ Report 130
Independent Auditor’s Report to the
Members of Bellway p.l.c. 134
Strategic Report
2026 Highlights 3
Celebrating 80 years of Bellway 4
Chair’s Statement 5
Key Performance Indicators (KPIs) 6
Business at a Glance 8
Why Invest in Bellway 9
Additional Performance Measures 10
Chief Executive’s Market
and Operational Review 11
Chief Financial Officer’s Review 15
Chief Commercial Officer’s Review 18
Responsible Business 20
The Marketplace 21
Business Model 24
Our Responsible Business strategy 29
2026 progress 30
Creating communities including 31
Taskforce on Nature–related Financial
Disclosures (TNFD)
Building sustainable homes including 36
Task Force on Climate-related Financial
Disclosures (TCFD)
Valuing people 49
Risk Management 50
Principal Risks 53
Viability Statement 57
Chief
Executive’s
review of
the year
page 11
Chair’s
Statement
page 5
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 2
2026 Highlights
Revenue drivers Financial highlights Operational highlights
Total completions
9,695
homes
2025: 8,749 homes
+10.8%
Average selling price
£324,404
2025: £316,412
+2.5%
Underlying operating profit
R
£320.6m
1,2
2025: £303.5m
+5.6%
Underlying profit
beforetaxation
£305.7m
1,2
2025: £289.1m
+5.7%
Adjusted operating
R
cashflow
£868.6m
1,2
2025: £638.9m
+36.0%
Revenue
£3,162.2m
2025: £2,782.8m
+13.6%
Profit before taxation
£270.2m
2025: £221.9m
+21.8%
Underlying pre-tax return
R
on equity (RoE)
8.7%
1,2
2025: 8.2%
+50bps
Underlying operating margin
R
10.1%
1,2
2025: 10.9%
-80bps
Earnings per ordinary share
166.1p
2025: 132.8p
+25.1%
Proposed total dividend
perordinary share
75.0p
2025: 70.0p
+7.1%
Owned and controlled
46,666
3
plots
2025: 47,904 plots
-2.6%
Strategic land bank
48,000
plots
2025: 47,800 plots
+0.4%
Total land bank
94,666
3
plots
2025: 95,704 plots
-1.1%
Average trading outlets
238
2025: 246
-3.3%
R
Link to remuneration
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 3
The oak represents
80 years of strength,
resilience and
steadygrowth.
In 1946, John T. Bell & Sons Limited
wasincorporated, laying the foundations
for the business that would grow into
theBellway we know today.
Our 80th anniversary year has already been one of
transformation, with the launch of our refreshed brand
and the introduction of our Company values. We are
proud that Bellway has remained true to its family-focused
values, building connected communities. When John Bell
and his sons established their business in Newcastle,
80years ago, they could hardly have imagined that it
would grow into one of the UK’s leading homebuilders,
building and selling more than 240,000 homes
across theUK. Reaching 80 years is an achievement
made possible by the generations of colleagues
whohavehelpedtoshapeBellway’s success.
Celebrating 80Years ofBellway
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 4
John Tutte
Chair
Chair’s Statement
On behalf of the Board, I would also like
to thank Jill and Ian for their considerable
contributions to Bellway. Jill has provided
valuable insight and counsel during her tenure
and has led the Remuneration Committee
with diligence and sound judgement. Ian has
served Bellway with dedication throughout
his nine-year tenure and made a significant
contribution as Chair of the Audit Committee.
We wish them both well for the future.
The future
Bellway’s strong balance sheet, high-quality
land bank and operational capacity provide
a solid platform for long-term value creation.
Our strategic priorities remain focused on
delivering sustainable volume growth over
time, improving return on equity and managing
our business responsibly through a disciplined
focus on quality, safety and our people.
The near-term outlook remains uncertain,
witheconomic challenges, mortgage
affordability and delays in planning continuing
to constrain housing delivery. Against this
backdrop, the Government’s proposed Your
First Home scheme is a welcome development
and has the potential to provide significant
support for first-time buyers. We look forward to
further detail on its design and implementation.
Alongside continued progress on planning
reform, Your First Home could help more people
access home ownership and accelerate the
delivery of much-needed new homes.
Bellway benefits from an experienced
leadership team and deep operational
expertise across the organisation. We remain
committed to building high-quality homes and
sustainable communities, delivering against our
strategic priorities and creating long-term value
for shareholders and our wider stakeholders.
John Tutte
Chair
12 October 2026
both our net asset value (NAV} per share
and EPS. Subject to market conditions and
the Group’s capital requirements, the Board
intends to continue returning surplus capital
to shareholders in future years.
The ordinary dividend remains a core
component of shareholder returns, with the
Group maintaining its policy of underlying
dividend cover of 2.5 times
1,2
. For FY26,
theBoard has recommended a final dividend
of 52.0p per share (2025: 49.0p), bringing
the total dividend for the year to 75.0p per
share (2025: 70.0p), an increase of 7.1%.
Together, dividends and share buybacks
are expected to return around £450m to
shareholders across FY26 and FY27, reflecting
the Board’s confidence in Bellway’s financial
strength and cash-generation capabilities,
and its commitment to delivering long-term
shareholder value.
Board changes
Gill Barr joined the Board in September 2025
as an independent Non-Executive Director
and as a member of the Audit, Nomination
and Remuneration Committees. In April
2026, she succeeded Jill Caseberry as Chair
of the Remuneration Committee, ahead of
Jill’s retirement from the Board in September
2026. Gill brings significant executive
leadership experience and more than 20
years’ experience in non-executive roles,
including within the construction sector.
Her extensive knowledge and expertise are
already proving valuable to the Board.
Philip Harrison joined the Board on 1 July 2026
as an independent Non-Executive Director
and as a member of the Audit, Nomination and
Remuneration Committees. He will succeed
Ian McHoul as Chair of the Audit Committee
when Ian retires from the Board at the AGM
in November 2026. Philip brings extensive
financial leadership and strategic experience
across several sectors, including construction.
His breadth of experience and financial
expertise within listed companies will be of
great benefit to Bellway, and we are delighted
to welcome him to the Board.
Introduction
Bellway delivered a resilient performance
ina year marked by continued challenges
forour industry. A strong opening order
book helped to mitigate the impact of
market uncertainty, supporting higher
volume output and profit, and a 6.3%
increase in underlying earnings per share
(EPS) to 187.8p (2025: 176.7p).
These results reflect the strength of
the Group, the quality of our operations
and the commitment of our colleagues,
subcontractors and supply chain partners.
On behalf of the Board, I would like to thank
all those whose dedication and hard work
made this performance possible.
Shareholder returns
Our capital allocation framework supports
long-term value creation by balancing
investment for growth, financial strength and
the return of surplus capital to shareholders.
Improved capital efficiency contributed to
significant growth in adjusted operating cash
flow during FY26 and supported selective
investment in attractive land opportunities,
alongside the £150m share buyback
programme announced in October 2025.
This completed in August 2026, andafurther
£150m programme is underway for execution
during FY27. Since 2022, we have reduced
the issued share capital of the Group by
8.5%, driving underlying improvements in
Bellway delivered
a resilient
performance.
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 5
Key Performance Indicators (KPIs)
The Group has 12 principal financial and operational KPIs, and four non-financial KPIs linked
toourResponsible Business strategy and monitored by the Board, which are shown below.
Additional performance measures, which support these KPIs, are shown on page 10.
This is a useful indicator of how the
Group’s business model is able to support
its strategy of delivering volume growth.
This indicator measures how efficiently
the business is being operated and the
profitability of the Group’s core business.
This metric demonstrates the operational
efficiency of the business.
This metric demonstrates the operational
efficiency of the business.
A useful indicator of how the Directors
are delivering the strategy of generating
shareholder value. Note that the 2026
finaldividend figure is proposed.
Underlying operating margin is before net
legacy building safety expense and other
exceptional items.
RoCE is a key indicator of how we are
delivering our strategy of building shareholder
value through capital efficiency, which is
reliant on land acquisition and the subsequent
performance of our developments.
Underlying RoCE uses the underlying
operating profit as set out to the left.
a. In 2025 the definition of capital employed was updated to deduct net cash.
Total home completions ( homes)
9,695
homes
+
10.8%
2
026
2
025
2
024
9,695
8,749
7,654
Return on capital employed (RoCE)(%)
1,a
8.6%
+150bps
2
026
2
025
2
024
8.6
7.1
6.3
Underlying RoCE (%)
1,2,a
9.2%
+50bps
2
026
2
025
2
024
9.2
8.7
7.1
R
Underlying operating profit (£m)
1,2
£320.6m
+5.6%
2
026
2
025
2
024
320.6
303.5
238.1
R
Proposed total dividend per
ordinary share
(p)
75.0p
+7.1%
2
026
2
025
2
024
75.0
70.0
54.0
Underlying operating margin (%)
1,2
10.1%
-80bps
2
026
2
025
2
024
10.1
10.9
10.0
R
Operating profit (£m)
£299.1m
+19.3%
2
026
2
025
2
024
299.1
250.7
212.8
Operating margin (%)
1
9.5%
+50bps
2
026
2
025
2
024
9.5
9.0
8.9
Financial and operational KPIs
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 6
The Director’s consider this as an indicator
of how effective the Group is at generating
cash to invest in future growth and drive
long-term value creation for shareholders.
This is calculated as profit for the year
before net legacy building safety expense
and other 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 operating efficiency.
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.
EPS is a useful measure of how profitable
Bellway is year on year.
Adjusted operating cashflow (p)
1,2
£868.6m
+36.0%
2
026
2
025
2
024
868.6
638.9
425.2
R
Pre-tax return on equity (RoE)(%)
1
7.6%
+130bps
2
026
2
025
2
024
7.6
6.3
5.3
026
025
024
166.1
132.8
109.8
Underlying pre-tax RoE (%)
1,2
8.7%
+50bps
2
026
2
025
2
024
8.7
8.2
6.5
R
Non-financial KPIs
Key
R
Link to remuneration – see pages 106 to 124.
Strategic priorities
Drive a long-term improvement inunderlying pre-tax RoE.
Deliver long-term volume growth.
Operate responsibly and sustainablythrough our Responsible Business strategy.
At Bellway, we build homes to be
proud ofwith customers at the heart
of everything we do, this is reflected
in our HBF 5-star homebuilder status,
which we have achieved for the tenth
consecutive year.
The scoring methodology for the HBF survey
was revised in 2026 and no comparable prior-
year data is available. However, we achieved
5-star homebuilder
4
status in 2024 and 2025.
HBF 9-month Survey
Target 4.15
2
026
4.19
95.4
R
(as measured by the HBF)
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% by July 2030.
Carbon Reduction
Scope 1 and 2 emissions
(tonnes)
-1.8%
Target 46% below 25,715
2
026
2
025
2
024
13,052
13,293
14,227
This KPI measures the annual number
ofRIDDOR seven-day reportable incidents
per 100,000 site operatives against
athree-year rolling average.
Building Quality Homes, Safely
R
IDDOR incidents
XXX.XX%
+9.1%
Target below 186.17
2
026
2
025
2
024
182.03
166.88
170.99
The Group is committed to reducing
Scope3 GHG emissions by 55% per
square metre ofcompleted floor area
byJuly 2030, against the FY19 baseline
of1.53 tonnes.
Carbon Reduction
Scope 3 emissions
(tonnes)
X.XX
-7.7%
Target 55% below 1.53
2
026
2
025
2
024
1.32
1.43
1.40
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 7
Business at a Glance
The homes we create are as diverse as the Great British public.
They are built for friends sharing the living room and families
sharing the dining table. They are built for now, and the future.
Whether it is a five-bedroom family home in Northumberland
or an apartment in London, here at Bellway, we build with the
same care and attention, laying the foundations for communities
that can grow.
Our strategic priorities
Drive a long-term improvement inunderlying pre-tax RoE.
Deliver long-term volume growth.
Operate responsibly and sustainablythrough our
Responsible Business strategy.
Divisional operations
Our brand
With the introduction of our refreshed Bellway
brand, we reviewed the role of Ashberry
within our brand portfolio. To support a more
streamlined and efficient approach to marketing
and brand investment, Ashberry will be phased
out over the next three to four years.
Our principles
Caring
Thoughtful in every detail, genuinely warm
inevery interaction
Uplifting
Celebrating moments, brightening every step
Pragmatic
Refreshingly honest, beautifully simple
Our purpose At Bellway, we build
sustainable homes, shaped
around you, styled for life.
Building safety division
Divisional locations
Group office
Timber frame facility
Key
20
trading divisions covering the
main population centres across
England, Scotland and Wales.
2,847
people employed by the Group
onaverage in 2026.
The divisional structure allows
localmanagement teams, supported
by Regional Chairs, Regional Finance
Directors and specialist Group
functions, to respond to specific
needs in their area and, through
their detailed local expertise,
acquire land and build homes that
meet regulatory requirements
andstakeholder expectations.
Our awards and accreditations
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 8
A well-capitalised
balance sheet
We aim to maintain financial
resilience, which is central to
our long-term strategy. With our
focus on increasing pre-tax RoE,
a robust, efficient balance sheet
enables agile responses to
land opportunities and that will
support our ambition to deliver
multi-year growth in volume
output andreturns.
Clear strategic
priorities
We have a strategy to deliver
long-term volume growth,
deliver long-term improvements
in underlying pre-tax RoE
and operate responsibly
through our new Responsible
Business strategy.
Read more about our
Responsible Business strategy
on pages 29 to 49
A high-quality
land bank
Our disciplined investment
strategy and rigorous
approval processes ensure
land acquisitions deliver high
financial returns. We have
48,000 plots in desirable
locations that will support
sustainable growth and enhance
long-term shareholdervalue.
A new brand
proposition
A strong and trusted brand is an
important driver of commercial
success. Our refreshed
brand enhances the way we
present Bellway to customers,
providinga clear and consistent
identity that supports customer
engagement and helps
differentiate us in the market.
Read more on page 13
Strong leadership
and divisional
structure
A national presence with 20
trading divisions across the UK,
offers geographical diversity
and the ability to tailor our
offering to meet localneeds
and demands.
Why Invest in Bellway
We are well placed to continue our volume growth, drive enhanced
capital efficiency and shareholder returns.
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 9
Additional Performance Measures
1
Select the
rightland
3
Design and construct
high-quality homes
2
Manage the
planning process
4
Sell homes and
deliver excellent
customer service
2026 2025
Land bank plots with detailed planning permission (DPP) (plots)
27,092
30,544
Bellway owned and controlled land bank (plots)
45,992
47,14 4
Strategic land bank (plots)
48,000
47,800
Underlying gross margin (%)
1,2
15.7
16.4
Gross margin (%)
1
15.1 15.1
2026 2025
Pride in the Job Awards
47 47
Near-miss incidents reported 5,802 11,070
2026 2025
Number of plots in the pipeline (plots) 18,900 16,600
Number of plots converted from medium-term
pipeline (plots) 5,762 7,082
Number of plots in strategic land bank –
positive planning (plots) 25,583 14,500
Number of plots in strategic land bank –
longer-term interests (plots) 22,417 33,300
2026 2025
Order book value (£m)
1
1,197.2 1,519.4
NHBC overall score (out of 5)
b
4.38 –
Private reservation rate (excluding bulk sales)
(homespersite, per week) 0.49 0.52
b. The scoring methodology for the NHBC survey was revised in 2026 and no comparable prior-year data is available.
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 10
Chief Executive’s Market and Operational Review
Delivering
our strategy,
building
stakeholder
confidence.
Jason Honeyman
Chief Executive
Market
Customer demand during the autumn of
2025 was affected by uncertainty ahead of
the Government’s Budget, consistent with
the pattern experienced in the prior financial
year. Trading improved during the early part
of the spring selling season but moderated
from April as increased economic uncertainty
and the conflict in the Middle East drove
further inflationary pressures and higher
mortgage rates, which weighed on consumer
confidence and affordability.
To support affordability and maintain
sales momentum in a more challenging
market, the use of targeted incentives
increased to average around 5% (2025: 4.1%),
resulting in some moderation in underlying
selling prices. These pressures are more
pronounced in the South of England,
where higher house prices and mortgage
requirements increase customer sensitivity
to borrowing costs.
The private reservation rate decreased
by 5.8% to an average of 131 per week
(2025: 139). In line with our strategy,
bulksales made a good contribution during
the year, with the private reservation rate
per outlet per week at 0.55 (2025: 0.57).
The private reservation rate excluding bulk
sales was 0.49 (2025: 0.52). The overall
reservation rate, including social homes,
was3.5% lower at 165 per week (2025: 171)
and the cancellation rate remained low at
12% (2025: 13%).
The availability of competitively priced
mortgage products provided some support
to customer demand during the year,
although interest rate volatility affected
buyer confidence and affordability remained
constrained, particularly for customers
requiring higher loan-to-value mortgages.
Against this backdrop, we welcome
the Government’s proposed Your First
Home scheme, which has the potential to
provide substantial support for first-time
buyers andhelp address the deposit and
affordability constraints faced by many
prospective homeowners. We look forward
to further detail on the scope, design and
timing of its introduction.
“ The strength
and depth of
theGroup’s land
bank support
ourlong-term
growth plans.”
Our strategic priorities
Drive a long-term
improvement
in underlying
pre-tax RoE.
Deliver long-term
volume growth.
Operate responsibly
and sustainably
throughthe Responsible
Business strategy.
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 11
Chief Executive’s Market and Operational Review (continued)
Land bank
The strength and depth of the Group’s
landbank support our long-term growth
plans and enable us to maintain a broadly
replacement-only approach to land
acquisition. The table above shows
theGroup’s land holdings.
Bellway’s owned and controlled
land bankcomprises 45,992 plots
(2025: 47,144plots), including 27,092 plots
(2025: 30,544 plots) with an implementable
detailed planning permission (DPP) and
18,900 pipeline plots (2025: 16,600
plots). This represents a land bank length
of4.7years (2025: 5.4 years) based on
thelast12 months’ legal completions.
Land investment has remained controlled
and highly selective, with capital directed
towards opportunities offering the most
attractive returns and supported by resilient
underlying customer demand. In FY26,
78%(2025: 66%) of the plots contracted
were located in our Northern divisions,
reflecting the strength of opportunities
identified across those markets.
During the year, the Group contracted to
purchase 8,578 owned and controlled plots
(2025: 8,120 plots) across 35 sites (2025: 51
sites) with a total contract value of £505.1m
(2025: £566.8m). This included a large site
comprising around 1,900 plots converted
from our strategic land bank in the
Dunfermline Strategic Development Area,
which will act as an anchor site to support
growth for our two Scotland divisions.
Our owned and controlled land bank remains
well diversified across the UK, with 56%
located in the North and 44% in the South,
supporting future delivery across a broad
range of markets.
The Group traded from an average of
238 outlets (2025: 246), in line with our
expectations, with a closing position of
253 outlets at 31 July 2026 (2025: 249).
While we have good visibility on around
40new outlet openings in FY27, the timing
of these openings, together with the planned
completion of existing sites and continued
delays in planning, means that we expect
to operate from an average of around
230outlets during the year.
Our strategic land bank provides a valuable
pipeline of future development opportunities
secured with a relatively low initial capital
outlay. During the year, we continued to
invest selectively, entering into option
agreements to buy 24 sites (2025: 30
sites). The strategic land bank comprises
48,000 plots, over half of which have a
positive planning status. Increasing the
proportion of completions delivered from
strategically sourced land to more than 20%
over the medium term (2026: 15%) remains
an important part of our plans to improve
margins and returns.
Production and cost control
Build cost inflation was at low single-digit
levels during the first half of the financial
year but increased in the second half,
principally reflecting greater pressure on
material and energy costs amid heightened
geopolitical and supply chain uncertainty.
The Group has received price increase
requests from suppliers and subcontractors
but has continued to negotiate robustly,
limiting the impact on agreed rates.
Product availability across the Group
iscurrently good, and our procurement
arrangements retain flexibility to benefit
from any reduction in input costs.
Looking ahead, ongoing volatility in global
energy prices and the risk of supply chain
disruption could lead to further cost
increases. While the extent of any impact
remains uncertain, we currently anticipate
overall build cost inflation of around 3%
to4% in FY27.
8,578
plots contracted to purchase (plots)
31 July 2026
Plots
31 July 2025
Plots
DPP: plots with implementable detailed planning permission
27,092 30,544
Pipeline: plots pending an implementable DPP 18,900 16,600
Bellway owned and controlled plots 45,992 47,144
Bellway share of land owned and controlled by joint ventures 674 760
Total owned and controlled plots
3
46,666 47,904
Strategic land holdings 48,000 47,800
Total land bank
3
94,666 95,704
238
Average trading outlets
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 12
We are strengthening cost control and
operational efficiency through greater
Group-wide standardisation. During the
year, we finalised the Bellway Collection,
our new portfolio of standard house types,
which accommodates both traditional
and timber-frame construction methods
and provides the flexibility to meet
the requirements of the Future Homes
Standard. Supported by centralised design,
procurement and site layout reviews,
theBellway Collection will improve
consistency, simplify delivery and help
mitigate build cost pressures.
As part of our long-term growth strategy,
we are increasing the use of sustainably
sourced timber frame construction.
Refresh of the Bellway brand
Our consistent focus on providing high-quality
homes and service for our customers has
resulted in Bellway retaining its position as a
5-star⁴ homebuilder for the tenth consecutive
year. Positive customer recognition is key to
our ongoing success and, as reflected by the
investment in ournew range of house types,
we are improving the design of our homes to
meetthe changing needs and expectations
ofour customers.
To support our strategic priorities of driving
growth and efficiencies across the business,
we have also refreshed the Bellway brand.
The redesigned brand has been successfully
launched with a new digital-first approach
to simplify the customer journey, attract a
broader range of buyers to our outlets and
enhance revenue opportunities, including
customer options and upgrades.
As part of the brand refresh process, and
following a detailed review, we decided to
phase out the Ashberry brand. Following the
introduction of our refreshed Bellway brand,
new Bellway Collection house types and
enhanced digital customer experience,
maintaining an additional brand representing
a relatively small proportion of Group
output is no longer the most efficient use
of resources. We do not anticipate any
impact on our plans for outlet growth over
the medium term, with the transition to be
phased over the next three to four years as
existing and new outlets gradually become
part of the main Bellway brand.
The Group is targeting an increase in timber
frame use to around 30% of housing output
by 2030 (2026: 20%). This will deliver
operational, financial and environmental
benefits through shorter build times,
improved work-in-progress (WIP) efficiency
and lower supply chain carbon emissions.
Bellway Home Space, our proprietary timber
frame manufacturing facility, opened in
January 2026 and began supplying frames
to our divisions for housing completions
from the second half ofFY26. The planned
increase in timber frame output will be
delivered primarily through this facility.
We are confident that this investment will
support sustainable volume growth, improve
capital efficiency and contribute to a higher
underlying RoE.
In January 2026,
we opened our new
state of the art
timber frame facility,
Bellway Home Space,
located in Sutton-in-
Ashfield, Mansfield.
The facility is fitted
with state-of-the-art
robotic machinery.
Bellway
Home
Space
Energy House 2.0
Heating Report
Results continue to be produced from our
groundbreaking Energy House 2.0 project
withthe University of Salford. The report
showsthat, on a typical winter’s day, our
approach of a Monobloc ASHP, underfloor
heating and upstairs radiators can reduce
customers’ heating costs.
Read more about our Responsible Business
strategy on pages 29 to 49
Download our Responsible Business Report:
bellwayplc.co.uk/sustainability
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 13
Recent trading and outlook
Since the start of the new financial year,
thesubdued trading conditions experienced
from late spring have continued.
Customer demand remains constrained
by affordability pressures, with mortgage
interest rates above prior-year levels,
whilewider economic uncertainty continues
to affect homebuyer decision making.
While the Government’s proposed Your First
Home scheme has the potential to provide
meaningful support for first-time buyer
demand, the period ahead of its launch may
influence the timing of purchasing decisions
among some prospective customers.
In the nine weeks since 1 August, the private
reservation rate per outlet per week,
including bulk sales, was 0.50 (1 August
to 5 October 2025: 0.51). The private
reservation rate excluding bulk sales
was0.45 (2025: 0.48).
Reflecting recent trading and completions
in the period, the forward order book
at2 October 2026 comprised 4,981 homes
(5 October 2025: 5,285 homes) with a value
of £1,437.6m
1
(5 October 2025: £1,526.9m).
Given the lower opening order book
and continued affordability pressures,
volume output is expected to reduce in
FY27, and the Group is targeting total
completions of between 9,000 and 9,400
homes (2026: 9,695). This will include an
increased contribution from bulk sales
(2026: 615 homes) to support volume
delivery andcashgeneration, while
maintaining financial discipline.
Build cost inflation, elevated sales incentives
anda higher proportion ofbulk sale completions
are expected to result in afurther reduction
in the underlying operating margin in FY27.
Management actions are underway to further
strengthen cost control and operational
efficiency, although these will not fully offset
thenear-term margin pressures.
“ Our focus on disciplined
cost control and operational
efficiency will help mitigate
current pressures.”
Notwithstanding current industry headwinds,
Bellway’s strong balance sheet, high-quality
land bank and operational capabilities
provide the resilience to navigate near-term
uncertainty. Our focus on disciplined cost
control and operational efficiency will help
mitigate current pressures, while selective
land investment and the accelerated trade-
out of lower-margin sites provide a strong
platform for improving margins and returns
beyond FY27. With a nationwide divisional
presence and significant operational
capacity, the Group is well-positioned to
increase volume output anddeliver higher
profits over the medium term asmarket
conditions improve.
Jason Honeyman
Chief Executive
12 October 2026
4,981
homes in our order book
at 2 October 2026
Chief Executive’s Market and Operational Review (continued)
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 14
Chief Financial Officer’s Review
Trading performance
The Group delivered growth in
housing revenue of 13.6% to £3,145.1m
(2025: £2,768.3m), which was supported
byastrengthened order book at the
start ofthe financial year. Other revenue
was £17.1m (2025: £14.5m) and comprises
ancillary items including land and
commercial sales, and management
fee income earned on our joint venture
schemes. Total revenue was 13.6% higher
at£3,162.2m (2025: £2,782.8m).
The table below shows the number and
average selling price of homes completed
in the year, analysed between private
and social homes, and against the
prior-year comparative.
Total housing completions increased
by 10.8% to 9,695 homes (2025: 8,749).
Private completions rose by 10.2% to 7,631
homes (2025: 6,924), including an increased
contribution from bulk sales to 615 homes
(2025: 308). There was a 13.1% increase
in social housing output to 2,064 homes
(2025: 1,825), and the proportion of social
completions was broadly in line with the
prior year at 21.3% of the total (2025: 20.9%).
We have good visibility on ournear-term
build programmes, and we expect social
housing completions to be a similar
proportion of the total in FY27.
The overall average selling price increased
to £324,404 (2025: £316,412), in line with
our expectations. The movement principally
reflected changes in geographic and product
mix, with no underlying house price inflation.
Incentive usage increased to average around
5% (2025: 4.1%) given ongoing affordability
pressures and more subdued customer
demand. We currently expect the overall
average selling price for FY27 to be similar
tothe FY26 level at around £325,000.
“ Our focus remains
on disciplined
capital allocation,
strengthening
cash generation
and driving further
improvements in
operational and
capitalefficiency.”
Driving higher
cash generation
and sustainable
shareholder
returns.
Shane Doherty
Chief Financial Officer
2026 2025 Variance (%)
No. of
Homes
ASP
(£000)
No. of
Homes
ASP
(£000) Homes ASP
Private 7,631 358.2 6,924 350.4 10.2% 2.2%
Social 2,064 199.6 1,825 187.3 13.1% 6.6%
Total 9,695 324.4 8,749 316.4 10.8% 2.5%
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 15
Chief Financial Officer’s Review (continued)
Underlying operating
performance
The Group’s strong commercial disciplines
and proactive management of site-based
overheads helped mitigate pressure on
profitability. However, the effects of residual
build cost inflation, extended site durations
and the absence of underlying house price
inflation resulted in a 70bps reduction
in underlying gross margin to 15.7%
1,2
(2025: 16.4%). Higher revenue morethan
offset the margin movement, resulting
ina9.0% increase in underlying gross profit
to£497.8m
1,2
(2025: £456.8m).
Other operating income and expenses,
whichnet to an expense of £4.4m
(2025: £1.3m), relate to the running of our
part-exchange programme. Part-exchange is
an important selling tool in a slower housing
market, although its use remains selective
and tightly controlled. It supported 8.4%
of private completions during the year
(2025: 4.8%), with a balance sheet investment
of £57.6m at 31 July 2026 (2025: £25.3m).
The Group has the financialcapacity to
increase its use further, selectively and
within established controls, if required by
market conditions.
The underlying administrative expense
roseto £172.8m
1,2
(2025: £152.0m), in line
with previous guidance, and reflected
investment to strengthen the Group’s
operations and support long-term efficiency.
This included Bellway Home Space, our
new timber frame manufacturing facility,
together with enhancements to IT, and
our commercial and finance capabilities.
It also included the cost of maintaining
competitive reward packages to attract
and retain high-quality people. Together,
these investments have strengthened the
organisational capacity required to deliver
our strategic priorities.
Given sustained sector headwinds and the
challenging near-term outlook, cost control
remains a key priority. Management actions
are already underway, including procurement
savings, efficiencies from the Bellway Collection,
a broader review of overheads and operational
efficiency, and an assessment of how emerging
technologies, including AI, can support further
productivity gains across the business.
While these measures will help mitigate cost
pressures, they will not fully offset the near-
term effects of build cost inflation, elevated
sales incentives and ahigher proportion of
bulk sale completions.
The underlying operating margin reduced
to 10.1%
1,2
(2025: 10.9%), primarily reflecting
the lower underlying gross margin, and
is expected to reduce further in FY27.
The improving mix of the land bank, supported
by selective investment and the accelerated
trade-out of lower-margin sites, provides a
platform for margin improvement over the
medium term.
Over time, volume growth, improved
overhead recovery and a greater
contribution from higher-margin strategic
land should support a progressive recovery
in margin. With stable housing market
conditions, the Board is confident that
bothan underlying operating margin
andunderlying pre-tax RoE in the mid-
teens
1,2
are achievable and sustainable over
the longer term.
Adjusting item: Net legacy
building safety expense
Bellway has allocated and committed
significant resource and funding to
remediate its legacy apartment buildings,
and we continue to make good progress on
addressing legacy building safety issues.
We have completed assessments for all
relevant buildings in England and Wales in
accordance with the Joint Plan, developed
remediation designs and progressed the
appointment of subcontractors.
During the year, the Group recognised
a net adjusting expense of £35.2m
(2025: £51.8m) in relation to legacy building
safety. This included a net charge of £21.2m
(2025: £37.4m) through cost of sales,
comprising a £31.2m increase in overall cost
estimates (2025: £37.6m), partly offset by
recoveries of £10.0m (2025: £0.2m) across
several sites. An exceptional SRT expense
of £0.8m in 2026 (2025: £nil) has also been
included in the Group’s share of result of
joint ventures in relation to a provision
recognised in a joint venture during the year.
The adjusting finance expense in the year
was £13.2m (2025: £14.4m) and related to
the unwinding of the discount on both the
SRT and associated review provision and
the structural defects provision. This is a
non-cash interest unwind, which was in
line with previous guidance. The adjusting
finance expense is subject to a range of
assumptions, and based on the 31 July 2026
forward-looking discount rate, we currently
anticipate an adjusting finance expense
ofaround £17m in FY27.
The total amount Bellway has set aside for
legacy buildings in England, Scotland and Wales
since 2017 is £751.9m. Demonstrating our
ongoing commitment to deliver appropriate
solutions for legacy buildings, the Group
has spent £232.0m since the start of the
remediation programme, with a remaining
provision of£519.9m at 31 July 2026.
Our experienced site remediation teams
remain focused on completing works as
promptly and efficiently as possible. As at
31 July 2026, and including those buildings
that have been granted funding approval
bythe Building Safety Fund or ACM
Funds, 59% of Bellway’s legacy buildings
(2025: 33%) have work either complete
or underway.
“ Adjusted
operatingcashflow
increased by
36.0%to £868.6m
1,2
(2025: £638.9m).”
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 16
Net underlying finance expense
The net underlying finance expense was
£15.1m
1,2
(2025: £12.9m). This included
a non-cash interest expense of £13.4m
(2025: £14.9m) on land acquired on deferred
terms, with the decrease reflecting lower
land creditors.
Other net underlying finance expense,
including net bank interest, was £1.7m
(2025:income of £2.0m), reflecting lower
cash balances and modestly higher
borrowings during the year. The Group
remains well capitalised, with low average
net debt in FY26 of £95.5m (2025: £49.2m).
We will continue to maintain an efficient
capital structure, with the flexibility to
operate with a modest level of average
netdebt while retaining low year-end
adjusted gearing
1
(2026: 3.0%). Based on
prevailing interest rates, the net underlying
finance expense for FY27 is expected to be
around £20m
1,2
.
Profit for the year
Including our share of underlying net profit
from joint ventures of £0.2m
1,2
(2025: loss
of£1.5m), underlying profit before taxation
increased to £305.7m
1,2
(2025: £289.1m).
Reported profit before taxation was £270.2m
(2025: £221.9m).
The income tax expense was £76.8m
(2025: £64.4m), reflecting an effective tax
rate of 28.4% (2025: 29.0%). The effective
tax rate reflects the standard rate of UK
corporation tax of 25% and also includes the
Residential Property Developer Tax (RPDT),
which is charged at a rate of 4% of relevant
taxable profits.
The underlying profit for the year was
£218.7m
1,2
(2025: £209.7m) and basic
underlying EPS was 187.8p
1,2
(2025: 176.7p).
After considering the adjusting items,
reported profit for the year was £193.4m
(2025: £157.5m) and basic EPS was 166.1p
(2025: 132.8p).
Strong balance sheet
andfinancial position
In line with our strategy, Bellway has
madestrong progress in reducing the
capital invested in land and WIP, supporting
improved cash generation and capital
efficiency. Total inventories reduced by
£224.1m to £4,614.0m (2025: £4,838.1m),
with the combined value of land and WIP
decreasing by £254.8m.
The carrying value of land reduced by 6.1%
to £2,350.6m (2025: £2,502.9m), reflecting
our disciplined approach to land investment,
while WIP decreased by 4.7% to £2,062.5m
(2025: £2,165.0m). With the number of
sales outlets broadly stable, the value of
show homes was similar to the prior year
at £143.3m (2025: £144.9m). The value of
part-exchange properties rose to £57.6m
(2025: £25.3m), reflecting the greater use
ofpart-exchange as a controlled selling tool
in a slower housing market.
The Group ended the year with net cash
of£157.7m
1
(2025: £41.8m), after dividends
and share buyback cash expenditure
totalling £223.7m (2025: £70.0m).
Land expenditure, including payment of
land creditors, was £496m (2025: £472m),
and principally related to contracts
approved in previous financial years.
Committed land obligations reduced to
£265.0m (2025: £337.6m) and adjusted
gearing, including land creditors, remained
low at 3.0%
1
(2025: 8.3%).
Capital allocation and delivering
value for shareholders
Our capital allocation framework is centred
on maintaining balance sheet strength
and low gearing, while improving capital
efficiency to enhance cash generation.
This provides the flexibility to balance the
investment requirements of the business
with sustainable returns to shareholders.
Our refreshed approach to capital efficiency
has been embedded across the Group and
is delivering positive results, with adjusted
operating cashflow increasing by 36.0%
to £868.6m
1,2
(2025: £638.9m). We will
continue to drive efficiencies for strong
cash generation, enabling the Group to
meet its operational requirements and
legacy building safety obligations while
funding regular dividends and additional
shareholder returns.
The £150m share buyback launched on
14 October 2025 completed in August 2026.
The Board intends to return a further £150m
to shareholders through a share buyback
programme during FY27, the first tranche
of which was launched on 1 September
2026. The Board has today increased the
size of the first tranche from £50m to £75m
(subject to the same terms and otherwise
on the same basis and for the same purpose
as set out in Bellway’s announcement on
1 September 2026). The remaining £75m of
the £150m FY27 programme is expected
to be executed in one or more further
tranches, which will be announced in due
course. The ordinary dividend also remains
a core component of shareholder returns.
The proposed total dividend has increased
to 75.0p per share (2025: 70.0p) reflecting
underlying dividend cover of 2.5 times
1,2
.
Net assets reduced slightly to £3,520.8m
(2025: £3,556.2m), with the key drivers being
profitability in the year offset by dividend
payments of £83.9m, and accounting for
the £150.9m irrevocable share buyback
programme announced in October 2025.
The positive effect of the share buybacks
undertaken during the year supported a
4.2% increase in NAV per share to 3,116p
1
(2025: 2,989p). Improved asset turn drove
further progress in returns, with underlying
RoCE increasing to 9.2%
1,2
(2025: 8.7%),
despite the lower underlying operating
margin. Underlying pre-tax RoE also
increased by 50bps to 8.7%
1,2
(2025: 8.2%).
Our focus remains on disciplined capital
allocation, strengthening cash generation
and driving further improvements in
operational and capital efficiency.
Together with our strong balance sheet,
these priorities provide the resilience and
flexibility to navigate near-term market
challenges, while supporting shareholder
returns through the cycle and a recovery
inRoE as market conditions improve.
Shane Doherty
Chief Financial Officer
12 October 2026
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 17
Simon Scougall
Chief Commercial Officer
Chief Commercial Officer’s Review
“ We are proud that91%
of employees consider
Bellway as ‘agreat
place to work’
demostrating the
strength of our culture.”
Land
The strength and depth of our land
bank supports our growth plans and
wehave remained disciplined, and highly
selective, with our land investments.
We have contracted to purchase 8,578
plots (FY25: 8,120) across 35 sites
(FY25: 51) during the year. 78% of these
plots were contracted in our Northern
divisions, supporting volume in stronger
sales markets.
The strategic land bank has been further
strengthened to support our longer-term
growth ambitions and, during the year,
weentered into option agreements to buy
24 sites (FY25: 30).
Our strategic land bank comprises around
48,000 plots (FY25: 47,800) and we remain
focused on delivering a growing proportion
of our volume output from strategically
sourced land, with a target of over 20%
inthemedium term. As at 31 July 2026,
wehad 83 live planning applications
running,amounting to around 14,600 plots.
48,000
strategic land bank plots (2025: 47,800)
Bellway Home Space
In January 2026, we officially opened Bellway
Home Space, a cutting edge 135,000 square
foot timber frame facility in Sutton-in-Ashfield,
marking a major milestone in Bellway’s
commitment to building more sustainably,
efficiently and responsibly. This facility
has been developed in partnership with
Donaldson’s Timber Systems, is equipped
with advanced robotic machinery from
Randek, and the factory showcases innovation
in modern construction.
Bellway Home Space has already produced
228 timber frame kits for our developments,
with a target to be producing 3,000 homes
per year by 2030.
Health and safety
As our number one priority, we always
promote all aspects of health and safety,
throughout all of our operations, in the
interests of employees, subcontractors,
suppliers, customers and visitors to our
sites and premises. This is further supported
byour Responsible Business strategy
andthe Building sustainable homes pillar.
During the year we implemented multiple
health and safety initiatives including a
national occupational health surveillance
strategy as well as introduced a behavioural
safety training course for forklift drivers.
We launched a monthly Health and Safety
Focus update on our intranet, providing
employees with regular communications
on key health and safety matters across
the business, including topics such as fire
prevention. The Board receives external
advice and training from specialist advisers
on both the Directors’ and the Company’s
regulatory obligations. Health and safety
issues are considered at each Board
meeting and are addressed in the Strategic
Report, and on the corporate website
www.bellwayplc.co.uk/sustainability.
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 18
During the year, a contractor sadly lost
their life following an incident at one of our
sites operated by a third party principal
contractor, in Durham. The Board extends
its sincere condolences to the individual’s
family, friends and colleagues. The Group
remains committed to maintaining the
highest standards of health and safety
and has fully cooperated with the relevant
authorities and will continue to do so in their
investigations of the incident.
Read more about health and safety
onpage49
Building safety
Bellway has continued to be proactive
towards building safety and to delivering
our remediation works, having set aside
a significant provision for legacy building
safety improvements since 2017. We have
a standalone Building Safety division,
dedicated to the remediation of buildings,
over 11 metres in height, where life-critical
fire safety issues have been identified.
All buildings in England and Wales within
our legacy portfolio were fully assessed
by the end of the year and the team
are now focussed on procurement and
starting works.
Read more on page 23
Future talent
We have continued to expand our future
talent and social mobility initiatives,
reflecting our commitment to widening
access to the housebuilding industry.
During the year, 85 new apprentices joined
Bellway (FY25: 71). In September 2025,
wewelcomed 23 new graduates (FY25: 23)
onto the Good Foundations programme
and seven internal candidates joined the
programme, having been identified as
emerging leaders. We are currently in the
process of reviewing and refreshing our
graduate programme offering for a new
implementation and intake during 2027.
We currently have 169 apprentices and 35
trainees who are supported via our various
future talent programmes. We are proud to
be members of the 5% club, demonstrating
our commitment to creating high-quality
earn-and-learn opportunities and supporting
the development of future talent.
Our ongoing partnerships with Regeneration
Brainery and Percy Hedley Foundation,
helpsupport our increased engagement
withyoung people. These initiatives
complement our graduate, apprentice,
andtrainee programmes, ensuring a strong
and diverse pipeline of talent for the future,
and we are pleased to report that 8.0%
(FY25: 7.2%) of our workforce are currently
engaged in ‘earn and learn’ roles, reflecting
our commitment to continuous development
and inclusive career pathways.
In FY26, through our partnership with
Leonard Cheshire, we have provided 13
three-month work placements as part
of theChange 100 programme (FY25: 11).
We have also supported 5 Access Intern
placements through Variety, the children’s
charity (FY25: 4).
We have continued our support for the
HBF’s Women in Home Building programme.
In November 2025, we supported a further
11placements. We are continuing our
effortsto increase female representation
insite-based roles and building a more
diverse workforce as a whole for the future.
Learning and development
During the year, we continued to invest inthe
development of our people, enhancingskills
and strengthening capability across the
business. This ensured our teams were well
equipped to deliver operational excellence
and support the successful delivery of
strategic and transformational initiatives.
Our leadership pipeline has continued to
grow, and be strengthened, through a suite
of structured programmes, aligned to both
career-stage and organisational needs.
Our programmes include our Good
Foundations programme which supports
graduates and emerging leaders. Our CMI-
accredited middle management course,
Elevate, has 77 middle managers currently
participating, with another 51 participants
having already completed the programme.
Architecture, another CMI-accredited
programme, focuses on senior leadership
capability and 37 of our senior leaders are
completing the programme.
We also launched our partnership with
Henley Business School development
programme in January 2026 which has
been designed to support individuals
identified through our succession planning
framework as having potential to progress
to Managing Director level. Currently 11
leaders have completed the executive-level
learning programme.
Collectively, these programmes provide
aclear and progressive leadership pathway,
building capability at all levels and
ensuring alignment with Bellway’s values,
behaviouralexpectations, and long-term
succession planning. We are proud that
91% of employees consider Bellway a ‘great
place to work’, demonstrating the strength
of our culture and our commitment to
creating apositive employee experience.
We also have a number of strategic learningand
development initiatives, whichwere delivered
or progressed during the year,including:
– Career Pathways: the development
androllout supporting career clarity
andinternal mobility in partnership with
Skills Builder UK;
– Future Homes Standard training:
buildingcapability for evolving regulatory
requirements including Timber Frame
andAir Source Heat Pumps;
– Knowledge Explorer for Construction:
enhancing access to technical knowledge
in partnership with NHBC to ensure
training was targeted to individual
needs and specific skills gaps rather
than generically;
– Customer Care development: investment
in vulnerable customer and complaints
handling training; and
– Values and behavioural framework:
introduction of our new Bellway values
and the revised behavioural expectations
across all roles. See page 67 for more
details on our Bellway values.
These initiatives are supported by a
blendedlearning approach, focused on
embedding learning through practical,
on-the-job, experience.
Simon Scougall
Chief Commercial Officer
12 October 2026
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 19
Responsible Business
Recent progress across our key Responsible
Business priorities is outlined below.
Creating communities
Delivering high-quality homes and
excellentcustomer service is central
toour operating model. Strong customer
outcomes support our reputation,
helpmaintain demand for our homes and
reduce operational and commercial risk.
Bellway retained its position as a 5-star
homebuilder
4
for the tenth consecutive
year in the HBF Customer Satisfaction
Survey. Our focus on construction quality
was reflected in a further improvement
inour NHBC Construction Quality Review
score of93.6% (2025: 92.9%), while
47site managers received NHBC Pride
intheJob Awards.
Our contribution to the communities in
which we operate remained an important
priority. During the year, our colleagues
surpassed our target of 4,000 volunteering
hours, Bellway’s fundraising for Cancer
Research UK surpassed £5m and we
launched a new national partnership with
Variety to support children’s mobility
and inclusion.
Building sustainable homes
Reducing the environmental impact of our
operations and homes supports operational
efficiency, helps manage evolving regulatory
requirements and ensures our products
remain aligned with customer expectations.
Good progress was made against our
carbon reduction targets, which have been
validated by the Science Based Targets
initiative (SBTi). Scope 1 and Scope 2
carbon emissions have reduced by 49.2%
since our2019 base year, tracking ahead
of our target of a 46% reduction by 2030.
During the year, we also published our first
Climate Transition Plan, setting out the
actions required to achieve our ambition
ofreaching net zero by 2045.
Jason Honeyman
Chief Executive
This progress was recognised externally,
with Bellway ranked as the leading national
housebuilder in the NextGeneration
sustainability benchmark and receiving
aGold award. Bellway also qualified for the
London Stock Exchange’s Green Economy
Mark for the first time.
Valuing people
Attracting, developing and retaining
talented employees is critical to maintaining
operational excellence and supporting
long-term growth. Our priorities include
employee engagement, skills development,
health and safety and fostering an inclusive
workplace culture.
Employee engagement remained strong,
with 91% of colleagues (2025: 91%) stating
that they would recommend Bellway as
‘agreat place to work’. As a fully accredited
Living Wage Employer, covering both
directly employed and subcontracted
labour, Bellway invests in apprenticeships
and graduate development programmes
to strengthen our talent pipeline and
help address skills shortages across the
construction industry. Maintaining a skilled,
engaged and motivated workforce is critical
to operational performance, customer
outcomes and the sustainable growth
ofthe Group.
Further information on our Responsible
Business priorities, performance and
stakeholder engagement is available
onour website.
Jason Honeyman
Chief Executive
12 October 2026
Operating responsibly is
fundamental to Bellway’s
long-term success.
OurResponsible Business
framework brings together the
priorities most important to the
resilience and sustainable growth
of the business, including build
quality, customer satisfaction,
our people, environmental
performance andstrong
governance. By focusing on
theseareas, we strengthen
operational performance,
managerisk effectively and
create long-term value for
our stakeholders.
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 20
The Marketplace
While the underlying fundamentals of our
industrycontinue to be strong, the short-term
outlook for UK housing remains challenging,
particularly for first-time buyers who face
affordability and demand-side constraints.
We recognise the Government’s commitment to increasing
housebuilding, but continue to urge them to do more through
accelerated planning and supply-side reforms. Bellway remains
wellpositioned to capitalise on the longer-term opportunities
todeliver much needed high-quality and affordable new homes.
UK housing sector
Strategic priorities key
Drive a long-term improvement
inunderlying pre-tax RoE.
Deliver long-term volume growth.
Operate responsibly and
sustainablythrough our
ResponsibleBusiness strategy.
Principal risks key
1
Climate change and sustainability
2
Construction quality and innovation
3
Economic and political outlook
4
Health, safety and environment
5
IT resilience and security
6
Land and planning
7
Legal compliance and building safety
regulatory compliance
8
Supply chain resilience
9
Talent management
Economic backdrop
andhousing affordability
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 and fixed-rate mortgage costs
increased to reflect heightened inflationary
risks, given the resumption of hostilities
inthe Middle East.
Overall, mortgage interest rates
wererelatively stable through FY26 and,
together with ongoing wagerises and limited
house price inflation, this led to a gradual
improvement inaffordability. Data released
in early Augustby HMRC showed just under
1.2 million housing transactions in the year
to June 2026; however, Bank of England
data showed net mortgage approvals for
house purchases fell to 56,053 inJuly down
15% year on year.
1.1%
increase in GDP
(year to June 2026)
3.75%
Bank of England base rate
(September 2026)
Recent UK economic growth has been low,
with GDP in the quarter to 30 June 2026
increasing by 1.4% compared with the same
quarter in 2025, and by 0.5%compared to
the quarter to 31 March 2026.
The pace of future economic growth is
expected to remain modest, with the
Bankof England’s September 2026
projections implying annual GDP growth
will be around 1.2% and market consensus
including the IMF ofa1.2% rise in 2026.
The ONS estimated UK unemployment rate
increased by 0.2percentage points in the
year to July 2026, but decreased by 0.1
percentage points to4.9% in the quarter,
still at the highest level since early 2021.
Against this backdrop, and with further
uncertainty about potential tax rises in
the Government’s autumn Budget, overall
consumer confidence remains fragile.
UK inflation has fallen significantly from
thehighs of circa 11% in 2022, allowing
the Bank of England to lower the base
rate overthe year to August 2026 to
3.75%, down from 4.0%. However, the rate
of reduction has slowed considerably
reflecting global instability; there was no
reduction between December 2025 and
September 2026 and atthe September
MPC three of the nine Committee
members voted for a 0.25% increase.
Link to strategic priorities
Link to principal risks
3
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 21
The Marketplace (continued)
Planning system
andhousing delivery
Labour and materialcosts
This was reflected in the low growth
inplanning approvals granted for new
residential units. According to data from
the Home Builders Federation, planning
approvals in England rose by 2% to circa
114,000 units in the first six months of
2026. However, the number of residential
units approved dropped by 18% during the
secondquarter of 2026 and was 8% lower
than a year ago.
In the years ahead, we continue to
believe that our industry should benefit
from planning reforms, including the
reintroduction of mandatory housing
targets. However, to complement these
supply-side measures and long-term
fundingfor social and affordable homes,
andto meet its ambitious housing targets,
the Government also needs to address
first-time buyer demand-side constraints.
During the year, overall build cost
inflation remained relatively steady
and was runningin the low single digits.
Reflecting the industry-wide decline
in construction activity and the fall in
energy costs since their peak in 2022,
there are presently good levels of
materials availability across the Group
andmodest overall material cost inflation
on new tenders.
Bellway’s outlet opening programme has
provided good visibility on pipeline work
for subcontractors and remains beneficial
when negotiating new labour contracts
and pricing. Requests for subcontract
price increases remain low for most trades
andtypical minimum fixed-price periods
of12 months are being secured.
Our experienced procurement teams
continue to work closely with our wide
range of supply chain partners to ensure
we are prepared for our targeted increase
in volume output in the current financial
year and beyond.
The Government’s overhaul of the
planningsystem to support its ambitions
to deliver 1.5 million new homes in England
– equivalent to 300,000 new homes per
annum – made very slow progress in
the year, and we continue to experience
delays to planning decisions as local
authorities take time to adopt new local
plans and the updated National Planning
Policy Framework.
114,013
granted planning permission in England
in the first half of 2026 (HBF)
4.9%
UK unemployment rate
inthe quarter April – June
2026 (ONS)
Link to strategic priorities
Link to strategic priorities
Link to principal risks
2
3
8
Link to principal risks
3
6
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 22
Future Homes Standard (FHS) Building
Safety Act
The UK’s FHS isanincoming regulatory
requirement to drive improvements
inenergy efficiency anda reduction
inthe carbon emissions of new homes.
Under the Government’s proposed
regulations, theFHS will require new
homesto produce between 75%and80%
less carbon emissions than homesbuilt
to standards applicable through to 2022.
The FHS is part of the Government’s
ambition to achieve net zero carbon
emissions by 2050, and will come into
forceon 24 March 2027.
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 since the Grenfell
tragedy in 2017.
Government guidance and regulations
in relation to legacy building safety
have evolved since 2017. In April 2022,
Bellwaysigned the Government’s
BuildingSafety Pledge and, in March
2023, the Self-Remediation Terms,
both of which form part of an industry
commitment to address building
safety defects.
In December 2024, following a period
ofindustry-wide delays in obtaining
buildingaccess licences, developers
andtheGovernment committed to
working together, through the joint plan,
to accelerate developer-led remediation.
Our dedicated Building Safety division
andexperienced site remediation teams
remain focused on completing works
aspromptly andefficiently as possible.
Link to strategic priorities
Link to strategic priorities
Link to principal risks
4
7
Link to principal risks
1
2
7
Our climate transition plan
In response to the challenge of climate
change, we have made carbon reduction
a central business priority within our
long-term strategy.
During the year, we published our first
Climate Transition Plan structured around
the three pillars of the Transition Plan
Taskforce (TPT): Ambition, Action and
Accountability. It outlines how we will
achieve our ambitious goal of reaching
net zero by 2045, informed by the
recommendations of the TPT. We also
carried out a gap-analysis against the
19sub-sections of the TPT, to identify
where we can improve in future.
This was a significant milestone for
Bellway, as we set out how we will deliver
long-term environmental responsibility
andprepare for the future.
Legal and regulatory changes
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 23
Business Model
Building homes that last
From selecting the right land to
managing the planning process,
and from design to construction,
we carefully manage each stage
of the housebuilding process to
safely deliver high-quality homes.
We provide five-star customer
service, putting customers at
theheart of everything we do.
Our Responsible
Business strategy
Creating communities
Building sustainable homes
Valuing people
For more information on our Responsible
Business strategy, seepages 29 to 49
Creating long-term value
1
Select the
right land
2
Manage the
planning process
4
Sell homes and
deliver excellent
customer service
Our
customers
3
Design and
construct
high-quality
homes
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 24
1
Select the
rightland
Selecting the right land
– We are highly selective in our land
investments, concentrating on areas
with customer demand. This allows
us to maintain a strong land bank and
leverage compelling financial returns.
– Using longstanding relationships
and localised expertise, we can
select land that offers favourable
opportunities and strategic pipelines
for continued growth.
– We tightly control the number of large,
long-term sites to avoid having excess
capital tied up.
How we assess
– Viability assessments and appraisals
prepared at a local level are assessed
atall levels of the business.
– Executive Directors provide final
approval to purchase a site, with full
Board approval required on certain
sites depending on the nature and
valueofthe proposal.
– Land opportunities are considered
where they meet, or exceed,
both financial and non-financial
acquisition criteria.
– Investing in sustainable sites
is an important criterion, to
provide customers with access
to infrastructure, nature,
and sustainability.
– Consider social and environmental
risks such as flood risks and climate
change risks.
– Biodiversity Net Gain (BNG) is an
increasingly key factor in site selection,
and is now assessed before sites are
contractually secured.
How we measure performance
A robust strategic land bank is vital
forBellway to achieve strategic volume
growth targets. We link part of the Executive
Directors’ bonuses to the delivery of a
sufficient land bank to meet our growth
aspirations. We also monitor the following
KPIs and performance measures:
– short-term land bank;
– strategic land bank;
– sufficient land bank plots with DPP;
– gross margin;
KPI
– underlying gross margin; and
KPI
– RoCE.
KPI
Read more on page 10
Risks identified
– Inability to source suitable land at
appropriate gross margins and RoCE.
– Delays and complexity in the
planning process.
How we manage risk
Through a strong balance sheet,
cashresources and long-term committed
debt financing arrangements, the Group
has been able to continue its disciplined
approach toland acquisition.
Read more on page 55
Link to Responsible Businessstrategy
Read more on pages 29 to 49
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 25
Managing the planning process
– Divisional and Group planning teams
work closely with local authorities
and communities to obtain DPP to
construct homes that reflect local
planning requirements.
– We progress a combination of medium-term
pipeline sites and land from the strategic
land bank through the planning system
toensure a steady supply of sites.
How we assess
– We have continued to embrace
BNGrequirements by committing to
designingschemes that deliver more
than the minimum 10% gains through
theBellway BNG+ promise. This applies
toall new sites submitted to planning
fromSeptember 2024.
– We consult local residents during the
planning process to help us build homes
customers desire locally.
– We make contributions to local
communities through Section 106
(England and Wales) and Section 75
(Scotland) contributions, Community
Infrastructure Levy payments (CIL),
and through the provision of the New
Homes Bonus.
How we measure performance
We monitor the following KPIs
andperformance measures:
– number of plots in the pipeline;
– number of plots in strategic land bank –
positive planning;
– number of plots in strategic land bank –
longer-term interests; and
– number of plots acquired with DPP.
Read more on page 10
Risks identified
– Delays, increasing complexity
andcostinthe planning process.
– Delay or failure to obtain planning
permission if any application is not
10%BNG compliant.
How we manage risk
– Planning teams build collaborative
relationships with local authorities,
communities and interest groups.
– The expertise in the land and planning
teams reduces risks, adds value and
enables higher returns.
Read more on page 55
2
Managing the
planning process
Link to Responsible Businessstrategy
Read more on page 29 to 49
Business Model (continued)
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 26
Design and construct
high-quality homes
– By securing high-quality building materials
at competitive prices, we can deliver
developments on time, and within budget
to support margin resilience and enhance
customer satisfaction.
– Through our Bellway Collection of
standard house types, we can streamline
build processes and reduce costs, while
meeting regional planning requirements.
– Through the Build Right programme we
ensure customers only move into their
new home when it is ready.
– We are strengthening partnerships with
subcontractors, consultants, suppliers,
and manufacturers to build a more
sustainable and integrated value chain.
– We have constructed several exemplar
homes on a trial basis. These pilot projects
provide valuable insights into emerging
regulatory requirements and evolving
customer expectations, positioning us
tolead in sustainable development.
How we assess
– We ensure compliance with technical,
health and safety, and other
regulatory requirements, and internal
high-quality standards.
– We regularly monitor and review
the health, safety and wellbeing of
employees, subcontractors and visitors
to developments.
– We maintain long-term working
relationships with subcontractors and
supply chain partners to reduce health
and safety risks and to ensure commercial
availability and quality of materials
and labour.
– We ensure build rates are consistent
with sales rates to avoid unnecessary
capital inefficiencies.
How we measure performance
We monitor the following KPIs
andperformance measures:
– RIDDOR;
– Pride in the Job Awards;
– near-miss incidents reported; and
– total home completions.
Read more on page 10
Risks identified
– Shortages of building materials and
appropriately skilled subcontractors
atcompetitive prices.
– A serious health and safety or
environmental breach and/or
incident occurs.
How we manage risk
– We employ individuals with construction
experience who maintain strong
relationships with skilled subcontractors
and consultants.
– Regular reviews of health and safety
procedures are carried out to ensure
alignment with industry best practices,
including mandatory site inductions,
toolbox talks and workshops.
Read more on pages 56
3
Design and
construct
high-quality homes
Link to Responsible Businessstrategy
Read more on pages 29 to 49
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 27
Sell homes and deliver
excellentcustomer service
– The recent rollout of digital sales offices
provides customers with a personalised
and streamlined experience, enhanced
convenience and engagement.
– Each division is supported by dedicated
customer care teams, supported by
the Customer Care Director (Group
Office), ensuring consistent service
andrapid response.
– The Customer First initiative remains
akey driver of continuous improvement
inbuild quality and service delivery
acrossall touchpoints.
– Commitment to excellence is reflected
inachieving the HBF 5-star homebuilder
status forthe tenth consecutive year.
4
Sell homes and
deliver excellent
customer service
– The subcontractor portal enables
efficientmanagement of customer-
reported issues, improving resolution
times and accountability.
– As a member of the New Homes Quality
Board (NHQB), customers benefit
from the protections offered by the
NewHomesQuality Code (NHQC) and
theNew Homes Ombudsman Service.
– Customer handover packs contain
information on sustainable travel,
local recycling centres, and energy
efficiency advice.
How we assess
– We proactively seek feedback through
Trustpilot to monitor performance and
identify opportunities for improvement.
– We regularly assess the post-completion
service for customers to ensure compliant
and effective processes and procedures.
– Through the Responsible Business
strategy, we monitor and review a range
of KPIs and targets to ensure we meet
customer demand and expectations.
How we measure performance
We monitor the following KPIs
andperformance measures:
– total home completions;
– order book value;
– NHBC overall score; and
– total reservation rate.
Read more on page 10
Risks identified
– Changes in the external environment
(including, but not limited to, house
price inflation, interest rates, mortgage
availability, unemployment, and government
policy) reduce the affordability of new
homes, resulting inreduced sales rates.
– Failure to be responsive to customer
demands and feedback.
– Reputational risk if customer service
is inadequate.
– Failure to meet local customer needs
and preferences.
– Failure to comply with
regulatory requirements.
How we manage risk
We provide regular training to all disciplines
within the business to ensure all functions
have the necessary skills andknowledge
to deliver the highest levels of customer
service. All employees are required
to complete annual training on the
NHQB requirements.
Read more on page 54
Link to Responsible Businessstrategy
Read more on pages 29 to 49
Business Model (continued)
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 28
Our approach to responsible business
explains how we deliver homes and
communities in a way that supports
customers, communities, employees,
partners and the long-term resilience
ofthe business.
Responsible business is not a separate
programme sitting outside Bellway’s strategy.
It is part of how the business plans, builds,
sells and supports homes andcommunities.
This new architecture helps focus Board
and management attention on the issues of
greatest strategic and financial materiality,
while continuing to support a broader
programme of operational activity across
the business.
For more information see our Responsible
Business Report at bellwayplc.co.uk/
sustainability
At Bellway, we build sustainable homes,
shaped around you, styled for life.
Creating
communities
Building
sustainablehomes
Valuing people
We build places where people can thrive
Placemaking and
Community engagement
Charitable support
Nature
We deliver homes the right way
Customer experience
Building compliance
andquality
Climate change
Resource efficiency
Responsible sourcing
We support and encourage
peopletoreach their potential
Employer of choice
Training and
skillsdevelopment
Health and safety
Our approach to ResponsibleBusiness
Our purpose
Our Responsible Business strategy
“ Responsible
business is part of
how the business
plans, builds,
sellsand supports
homes and
communities.”
Shane Doherty
Chief Financial Officer
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 29
Highlights
Pride in the Job Awards in FY26
47
Overall Combined HBF Score
4.38
Average BNG on newly secured sites (%)
12.10%
Cancer Research UK fundraising total
£5.33m
CDP Climate Score
A-
2026 progress
Green Economy Mark 2026
Bellway has been included in the 2026 Green Economy
Mark cohort, following an event to open the market,
attended by Simon Park, our Head of Sustainability,
celebrating the latest organisations driving progress
across the green economy.
The Green Economy Mark, awarded through the
London Stock Exchange, recognises companies
and funds that are contributing meaningfully
to environmental sustainability and supporting
the transition to a low-carbon economy. As part
of this year’s cohort, Bellway is among a group
of organisations helping to shape the future of
sustainable growth.
Being part of the Green Economy Mark cohort
reinforces our commitment to delivering more
sustainable low-carbon homes and reducing the
environmental impact of our operations. It also
places the business alongside leading organisations
that are actively contributing to the UK’s transition
toagreener economy.
Responsible Business strategy (continued)
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 30
Creating communities
Placemaking and Community engagement Charitable support
We launched our Placemaking Policy with
our divisions. This details best practice
when it comes to creating communities,
and will support our planning applications.
Wealso developed a complementary
Community Engagement Procedure,
whichwill help to ensure the views
ofkeylocal stakeholders are reflected
inthe developments we create.
We met our target for each division toengage
with two secondary schools, engaging with
684,049 students at634schools across
Bellway in FY26.
Read our Responsible Business Report at
bellwayplc.co.uk/sustainability
In December 2025 we exceeded our
long‑term fundraising goal of £5m for Cancer
Research UK, by reaching £5.2m. In 2026 we
widened our charity partnerships, now also
working with Variety, the Children’s Charity.
As at July 2026, wehad raised £266,742
for Variety, which isused to support
youngpeople with illness.
In FY26 we also started our partnership
with Neighbourly, the volunteering
platform. This partnership has delivered
a step‑change in volunteering across
Bellway, removing barriers and enabling
us to reach over 4,115 hours of staff
time dedicated to good causes. We are
excited to continue our partnership with
Neighbourly into FY27.
We build places where people can thrive. This pillar brings together Bellway’s activity on place making, community engagement,
charitablesupport and nature, showing how responsible development contributes to attractive, resilient and connected communities.
Customers and Communities
HBF 9-month survey
(out of 5)
4.19
Target 4.15
2
026
4.19
Charitable engagement
Cancer Research UK fundraising total (£m)
£5.33m
(as at 31 July 2026)
2
026
2
025
2
024
5.33
4.57
3.76
KPI KPI
Colleagues from our Group Office
andNorthEast division volunteering
forthecharity,Cashfor Kids.
The launch of our new national charity
partnership with Variety, The Children’s
Charity, in February 2026.
The scoring methodology for the HBF
survey was revised in 2026 and no
comparable prior‑year data is available.
£2.1bn
contributed to gross value add
throughhousebuilding activities
GovernanceStrategic Report Accounts Other Information
Bellway p.l.c. Annual Report and Accounts 2026 31
Creating communities (continued)
Responsible Business strategy (continued)
Taskforce on Nature-related Financial Disclosures (TNFD)
Following our initial TNFD‑aligned disclosure
in FY25, we have worked to improve our
knowledge of nature‑related risks and
opportunities and made progress against
all areas of our voluntary TNFD‑aligned
disclosures. We updated our FY25 Physical
Climate Risk Analysis of 100+ Bellway
locations, with nature‑specific impact
markers. We also looked at three key
materials; timber, bricks and steel lintels,
to assess how their nature‑related impacts
affect our business, see page 35.
Governance: biodiversity is embedded
intoour new Responsible Business strategy.
The Board is accountable for the strategy
and is supported by the Responsible
Business Steering Group, Business
Sponsors and Leadership Team.
Strategy: we recognise that our success
depends on nature, from healthy
biodiversity to sustainable timber and
water resources, all of which are vital
tohousebuilding and the ongoing needs
of our customers. We embed BNG into
the planning process for all our sites,
acting as a fundamental requirement for
responsible development.
Risk and impact management: our TNFD
reporting continues to evolve. In FY26,
westrengthened how we identify, monitor,
and manage nature‑related risks across
our value chain, including tracking progress
against our BNG+ commitment, wildlife
friendly fittings, and supply chain impacts.
Metrics and targets: Bellway tracks
nature‑related performance through metrics
on BNG, ecological enhancement, and the
installation of nature‑positive features.
Our main target is to deliver the Bellway
BNG+ promise on all new sites.
Nature
Bellway’s approach to nature and
biodiversity supports responsible land
development, planning readiness and
long‑term stewardship of communities
andnatural assets.
Biodiversity Net Gain (BNG)
Bellway continued to drive the housing
sectors’ approach to BNG. During FY26,
wedelivered an average gain of +12.10%
per site. In situations where onsite
BNG delivery was not achievable we
continue to work with our trusted
network of high‑integrity offsite habitat
banks to provide the best solutions for
our customers.
Plantlife update
FY26 saw us continue our partnership
with the charity Plantlife. This is aimed at
helping us amplify the benefits of nature,
both to our internal colleagues and to our
customers. Following the success of our
pilot ‘at home with nature’ show garden
in FY25, we completed a comprehensive
review of this approach and will be using
this learning to inform the design of future
nature‑positive show home gardens into
the next financial year.
Homes for Nature
As a signatory of the Homes for Nature
pledge, we are committed to installing
wildlife features across all our new
developments, starting from FY24.
This includes Hedgehog Highways,
Bat Boxes and Swift Bricks. In total,
wereported 7,473 features installed
acrossBellway developments.
“ Our collaboration with Bellway makes
the most of our combined expertise,
supporting knowledge exchange
andworking towards better places
forpeople and nature.”
Sam Braine,
Head of Consultancy, Plantlife.
Nature
Average BNG on newly secured sites
(%)
12.10%
Target 10%
2
026
2
025
12.10
12.30
KPI
Read our Responsible Business Report
at bellwayplc.co.uk/sustainability
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 32
B
B
A
A
A
B
C
A(i)
A(ii) B
C
C
C
D
Key
Alignment
Partially aligned
Pending alignment
G
o
v
e
r
n
a
n
c
e
M
e
t
r
i
c
s
a
n
d
t
a
r
g
e
t
s
R
i
s
k
a
n
d
i
m
p
a
c
t
m
a
n
a
g
e
m
e
n
t
S
t
r
a
t
e
g
y
1
3
24
1
We embedded nature intoour new
Responsible Business strategy,
ensuring thatit continues to be
acentral and positive theme inour
business activity.
2
We refined the process
offront‑loading assessment
ofnature‑risk as a fundamental
part of our land acquisition
process, ensuring the financial
implications of factors such as
BNG and nutrientneutrality are
fully understood before a new
siteiscontractually secured.
3
We proactively engaged with
a range of business‑critical
suppliers to understand their
approach to TNFD and the
potential nature‑based impacts
from their business activity.
4
We actively transitioned towards
prioritising the purchase of offsite
BNG units from habitat banks
which demonstrate both value
for money and a high degree of
ecological integrity, securing our
biodiversity legacy into the future.
B
B
A
A
A
B
C
A(i)
A(ii) B
C
C
C
D
Key
Alignment
Partially aligned
Pending alignment
G
o
v
e
r
n
a
n
c
e
M
e
t
r
i
c
s
a
n
d
t
a
r
g
e
t
s
R
i
s
k
a
n
d
i
m
p
a
c
t
m
a
n
a
g
e
m
e
n
t
S
t
r
a
t
e
g
y
1
3
24
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 33
Taskforce on Nature-related Financial Disclosures (TNFD) (continued)
Creating communities (continued)
Responsible Business strategy (continued)
TNFD recommended disclosures Bellway disclosures
Governance
Disclose the organisation’s governance
ofnature-related dependencies,
impacts, risksand opportunities.
Nature is embedded in our new Responsible Business strategy. The Board is responsible for, and approves, key policies, including the
Environmental Sustainability, Anti‑Slavery and Human Rights, and Sustainable Procurement policies. Our BNG+ promise, which exceeds
the statutory minimum requirement of a 10% gain, is sector leading.
Oversight of the strategy includes reviewing key policies, supply chain training, nature initiatives, and nature‑based risk escalations.
The Steering Group coordinates nature‑based updates to the Board, while Business Sponsors embed the strategy across our
procurement, land acquisition, and construction functions in day‑to‑day activities. The Leadership Team coordinates regular progress
reviews, tracking KPIs and assigning responsibilities. The Group Head of Nature and Biodiversity directs the Company’s strategic
interaction with nature and the delivery against key legislation and internal KPIs.
Bellway respects human rights across its value chain through our Anti‑Slavery and Human Rights Policy, which is applied in supply chain
assessments. Bellway currently operates in regions with no identified Indigenous Peoples affected. As part of our Responsible Business
strategy, Customers are a core business priority. We are focused on strengthening the engagement process and embedding best practice
in placemaking across our developments.
Strategy
Disclose the effects of nature-related
dependencies, impacts, risks and
opportunities on the organisation’s
business model, strategy and financial
planning where such information
ismaterial.
Bellway recognises business success depends on nature providing many of the resources, vital to housebuilding andthe ongoing needs of
our customers. We embed nature into the planning process for all our sites.
We continue to evolve our processes to capture nature‑related dependencies, impacts, risks, and opportunities, we actively manage
keyrisks such as construction resources, land and planning, and regulatory compliance through our established risk management
framework. Nature initiatives are integrated into financial planning and processes. Our ISO 14001‑certified Environmental Management
System embeds sustainability into business processes, covering Nature, carbon, waste, and resource use, and underpins the Responsible
Business strategy. These considerations play a central role in shaping our strategy reflected in our headline nature performance indicator,
the Bellway BNG+ Promise.
Bellway has a Group Head of Nature and Biodiversity who directs all our nature‑based interactions. We have built an approved network
ofcontractors to carry out BNG assessments and introduced Nature Champions across all divisions to drive best practice at a local level.
WheretheBNG+ Promise looks unfeasible, we have partnered with a range of high‑integrity offsite habitat banks to deliver our BNG
unit needs.
Bellway’s land bank spans sites across Great Britain. All English sites are screened for BNG compliance and ecological sensitivity, and we
follow asimilarly robust process for sites located in Scotland and Wales.
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 34
TNFD recommended disclosures Bellway disclosures
Risk management
Describe the processes used
by theorganisation to identify,
assess,prioritise andmonitor
nature-relateddependencies,
impacts,risksand opportunities.
Our TNFD reporting continues to evolve. In FY26, we strengthened how we identify risks across our value chain. Ournature‑based risk
and impact management is directed by our Group Head of Nature and Biodiversity, supported by approved contractors who conduct
assessments across ourbusiness. Upstream, our Responsible Sourcing Policy and supplier assessments address timber, emissions, and
human rights, with engagement through the Supply Chain Sustainability School. Downstream, in collaboration with our partner Plantlife
and our Resident Management Companies, we are embedding nature through:
– robust ecological survey and assessment;
– our BNG+ promise and design code; and
– developing our compliance with the Homes for Nature Pledge.
In FY26 we created our Bellway Climate and Nature Report. This sector‑leading approach consolidates our previous Climate risk report
and now considers the potential financial risk from both nature decline and climate change equally. A fundamental aim of this report was to
consider the nature‑based impact of Bellway’s key supply chain network, and to work with our suppliers to understand potential combined
nature impacts.
The principal risks to Bellway’s financial performance include; restriction on construction resources, land planning, and regulatory
compliance. They are reviewed at Board level and linked to broader financial and governance considerations to ensure adaptive risk
prioritisation. We will continue to engage directly with our customers through our new At Home with Nature show home gardens project,
focused on native planting, along with the supporting information provided to all Bellway customers to help them create spaces for nature
in their gardens.
Metrics and targets
Disclose themetrics and targets
used to assess and manage material
nature-related dependencies,
impacts,risksandopportunities.
Bellway tracks nature‑related performance through metrics on BNG, ecological enhancement, and the installation of nature positive
features. Ourmaintarget is to deliver the Bellway BNG+ promise on all new sites. Progress is tracked by the Head of Nature and Biodiversity
and reported totheBoard. Where onsite BNG delivery is not possible, we have developed relationships with a range of high‑integrity
offsitehabitat banks todeliverour BNG needs.
Key targets:
– deliver our BNG+ promise where practicable:
– delivery in line with the Homes for Nature pledge;
– direct positive engagement with customers; and
– establish community woodlands at strategic locations across the UK by 2030.
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 35
Building sustainable homes
Customer experience
Bellway is delighted to have been awarded
HBF 5-star homebuilder for the tenth year
in arow. With a combined score of 4.38,
weplaced second in the quality league,
above all other listed homebuilders.
Building safety & quality
Customer trust, building safety and
product quality are core to Bellway’s
licence to operate and to the long-term
value of its homes and brand.
We continued our excellent performance
at the Pride in the Job Awards, winning 47
in FY26.
In FY26, our Group Health, Safety &
Environmental team audited all 20 Bellway
divisions for compliance against both
the Building Safety Act and Construction
(Design and Management) Regulations.
We deliver homes the right way. This pillar explains how Bellway manages the quality,safety, efficiency and
environmental performance of its homes and operations, including customer experience, building safety and quality,
climate change, resource efficiency and responsible sourcing.
47
Pride in the Job Awards in FY26
For more about Pride in the Job go
to https://www.nhbc.co.uk/awards-
and-events/pride-in-the-job
4.38
Overall Combined HBF Score
Responsible Business strategy (continued)
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 36
Task Force on Climate‑related Financial Disclosures (TCFD)
Climate change
2021
Started work with the
Carbon Trust and 
Science Based Targets
initiative (SBTi)
2023
Landmark project with
theUniversity of Salford
Energy House
2025
Reduced Scope 1 & 2
emissions below our
2030 target, with a
46% reduction
Climate transition timeline
2022
‘Better with Bellway’
Strategy launched
2024
Started the roll out of
all-electric homes
2026
Launched our CTP and
net zero by 2045 goal
FY26 saw continued progress made with
the publication of our first ever Climate
Transition Plan (CTP). Aligned with the
sector-wide Future Homes Hub New
Homes Sector Transition Plan, and
produced with support from Radley Yeldar,
Lloyds Bank and the Carbon Trust, the
CTP makes clear our net zero ambitions,
aheadof our centenary, and prepares
us for the incoming UK Sustainability
Reporting Standard S2.
We continued to improve our CDP Climate
performance, reaching an A-, up from a B
in FY25.
Our greenhouse gas (GHG) emissions
continue to reduce ahead of the near-
term target date of 2035. Scope 1 and
2 emissions are now 49.24% below
the FY19baseline, while our combined
Scope3emissions are now 16.35% below
the FY23 baseline.
Our GHG emissions data is assured
bythe Carbon Trust, read more
onpage46
Download our ClimateTransition Plan
from bellwayplc.co.uk/sustainability
49.24%
reduction in Scope 1 and 2 emissions
from FY19 baseline
16.35%
reduction in combined Scope 3 emissions
from FY23 baseline
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 37
Governance framework
Our FY26 Sustainability Strategic Review also considered governance. From FY27,
we are operating a more streamlined governance framework, with reporting directly
to the Board and management oversight provided by the CFO-led RBSG:
In accordance with the UK Listing Rules,
we confirm that Bellway has made
disclosures consistent with the 11 TCFD
recommended disclosures.
In FY26, we continued to quantify
climate-related risks across our business,
including deeper analysis of risks associated
with a selection of key materials. Our refreshed
Responsible Business strategy is designed
to help realise identified opportunities,
whilemanaging climate-related risks through
strategic and financial planning. Further detail
is included in the Responsible Business section
of our Annual Report andinour Responsible
Business Report.
Our disclosure is structured around the
four TCFD pillars: Governance, Strategy,
Risk management, and Metrics and targets.
Further detail on each area is provided
inthesections referenced below.
– Governance – see page 38.
– Strategy – see page 38.
– Risk management – see page 46.
– Metrics and targets – see page 46.
This disclosure should be read alongside
Bellway’s separate Climate Transition
Plan, which provides further detail on our
climate targets, actions and governance
arrangements. We continue to monitor the
development of UK sustainability reporting
requirements, including standards based on
IFRS S1 and IFRS S2, and will consider how
future reporting changes apply to Bellway.
Governance
Climate change is treated as a principal
risk for Bellway and is overseen through
our established governance framework.
The Board retains overall responsibility for
climate-related matters, including approval
of climate-related targets and oversight
of progress against the Climate Transition
Plan. Management oversight is provided
by the CFO-led Responsible Business
Steering Group (RBSG), which oversees
implementation and performance of the
Responsible Business strategy and reports
to the Board three times a year.
Strategy
We have formalised our climate strategy
in Bellway’s first Climate Transition Plan,
published at the end of FY26. The CTP
was developed following our project with the
Carbon Trust to develop a long-term net zero
target, and sets out the actions we plan to take
to reduce emissions across Scopes 1, 2 and 3,
support business resilience and manage the
transition to lower-carbon homes.
As approximately two-thirds of our Scope 3
emissions relate to the operation of homes
after their sale, confirmation of the Future
Homes Standard in 2026 was an important
development. The FHS is a key dependency
onour sector’s path to net zero, and
supporting the transition to all-electric homes
is a key short-term focus of our strategy.
In FY26, we also conducted a Double
Materiality Assessment and Sustainability
Strategic Review, which resulted in a
refresh of our overall sustainability strategy.
This included moving from the previous
eight-pillar ‘Better with Bellway’ framework
to a more streamlined three-pillar
Responsible Business strategy.
Our progress since initially setting
science-based targets in 2022 is reflected
in our improving CDP Climate score,
whichrose from C in FY23 to A- in FY26.
Read more about the decision to discontinue
the Sustainability Committee on page 126
Chief Financial
Officer
Main Board sustainability
sponsor, with executive
responsibility for the
Responsible Business
strategy and for ensuring
that climate-related
matters are considered
through the Group’s
governance framework.
The CFO chairs the RBSG
and is supported by the
Leadership Team.
Responsible Business
Steering Group
Chaired by our CFO, the RBSG meets
three times per year, following business
sponsor meetings and in advance of
Main Board meetings. Board-level
membership ensures that senior leaders
are kept up to date with progress
against targets, emerging risks and
opportunities, and new initiatives.
Business Sponsors
Business sponsors are colleagues working at an operational level who are responsible for
delivering strategic objectives and supporting progress against key performance indicators.
Sponsors are required to provide progress updates three times per year and suggest new
targets at the end of each financial year.
Responsible Business
Leadership Team
The Leadership Team is responsible
for organising and chairing progress
meetings. It also supports key projects
that underpin the Responsible Business
strategy, including climate scenario
analysis and materiality assessments.
Audit Committee
Climate change is a
strategic risk overseen
by the Audit Committee
on behalf of the Board,
including regular
reviews of progress
against risk action
plans and assurance
outcomes and approve
relevant reports.
Board
The Main Board is
responsible for approving
climate change-related
targets. It receives
updates from the RBSG
on progress against
the Climate Transition
Plan and relevant
disclosure requirements.
Task Force on Climate‑related Financial Disclosures (TCFD) (continued)
Responsible Business strategy (continued)
Building sustainable homes (continued)
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 38
The analysis aimed to identify potential
physical risks associated with climate
change, including heatwaves, rising mean
temperatures, flooding, water stress, sea level
rise and wildfires. The nature risk assessment
identified proximity to protected locations.
The map shows the sites included
inthe analysis.
Following the initial presentation of the
findings, a climate and nature risk workshop
was held with representatives from
Group Office functions. The objective of
the workshop was to review the findings
and assess current control measures.
Bellway has already implemented a range
ofmitigation strategies aimed at managing
theidentified risks.
The climate models and transition scenario
assumptions used for our updated FY26
analysis draw on data and assumptions from
the following sources:
– Intergovernmental Panel on Climate Change;
– Representative Concentration Pathways (RCP);
– International Energy Agency’s World
Energy Model; and
– Network for Greening the Financial System.
Climate scenario analysis
In summer 2026, parts of the UK experienced
conditions consistent with the physical impacts
expected under climate change scenarios.
The Met Office reported that England and Wales
experienced the driest July since records began
in 1836
c
. Southern England was particularly
affected, recording only 1.9mm of rainfall,
3%ofthe long-term average for the month.
We are starting to see conditions reflected
in climate scenario analysis, including drier
summers and wetter winters. These trends
may affect construction site activity and the
performance of our homes.
In FY26 we worked again with our consultancy
partner to update our physical climate scenario
analysis. The FY26 project also assessed risks
in our supply chain, with a focus on timber,
bricks and blocks, and steel lintels. We included
nature risks for the first time, creating a joint
climate and nature risk report for Bellway.
Our climate scenario analysis covered 105
different sites, including 62 developments,
22 offices, one timber frame facility and
20 strategic land sites. We used the same
locations to assess nature-related risks.
Timeframe Year(s) Rationale
Short-term 2025–2040 The short-term timeframe supports the prioritisation
ofrisks and opportunities that may need to be reflected
inoperational, financial and capital planning.
Medium-term 2041–2060 The medium-term allows changes in physical risk impacts
to be monitored between the short and long-term
timeframes. The datasets show clear changes between
these periods.
Long-term 2061–2080 The long-term ensures that the average lifespan of homes,
which by industry guidance is typically up to 60 years,
isaccounted for.
RCPs were used to inform physical climate risk analysis, while NGFS transition pathways were used to inform transition risks and opportunities. The reactive transition scenario was
informed by the NGFS Delayed Transition pathway, which reflects delayed and more abrupt policy action.
c. www.metoffice.gov.uk/about-us/news-and-media/media-centre/weather-and-climate-news/2026/historic-july-sees-record-dryness-unprecedented-sunshine-and-exceptional-warmth
Development Site
Site type
Divisional Office Site
Timber Frame Facility
Strategic Land
Head Office
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 39
Climate scenarios Description
Proactive scenario
(<2ºC, RCP 2.6)
Low-emissions pathway where global temperatures
are kept well below 2ºC from pre-industrial levels.
Reactive scenario
(2–3ºC, RCP 4.5)
Disorderly transition pathway, where global
temperatures rise to between 2 and 3ºC from
pre-industrial levels.
Inactive scenario
(>3ºC, RCP 8.5)
High-emission pathway where global temperatures
riseabove 3ºC from pre-industrial levels.
For transition risks and opportunities,
wehave used the NGFS ‘delayed transition’
pathway, which reflects a scenario where
climate policy action is delayed, and
then accelerated, resulting in an uneven
transition to a lower-carbon economy.
Our financial impact scores are indicative
and are intended to support comparison
between risks and opportunities.
They are based on potential impacts
onBellway’s underlying operating profit,
using available internal data, external
benchmarks and scenario analysis outputs,
where appropriate. The scores should
be read as relative indicators rather than
forecasts and do not represent expected
financial outcomes.
The risk scores reflect the potential gross
financial impact before the full effect
of existing or future control measures,
unlessotherwise stated. Mitigations and
controls are considered separately through
our climate-related risk management process.
We modelled physical climate risks
across three climate scenarios (RCP 2.6,
4.5 and 8.5) to support our assessment
of climate resilience in line with TCFD
recommendations. We used RCP 4.5 as
the central case for detailed physical risk
quantification, while sensitivity analysis
across RCP 2.6 and RCP 8.5 helps us
understand the implications of lower
andhigher-warming pathways.
The results highlight exposure to
climate-related hazards such as flooding,
heat stress and extreme weather events,
with potential implications for build costs,
programme delivery and asset durability.
Sensitivity analysis across the full scenario
range indicates that risks would be lower
under a Paris-aligned pathway (RCP 2.6)
and materially higher under a more severe
warming trajectory (RCP 8.5), particularly
inrelation to acute weather events.
This multi-scenario approach provides
confidence that the business has been
assessed against a range of plausible
futures, while focusing detailed financial
modelling on the most relevant central case.
Task Force on Climate‑related Financial Disclosures (TCFD) (continued)
Responsible Business strategy (continued)
Building sustainable homes (continued)
A
B
C
UK summer precipitation change
4
2
0
-2
-4
-6
-8
-10
-12
Precipitation change (%)
2015
Inactive Proactive
206
5
2060205020302020 2040 2055204520352025
A
Reactive
B C
(%)
A
C
B
UK winter precipitation change (%)
14
12
10
8
6
4
2
0
-2
Precipitation change (%)
Inactive Proactive
A
Reactive
B
C
2015 206
5
2060205020302020 2040 2055204520352025
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 40
Physical risks
Category
Identified
climate risk Actual and financial impact
Short-
term
Medium-
term
Long-
term
Acute Heatwaves Under the reactive scenario, the percentage of developments assessed with a risk of experiencing heatwaves
increases across the three timeframes, although the financial impact stays within the boundaries of the score
3 threshold.
For modelling purposes, we have used an indicative maintenance and repair assumption equivalent to around
1%of property value.
Chronic Rising mean
temperatures
Increased build costs could arise from the wider application of heatwave adaptation measures, including triple
glazing and mechanical ventilation with heat recovery.
We have experience of building homes compliant with Building Regulations Part O, including overheating
assessments, ventilation measures and building fabric amendments.
Acute Increased severity
offlooding
Under the reactive scenario, we estimate that 8% of developments are at risk of flooding in the short
term, increasing to 47% by 2080. Potential financial impacts include remediation costs, programme delay,
additionaldrainage or flood-resilience measures, and possible effects on sales timing where disruption occurs.
We assess flood-risk prior to purchasing land, and our strategy is to avoid the most exposed locations.
In addition, our developments will deliver an improvement in surface water run-off compared to the
initial situation.
Chronic Water stress Using the WRI Aqueduct system, we identified that a consistent 16% of developments will be in areas
of high-water stress across all timeframes.
We modelled the financial impact using the cost per unit of a development-wide rainwater harvesting
schemedelivered by one of our southern divisions in FY25.
Chronic Sea level rise Homes exposed to sea level rise sell for approximately 7% less than observably equivalent unexposed
properties equidistant from the beach. This discount has grown over time and may reflect increasing buyer
andcommunity awareness of climate-related risks.
Under the reactive scenario, 18% of development sites could be impacted by sea level rise in the long term.
Acute Increased frequency
of wildfires
In areas affected by wildfires, construction timelines may be delayed if homes or infrastructure are damaged,
or if firefighting efforts and emergency responses take precedence. This could affect programme delivery
andresult in lost revenue or higher costs.
Wildfire risk increases steadily across the three timeframes, from 0% of developments in the short term
to65%by 2080.
Key: Impact on Bellway’s operating profit
Less than 2.5% Between 2.5% and 5% Between 5% and 10% More than 10%
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 41
Transition risks
Category
Identified
climate risk Actual and financial impact
Short-
term
Medium-
term
Long-
term
Policy
andlegal
Increased energy and
carbon requirements
for new build homes.
Coming into force from March 2027, the Future Homes Standard will end the installation of gas boilers
innewhomes, with homes instead heated by air source heat pumps or district heating schemes.
We have included provision for FHS compliance for all new schemes starting from FY25 onwards.
Introduction of
mandatory carbon
pricing for large
organisations.
If a carbon tax were introduced in line with the EU ETS, Bellway could be required to pay a fee per tonne of
CO
2
e emitted. We have modelled this potential charge using Scope 1 and 2 emissions only in the short term,
with Scope 3 emissions included from the medium term to reflect the reactive nature of this scenario.
We have ambitious carbon reduction targets and have reduced emissions across all scopes since 2019.
Weareaiming for net zero by 2045, with significant reductions by 2035.
Technology Insufficient
availability of energy
efficient products.
Insufficient availability of higher efficiency products and technologies to deliver low-carbon homes.
Availability may be affected by delivery (owing to geopolitical and climatic challenges across the various
geographies where products and technologies are supplied) and/or the future scaling up of technologies
andproducts.
Our Group Procurement Team run our supplier engagement programme, which covers our key materials
suppliers. We strengthened our understanding of supply chain climate and nature risks, with our FY26 project.
Market Supply chain
challenges resulting
in exhaustion of
resources and
decreased availability
of building materials.
Increased production costs due to changing input prices (e.g. associated with building materials and
abrupt and unexpected shifts in energy costs) and output requirements (e.g. waste treatment) resulting
inconstructiondelays.
Potential financial impacts include higher input costs, longer lead times, delays to programme delivery
andadditional resource required to engage suppliers or identify alternative products.
The impact of this risk has been reflected in our Sustainable Supply Chain strategy, metrics and targets
aspartof the Responsible Business strategy, see page 48.
Inability to attract the
number and quality of
appropriately skilled
construction staff.
Inability to attract the number and quality of appropriately skilled construction staff owing to a green skills
workforce shortage.
This risk is addressed through our Responsible Business strategy and Employer of Choice business priority.
We are also increasing the proportion of our homes built using Modern Methods of Construction (MMC),
andwe opened our timber frame facility in January 2026.
Key: Impact on Bellway’s operating profit
Less than 2.5% Between 2.5% and 5% Between 5% and 10% More than 10%
Task Force on Climate‑related Financial Disclosures (TCFD) (continued)
Responsible Business strategy (continued)
Building sustainable homes (continued)
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 42
Transition risks (continued)
Category
Identified
climate risk Actual and financial impact
Short-
term
Medium-
term
Long-
term
Reputation Customers and
communities do not
perceive that Bellway
has responded
appropriately to
thetransition to
lowcarbon.
Customers and communities may not perceive that Bellway has responded appropriately orsufficiently
tothetransition to a lower-carbon economy.
We have continued to develop our approach to climate transition, publishing our Climate Transition Plan
inFY26 and including climate as a Board-level target in our updated Responsible Business strategy.
Potential climate-
related litigation
or regulatory
action relating to
misleading green
claims, inadequate
disclosure, or failure
to plan effectively
for climate-related
impacts.
Potential claims or regulatory action could arise from investors, insurers, public interest organisations
orregulators in relation to misleading green claims or inadequate disclosure. For modelling purposes,
wehaveassumed a potential fine equivalent to 1% of turnover.
We have worked with the Carbon Trust since FY23 to audit our carbon footprint in line with the
ISO14064standard.
Failure to embed
sustainability
leads to the
business becoming
unattractive to staff,
potential investors
and shareholders.
Failure to embed sustainability in the business, including within staff training and development processes,
maymake the business less attractive to staff, potential investors and existing shareholders as sustainability
and ESG performance are increasingly incorporated into employment and investment decisions.
Our Responsible Business framework ensures that our strategy is embedded across our business.
Ourenvironmental management system also ensures consistency of application, as each division
iscoveredinour audit schedule.
Key: Impact on Bellway’s operating profit
Less than 2.5% Between 2.5% and 5% Between 5% and 10% More than 10%
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 43
Opportunities
Category
Identified climate
opportunity Business impact
Short-
term
Medium-
term
Long-
term
(Acute)
Flood risk
Reduced operational
costs through
reviewing and
optimising flood
alleviation designs.
Reduced capital costs and Scope 3 carbon emissions could be achieved through optimised designs
andreduced concrete use.
We engage early in the construction process, at land pack stage, and work with consultants to review
andvalue engineer designs.
(Chronic)
Overheating
Further optimising
building design
to comply with
overheating
regulations,
and to improve
thermal comfort
forcustomers.
Opportunity to offer customers an upgrade that allows cooling from an ASHP system where this is not
already required for building regulations.
Research published in 2026 by Energy House 2.0 shows that operating an air source heat pump in cooling
mode can help reduce indoor temperatures in a Bellway house.
Low-carbon
techresearch
Optimising air source
heat pump heating
designs through
research projects
and collaboration
with suppliers.
Optimised designs could reduce Bellway’s capital costs and deliver a more efficient heating system
forcustomers.
Through our work at Energy House 2.0, we have optimised air source heat pump designs to reduce
installation costs and improve system performance. This research has informed designs delivered across
ourbusiness.
Energy
efficient
equipment
Roll out energy
efficient equipment
for our construction
sites, including
battery technology
and solar PV.
Reduced energy consumption and lower operating costs in construction site compounds.
We have successfully trialled ‘hybrid’ generators, which incorporate battery technology. We have found
theycan reduce generator run time by over 70%.
Modern
methods of
construction
Increase the
proportion of
homes built with
modern methods
of construction,
specifically
timberframe.
Bellway Home Space, our timber frame facility, opened in FY26. It has the potential to reduce onsite waste,
improve build quality, speed up build time and deliver savings in preliminary costs.
Key: Impact on Bellway’s operating profit
Less than 2.5% Between 2.5% to 5% Between 5% to 10% More than 10%
Task Force on Climate‑related Financial Disclosures (TCFD) (continued)
Responsible Business strategy (continued)
Building sustainable homes (continued)
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 44
Opportunities (continued)
Category
Identified climate
opportunity Business impact
Short-
term
Medium-
term
Long-
term
Demand side
response
Offer equipment,
including battery
storage and
demand-side
response systems
tocustomers.
With the Future Homes Standard requiring larger Solar PV systems, there is potential to offer batteries
anddemand-side response equipment to customers as optional additions, increasing revenue per home.
Leader in
low-carbon
homes
Bellway’s experience
in delivering low-
carbon homes could
provide a competitive
advantage when
the Future Homes
Standard comes
intoforce.
Bellway’s experience in designing and installing air source heat pump technology may support customer
confidence and provide a competitive advantage as the market transitions to lower-carbon homes.
Our work at Energy House 2.0, and our experience of delivering over 1,000 all-electric homes,
maysupportour position as the market transitions under the Future Homes Standard.
Local
communities
and
stakeholders
Bellway’s sustainability
credentials may make
communities and
stakeholders more
likely to support or
partner with us.
Strong sustainability credentials may support more positive engagement with communities and
stakeholders, which could help to inform the planning process and support customer confidence.
Key: Impact on Bellway’s operating profit
Less than 2.5% Between 2.5% to 5% Between 5% to 10% More than 10%
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 45
Metrics and targets
In FY26, we received approval from the
SBTifor updated near and long-term targets
aligned with the SBTi Buildings Sector
guidance. The updated guidance reclassified
construction product emissions within
Scope 3 and required separate targets
for embodied carbon and other Scope
3 emissions. Our assessment of FLAG
emissions confirmed they were not material.
We achieved our FY30 Scope 1 and 2 target
ahead of schedule, delivering a 49.24%
reduction in FY26 against our 2019 baseline.
Key metrics and targets relevant
toTCFDinclude:
In FY26, we published our first Climate
Transition Plan, aligned with the Transition
Plan Taskforce recommendations. It sets out
our targets, implementation and engagement
plans, governance arrangements and
accountability mechanisms.
Our key climate-related targets and
metrics are:
– Achieve net zero carbon emissions across
Scopes 1, 2 and 3 by 2045.
– Reduce Scope 1 and 2 emissions by 72% from
a 2019 baseline by 2035, approved by SBTi.
– Reduce Scope 3 ‘embodied’ carbon
emissions by 69% per m
2
from a 2023
baseline by 2035, approved by SBTi.
– Reduce Scope 3 ‘other’ emissions by
66%per m
2
from a 2023 baseline by 2035,
approved by SBTi.
– Commit to not installing any fossil fuel
equipment by the end of 2030.
– A reduction in waste per plot, down to
5.7tonnes by 2030.
– 10% reduction in construction water use
inm/100m by 2030 from a FY25 baseline
of 343.2m/100m by July 2030.
– Completion of 868 all-electric plots
inFY26, up from 714 in FY25.
Streamlined Energy and
CarbonReporting (SECR)
In line with the Companies Act 2006
and SECR regulations, we disclose our
GHG emissions in the Strategic Report,
aligned with our financial year and including
prior-year comparisons.
Scope 1 covers emissions from fuel
use and facility operations (e.g.
diesel in generators, fuel in company cars,
and gas heating), whileScope 2 includes
purchased electricity.
We report Scope 2 emissions using both
location-based and market-based methods
to reflect renewable electricity use.
The methodology used follows UK
Government Environmental Reporting
Guidelines (2013) and uses 2025 GHG
Conversion Factors. We report all material
emission sources, excluding:
– gas from part-exchange properties 0.85%
of total Scope 1 and 2 emissions);
– air conditioning emissions in FY19 due to
data limitations (included from FY23); and
– site-based CHP units not under our control.
Estimates are used for:
– diesel on contractor-managed sites
(based on forklift usage); and
– divisional offices with landlord-managed
utilities (based on floor space).
Verification:
– FY19 Scope 1 and 2: Zeco Energy,
reasonable assurance (ISO 14064-3);
– FY25 and FY26 Scope 1, 2, and 3:
Carbon Trust, limited assurance
(ISO14064-3);and
– FY19 Scope 3: calculated with Carbon
Trust for SBT submission (not verified).
Risk management
Climate-related risks are integrated into
Bellway’s established Group-wide risk
management framework, overseen by the
Audit Committee. Our Risk Management
Policy supports the identification and
assessment of current and emerging
climate-related risks and opportunities,
including transition and physical risks.
This process considers internal and external
uncertainties which, if they occur, could
have a significant impact on our business.
Our internal TCFD risk and opportunity
register captures climate-related risks and
opportunities, their associated business and
financial impacts, the relevant time horizons,
and the controls or mitigation actions in
place or planned. The register supports the
identification, assessment, management
andmonitoring of climate-related impacts
on the business, with the same approach
applied to opportunities.
Following quantification, the most
significant climate-related risks and
opportunities are integrated into
Bellway’scompany-wide strategic risk
register. The register is reviewed annually
by the Board, with high or significant risks
monitored quarterly by the Audit Committee
to support timely mitigation and oversight.
Responsible Business strategy (continued)
Building sustainable homes (continued)
Task Force on Climate‑related Financial Disclosures (TCFD) (continued)
Forinformation on how we link climate
change to executive remuneration, see pages
106 to 110 and page 115
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 46
2026 2025
2019
(base year)
Scope 1: combustion of fuel and operation
of facilities (including diesel and petrol used
on-site and in company cars on Group business) 12,787 12,855 20,560
Scope 2: electricity purchased for our own
use(market-method)
(b)
265 438 5,155
Total market-method Scope 1 and 2
GHG emissions 13,052 13,293 25,715
GHG intensity (market-method)
perBellwayhomesold 1.4 1.5 2.4
GHG intensity (market-method)
perBellwayemployee
(c)
4.6 4.8 8.6
Scope 1: combustion of fuel and operation
offacilities(including diesel and petrol used
on-site andincompany cars on Group business) 12,787 12,855 20,560
Scope 2: electricity purchased for our own
use(location-method)
(d)
4,581 4,738 5,518
Total location-method Scope 1 and 2
GHGemissions
(d)
17,368 17,593 26,078
GHG intensity (location-method)
perBellwayhomesold 1.8 2.0 2.4
GHG intensity (location-method)
perBellwayemployee
(c)
6.1 6.4 8.8
Out of scope emissions
(e)
2,538 1,991 –
Energy consumption used to calculate
aboveemissions(kWh) 94,152,787 89,375,853 109,622,315
2026 2025
(g)
2023
(base year)
(h)
Scope 3 (Category 1a: Purchased goods
andservices – product) – 329,488 –
Scope 3 (Category 1b: Purchased goods
andservices – non-product) 15,020 14,650 15,934
Scope 3 (Category 2: Capital goods) 464,915 7,809 539,754
Scope 3 (Category 3: Fuel and
energy-relatedactivities) 4,961 5,132 5,044
Scope 3 (Category 4: Upstream
transportationanddistribution) – 72,435 –
Scope 3 (Category 5: Waste generated
inoperations) 6 852 –
Scope 3 (Category 6: Business travel) 3,134 2,582 2,653
Scope 3 (Category 7: Employee commuting) 1,583 1,362 1,489
Scope 3 (Category 11a: Use of sold
products – direct) 705,611 704,144 1,016,538
Scope 3 (Category 12: End-of-life treatment
ofsoldproducts) 16,950 16,135 21,832
Scope 3 (Category 15: Joint venture
developments emission) – – –
Total Scope 3
(f)
1,212,180 1,154,589 1,603,245
Scope 3: GHG intensity (tonnes CO
2
e per m
2
ofcompleted floor area) 1.32 1.43 1.58
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 68,275 tonnes of CO
2
e
(2025: 54,716, 2019: 88,663). Categories 8, 9, 10, 14 and 15 are not relevant to the Group.
g. FY25 reported emissions remain unchanged from the previous year’s Annual Report and Accounts
for FY25.
h. In FY26, we reported in accordance with the SBTi Buildings Sector Guidance, and we updated our FY23
baseline accordingly.
Greenhouse gas emissions (GHG) (tonnes of CO
2
)
a,e
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 47
Resource efficiency Responsible sourcing
We achieved a key milestone under the
Resource Efficiency workstream with the
opening of our Bellway Home Space timber
frame facility in January 2026. Our aim is
tobuild 30% of our homes using timber
frame by the end of FY30, and at the end
ofFY26 we were at 20.2%.
We continued our work to reduce waste
on our construction sites, with the FY30
target of achieving below 5.7 tonnes per
completed unit. We finished FY26 on 5.5
tonnes and achieved an overall landfill
diversion rate of 99.26% for all waste
against our FY30 target of 95%.
With a changing climate, water efficiency
isbecoming increasingly important.
In FY26, we reported water use of
39.50m/100m of delivered floor area,
against our FY30 goal of 30.80m/100m.
Our approach to responsible sourcing
supports our goals of building sustainably,
and of valuing people.
In FY26, we continued to progress our
Supplier Engagement Programme, mapping
impacts of our 40 largest Group suppliers
against the five CDP categories, including
climate, forests and water. We engaged
with 23 companies, helping to understand
how our key suppliers can support our
2035 Embodied Carbon goals.
We continued to work in partnership with
the Supply Chain Sustainability School;
from our Group suppliers we have 102 who
have either Gold membership with SCSS
orEcovadis, 4 Silver and 9 Bronze. With our
subcontractors, we can report 384 active
members of the SCSS, progress made
against our target of 500.
In the 2025 CDP Assessment, we scored
an A- for Supplier Engagement.
Supplier meetings have reduced as we
now have a more focused engagement
programme, the target for FY26 was to
speak with 20.
99.26%
overall landfill diversion rate
A-
CDP Assessment score
forSupplierEngagement
Sustainable supply chain
Supplier discovery meetings held
(number)
23 meetings
2
026
2
025
2
024
23
50
50
KPIKPI
Resource efficiency
Waste per home built
(tonnes)
5.49
tonnes
Target X.X
2
026
2
025
2
024
5.49
5.7
7.1
Responsible Business strategy (continued)
Building sustainable homes (continued)
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 48
Training & skills development
Health & safety
To complement the launch of our new brand,
we launched our enhanced Bellway values:
– Integrity: we do what’s right.
– Care: we put people first.
– Ownership: we own what we do.
– Collaboration: we work together.
For more information on our Bellway
values see Leadership and Culture
onpage 67
Safe delivery is a strategic responsible
business issue for a housebuilder,
linkinglegal compliance, operational
resilience, culture and care for
employees, contractors and partners.
We met our headline target to reduce
our RIDDOR rate below the three-year
average of 186.17. At the endof FY26
RIDDOR was 182.03.
We are also pleased to report we have
maintained our level of Mental Health
First Aiders at 10% and 298 colleagues
areMental Health Advocates.
Valuing people
Responsible Business strategy (continued)
We support and encourage people to reach their potential.
This pillarcovers Bellway’s role as an employer and partner,
includingworkforce engagement, training and skills development,
health and safety, and the capability needed to deliver
thebusiness strategy.
182.03
2026 RIDDOR Rate
(FY25: 166.88)
We welcomed 23 graduates and
85 apprentices into the business,
finishingthe year with 8.0% of colleagues
inearn-and-learn roles.
Our CMI-accredited middle management
course, Elevate, currently has 77 middle
managers participating. Working in
partnership with NHBC, Knowledge Explorer
for Construction enhances access to
technical knowledge and training targeted
to individual needs and specific skills gaps.
Employer ofchoice
We are pleased to report that the
‘engagement’ score in our 2026 Annual
Staff Survey improved to 94%. Our high
engagement score is also reflected in
our voluntary staff turnover level of 13.4%
(FY25: 14.8%), against our target of less
than 15%.
We are also on track to double the number
of female staff in site-based roles by the
end of FY28, reporting a 17.5% increase at
the end of FY26, versus FY25.
94%
2026 Annual Staff Survey score
(FY25: 93%)
Employer of choice
Employees who would recommend
Bellway as ‘a great place to work’
(%)
91.0
%
Target 90%
2
026
2
025
2
024
91.0
91.0
90.0
KPI
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 49
Risk Management
Our established framework for
managing risk remained in place
across the Group throughout the
financial year, with responsibility
for implementing the Board’s
policies on risk management
and internal control residing
with management.
Our risk management objectives
continue to be:
– assessing emerging and principal risks
against an agreed risk appetite, which is
reviewed at least annually;
– 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,
monitoring and reporting of risks;
– developing and implementing action
plans to ensure risks are mitigated
within our agreed risk appetite and that
improvements are made to our control
environment; and
– ensuring the approach to risk
management meets the needs of the
business, senior management and all
key stakeholders.
Risk management framework
The Board
– Overall responsibility for risk management.
– Review, challenge and approve the risk management framework, policy and processes.
– Review and agree risk appetite.
– Conduct a robust assessment of the emerging and principal risks facing the Group.
– Review and challenge risk reports.
Executive Management
– Review, challenge and approve the risk
managementframework, policy and processes.
– Review and agree risk appetite.
– Approve risk treatment and actions.
– Approve risk reports.
Group Risk Director
– Design, implement and facilitate the risk
managementframework, policy and processes.
– Undertake risk management activities
andproducereports in accordance with risk
management policy.
Key
Directs and monitors Reports to
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 mitigating actions and recommendations.
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 50
Risk management roles
andresponsibilities
In all businesses, day-to-day management
ofrisk is the responsibility of every employee.
In undertaking their roles, employees assist
in identifying, assessing and managing risk.
Specific roles and responsibilities, asdefined
in our risk management framework and
policy, are set out in the diagram on the
previous page.
Risk management process
A strategic 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.
Risks, severity and any required mitigating
actions are regularly reviewed. The severity
of risk is determined based on a defined
scoring system assessing risk impact
and likelihood.
A summary of risks is reported to the
Executive Committee, Audit Committee and
Board, which is mainly, but not exclusively,
comprised of risks considered to have
aresidually high severity and, therefore,
outside our risk appetite. 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 that they 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
90to 103.
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, where appropriate,
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
1,2
(2025: 2.5 times).
Identify all risk areas
Evaluate severity of risks
Action mitigate risks (where needed)
Treat to bring within risk appetite
Report
monitor risks and report progress
of mitigations
Risk management process
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 51
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 as follows.
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.
Concentration of credit risk in respect
of home sales is low, as the exposure
is spread over a number of customers.
Where the Group has entered into a contract
for multiple completed dwellings with a
housing association or investor, the Group
ensures appropriate security is put in place
to minimise credit risk.
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 Group Financial
Statements). 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 £49.3m (2025: £54.0m)
of financial assets relating to loans made
by Bellway to equity accounted joint
arrangements (see note 12 to the Group
Financial Statements). The counterparties
to these loans are expected to make a
profit and, therefore, repay the loans in full.
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 on the respective
land asset held (see note 9 to the Group
Financial Statements). No other security
isheld against any other financial assets
ofthe Group.
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, among other things, the term
and whether a fixed or floating interest rate
is obtained.
During the year ended 31 July 2026, 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 £1.0m (2025: £0.5m decrease to profit).
The Group, therefore, considers the risk
ofdefault to be minimal.
In respect of cash and cash equivalents,
the maximum credit risk associated with a
financial institution in respect of short-term
cash deposits is £148.9m (2025: £95.6m).
The credit risk is deemed 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, asoutlined in note
17 to the Group FinancialStatements are
considered tobeadequate in terms of
flexibility andliquidity for its medium-term
cash flowneeds. Relationships with banks
and fixed-rate sterling USPP noteholders
are coordinated centrally, as is overall cash
management. The Group is operating well
within its financial covenantsand available
debt facilities.
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.
Risk Management (continued)
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 52
Principal Risks
The Board has completed its assessment of the Group’s emerging
and principal risks. Nine principal risks have been identified and are
detailed on pages 54 to 56.
The Group also considers emerging risks (and associated
opportunities) that have the potential to impact the achievement
of our strategy in future, but which cannot yet be fully defined
and assessed given the uncertainty of a number of
variables that could change the nature of the risk over
time. These are reviewed as part of our established
risk management framework, discussed regularly by
the Executive Committee, Audit Committee and Board,
and elevated to principal risks (either as new risks or
an extension of existing risks) at the appropriatetime.
Use ofartificial intelligence (AI) is considered an
emerging risk to the Group and is being specifically
monitored, with potential impacts under regular review.
An overview of the Group’s nine principal risks is set
out below.
Risk heat map
Likelihood
Almost certainPossible LikelyRemote
SignificantLow Medium High
Impact
Risk movement
Residual risk is
reducing/improving
Residual risk is
stable/constant
Residual risk is
increasing/deteriorating
Key
Risk appetite
Averse Limited tolerance to risk exposure, which is minimised
asfaraspracticallypossible.
Cautious Balanced acceptance of risk with the aim of realising some related
benefitsorefficiencies.
Open Receptive to higher levels of calculated risk in pursuit of increased
rewardssuch as growth, enhanced operational performance or
achievementofstrategic objectives.
Principal risks
Risk
appetite
Residual
risk rating
Risk movement
inyear
1
Climate change and sustainability Averse
M
2
Construction quality and innovation Cautious
M
3
Economic and political outlook Averse
H
4
Health, safety and environment (HSE) Averse
M
/
L
5
IT resilience and security Averse
H
6
Land and planning Open
M
7
Legal compliance and building safety Averse
M
8
Supply chain resilience Cautious
M
9
Talent management Open
M
8
6
5
7
9
1
3
2
4
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 53
Principal Risks (continued)
1
Climate change andsustainability
Failure to respond appropriately to the physical impacts
of climate change, such as extreme weather events,
andthe challenges associated with transitioning to
alower-carbon, more sustainable economy could result
in disruption to construction programmes, misalignment
with consumer demands and planning difficulties,
limiting our ability to attract investment.
Link to Responsible Business priorities
Risk owner: Group Production Managing Director
Risk appetite:
Averse
Residual
risk rating:
M
Risk
movement:
Mitigations
– Board approval and monitoring of the Group’s
Responsible Business strategy.
– Dedicated sustainability, innovations and
biodiversityresources in place to assess risks,
monitor performance and drive improvement.
– Use of specialist external advisers and subject
matterexperts (e.g. sustainability consultants).
– Carbon reduction is a key priority, with verified
science-based targets in place.
– Regular review of the design and features
ofnewhomes, along with construction methods
andthe sustainability of materials.
– ISO 14001 accreditation and CDP A- score
forclimate change.
Link to KPIs
– Tonnes of carbon emissions per legal completion
– Percentage of renewable electricity
– Tonnes of waste per home built
– Percentage of waste diverted from landfill
– BNG
3
Economic and political outlook
Changes in the external environment (such as inflation,
interest rates, mortgage availability, unemployment,
governments, government policy or unforeseen
significant events) could impact the affordability of new
homes, resulting in reduced sales rates and returns.
Link to Responsible Business priorities
Risk owner: Main Board
Risk appetite:
Averse
Residual
risk rating:
H
Risk
movement:
Mitigations
– Board-level monitoring of the housing market,
widereconomy and political environment,
alongsidekey business metrics, leading to
development ofactionplans as necessary.
– Experienced and well-established Senior
Management team.
– Disciplined operating framework, strong balance sheet
and low financial gearing.
– Financial stress testing and sensitivity analysis performed.
– Product range and pricing strategy based
onmarket conditions.
– Regular engagement with industry peers,
representativebodies, and new-build mortgage lenders.
– Use of sales incentives to encourage the selling process.
– Quarterly site valuations and monthly budget
reviewsbased on latest market data.
– Business continuity and crisis management
protocolsin place and regularly tested.
Link to KPIs
– Number of
homes sold
– Operating profit
d
– Operating margin
d
– RoCE
d
– EPS
– Gross margin
d
– Reservation rate
– Order book value
– Average selling price
2
Construction quality and innovation
Failure to build homes to a high standard or to
develop and successfully implement new,innovative
construction methods, could lead to quality issues,
increased rectification costs and reputational damage,
reducing future sales and returns.
Link to Responsible Business priorities
Risk owner: Group Production Managing Director
Risk appetite:
Cautious
Residual
risk rating:
M
Risk
movement:
Mitigations
– Robust quality assurance processes and sign-offs
arebuilt into construction programmes.
– Standard ‘customer first’ journey operates
Group-wide with key metrics regularlymonitored
and reported.
– Regular review of the design and features of new
homes, along with constructionmethods and the
sustainability of materials.
Link to KPIs
– Number of
homes sold
– Operating profit
d
– Operating margin
d
– RoCE
d
– EPS
– Gross margin
d
– Reservation rate
– Order book value
– Average selling price
– National new homes
customer satisfaction
survey results
– HBF star rating scheme
d. Underlying
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 54
5
IT resilience and security
Poor performance of our IT systems or a material
security breach, such as a cyber-attack, could
result indisruption to operational activity, data
leakage, financial losses, regulatory fines and
reputational damage.
Link to Responsible Business priorities
Risk owner: Group IT Director
Risk appetite:
Averse
Residual
risk rating:
H
Risk
movement:
Mitigations
– Continued investment in our Group IT function,
infrastructure and systems.
– Systems are centrally controlled with support
from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, including
penetration testing and phishing simulations.
– Cyber KPIs reported at each meeting of the
ExecutiveCommittee and Board.
– IT incidents and near-misses reviewed quarterly
bySecurity Committee.
– Cyber insurance policy in place.
Link to KPIs
– Operating profit
d
– Operating margin
d
– RoCE
d
– RoE
d
– EPS
– Gross margin
d
6
Land and planning
Insufficient land at suitable margins and RoCE,
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.
Link to Responsible Business priorities
Risk owner: Main Board
Risk §appetite:
Open
Residual
risk rating:
M
Risk
movement:
Mitigations
– Continued development of our Group Strategic Land
function and implementation ofour land strategy.
– Balanced investment in land and more sites with DPP.
– Regular review by 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 ofviability assumptions.
– Group and divisional planning specialists in
place to support the securing ofimplementable
planning permissions.
– Strong working relationships with local authorities,
land agents and promoters.
Link to KPIs
– Number of
homes sold
– Operating profit
d
– Operating margin
d
– RoCE
d
– EPS
– Gross margin
d
– Number of plots in owned
and controlled land bank
with DPP
– RoE
d
– Number of plots
inthe pipeline
– Number of plots in the
strategic land bank
4
Health, safety and environment (HSE)
Failure to build in a safe and responsible way could
leadto serious injury, loss of life or environmental
damage, resulting in operational delays, financial
penalties and negative reputational impacts.
Link to Responsible Business priorities
Risk owner: Group Health, Safety and
Environmental Director
Risk appetite:
Averse
Residual
risk rating:
M
/
L
Risk
movement:
Mitigations
– Clearly defined roles and responsibilities for HSE.
– Group HSE Policy and procedures in place,
supportedby targeted 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.
– Monthly dashboard reporting containing key
compliance themes and good practice.
– The Board considers HSE matters at each meeting.
– Employers’ liability and public liability insurance
policies in place.
Link to KPIs
– Number of RIDDOR seven-day reportable
incidentsper 100,000 site operatives
– Health and safety incident rates
– Number of near-miss incidents reported
– Number of NHBC Pride in the Job Awards
– HSE audit outcomes
d. Underlying
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 55
8
Supply chain resilience
Failure to secure the required quantity and quality of
materials and labour at competitive prices, or the failure
of a key supplier, could lead to construction delays and
increased costs, impacting the delivery ofstrategic
targets around volume growth, margin and RoCE.
Link to Responsible Business priorities
Risk owner: Group Production Managing Director
Risk appetite:
Cautious
Residual
risk rating:
M
Risk
movement:
Mitigations
– Robust forecasting and forward planning of materials
and labour requirements.
– Centralised procurement of building materials.
– Vertical integration of timber frame through
thelaunch of Bellway Home Space.
– Commercial policies and controls for the selection,
appointment and performance monitoring of
suppliers and subcontractors.
– Investment in relationships, both new and
longstanding, with regular engagement tounderstand
live supply issues.
– Health checks and contingency plans for key
supplier failure.
Link to KPIs
– Number of
homes sold
– Operating profit
d
– Operating margin
d
– Gross margin
d
– Customer satisfaction score
9
Talent management
Failure to attract, develop and retain employees
withappropriate skills could lead to a loss of business
knowledge and competitive advantage, impacting
thedelivery of strategic objectives.
Link to Responsible Business priorities
Risk owner: Group HR Director
Risk appetite:
Open
Residual
risk rating:
M
Risk
movement:
Mitigations
– Continued investment in our Group HR function
andimplementation of our people strategy including
relaunch of Company values.
– Established HR 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 and actions determined.
– 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.
Link to KPIs
– Employee voluntary
turnover rate
– 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
– % of staff in earn-and-
learn roles
– Employee Engagement
Survey response rate
– % of staff who would
describe Bellway as a
‘greatplace to work’
7
Legal compliance and building safety
Lack of an appropriate framework to drive compliance
with legal and regulatory requirements, including
theSelf Remediation Terms, could result in breaches,
whichincur fines, delay business operations and lead
to re-work across sites, increasingcosts and impacting
our reputation.
Link to Responsible Business priorities
Risk owner: Chief Commercial Officer
Risk appetite:
Averse
Residual
risk rating:
M
Risk
movement:
Mitigations
– Mandatory Group-wide compliance policies and
training in place supported by externally facilitated
whistleblowing and reporting procedures.
– In-house expertise within Group functions who
undertake compliance monitoringandprovide
support to divisions.
– Remediation works undertaken by a dedicated
Building Safety division.
– Use of specialist external advisers and subject
matterexperts (e.g. fire safety engineers).
– Regular liaison with government, industry peers and
the HBF on compliance requirements and matters.
Link to KPIs
– Number of
homes sold
– Operating profit
d
– Operating margin
d
– RoCE
d
– EPS
– Gross margin
d
– Compliance training rates
Principal Risks (continued)
d. Underlying
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 56
Viability Statement
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
2028, aligning with the first year-end after the minimum 12-month assessment period.
For thisreason, the Directors continue to adopt the going concern basis in preparing
thefinancial statements, as discussed further on pages 149 and 150.
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 2030, 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.
In assessing the Group’s forecasts and long-term viability,
thefollowingfactors are considered:
Factor Consideration
Group’s latest
performance
This considers the trading performance in both the year ended
31July 2026 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 2026.
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.
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, Regional Finance Directors and Group management.
The forecasts consider the profitability, balance sheet, cash flows, capital allocation,
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 as follows:
– 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 54 to 56. The principal
risk that has been identified as the most severe and plausible scenario is:
Factor Consideration
Economic and political
outlook including
housing demand,
mortgage affordability
and Government
housing policy
A reduction in private completions and private ASP
duetoadecline in demand.
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 57
The most severe but plausible downside scenario is a severe recession. It includes the
following principal assumptions:
– private completions in H1 FY27 are supported by the forward order book. In the 12 months
to 31 January 2028, 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; and
– private average selling price in H1 FY27 remains in line with internal forecasts due to
theforward order book position. In the 12 months to 31 January 2028, 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; and
– dividends reducing in line with earnings.
The sensitivity analysis was modelled over the period to 31 July 2028 for the going
concernassessment, but extended to 31 July 2030 for the Directors’ viability assessment.
In the 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. 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 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 2030.
Approval of the Strategic Report
This Strategic Report on pages 3 to 58 was approved by the Board and signed
onitsbehalf by
Jason Honeyman
Chief Executive
12 October 2026
Viability Statement (continued)
GovernanceStrategic Report Accounts Other Information Bellway p.l.c. Annual Report and Accounts 2026 58
Governance
In this section
Chair’s Statement on Corporate Governance 60
Board of Directors and Company Secretary 62
Leadership and Culture 67
Board Activities and Decisions 68
Section 172 Statement and Stakeholder Engagement 70
Engaging with Key Stakeholders 72
Governance Framework 78
Composition, Succession and Evaluation 84
Nomination Committee Report 86
Audit Committee Report 90
Remuneration Report 104
Sustainability Committee Report 125
Executive Committee 127
Directors’ Report 130
Independent Auditor’s Report
to the Members of Bellway p.l.c. 134
Bellway p.l.c. Annual Report and Accounts 2026
59GovernanceStrategic Report Accounts Other Information
Dear shareholder,
The Directors and I are committed to
applyingeffective corporate governance and
promoting the highest standards ofbehaviour
and values throughout the Company.
As Chair of Bellway, I am pleased tointroduce
this year’s Corporate Governance Report.
Corporate Governance Statement
During the year, the Board continued
toprogress the long-term strategy of the
Group. Effective governance arrangements
underpin the Board’s activities, supporting
informed decision making and enabling
effective oversight of the Company’s key risks
and opportunities.
I am pleased to confirm that, following the
implementation of the FRC’s 2024 Corporate
Governance Code on 1 August 2025,
theBoard considers that it has complied
with the provisions of the Code throughout
theyear. During the year, we reviewed
ourgovernance framework to assess the
impact of the revised requirements and
implemented the enhancements necessary
to support ongoing compliance.
This report sets out the Board’s key activities
and achievements during the year, providing
shareholders and stakeholders with the
necessary information to evaluate how the
principles and provisions have been applied.
Strategy
Throughout the year, the Board maintained
a strong focus on ESG matters, initially
through the Better with Bellway framework
and subsequently through the development
and launch of our new Responsible
Business strategy.
Our approach to sustainability
managementand oversight matured
overthe year and theBoard agreed that,
thebenefits of maintaining a separate
Committee structure had diminished and
would be better served under the direct
remit of the Board.
We believe this will allow a deeper
integrationof sustainability considerations
into strategic business decisions; direct
involvement of all Directors in sustainability
oversight; and streamlining of governance
toenable more efficient decision making.
For more information on the Board’s
sustainability work, see pages 125 to 126
“ We are
committedto
fostering strong
relationships
withshareholders,
employees and
customers,
andthewider
communities in
which we operate.”
John Tutte
Chair
In this Governance Report
Chair’s Statement on Corporate Governance
Board leadership
The Board is the principal decision-making
body of the Group and is collectively
responsible for promoting the long-term
sustainable success of the Group.
For more information
see page 78
Board activities and decisions
Throughout the year, the Board has
madeanumber of key decisions and
engaged in a wide range of activities.
See Board Activities and Decisions
onpages 68 to 69
Division of responsibilities
The Board put in place an effective
structure, which allows it to delegate
authority for operational matters.
For more information
see pages 79 to 81
Composition, succession
andevaluation
The Nomination Committee ensures
thereisthe appropriate balance
ofdiversity,skill, knowledge and
experienceon the Board.
For more information
see pages 84 to 85
Stakeholder engagement – employees
The Non-Executive Director for
WorkforceEngagement, Cecily Davis,
hasled on the second National
EmployeeListening Group.
For more information
see page 74
Stakeholder engagement –
investors and analysts
The Board recognises engagement with
investors is essential to building trust,
supporting long-term value creation
andcontributing to the wider society.
For more information
see page 75
Committee reports
Each of the Board Committees play
avitalrole in the success of the business.
For more information on each of the
Committees, and what they do.
For more information
see pages 86 to 129
Audit, risk and internal controls
The Audit Committee ensures the
integrityof the Group’s financial
statements and effectiveness of audit,
riskmanagement and internal controls
with the support fromexternal auditors.
For more information
see pages 90 to 103
Bellway p.l.c. Annual Report and Accounts 2026 60GovernanceStrategic Report Accounts Other Information
The Board has regular engagement
withstakeholders to understand their
perspective and incorporate their
feedbackinto decision-making processes.
We arecommitted to fostering strong
relationships with shareholders, employees
and customers, and the wider communities
in which we operate.
For more information on how the Board has
engaged with stakeholders during the year,
see pages 72 to 77
Board composition
andsuccession
We were pleased to welcome two new
Independent Non-Executive Directors to
theBoard during the year. Gill Barr joined
on15 September 2025, bringing wide
experience as an executive and over 20
years in non-executive roles, including in the
construction sector, as well as experience
chairing remuneration committees. In April
2026, Gill assumed the role of Remuneration
Committee Chair at Bellway following Jill
Caseberry’s retirement from that position.
Philip Harrison joined the Board on 1 July
2026, bringing strong board-level financial
expertise in the listed company
environment, alongside extensive finance
leadership and strategy experience across
several sectors, including construction.
Philip will assume the role of Audit
Committee Chair ahead of Ian McHoul’s
retirement from the Board after this year’s
Annual General Meeting (AGM).
We would like to take this opportunity
tothank Jill and Ian for their commitment
and contribution to the Board.
In addition to the changes to the Board,
wewere pleased to announce the
appointment of Phil Hope as Group Finance
Director and Company Secretary in August
2025. As part of this appointment, Phil
assumed the role ofCompany Secretary
from Simon Scougall, who was appointed
Chief Commercial Officer in 2024.
Board effectiveness
andevaluation
In line with the Code, we undertake
aformaland rigorous annual evaluation
ofthe Board’s performance, and that of
theCommittees and individual Directors.
Following last year’s internal evaluation
ledby the Chair of the Board, this year
anexternal review was conducted by Sam
Allen Associates.
Overall, the review found the Board to be
highly effective, with strong governance,
constructive challenge, good-quality
decision making, and a positive, cohesive
Board culture. It described the Board as
benefitting from a complementary mix of
skills and experience, effective leadership
from the Chair, and a constructive working
relationship with the executive team.
The output of the review provides a series
ofobservations and considerations, which
the Chair and the Board will use to help
further enhance its performance in a
challenging economic environment.
Details of this year’s external evaluation
can be found on pages 84 to 85
Diversity
Becoming an Employer of Choice is a pillar
of our new Responsible Business strategy
(more information can be found on pages
29to 49). 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 the business.
We continue to have a strong commitment
to increasing the number of females in the
construction industry. Throughout the year,
we have participated in the Women into
Home Building Programme, led by the HBF,
to attract more women into site
management roles. Our commitment to get
women into home building was celebrated
when North East Mayor, Kim McGuinness
visited one of our developments in the
NorthEast, where she met with women
working inconstruction and learned more
about our commitment to building
sustainable homes.
Board meetings
The Board meets formally at least six times
each year, with meetings held across a
combination of Head Office, divisional office
and offsite locations. This approach provides
Directors with opportunities to engage
directly with colleagues across the business
and gain first-hand insight into the Group’s
operations. During the year, the Board
visited Bellway Home Space, our recently
opened timber frame facility, to deepen its
understanding of this important area of the
business. Such engagement helps the Board
to see how decisions taken in the boardroom
are implemented in practice and to better
understand the opportunities and
challenges experienced across the Group.
In addition, each Non-Executive Director
undertook individual site visits during the
year, meeting operational management
teams and gaining further insight into the
delivery of our developments.
AGM
The 2026 AGM will beheld on 26 November
2026 at Woolsington House, Newcastle, and
we hope that shareholders are supportive
oftheproposed resolutions. Full details
canbe found in the Notice of Meeting.
Following our 2025 AGM, women
represented 44% of the Board. However,
following our 2026 AGM, this proportion
willonly reach 37.5%, falling short of the
FCAlisting rule requirement that at least
40% ofBoard members are women.
The Board notes that the separate
requirement for at least one senior Board
position to be held bya woman continues to
be met, with the role of Senior Independent
Director being held by Sarah Whitney.
The Board remains committed to diversity
inthe broadest sense and across all levels
ofthe business, and gender diversity will
bean important consideration in future
Board recruitment.
John Tutte
Chair
12 October 2026
Bellway p.l.c. Annual Report and Accounts 2026 61GovernanceStrategic Report Accounts Other Information
1. John Tutte
Chair
R N*S*
Appointed
1 March 2022
Background and experience
John was appointed as Non-Executive Chair
Designate,succeeding Paul Hampden Smith as
Non-Executive Chair. He is qualified in civil engineering
and has held positions such as Group Chief Executive,
Executive Chair, and then Non-Executive Chair.
John was also a Non-Executive Director of the
HomeBuilders Federation until June 2025 and
Chairmanof theHome Building Skills Partnership
until 2020.
What John brings to the Board
John brings over 40 years of industry experience
withextensive leadership skills.
Key
A
Audit Committee
NR
Board Committee on
Non-Executive Directors’
Remuneration
S
Sustainability Committee
(dissolved in 2026 see page 126)
W
Non-Executive Director
forWorkforceEngagement
R
Remuneration Committee
N
Nomination Committee
E
Executive Committee
*
Denotes Committee Chair
1
6
7
8
9
10
2
5
4
3
Board of Directors and Company Secretary
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 and the wider society.
Bellway p.l.c. Annual Report and Accounts 2026 62GovernanceStrategic Report Accounts Other Information
3. Shane Doherty
Chief Financial Officer
E NRS
Appointed
2 December 2024
Background and experience
Shane, a Chartered Accountant, has significant
experience in the housebuilding sector, having spent
over four years at Cairn Homes. Shane held a number
ofsenior finance roles, such as Chief Financial Officer
atMorgan McKinley and European Finance Director
atFlutter Entertainment PLC.
What Shane brings to the Board
Shane brings extensive leadership and board experience
with a record of delivering financial and operational
growth across several industries.
4. Simon Scougall
Chief Commercial Officer
E NRS
Appointed
1 August 2024
Background and experience
Simon joined Bellway in March 2011. Prior to this,
hewasasolicitor specialising in development advice
forclients in private practice. Simon has held several
senior positions within the Group, including as Group
Commercial Director, before being appointed as
GroupGeneral Counsel and Company Secretary,
inFebruary 2016. Simon joined the Board as Chief
Commercial Officer on1 August 2024.
What Simon brings to the Board
Simon brings a broad and in-depth knowledge
ofthebusiness and the housebuilding industry,
togetherwithstrong commercial acumen, which
providesaninvaluable skill set to the Board.
2. Jason Honeyman
Chief Executive
E* NR*
Appointed
1 September 2017
Background and experience
Jason has over four decades of experience in the
housebuilding industry, having started his career
asasurveyor. Before joining Bellway in 2005, Jason
heldsenior positions at several other housebuilders,
includingFairclough Homes and Barratt Homes.
Jason’sfirst role at Bellway was as Managing Director
ofthe Thames Gateway division, before taking the role
ofSouthern Regional Chair in 2011. He was appointed
tothe Board inSeptember 2017 as Chief Operating
Officer and promoted a year later, in August 2018,
to Chief Executive Officer.
What Jason brings to the Board
Jason’s exceptional leadership and extensive
experiencebring an invaluable insight to the Board,
making him awell-respected and trusted leader.
Bellway p.l.c. Annual Report and Accounts 2026 63GovernanceStrategic Report Accounts Other Information
Board of Directors and Company Secretary (continued)
6. Gill Barr
Independent Non‑Executive Director
A R*N
Appointed
15 September 2025
Background and experience
Gill brings extensive strategy, marketing and general
management experience across a broad range of
industries. She has served in Non-Executive Director
roles since 2004, with previous board roles at Morgan
Sindall Group Plc, PayPoint plc, Wincanton plc, N Brown
Group plc, and McCarthy & Stone plc, as well as Trustee
Director at Willis Towers Watson.
She is an experienced Chair of remuneration committees
and has held positions as Senior Independent Director
and Employee Engagement Director.
Gill’s earlier career was spent in multi-site retail
organisations including Kingfisher Plc, The Co-operative
Group, and John Lewis. She holds an MBA from the
London Business School.
What Gill brings to the Board
Gill’s wide experience and expertise as an executive,
combined with over 20 years in non-executive roles,
including in the construction sector, is invaluable to
the Board.
Other appointments
– DFS Furniture plc: Non-Executive Director,
Chair of the Remuneration Committee and a member
of the Audit, Nomination and Sustainability Committees.
5. Sarah Whitney
Senior Independent
Non‑Executive Director
A RN
Appointed
1 September 2022
Background and experience
Sarah has over 30 years’ experience in the corporate
finance, investment, and real estate sectors. The majority
of her career was spent as a Corporate Finance Partner
atPricewaterhouseCoopers, and in other senior executive
roles at DTZ Holdings Plc and CBRE.
What Sarah brings to the Board
Sarah’s depth of knowledge from her extensive
experience in property and finance plays a vital role
within the Board.
Other appointments
– JP Morgan Global Growth & Income plc:
Non-Executive Director, Chair of the Remuneration
Committee andNomination Committee and a member
of the Audit and Management Engagement Committees.
– Regional REIT Limited: Non-Executive Director,
amember of the Audit, Remuneration and Nomination
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.
– International Public Partnerships: Non-Executive
Director and Chair, Member of Audit and
Risk Committee, Management Engagement Committee,
ESG Committee, and Nomination Committee and
Remuneration Committee.
– Trustee of Cancer Research UK.
Board of Directors and Company Secretary (continued)
7. Ian McHoul
Independent Non‑Executive Director
A* RN
Appointed
1 February 2018 (Ian will retire from the Board on
26 November 2026).
Background and experience
Ian, a Chartered Accountant, was appointed to the
Boardas a Non-Executive Director on 1 February 2018
and appointed 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. Ian has
alsopreviously served as a Non-Executive Director
ofPremier Foods plc, Britvic plc, Young & Co’s Brewery
P.L.C., and Videndum plc.
What Ian brings to the Board
Ian’s financial background and board-level experience
brought extensive knowledge to the Board, and the
AuditCommittee as its Chair.
Other appointments
No other appointments.
Non‑Executive Directors
Bellway p.l.c. Annual Report and Accounts 2026 64GovernanceStrategic Report Accounts Other Information
8. Cecily Davis
Independent Non‑Executive Director
A RN
W
Appointed
1 May 2024
Background and experience
Cecily, a qualified solicitor, was appointed to the Board
asa Non-Executive Director on 1 May 2024. Cecily has
extensive legal experience in the construction and
infrastructure sector, 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 Co-Head
ofthe Africa Group. She has recently been appointed
asBellway’s Non-Executive Director for
Workforce Engagement.
What Cecily brings to the Board
Cecily’s experience brings an invaluable insight to the
Board due to her legal background as well as her senior
executive experience and general management experience.
Other appointments
– Fieldfisher LLP : Partner, Head of Construction
andEngineering and Co-Head of the Africa Group.
9. Philip Harrison
Independent Non‑Executive Director
A RN
Appointed
1 July 2026
Background and experience
Philip joins the Board having been the Chief Financial
Officer of Balfour Beatty plc for more than ten years
before stepping down from its Board on 7 May 2026.
Philip was also a Non-Executive Director at the Dowlais
Group plc, from February 2023 to February 2026,
wherehe was chair of the Audit Committee and a member
oftheNomination and Remuneration Committees.
Prior roles include three years as group Finance Director
at both Hogg Robinson Group plc and VT Group plc.
What Philip brings to the Board
A strong breadth of experience, including board-level
financial expertise in the listed company environment,
listed company boards and board committees,
combinedwith extensive finance leadership and
strategyexperience from across several sectors,
including construction.
Other appointments
No other appointments.
10. Phil Hope
Group Finance Director
and Company Secretary
E
Appointed
Company Secretary on 12 August 2025
Background and experience
Phil, a chartered accountant, joined Bellway in 2010
andhas held various senior finance positions within
theGroup, including that of Group Financial Controller.
In his 16 years at Bellway, Phil has played a key role in
strengthening the Group’s financial management and
governance frameworks, contributing to its continued
growth and resilience in the UK housebuilding sector.
Prior to joining Bellway, Phil was an Audit Manager
atKPMG, where he gained valuable insightinto
financialreporting, corporate governance and
regulatorycompliance across a range of sectors.
Directors who served during FY26
Jill Caseberry stepped down from her position as Chair
of the Remuneration Committee in April 2026 and retired
from the Board as independent Non-Executive Director
on 30 September 2026.
Bellway p.l.c. Annual Report and Accounts 2026 65GovernanceStrategic Report Accounts Other Information
Board of Directors and Company Secretary (continued)
Skills matrix
Key
Housebuilding & Construction
A
A
B
C
D
E
F
G
HI
J
K
L
M
N
O
Land Acquisition & Strategic Land
B
Planning & Development
C
Financial/Accounting
D
Risk Management & Internal Controls
E
Health, Safety & Building Safety
F
Customer & Consumer Experience
G
ESG & Sustainability
H
People & Culture
I
Cybersecurity & Digital
J
Strategy & Corporate Development
K
Listed Company Governance
L
Sales, Marketing & Market Insight
M
Supply Chain & Procurement
N
Regulatory & Government Relations
O
Key
Housebuilding & Construction
A
A
B
C
D
E
F
G
HI
J
K
L
M
N
O
Land Acquisition & Strategic Land
B
Planning & Development
C
Financial/Accounting
D
Risk Management & Internal Controls
E
Health, Safety & Building Safety
F
Customer & Consumer Experience
G
ESG & Sustainability
H
People & Culture
I
Cybersecurity & Digital
J
Strategy & Corporate Development
K
Listed Company Governance
L
Sales, Marketing & Market Insight
M
Supply Chain & Procurement
N
Regulatory & Government Relations
O
Key
Housebuilding & Construction
A
A
B
C
D
E
F
G
HI
J
K
L
M
N
O
Land Acquisition & Strategic Land
B
Planning & Development
C
Financial/Accounting
D
Risk Management & Internal Controls
E
Health, Safety & Building Safety
F
Customer & Consumer Experience
G
ESG & Sustainability
H
People & Culture
I
Cybersecurity & Digital
J
Strategy & Corporate Development
K
Listed Company Governance
L
Sales, Marketing & Market Insight
M
Supply Chain & Procurement
N
Regulatory & Government Relations
O
Board induction packs
Directors receive access to key information
andattendintroductory meetings as appropriate,
includingthe following:
Update on strategy and
progressmade toward it
Meetings with
third‑party advisers
Meetings with key
internal senior leaders
Access to Board documents
includingfinancial information
andorganisational structure
Site visits
Bellway p.l.c. Annual Report and Accounts 2026 66GovernanceStrategic Report Accounts Other Information
Leadership and Culture
The Board is responsible
forestablishing, embedding,
and routinely assessing,
theleadership and culture
ofthe Group. The leadership
activities of the Board, Board
Committees, and management,
are covered within the Division
ofResponsibilities section
onpages 79 to 81.
Our National Employee
Listening Group
We continued with our National Employee
Listening Group, chaired by Cecily Davis,
Non-Executive Director for Workforce
Engagement, in recognition of the
importance of employee engagement to
theBoard in line with the UK Corporate
Governance Code.
This listening group continued to support
the Board in its understanding of the views
of employees and in ensuring they are
considered in Board discussions and
decision making. Cecily continued to
champion the employee voice in the
boardroom, and to strengthen the link
between the Board and employees.
Our Regional Employee
Listening Groups
We continued with our Regional Employee
Listening Groups, which were put in place
tosupport our employee voice strategy.
These groups continue to play a vital part
inensuring that employee views are heard
atall levels of the organisation.
They are instrumental in identifying ideas,
concerns and feedback, and have been
adriver of a number of key initiatives.
Our Employee
Engagementsurvey
We carry out an annual Employee
Engagement survey, which offers every
employee the opportunity to share their
feedback confidentially. The insights
gathered are presented to the Board,
andthe Executive Committee, by the
GroupHR Director and external partner,
andhelp us better understand the
experiences of our employees.
Our culture
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, and the
employee awards. The Board is satisfied
that the Group maintains a strong and
positive culture, which is reflected in
employee feedback, engagement levels
andthe behaviours demonstrated across
the business.
We develop, enhance, and assess the
embedding of our culture through a variety
of activities, including monitoring market
best practice and regulatory requirements,
frequently reviewing and updating our
policies, procedures and training as well
asextensive employee engagement.
For more information on how we engage
with our employees, see page 74
Our values
During the year, supported by an external
partner and aligned with the development
ofthe Bellway brand, we formally introduced
our new Bellway values. The values were
shaped through extensive employee
engagement, including an all-employee
survey and employee listening groups,
ensuring they reflect the culture, behaviours
and aspirations of our people, while
incorporating relevant market best practice.
– Integrity: we do what’s right.
– Care: we put people first.
– Ownership: we own what we do.
– Collaboration: we work together.
Our values guide the way we lead,
collaborate and make decisions across the
business, helping us create and develop
anenhanced culture where everyone feels
respected, supported and able to do their
best work.
Our June 2026 annual Employee
Engagement Survey results show 82%
ofemployees (FY25: 82%) participating
inthesurvey, and 91% of the participating
employees (FY25: 91%) would recommend
Bellway as ‘a great place to work’.
Our diversity and inclusion
The Group’s policies and procedures are
designed to ensure fair treatment for all
employees, irrespective of age, gender,
ethnicity, disability, religion, or background.
We also provide full and fair consideration to
the employment needs of disabled persons
and comply with all relevant legislation
asaDisability Confident Employer.
We continued to work on improving diversity
and inclusion across the Group, taking into
account various external recommendations,
and regulatory requirements.
Bellway’s ‘Balance Network’ is an employee-
led diversity and inclusion (D&I) network and
its aim is to support and promote our D&I
initiatives, raise awareness, and contribute
to creating an inclusive workplace.
Bellway’s Inclusion Steering Committee
comprises senior leaders across the
business. The Committee is responsible
fordriving progress towards the Group’s
diversity and inclusion commitments,
including specifically to increase the gender
and ethnic diversity of the workforce,
including on site and at a senior level.
Mandatory diversity and inclusivity
training,via e-learning, continues to be
issued to allnew joiners and, during FY26,
85.2% of new joiners completed this training
within three months of joining Bellway
(FY25: 87.1%).
Bellway p.l.c. Annual Report and Accounts 2026 67GovernanceStrategic Report Accounts Other Information
Board Activities and Decisions
For more information on how
the Board hasconsidered and
engaged with key stakeholders,
see the Engaging with Key
Stakeholders section on pages
72to 77.
How the Board spent its time
Strategic
– Reviewed our Capital Allocation Strategy, with a focus
onassessing capital efficiency and optimising the
deploymentof resources.
– Managed the launch of our new timber frame facility,
BellwayHome Space and members of the Board attended
itsopening in January.
– Received reports on investor engagements, housing market
trends and sector outlook.
– Kept informed of building safety-related matters through
regular management reports.
– Launched Responsible Business strategy.
– Periodic updates on strategic land matters and evolving
market conditions.
– Conducted the Annual Board Strategy Meeting including
abroker presentation and allowing for discussion of both
theshort andlong-term strategy of the business.
Link to strategic priority
Link to Responsible Business priorities
People
– Received updates from Cecily Davis on our National Employee
Listening Groups.
– Employee Engagement survey results were presented to the
Board, andthe Board agreed actions to improve its results.
– Received regular reports from our Group HR Director relating
toculture andcolleague engagement.
– Approved and launched the new Bellway values.
– Cecily Davis and other members of the Board attended
theBellway EmployeeAwards in April 2026.
Link to strategic priority
Link to Responsible Business priorities
Strategic priorities key
Drive a long-term improvement
inunderlying pre-tax RoE.
Deliver long-term
volume growth.
Operate responsibly and
sustainablythrough our
ResponsibleBusiness strategy.
Responsible Business priorities key
Placemaking and Community
engagement – see page 31.
Charitable support –
see page 31.
Nature –
see page 32.
Customer experience –
see page 36.
Building compliance andquality –
see page 36.
Climate change –
see page 37.
Resource efficiency –
see page 48.
Responsible sourcing –
see page 48.
Employer of Choice –
see page 49.
Training and skillsdevelopment –
see page 49.
Health and safety –
see page 49.
Bellway p.l.c. Annual Report and Accounts 2026 68GovernanceStrategic Report Accounts Other Information
Standing agenda items for
scheduled Board meetings:
Chief Executive’s Report
The Chief Executive’s Report provides
theBoard with an overall update on the
Group’s current operations, highlightingkey
points that require the Board’s attention.
This includes updates on the current market,
key performance indicators, sales, health and
safety, and customer satisfaction.
Chief Financial Officer’s Report
This report gives the Board an overview of
the Group’s actual and forecast financial
position and performance. This includes an
investor relations update, capital allocation
and cyber KPIs.
Chief Commercial Officer’s Report
Gives the Board an update on both
immediate and strategic land progress
aswell as HR, Building Safety and Bellway
Home Space matters. It also includes
anyregulatory and legal updates, and
givesanydetails of commercial matters
thattheBoard needs to be informed about.
Company Secretary’s Report
This report gives the Board an update
oncorporate governance matters,
policyreviews and updates on any
whistleblowing matters.
Other matters reserved for the Board
In addition to the Board’s standing agenda
items, there is also a number of other
matters that are reserved for the Board
thatare discussed periodically in the Board’s
calendar. These include, but are not limited
to, Responsible Business strategy updates,
gender pay gap report review, Board objectives
review, a health and safety review and update.
Financial
– Approved and maintained oversight of the share buyback
programme announced on 14 October 2025, monitoringits
ongoing implementation and progress.
– Regularly reviewed and assessed the Company’s cash
flow performance.
– Reviewed the Companies debt and capital structure.
– Approved our Tax Strategy.
– Reviewed insurance arrangements as part of the annual
renewal process.
– Approved the proposed final dividend forFY25 and interim
dividend for FY26,having considered the financial strength
ofthebalance sheet.
– Received Investor Relations reports, including feedback
fromshareholders and analysts in connection with the
2025full-year results and the 2026 interim results.
Link to strategic priority
Link to Responsible Business priorities
None
Governance, Compliance and Risk
– Approved the appointment of Gill Barr and Philip Harrison
asNon-Executive Directors.
– Approved the appointment of Phil Hope asGroup
Company Secretary.
– Undertook and considered an external evaluation of
theBoardand each of the Committee’s effectiveness.
– Received reports and approved recommendations
fromtheNomination,Audit,Remuneration and
Sustainability Committees.
– Oversaw the dissolution of the Sustainability Committee
andthe transition of theCommittee’s responsibilities
tonowfall within the remit of the Board.
– Reviewed and updated each Committee’s Terms
ofReferenceto ensure they remained effective
andalignedwith governance requirements.
– Reviewed the Company’s compliance with the 2018 Code
andmonitored and implemented initiatives supporting
compliance with the 2024 Code.
– Received the Company’s risk appetite to ensure it remained
aligned with the Company’s strategic objectives and
operatingenvironment.
Link to strategic priority
Link to Responsible Business priorities
Bellway p.l.c. Annual Report and Accounts 2026 69GovernanceStrategic Report Accounts Other Information
Section 172 Statement and Stakeholder Engagement
Section 172(1) statement and
stakeholder engagement
The Board remains committed to acting in
away that promotes the long-term success
of the Group for the benefit of its members
as a whole, in accordance with Section 172(1)
of the Companies Act 2006. In doing so,
theBoard has given careful consideration
ofthe interests of stakeholders and the
broader impact of their decisions on the
environment, community, and reputation
ofthe Group.
Throughout the financial year ended 31 July
2026, the Directors have actively engaged
with stakeholders to understand their views,
needs, and concerns. This engagement
hasinformed strategic decision making
andhelped ensure that the Group continues
to operate responsibly, sustainably, and in
alignment with its values.
How our Directors fulfill their Section 172 duty
Board report
Throughout the year, the Board received detailed reports
and in-person updates from various members of the
Executive Committee and Board-delegated committees
onall aspects of the Company. This is an opportunity for
theBoard tochallenge and debate the topics brought to
theirattention. Updates on the progress of previous Board
decision implementation are provided. This allows the
Boardto monitor, review and amend where appropriate,
assituations evolve.
For a more in-depth look
into each committee
seetheCommittee
reports on pages
86to129
Board discussion and decisions
All Directors are expected to contribute, engage, and
constructively challenge discussions, ensuring each
Director is offering a different perspective. This gives the
opportunity for a comprehensive evaluation to take place
and ensure every Board decision is in the best interest
ofthe members, and promotes the long-term success
ofthe Company.
See pages 68 to 69
for key decisions and
activities made by the
Board throughoutyear
Governance framework
The Executive Committee lead on the day-to-day running
ofthe business, members of the Executive Committee then
report to the relevant committees with the Board having
overall oversight of the Committee.
Each Board Committee has a robust substantive agenda
and Terms of Reference that set out their responsibilities
and duties.
Knowledge and experience
Across the Board, there is an extensive range of
knowledgeand experience ranging from legal and financial
to marketing and sales. A comprehensive skills matrix is
performed annually to ensure the Board has all the relevant
and necessary skills toensure they are in the best possible
position to make the decisions required ofthe Board.
The Board also have access to the Group Finance Director
andCompany Secretary, whois able to advise the Board
onallgovernance matters they may require.
For more information
seepage 79
Section 172 principles
A. The likely consequences of any
decision in the long term
– Business Model pages 24 to 28
– Responsible Business strategy pages
29to 49
– Stakeholder Engagement pages 72 to 77
– Principal Risks pages 53 to 56
B. The interests of the Group’s employees
– Responsible Business strategy pages
29to 49
– Stakeholder Engagement pages 72 to 77
– Nomination Committee pages 86 to 89
C. The need to foster the Group’s business
relationships with suppliers, customers
and others
– Business Model pages 24 to 28
– Responsible Business strategy pages
29to 49
– Stakeholder Engagement pages 72 to 77
D. The impact of the Group’s operations
on the community and the environment
– Business Model pages 24 to 28
– Responsible Business strategy pages
29to 49
E. The desirability of the Group
maintaining a reputation for high
standards of business conduct
– Business Model pages 24 to 28
– Responsible Business strategy pages
29to 49
– Stakeholder Engagement pages 72 to 77
– Risk Management pages 50 to 52
F. The need to act fairly between members
of the Group
– Stakeholder Engagement – Employees
page 74
– Remuneration Report pages 104 to 124
Bellway p.l.c. Annual Report and Accounts 2026 70GovernanceStrategic Report Accounts Other Information
Major decisions and activities of the Board
Share buyback New Responsible
Business strategy
New brand
In October 2025, the Group announced the Board
hadapproved a return of surplus capital of £150m
toshareholders to be implemented through a share
buybackprogramme. The buyback programme
commenced on14 October 2025 with an initial tranche
of£75m, whichended in April 2026.
Bellway entered into a new arrangement for the second
£75m tranche of the share buyback programme; this
completed in August 2026.
In August 2026, the Board approved an initial £50m
tranche of the second buyback programme, which was
subsequently increased to £75m in October 2026 as part
of the £150m programme of shareholder returns intended
for FY27. The second buyback programme commenced
on 1 September 2026. All ordinary shares repurchased by
the Group under the share buyback programme will
be cancelled.
In November 2025, a Sustainability Strategic Review,
delivered by Bellway and our advisers Sodali & Co,
assessed the ‘Better with Bellway’ strategy and identified
a future approach, which led to the creation of our new
Responsible Business strategy.
The Company’s sustainability governance framework has
developed considerably since the launch of the ‘Better with
Bellway’ strategy in 2022 and the creation of the Sustainability
Committee in 2023. As part of the Sustainability Strategic
Review, the Committee carefully considered the advantages
and disadvantages of maintaining a dedicated Board
committee to oversee the development and execution of
the new Responsible Business strategy. Having weighed
these carefully, and reflecting the maturity the governance
framework has now reached, the Committee concluded
that its responsibilities should transfer to the fullBoard.
Elevating oversight to the full Board will ensure the
directinvolvement of all Directors in sustainability
oversight andstronger integration of responsible
business considerations into strategic decision making.
The streamlining of governance structures is also
expected to enable more efficient decision making.
In March 2026, we announced our new branding.
Our customers are changing, and so are we.
The refreshed brand gives us more flexibility to connect
with customers across digital channels and ensures our
brand looks and feels modern, consistent and reflective
of our Company culture.
The brand update is grounded in extensive customer
andcolleague research; this simplified, single brand
approach enables us to achieve simplification,
efficiencies, reinvestment and growth.
The decision was made to sunset the Ashberry brand
over the next three to four years, meaning existing and
new developments will gradually transition to the main
Bellway brand, creating a simpler and clearer experience
for customers and colleagues.
This update supports a more digital-first approach,
creating a simpler and more joined up journey for
customers, particularly online. It helps make it easier
toengage with us, while ensuring we continue to deliver
the same high-quality homes and service people expect
from Bellway.
Bellway p.l.c. Annual Report and Accounts 2026 71GovernanceStrategic Report Accounts Other Information
Engaging with Key Stakeholders
A clear approach
tounderstanding
stakeholder needs
As a FTSE 250 housebuilder,
theGroup recognises its
long-term success depends
on maintaining transparent
andresponsible relationships
with abroadrange
of stakeholders.
During the year, the Group strengthened
itsapproach to stakeholder engagement,
including undertaking its most extensive
external engagement to date as part of
itsbrand project. The findings were used
toinform the Group’s evolving brand
positioning and strategic approach.
Significant internal engagement took
placefor the brand project, to support
thedevelopment of the Group’s newvalues,
and the implementation ofWorkday,
ournew HR and payroll system.
In FY26 to refresh our sustainability
strategy,we also conducted a
comprehensive DMA, tounderstand
thetopics we should focus our strategy on.
Through in-depth interviews and higher-level
surveys, we sought the views of key
stakeholders, including Executive Committee
Members, Non-Executive Directors, supply
chain partners, industry representatives,
Bellway colleagues, and customers.
The results of the DMA created a priority
listof topics, which then fed into our
comprehensive sustainability strategic
review, and the resulting move away from
‘Better with Bellway’ to the new Responsible
Business strategy.
This section outlines the Group’s key
stakeholders, how we engage with them,
and how stakeholder feedback informs
ourgovernance and business strategy.
For further details on Board activities during
the year, and how stakeholder views have
been considered, see pages 68 to 69.
Key stakeholder Page
Customers
Read more on page 73
Employees
Read more on page 74
Investors, analysts andadvisers
Read more on page 75
Partners and supply chain
Read more on page 75
Local communities and the environment
Read more on page 76
Government andregulators
Read more on page 77
Bellway p.l.c. Annual Report and Accounts 2026 72GovernanceStrategic Report Accounts Other Information
Why we engage
Engaging directly with customers enables
the Group to understand the challenges
they face, ensuring products, services and
communications continue to evolve in line
with customer expectations.
How we engage
– Research and insight
– Digital channels and social media
– Your Bellway customer portal
– Post-completion customer care
– Customer satisfaction surveys and
third-party reviews
– Meet the Builder and Pre-Plaster meetings
– Building Safety through Resident Liaison
Officers and digital channels
Key topics raised
– Brand positioning and industry positioning
– Customer service and communication
– Build quality and customer care
– Sustainability and energy efficiency
– Innovation and digital tools
– Affordability and mortgage availability
Engagement outcomes
A new brand positioning strategy
wasdeveloped, following stakeholder
feedback, leading to an enhanced customer
experience strategy being launched
and implemented.
Enhancing the digital customer journey
remained a key focus. We implemented
thenew brand across all digital touchpoints,
including our websites, Welcome Centre
digital displays, email marketing, and digital
advertising channels.
Our customer websites were further
developed to offer detailed, plot-level
information, enhancing transparency
andenabling customers to make more
informed purchasing decisions.
We also introduced online appointment
booking, creating a more seamless and
convenient experience for customers to
book appointments with our sales teams.
Alongside this, we achieved an ‘Excellent’
Trustpilot rating, highlighting the strength
ofour customer reviews, which also plays
anincreasingly important role in visibility
across AI-driven and search-led
digital channels.
We also improved access to information,
including guidance on new technologies
ahead of the Future Home Building
Regulations introduction in 2027.
Ongoing improvements to customer
careprocesses, transparency and board
reporting resulted in the highest customer
satisfaction scores among volume listed
homebuilders. We achieved 5-star
homebuilder⁴ status for the tenth
year running.
We further strengthened our resident
andleaseholder engagement on building
safety and remediation with the roll-out
ofdevelopment-specific communications
portals, and digital Resident
Remediation Packs.
Performance overview
4.19
HBF 9-month survey score
5.7k
customer and prospective
customerparticipants in
Bellwaybrandresearch
22,658
Users registered on Your Bellway
(FY25: 14,278)
47
Pride in the Job Awards
(FY25: 47)
Board-level engagement
The Board receives regular updates on
customer satisfaction performance through
the Home Builders’ Federation (HBF)
Customer Satisfaction survey data, through
complaints monitoring and key initiatives,
with particular focus on feedback from
customer surveys and building safety
remediation activity.
The Group Customer Experience and
Marketing Director and Group Construction
Director regularly report to the Board on
keycompany metrics relating to customer
initiatives and construction quality scores.
Impact of Board decision making
Customer insight continues to play a
centralrole in shaping strategy, particularly
in relation to quality, customer experience
anddigital transformation.
Our new brand roll-out is designed
specifically around the Customer
Experience and this project has received
significant Board scrutiny and approval
onan ongoing basis, with continued Board
governance as the project roadmap
is implemented.
Customers
Bellway p.l.c. Annual Report and Accounts 2026 73GovernanceStrategic Report Accounts Other Information
Why we engage
As a responsible business, the Group is
committed to being an employer of choice
and recognises that engaging with our
colleagues is essential to building a
high-performing, and inclusive, culture.
How we engage
– Annual Employee Engagement Survey
– Pathway employee experience app
and intranet
– Regional and National Employee
Listening Groups
– Mi Experience, performance
management platform
– Health and wellbeing surveys
– Training and development programmes
– Webinars and town halls
Engagement outcomes
There was extensive colleague involvement
in the development of the Group’s new brand
strategy and enhanced values, and an
All-Company town hall for their launch.
Development of Pathway andemployee
communications continued and new tools
were adopted to broaden channels
toengage colleagues.
We launched clearer, more structured,
career pathways with an increased focus
onperformance conversations and
development planning.
We delivered engagement activity to
support the design and implementation
ofthe Workday HR and payroll
management system.
Performance overview
82%
Employee Engagement Survey
response rate
(FY25: 82%)
91%
Colleagues registered on Pathway
(FY25: 92%)
298
Mental health advocates
(FY25: 290)
Board-level engagement
The Board receives regular updates from
theGroup HR Director, including detailed
analysis of engagement survey results,
andfeedback from Listening Groups.
There was Board-level oversight of the
development and implementation of our
values across the Group.
A Non-Executive Director chairs National
Listening Group meetings.
Each Non-Executive Director undertakes
individual divisional visits and joins the
Board on formal site visits.
Impact of Board decision making
The Board spent significant time reviewing
the Employee Engagement Survey results
and ongoing feedback from national and
regional Listening Groups.
Employee feedback helped shape
keyinitiatives during the year, including:
therollout of our new brand; Workday
implementation; and the development
oftheGroup’s values.
Employees
Key topics raised
– New brand strategy
– Defining our values
– Internal communications
– Performance management
and development
– Improving performance conversations
– Wellbeing and work-life balance
– Diversity and inclusion
– Career progression
– Improvement in technology
forsite-based colleagues
Our 2025 Graduate
cohort during
their induction.
Engaging with Key Stakeholders (continued)
Bellway p.l.c. Annual Report and Accounts 2026 74GovernanceStrategic Report Accounts Other Information
Why we engage
We provide timely and transparent
information on the Group’s performance
and strategy to support informed decision
making, build trust and maintain
investor confidence.
How we engage
– Trading updates, interim and full-year
results announcements
– Results presentations and
investor roadshows
– Site visits and investor events
– One-to-one meetings
– Annual General Meeting (AGM)
– Targeted engagement on key strategic
developments, including our Responsible
Business strategy, brand launch and
refreshed values
Key topics raised
– Market conditions and
consumer confidence
– Capital allocation and shareholder returns
– Executive remuneration
– Building safety remediation
– ESG and responsible business
Engagement outcomes
Regular engagement on strategy, trading
performance and responsible business
initiatives continued to support strong
relationships with investors and analysts.
Feedback from this is used to shape future
communications, ensuring messaging aligns
with investor expectations and priorities.
Regular updates on the remediation
oflegacy developments enables us to
demonstrate our prudent and responsible
approach to building safety.
91.1m
votes cast at the 2025 AGM
Representing
77.5%
of the Company’s issued share capital
(2024: 92.5m votes; 77.7%).
All resolutions were passed.
Following the launch of our refreshed
brand,we relaunched the corporate website,
whichserves as the primary digital hub
forshareholders and analysts.
Information about the November 2026 AGM
canbe found in the Notice of Meeting which
is available on the corporate website:
www.bellwayplc.co.uk/investor-centre.
Board-level engagement
The Board receives regular updates from the
Group IR Director on shareholder
engagement, including feedback from
trading updates, results presentations and
the AGM, ensuring investor perspectives are
considered in Board discussions.
Impact of Board decision making
Investor feedback informs the Board’s
approach to communication, capital
allocation and long-term value creation,
which has helped shape the development
and ongoing refinement of our Responsible
Business strategy.
Investors and analysts
Performance overview
Partners and supply chain
Why we engage
Partners and the supply chain are
fundamental to our success. We maintain
long-standing, sustainable partnerships,
which have proven valuable during periods
of supply chain disruption, inflationary
pressures, and the transition towards net
zero. These pressures have been heightened
due to the ongoing conflict in the Middle
East and the impact it has had on global
supply chains.
Weworkclosely with partners to deliver
more sustainable products at the scale
required for a volume housebuilder.
How we engage
– Ongoing supply chain dialogue
– Supplier Engagement Programme
covering five key areas of the Carbon
Disclosure Project (CDP)
– Supply Chain Sustainability School
– Supplier engagement through our
FutureHome at Energy House 2.0
atTheUniversity of Salford
– Bellway Home Space timber frame facility
– Health and safety
– Modern Slavery compliance
Key topics raised
– Supply chain inflation and disruption
– Energy cost inflation
– Skills shortage
– Upskilling ahead of Future Home
BuildingStandards in 2027
– Health and safety
– Sustainability
– Cyber security
– Modern slavery
– Carbon reduction
Engagement outcomes
We work with subcontractors and suppliers
to ensure they manage the risk of modern
slavery occurring andhave measures
inplace to ensurepartner compliance.
We undertook a third controlled research
project of heating at Energy House 2.0,
driving learnings that can be shared with
thesupply chain and SMEs. Supplier and
industry visits to the Energy House 2.0
project help drive awareness and provide
education on how to deliver the low-carbon
homes of the future. We worked with key
supply chain partners on the commissioning
and launch of Bellway Home Space which
hosts our Future Home timber frame house
and is used to educate and inform supply
chain partners.
We work closely with our key partners to
reduce embodied carbon inthesupply chain
and minimise waste.
Board-level engagement
The Board maintains active oversight of
ourpartners and supply chain, receiving
regular updates and reports on key matters
including our sustainability supply chain
targets. The commercial and technical
teams ensure ongoing communication with
the Board. These updates include
detailedassessments and strategic
recommendations, ensuring alignment
withour corporate strategy.
Impact of Board decision making
The Board carefully considers the impact of
its decisions on partners. The effectiveness
of the sustainability strategy depends
on their active collaboration and support.
This strategic, partnership-led approach
ensures that decisions are made with
aclearfocus on mutual benefit and positive
outcomes for all stakeholders involved.
Bellway p.l.c. Annual Report and Accounts 2026 75GovernanceStrategic Report Accounts Other Information
Why we engage
Bellway’s commitment to local communities
goes beyond building high-quality homes and
desirable communities in areas ofhousing
need. We actively cultivate relationships
withlocal suppliers and subcontractors,
supporting job creation andcontributing
tothe regeneration and development of
local infrastructure.
Our community outreach includes
partnerships with schools, charitable
organisations, and other key local
stakeholders. Through these initiatives,
weaim to make a lasting, positive impact
inthe communities where we operate.
How we engage
– Public consultations throughout
theplanning process
– Gather feedback from
community engagement
– Section 106 and Section 75, Community
Infrastructure Levy and affordable
housing contributions
– Engage with environmental consultants
and community groups
– School outreach programmes
– Volunteering with local and national causes
– Partnerships
– Local, regional and social media
Key topics raised
– Affordability and supply of housing
– Planning and community engagement
– Biodiversity
– Home efficiency and sustainability
– Environmental issues
– Impact on existing communities
and infrastructure
Engagement outcomes
The feedback we gather through
communityengagement directly informs
thedevelopment of our schemes, helping
usto create a place through the design
ofour homes and public realm that meet
local needs.
Affordable housing is integral to our
developments and working together with
affordable housing providers and local
authorities. In FY26, we delivered 2,064
affordable homes, representing 21.3%
oftotal housing completions.
Our developments generate significant
investment in local communities, with
fundsallocated to improve or build schools,
healthcare facilities, roads, recreational
spaces, and other essential services.
These contributions, managed by local
authorities, help ensure that infrastructure
keeps pace with housing growth.
We worked with our partner, Plantlife,
topromote native-focused gardening
inourshow homes through a scheme
designed to promote biodiversity.
We launched a dedicated volunteering
platform, with Neighbourly, to help us
achieve our target of 4,000 volunteer
hoursper financial year.
Performance overview
£59.5m
paid through contributions
totheplanning process
21.3%
of completions were social housing
4,115
hours of volunteering were
undertakenby Bellway colleagues
Board-level engagement
The Board fully supports engagement
withnational and local charities and local
community organisations, recognising them
as integral to our sustainability strategy.
This strategy has received the Board’s full
endorsement, highlighting our commitment
to making a positive impact beyond our
core operations.
The Board also actively supports
theintroduction of new initiatives that
encourage colleague participation in charity
and community activities.
Impact of Board decision making
Community feedback on planned
developments plays a vital role in the Board’s
decision-making process, particularly when
assessing the feasibility ofa project before
moving forward. This input helps us
understand local sentiment andensure our
developments align with community needs
and expectations.
Community engagement, charitable
fundraising and volunteering initiatives are
key components of our sustainability
strategy. These efforts are regularly
reported to the Board and actively shape
our future strategies and direction.
Local communities and the environment
Jason Honeyman and
Laurence Guinness,
Chief Executive
of Variety, the
Children’s charity
handing over the first
Bellway and Variety
Sunshine coach.
Engaging with Key Stakeholders (continued)
Bellway p.l.c. Annual Report and Accounts 2026 76GovernanceStrategic Report Accounts Other Information
Why we engage
We maintain regular and constructive
engagement with government departments,
opposition parties and regulatory bodies,
recognising the important role they play
inshaping the legal and regulatory
environment in which we operate.
Local government is also critical to our
business, particularly through the planning
system and regional policy decisions that
influence our developments. In addition,
wework closely with industry bodies,
suchas the HBF, to help address shared
challenges and contribute to the
development of housing policy and
best practice.
How we engage
– We engage directly with policymakers
tosupport a policy environment that
enables sustainable growth.
– At a local level, we work closely with
authorities and other stakeholders
toensure our developments reflect
regional priorities and respond to local
housing needs.
– Our engagement is supported by a
coordinated approach to communication
with Members of Parliament, the Welsh
Assembly and Scottish Parliament, as well
as key stakeholders, alongside continued
investment in communities through
Section 106, Section 75 and Community
Infrastructure Levy (CIL) contributions.
– We actively engaged with the Competition
and Marketing Authority (CMA) during its
investigation into seven UK housebuilders.
Building on our commitments to building
safety, Bellway continues to engage
constructively with the English, Scottish
andWelsh Governments and have
contributed to ongoing dialogue with
government on addressing delays to
undertaking remediation activity,
causedbyongoing delays to approvals
through theBuilding Safety Regulator.
Board-level engagement
The Board has remained fully engaged with
the key challenges facing the housebuilding
sector throughout the year. In particular,
ithas closely monitored the evolving
macroeconomic environment, including
ongoing geopolitical instability in the
Middle East.
Recognising the potential implications for
delivery, affordability and customer demand,
the Board has maintained this as a priority
area of focus, ensuring that appropriate
mitigations are in place to support
operational resilience and the continued
supply of new homes.
Despite making significant progress,
building safety remediation remains one of
our most significant operational priorities.
The Board has continued to oversee
progress closely, with a clear emphasis
onaccelerating delivery to ensure affected
buildings are remediated as quickly and
safely as possible.
Impact of Board decision making
Housing strategy remains inherently linked
to the political and regulatory environment,
with shifts in government policy and broader
economic conditions continuing to shape
the outlook for the housebuilding sector.
The Board remains focused on evaluating
the implications of evolving policy, carefully
considering both the opportunities and risks
that may arise.
Government and regulators
– We share insights from our Future Homes
projects as part of our membership of the
Future Homes Hub.
– We work with industry bodies to maintain
compliance with the New Homes Quality
Code, and hold regular meetings with
UKGovernment MHCLG officials and
devolved governments on building
remediation activities.
Key topics raised
– Customer service
– Digital transformation
– Build quality and customer care
– Future Homes Building Standards
– Sustainability
– Innovation
– Mortgage availability and interest rates
– Legacy building safety improvement
Engagement outcomes
Our customer care teams actively
monitor compliance with the NHQC.
When complaints are escalated to the
NHQB, we take prompt action to address
any areas of non-compliance. These matters
are regularly reported to the Board to
ensure accountability and
continuous improvement.
The Group has actively participated
intheCMA investigation into possible
anti-competitive conduct by seven
housebuilders, including Bellway,
andinOctober 2025, signed an industry
agreement to bring the investigation
toa close.
Bellway p.l.c. Annual Report and Accounts 2026 77GovernanceStrategic Report Accounts Other Information
Board leadership
The Board, and its Board Committees, provide the over-arching governance to the Group, and the Board is the principal decision-making body responsible for ensuring the adequacy
of the Group’s governance. The Executive Directors, and the Executive Committee (a management committee), are responsible for ensuring the business leadership are fully
informed of the Board, and Board Committee, governance requirements. This framework is detailed as follows.
Governance Framework
Audit
Committee
– Annual internal control and
riskmanagement review.
– Annual Policy
compliancereview.
– Reviews and approves
thedraft Annual Report
andAccounts.
– Audit plan and review of
Auditor Policy.
– Monitors the integrity of the
financial statements.
– Reviews internal audit plan
and the effectiveness of the
internal audit function.
– Approves the annual
Anti-Slavery and Human
Trafficking Statement.
Read more on pages
90 to 103
Nomination
Committee
– Reviews the structure, size
and composition of the
Board,in accordance with
theBoard’sDiversity Policy,
andcurrentlegislation.
– Considers succession
planning for the Board and
their direct reports.
– Identifies candidates to
fillBoard vacancies and
nominates these for
Boardapproval.
– Considers diversity and
inclusion targets for the Group.
– Annual performance
evaluation of the Committee.
– Keeps under review the range
of skills and experience on
theBoard.
Read more on pages
86 to 89
Remuneration
Committee
– Reviews and determines
salaries and other elements
ofremuneration package
ofindividuals under the
Committee’s remit.
– Works with external
advisers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.
– Reviews the
RemunerationPolicy.
– Ensures practices are
designed to support and
promote the long-term
success of the Company.
Read more on pages
104 to 124
Sustainability
Committee
– Oversaw ESG matters
for Bellway, including the
Responsible Business strategy.
– Reviewed industry best
practice in respect of
ESGcompliance.
– Reviewed and approved
Responsible Business strategy
targets and KPIs.
– Reviewed relevant policies
and determined their
appropriateness in
supportingthe Group’s
sustainability agenda.
– Met at least twice a year,
andwhen otherwise required.
During FY26, the
Sustainability Committee
was dissolved and its
responsibilities allocated to
either the Board, other Board
Committees, or management.
For more information, refer to
the Sustainability Committee
Report on pages 125 to 126
Executive
Directors
Business
Leadership
Executive
Committee
Head Office Senior
Management Team
Board of Directors
– Sets and defines the Group’s purpose and values, which drives the
Group’s culture.
– Reviews, considers and approves major transactions and investments
forthe Group.
– Oversees the risk appetite of the Group and ensures sufficient controls.
– Annual review of subcommittee Terms of Reference and the
delegatedauthority.
– Sets and drives the Group’s strategies, including sustainability,
volumegrowth, value creation and capital allocation.
– Provides oversight of corporate governance and ensures effective
engagement with stakeholders.
Divisional
Boards
Bellway p.l.c. Annual Report and Accounts 2026 78GovernanceStrategic Report Accounts Other Information
Commitment to Governance
The Board is committed to maintaining high
standards of corporate governance and
promoting a positive, inclusive and ethical
culture throughout the Group.
Bellway applies the principles of good
governance in accordance with the Code.
Further detail on how it applies the Code
isprovided as follows and in the Board
Committee Reports.
Leadership
The Board is collectively responsible to
shareholders for promoting the long-term
sustainable success of the Group. It sets
the strategic direction, oversees management
performance, ensures the availability of
adequate resources, definesthe Group’s
values and culture, and ensures the
businessmeets its legal, ethical and
stakeholder obligations.
At the date of this report, the Board
comprises nine Directors: three Executive
and six Independent Non-Executive
Directors, including the Chair. Details of
theDirectors and their responsibilities are
set out on pages 62 to 66.
To support effective oversight, and decision
making, the Board has established a clear
governance framework and delegation
structure, supported by prudent and
effective systems of internal control
andrisk management.
Role Responsibilities
Chair
John Tutte
– Leading the Board and ensuring its overall effectiveness.
– Promoting the highest standards of integrity, probity
andcorporate governance.
– Ensuring that the correct cultural tone is set from the top.
– Ensuring that the Group complies with the requirements of
theCode and adheres to the highest standards of governance.
– Setting the Board’s agenda.
– Ensuring the Directors receive accurate, timely and
clear information.
– Ensuring effective communication with shareholders.
– Ensuring the productive conduct of Board meetings and
facilitating the effective contribution of all Directors,
andtheGroup Finance Director and Company Secretary.
– Leading the Board’s performance evaluation, its Board
Committees, its individual Directors, and the Group Finance
Director and Company Secretary.
– Overseeing the induction of newly appointed Board Directors
and the development of existing Board Directors.
– Ensuring the views of shareholders are communicated to the
Board as a whole.
– Encouraging constructive relations between the Executive and
Non-Executive Directors, and the Group Finance Director and
Company Secretary.
– Approving land purchases over specified limits in conjunction
with the wider Board.
Chief Executive
Jason Honeyman
– Implementing the strategy agreed by the Board.
– Leading the Executive Directors, Group Finance Director
andCompany Secretary and the Senior Management team
intheday-to-day running of the Group.
– 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 the Group’s 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, and
technical, commercial and Health and Safety departments.
Bellway p.l.c. Annual Report and Accounts 2026 79GovernanceStrategic Report Accounts Other Information
Role Responsibilities
Chief Financial Officer
Shane Doherty
– Supporting the Chief Executive in fulfilling his duties.
– Devising and implementing the financial strategy and policies
ofthe Group, including treasury and tax.
– Ensuring a robust financial control across the Group.
– Developing budgets and financial plans.
– Leading the Group’s investor relations activities.
– Approving land purchases within specified limits.
– Delivering the Board-agreed sustainability and ESG strategy
withthe Chief Commercial Officer.
– Developing an IT strategy and cyber security, which remains
fitfor purpose in the evolving world.
Chief Commercial Officer
Simon Scougall
– Supporting the Chief Executive in fulfilling his duties.
– Approving land purchases, within specified limits.
– Keeping the Board regularly updated on land, legal, regulatory,
commercial and human resource matters.
– Leading the legal compliance throughout the Group, including
ensuring policies and procedures are maintained and updated
ona regular basis.
– Overseeing the land/strategic land and planning, human resource
and legal functions as well as Bellway Home Space and the
Building Safety division.
– Working with the Chief Financial Officer on the delivery of the
sustainability and ESG agenda.
– Leading the operations at the Group’s Head Office.
Senior Independent
Non-Executive Director
Sarah Whitney
– Acting as a sounding board for the Chair, Executive Directors,
and the Group Finance Director and Company Secretary.
– Being available to shareholders.
– Leading the annual appraisal of the Chair.
– Holding meetings with the Non-Executive Directors without
theChair present.
Non-Executive Director for
Workforce Engagement
Cecily Davis
– Chairing the Bellway Group’s ‘National Employee
Listening Group’.
– Reporting to the Board on key employee concerns to support
the Board in gaining an understanding of the views of
the workforce.
– Providing feedback to employees and explaining actions taken
inresponse to their concerns.
– Challenging the Executive team on the Group’s approach
toworkforce engagement and ensuring concerns raised
byemployees are addressed.
Governance Framework (continued)
Bellway p.l.c. Annual Report and Accounts 2026 80GovernanceStrategic Report Accounts Other Information
Role Responsibilities
Independent Non-Executive
Directors
– Constructively challenging management.
– Contributing to the development of the Group’s strategy.
– Scrutinising the performance of management.
– Ensuring the integrity of financial information and
financial controls.
– Ensuring systems of governance and risk management
are robust.
– Ensuring the integrity of cyber security controls and that
systems are robust.
– Determining appropriate levels of remuneration for the
ExecutiveDirectors, Group Finance Director and Company
Secretary, Regional Chairs, and Executive Committee.
– Appointing and removing Executive Directors and
succession planning.
– Serving on the Board Committees.
Gill Barr Ian McHoul
Philip Harrison
Group Finance Director
and CompanySecretary
Phil Hope
– Supporting the Chair and Chief Executive in fulfilling their duties,
including the facilitation of the Board, and its Board Committees,
annual performance review and Director inductions.
– Keeping the Board regularly updated on corporate governance
matters and best practice, and ensuring the Board has the
policies, processes, information, time and resources it needs
tofunction effectively and efficiently.
– Being available to all Directors for advice and support,
individually and collectively.
– Attending meetings and maintaining a record of the matters
discussed at the Board, and the Board Committees, and ensuring
good information flows within the Board, its Board Committees,
the Executive Committee and Senior Management.
– Assessing and advising the Board on compliance with the
Listing,Prospectus, Disclosure Guidance and Transparency
Rules, the Corporate Governance Code and the Companies Act,
and arranging any required training.
– Overseeing the Company secretarial, financial reporting,
commercial finance, treasury and tax departments.
– Supporting the Chief Financial Officer in implementing
anddelivering the Group’s financial strategy and policies.
Executive Committee
– Recommending the objectives and strategy of the Group
totheBoard for its approval.
– Overseeing the implementation of the objectives and strategy
asapproved by the Board.
– Ensuring the identification, management and monitoring of risks
and the implementation of effective internal controls.
– Overseeing the day-to-day management of the Group in
accordance with the approved objectives and strategies.
– Reviewing the performance, development and succession
planning of senior management.
Head Office Senior
Managementteam
– The Head Office Senior Management team consists of the
Group’s Directors and heads of department, who meet on a
bi-monthly basis, to provide updates and collaborate on projects.
Bellway p.l.c. Annual Report and Accounts 2026 81GovernanceStrategic Report Accounts Other Information
Board effectiveness
All Directors have access to the advice
andservices of the Group Finance Director
and Company Secretary, and the Company
secretarial department. All 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 Directors
will retire from the Board and, if applicable,
offer themselves for re-election at the
forthcoming Annual General Meeting (AGM).
None of the Executive Directors hold
external directorships.
The Board, its Board Committees, and its
individual Directors, are subject to annual
performance evaluation, and all Directors
are subject to annual re-election by
the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 Review,
theFTSE Women Leaders Review, and the
FCA disclosure rules. These are taken into
careful consideration when addressing
Board succession.
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.
The following strategic priorities were
focused on during the most recent
strategy day:
– Drive a long-term improvement in
underlying pre-tax RoE.
– Deliver long-term volume growth.
– Operate responsibly and sustainably
through the Responsible
Business strategy.
Informal Board dinners take place 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.
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, which is
reviewed at each Board meeting.
The Chair and
Executive Directors
attended the opening
of Bellway Home
Space, our new timber
framefacility.
Governance Framework (continued)
Bellway p.l.c. Annual Report and Accounts 2026 82GovernanceStrategic Report Accounts Other Information
Membership and meetingattendance
Director Date appointed to the Board
Number
of meetings
attended during
the year
Jason Honeyman 1 September 2017 8/8
Shane Doherty 2 December 2024 8/8
Simon Scougall 1 August 2024 8/8
Sarah Whitney 1 September 2022 8/8
Ian McHoul 1 February 2018 8/8
Gill Barr 15 September 2025 8/8
Cecily Davis 1 May 2024 7/8*
Philip Harrison 1 July 2026 3/3**
Jill Caseberry 1 October 2017 8/8
* Due to illness, Cecily Davis could not attend the July Board meeting.
** Philip Harrison joined the Board on 1 July 2026.
Matters Reserved for the Board
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, Group policies
andother miscellaneous items.
In addition, a series of matters are dealt
withat regular Board meetings including:
– the operational and strategic review;
– financial review;
– major land acquisitions;
– major projects;
– risk;
– health and safety;
– sales and customer care;
– human resources;
– reporting requirements; and
– corporate governance and
internalcontrol, including any
whistleblowingissues.
In between Board meetings, the Directors
receive updates from the Chair, the Executives,
and the Group Finance Director and
Company Secretary, to advise them of any
significant matters affecting the Group or
its performance.
Each division 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. This creates a culture that motivates
andrewards all Bellway employees.
Bellway promotes a supportive culture
thatenables its 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 employee awards. Therefore,the Board
has concluded that the corporate culture of
the Group is of a high standard.
The Executive Directors, and the Group
Finance Director and Company Secretary,
regularly meet with the divisions during the
year. The Board also receives presentations
from the external advisers, Regional Chairs
and certain Group Functional Heads, with an
update on their operating area including the
opportunities and challenges they face.
Meetings with operational management
ensure that the Board’s standards and
values for integrity and honesty
are disseminated.
Bellway p.l.c. Annual Report and Accounts 2026 83GovernanceStrategic Report Accounts Other Information
Composition, Succession and Evaluation
Board evaluation
In line with best practice, the effectiveness of the Board, its Committees and individual Directors is assessed on an annual basis. At least every three years, the Board undertakes
anexternally facilitated evaluation. The FY26 evaluation was externally facilitated by Sam Allen Associates.
Board and Committee evaluation scope and process
The scope of the questionnaires
focused on the following areas.
– The Board: strategic oversight,
performance management, Board
agenda and meetings, talent and
culture, Board composition and
dynamics, interactions with senior
management, and reporting and
risk management.
– Committees: role and operations,
composition, leadership, and process
and procedures.
– The Chair: skillset and experience,
relationships and communication,
andthe management of meetings.
– Individuals: individual performance,
time commitment, relationships
andcontribution.
Progress on FY25 evaluation
As reported in last year’s Annual Report,
theFY25 Board and Committee effectiveness
review was internally facilitated, in line with
the Code. This review highlighted a high level
of diversity of thought and experience,
withno key action areas noted for either
theBoard or Committees.
FY26 Board and Committee effectiveness outcomes
The evaluation concluded that the Board and each Committee continue to operate effectively, ensuring strong governance. The Board has
astrong focus on the Group’s strategic priorities and risk, with the Chair ensuring meetings focus on the most critical and value-creating
topics. The Chair and the Chief Executive Officer have an open, trust-based relationship and there is regular dialogue between them.
The evaluation participants overall confirmed that the Board and Committees operate well, fostering a collaborative approach, with good
engagement and level of challenge. The Directors are well prepared for meetings. It was confirmed that the Committees have the required
skills, knowledge and experience, with the respective Chairs being effective.
Stage 1
Sam Allen Associates drafted the
evaluation questionnaire, drawing on
theprevious year’s review and input
fromthe Chair, Group Finance Director
and Company Secretary.
Stage 6
The final report was presented
totheBoard at its October meeting,
where thefindings were discussed
andactions agreed.
Stage 2
The draft questionnaire was reviewed
andapproved by the Chair.
Stage 5
Drawing on the questionnaire responses
and individual interviews, Sam Allen
Associates prepared a draft evaluation
report, which was discussed with
the Chair.
Stage 3
The questionnaire was issued to
theBoard, Group Finance Director
andCompany Secretary.
Stage 4
Sam Allen Associates collated and
reviewed the questionnaire responses and
conducted individual interviews with each
Board member, together with the Group
Finance Director and Company Secretary.
Bellway p.l.c. Annual Report and Accounts 2026 84GovernanceStrategic Report Accounts Other Information
Evaluation of individual Directors
The evaluation included specific assessments
of both the Chair and the Senior Independent
Director through thequestionnaire and
interview process. The feedback confirmed
that both continue to perform their respective
roles effectively and make a significant
contribution to the effectiveness of the Board.
The Chair was recognised for providing
strong leadership to the Board, fostering
constructive relationships between
Executive and Non-Executive Directors
andbringing considerable sector knowledge
and experience. Feedback highlighted the
value of the Chair’s support, challenge and
oversight, while identifying opportunities
toincrease engagement with Non-Executive
Directors between meetings.
The Senior Independent Director was
considered to fulfil the role effectively,
providing an independent sounding board
tothe Chair and making a positive
contribution to Board effectiveness.
Feedback highlighted an open communication
style and a constructive approach to
supporting both the Board and
individual Directors.
Some areas of further improvement were identified during this process, with the Board or relevant Committee identifying the following
action plans.
Key findings for the Board
Action point from FY26 review Planned action for FY27
More structured communications outside of Board meetings Diarise discussions between Board meetings and
structured business updates provided.
Increase the Board’s awareness of technology, AI and cyber risks Additional training will continue to be provided with
support from both internal and external experts.
Increase breadth of perspective and diversity of experience within senior leadership Development opportunities will be provided for
individuals identified through the senior succession
planning framework.
Increase the structure and rigour of succession planning Work has already started in this area and will be
builtupon.
Key findings for the Committees
Committee Action point from FY26 review Planned action for FY27
Audit Committee Preparedness for Provision 29 Implementation is well underway using a clear
framework and continues to be monitored at each
meeting by the Committee. The work remains
inprogress ahead of the reporting requirement,
including a dry run at 31 July 2026.
Nomination Committee Succession planning and internal talent pipeline Tailored development opportunities will be provided
for individuals identified through the senior
succession planning framework. Internal talent
pipelines are being strengthened through phase 2
ofCareer Pathways.
Remuneration Committee Considering the role of the Committee in wider
people and wellbeing matters
The Committee will consider its role and remit
forwider people matters during the year.
Bellway p.l.c. Annual Report and Accounts 2026 85GovernanceStrategic Report Accounts Other Information
Nomination Committee Report
The Committee meets at least twice a year
and operates under its own Terms of
Reference. These have been approved
bythe Board and are available at:
www.bellwayplc.co.uk/investor-centre/
governance/committees.
Committee activities
duringtheyear
The Committee oversaw the recruitment
process of the successors of Jill Caseberry,
Remuneration Committee Chair, and Ian
McHoul, Audit Committee Chair, who are
both due to retire from the Board in FY27
after nine years of service. Following a
rigorous external search process, Gill Barr
was appointed on 15 September 2025 and
Philip Harrison was appointed on
1 July 2026.
Gill was appointed as a member of theAudit,
Nomination, and Remuneration Committees
with effect from the same date. Gill became
Chair of the Remuneration Committee in
April 2026 when Jill Caseberry stepped
down from this role, before retiring from
theBoard later in September 2026.
Philip was appointed as a member
oftheAudit, Nomination and Remuneration
Committees with effect from the same date.
Philip will become Audit Committee Chair
ahead of Ian McHoul retiring from the Board
after this year’s Annual General Meeting
in November.
The Committee continued to review the
succession planning of both the Board
andthe Executive Committee to ensure
appointments and succession plans are
based on merit and objective criteria
andpromote diversity.
A focus of the Committee this year, was
tocontinue to develop the succession plan
forthose immediately below Board level and
Executive Committee with the support from
the Executive Management team and Group
HR Director. This included the launch of
theHenley Business School development
Key focus areas during FY26
– Oversaw the recruitment and
recommended the appointment of Gill
Barr, Non-Executive Director and Philip
Harrison, Non-Executive Director.
– Reviewed the composition, skills,
structure and size of the Board.
– Reviewed succession plans both at and
below Board level, including the Executive
Committee and Senior Leadership team,
with a particular focus on accelerating
development of underrepresented groups.
– Continued to focus on succession
planning both generally and with regard
tospecific roles, to ensure that we remain
well positioned for the future.
– Supported cultural and leadership
development by engaging with
high-potential talent and
continuingtostrengthen internal
development pathways.
– Received updates on the Group’s
approach to diversity, equality
and inclusion.
– Approved the process for the externally
facilitated Board evaluation.
Statement from the Chair
oftheNomination Committee
On behalf of the Board, I am pleased
topresent the Nomination Committee
Report for the year ended 31 July 2026.
The Nomination Committee plays a
fundamental role in ensuring Bellway
appoint suitably strong candidates to
theBoard. The Committee monitors the
balance of skills, experience, independence,
knowledge and diversity of the Board
anditsCommittees, with any changes
recommended to the Board for its review
and approval. The Committee is also
responsible for succession planning
andoverseeing the development of
adiverse pipeline.
“ We ensure
appointments and
succession plans
are based on merit,
objective criteria
and promote
diversity.”
John Tutte
Chair of the Nomination Committee
Membership and meeting attendance
Sarah Whitney Philip Harrison Ian McHoul Cecily Davis Gill Barr
In line with the Code, the Committee is comprised of independent Non-Executive
Directors. Asat 31 July 2026, the members were:
Director Date appointed to the Board
Number of meetings
attended during the year
John Tutte (Chair) 1 March 2022; appointed
Committee Chair on 1 April 2022 3/3
Jill Caseberry 1 October 2017 3/3
Ian McHoul 1 February 2018 3/3
Sarah Whitney 1 September 2022 3/3
Cecily Davis 1 May 2024 3/3
Gill Barr 15 September 2025 3/3
The Group HR Director and external advisers are invited to attend meetings when appropriate.
Director Date appointed to the Board
Number of meetings
attended during the year
Philip Harrison 1 July 2026 n/a
e
e. Philip Harrison was appointed to the Committee on 1 July 2026, after this year’s meetings were held.
Bellway p.l.c. Annual Report and Accounts 2026 86GovernanceStrategic Report Accounts Other Information
Board composition and succession
The below data shows the Board composition as at 12 October 2026.
Gender split on the Board
Male 6
Female 3
Independence
(excluding the Chair)
Executive
Director 3
Non-executive
Director 5
Tenure of Non-Executive Directors
(including the Chair)
0–3 years 3
4–6 years 2
7–9 years 1
Ethnicity
White British/
European/
Non-European
8
Black or
Black British 1
programme, which launched in January
2026, and has been specifically designed
tosupport individuals identified through
oursuccession planning framework as
having the potential to progress to Managing
Director level, reinforcing the direct link
between succession planning and targeted
investment in leadership development.
During the year, the Senior Leaders and
Middle Managers programmes continued to
be delivered across the business, supported
by an external provider and the Group HR
team. The programmes are designed to
enhance leadership capability, support
career development and help build a strong
pipeline of future talent.
This year has marked a significant step
forward in Bellway’s approach to succession
planning. Through the completion of
astructured internal assessment,
Chair-ledconversations and the launch of
the Henley Business School programme,
wehave moved from a foundation-setting
phase to active pipeline development.
We are confident that we have a robust
andcredible framework in place, one that
isboth disciplined in its structure and
responsive to the dynamic nature of
leadership succession.
Diversity and inclusion
We continued to work on improving diversity
and inclusion across the Group, taking into
account the various recommendations from
the Parker Reviews, the FCA Diversity and
Inclusion Policy Statement and the FTSE
Women Leader Review.
Succession planning for roles below Board
and Executive Committee level remains
akey focus, with diversity and inclusion
embedded in the process.
At 31 July 2026, female Board
representation stood at 40% but will
fallto37.5% following the changes to
theBoardcomposition set out above.
The Board remains committed to diversity
inthe broadest sense and across all levels
ofthebusiness, and gender diversity will
beanimportant consideration in future
Board recruitment.
We continue to look for the opportunities
torecruit and promote female and ethnically
diverse candidates, which helps drive
diversity within Bellway and provides
possible leaders of the future.
Key initiatives that support the work of the
Committee are carried out by the Group HR
function including:
– mandatory equality, diversity and
inclusion e-learning, which continues
tobeissued to employees. 85.2% of
employees completed this training within
three months of joining Bellway;
– external partnerships with organisations
including Leonard Cheshire Change 100
and Variety Interns to support disabled
and underrepresented talent;
– talent and succession planning training
forsenior leaders and line-managers,
focused on developing graduates and
higher apprentices; and
– targeted development programmes in
partnership with Regional Chairs and
Managing Directors, with a strong focus
on improving retention and career
pathways for diverse talent.
Further information on the Group’s efforts to
improve diversity can be found on page 67
Director election and re-election
In accordance with the Code, all eligible
Directors will stand for election or re-election
at the 2026 AGM. The Committee reviewed
the contribution and time commitment of
each Director and are satisfied that they
continue to bring independent judgment and
add value to the Board’s discussions and
decision-making process.
Bellway p.l.c. Annual Report and Accounts 2026 87GovernanceStrategic Report Accounts Other Information
Balance of skills, knowledge
andexperience
The Directors have wide-ranging experience
as senior business people, with in-depth
strength across all key disciplines including
strategic planning, organisational growth
and change, and corporate governance.
Committee evaluation
The Committee’s performance was
externally reviewed as part of the annual
Board evaluation. The results confirmed
thatthe Committee and its members have
performed their role effectively.
Opportunities were identified to:
– develop the Board’s succession
planning;and
– develop the internal talent pipeline.
In response we are working to develop a
more structured approach to succession
planning for the CEO, Executive Directors
and wider senior leadership. We are also
looking at ways to provide greater visibility
of development actions and progress for
potential internal successors, including
readiness and capability gaps.
I will continue to encourage full participation
and constructive contribution from all
members of the Committee.
FCA UK Listing Rule 6.6.6R(9) – diversity reporting
In compliance with FCA UK Listing Rule 6.6.6R(9) the Company reports the following
diversity information as at 31 July 2026:
FCA UK Listing
Ruletarget
Outcome at
31 July 2026
Explanation
at 31 July 2026
Outcome at
12 October
2026
Update at
12 October 2026
At least 40% of
Board Directors
arewomen
Target
Achieved
Following the
appointment
ofGill Barr and
Philip Harrison,
40% of the then
Board Directors
were women
Target
not Achieved
Following the
retirement of Jill
Caseberry from
the Board, 33%
ofcurrent Board
Directors
are women
At least one
seniorBoard
position
f
held
byawoman
Target
Achieved
Sarah Whitney
holds the
positionof Senior
Independent
Director
Target
Achieved
At least one senior
Board position
g
is
held by a woman
The FTSE Women
Leaders target has
been achieved
At least one
BoardDirector
froma minority
ethnic background
Target
Achieved
One Board
Director is from
aminority ethnic
background
Target
Achieved
One Board
Director from
aminority ethnic
background
The Parker
Review target
has been achieved
f. Chair, Chief Executive, Senior Independent Director or Chief Financial Officer.
Key focus areas for FY27
– Ensure that Board and senior
appointments reflect the skills, knowledge
and experience required to support the
Group’s long-term success.
– Continue to focus on succession planning
both generally and with regard to specific
roles, to ensure that we remain well
positioned for the future.
– Support cultural and leadership
development, by engaging with
high-potential talent and continuing
tostrengthen internal
development pathways.
– Monitor progress against diversity and
inclusion goals, including gender and
ethnic diversity in senior roles, ensuring
continued alignment with external best
practice frameworks.
– Review succession plans below the
Boardand Executive Committee,
withaparticular focus on accelerating
development of underrepresented groups.
Nomination Committee Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 88GovernanceStrategic Report Accounts Other Information
Director and employee profile
In accordance with the UK Listing Rules, the following tables show the gender and ethnicity split in the Group as at 31 July 2026.
Male No. Male % Female No. Female % Total No. Tota l %
Board of Directors 6 60.0 4 40.0 10 <1
Executive Committee and direct reports 48 79.0 13 21.0 61 2
Senior managers 112 74.2 39 25.8 151 6
Other employees 1,620 63.1 948 36.9 2,568 92
Total 1,786 64.0 1,004 36.0 2,790 100
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 to say
Board of Directors – 1 – – 9 – –
Executive Committee and direct reports 3 – 2 – 56 – –
Senior managers 2 – 3 – 146 – –
Other employees 64 68 35 6 2,375 – 20
Total 69 69 40 6 2,586 – 20
John Tutte
Nomination Committee Chair
12 October 2026
Bellway p.l.c. Annual Report and Accounts 2026 89GovernanceStrategic Report Accounts Other Information
Audit Committee Report
“ The Committee
supports the
Board in achieving
the objectives
of the corporate
governance
framework.”
Ian McHoul
Chair of the Audit Committee
Membership and meeting attendance
Sarah Whitney Philip Harrison Cecily Davis Gill Barr
The Committee comprises independent Non-Executive Directors, in line with
theUKCorporate Governance Code. As at 31 July 2026, the members were:
Director Date appointed to the Board
Number ofmeetings
attended during the year
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
g
1 May 2024 3/4
Gill Barr 15 September 2025 4/4
Philip Harrison
h
1 July 2026 1/1
The Chair of the Board, the Executive Directors, Group Finance Director and Company
Secretary, and Group Risk Director, as well as the external auditors, attend meetings by
invitation. The Group Financial Controller 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.
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.
The Terms of Reference were reviewed
during the year and were determined
toremain appropriate, aligned with best
practice and reflective of the Committee’s
responsibilities under both the Code
andother regulations.
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:
– UK Corporate Governance Code
(Provision 29) project – material controls
were defined and agreed during the year
and an assurance programme was
designed in preparation for the Board’s
declaration of effectiveness, which applies
for the financial year ending 31 July 2027.
A practice run of the assurance
programme was completed for the year
ended 31 July 2026, and no significant
findings were identified. The project will
continue up to the declaration date and
beyond to refine the assurance
programme and identify any control
improvements required. The Committee
will oversee theimplementation of this
programme andaddress any required
improvement actions.
Statement from the Chair
oftheAudit Committee
I am pleased to present the Audit Committee
Report for the year ended 31 July 2026.
This report provides an overview of how
theCommittee operates, 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 the finance,
risk and internal audit teams, along with
Ernst & Young LLP (EY), our external auditor,
throughout the year.
There were four meetings of the Committee
during the year and the attendance by
Committee members can be seen to the left.
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 and
non-financial reporting;
– the quality of narrative reporting;
– the quality and effectiveness of internal
controls and risk management framework;
– procedures relating to the prevention
anddetection of fraud, bribery and
other compliance;
– risk and internal audit; and
– external audit.
g. Due to illness, Cecily Davis could not attend the July Audit Committee meeting.
h. Philip Harrison joined the Board and Committee on 1 July 2026.
Bellway p.l.c. Annual Report and Accounts 2026 90GovernanceStrategic Report Accounts Other Information
Committee governance
andcompetence
The Committee currently comprises five
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.
The Board considers that I have recent
andrelevant financial experience as required
by the Code.
Further information on the experience and
knowledge of the Committee members is
included in the Directors’ biographies on
pages 62 to 65.
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.
Representatives of EY attended all the
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 Chief Financial
Officer, 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.
– Principal risk reporting – the Group’s
principal risk reporting in the Annual
Report and Accounts 2026 has been
updated to ensure alignment with current
best practices and evolving stakeholder
expectations. The presentation of the
Group’s principal risks has been updated,
including descriptions, agreed appetite,
residual ratings and movement during
theyear. This was reviewed and approved
by the Committee.
– Sustainability reporting – the climate-
related and sustainability disclosures in
the 2026 Annual Report and Accounts
have been reviewed by management and
an update presented to the Committee.
This included consideration of evolving
reporting requirements, including IFRS S1
and IFRS S2, and progress against the
Group’s sustainability reporting roadmap.
– New Chair of the Audit Committee – I will
be stepping down as a Non-Executive
Director on 26 November, and Philip
Harrison has been identified as successor
for Chair of the Audit Committee.
The Committee has focused on
onboarding the new Chair of the
Audit Committee.
– EY audit partner transition – Simon O’Neill
led the audit for the first time during the
year ended 31 July 2026. The Committee
worked with EY and management to
ensure an effective audit process
following the transition to the new
engagement partner.
In addition, the Committee continued to
support the finance leadership team and
monitored the effectiveness of financial
reporting, governance and control
processes during the year.
Anticipated key areas of focus
forthe year ahead
– UK Corporate Governance Code
(Provision 29) project – we will monitor
progress made by management against
the ongoing material controls assurance
programme and any remediation actions
identified, supporting the Board
inpreparing for its declaration of
effectiveness for the financial year ending
31 July 2027. This will include refining
theassurance programme for assessing
material control operation, identifying
andremediating areas for improvement,
developing regular effectiveness reporting
for the Audit Committee, and preparing
the attestation for inclusion in next year’s
Annual Report and Accounts.
– Business Continuity and Cybersecurity
– we will review the Group’s Business
Continuity and Cybersecurity controls
and processes. An annual assurance
framework for business continuity is being
developed which includes simulation-
based exercises that cover both IT and
non-IT incidents. Relevant staff will be
trained and supported to fully understand
their responsibilities and clear metrics will
be developed to articulate who is involved
and when.
– Sustainability reporting – we will review
the Group’s sustainability disclosures in
the Annual Report and Accounts 2027
andensure the Group is prepared for
compliance with IFRS S1 and IFRS S2,
when adopted in the year ending
31 July 2028.
– Audit Committee Chair succession – Philip
Harrison has been appointed as successor
for Chair of the Audit Committee, and the
Committee will support the new Chair to
ensure a smooth transition.
Committee evaluation
andeffectiveness
During the year, the Committee assessed
both its own performance 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 that it provides a robust and
independent oversight over all of its
principal activities. The Committee has
anappropriate and complementary set
ofskills and experience that enables it to
deliver theaforementioned activities.
Audit quality review
During the year, the Committee was
informed of the outcome of the FRC’s Audit
Quality Assessment of our external auditor’s
audit of the Annual Report and Accounts for
the year ended 31 July 2025. The Committee
was pleased to note that the FRC identified
no key or other findings arising from
itsinspection. Further details of the
assessment are set out on page 103.
Minimum standard
The FRC’s ‘Audit Committees and the External
Audit: Minimum Standard’ (the ‘Minimum
Standard’) was published in May 2023.
The Audit Committee considers that it has
met the Minimum Standard.
Committee activities during
theyear and post year end
The activities undertaken at the October
2026 meeting concluded the Committee’s
activities in relation to the Group’s financial
reporting for the year ended 31 July 2026.
The main activities performed by the
Committee at these meetings are described
on pages 92 to 95.
Bellway p.l.c. Annual Report and Accounts 2026 91GovernanceStrategic Report Accounts Other Information
Financial and narrative reporting
Post year-end
meeting
Activity/review
October
2025
January
2026
March
2026
July
2026
October
2026
Reviewed the final draft of the Annual Report and Accounts, together with the final audit report
produced by EY. The Committee recommended the Annual Report and Accounts to the Board
for approval.
Reviewed the final draft of the Interim Announcement.
Received a paper on significant judgemental areas prepared by management including notable
one-off items, both those separately disclosed on the face of the income statement or
otherwise, that affected profit during the period.
Considered and challenged a paper produced by management setting out the accounting
approach used for the SRT and associated review provision, and the structural defects
provision and related net legacy building safety expense.
Considered and challenged management on the use of APMs and whether they were
appropriate or whether GAAP measures would be more relevant.
Approved a change to the calculation of the APMs for the year ended 31 July 2025; Return
oncapital employed (RoCE), and underlying return on capital employed (underlying RoCE).
Approved the rationalisation of APMs to ensure they remain relevant to the users of the accounts.
Reviewed and approved the appropriateness of the treatment and disclosure of the Class
Action suit filed against seven housebuilders, including Bellway.
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.
Reviewed and approved the appropriateness of disclosures in relation to the
CMA Market Investigation.
Concluded that the Annual Report and Accounts presented a fair, balanced and understandable
assessment of the Group’s position and prospects.
Reviewed and approved the draft viability statement to appear in the Annual Report
and Accounts.
Reviewed and approved a response to a request for information letter from the FRC in relation
tothe 31 July 2025 Annual Report and Accounts.
Reviewed and approved a clarification to the accounting policy for Inventories (see note 7)
and Revenue (see note 1).
Audit Committee Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 92GovernanceStrategic Report Accounts Other Information
Internal control and risk management framework
Post year-end
meeting
Activity/review
October
2025
January
2026
March
2026
July
2026
October
2026
Reviewed compliance with Group policies in the period.
Reviewed a paper setting out the effectiveness of the internal control and risk management
framework during the year.
Received an update on progress with the UK Corporate Governance Code
(Provision29)project.
Reviewed and approved the Slavery and Human Trafficking Statement.
Reviewed and approved the Group’s Whistleblowing Policy and Procedure.
Reviewed and approved the Group’s Data Protection Policy.
Reviewed and approved an updated Group Approvals Matrix and Delegation of Authorities.
Received an update on business continuity and incident response (including cyber security).
Bellway p.l.c. Annual Report and Accounts 2026 93GovernanceStrategic Report Accounts Other Information
Risk and internal audit
Post year-end
meeting
Activity/review
October
2025
January
2026
March
2026
July
2026
October
2026
Reviewed a risk management update.
Reviewed an 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 audit function.
Held a one-to-one meeting with the Group Risk Director.
Reviewed and approved the Risk Management Policy.
Reviewed and approved the Internal Audit Charter and 2026 Internal Audit Plan.
Received an update from the Group Risk Director, Group IT Director and external specialist
onIT disaster recovery and cyber risk.
Reviewed the fraud risk register.
Prevention and detection of fraud and bribery
Post year-end
meeting
Activity/review
October
2025
January
2026
March
2026
July
2026
October
2026
Reviewed a paper produced by management setting out the main controls for preventing
and detecting fraud.
Reviewed the Group’s policies and procedures in relation to Anti-Fraud, Bribery and Corruption.
Reviewed the Group’s policies and procedures in relation to Anti-Money Laundering.
Reviewed and approved the Group’s Anti-Slavery and Human Rights Policy.
Reviewed and approved the Group’s Failure to Prevent Facilitation of Tax Evasion Policy
Audit Committee Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 94GovernanceStrategic Report Accounts Other Information
External audit
Post year-end
meeting
Activity/review
October
2025
January
2026
March
2026
July
2026
October
2026
Assessed the performance of the external auditor, including consideration of the FRC’s
AnnualReview of Audit Quality results.
Approved EY’s audit plan, including the proposed Group, subsidiary, and divisional materiality
for the FY26 audit.
Reviewed the EY engagement letter and approved the audit fee for FY26.
Approved the Independent Auditor Policy.
Approved the Recruitment of Auditor Staff Policy.
Held a private meeting with EY.
Received a report on the outcomes of the FRC’s Audit Quality Review of EY’s 2025 audit
oftheCompany and noted the findings.
Governance
Post year-end
meeting
Activity/review
October
2025
January
2026
March
2026
July
2026
October
2026
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.
Bellway p.l.c. Annual Report and Accounts 2026 95GovernanceStrategic Report Accounts Other Information
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 Matter considered
Information provided
by management External auditor
Committee assessment
and conclusion
Revenue recognition Revenue of £3,162.2m 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legally transferred to the
customer; or ii) when the home
isbuild 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, amongst other
procedures, they had:
– reviewed the appropriateness of
the Group’s revenue recognition
accounting policy;
– used data analytics to identify
anyanomalies, which
were investigated;
– reviewed work performed by
Group Finance in relation to
salescut-off;
– agreed a sample of legal completions
to source documentation;
– reviewed manual journals
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
Cost of sales (before net legacy
building safety expense) of
£2,664.4m has been recognised.
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, amongst other
procedures, they had:
– reviewed the appropriateness of
the Group’s margin recognition
accounting policy;
– attended valuation meetings; and
– performed Group-wide analytical
reviews; challenged assumptions
in relation to forecast selling
prices and costs;
– assessed the historical accuracy
of management’s forecasting; and
– considered the outcome of
completed developments and post
year-end margin movements when
evaluating the reasonableness of
margins recognised.
The Committee understood the
Group’s margin recognition
accounting 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 margin
recognition policy is appropriate
and has been properly applied in
these financial statements.
Audit Committee Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 96GovernanceStrategic Report Accounts Other Information
Key financial matters Matter considered
Information provided
by management External auditor
Committee assessment
and conclusion
Carrying amount of land and
work in progress
Land and work in progress are
themost significant assets on the
Group’s balance sheet and at 31 July
2026 had a book value of £4,413.1m.
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
reassessed 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 that, amongst other
procedures, 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 enquiries with
management.
This included the procedures
identified in relation to profit
recognition and a review of a risk
based sample of the latest site/
phase valuation for 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 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
financial statements.
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 that, amongst other
procedures, 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
57 to 58.
Bellway p.l.c. Annual Report and Accounts 2026 97GovernanceStrategic Report Accounts Other Information
Key financial matters Matter considered
Information provided
by management External auditor
Committee assessment
and conclusion
Legacy building safety
improvement provision
Legacy building safety
improvementprovision totalling
£519.9m was recognised in the
balance sheet as at 31 July 2026.
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.
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.
SRT and associated review
The external auditor explained
tothe Committee that, amongst
other procedures, 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.
Structural defects
The external auditor explained
tothe Committee that, amongst
other procedures, 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.
Overall
The Committee challenged
management’s cost and inflation
assumptions, and, after considering
a sensitivity paper, concluded that
management’s proposed
assumptions are appropriate.
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.
Audit Committee Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 98GovernanceStrategic Report Accounts Other Information
Key financial matters Matter considered
Information provided
by management External auditor
Committee assessment
and conclusion
Net legacy building safety
and other exceptional items
expense disclosure
A pre-tax net adjusting items
expense of £35.5m has been
recognised in the year. This has two
component parts (i) net legacy
building safety expense of £35.2m;
and (ii) CMA market investigation
expense of £0.3m.
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 and reasons why the net
legacy building safety expense and
CMA market investigation expense
should be disclosed separately.
The paper ensured, where relevant,
the principles agreed in the previous
year had been consistently applied.
The external auditor explained to
the Committee that, amongst other
procedures, they had:
– reviewed the disclosures in
relation to the legacy building
safety improvement and other
exceptional items expense.
The Committee provided careful
consideration to the judgements
made in the presentation and
disclosure of the net legacy building
safety expense and CMA market
investigation expense, ensuring the
Annual Report and Accounts as a
whole provide a balanced view,
including the presentation of GAAP
measures and APMs.
Following enquiries with management
and the external auditor, the
Committee concluded that the net
legacy building safety expense and
CMA market investigation expense
are appropriately presented 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.
Financial Reporting Council
(FRC) letter
During the year, the Committee reviewed a
request for information letter received from the
FRC’s Corporate Reporting Review (CRR) team
following their routine review of the Company’s
Annual Report and Accounts for the year
ended 31 July 2025. The FRC requested
additional information regarding the accounting
of financial contributions made to the planning
process, as well as a small number of
observations for our attention. The Committee
reviewed and approved the formal response to
the FRC. The Committee welcomed the review
by the FRC and whilst the FRC review has
concluded and did not require any changes
tothe accounts, to further enhance the
transparency of our reporting the Committee
approved a clarification in the Inventory
accounting policy in this year’s accounts.
This change provides clarity to the users of the
accounts that financial contributions made to
the planning process are included within the
cost of inventories, set out on page 157.
The Committee notes that the FRC review is
based on the Annual Report and Accounts and
does not benefit from detailed knowledge of
the business or underlying transactions
entered into and therefore provides no
assurance that the Annual Report and
Accounts are correct in all material respects,
asthe FRC’s role is to consider compliance
withreporting requirements. The FRC accepts
no liability for reliance on it by the Company
orany third party, including but not limited
toinvestors and shareholders.
Other financial reporting matters
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 2026 Annual
Report and Accounts. The Committee
concluded that climate change and the
associated risks are appropriately included
and disclosed in the financial statements.
Although it is not considered a key audit
matter, EY utilise some of their audit effort
to consider the impact of potential climate-
related risks on the Group’s Annual Report
and Accounts, both quantitatively 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.
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.
The Committee considered a paper prepared
by management that assessed the Group’s
resilience under various adverse scenarios
arising from its emerging and principal risks
and uncertainties. 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 are appropriate. This was then
recommended to the Board for approval.
Bellway p.l.c. Annual Report and Accounts 2026 99GovernanceStrategic Report Accounts Other Information
Quality of narrative reporting
2026 Annual Report and Accounts: fair, balanced and understandable
The Group Risk Director provided a paper to the Committee to assist them in concluding whether the 2026 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 2026 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 Group, 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 judgments 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 provide a balance
between statutory and adjusted performance measures.
The KPIs and APMs have been reviewed toensure they
remain relevant to the usersof the accounts and certain
APMs have been removed where they are no longer used
bythe Directors when reviewing the performance of the
Group. Other APMs remain consistent, there has been
nochanges in 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 2026 Annual Report and Accounts:
– when taken as a whole, are fair, balanced and understandable; and
– provide the necessary information for shareholders to assess the Group’s position, performance, business model and strategy.
Audit Committee Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 100GovernanceStrategic Report Accounts Other Information
Quality and effectiveness ofinternal controls and risk management framework
The Committee is responsible for reviewing and assessing the Group’s internal controls and risk management framework 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 and impact, and reviewing the effectiveness of the control environment to mitigate the risks.
Risk is considered by the Board with a full review of the strategic risks and risk appetite 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 53 to 56, 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.
Key areas of control
Area
Control description
Key risk identification The Board has agreed a list of key risks affecting the Group which are reviewed throughout the year and has considered the extent to which
themeasures taken by the Group mitigate those risks.
Land acquisition The acquisition of land and land interests is initiated by divisional management and reviewed by the appropriate Regional Chair prior to submission
toGroup for approval. All land acquisitions must achieve minimum financial acquisition criteria and are subject to approval by the Executive Directors
and in certain circumstances, by the Board.
Annual budget and
monthly forecasting
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 at a regional level by the Regional Chairs
and Regional Finance Directors and at a Group level by functional heads. Summaries are also provided tothe Executive Directors and the Board.
Monthly divisional
board meetings
Monthly divisional board meetings are held to review divisional performance, which are attended by the Regional Chairs and Regional Finance
Directors. The Executive Directors attend divisional board meetings on a rolling basis, and this is supplemented with Non-Executive Director visits
to divisions.
Site valuations 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 and regional management team and Group.
Executive Committee The Executive Committee comprises 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.
Health and safety visits Regular visits to sites by in-house health and safety teams and external consultants to monitor health and safety standards and performance.
Central treasury function A central treasury function operates at Group level, ensuring the appropriate financing is obtained for the Group as a whole.
Centralised approach 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.
Bellway p.l.c. Annual Report and Accounts 2026 101GovernanceStrategic Report Accounts Other Information
Throughout the year, the Committee received reports from the Group Risk and Audit team on the following areas of focus:
Review
Focus and outcomes
Divisional compliance
19 reviews
These reviews assessed whether the design and operation of finance, commercial, construction and
technical 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.
Follow up of actions from
previous audit reports
(half-year and year-end)
Testing of progress made with respect to previously raised actions in audit reports was performed
atthe half-year and year-end, demonstrating timely and appropriate responses from management.
Cyber penetration testing
Four reviews
Various third parties have 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 reviews have identified some areas
where the Group’s already robust IT control environment could be further improved. Any findings
identified were addressed before the subsequent review.
Customer complaints This review assessed compliance with the Group’s customer complaints procedure and the
effectiveness of complaint management processes across the Group. The report provided assurance
that an appropriate process is in place, while highlighting opportunities to enhance consistency,
documentation standards and training through a number of recommendations.
Land and planning This review assessed the Group’s land and planning appraisal process, with particular focus on the
new land viability system. The report identified opportunities to improve standardisation and data
quality via enhanced controls.
Customer care records This review assessed customer care inspection records and related management reporting.
The review identified opportunities to improve data quality, inspection record completion and
reporting controls.
Modern slavery –
subcontractors
15 site visits
This work included an audit of trades at 15 sites. The work provided positive assurance that the Group
is fulfilling its obligations in relation to modern slavery and raised minor recommendations, which have
further enhanced third-party onboarding and induction processes.
Future Homes Standard This review assessed the Group’s readiness for the Future Homes Standard and the implementation
ofupdated design specifications. The review identified scope for clearer communication and guidance
to support consistent adoption of the new requirements across divisions.
Bellway Home
Space operations
This review assessed the operational controls supporting Bellway Home Space, including production
planning, systems governance, supplier management and health and safety arrangements. The review
identified minor opportunities to strengthen processes and governance to support resilience,
scalability and continued growth.
Where any control recommendations are made by the external auditors, these are considered, and where relevant are implemented to
further strengthen the control environment.
Procedures relating to
theprevention and detection
of fraud and bribery
andothercompliance
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Group Finance Director and Company
Secretary, Group Risk Director, Group HR
Director 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
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.
During the year, the Committee approved
the Anti-Bribery and Corruption Policy.
Prevention and detection of fraud
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.
Audit Committee Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 102GovernanceStrategic Report Accounts Other Information
Risk and internal audit
The Group risk and audit function performs
internal audit reviews. The Group Risk
Director has a direct reporting line into
boththe Chief Financial Officer 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 judgments 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
Annual Review of Audit Quality 2025
results that were published by the FRC
on15 July 2025, 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 for the year
ended 31 July 2025, Mark Morritt, and
theincoming engagement partner for the
year ended 31 July 2026, Simon O’Neill;
– considering EY’s independence,
objectivity, and professional scepticism;
– reviewing the performance of EY against
their audit strategy for FY25, the most
recent completed audit cycle, and their
interaction with the Committee during
theprocess; and
– 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 reappointed as auditor of the Group.
Auditor rotation
The Committee acknowledges the
provisions contained in the Code. In respect
of audit tendering in accordance with these
requirements, Bellway will be required
totender the external audit no later than
forthe 2031 financial year end.
Audit quality review
The Group’s FY25 audit was selected by the
FRC for Audit Quality inspection, with the
assessment focusing primarily on: revenue
recognition; cost of sales recognition and
valuation of work-in-progress and land on
sites under development; valuation of land
on sites not yet under development; and,
measurement of the legacy building safety
improvement provision. The Committee
received and reviewed the final report from
the Audit Quality Review team and were
pleased to note the report contained no key
or other findings. The Committee discussed
the outcome of the inspection with the
external auditor.
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 engagement with the external auditor
needs to be approved, in advance, by the
Chair of the Audit Committee, and
retrospectively by the Audit Committee.
The Group’s external auditor is only engaged
to provide statutory audit services
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 0:1.
Following the conclusion of the audit for
theyear ended 31 July 2025, Mark Morritt
completed five years out of the normal
maximum of five years as EY engagement
partner. A new engagement partner,
SimonO’Neill, led the audit for the year
ended 31 July 2026. The Committee worked
alongside EY to ensure processes were
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 which 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.
Compliance with the Competition and
Markets Authority Order
The Company confirms that, during the
period under review, it has complied with the
provisions of The Statutory Audit Services
for Large Companies Market Investigation
(Mandatory Use of Competitive Tender
Processes and Audit Committee
Responsibilities) Order 2014.
Closing statement
After close to nine years on the Board,
thiswill be my final report as Chair of the
Committee. I look forward to attending the
AGM and, as always, to meeting shareholders
and responding to any questions they may
have on the Committee’s work. As previously
announced, I will be retiring from the Board
inNovember, when Philip Harrison will
assume the role of chair of the Committee.
Philip joined the Board in July and has been
an active member of the Committee since his
appointment, which has allowed for a natural
and effective handover of responsibilities.
He brings considerable leadership experience
and financial expertise in the listed company
environment, and I leave the role confident
that the Committee is in excellent hands.
I would like to close by thanking my fellow
Committee members, the external and
internal auditors, and management for
theirsupport and engagement throughout
my tenure.
Ian McHoul
Chair of the Audit Committee
12 October 2026
Bellway p.l.c. Annual Report and Accounts 2026 103GovernanceStrategic Report Accounts Other Information
Remuneration Report
“ The Committee
continues to operate
a remuneration
structure which
aligns the Company’s
business strategy
and shareholder
interests.”
Gill Barr
Remuneration Committee
Membership and attendance
Despite continued affordability pressures,
economic uncertainty and planning delays,
management delivered double-digit growth
in volume output and housing revenue, while
maintaining strong operation discipline and
significantly improving adjusted operating
cash and capital efficiency.
The Committee recognises the actions
taken by management to navigate these
market headwinds while continuing to invest
selectively in land to support future growth,
strengthen the balance sheet and enhance
shareholder returns. The Group’s high-
quality land bank, strong financial position
and operational capability provide a solid
platform for sustainable volume growth
andimproving underlying RoE.
2025/26 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 performance-based LTIP,
which it considers closely aligns management
interests with those of stakeholders.
The 2025/26 annual bonus was subject
tounderlying operating profit, adjusted
cashflow, land delivery and Responsible
Business measures. The Committee is
conscious that the housebuilding sector
ishighly cyclical, and in recognition sets
bonus targets by reference to a combination
of market consensus forecasts, the
stretching goals set in the annual business
plan and internal forecasts for the year.
The Committee has set stretching
bonustargets for 2026/27 that reflect
theGroup’sstrategic priorities, current
market conditions and continued focus on
profitability, adjusted operating cash
generation, capital efficiency and long-term
value creation.
Based on performance across the year,
thecommittee has awarded the Executive
Directors a bonus payment of 113.0% of basic
salary (FY25: 146.32%).
Key focus areas for FY26
– Review and determine the remuneration
packages for the Executive Directors,
andthe Executive Committee members.
– Review of the long-term incentive awards
vesting levels for the 2025/26 year for the
Executive Directors and senior management.
– Approve the 2024/25 financial year bonus
payments for the Executive Directors and
senior management.
– Approve the 2024/25 Remuneration Report.
– Make awards under the long-term
incentive plan (LTIP).
– Engage with employees on Executive
remuneration through the Employee
Listening Groups.
Annual statement
Dear shareholder
I am pleased to present the Report of the
Remuneration Committee (the Committee),
my first as Chair of the Committee.
This Report is divided into three sections:
my statement, our annual report on
remuneration for the 2025/26 financial
yearand how it will operate in FY26/27,
anda summary of the Directors’
Remuneration Policy (the Policy or the
Remuneration Policy) which was approved
by the shareholders at the 2025 AGM.
The Committee continues to operate
aremuneration structure which aligns
theCompany’s business strategy
andshareholder interests.
Performance in 2025/26
The Group has delivered a robust
performance in FY26 against a
challenging backdrop.
The Committee is comprised of independent Non-Executive Directors, in line with the
UK Corporate Governance Code. As at 31 July 2026, the members were:
Director Date appointed to the Committee
No. of meetings
attended during
theyear
Achievement
(%of maximum)
Gill Barr (Chair) 15 September 2025 (appointed as
Committee Chair on 1 April 2026)
6/6 100.0%
John Tutte 1 March 2022 6/6 100.0%
Ian McHoul 1 February 2018 6/6 100.0%
Sarah Whitney 1 September 2022 6/6 100.0%
Cecily Davis
i
1 May 2024 5/6 83.0%
Jill Caseberry 1 October 2017; Committee Chair
from 13 December 2017 to 31 March
2026; resigned 30 September 2026
6/6 100.0%
Philip Harrison
j
1 July 2026 1/1 100.0%
i. Due to illness, Cecily Davis could not attend
theJuly Committee meeting.
j. Philip Harrison joined the Board and Committee
on 1 July 2026.
John Tutte Sarah Whitney Ian McHoul Cecily Davis Philip Harrison
Bellway p.l.c. Annual Report and Accounts 2026 104GovernanceStrategic Report Accounts Other Information
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 2025/26, 25.0% of the
bonus will be deferred into shares and held
for three years. As a result, 28.25% of salary
will be deferred (FY25: 36.6%).
The 2023/24 LTIP awards are eligible
tovestbased on performance over
thethreefinancial years to 31 July 2026.
Performance was based on relative
TotalShareholder Return (TSR) versus
abespoke peer group of housebuilders
andrelative TSR versus the FTSE 350
(excluding financial services and investment
trusts), underlying return on adjusted capital
employed, underlying operating margin,
strategic land planning and ESG targets.
Based on performance over the period,
65.0% of the award will vest. The Committee
believes that this outcome is appropriate as
it is reflective of the business performance
delivered, 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Policy operated as intended.
Directors’ Remuneration Policy
implementation during 2026/27
Following the 2025 AGM shareholder
approval, the new policy was implemented
during the year providing a greater focus on
the efficiency ofthe Group’s balance sheet,
and pre-tax return onequity, by aiming to
reduce the capital employed in the business,
generate higher adjusted cash and deliver
ahigher pre-tax return on equity, all aimed
at improving investor returns.
The salaries and benefits of our Executive
Directors are under constant review to
ensure they are in line with the market and
take into account shareholder feedback.
There will be a 3% increase to the CEO’s
salary in 2026/27 which is in line with
thelevel of the average increase to the
workforce in general. Recognising their
development in role since appointment
inDecember 2024 and August 2024 of the
CFO and CCO respectively, their salaries
willbe increased. The CFO’s increase will
be5% and the CCO’s increase will be 6%.
The higher increase for the CCO reflects the
additional responsibilities he has assumed
during the year. The salaries of both of these
Directors will still be below the mid-market
level following their increases.
All other benefits remain unchanged.
The Committee has reviewed the suitability
of each of the Bonus measures for the
Executive Directors’ annual bonus plan
and,to reflect our strategy of generating
significantly higher adjusted operating cash
from operations, the weighting on adjusted
operating cash flow has been increased to
equal that for underlying operating profit.
This change increases the weighting on
financial measures to nearly three quarters
this year from two thirds. We have also made
some less material changes to the non-
financial measures we will be using including
reducing the weighting to just over a quarter.
We have also made some less material
changes to the non-financial measures we
will be using. See page 115 for further details.
As with the bonus measures, the
performance measures for the LTIP grants
have remained clear and simple and are
closely linked to the targets that
demonstrate delivery against the wider
business objectives.
Annual grants are 200% of salary for the
Executive Directors.
The performance metrics for grants
tobemade in the year ahead are:
– Underlying pre-tax return on equity
(50%weighting) with a range of 7.5%
to11%for FY29.
– Cumulative underlying profit after
taxation(25% weighting) with a
rangeof£450 million to £575 million
forathree-year period; and
– TSR (25% weighting) with a range of
Median to Upper Quartile against the
Housebuilding sector.
Whilst these outcomes do not assume
significant volume or profit growth, they
require the delivery of a resilient financial
performance, strong cash generation and
sustained returns to shareholders against
ademanding market backdrop.
These targets achieve a balance between
stretching management to deliver
moreforshareholders and providing an
opportunity for partial vesting if the housing
market recovery is delayed. The Committee
will retain the normal flexibility to make
adjustments in the event of mergers and
acquisitions, exceptional circumstances
andwindfall gains to ensure that the
formulaic outcomes are reflective
ofoverall performance.
Committee evaluation
The Committee’s performance was
externally reviewed as part of the annual
Board evaluation. The results confirmed
thatthe Committee and its members have
performed their role effectively.
Opportunities were identified to:
– improve the time available to Committee
members to review proposed
changes;and
– clarify the scope of the external
adviser’srole.
I am working with the other Committee
members to address both of these areas.
Going forward, we will also consider whether
the Committee’s remit should extend to
selected wellbeing matters as part of a more
holistic approach to attraction and retention.
Other considerations
during the year
Wider workforce engagement
We continued to engage with our employees
through the annual Employee Engagement
Survey, and through national and regional
employee listening groups. During FY25,
wesuccessfully launched the National
Employee Listening Group, chaired by
Cecily Davis, theNon-Executive Director
forWorkforce Engagement.
The National Employee Listening Group
continued to develop positively, and the
main Board remained fully appraised of
listening group outcomes with
regular updates.
Board changes
I joined Bellway on 15 September 2025,
asanIndependent Non-Executive Director,
and am a member of the Audit, Nomination
and Remuneration Committees, succeeding
Jill Caseberry as Chair of the Remuneration
Committee in April 2026. The time I spent
onthe Committee, before taking over as
itsChair, has been very helpful in gaining
anunderstanding of the history and context
ofremuneration at Bellway.
Concluding remarks
The Committee continues to monitor the
industry and the FTSE 250 to ensure the
remuneration practices remain in line with
best practice and any changes to the
corporate governance frameworks.
Gill Barr
Chair of the Remuneration Committee
12 October 2026
Bellway p.l.c. Annual Report and Accounts 2026 105GovernanceStrategic Report Accounts Other Information
Remuneration at a glance
How remuneration links to our strategy
(See pages 6 to 7 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 Partially achieved
Focus on capital employed Annual bonus and vesting LTIP Underlying return on adjusted capital employed and adjusted operating cash Partially achieved
Land delivery Annual bonus Outlet openings and DPP in BRICs Partially achieved
ESG Annual bonus and vesting LTIP Retain 5-star
5
homebuilder status, results of Employee Engagement Survey, customer
satisfaction and carbon reduction
Achieved
Value creation through capital
anddividend growth
Ves ting LTIP Relative TSR against two comparator groups Partially 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 108
The 2025/26 bonus was based on financial and strategic targets.
Strategic objective
Weighting
(% of
maximum)
Achievement
(% of
maximum)
Underlying operating profit 53.4% 61.9%
Adjusted operating cash 13.3% 88.0%
Land delivery 20.0% 86.0%
Responsible Business measures 13.3% 100.0%
Total 100.0% 75.3%
Remuneration Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 106GovernanceStrategic Report Accounts Other Information
LTIP outcomes – see page 110
The PSP awards granted in 2023/24 were based on the performance conditions set out below.
Strategic objective
Weighting
(% of
maximum)
Achievement (%
of maximum)
Relative TSR vs housebuilders 25.0% 100.0%
vs FTSE 350 (excl. Financial services and investment trust) 25.0% 0.0%
Margin Protection Underlying return on adjusted capital employed in FY26 10.0% 0.0%
Strategic land in the DPP land bank in FY26 10.0% 100.0%
Underlying operating margin 10.0% 100.0%
Sustainability Timber house construction 10.0% 100.0%
Customer satisfaction score 10.0% 100.0%
100.0% 65.0%
Annual Report on Remuneration
Committee membership and activity
The Committee met six times during the year and attendances are set out in the table below.
Director Date appointed to the Committee
Number of
meetings
attended during
theyear
Achievement (%
of maximum)
Gill Barr (Chair) 15 September 2025 (appointed as Committee Chair on 1 April 2026) 6/6 100.0%
John Tutte 1 March 2022 6/6 100.0%
Ian McHoul 1 February 2018 6/6 100.0%
Sarah Whitney 1 September 2022 6/6 100.0%
Cecily Davis 1 May 2024 5/6* 83.0%
Jill Caseberry 1 October 2017 (appointed as Committee Chair on 13 December 2017, resigned 30 September 2026) 6/6 100.0%
Philip Harrison 1 July 2026 1/1** 100.0%
* Cecily Davis attendance record reflects one absence during the year due to illness.
** Philip Harrison was appointed on 1 July 2026, so only attended the July Remuneration Committee meeting.
The Committee is comprised of independent Non-Executive Directors, in line with the UK Corporate Governance Code.
The Chair of the Board, Executive Directors, Group Finance Director and Company Secretary, Group HR Director and Deputy HR Director attend meetings by invitation. Furthermore,
theGroup Health & Safety and Environment Director attended parts of certain meetings. The Committee is supported by the Deputy Group Company Secretary who acts asSecretary
tothe Committee.
The operation of the Committee is conducted by reference to its Terms of Reference, which has been prepared to comply with relevant statutory, regulatory and corporate governance
requirements, and best practice, and is available at: www.bellwayplc.co.uk/investor-centre/governance/committees.
Bellway p.l.c. Annual Report and Accounts 2026 107GovernanceStrategic Report Accounts Other Information
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 Committee during FY26 was £92,614 (2025: £134,283), which was charged on a time and materials basis. The Committee also benefited
from advice received from the Chief Financial Officer, the Group HR Director and Deputy HR Director, and Group Finance Director and Company Secretary, on issues other than those
relating to their 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.
Implementation of Remuneration Policy in 2025/26
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 2026
For 2025/26, Jason Honeyman received a salary of £823,808, Shane Doherty received a salary of £494,400 and Simon Scougall received a salary of £457,320.
Annual bonus for the year ended 31 July 2026
The annual bonus is payable in October 2026 for performance during the year ended 31 July 2026. The performance targets for the 2025/26 bonus comprised underlying operating profit,
operating cash flow, and strategic targets.
The actual bonus payment against objectives was determined on the following basis:
Objective
Weighting
(% of salary)
Threshold
(25% pays
out)
Maximum
value (100%
pays out) Actual
Payment
(% of
maximum)
Payment
(% of salary)
Underlying operating profit
1,2
80% £295.0m £347.0m £320.6m 61.9% 49.5%
Adjusted operating cash flow
1
20% £700.0m £900.0m £868.6m 88.0% 17.6%
Land delivery 30% See below 86.0% 25.8%
Responsible Business 20% See below 100.0% 20.0%
Total 150% 75.3% 113.0%
Remuneration Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 108GovernanceStrategic Report Accounts Other Information
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 30% This is in two parts:
– Sales outlet openings to ensure that we have the ability
tomeet our sales ambitions and have secured sufficient
detailed planning consents. A threshold payment of 7.5%
ofsalary is triggered for 45 outlet openings up to a maximum
of 15% of salary for 55 openings.
– Availability of plots
(a)
with DPP (available for completion
inthefollowing financial year) to ensure our sales ambitions
are not frustrated by land shortages in future years.
Achieved: 59 outlets were opened in 2025/26,
exceeding the maximum target.
Partially achieved: the land bank targets are
commercially sensitive and will be disclosed
oneyear in arrears
a
.
86%
Sustainability –
5-star
5
homebuilder
7% Retaining 5-star
4
homebuilder status (as measured by the HBF)
and achieve a score of at least 90%.
Achieved: we retained our 5-star
4
homebuilder
status. The Group’s score in 2026 was 4.38.
100%
Sustainability
– Employee
Engagement
6% A threshold payment of 3% of salary is triggered for a score
of80% with an additional bonus opportunity on a straight-line
basis for further improvement in score, up to a maximum of
6%of salary for a score of at least 85%. Based on the average
score to four questions on the survey.
Achieved: the score was 86% so the maximum
target was exceeded.
100%
Sustainability –
Carbon Reduction
7% Number of timber frame kits produced by Bellway Home
Space. Threshold payment of 3% of salary is triggered
for175homes produced up to a maximum of 7% of salary
for225 homes.
Achieved: 228 homes were produced by Bellway
Home Space.
100%
Note:
a. The 2024/25 base target was set at 8,500 plots with a maximum target of 9,500 plots. The actual performance achieved was 9,488 plots.
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 during the year under review,
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 Directors Outcome
Jason Honeyman £930,904
Shane Doherty £558,672
Simon Scougall £516,772
In line with the Policy, 25% of the bonus will be deferred into shares and held for three years.
Bellway p.l.c. Annual Report and Accounts 2026 109GovernanceStrategic Report Accounts Other Information
Long-term incentives vesting in respect of the performance period ended 31 July 2026
LTIP awards granted on 24 October 2023 to Jason Honeyman and Simon Scougall were based on performance to 31 July 2026. The performance targets for these awards and actual
performance against those targets are set out below.
Performance measure
Weighting
(% of maximum)
Threshold
(25% of maximum)
Maximum
(100% of maximum) Actual
Vesting
(% of maximum)
Relative TSR vs peer housebuilders
a
25% Median Median +7.5% p.a. Above median
+7.5%p.a.
100%
Relative TSR vs FTSE 350
b
25% Median Upper quartile Below median 0%
Underlying return on capital employed
2,c
10% 10.0% 13.0% 9.2 % 0%
Underlying operating margin
1,2
10% 9.1% 9.6% 10.1 % 100%
Strategic land in the land bank 10% 2,700 plots 3,000 plots >3,000 plots 100%
Nine-month customer engagement score 10% 79% 82% 88.89 % 100%
Timber house construction
d
10% See below See below See below 100%
Total 100% 65.0%
Notes:
a. The initial peer group included: Barratt Developments plc, The Berkeley Group plc, Crest Nicholson Holdings plc, Persimmon plc, Redrow plc, Taylor Wimpey plc and Vistry Group plc. Redrow delisted following
itsmerger in August 2024 with Barratt Developments and has now been excluded from the peer group.
b. Excludes financial services companies and investment trusts.
c. Calculated by adding back land creditors to capital employed.
d. The target set was the successful redesign of the Artisan house types to accommodate a timber frame construction methodology. This was fully achieved.
Based on performance over the period, 65.0% of the award will vest. The Committee is comfortable that the formulaic outcome of the LTIP reflects wider business performance and so no
discretion has been applied.
The awards will vest on 24 October 2026. The vesting details for the Executive Directors are set out below.
Executive
Directors Vesting date
Number of
shares granted
Dividend
equivalent shares
Number of
shares to lapse
c
Number of
shares to vest
c
Decrease in value as
a result of share
price movement
between grant and
vesting
a
£000
Dividend
equivalent on
shares to vest
£000
Estimated
value
b
£000
Jason Honeyman 24 October 2026 75,036 7,851 29,011 53,876 £75.2 £149.2 £1,023.9
Simon Scougall 24 October 2026 18,210 1,905 7,041 13,074 £18.3 £36.2 £248.5
Notes:
a. The share price used to calculate the value of the awards on grant was £20.40.
b. The estimated value is calculated applying a share price based on an average over the three-month period ended 31 July 2026 of £19.00.
c. This includes the dividend equivalent shares.
Shane Doherty currently has no vesting awards as he joined the Board on 2 December 2024.
Remuneration Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 110GovernanceStrategic Report Accounts Other Information
Single figure of total remuneration (audited)
Salary and fees
£
Taxable
benefits
c
£
Pension
d
£
Annual
bonus
£
Sub-total
£
Long-term
incentives
e
£
Other
items
f
£
Total
£
Total fixed
remuneration
£
Non-Executive Chair
John Tutte 2026 325,000 – – – 325,000 – – 325,000 325,000
2025 281,212 – – – 281,212 – – 281,212 281,212
Executive Directors
Jason Honeyman 2026 823,809 46,616 82,381 930,904 1,883,710 1,023,856 – 2,907,566 952,806
2025 799,814 46,832 79,981 1,170,304 2,096,931 1,171,393 – 3,268,324 926,627
Simon Scougall 2026 457,320 44,490 45,732 516,772 1,064,314 248,458 – 1,312,772 547,542
2025 444,000 39,256 76,942 649,670 1,209,868 274,723 – 1,484,591 560,198
Shane Doherty
a
2026 494,400 114,971 24,720 558,672 1,192,763 – 7,625 1,200,388 634,091
2025 320,000 72,133 14,000 465,665 871,798 – – 871,798 406,133
Non-Executive Directors
Sarah Whitney 2026 84,626 – – – 84,626 – – 84,626 84,626
2025 80,307 – – – 80,307 – – 80,307 80,307
Jill Caseberry 2026 81,294 – – – 81,294 – – 81,294 81,294
2025 82,200 – – – 82,200 – – 82,200 82,200
Ian McHoul 2026 87,126 – – – 87,126 – – 87,126 87,126
2025 82,200 – – – 82,200 – – 82,200 82,200
Cecily Davis 2026 77,626 – – – 77,626 – – 77,626 77,626
2025 67,600 – – – 67,600 – – 67,600 67,600
Gill Barr
b
2026 67,021 – – – 67,021 – – 67,021 67,021
Philip Harrison
b
2026 5,802 – – – 5,802 – – 5,802 5,802
Total 2026 2,504,024 206,077 152,833 2,006,348 4,869,282 1,272,314 7,625 6,149,221 2,862,934
2025 2,157,333 158,221 170,923 2,285,639 4,772,116 1,446,116 – 6,218,232 2,486,477
Notes:
a. Shane Doherty was appointed Chief Financial Officer on 2 December 2024.
b. Gill Barr was appointed to the Board on 15 September 2025 and Philip Harrison was appointed to the Board on 1 July 2026.
c. Taxable benefits include car allowance/benefit, health insurance and hotel and travel costs.
d. Jason Honeyman’s pension allowance is 10% of salary and Shane Doherty’s is 5% of salary reflecting his shorter service. Due to an administrative error, Simon Scougall continued to be paid his pension allowance
attherate applicable before he was appointed as a director, rather than the 10% rate he should have been earning from the date of his appointment to the Board. The overpayments in the 2025 and 2026 financial years
amounted to £32,542 and £11,433 respectively. Simon Scougall has agreed to receive a reduced pension allowance, from when the error was identified in FY26 to when the over payment has been fully offset, which is
expected to be during FY27. None of the Directors are members of the Group’s defined benefit scheme.
e. The 2025 figures for Jason Honeyman and Simon Scougall have been adjusted to reflect the actual share prices at the dates of vesting, which took place after the publication of last year’s report.
f. Other items refer to the discount on the awards, during the year stated, under the Group’s all-employee savings-related share option scheme.
Bellway p.l.c. Annual Report and Accounts 2026 111GovernanceStrategic Report Accounts Other Information
Directors’ share-based rewards and options (audited)
Details of all Directors’ interests in the Company share-based reward schemes are shown below.
Jason Honeyman
Scheme
Awards/options
held at
1 August 2025
Granted/awarded
during the year
Exercised
during the year
Lapsed
during the year
Awards/options
held at
31 July 2026
Exercise price/
market price at
date of award (p)
Date of
grant/award
Exercisable/
capable of
vesting from
PSP 64,901 – 41,940 22,961 – 1,937.0 11.11.2022 11.11.2025
2013 SRSOS
e
1,935 – – – 1,935 1,550.0 07.12.2022 01.02.2028
PSP
a
75,036 – – – 75,036 2,040.0 24.10.2023 24.10.2026
RSP
b
32,064 – – – 32,064 2,494.0 16.12.2024 16.12.2027
PSP
c
– 59,956 – – 59,956 2,748.0 27.11.2025 27.11.2028
Total 173,936 59,956 41,940 22,961 168,991
Simon Scougall
Scheme
Awards/options
held at
1 August 2025
Granted/awarded
during the year
Exercised
during the year
Lapsed
during the year
Awards/options
held at
31 July 2026
Exercise price/
market price at
date of award (p)
Date of
grant/award
Exercisable/
capable of
vesting from
PSP 15,221 – 9,836 5,385 – 1,937 11.11.2022 11.11.2025
2013 SRSOS
e
1,935 – – – 1,935 1,550 07.12.2022 01.02.2028
PSP
a
18,210 – – – 18,210 2,040 24.10.2023 24.10.2026
RSP
b
17,800 – – – 17,800 2,494 16.12.2024 16.12.2027
PSP
c
– 33,283 – – 33,283 2,748 27.11.2025 27.11.2028
Total 53,166 33,283 9,836 5,385 71,228
Remuneration Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 112GovernanceStrategic Report Accounts Other Information
Shane Doherty
Scheme
Awards/options
held at
1 August 2025
Granted/awarded
during the year
Exercised
during the year
Lapsed
during the year
Awards/options
held at
31 July 2026
Exercise price/
market price at
date of award (p)
Date of
grant/award
Exercisable/
capable of
vesting from
RSP
b
19,243 – – – 19,243 2,494 16.12.2024 16.12.2027
PSP
c
– 35,982 – – 35,982 2,748 27.11.2025 27.11.2028
2013 SRSOS
e
– 1,458 – 1,458 – 2,108 28.11.2025 01.02.2031
2013 SRSOS
e
– 1,911 – – 1,911 1,598 13.05.2026 01.07.2031
Total 19,243 39,351 – 1,458 57,136
Notes:
a. The performance period is 1 August 2023–31 July 2026. The awards are subject to the following conditions: Relative TSR vs a bespoke peer group of housebuilders (25%), Relative TSR vs FTSE 350 excluding financial
services companies and investment trust (25%), margin protection metrics (30%) and sustainability (20%). These awards are subject to clawback provisions.
b. The restricted share awards were granted under the LTIP to Jason, Shane and Simon equal to 100% of their respective salaries on grant. The awards are subject to a performance underpin. Awards will only be eligible
tovest subject to the 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. These awards are subject to clawback provisions.
c. On 27 November 2025, awards were granted under the LTIP to Jason, Simon and Shane equal to 200% of their respective salaries on grant. The performance period is 1 August 2025–31 July 2028. The awards are subject
to the following conditions: Group’s underlying pre-tax return on equity for the final financial year (50%), Group’s cumulative underlying profit after taxation for the three financial years (25%), Relative TSR vs a bespoke
peer group of housebuilders (25%). These awards are subject to clawback provisions. Further details are set out in last year’s annual report.
d. All of the above awards set out in notes a–c were granted for nil consideration and have a nil exercise price.
e. Further details of the 2013 SRSOS are shown in the summary of outstanding share options in note 23 to the Group Financial Statements.
f. The market price of the ordinary shares at 31 July 2026 was 1,988p and the closing range during the year was 1,715p to 2,848p.
Payments for loss of Office and to past Directors (audited)
Leaving arrangements for Keith Adey
The only payments made to Keith Adey in relation to his role as Group Finance Director since his retirement are those detailed on page 133 of our 2025 Annual Report and Accounts
inrespect of his participation in incentive schemes up to his leaving date.
In line with those terms, 16,238 shares in respect of his 2023 LTIP award will vest on 24 October 2026, incorporating the performance assessment of 65.0% of maximum (see page 110 for
details), and time pro-rating of 0.55 to reflect the proportion of the performance period that he worked. Consistent with the terms of this award, in addition he will receive 1,699 dividend
equivalent shares.
Keith exercised share options under the Company’s SRSOS, which were pro-rated to Keith’s length of service; Keith acquired 1,032 ordinary shares.
No further payments were made to past Directors. All payments are in line with the Remuneration Policy.
Bellway p.l.c. Annual Report and Accounts 2026 113GovernanceStrategic Report Accounts Other Information
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 2026
c,e
% basic salary held
by Executive
Directors in
shares
a,b
Shareholding
target of 300% of
basic salary met?
Beneficially
owned at
31 July 2025
c
Outstanding and
unvested PSP
awards
d
– with
performance
conditions
Outstanding and
unvested share
awards/options –
without
performance
conditions
Vested
unexercised
options
Share options
exercised
in the year
Jason Honeyman 6 7,4 87 191% In progress 39,460 134,992 33,999 – 41,940
Simon Scougall 16,374 84% In progress 7,979 51,493 19,735 – 9,836
Shane Doherty 2,021 10% In progress – 35,982 21,154 – –
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 1,131 N/A N/A N/A N/A
Cecily Davis – N/A N/A – N/A N/A N/A N/A
Gill Barr 1,284 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
Philip Harrison 2,019 N/A N/A – N/A N/A N/A N/A
Notes:
a. For 2024/25, 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 LTIP, after allowance for paying tax, until the requisite number of shares has been accumulated. As agreed with the
Company, Shane Doherty used part of his FY25 bonus to acquire the required amount of shares.
b. The percentage of shareholding is based on salaries as at 31 July 2026 using the average share price for the year of 2337p.
c. Includes shares owned by partner.
d. All awards are structured in the form of nil-cost options.
e. Each of the Executive Directors’ holdings will increase as a result of the part of their bonuses that will be invested in Bellway shares through the deferral of the annual bonus set out on page 108.
There has been no change in any of the above interests between 31 July 2026 and the date of this report.
The following section of this Report is not required to be audited.
Implementation of Remuneration Policy in 2026/27
This section sets out how the Company will implement the Remuneration Policy for the 2026/27 financial year. Full details of how each element will operate are set out in the Remuneration
Policy table.
The Committee will take into account the remuneration and related policies for the rest of the workforce generally and is engaging with the workforce through the Employee Listening
Groups when setting the 2026/27 targets for the Executive Directors.
Basic salaries
The Committee has awarded Jason Honeyman, Shane Doherty and Simon Scougall salary increases of 3%, 5% and 6% respectively. Therefore, from 1 August 2026, Jason’s salary was
increased to £848,522 per annum, Shane’s salary was increased to £519,120 per annum and Simon’s salary was increased to £484,759 per annum.
Remuneration Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 114GovernanceStrategic Report Accounts Other Information
Annual bonus
The bonus opportunity will be in line with the existing Remuneration Policy maximum of 150% of basic salary.
The 2026/27 bonus will be subject to underlying operating profit (55%), adjusted operating cash flow (55%) and Responsible Business measures (40%).
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.
Long-term incentives
Performance shares will be granted under the LTIP with a face value equivalent to up to 200% of salary to the Executive Directors. Awards will vest to the Executive Directors after three
years, subject to the achievement of performance conditions with any shares vesting subject to a two-year holding period.
Regardless of the vesting outcome, 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, or whether there has been a windfall gain as a result of share price movements from the date of grant.
Metric (weighting)
Performance
condition
Threshold
target Stretch target
Underlying pre-tax return on equity (50%) In FY29. 7.5% (25% vests) 11.0%
(100%vests)
Cumulative underlying profit after taxation (25%) Aggregate level over
thethree year
performance period.
£450m
(25%vests)
£575m
(100%vests)
Relative total shareholder return (25%) Measured against the
companies within the
Housebuilding sector.
Median
(25%vests)
Upper Quartile
(100% vests)
No vesting occurs for performance below the threshold target and straight-line vesting takes place between the above targets. The Committee will consider the quality of the Group’s
performance that has delivered the underlying profit after taxation and underlying pre-tax return on equity and the extent to which it is supported by the non-financial performance
(e.g.ensuring the Group has sufficient land in place and with work-in-progress at suitable stages of development).
Non-Executive Director fees
The Company’s approach to Non-Executive Directors’ remuneration is set by the Board (other than the Board Chair, which is set by the Committee), 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 2026, an increase of 3% to the Non-Executive Director base fees was approved by the Non-Executive Committee on Remuneration in line with the increase
forthewider workforce. The fees for additional NED responsibilities, including for the Senior Independent Director and Committee chairing, will remain unchanged.
Metric (weighting)
Fee from
1 August 2025
£
%
increase
Fee from
1 August 2026
£
Non-Executive Chair fee 325,000 3% 335,000
Non-Executive Director fee 69,626 3% 71,715
Senior Independent Non-Executive Director 15,000 0% 15,000
Audit and Remuneration Committee Chair fees 17,500 0% 17,500
Non-Executive Director of Workplace Engagement fee 8,000 0% 8,000
Bellway p.l.c. Annual Report and Accounts 2026 115GovernanceStrategic Report Accounts Other Information
0
100
50
250
200
150
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
31 July
2025
31 July
2026
Total Shareholder Return (£, rebased)
Housebuilders’ IndexBellway FTSE 250 Index
159
140
117
151
141
127
143
131
102
190
190
146
149
148
130
173
124
159
142
123
178
194
189
152
143
135
128
162
149
121
Remuneration Report (continued)
Performance graph and table
The graph 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 113). 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 2026, of £100 invested in Bellway on 31 July 2016 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.
Bellway p.l.c. Annual Report and Accounts 2026 116GovernanceStrategic Report Accounts Other Information
Chief Executive total remuneration
The table below sets out the total remuneration for the 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).
Scheme 2017 2018
a
2019
b
2020 2021 2022 2023 2024 2025 2026
Total
remuneration
(£000) 3,468 1,737 1,220 1,110 1,998 1,738 1,089 1,715 3,232 2,908
Annual bonus paid
(as % of maximum) 93.8% 0.0% 76.7% 0.0% 99.5% 98.6% 20.9% 90.0% 97.5% 75.3%
PSP vesting (as a %
of maximum) 100.0% 99.8% 30.6% 47.7% 28.7% 0% 0% 0% 56.4% 65.0%
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 Chief Executive on 1 August 2018.
CEO pay ratio
We are publishing our CEO pay ratio figures for the financial years 2018/19, to 2025/26. Over time, ten-year ratios will eventually be disclosed.
Upper quartile Median Lower quartile
Financial year Method Pay ratio
Total pay and
benefits
£
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 44,865 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 24,562
2022/23 A 15:1 74,421 55,000 22:1 49,903 40,215 34:1 32,422 26,462
2023/24 A 23:1 75,809 59,076 34:1 51,128 44,504 49:1 35,040 27,565
2024/25 A 41:1 78,948 64,913 61:1 53,362 46,784 88:1 36,737 30,261
2025/26 A 35:1 82,906 71,537 53:1 54,707 48,855 77:1 37,603 29,250
The pay ratios have been calculated as at 31 July 2026 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. The annual bonus earned during
the2025/26 financial year, which is expected to be paid in October 2026, has been approved.
The CEO pay ratio has increased this year due to a proposed payout under the LTIP scheme. A similar impact can be seen in FY21 and FY25. 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 save for their opportunity to participate in an LTIP scheme.
Bellway p.l.c. Annual Report and Accounts 2026 117GovernanceStrategic Report Accounts Other Information
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 2025 and 31 July 2026. 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.
2026
£m
2025
£m % change
Employee costs
a
197.0 182.6 +7.9%
Dividends
b
84.8 83.0 +2.2%
Share buyback
c
139.8 – +100.0%
Section 106 and CIL payments
d
59.5 84.0 -29.2%
Notes:
a. Employee costs are calculated as wages and salaries, bonus and taxable benefits (including the Directors) (See note 21 to the Group Financial Statements).
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 Group Financial Statements).
c. The share buyback costs include all associated transaction costs, including any applicable professional fees and stamp duty charges.
d. The Section 106 and CIL payments figures are calculated from invoices received for these payments, this figure includes Section 75 and Section 78 obligations in Scotland.
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 27 November 2025)
Remuneration Report (advisory vote at
AGM on 27 November 2025)
Financial year ending 31 July 2025 Number of votes % of votes cast Number of votes % of votes cast
For 88,268,442 96.90 87,998,028 96.60
Against 2,823,307 3.10 3,097,308 3.40
Total votes cast (excluding votes withheld) 91,091,749 100.00 91,095,336 100.00
At the AGM on 26 November 2026, the Company’s shareholders will have an advisory vote on the Remuneration Report.
Remuneration Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 118GovernanceStrategic Report Accounts Other Information
Directors’ Remuneration Policy
This part of the remuneration report provides a summary of the Directors’ Remuneration Policy, which was approved by shareholders at the AGM on 27 November 2025. Factual data has
been updated where appropriate (e.g. details of service contracts). A full version of the policy, as approved by shareholders, can be found in the Annual Report and Accounts for 2025 on
the Company’s website.
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 a
significant proportion of an executive’s potential total remuneration package but are only receivable if the stretch performance targets are achieved.
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 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
judgment 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 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.
Remuneration Policy
This section of the Report describes the key components of each element of the remuneration arrangements for Executive and Non-Executive Directors.
Component and link to strategy 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.
Bellway p.l.c. Annual Report and Accounts 2026 119GovernanceStrategic Report Accounts Other Information
Component and link to strategy Operation Maximum opportunity Framework to assess performance
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, except Shane Doherty who
iscurrently at 5% (see footnote on
page 111).
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.
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 October
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.
Remuneration Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 120GovernanceStrategic Report Accounts Other Information
Component and link to strategy Operation Maximum opportunity Framework to assess performance
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.
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.
An Executive Director 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.
Long-term incentives
To encourage
long-term value creation,
aidretention, encourage
shareholding and promote
alignment of interests
withshareholders.
The Company grants Performance 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, subject
to the achievement of stretching
performance targets.
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. 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.
200% of basic salary in respect
ofafinancial year.
Awards will be subject to a combination of long-term
measures, which are aligned to the shareholder
experience and may include financial metrics,
shareholder value metrics and ESG or strategic
measures. At least half of the award will be subject
tofinancial and/or shareholder return measures.
The Committee will have discretion to set different
measures and weightings for awards in future years to
best support the strategy of the business at that time.
No more than 25% of a part of an award will vest at
threshold with full vesting taking place for equalling
orexceeding maximum targets set.
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.
Bellway p.l.c. Annual Report and Accounts 2026 121GovernanceStrategic Report Accounts Other Information
Component and link to strategy Operation Maximum opportunity Framework to assess performance
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.
Chair and Non-Executive Directors
To set appropriate fees in
lightofthe time commitment,
responsibilities, wider market
and best practice.
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 as set out
in the Articles of Association. This is
currently £1m.
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.
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. The Committee
issatisfied that any circumstances that would give rise to a potential clawback/malus scenario would be likely to be identified during these time periods. No potential circumstances were
identified and there was no exercise of clawback/malus under the Policy during the year.
Service contracts
The details of the Executive Directors’ service contracts are as follows:
Executive Director
First appointed
as a Director
Current contract
commencement
date
Notice period
from employer
Notice period
from Executive
Jason Honeyman 1 September 2017 1 August 2018 12 months 12 months
Simon Scougall 1 August 2024 1 August 2024 12 months 12 months
Shane Doherty 2 December 2024 1 December 2024 12 months 12 months
Remuneration Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 122GovernanceStrategic Report Accounts Other Information
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 reappointment 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 a Director
Current letter of
appointment
commencement
date
Current letter
of appointment
end date
Jill Caseberry (resigned from the Board on 30 September 2026) 1 October 2017 N/A N/A
Ian McHoul 1 February 2018 1 February 2024 31 January 2027
John Tutte 1 March 2022 1 April 2025 30 March 2028
Sarah Whitney 1 September 2022 1 September 2025 31 August 2028
Cecily Davies 1 May 2024 1 May 2024 30 April 2027
Gill Barr 15 September 2025 15 September 2025 14 September 2028
Philip Harrison 1 July 2026 1 July 2026 30 June 2029
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 of the Committee.
There will be no bonus payment in respect of any period of notice
not worked.
Bellway p.l.c. Annual Report and Accounts 2026 123GovernanceStrategic Report Accounts Other Information
Element Bad leaver
a
Departure on agreed terms
b
Good leaver
c
Performance share
awards and legacy
restricted 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 awards may 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 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.
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.
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; and
– 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.
The Committee are very grateful for the strong support shown by shareholders for the Directors’ Remuneration Policy, which can be found in full within the 2025 Annual Report
andAccounts on our website: https://www.bellwayplc.co.uk/investor-centre/financial-performance/results-reports-presentations
Gill Barr
Chair of the Remuneration Committee
12 October 2026
Remuneration Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 124GovernanceStrategic Report Accounts Other Information
Sustainability Committee Report
“ The Company’s
sustainability
governance
framework
has developed
considerably since
the launch of the
‘Better with Bellway’
sustainability
strategy in 2022.”
John Tutte
Chair of the Sustainability Committee
Membership and
meeting attendance
Asat 31 July 2026, before the dissolution of the Committee on 1 August 2026 the
members were:
Director Date appointed to the Board
Number
of meetings attended
during the year
k
John Tutte (Chair) 18 May 2023
3/3
Simon Scougall 11 March 2025 3/3
Shane Doherty 11 March 2025 3/3
k. The Non-Executive Directors were invited to attend.
The Group Production Managing Director and Head of Sustainability (Group Office)
alsoattended each Committee meeting.
Simon Scougall Shane Doherty
Key responsibilities
The key responsibilities of the Committee
during the year were as follows.
– Debate, review and scrutinise the
‘Betterwith Bellway’ strategy and
implementation plan and make
recommendations to the Board
for approval.
– Monitor, challenge and review the
objectives, KPIs and targets set in
relationto the implementation of the
‘Better with Bellway’ strategy.
– Oversee the activities of, and receive
report from, the ‘Better with Bellway’
Steering Group.
– Identify, debate, review and scrutinise
thebusiness response to environment
andsocial risks with specific focus on
climate risks and opportunities.
– Work and liaise as necessary with
otherBoard Committees, ensuring the
interaction on sustainability matters
between Committees and with the
Boardis reviewed regularly.
The Committee met at least three times
during theyear and operated under its own
TermsofReference. These were agreed
bythe Board.
Statement from the Chair of
theSustainability Committee
I am pleased to present the final
Sustainability Committee Report due to
thedissolution of the Committee following
the implementation of our new Responsible
Business strategy. From August 2026,
theCommittee’s responsibilities will now
fallunder the remit of the Board.
The Sustainability Committee (the
Committee) played a vital role in guiding
Bellway’s commitment to operating
responsibly and sustainably.
The Committee was responsible for
overseeing ‘Better with Bellway’ and the
transition to our new Responsible Business
strategy and ensuring that sustainability is
embedded across all operations including land
acquisition, construction, sales, community
engagement and climate resilience.
By aligning our practices with long-term
valuecreation and stakeholder expectations,
theCommittee supported Bellway’s ambition
to build high-quality homes and create a
more sustainable future.
Key focus areas during FY26
– Continued to oversee the progress
ofthe‘Better with Bellway’ strategy.
– Monitored progress with the Climate
Transition Plan and net zero targets.
– Oversaw the double materiality assessment,
and ensured the results were reflected in
anupdated ‘Better with Bellway’ strategy.
– Oversaw the transition of ‘Better with
Bellway’ to our new Responsible
Business approach.
– Approved the Responsible Business
targets and KPIs for FY26 and FY27,
ensuring they support the delivery of the
overall Responsible Business strategy.
Bellway p.l.c. Annual Report and Accounts 2026 125GovernanceStrategic Report Accounts Other Information
Committee activities
during the year
– Oversaw the delivery of a Sustainability
Strategic Review project, which assessed
the ‘Better with Bellway’ strategy and
identified a future approach, which defined
a new narrative and architecture creating
our new Responsible Business strategy.
– Received regular updates from the Head
of Sustainability (Group Office) and Group
Production Managing Director on the
progress of our ‘Better with Bellway’
KPIsand initiatives.
– Approved the transition from ‘Better
withBellway’ to our new Responsible
Business strategy.
– Approved the updated and
amendedResponsible Business
performanceframework.
Committee evaluation
As the Committee was being dissolved it
was not considered as part of the annual
evaluation process.
Transition from
‘Better with Bellway’ to
Responsible Business
In November 2025, the Committee agreed
aSustainability Strategic Review, delivered
by Bellway and our advisers Sodali & Co,
which assessed the ‘Better with Bellway’
strategy and identified a future approach,
which defined new narrative and
architecture creating our new Responsible
Business approach.
In March 2026, the Committee approved
thetransition from ‘Better with Bellway’
toResponsible Business.
See pages 29 to 49 for more information
onour Responsible Business approach
Future of the Committee
The Company’s sustainability governance
framework has developed considerably
since the launch of the ‘Better with Bellway’
sustainability strategy in 2022 and the
creation of the Sustainability Committee
in2023. As the Company’s approach to
sustainability management and oversight
has matured, the incremental benefits of
maintaining a separate Committee structure
have diminished.
The Committee’s responsibilities will now
fall under the remit of the Board as this will
provide for a deeper integration of
sustainability considerations into strategic
business decisions; direct involvement of all
Directors in sustainability oversight; and
streamlining of governance structures to
enable more efficient decision making.
In addition, to further support the full
integration of the new Responsible Business
strategy into core business operation,
theResponsible Business Steering Group
has recently been strengthened, with the
CFO now assuming the role of Chair and
membership expanded to include the Chief
Commercial Officer, Group Finance Director
and Company Secretary, Group HR Director
and the Group Sales and Customer
Experience Director. The Responsible
Business Steering Group will meet three
times per year, and provide cross-functional
oversight and accountability.
John Tutte
Chair of the Sustainability Committee
12 October 2026
Sustainability Committee Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 126GovernanceStrategic Report Accounts Other Information
1
6
7
8
9
11
10
12
13
2
5
4
3
Executive Committee Report
Executive Committee
The Executive Committee is a management committee that oversees the strategic direction
of the Group, making key decisions on operations, performance, and long-term planning,
while also supporting and reporting to the Board on strategic decision making.
The Executive Committee comprises of Executive Directors and senior management,
including the Regional Chairs and certain Group Directors.
1. Jason Honeyman
Chief Executive
2. Shane Doherty
Chief Financial Officer
3. Simon Scougall
Chief Commercial Officer
4. Phil Hope
Group Finance Director and
Company Secretary
5. Steve Brown
Scotland and West Regional Chair
6. Ian Gorst
London and South-East
RegionalChair
7. Stuart Gray
Northern Regional Chair
8. Tony Atkin
Group Production Managing Director
9. Stefan Briddon
Group Strategic Land
ManagingDirector
10. Matt Grayson
Group Customer Experience
and Sales Director
11. Gavin Jago
Group Investor Relations Director
12. Heidi Khoshtaghaza-Hay
Group HR Director
13. Lyndsey O’Leary
Group Risk Director
Bellway p.l.c. Annual Report and Accounts 2026 127GovernanceStrategic Report Accounts Other Information
Executive Committee Report (continued)
“ The Executive
Committee plays
a vital role in
supporting the
Board, and senior
management, in the
achievement of the
Group’s planning
andstrategy.”
Jason Honeyman
Chair of the Executive Committee
Membership and meeting attendance
Director
Date appointed to
the Committee
l
Number of meetings
attended during the year
Jason Honeyman (Chair) 9 January 2024 6/6
Shane Doherty 2 December 2024 6/6
Simon Scougall 9 January 2024 6/6
Phil Hope 1 August 2024 6/6
Steven Brown 9 January 2024 6/6
Ian Gorst 9 January 2024 6/6
Stuart Gray 9 January 2024 6/6
Jonathan Underwood
m
9 January 2024 5/5
Stefan Briddon 1 August 2025 6/6
Matt Grayson 1 February 2025 6/6
Gavin Jago 9 January 2024 5/6
Heidi Khoshtaghaza-Hay 9 January 2024 5/6
Lyndsey O’Leary 1 August 2025 6/6
Tony Atkin 9 January 2024 6/6
l. The Committee was constituted on 9 January 2024.
m. Jonathan Underwood left the business in June 2026.
Statement from the Chair
oftheExecutive Committee
I am pleased to present the Executive
Committee Report for the year ended
31 July 2026. This report details the key
focus areas, key responsibilities and the
main activities undertaken by the committee
throughout the year.
The Executive Committee (the Committee)
plays a vital role in supporting the Board,
and senior management, in the achievement
of the Group’s planning and strategy, daily
operating activities, risk and internal control,
and people management activities.
The Committee is responsible for the
day-to-day operations of the Company,
andacts as an extension of the Board.
The Committee receives reports at each
meeting from the Chief Executive, Chief
Commercial Officer and Chief Financial
Officer, as well as reports and updates from
members of the senior management team.
The Executive Committee comprises
ofExecutive Directors and senior
management, including the Regional
Chairsand certain Group Directors.
Key focus areas for FY26
– Oversaw the opening of Bellway Home
Space, our new timber frame facility.
– Launched our new Company values.
– Conducted a major brand review and
coordinated the launch of our new brand.
– Oversaw the transition from the ‘Better
with Bellway’ strategy to the new
Responsible Business strategy.
Key responsibilities
The key responsibilities of the Committee
are as follows:
– Recommending objectives and strategy
for the Board’s approval; as well as
optimising the allocation and adequacy
ofthe Group’s resources.
– Overseeing the implementation of the
Board-approved objectives and strategy.
– Managing performance on a day-to-day
basis in accordance with the approved
objectives and strategy.
– Monitoring the performance against KPIs,
budgets and the achievement of the
approved strategy.
– Ensuring the identification,
managementand monitoring of risks
andthe implementation of effective
internal controls.
– Reviewing the performance, development
and succession planning of
senior management.
– Monitoring the people agenda across
theGroup, including diversity and
inclusivity, and the Group’s culture,
toensure alignment with the Group’s
values, purpose and strategy, and
regulatory requirements.
The Committee meets at least six times
afinancial year and operates under its own,
Board-approved, Terms of Reference.
Bellway p.l.c. Annual Report and Accounts 2026 128GovernanceStrategic Report Accounts Other Information
Committee activities
during the year
– Received regular updates and monitor
theannual risk appetite assessment.
– Monitor business performance including
sales rates, margin and cash metrics.
– Received regular updates on return on
capital employed including cost control,
margin improvement and land management.
– Monitored the brand review process and
helped drive the implementation of the
new brand.
– Received updates on the progress of
Bellway Home Space and attended the
opening in January 2026.
– Routinely monitor and assess the risks
and controls of the Company including
themonitoring of cyber and IT related
risks and mitigating controls including
theincreasing use of AI.
– Implemented the launch of a new
enhanced Anti-Money Laundering (AML)
system across the Company.
– Received updates on the results of our
National Employee Listening Groups.
– Received updates on the results of our
Employee Engagement Survey.
– Oversaw the development of IT equipment
and systems in support of the Company’s
future needs.
– Oversaw the development of
cyber-related training for the Board.
– Monitored legal and compliance matters
and oversaw the implementation of actions
required to maintain the Company’s
compliance with applicablelaws, regulations
and governance requirements.
– Received regular updates on health and
safety performance across the business,
including key metrics, incidents and
emerging risks.
Our new brand
In preparation for our new brand launching
in March 2026, the Committee received
regular updates from the Group Customer
Experience & Sales Director.
The Committee monitored the progress
ofthe brand launch, offering guidance
andrecommendations on key strategic
andoperational considerations to support
the effective execution of the launch.
Members of the Executive Committee
wereinvolved in the internal launch of the
brand including the Chief Executive, Group
Customer Experience & Sales Director as
well as the Group HR Director who at the
same time launched the new Bellway Values.
Composition of the Committee
The Committee comprises of the Chief
Executive, Chief Financial Officer and
ChiefCommercial Officer and other Senior
Executives as the Chief Executive may
determine. The Group Deputy Company
Secretary or their nominee acts as
Secretary to the Committee and attends
all meetings.
In August 2026, Lyndsey O’Leary,
GroupRisk Director and Stefan Briddon,
Group Strategic Land Managing Director
joined the Committee.
Committee evaluation
The Executive Committee effectiveness
review, which was conducted internally
bythe Deputy Group Company Secretary,
concluded that the Committee and its
members continue to operate effectively
and provide a valuable forum for the
consideration of strategic and operational
matters. As the Committee continues to
mature, members recognised its important
role in supporting robust decision-making
and ensuring appropriate matters are
considered before onward approval
totheBoard.
The review also identified opportunities
tofurther strengthen the Committee’s
effectiveness. In particular, focus will be given
to developing a more substantive annual
programme of business to support forward
planning and ensuring sufficient time is
allocated for discussion, debate andchallenge
of key matters before they areprogressed to
the Board.
These enhancements will support the
Committee’s continued development
as an effective part of the Group’s
governance framework.
Jason Honeyman
Chair of the Executive Committee
12 October 2026
Bellway p.l.c. Annual Report and Accounts 2026 129GovernanceStrategic Report Accounts Other Information
Directors’ Report
“ The Directors have
proposed a final
ordinary dividend
for the year ended
31 July 2026 of
52.0pper share.”
Phil Hope
Group Finance Director and
Company Secretary
Topic Pages
Directors 62 to 65
Appointment and replacement ofDirectors 61 and in the Articles
Directors’ interests 114
Future developments 14 of the Strategic Report
Group undertakings 184
Environmental issues 29 to 49 of the Strategic Report
Section 172 statement 70 to 71 of the Strategic Report
Greenhouse gas emissions 47 of the Strategic Report
Whistleblowing 102
Financial risk management 50 to 52 of the Strategic Report
Going concern 57 of the Strategic Report
Post balance sheet events Note 27 on page 176
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 theSubsidiaries,
Associates and Joint Ventures
section ofthe accounts.
The table on the left 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.
Results and dividends
The profit for the year attributable to
equityholders of the parent company
amounts to £193.4m (2025: £157.5m).
The Directors have proposed a final ordinary
dividend for the year ended 31 July 2026
of52.0p per share (2025: 49.0p). 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 13 January 2027 to
shareholders on the Register of Members
atthe close ofbusiness on Friday
4 December 2026.
Dividends paid during the year comprise
thefinal dividend of 49.0p per share in
respect of the year ended 31 July 2025,
together with an interim dividend in respect
of the year ended 31 July 2026 of 23.0p
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 provisions remain
inforce as at the date of this report.
Bellway p.l.c. Annual Report and Accounts 2026 130GovernanceStrategic Report Accounts Other Information
Post balance sheet events
The Board has approved a return of £75m
surplus capital to shareholders, through the
initial tranche of the Second Share Buyback
Programme, with contract terms agreed
on1 September 2026 and amended solely
toincrease the size from £50m to £75m,
on12 October 2026. As set out in the Chair’s
Statement, the full value of the Second
Share Buyback Programme, which will
coverFY27, is £150m.
The Group acquired 100% of both the
ordinary and preference share capital
ofLlanmoor Development Co. Limited on
30 September 2026 for consideration of
£40.4m, payable over three years. As this
transaction was very recent the acquisition
accounting has not yet been completed.
In line with IFRS 3 ‘Business Combinations’,
the acquisition accounting will be finalised
within 12 months of the acquisition date.
Major interests in shares
As at 31 July 2026, or as at 6 October 2026,
the latest practicable date prior to the
publication of this report, the Company is
aware from analyst reports and notifications
received from shareholders 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 2026 As at 6 October 2026
Number of
shares with
voting rights
% total
voting rights
Number of
shares with
voting rights
% total
voting rights
Man GLG 6,732,561 5.87 6,732,561 5.87
BlackRock 6,696,237 5.63 6,696,237 5.63
J.P. Morgan Asset Management Below 5% Below 5%
Dimensional Fund Advisors 6,148,373 4.99 6,148,373 4.99
FMR LLC 5,795,938 4.88 5,795,938 4.88
Credit Suisse Securities
(Europe) Ltd 3,890,282 3.38 3,890,282 3.38
At 6 October 2026, no further notifications had been received under the DTRs in relation to interests in the
Company’s shares.
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 debt
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 2026, consisted of 112,974,385
ordinary shares of 12.5p each.
Details of all the shares bought and
cancelled under the share buyback
programme can be found in note 18
oftheGroup Financial Statements.
The rights and obligations attaching to
theordinary shares in the Company are set
out in the Articles. Copies of the Articles
canbeobtained from Companies House or
bywriting to the Group Finance Director
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 have 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, 316,825 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.
UK Listing Rules
Details of long-term incentive schemes
asrequired by UK Listing Rule 9.3.3R are
located in the Directors’ Remuneration
Report on pages 104 to 124. There is no
further information required to be disclosed
under UK Listing Rule 6.6.1R.
Bellway p.l.c. Annual Report and Accounts 2026 131GovernanceStrategic Report Accounts Other Information
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 57, 99 and 132 respectively.
The Audit Committee, whose role is detailed
on page 90 to 103, has meetings at least
twice a year with the Company’s auditor,
Ernst & Young LLP.
Auditor
In accordance with section 489 of the
Companies Act 2006, a resolution for the
reappointment of Ernst & Young LLP as
auditor of the Company will be proposed
at the forthcoming AGM.
AGM – special business
Four resolutions will be proposed as special
business at the AGM to be held on Thursday
26 November 2026. Explanatory notes on
these resolutions are set out in the Notice.
Shareholder authority for
purchase of own shares
At the Company’s AGM held on
27 November2025, shareholders
authorisedthe Company to buy back
uptoan aggregate of 11,899,426 ordinary
shares of 12.5 pence each (representing
approximately 10% of the Company’s
issuedshare capital).
This authority is valid until the end of
the2026 AGM (at which a renewal of that
authority will be sought) or, if earlier, until
the close of business on 29 March 2027.
Under the authority, there is a minimum
andmaximum price to be paid for
such shares.
Any shares that are bought back may
beheld as treasury shares or, if not so
held,willbe cancelled immediately upon
completion of the purchase, thereby
reducing the Company’s issued
share capital.
On 14 October 2025 the Company
launcheda £150m Initial Share Buyback
Programme with its intention to return
excess capital toits shareholders over
thefollowing twelve months. Following this
announcement the Company purchased
6,852,847 ordinary shares of 12.5 pence
foratotal consideration of £149,999,879,
excluding costs by 31 July 2026.
All shares purchased under the share
buyback will be cancelled.
On 1 September 2026, the Company
launched an initial £50m tranche of the
Second Share Buyback Programme.
As at6 October 2026 (the latest practicable
date prior to the date of this document),
theCompany had purchased 637,308
ordinary shares of 12.5 pence, for a total
consideration of £13,175,490.
Approach to tax and
taxgovernance
For all taxes, it is the Group’s aim to ensure
itaccurately calculates and pays the tax
thatis due at the correct time. Whilst the
Group does seek to manage its tax liabilities
through legitimate routine tax structuring,
itdoes not participate in aggressive tax
planning schemes. The Group also seeks
tobe transparent in its dealings with
HMRCand has regular dialogue with
itsrepresentatives to discuss both
developments in the business and the
ongoing tax position. In accordance with
UKlegislation, we have published details
ofour tax strategy, and this can be found
https://www.bellwayplc.co.uk/investor-
centre/governance/statements.
The Chief Financial Officer retains overall
responsibility for oversight of the tax
affairsof the Group. Shane Doherty,
ChiefFinancial Officer, is the Senior
Accounting Officer throughout the year
ended 31 July 2026. The Senior Accounting
Officer receives regular updates on tax
matters. In addition, tax management and
strategy are reviewed at least annually
bythe Audit Committee and Board,
withnomaterial changes for the year
ended31 July 2026.
Class action
On 30 October 2025 the Competition and
Markets Authority (CMA) made a decision
toclose its investigation into information
sharing practices in the sector following
binding commitments from certain
housebuilders and a requirement for the
housebuilders to work with industry bodies
to develop and publish industry-wide UK
competition law guidance for the wider
sector. The CMA did not find that the
Competition Act 1998 had been infringed,
and the acceptance of commitments did
notinvolve any admission of wrongdoing
bythe housebuilders.
An application to commence a proposed
collective class action was filed in the
Competition Appeal Tribunal on 24 June
2026 against seven major housebuilders,
including Bellway. The application alleges
that exchanges of competitively sensitive
information breached competition law,
affected competition and resulted in higher
prices for certain purchasers of new-build
homes. The application states it is informed
by the CMA decision referred to above.
Theproposed collective action remains
atavery early stage and, as a result,
itisnotyet possible to assess the likely
outcome. Accordingly, no provision
hasbeenrecognised in respect of the
proposed action.
Disclosure of all relevant
information to the auditor
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 Financial
Statements in accordance with international
accounting standards in conformity with the
requirements of the Companies Act 2006
and the Company Financial Statements in
accordance with United Kingdom Generally
Accepted Accounting Practice (United
Kingdom Accounting Standards, comprising
FRS 101 ‘Reduced Disclosure Framework’
and applicable law).
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.
Directors’ Report (continued)
Bellway p.l.c. Annual Report and Accounts 2026 132GovernanceStrategic Report Accounts Other Information
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.
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 judgments 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 Company Financial
Statements, state whether United
Kingdom Accounting Standards,
comprising FRS 101 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;
andthat 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
Phil Hope
Group Finance Director and Company
Secretary
12 October 2026
Bellway p.l.c. Annual Report and Accounts 2026 133GovernanceStrategic Report Accounts Other Information
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 2026 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 United Kingdom Generally Accepted Accounting Practice; 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 2026 which comprise:
Group Parent Company
Group Income Statement for the year
thenended Company Balance Sheet as at 31 July 2026
Group Statement of Comprehensive Income
for the year then ended
Company Statement of Changes in Equity
asat 31 July 2026
Group Statement of Changes in Equity
asat31 July 2026
Related Company accounting policies
andnotes to the financial statements.
Group Balance Sheet as at 31 July 2026
Group Cash Flow Statement for the year
then ended
Related Group accounting policies, notes
tothe financial statements and information
relating to the subsidiaries, associates
andjoint ventures.
The financial reporting framework that has been applied in the preparation of the Group
financial statements is applicable law and UK adopted international accounting standards.
The financial reporting framework that has been applied in the preparation of the Parent
Company financial statements is applicable law and United Kingdom Accounting Standards,
including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted
Accounting Practice).
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 the Parent
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 2028 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 2028 and testing the forecast for arithmetical
accuracy. We obtained an understanding of each of management’s modelled scenarios,
including the base case, severe but plausible downside case and reverse stress test case.
The reverse stress test case had been prepared by management to demonstrate the point
at which the Group would extinguish cash reserves.
– 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 appropriate for the assessment of going concern.
Bellway p.l.c. Annual Report and Accounts 2026 134GovernanceStrategic Report Accounts Other Information
– Verifying the inputs into the cash flow forecasts, the debt facility terms, and reconciling
the liquidity position as at 31 July 2026. 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.
– Assessing the plausibility of the downside scenario 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, share buybacks 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 observation
We observed that the Group exceeded the forecasts that it was targeting in FY26.
We observed the significant liquidity that the Group has at its disposal that can be
utilisedifthe modelled severe but plausible downside was to materialise. The Group has
thefacilities disclosed in note 17 which includes details of the maturities of those facilities.
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 2028.
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 100% of profit before
taxation, 99% of revenue and 99% of total assets.
Key audit matters – Risk of inappropriate revenue recognition arising
fromsales transactions being recorded ahead of
performance obligations being satisfied;
– Risk of inappropriate cost of sales recognition; and
– Risk of inappropriate measurement of the legacy
building safety improvements provision.
Materiality – Overall Group materiality of £15.3m which represents
5% of Group underlying profit before taxation.
An overview of the scope of the Parent Company and Group audits
Tailoring the scope
We have followed a risk-based approach when developing our audit approach to obtain
sufficient appropriate audit evidence on which to base our audit opinion. We performed risk
assessment procedures, to identify and assess risks of material misstatement of the Group
financial statements and identified significant accounts and disclosures. When identifying
components at which audit work needed to be performed to respond to the identified risks
of material misstatement of the Group financial statements, we considered our
understanding of the Group and its business environment, the potential impact of climate
change, the applicable financial framework, the Group’s system of internal control at the
entity level, the existence of centralised processes, applications and any relevant internal
audit results.
Bellway Homes Limited is the primary trading entity within the Bellway Group, holding 98%
of the Group’s live developments. Bellway Homes Limited accounts for approximately 99%
of the revenue and assets, and 99% of the profit of the Group. As such, we identified two
components (Bellway Homes Limited and the Bellway p.l.c. Parent Company entity) as
individually relevant to the Group due to relevant events and conditions underlying the
identified risks of material misstatement of the Group financial statements being associated
with the reporting components.
Bellway p.l.c. Annual Report and Accounts 2026 135GovernanceStrategic Report Accounts Other Information
For those individually relevant components, we identified the significant accounts where
audit work needed to be performed at these components by applying professional
judgement, having considered the Group significant accounts on which centralised
procedures will be performed, the reasons for identifying the financial reporting component
as an individually relevant component and the size of the component’s account balance
relative to the Group significant financial statement account balance.
We then considered whether the remaining Group significant account balances not yet
subject to audit procedures, in aggregate, could give rise to a risk of material misstatement
of the Group financial statements. We selected no additional components of the Group
toinclude in our audit scope to address these risks, however, have performed analytical
procedures over these components to ensure there was no material misstatement.
In addition, we have tested consolidation journals and intercompany eliminations.
Having identified the components for which work will be performed, we determined the
scope to assign to each component.
Of the two components selected, we designed and performed audit procedures on the
entire financial information for both components (“full scope components”).
Our scoping to address the risk of material misstatement for each key audit matter is set
outin the key audit matters section of our report.
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 37 to 48 in the required Task Force
on Climate-related Financial Disclosures and on page 54 in the principal risks and
uncertainties. They have also explained their climate commitments on pages 29 to 49.
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 149 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 54. 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 land not under
development and land and work-in progress under development arising from the
requirements of the Future Homes Standard. For land not 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 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 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 on 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 the cost of sales margin recognition key audit matter. 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 judgement, 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)
Bellway p.l.c. Annual Report and Accounts 2026 136GovernanceStrategic Report Accounts Other Information
Risk Our response to the risk
Key observations
communicated to
the Audit Committee
How we scoped
ouraudit torespond
to therisk
Inappropriate
RevenueRecognition
Refer to the Audit Committee
Report (page 96); Accounting
policies (page 149); and Note
1 ofthe Group Financial
Statements (pages 150 and 151).
The Group has reported
revenues of £3,162.2m
(2025: £2,782.8m), with total
housing revenue of £3,145.1m
(2025: £2,768.3m).
Revenue is predominantly
recognised when the
performance obligation
issatisfied. We identified a
specific risk of fraud or error
that management may recognise
revenue before legal or practical
completion of a plot sale,
through inappropriate cut-off
or manual postings that record
revenue in an earlier period
than appropriate.
Included within Group revenue
is £123.0m (2025: £10.7m) of
revenue recognised over time,
relating to a small number
of bulk sale arrangements.
There is a risk that management
incorrectly applies over-time
revenue recognition criteria
tothese contracts.
We focused our procedures on
the occurrence of revenue.
Although the underlying risk
remains unchanged, the increase
in over time revenue during the
year led us to place greater audit
focus on whether the relevant
contracts met the criteria for
recognition over time.
Walkthrough and controls
– We performed walkthroughs of each significant class of revenue transaction which consist of private sales,
bulk sales, and housing association sales. As part of these procedures, we assessed the design effectiveness
of key transaction controls.
Timing of revenue recognition
– We applied data analytics which allowed us to evaluate full populations of housing revenue transactions
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 (including payments on account)
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 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 completion statements and evidence of cash receipts for private sales, and
practical completion statements and underlying agreements for housing association sales. 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 legal or practical
completion takes place.
– We reviewed contracts for bulk sale arrangements to assess the appropriateness revenue recognition under
IFRS 15, including evaluating key contractual terms, agreeing sales or stage of completion to third-party
evidence and assessing whether revenue was recognised at the appropriate stage of completion.
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 Chief Commercial
Officer, Finance Director and Company Secretary, Regional Chairs, Regional Finance Directors 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.
Based on our audit
procedures, we did not
identify any evidence
ofmaterial misstatement
in revenue recognised
inthe year.
We performed testing
over this risk area in
full scope components,
which represented 99%
of the risk amount.
Bellway p.l.c. Annual Report and Accounts 2026
137GovernanceStrategic Report Accounts Other Information
Risk Our response to the risk
Key observations
communicated to
theAuditCommittee
How we scoped
ouraudit torespond
to therisk
Inappropriate cost of
salesrecognition
Refer to the Audit Committee
Report (page 96); Accounting
policies (page 149); and Note
3 and 7 of the Group Financial
Statements (pages 154 and 157).
The Group has reported
– Cost of sales before net legacy
building safety expense of
£2,664.4m (2025: £2,326.0m)
– Land of £2,350.6m (2025:
£2,502.9m)
– Work-in-progress of £2,062.5m
(2025: £2,165.0m).
– Showhomes of £143.3m
(2025:£144.9m).
The site margin applied
to determine cost of sales
relates to plot sales requires
assumptions regarding forecast
revenue and costs to be made
which are subject to estimation
uncertainty. 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.
Macro-economic conditions
remain challenging and
therefore there continues
tobe a risk of manipulation
ofmargin assumptions.
We have simplified our naming
of the audit risk for the 2026
audit. However, our planned
procedures are largely
consistent with the prior year.
Walkthrough and controls
– We performed a walkthrough of management’s transaction controls in place covering the monitoring
andupdating of site valuations to assess design effectiveness.
– We attended and observed the valuation meetings at 7 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 assumptions 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 house price inflation
based on third party data. 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. Our audit
procedures focused on the completeness and accuracy of the most significant cost to complete categories
and on assessing whether forecast costs were consistent with the underlying contracted positions and
supporting evidence.
– 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, for a selection of the sites
inour sample, we specifically assessed whether the site would fall into the scope of the Future Homes
Standard based on the build timeline. For impacted sites, we considered whether the application of future
homes cost assumptions were appropriately reflected within the valuations.
– We assessed the historical accuracy of Group forecasting by comparing estimated site margins from
theprioryear to the latest valuation. We looked at the total margin movement over the past two years
andconsidered whether this provided contra-evidence on the reliability of the forecasts.
– We performed specific procedures to assess whether there were material movements recorded in the final
stages of site completion.
– We tested a sample of developments where the last plot was sold during FY26 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, we considered whether the impact
should be reflected in the year end financial statements.
– 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.
Other procedures
We performed analytical procedures to assess the total cost of sales balance based on margin expectations
disaggregated by trading division and individual sites.
Based on our audit
procedures, we are
satisfied the cost of sales
recognition is appropriate.
We performed testing
over this risk area in
full scope components,
which represented 99%
of the risk amount.
Independent Auditor’s Report to the Members of Bellway p.l.c. (continued)
Bellway p.l.c. Annual Report and Accounts 2026 138GovernanceStrategic Report Accounts Other Information
Risk Our response to the risk
Key observations
communicated to
the Audit Committee
How we scoped
ouraudit torespond
to therisk
Inappropriate recognition of
the legacy building safety
improvements provision
Refer to the Audit Committee
Report (page 98); Accounting
policies (page 149); and Notes
2 and 10 of the Consolidated
Financial Statements (pages
151to 153 and 159 to 160).
The Group has reported:
– Net Self Remediation Terms
(‘SRT’) and associated review
provision of £489.7m
(2025:£482.8m)
– Structural defects provision
of£28.0m (2025: £33.5m)
– Net legacy building safety
expense of £35.2m
(2025:£51.8m).
There is estimation uncertainty
in determining the most
likely costs which will be
required in order to remediate
affected properties based
on the progress of the
remediation programme.
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legacy building safety improvements provision 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.
Testing appropriateness of the valuation of land
– 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 and assessed significant movements. We also performed procedures to verify
arithmetical accuracy and completeness.
– 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 a sample of 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 cost estimates, through discussion with the
Group’s Building Safety Division. This was in order to understand and challenge the basis of estimates made
and to discuss the status of the most material provisions.
– We performed sensitivity analysis on outstanding costs in order to establish whether these could give rise
tomaterial variances.
– We assessed management’s calculation of discounting the provision based on comparison to third party
sources and assessed the timing of cash flows.
– We tested recoveries to supporting agreements and the cash receipts to confirm appropriately recognised.
– We further made inquiries of the Finance Director and Company Secretary and the Chief Commercial Officer.
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, 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,
wearesatisfied that
theresultant income
statement expense
andyear end provision
are fairly stated.
We performed testing
over this risk area in
full scope components,
which represented 100%
of the risk amount.
Bellway p.l.c. Annual Report and Accounts 2026
139GovernanceStrategic Report Accounts Other Information
In the prior year, our auditor’s report included a key audit matter in relation to inappropriate
valuation of land on sites not yet under development. In the current year, we consider that
the level of risk of land impairment has reduced compared to when this matter was first
identified as a key audit matter, primarily as a result of changes in UK Government planning
policy. Accordingly, we no longer considered this matter to be a key audit matter.
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 £15.3 million (2025: £14.5 million), which is
5%(2025: 5%) of underlying profit before taxation (2025: underlying profit before taxation).
We consider that underlying profit before taxation provides us with an appropriate basis
formateriality and is the most relevant for stakeholders, as it is a focus of both management
and investors and represents the operating performance for the business, excluding net
legacy building safety expense and other exceptional items.
We determined materiality for the Parent Company to be £3.3 million (2025: £3.2 million),
which is 0.5% (2025: 0.5%) of total assets. As the Parent Company is a holding company
withno trading of its own, we consider total assets the most appropriate basis to determine
materiality as the profits or revenues are not key performance indicators for the entity.
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% (2025: 75%)
of our planning materiality, namely £11.5 million (2025: £10.9 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 £2.3 million to £10.7 million (2025: £2.1 million
to£9.8 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 (2025: £0.7 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 133, including the Strategic Report and Governance section (including the
Directors’ Report) set out on pages 1 to 133, 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 those reports have been prepared in accordance with applicable
legal requirements;
– the information about internal control and risk management systems in relation to
financial reporting processes and about share capital structures, given in compliance
withrules 7.2.5 and 7.2.6 in the Disclosure Rules and Transparency Rules sourcebook
madeby the Financial Conduct Authority (the FCA Rules), is consistent with the financial
statements and has been prepared in accordance with applicable legal requirements; and
– information about the company’s corporate governance statement and practices and
about its administrative, management and supervisory bodies and their committees
complies with rules 7.2.2, 7.2.3 and 7.2.7 of the FCA Rules.
Independent Auditor’s Report to the Members of Bellway p.l.c. (continued)
Bellway p.l.c. Annual Report and Accounts 2026 140GovernanceStrategic Report Accounts Other Information
Matters on which we are required to report by exception
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; or
– the information about internal control and risk management systems in relation to
financial reporting processes and about share capital structures, given in compliance
withrules 7.2.5 and 7.2.6 of the FCA Rules.
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; or
– a Corporate Governance Statement has not been prepared by the company.
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 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 57;
– 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 57;
– Directors’ 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 132;
– Directors’ statement on fair, balanced and understandable set out on page 133;
– Board’s confirmation that it has carried out a robust assessment of the emerging
andprincipal risks set out on pages 53 to 56;
– The section of the annual report that describes the review of effectiveness of risk
management and internal control systems set out on page 101; and
– The section describing the work of the Audit Committee set out on pages 90 to 103.
Responsibilities of directors
As explained more fully in the Statement of Directors’ responsibilities set out on page 132,
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 Ministry of Housing, Communities and Local Government
inrelation to historical fire safety issues across the sector as well as equivalent
commitments in Wales and Scotland.
Bellway p.l.c. Annual Report and Accounts 2026 141GovernanceStrategic Report Accounts Other Information
– 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 Chief Commercial Officer 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 reviewed internal audit reports and
whistleblowing log reports for any indicators of non-compliance. 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 proposed class action filed in the Competition Appeal Tribunal, against seven
housebuilders including Bellway p.l.c.
– 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 2024.
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 6 years, covering the years ending 31 July 2021 to 31 July 2026.
– 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.
Simon O’Neill (Senior statutory auditor)
For and on behalf of Ernst & Young LLP, Statutory Auditor
Newcastle upon Tyne
12 October 2026
Independent Auditor’s Report to the Members of Bellway p.l.c. (continued)
Bellway p.l.c. Annual Report and Accounts 2026 142GovernanceStrategic Report Accounts Other Information
Accounts
In this section
Group Financial Statements 144
Accounting Policies 149
Notes to the Group Financial Statements 150
Company Financial Statements 177
Accounting Policies 179
Notes to the Company Financial Statements 179
Subsidiaries, Associates and Joint Ventures 184
Key to financial statement icons
Throughout the financial statements the below icons
are used and 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.
Bellway p.l.c. Annual Report and Accounts 2026
143GovernanceStrategic Report Accounts Other Information
Group Income Statement
for the year ended 31 July 2026
20262025
Note£m£m
Revenue
1
3, 162.2
2, 782.8
Cost of sales
3
(2, 685. 6)
(2,363. 4)
Analysed as:
Underlying cost of sales
(2, 664. 4)
(2,326. 0)
Adjusting item: net legacy building safety expense
2
(21.2)
(3 7.4)
Gross profit
476 .6
4 1 9.4
Other operating income
4a
126.3
69 .3
Other operating expenses
4a
(130 . 7)
(7 0.6)
Administrative expenses
(173. 1)
( 1 6 7.4)
Analysed as:
Underlying administrative expenses
(172.8)
(152. 0)
Adjusting item: other exceptional items
2
(0. 3)
(1 5 .4)
Operating profit
4b
299. 1
250 . 7
Finance income
16
8 .4
9.6
Finance expenses
16
(36. 7)
(3 6 . 9)
Analysed as:
Underlying finance expenses
(23.5)
(22. 5)
Adjusting item: net legacy building safety expense
2
(13.2)
(1 4.4)
Share of result of joint ventures
13
(0.6)
(1.5)
Analysed as:
Underlying share of result of joint ventures
0. 2
(1.5)
Adjusting item: share of joint venture net legacy
buildingsafety expense
2
(0.8)
–
Profit before taxation
2 70. 2
221.9
Income tax expense
6
(7 6 . 8)
(6 4.4)
Profit for the year*
193.4
1 5 7. 5
Earnings per ordinary share – Basic
5
166. 1p
132.8p
Earnings per ordinary share – Diluted
5
164.6p
131.8p
* All attributable to equity holders of the parent.
Adjusting items
20262025
Note£m£m
Gross profit
Gross profit per the Group Income Statement
476 .6
4 1 9.4
Adjusting item: net legacy building safety expense
2
21.2
3 7. 4
Underlying gross profit
4 9 7. 8
456.8
Operating profit
Operating profit per the Group Income Statement
299 . 1
250. 7
Adjusting item: net legacy building safety expense
2
21.2
3 7. 4
Adjusting item: other exceptional items
2
0. 3
1 5 .4
Underlying operating profit
320 .6
30 3.5
Profit before taxation
Profit before taxation per the Group Income Statement
2 7 0. 2
221.9
Adjusting item: net legacy building safety expense
2
35.2
51.8
Adjusting item: other exceptional items
2
0. 3
1 5 .4
Underlying profit before taxation
305. 7
289. 1
Profit for the year
Profit for the year per the Group Income Statement
193. 4
1 5 7. 5
Adjusting item: net legacy building safety expense
2
35.2
51.8
Adjusting item: other exceptional items
2
0. 3
1 5 .4
Adjusting item: income tax on exceptional items
2
(10 .2)
(1 5 .0)
Underlying profit for the year
218. 7
209. 7
Bellway p.l.c. Annual Report and Accounts 2026 144GovernanceStrategic Report Accounts Other Information
Group Statement of Comprehensive Income
for the year ended 31 July 2026
20262025
Note£m£m
Profit for the year
193.4
1 5 7. 5
Other comprehensive income
Items that will not be recycled to the income statement:
Remeasurement gains on defined benefit pension plans
22
1 .5
–
Income tax on other comprehensive income
6
(0 .4)
–
Other comprehensive income for the year, net of income tax
1 .1
–
Total comprehensive income for the year*
194. 5
1 5 7. 5
* All attributable to equity holders of the parent.
Bellway p.l.c. Annual Report and Accounts 2026 145GovernanceStrategic Report Accounts Other Information
Group Statement of Changes in Equity
at 31 July 2026
Capital
Issued Share redemption Other Retained Total
capital premium reserve reserves earnings equity
Group Note£m£m£m£m£m£m
Balance at 1 August 2024
1 4.8
183.2
2 0. 6
1.5
3,2 45.3
3 ,4 6 5 .4
Total comprehensive income for the year
Profit for the year
–
–
–
–
1 5 7. 5
1 5 7. 5
Other comprehensive income*
–
–
–
–
–
–
Total comprehensive income for the year
–
–
–
–
1 5 7. 5
1 5 7. 5
Transactions with shareholders recorded directly in equity:
Dividends on equity shares
20
–
–
–
–
(70.0)
(7 0.0)
Purchase of own shares
–
–
–
–
(1 .0)
(1 .0)
Shares issued
–
0. 3
–
–
–
0. 3
Credit in relation to share options and tax thereon
6,23
–
–
–
–
4.0
4.0
Total contributions by and distributions to shareholders
–
0.3
–
–
(6 7. 0)
(66 . 7)
Balance at 31 July 2025
14. 8
183.5
2 0.6
1.5
3,335.8
3,556.2
Total comprehensive income for the year
Profit for the year
–
–
–
–
193. 4
193. 4
Other comprehensive income*
–
–
–
–
1 .1
1 .1
Total comprehensive income for the year
–
–
–
–
194 .5
194 .5
Transactions with shareholders recorded directly in equity:
Dividends on equity shares
20
–
–
–
–
(8 3. 9)
(8 3.9)
Purchase of own shares
–
–
–
–
(5 .7)
(5 .7)
Shares issued
–
4. 9
–
–
–
4. 9
Credit in relation to share options and tax thereon
6,23
–
–
–
–
5 .7
5 .7
Share buyback programme and cancellation of shares
18,19
(0. 8)
–
0.8
–
(150 .9)
(150 .9)
Total contributions by and distributions to shareholders
(0.8)
4. 9
0.8
–
(234 . 8)
(229 .9)
Balance at 31 July 2026
1 4.0
188. 4
21.4
1.5
3,295.5
3,520.8
* An additional breakdown is provided in the Group Statement of Comprehensive Income.
Bellway p.l.c. Annual Report and Accounts 2026 146GovernanceStrategic Report Accounts Other Information
Group Balance Sheet
at 31 July 2026
20262025
Note£m£m
ASSETS
Non-current assets
Property, plant and equipment
11
48 .7
45 .5
Financial assets
12
49 .3
5 4.0
Equity accounted joint arrangements
12
–
0 .1
Deferred tax assets
6
1.2
2 .7
Retirement benefit assets
22
2 .5
0. 9
101. 7
103.2
Current assets
Inventories
7
4,614.0
4,838.1
Trade and other receivables
8
8 0 .1
81. 0
Corporation tax receivable
1 0.6
0.4
Cash and cash equivalents
15
2 8 7. 7
171.8
4,992. 4
5, 091.3
Total assets
5, 094. 1
5, 194. 5
LIABILITIES
Non-current liabilities
Interest-bearing loans and borrowings
15
1 30.0
1 3 0.0
Trade and other payables
9
79.0
9 0.5
Provisions
10
381. 1
350 .5
590 . 1
571. 0
Current liabilities
Trade and other payables
9
844 .4
901. 4
Provisions
10
138.8
1 65.9
983.2
1,067 .3
Total liabilities
1,573.3
1,638 .3
Net assets
3,520.8
3,556 .2
20262025
Note£m£m
EQUITY
Issued capital
18
1 4 .0
1 4. 8
Share premium
19
188.4
1 83.5
Capital redemption reserve
19
21.4
2 0.6
Other reserves
1.5
1 .5
Retained earnings
3,295.5
3,335. 8
Total equity
3,520.8
3,556 .2
Approved by the Board of Directors on 12 October 2026 and signed on its behalf by:
John Tutte Shane Doherty
Director Director
Registered number 1372603
Bellway p.l.c. Annual Report and Accounts 2026 147GovernanceStrategic Report Accounts Other Information
Group Cash Flow Statement
for the year ended 31 July 2026
20262025
Note£m£m
Cash flows from operating activities
Profit for the year
193.4
1 5 7. 5
Depreciation charge
11
5.9
5.5
Finance income
16
(8 . 4)
(9.6)
Finance expenses
16
3 6 .7
3 6.9
Share-based payment expense
23
5 .7
4 .6
Share of post-tax result of joint ventures
13
0.6
1.5
Income tax expense
6
76.8
6 4.4
Decrease/(increase) in inventories
2 24 .1
(101.9)
Decrease/(increase) in trade and other receivables
3.0
(4 .4)
(Decrease)/increase in trade and other payables
(94 . 8)
74 .7
Decrease in provisions
(9.7)
(7 .2)
Cash from operations
433.3
222. 0
Interest paid
(1 0 . 9)
(6 .7)
Income tax paid
(85.3)
(7 6 .1)
Net cash inflow from operating activities
3 3 7.1
139.2
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired
–
(4.6)
Acquisition of property, plant and equipment
(6 .3)
(11.9)
Proceeds from sale of property, plant and equipment
0 .1
–
Increase in loans to joint ventures
(1 . 0)
(6. 5)
Repayment of loans by joint ventures
11. 1
3. 3
Dividends from joint ventures
12
–
3 .1
Interest received
3.2
3 .7
Net cash inflow/(outflow) from investing activities
7.1
(12.9)
20262025
Note£m£m
Cash flows from financing activities
Payment of lease liabilities
17
(3.8)
(3. 3)
Proceeds from the issue of share capital on exercise of
share options
4.9
0. 3
Purchase of own shares
(5 .7)
(1 .0)
Share buyback programme
18
(139 .8)
–
Dividends paid
20
(8 3 . 9)
(7 0.0)
Net cash outflow from financing activities
(228 .3)
(74.0)
Net increase in cash and cash equivalents
15
1 15.9
52.3
Cash and cash equivalents at beginning of year
15
171.8
119 . 5
Cash and cash equivalents at end of year
15
2 8 7.7
171.8
Bellway p.l.c. Annual Report and Accounts 2026 148GovernanceStrategic Report Accounts Other Information
Accounting Policies
Basis of preparation
Bellway p.l.c. (the Company) is a company incorporated in England and Wales.
Basis of consolidation
The Group financial statements incorporate the financial statements of the Company
and entities controlled by the Company made up to 31 July. The Company controls an
entity when it is exposed to, or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through its power over the entity.
In assessing control, potential voting rights that are currently exercisable or
convertible are taken into account. The financial statements of these entities are
included in the consolidated financial statements from the date that control
commences until the date that control ceases.
Joint arrangements are those entities over whose activities the Group has joint
control, established by contractual agreement. A joint arrangement can take
two forms:
(i) Joint venture – these entities are included in the Group financial statements using
the equity method of accounting.
(ii) Joint operation – the Group’s share of the assets, liabilities and transactions of such
entities are accounted for directly as if they were assets, liabilities and transactions
of the Group.
The Group financial statements have been prepared and approved by the Directors
in accordance with UK adopted International Accounting Standards (IAS) and with the
requirements of the Companies Act 2006 as applicable to companies reporting under
those standards.
Information related to the Group undertakings are set out in the Subsidiaries,
associates and joint ventures section of the financial statements.
Other financial statement considerations
In preparing the Group financial statements, management has considered the impact of
climate change, and the possible impact of climate-related and other emerging business
risks. A rigorous assessment of the impact of climate-related risks has been performed,
and disclosed in the Strategic Report, in accordance with the recommendations of the
Task Force on Climate-related Financial Disclosures. This included an assessment of
inventories and how they could be affected by measures taken to address global warming.
No issues were identified that would materially impact the carrying values of either the
Group’s assets or liabilities, or have any other material impact on the financial statements.
The preparation of financial statements requires management to make judgements,
estimates and assumptions that affect the application of policies and reported amounts
of assets and liabilities, income and expenses. The estimates and associated assumptions
are based on historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making the
judgements about the carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates.
The accounting policies set out within the notes to the financial statements have been
applied consistently to all periods presented in these consolidated financial statements.
Going concern
The Group’s business activities, together with the factors likely to affect its future
development, performance and position, are set out in the Chief Executive’s Market
and Operational Review on pages 11 to 14. The financial position of the Group, its cash
flows, liquidity position and borrowing facilities are described in the Chief Financial
Officer’s Review on pages 15 to 17 and the Directors’ Report on pages 130 to 133.
The Risk Management section on pages 50 to 52 sets out the Group’s policies and
processes for managing its capital, financial risk, and its exposure to credit, liquidity,
interest rate and housing market risk.
The Group’s activities are financed principally by a combination of ordinary shares and
cash in hand less debt. At 31 July 2026, Bellway had net cash of £157.7 million
2
(note 15),
having generated a net increase in cash and cash equivalents of £115.9 million (note 15)
during the year, including £433.3 million of cash from operations.
The Group had bank facilities of £400 million at 31 July 2026, which expire in
December 2030. Furthermore, in February 2021 the Group issued sterling US Private
Placement (USPP) for a total amount of £130.0 million, as part of its ordinary course
of business financing arrangements, which has maturity dates in 2028 and 2031.
In aggregate, the Group had committed debt lines of £530 million at 31 July 2026,
of which £400 million are undrawn. The Group has operated within all its debt
covenants throughout the year, and covenant compliance was considered as part
of the going concern assessment period to 31 July 2028.
Including committed debt lines and cash, Bellway had access to total funds of
£687.7 million, along with net current assets (excluding cash) of £3,721.5 million
at 31 July 2026, providing the Group with appropriate liquidity to meet its current
liabilities as they fall due.
The Group’s internal forecasts have been regularly updated, incorporating our actual
experience along with our expected future outturn including announced returns
to shareholders. In relation to climate risks, and in particular the requirement of the
Group to reduce carbon emissions, the going concern assessment is not considered
to be materially affected by the Future Homes Standard. The latest available base
forecast has been sensitised, setting out the Group’s resilience to the principal risks
and uncertainties in the most severe but plausible scenario.
This sensitivity includes the following principal assumptions:
– Private completions in H1 FY27 are supported by the forward order book. In the
12 months to 31 January 2028, private completions reduce by around 50% compared
to the 12 month pre-stress peak. For this scenario, we have used the peak volumes
achieved in FY22. This is followed by a gradual recovery based on the lower
base position.
– Private average selling price in H1 FY27 remains in line with internal forecasts due
to the forward order book position. In the 12 months to 31 January 2028, 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.
Bellway p.l.c. Annual Report and Accounts 2026 149GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements
Basis of preparation
The Group has performed an initial impact assessment of IFRS 18. Given the Group’s existing
presentation structure and KPIs, the initial application of the standard is not expected to
have a material quantitative impact on the consolidated financial statements. The primary
impacts will be qualitative, resulting in reclassifications within the Statement of Profit or
Loss to meet the new mandatory subtotal requirements and additional narrative disclosures
within the notes.
Performance for the year
1. Revenue
Revenue recognition
Revenue is measured at the fair value of consideration received or receivable,
net of incentives.
Revenue from housing sales and land sales
Revenue is recognised in the income statement at a point in time when the
performance obligation, being the transfer of a completed dwelling or land to
a customer, has been satisfied. This is when legal title is transferred.
The Group enters into contracts for multiple completed dwellings with housing
association and investor customers. The Group reviews these contracts on a contract-
by-contract basis and determines the appropriate revenue recognition based on the
specific terms of each contract.
Where a contract transfers both land and housing on legal completion (turnkey and
plot sale contracts’ which typically represents around one third of multiple dwelling
contracts) there is one performance obligation and revenue is recognised in the
income statement at a point in time when the homes are build complete and all
material contractual obligations have been fulfilled. This is when legal title
is transferred.
Where a contract transfers legal title of land once foundations are in place (design
and build’ contracts) and separately transfers the housing dwellings when they are
build complete, there is a judgement as to whether the sale of land is a separate
performance obligation for the purposes of revenue recognition and consequentially
whether revenue should be recognised over time or on a point in time basis for the
units. Based on the contractual terms in the majority of such contracts, notably those
that enable the Group to retain control over the land regardless of the transfer of title,
the Group has determined that these contracts include one performance obligation
which is appropriately recognised at a point in time, when the homes are build
complete and all material contractual obligations have been fulfilled.
Going concern (continued)
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 2028 for the going
concern assessment, but extended to 31 July 2030 for the Directors’ long-term
viability assessment. In the 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. 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 Directors consider that the Group is well placed to manage business and financial
risks in the current economic environment. Consequently, the Directors are confident
that the Group and Company will have sufficient funds to continue to meet its liabilities
as they fall due for the period to 31 July 2028, aligning with the first year end after the
minimum 12 month assessment period, and have therefore prepared the financial
statements on a going concern basis.
Effect of new standards and amendments effective for the first time
The Group adopted and applied the following amendment in the year, which did not have
a material effect on the financial statements:
– IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’ (amendments) – lack
of exchangeability.
Standards and amendments in issue but not yet effective
At the date of authorisation of these financial statements there were a number of standards
and amendments which were in issue but not yet effective. These have not been applied
in these financial statements and are not expected to have a material effect when adopted.
In April 2024, the IASB issued IFRS 18 ‘Presentation and Disclosure in Financial Statements’,
which is effective for reporting periods beginning on or after 1 January 2027. The standard
sets out new requirements for:
– Classification: Categorising income and expenses into operating, investing, financing,
income taxes, and discontinued operations.
– Management-Defined Performance Measures (MPMs): Requiring specific disclosures
for certain non-GAAP measures presented outside the financial statements.
– Aggregation and Disaggregation: Enhanced principles for grouping information in both
the primary statements and the notes.
Bellway p.l.c. Annual Report and Accounts 2026 150GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
1. Revenue (continued)
Revenue recognised over time
The Group recognises revenue in the income statement over time for contracts
where the control of land is irrevocably transferred to the customer before or
during construction. Revenue is recognised from the point that control is irrevocably
transferred to the customer.
Where revenue is recognised over time and the outcome of the contract can be
estimated reliably, it is recognised based on the stage of completion of the contract
at the balance sheet date. This is usually by reference to surveys of work performed
to the balance sheet date. Variations to such contracts are included in revenue
to the extent that they have been agreed with the customer. Where the outcome
of such a contract cannot be measured reliably, revenue is recognised to the extent
of costs incurred.
Incentives
Sales incentives are substantially cash in nature. Cash incentives are recognised as
a reduction in housing revenue by the cost to the Group of providing the incentive.
Segmental analysis
The Executive Board (the Chief Operating Decision Maker as defined in IFRS 8
‘Operating Segments’) regularly reviews the Group’s performance and balance sheet
position at both a consolidated and divisional level. Each division is an operating
segment as defined by IFRS 8 in that the Executive Board assesses performance
and allocates resources at this level. All of the divisions have been aggregated
in to one reporting segment on the basis that they share similar economic
characteristics including:
– National supply agreements are in place for key inputs including materials.
– Debt is raised centrally and the cost of capital is the same at each division.
– Sales demand at each division is subject to the same macroeconomic factors,
such as mortgage availability and government policy.
Additional information on average selling prices and the unit sales split between
private and social has been included in the Chief Financial Officer’s Review on pages
15 to 17. The Board does not, however, consider these categories to be separate
reportable segments as they review the entire operations at a consolidated and
divisional level when assessing performance and making decisions about the allocation
of resources.
Revenue from contracts with customers
An analysis of the Group’s revenue is as follows:
Housing completions
Revenue
2026 2025 2026 2025
Number Number £m £m
Housing – private
7,631
6,924
2,733.2
2,426.4
Housing – social
2,064
1,825
411.9
341.9
Total housing
9,695
8,749
3,145.1
2,768.3
Non-housing revenue
–
–
17.1
14.5
Total
9,695
8,749
3,162.2
2,782.8
Included within Group revenue is £123.0 million (2025: £10.7 million) of revenue from
construction contracts where revenue is recognised over time. Where revenue is recognised
over time, the related completion numbers are stated on an equivalent-unit basis, reflecting
the proportion of total contract revenue recognised in the year.
2. Net legacy building safety expense and other exceptional items
Exceptional items are those which, in the opinion of the Board, are material by size
or nature and of such significance that they require separate disclosure on the face
of the income statement.
Exceptional items
A major judgement which the Directors consider could have a significant effect on
the financial statements when applying the Group’s accounting policies is whether
items should be treated as adjusting and disclosed separately on the face of the
primary statements. The Directors assessed each possible exceptional item against
a framework incorporating the Group’s accounting policy and the accounting
requirements of IAS 1 ‘Presentation of Financial Statements’ relating to the separate
disclosure of material items of income or expense.
The Directors considered that the net legacy building safety expense and other
exceptional items satisfied the requirements to be separately disclosed on the face
of the income statement.
Bellway p.l.c. Annual Report and Accounts 2026 151GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
2. Net legacy building safety expense and other exceptional items
(continued)
Profit before taxation for the years ended 31 July 2026 and 31 July 2025 has been arrived
at after recognising the following items in the income statement:
2026
SRT and Total net Other Total
associated Structural legacy building exceptional adjusting
review defects safety expense items items
£m £m £m £m £m
Provisions (note 10)
37.4
(6.2)
31.2
–
31.2
Reimbursement
assets (note 10)
(10.0)
–
(10.0)
–
(10.0)
Net cost of sales
27.4
(6.2)
21.2
–
21.2
Administrative
expenses
–
–
–
0.3
0.3
Finance expenses
(notes 10, 16)
12.0
1.2
13.2
–
13.2
Share of joint
venture net legacy
building safety
expense (note 13)
0.8
–
0.8
–
0.8
Total net legacy
building safety
expense and other
exceptional items
40.2
(5.0)
35.2
0.3
35.5
2025
SRT and Total net legacy Other Total
associated Structural building safety exceptional adjusting
review defects expense items items
£m £m £m £m £m
Provisions
50.9
(13.3)
37.6
–
37.6
Reimbursement
assets
(0.2)
–
(0.2)
–
(0.2)
Net cost of sales
50.7
(13.3)
37.4
–
37.4
Administrative
expenses
–
–
–
15.4
15.4
Finance expenses
(note 16)
12.6
1.8
14.4
–
14.4
Total net legacy
building safety
expense and other
exceptional items
63.3
(11.5)
51.8
15.4
67. 2
The income tax rate applied to the exceptional items in the income statement is the Group’s
standard rate of 29.0% (2025: 29.0%), inclusive of corporation tax and Residential Property
Developer Tax (RPDT), adjusted for the impact of non-deductible items.
SRT and associated review
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 SRT with MHCLG. Under the terms of the SRT,
developers have agreed to identify and remediate, life-critical fire safety defects in
residential buildings over 11 metres in height that they have developed or refurbished since
April 1992. The Group contractually committed to remediate its legacy buildings in both
Wales and Scotland by signing the Pact with The Welsh Ministers (the ‘Pact’) in May 2023
and the Scottish Safer Buildings Accord in July 2023.
Signing the SRT has led to improved clarity on the standards required for internal and
external remediation, including Publicly Available Specification (PAS) 9980:2022, which
is the code of practice for Fire Risk Appraisals of External Wall construction (FRAEW).
Buildings are deemed to be assessed under the requirements of the SRT when a qualifying
assessment has been approved by the MHCLG. This requires the completion of both a
FRAEW and a Fire Safety Assessment (FSA).
In total, for the year ended 31 July 2026 Bellway set aside a net exceptional pre-tax expense
of £40.2 million (2025: £63.3 million), in relation to the SRT and associated review. Of this
expense, a net £27.4 million (2025: £50.7 million) is recognised in cost of sales, £0.8 million
(2025: nil) is recognised in the share of result of joint ventures and an adjusting finance
expense of £12.0 million (2025: £12.6 million) in relation to the unwinding of the discount
of the provision to present value. The net expense recognised in cost of sales includes an
expense of £83.4 million (2025: £81.6 million) relating to cost estimate increases, which
is offset by provision releases of £39.8 million (2025: £30.9 million) and £6.2 million credit
(2025: £0.2 million expense) following an increase (2025: decrease) in discount rates during
the year (note 10). The net exceptional cost of sales expense includes cost recoveries
of £10.0 million (2025: £0.2 million), across several sites, which have been pursued for
several years.
The total amount Bellway has set aside in relation to the SRT and associated review since
2017 is £722.6 million (2025: £673.2 million). 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.
Cost estimates have been reviewed and updated in the year based on the latest scopes
following surveys undertaken, tendered works and progress with remediation. These cost
estimates are based on our extensive experience to date, using analysis of previously
tendered works, costs to date on similar developments and prudent, professional estimates
based on knowledge of known issues.
Bellway p.l.c. Annual Report and Accounts 2026 152GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
2. Net legacy building safety expense and other exceptional
items(continued)
The provision calculation uses the expected timings of cash outflows which are adjusted
for future estimated cost inflation in accordance with the Build Cost Information Service
(BCIS) index, a leading provider of cost and price information to the construction industry.
The provision is discounted back to a present value using UK gilt rates with maturities which
reflect the expected timing of cash outflows. The unwinding of this discount is charged
through the income statement as an adjusting finance expense. The majority of the cash
outflow is expected to be over the next five years, although there will be some residual
expenditure beyond this. The anticipated timing reflects the complex issues around
remediation including identifying the works required, design and planning obligations,
interpretation of the PAS 9980:2022, liaison and negotiations with building owners,
appointment of contractors and time taken to obtain access licences.
As at 31 July 2026, and including those buildings that have been awarded an application
by the Building Safety Fund or ACM Funds, 59% of Bellway’s legacy buildings (2025: 33%)
have work either complete or underway.
Total recoveries recognised since 2017 are £90.5 million (2025: £80.5 million). Reimbursement assets
of £2.2 million (2025: £0.1 million) remained outstanding at the year end (note 8).
Structural defects
The Building Safety Act 2022 introduced an amendment to the limitation period applicable
to claims under the Defective Premises Act 1972 retrospectively increasing the liability
period for structural defects in all dwellings built prior to 28 June 2022 from 6 years to
30 years.
Due to the change in legislation establishing a retrospective legal obligation for structural
defects in dwellings, this is seen as a highly unusual event and is the primary reason the
structural defects provision should be treated as an adjusting item.
As previously reported, the Group has identified a structural defect relating to the
reinforced concrete frame at an historical high-rise apartment scheme in Greenwich,
London and a mid-rise apartment scheme in Slough.
The increase in the limitation period means Bellway has a legal obligation for undertaking
the remedial works at both the Greenwich and Slough sites.
During the year, an independent design was received for the Slough scheme. The design
included modelling which indicated that the structural defect is limited to a single area of the
building. As a result, the remediation strategy is now expected to be significantly less invasive
than previously anticipated, leading to a reduction in the estimated cost. The revised cost
estimate is based on a third-party tender and reflects management’s expected scope
of works.
In total, for the year ended 31 July 2026 Bellway recognised an exceptional pre-tax credit of
£5.0 million (2025: £11.5 million), in relation to the structural defects. Of this, a credit of £6.2 million
(2025: £13.3 million) is recognised in cost of sales and an adjusting finance expense of £1.2 million
(2025: £1.8 million) in relation to the unwinding of the discount of the provision to present
value. The amount recognised in cost of sales includes a credit of £5.8 million (2025: £19.5 million)
relating to provisions releases and £0.4 million (2025: £0.2 million expense) following an increase
(2025: decrease) in discount rates during the year (note 10).
Cost estimates are based on expert third-party reports and reflects management’s
expected scope of works.
The provision calculation uses the expected timings of cash outflows which are adjusted for
future estimated cost inflation in accordance with the BCIS index. The provision is discounted
back to a present value using UK gilt rates with maturities which reflect the expected timing
of cash outflows. The unwinding of this discount is charged through the income statement
as an adjusting finance expense.
We are actively seeking recoveries in relation to the structural defects identified, but as
these are not virtually certain at the balance sheet date, no reimbursement assets have
been recognised.
The cash outflow is expected to be over the next three years.
Other exceptional items
In the current year, there is an expense of £0.3 million (2025: £15.4 million) for the final costs
incurred relating to the CMA market investigation. These costs have been classified as
exceptional given their size and nature and for consistency of presentation with costs in
the prior year. The amount recognised in the year ended 31 July 2025 included a voluntary
commitment to the CMA which was paid during the year ended 31 July 2026.
Bellway p.l.c. Annual Report and Accounts 2026 153GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
3. Cost of sales recognition
Cost of sales recognition
Cost of sales is recognised for completed house sales as an allocation of the latest
whole site/phase gross margin which is an output of the site/phase valuation.
These valuations, which are updated at frequent intervals throughout the life of the
site/phase, use actual and forecast selling prices, land costs and construction costs
and are sensitive to future movements in both the estimated cost to complete and
expected selling prices. Forecast selling prices are inherently uncertain due to
changes in market conditions. This is a key estimate made in the financial statements.
To determine the amount of cost of sales that the Group should recognise on its sites/
phases in the year, the Group needs to allocate site/phase wide costs between all
plots, both those already sold, and those plots to be sold in future periods. The Group
generally allocates site/phase wide costs based on expected total revenue unless this
does not reflect an appropriate apportionment of the costs. It is also necessary to
estimate costs to complete on such sites/phases. In addition, the Group makes
estimates in relation to future sales prices on the site/phase. The Group has a number
of internal controls to assess and review the reasonableness of estimates made.
If housing gross margin decreased by 200 basis points, it is estimated that the
quantum of housing cost of sales would increase by around 2.4%.
4. Operating profit
4a. Part-exchange properties
Part-exchange properties
The purchase and subsequent sale of part-exchange properties is an activity
undertaken in order to achieve the sale of a new property. The original sale of private
housing is recognised at the fair value of the part-exchange property plus the cash
received or receivable (note 1). The fair value of the part-exchange property is equal
to the amount assessed by external valuers. The onward sale of a part-exchange
property is recognised at the fair value of consideration received or receivable.
As it is not considered a principal activity of the Group the income and expenses
associated with this are recognised in other operating income and other operating
expenses. Income is recognised in the income statement at a point in time when the
performance obligations have been satisfied. This is when legal title is transferred.
All other operating income relates to the sale of part-exchange properties and all other
operating expenses relate to the associated fair value of the part-exchange properties less
costs to sell.
4b. Operating profit is stated after charging
2026 2025
£m £m
Employee costs (including Directors) (note 21)
234.2
214.7
Depreciation of owned property, plant and equipment (note 11)
2.8
2.2
Depreciation of right-of-use assets (note 11)
3.1
3.3
Expenses related to short-term and low value leases
12.5
12.6
4c. Auditor’s remuneration
The remuneration paid to Ernst & Young LLP, the Group’s external auditor, is as follows:
2026 2025
£000 £000
Fee payable for the audit of the Company and consolidated
financial statements
107
93
Amounts receivable by the auditor and its associates in respect of:
Fees payable for the audit of the Company’s subsidiaries
609
517
Fees payable for the pension scheme audit
26
25
Additional audit fees agreed in relation to FY25
95
–
Total audit fees
837
635
Non-audit related fees
–
99
Total fees related to the Company and its subsidiaries
837
734
Non-audit related fees in the prior year comprise services relating to the aborted acquisition
of Crest Nicholson Holdings plc.
Details of the Group’s policy on the use of the Company’s auditor for non-audit services
and auditor independence are set out in the Audit Committee Report on pages 90 to 103.
In addition to the remuneration paid to the Company’s auditor for services related to the
Company and its subsidiaries, the auditor received the following remuneration from joint
ventures in which the Group participates:
2026 2025
£000 £000
Fees payable for the audit of the Group’s joint ventures pursuant
to legislation
54
37
Total fees related to joint ventures
54
37
Bellway p.l.c. Annual Report and Accounts 2026 154GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
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:
Weighted Weighted
average average
number of Earnings number of
Profit for ordinary per Profit for ordinary Earnings
the year shares share the year shares per share
2026 2026 2026 2025 2025 2025
£m Number p £m Number p
For basic earnings
per ordinary share
193.4
116,447,219
166.1
15 7.5
118,644,063
132.8
Dilutive effect of
options and awards
1,054,191
(1.5)
889,652
(1.0)
For diluted earnings
per ordinary share
193.4
117,501,410
164.6
157.5
119,533,715
131.8
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:
Weighted Weighted
average average
Underlying number of Underlying Underlying number of Underlying
profit for ordinary earnings profit for ordinary earnings
the year shares per share the year shares per share
2026 2026 2026 2025 2025 2025
£m Number p £m Number p
For basic
underlying
earnings per
ordinary share
218.7
116,447,219
187.8
209.7
118,644,063
176.7
Dilutive effect
of options
and awards
1,054,191
(1.7)
889,652
(1.3)
For diluted
underlying
earnings per
ordinary share
218.7
117,501,410
186.1
209.7
119,533,715
175.4
6. Taxation
Taxation
The charge for taxation is based on the result for the year and takes into account
current and deferred taxation. The charge is recognised in the income statement
except to the extent that it relates to either items recognised in equity in which case
it is recognised in equity or other comprehensive income or expense in which case
it is recognised in other comprehensive income or expense.
Deferred taxation
Deferred taxation is provided for all temporary differences between the carrying
amounts of assets and liabilities in the financial statements and the corresponding
tax bases. The amount of deferred tax provided is based on the expected manner
of realisation or settlement of the carrying amount of assets and liabilities, using tax
rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future
taxable profits will be available against which the asset can be utilised. Deferred tax
assets are reviewed at each balance sheet date and reduced to the extent that it is
no longer probable that the related tax benefit will be realised.
Bellway p.l.c. Annual Report and Accounts 2026 155GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
6. Taxation (continued)
6a. Income tax recognised in the income statement
2026 2025
£m £m
Current tax expense/(income):
UK corporation tax
67.6
62.1
Residential property developer tax
10.6
9.1
Adjustments in respect of prior years
(2.5)
(2.8)
75.7
68.4
Deferred tax expense/(income):
Origination and reversal of temporary differences
0.8
(4.2)
Adjustments in respect of prior years
0.3
0.2
1.1
(4.0)
Total income tax expense in the income statement
76.8
64.4
6b. Factors affecting the income tax charge for the year
The effective tax expense is 28.4% of profit before taxation (2025: 29.0%). Both the standard
tax rate and effective tax rate include RPDT. The differences between the effective tax rate
and the standard tax rate are explained below:
2026 2026 2025 2025
% £m % £m
Reconciliation of effective tax rate:
Profit before taxation
270.2
221.9
Tax calculated at UK income tax rate
29.0
78.4
29.0
64.4
Non-taxable income and enhanced
deductions
0.2
0.6
1.2
2.6
Adjustments in respect of prior years
– current tax
(0.9)
(2.5)
(1.3)
(2.8)
Adjustments in respect of prior years
– deferred tax
0.1
0.3
0.1
0.2
Effective tax rate and tax expense
for the year
28.4
76.8
29.0
64.4
It is currently expected that the Group’s standard rate of tax, including RPDT, for the year
ending 31 July 2027 will be 29%.
6c. Tax recognised in equity and other comprehensive expense
2026 2025
£m £m
Deferred tax recognised directly in equity and other
comprehensive expense:
Expense relating to remeasurements on the defined benefit
pension scheme
(0.4)
–
Expense relating to equity-settled transactions
–
(0.6)
6d. Deferred Taxation
The following are the deferred tax assets/(liabilities) recognised by the Group and the
movements thereon during the current and prior year:
Retirement Share-
Capital benefit based Unutilised
allowances assets payments Inventory tax losses Total
£m £m £m £m £m £m
At 1 August 2024
(1.6)
(0.2)
1.8
(3.4)
2.7
(0.7)
Income
statement
credit/(expense)
0.3
(0.1)
1.5
1.5
0.8
4.0
Expense to
equity
–
–
(0.6)
–
–
(0.6)
At 31 July 2025
(1.3)
(0.3)
2.7
(1.9)
3.5
2.7
Income
statement
(expense)/credit
(0.5)
–
(0.4)
0.6
(0.8)
(1.1)
Expense to
other
comprehensive
income
–
(0.4)
–
–
–
(0.4)
At 31 July 2026
(1.8)
(0.7)
2.3
(1.3)
2.7
1.2
The carrying amount of the gross deferred tax assets are reviewed at each balance sheet
date and are recognised to the extent that there will be sufficient taxable profits to allow
the asset to be recovered.
The deferred tax assets/(liabilities) held by the Group are valued at the substantively
enacted corporation tax and RPDT rates totalling 29% that will be effective when they
are expected to be realised.
Bellway p.l.c. Annual Report and Accounts 2026 156GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
7. Inventories
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost, in relation to
work-in-progress and showhomes, comprises direct materials and, where applicable,
direct labour costs and those overheads, not including any general administrative
overheads, that have been incurred in bringing the inventories to their present location
and condition. Overhead costs include, but are not limited to, roads and other
infrastructure costs required for a site and local contributions, physical works required
under planning permissions granted for our developments and associated professional
fees. Net realisable value represents the estimated selling price less all estimated
costs of completion and overheads.
Land comprises: land held for development; options purchased in respect of land;
investments in land without the benefit of planning consent; and promotion
agreements in respect of land without the benefit of planning consent.
Land held for development, including land in the course of development until legal
completion of the sale of the asset, is initially recorded at cost. Regular reviews are
carried out to identify any impairment in the value of the land by comparing the total
estimated selling prices less estimated selling expenses against the book cost of the
land plus estimated costs to complete. A provision is made for any irrecoverable
amounts. Where, through deferred payment terms, the fair value of land purchased
differs from the amount that will subsequently be paid in settling the liability, the
difference is charged as a finance expense in the income statement over the period
to settlement.
Options purchased in respect of land are capitalised initially at cost. Regular reviews
are carried out for impairment in the value of these options and provisions made
accordingly to reflect loss of value. The impairment reviews consider the period
elapsed since the date of purchase of the option given that the option contract has
not been exercised at the review date. Further, the impairment reviews consider
the remaining life of the option, taking account of any concerns over whether the
remaining time available will allow a successful exercise of the option. The carrying
cost of the option at the date of exercise is included within the cost of land purchased
as a result of the option exercise.
Investments in land without the benefit of planning consent, either through the
purchase of land or non-refundable deposits paid on land purchase contracts subject
to planning consent, are included initially at cost. Regular reviews are carried out for
impairment in the values of these investments and provision made to reflect any
irrecoverable element. The impairment reviews consider the existing use value of the
land and assess the likelihood of achieving planning consent and the value thereof.
Promotion agreements in respect of land without the benefit of planning consent
comprise initial costs of entering into the agreements. These costs are capitalised
initially at cost. Regular reviews are carried out for impairment in the values
of these costs incurred and provisions made accordingly to reflect loss of value.
The impairment reviews consider the likelihood of securing planning permission, the
successful marketing of the site and the remaining life of the promotion agreement.
Carrying amount of land held for development and work-in-progress
Inventories are carried at the lower of cost and net realisable value. Net realisable
value represents the estimated selling price (in the ordinary course of business) less
all estimated costs of completion and overheads. Valuations of site/phase work-in-
progress are carried out at regular intervals and estimates of the cost to complete
a site/phase and estimates of anticipated revenues are required to enable a
development profit to be determined. Management are required to employ judgement
in estimating the profitability of a site/phase and in assessing any impairment
provisions which may be required. If a 10% increase was applied to the inventories
net realisable provision, this would not have a material effect on the carrying value
of work-in-progress and land held for development at the year end.
For both the years ended 31 July 2026 and 31 July 2025, a full review of inventories has
been performed and write downs have been made where cost exceeds net realisable
value. Estimated selling prices have been reviewed on a site by site/phase by phase
basis and have been amended based on local management and the Board’s
assessment of current market conditions.
2026 2025
£m £m
Land
2,350.6
2,502.9
Work-in-progress
2,062.5
2,165.0
Showhomes
143.3
144.9
Part-exchange properties
57.6
25.3
4,614.0
4,838.1
Inventories of £2,596.1 million were expensed in the year (2025: £2,264.0 million).
In the ordinary course of business, inventories have been written down by a net £6.6 million
in the year (2025: £1.2 million).
Land with a carrying value of £185.4 million (2025: £241.6 million) was used as security for
land payables (note 9).
Land includes £1,750.9 million (2025: £1,893.2 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 2027
are included within the carrying value of inventories as at 31 July 2026 and 31 July 2025
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.
Bellway p.l.c. Annual Report and Accounts 2026 157GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
8. Trade and other receivables
Trade and other receivables
Trade and other receivables are stated at their fair value at the date of initial
recognition and subsequently at amortised cost less allowances for impairment.
Amounts recoverable on certain social housing contracts where revenue is recognised
over time are included in trade receivables to the extent that they have been invoiced,
or if not they are included within prepayments and accrued income, and are stated as
the amount due less any foreseeable losses, equal to the lifetime expected credit loss.
2026 2025
Current receivables £m £m
Trade receivables
28.9
26.3
Other receivables
31.9
39.5
Prepayments and accrued income
19.3
15.2
80.1
81.0
The Group assesses the ageing of trade receivables in accordance with the policy on page
52. None of the trade receivables are past their due dates (2025: £nil), and are therefore all
rated as low risk.
Other receivables includes £9.7 million (2025: £24.2 million) in relation to VAT recoverable
and £2.2 million (2025: £0.1 million) in relation to reimbursement assets (notes 2, 10).
The Group has assessed expected credit losses and the loss allowance for trade and other
receivables as immaterial.
9. Trade and other payables
Trade and other payables
Trade and other payables on normal terms are not interest-bearing and are stated at
their nominal value. Trade payables on deferred terms, most notably in relation to land
purchases, are recorded initially at the fair value of all expected future payments.
The discount to nominal value is amortised over the period to settlement and charged
to finance expenses.
Leases
The lease liability is initially measured at the present value of the remaining lease
payments, discounted using the Group’s incremental borrowing rate. The lease term
comprises the non-cancellable period of the contract, together with periods covered
by an option to extend the lease where the Group is reasonably certain to exercise
that option. Subsequently, the lease liability is measured by increasing the carrying
amount to reflect interest on the lease liability, and reducing it by the lease payments
made. The lease liability is remeasured when the Group changes its assessment of
whether it will exercise an extension or termination option.
Right-of-use assets are initially measured at cost, comprising the initial measurement
of the lease liability, plus any initial direct costs and an estimate of asset retirement
obligations, less any lease incentives. Subsequently, right-of-use assets are measured
at cost, less any accumulated depreciation and any accumulated impairment losses,
and are adjusted for certain remeasurements of the lease liability. Depreciation is
calculated on a straight-line basis over the length of the lease.
The Group has elected to apply exemptions for short-term leases and leases for which
the underlying asset is of low value. For these leases, payments are charged to the
income statement on a straight-line basis over the term of the relevant lease.
Right-of-use assets are presented in property, plant and equipment on the balance
sheet and lease liabilities are shown on the balance sheet in trade and other payables
in current liabilities and non-current liabilities.
Payments on account
Payments on account, measured at amortised cost, are recorded as a liability on
receipt and are released to the income statement when revenue is recognised in
accordance with the Group’s revenue recognition policy.
2026 2025
Non-current liabilities £m £m
Land payables
62.1
73.3
Lease liabilities
16.9
17.2
79.0
90.5
Land payables of £47.0 million (2025: £67.3 million) are secured on the land to which
they relate.
The carrying value of the land used for security is £44.7 million (2025: £62.8 million).
Bellway p.l.c. Annual Report and Accounts 2026 158GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
9. Trade and other payables (continued)
2026 2025
Current liabilities £m £m
Trade payables
339.2
306.2
Land payables
202.9
264.3
Social security and other taxes
8.1
6.8
Other payables
1.3
1.5
Lease liabilities
2.8
2.9
Accruals
187.0
163.1
Payments on account
92.0
156.6
Share buyback obligation
11.1
–
844.4
901.4
Land payables of £150.9 million (2025: £188.8 million) are secured on the land to which
they relate.
The carrying value of the land used for security is £140.7 million (2025: £178.8 million). During the
year, the Group entered into a £12.9 million promissory note in connection with the acquisition
of land. The Group’s contractual obligation and maturity date are unchanged irrespective of
whether the vendor elects to receive early payment from a third party bank, and the amount is
due for settlement within one year. Land payables outside the arrangement are primarily due
within one to five years. At 31 July 2026, liabilities of £12.4 million relating to the arrangement
were included within land payables. This amount has been paid to the supplier by the third
party bank.
Payments on account comprises deposits received in advance which are contract liabilities.
Deposits received in advance are typically held for up to 18 months before the associated
performance obligations are satisfied and the revenue is recognised. The majority of these
contract liabilities as at 31 July 2025 have been recognised as revenue in the current year.
The approximate transaction value allocated to the performance obligations that are
unsatisfied at 31 July 2026 is £1,197.2 million
1
(2025: £1,519.4 million), the majority of which
is expected to be recognised as revenue during the next financial year.
Accruals includes £nil (2025: £13.5 million) of other exceptional items (see note 2).
On 2 April 2026, the Group entered into a share buyback programme to purchase up
to £75.0 million of shares as part of Tranche 2 of the initial share buyback programme.
The remaining share buyback of £11.1 million outstanding at 31 July 2026 was recognised
as a financial liability as the agreement was irrevocable at the year end. The share buyback
obligation was fully satisfied by 28 August 2026.
10. Provisions and reimbursement assets
Provisions
A provision is recognised when the Group has a present legal or constructive
obligation as a result of a past transaction or event, and it is probable that the Group
will be required to settle that obligation either due to known data or based on historical
data and a weighting of possible outcomes against their associated probabilities.
Provisions are measured at the Directors best estimate of the expenditure required
to settle the obligation at the balance sheet date and are discounted to the present
value using a UK risk free discount rate reflecting the period of the expected cashflow,
where the effect is material.
SRT and associated review
The Directors consider that their assessment and judgement of the SRT and
associated review provision, in accordance with the Group’s accounting policies,
could have a significant effect on the Group’s financial statements.
The Directors have established whether any remedial works are required to be
performed on certain sites and if so, have then assessed whether there is a legal
or constructive obligation at the balance sheet date. A legal obligation, assessed
on a site-by-site basis, is present if the building was constructed within a specified
time period and there are life critical defects as set out in the SRT, Pact or Accord.
A constructive obligation is present if Bellway has communicated to the involved
parties (such as residents and building owners) that it will undertake the remedial
works. If the Group has identified that it has a legal or constructive obligation then
a provision has been recognised for the latest estimated cost of the remedial works.
This is a highly complex area with judgements in respect of the extent of those
properties within the scope of Bellway’s SRT and associated review provision, the
scope of the works and the provision could change should the scope of the SRT or
latest interpretation of government guidance further evolve.
SRT and associated review
The SRT and associated review provision has been established to carry out remedial
corrective works on a number of schemes. Management have estimated the cost of
the corrective works for the current anticipated scope, but this is inherently uncertain
as further investigative works are still to be undertaken across the portfolio of sites
within the scope of the SRT and associated review. These estimates may change over
time as further information is assessed, building works progress and the interpretation
of the scope of the SRT or fire safety regulations further evolve.
If:
– cost estimates increase by 5%, the provision at 31 July 2026 would increase by
around £25 million.
– the discount rate increases by 100 bps, the provision at 31 July 2026 would decrease
by around £13 million.
Bellway p.l.c. Annual Report and Accounts 2026 159GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
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 2025
(482.9)
0.1
(482.8)
(33.5)
–
(33.5)
(516.4)
0.1
(516.3)
Adjusting item – cost of sales (note 2)
(37.4)
10.0
(27.4)
6.2
–
6.2
(31.2)
10.0
(21.2)
Analysed as:
Additions
(83.4)
10.0
(73.4)
–
–
–
(83.4)
10.0
(73.4)
Released
39.8
–
39.8
5.8
–
5.8
45.6
–
45.6
Change in discount rate
6.2
–
6.2
0.4
–
0.4
6.6
–
6.6
Utilised/(received)
40.4
(7.9)
32.5
0.5
–
0.5
40.9
(7.9)
33.0
Unwinding of discount (notes 2,16)
(12.0)
–
(12.0)
(1.2)
–
(1.2)
(13.2)
–
(13.2)
At 31 July 2026
(491.9)
2.2
(489.7)
(28.0)
–
(28.0)
(519.9)
2.2
(517.7)
The provision is classified as follows:
Total legacy
SRT and building
associated Structural safety
review defects improvements
£m £m £m
Current
138.1
0.7
138.8
Non-current
353.8
27. 3
381.1
Total
491.9
28.0
519.9
The Group has established a provision for the cost of performing fire remedial works on a number of legacy developments and structural defects relating to historical apartment schemes
(note 2).
Bellway p.l.c. Annual Report and Accounts 2026 160GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
11. Property, plant and equipment
Property, plant and equipment
Items are stated at cost less accumulated depreciation and impairment losses. Items are held in assets under construction and not depreciated until they are available for use,
at which point they are transferred to the relevant category. Depreciation on property, plant and equipment is charged to the income statement on a straight-line basis over their
estimated useful lives over the following number of years:
– Plant, fixtures and fittings – 3 to 15 years.
– Freehold buildings – 40 years.
Freehold land is not depreciated.
Right-of-use assets
The accounting policy for leases is included in note 9.
Owned
Right-of-use assets
Land and Plant, fixtures Asset under Land and Plant, fixtures
property and fittings construction property and fittings Total
£m £m £m £m £m £m
Cost
At 1 August 2024
18.3
15.9
–
22.4
3.1
59.7
Additions
–
1.9
10.6
8.5
–
21.0
Disposals
–
(1.4)
–
(0.4)
(1.1)
(2.9)
At 1 August 2025
18.3
16.4
10.6
30.5
2.0
77.8
Additions
–
6.3
–
2.9
–
9.2
Disposals
–
(2.1)
–
–
(1.5)
(3.6)
Transfers
–
10.6
(10.6)
–
–
–
At 31 July 2026
18.3
31.2
–
33.4
0.5
83.4
Depreciation
At 1 August 2024
4.2
12.1
–
11.3
1.9
29.5
Charge for year
0.5
1.7
–
2.6
0.7
5.5
On disposals
–
(1.3)
–
(0.3)
(1.1)
(2.7)
At 1 August 2025
4.7
12.5
–
13.6
1.5
32.3
Charge for year
0.5
2.3
–
2.8
0.3
5.9
On disposals
–
(2.0)
–
–
(1.5)
(3.5)
At 31 July 2026
5.2
12.8
–
16.4
0.3
34.7
Net book value
At 31 July 2026
13.1
18.4
–
17.0
0.2
48.7
At 31 July 2025
13.6
3.9
10.6
16.9
0.5
45.5
At 31 July 2026, the market capitalisation of the Group was below the carrying value of its net assets. The Group has assessed property, plant and equipment for impairment at 31 July 2026
and no impairment charge was recognised in the year (2025: £nil).
Bellway p.l.c. Annual Report and Accounts 2026 161GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
12. Financial assets and equity accounted joint arrangements
The Group had the following investments or financial assets in joint arrangements at 31 July:
2026 2025
£m £m
Financial assets – loan to joint ventures
49.3
54.0
Interest in joint ventures – equity
–
0.1
49.3
54.1
The Group has made loans of £49.3 million (2025: £54.0 million) to its joint ventures.
This comprises: £42.6 million (2025: £48.3 million) to Bellway Latimer Cherry Hinton LLP
that bears interest at 5% above Bank of England base rate per annum and is repayable on
demand when the LLP has surplus funds and must be fully repaid by the completion of the
development; and £6.7 million (2025: £5.7 million) to Lambeth Regeneration LLP that is
non-interest bearing and repayable on demand.
The movement on both the equity accounted joint ventures and related financial assets
during the year is as follows:
2026 2025
£m £m
At the start of the year
54.1
57.5
Net (decrease)/increase in loans to joint ventures
(4.9)
8.5
Dividends received from equity accounted joint ventures
–
(3.1)
Share of result of joint ventures (note 13)
(0.6)
(1.5)
Transfer to accruals (note 13)
0.7
–
Derecognition of interest in Fradley Residential LLP
–
(7.3)
At the end of the year
49.3
54.1
There are no losses in any of the Group’s joint ventures that have not been recognised by
the Group.
13. Joint arrangements
Cramlington Developments Limited and Leebell Developments Limited are classified as joint
operations as the shareholders have substantially all of the economic benefit of the assets
and fund the liabilities of the entities.
Ponton Road LLP, Lambeth Regeneration LLP, Bellway Latimer Cherry Hinton LLP and
Langley Sustainable Urban Extension Limited are classified as joint ventures as the Group
has rights to the net assets of the arrangements rather than the individual assets
and liabilities.
None of the joint ventures are considered individually material to the Group.
The Group’s share of the joint ventures’ net assets and income are made up as follows:
2026 2025
£m £m
Current assets
58.5
62.5
Current liabilities
(70.0)
(73.7)
Share of net (liabilities)/assets of joint ventures
(11.5)
(11.2)
Joint venture losses recognised against loan to joint ventures
11.5
11.3
Interest in joint ventures – equity
–
0.1
Revenue
35.2
25.5
Costs
(30.7)
(21.5)
Operating profit
4.5
4.0
Interest
(5.1)
(5.5)
Share of result of joint ventures
(0.6)
(1.5)
Analysed as:
Underlying share of result of joint ventures
0.2
(1.5)
Adjusting item: share of joint venture net legacy building
safety expense (note 2)
(0.8)
–
Share of dividends paid to joint venture partners
–
(3.1)
As the net assets of Ponton Road LLP are negative and there is no corresponding loan, a liability
of £0.7m has been recognised in accruals as the Group has an obligation to fund the joint
venture. The LLP is funded by Bellway and the JV partner in equal proportions and members
are committed to provide such funding as may be required by the LLP.
The Group has assessed expected credit losses and the loss allowance for joint venture
financial assets as immaterial.
14. Commitments
2026 2025
£m £m
Capital commitments
Contracted not provided
0.1
3.5
Authorised not contracted
–
–
Bellway p.l.c. Annual Report and Accounts 2026 162GovernanceStrategic Report Accounts Other Information
15. Net cash/(debt)
Cash and cash equivalents
Cash and cash equivalents are defined as cash balances in hand and in the bank
(including short-term cash deposits). The Group has bank overdraft facilities, which are
repayable on demand, as part of its cash management policy. As a consequence, bank
overdrafts are included as a component of net cash and cash equivalents within the
cash flow statement.
Interest-bearing loans and borrowings
Interest-bearing loans and borrowings are stated at their fair value at the date of initial
recognition and subsequently at amortised cost.
15a. Reconciliation of net cash flow to net cash/(debt)
2026 2025
£m £m
Increase in net cash and cash equivalents
115.9
52.3
Increase in net cash from cash flows
115.9
52.3
Net cash/(debt) at 1 August
41.8
(10.5)
Net cash at 31 July
157.7
41.8
15b. Analysis of net cash/(debt)
At 1 August Cash At 31 July
2025 flows 2026
£m £m £m
Cash and cash equivalents
171.8
115.9
287.7
Fixed rate sterling USPP notes
(130.0)
–
(130.0)
Net cash
41.8
115.9
157.7
Through its primary banking provider, the Group operates a single joint account arrangement
covering the Parent and its subsidiary entities. Under this arrangement, the Group manages
all funds through a single joint MASS (Memorandum Account Statement System) account on
behalf of all participating entities, whilst the individual entities have memorandum accounts
which are reflected in the header MASS account. All memorandum balances are grouped
together in the single MASS account for the purposes of applying interest from a Group
perspective, but each entity records its own memorandum balance in its individual
financial statements. The entities participating in the joint account arrangement provide a
cross-guarantee for all participants in relation to all indebtedness owed to the bank and all
participants are jointly and severally liable with the rest of the Group in the event of a default.
As at 31 July 2026, the joint MASS account had an overall net cash balance of £148.9 million
(2025: £95.6 million). While the Group has a right of set-off across our memorandum
accounts as part of the joint account arrangement, each Group entity reflects their own
individual cash position. The MASS account gross balances comprises positive balances
of £178.3 million and overdraft balances of £29.4 million (2025: positive balances
of £115.3 million and overdraft balances of £19.7 million).
Notes to the Group Financial Statements (continued)
16. Finance income and expenses
Finance income and expenses
Finance income includes interest receivable on bank deposits, loans to joint ventures
and other receivables.
Finance expenses includes interest on bank borrowings and fixed rate sterling
USPP notes. The discounting of both the deferred payments for land purchases
and provisions produces a notional interest payable amount and this is also charged
to finance expenses.
2026 2025
£m £m
Interest receivable on short-term bank deposits
3.2
3.8
Net interest on retirement benefit assets
0.1
–
Other interest receivable
5.1
5.8
Finance income
8.4
9.6
2026 2025
£m £m
Interest payable on bank loans
5.8
3.4
Interest payable on fixed rate sterling USPP notes (note 17)
3.4
3.4
Interest on deferred term land payables
13.4
14.9
Unwinding of the discount on the legacy building safety
improvements provision (notes 2, 10)
13.2
14.4
Interest payable on leases (note 17)
0.9
0.8
Finance expenses
36.7
36.9
The unwinding of the discount on the legacy building safety improvements provision is an
adjusting item (note 2).
Bellway p.l.c. Annual Report and Accounts 2026 163GovernanceStrategic Report Accounts Other Information
17. Financial instruments
Financial instruments
Financial assets and financial liabilities are recognised on the balance sheet when
the Group becomes a party to the contractual provisions of the instrument.
Financial assets are derecognised when the rights to receive cash flows from the asset
have expired, or when the Group has transferred those rights and substantially all the risks
and rewards of the asset. Financial liabilities are derecognised when the obligation
specified in the contract is discharged, cancelled or expired.
Land purchased on deferred terms
The Group sometimes acquires land on deferred payment terms. In accordance with
IFRS 9 ‘Financial Instruments’ the creditor is initially recorded at fair value, being the
price paid for the land discounted to present day, and subsequently at amortised cost.
The difference between the nominal value and the initial fair value is amortised over
the deferred term to finance expenses, increasing the land creditor to its full cash
settlement value on the payment date.
The maturity profile of the total contracted cash payments in respect of amounts due on
land creditors at the balance sheet date is as follows:
Total
contracted Within 1
Balance at cash year or 1–2 2–5 More than
31 July payment on demand years years 5 years
£m £m £m £m £m £m
At 31 July 2026
265.0
276.6
206.4
34.2
36.0
–
At 31 July 2025
3 37.6
3 47.4
268.7
70.8
7.9
–
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
contracted Within 1
Balance at cash year or 1–2 2–5 More than
31 July payment on demand years years 5 years
£m £m £m £m £m £m
Trade and other
payables
(excluding lease
liabilities)
5 27.5
527.5
52 7.5
–
–
–
Fixed rate
sterling USPP
notes
130.0
139.4
3.4
82.5
53.5
–
Lease liabilities
19.7
23.1
3.6
2.9
7.5
9.1
Share buyback
obligation
11.1
11.1
11.1
–
–
–
At 31 July 2026
688.3
701.1
545.6
85.4
61.0
9.1
Trade and other
payables
(excluding lease
liabilities)
470.8
470.8
470.8
–
–
–
Fixed rate
sterling USPP
notes
130.0
142.9
3.4
3.4
85.3
50.8
Lease liabilities
20.1
24.6
3.9
3.2
7.0
10.5
At 31 July 2025
620.9
638.3
478.1
6.6
92.3
61.3
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 (2025: £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 2026 and 31 July 2025
for the Group are shown in note 15.
The average interest rate earned on the cash and cash equivalents balance as at 31 July 2026,
excluding joint ventures, was 3.47% (2025: 4.21%).
Notes to the Group Financial Statements (continued)
Bellway p.l.c. Annual Report and Accounts 2026 164GovernanceStrategic Report Accounts Other Information
17. Financial instruments (continued)
Fair values
The carrying values of financial assets and liabilities reasonably approximate their
fair values.
Financial assets and liabilities by category
The carrying values and fair values of the financial assets and liabilities of the Group are
as follows:
2026 2025
£m £m
Loans and receivables
110.1
119.8
Cash and cash equivalents
287.7
171.8
Financial liabilities at amortised cost
(953.3)
(958.5)
(555.5)
(666.9)
Reconciliation of liabilities arising from financing activities
Share
At 1 Net cash New buyback At
August flows leases programme Disposals Interest 31 July
£m £m £m £m £m £m £m
Fixed rate
sterling USPP
notes
130.0
(3.4)
–
–
–
3.4
130.0
Lease liabilities
20.1
(3.8)
2.9
–
(0.4)
0.9
19.7
Share buyback
obligation
–
(139.8)
–
150.9
–
–
11.1
At 31 July 2026
150.1
(147.0)
2.9
150.0
(0.4)
4.3
160.8
Fixed rate
sterling USPP
notes
130.0
(3.4)
–
–
–
3.4
130.0
Lease liabilities
14.1
(3.3)
8.5
–
–
0.8
20.1
At 31 July 2025
144.1
(6.7)
8.5
–
–
4.2
150.1
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 2026 (2025: £400.0 million)
which, as at the year end, were due to expire during the course of the following
financial years:
2026 2025
£m £m
By 31 July 2027
–
150.0
By 31 July 2028
–
150.0
By 31 July 2029
–
50.0
By 31 July 2030
–
50.0
By 31 July 2031
400.0
–
400.0
400.0
During the year, the Group refinanced its bank facilities into a £400.0 million club facility
expiring in December 2030. The facility contains financial covenants based on interest
cover, gearing and net worth, which are tested semi-annually.
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:
2026 2025
£m £m
By 31 July 2028
80.0
80.0
By 31 July 2031
50.0
50.0
130.0
130.0
The fixed rate sterling USPP notes contain financial covenants based on interest cover,
gearing and net worth, which are tested semi-annually.
Capital management
The Group is financed through the proceeds of issued ordinary shares, reinvested profits
and cash in hand less debt. The following table analyses the capital structure:
2026 2025
£m £m
Equity
3,520.8
3,556.2
Net cash (note 15)
(157.7)
(41.8)
Capital employed
3,363.1
3,514.4
Risks
Details of the risks relating to financial instruments are set out in the Risk Management
section on page 52.
Notes to the Group Financial Statements (continued)
Bellway p.l.c. Annual Report and Accounts 2026 165GovernanceStrategic Report Accounts Other Information
Shareholder capital
18. Issued capital
Classification of equity instruments and financial
liabilities issued by the Group
Equity instruments issued by the Group are treated as equity only to the extent that
they meet the following two conditions:
(a) they include no contractual obligations upon the Company (or Group as the case
may be) to deliver cash or other financial assets or to exchange financial assets
or financial liabilities with another party under conditions that are potentially
unfavourable to the Company (or Group); and
(b) where the instrument will or may be settled in the Company’s own equity
instruments, it is either a non-derivative that includes no obligation to deliver
a variable number of the Company’s own equity instruments or is a derivative
that will be settled by the Company’s exchanging a fixed amount of cash or other
financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial
liability. Where the instrument so classified takes the legal form of the Company’s own
shares, the amounts presented in these financial statements for called up share capital
and share premium exclude amounts in relation to those shares.
2026 2025
Number 2026 Number 2025
000 £m 000 £m
Allotted, called up and fully paid 12.5p
ordinary shares
At start of year
118,992
14.8
118,980
14.8
Issued on exercise of options
316
–
12
–
Buyback and cancellation of shares
(6,334)
(0.8)
–
–
At end of year
112,974
14.0
118,992
14.8
The holders of ordinary shares are entitled to receive dividends as declared from time to time
and are entitled to one vote per share at meetings of the Company.
During the year, the Group purchased 6,334,139 of its own ordinary shares for a total
consideration of £139.8 million, including transaction costs of £0.9 million, as part of the
initial £150.0 million share buyback programme entered into on 14 October 2025 and
completed on 28 August 2026. During the year, 6,334,139 shares were cancelled and nil
were held in treasury by the Company. As the programme was irrevocable at 31 July 2026,
£11.1 million of the total remaining consideration was recognised as a financial liability.
19. Reserves
Own shares held by ESOP trust
The purchase of shares in the Company by the trust are charged directly to equity.
Share premium
This reserve is not distributable.
Own shares held
Bellway p.l.c. holds shares within the Bellway Employee Share Trust (1992) (the Trust),
on which dividends have been waived, for participants of certain share-based payment
schemes as outlined in note 23. The cost of these is charged to retained earnings.
2026 2025
Number Number
At start of year
370,097
326,114
Transferred to employees or Directors
(124,993)
(1,000)
Shares purchased
218,893
44,983
At end of year
463,997
370,097
2026 2025
£m £m
Cost of shares held in the Trust
12.0
9.8
Market value of shares held in the Trust
9.2
9.2
Capital redemption reserve
On 7 April 2014 Bellway p.l.c. redeemed 20,000,000 £1 preference shares, being all of the
preference shares in issue. An amount of £20.0 million, equivalent to the nominal value of
the shares redeemed, was transferred to a capital redemption reserve on the same date.
Over the course of the calendar year 2023, the Group purchased 4,560,057 of its own
shares which it cancelled. On cancellation of the shares, the aggregate nominal value of
£0.6 million was transferred from issued capital to the capital redemption reserve.
During FY26, the Company purchased 6,334,139 of its own shares as part of the initial share
buyback programme, which were cancelled. On cancellation of the shares, the aggregate
nominal value of £0.8 million was transferred from issued share capital to the capital
redemption reserve.
This reserve is not distributable.
2026 2025
£m £m
At start of year
20.6
20.6
Amounts transferred in respect of own shares purchased and
cancelled during the year
0.8
–
At end of year
21.4
20.6
Notes to the Group Financial Statements (continued)
Bellway p.l.c. Annual Report and Accounts 2026 166GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
20. Dividends on equity shares
Dividends
Dividends on equity shares are recognised as a liability in the period in which they are
approved by the shareholders. Interim dividends are recognised when paid.
2026 2025
£m £m
Amounts recognised as distributions to equity holders
in the year:
Final dividend for the year ended 31 July 2025 of 49.0p per share
(2024: 38.0p)
57.6
45.1
Interim dividend for the year ended 31 July 2026 of 23.0p per
share (2025: 21.0p)
26.3
24.9
83.9
70.0
Proposed final dividend for the year ended 31 July 2026 of 52.0p
per share (2025: 49.0p)
58.5
58.1
The 2026 proposed final dividend is subject to approval by shareholders at the Annual
General Meeting on 26 November 2026 and, in accordance with IAS 10 ‘Events after
the Reporting Period’, has not been included as a liability in these financial statements.
In relation to shares held by the Bellway Employee Share Trust (1992) (the Trust) dividends
have been waived (see note 19).
The level of distributable reserves are sufficient in comparison to the proposed dividend.
Directors and employees
21. Employee information
Employment costs, including directors, comprised:
2026 2025
£m £m
Wages and salaries
197.0
182.6
Social security
21.8
18.4
Pension costs (note 22)
9.7
9.1
Share-based payments (note 23)
5.7
4.6
234.2
214.7
The average number of persons employed, including Directors, during the year was:
2026 2025
Number Number
Administrative
1,238
1,112
Production and others employed in housebuilding and associated
trading activities
1,609
1,634
2,847
2,746
The emoluments of the Executive Directors are disclosed in the Report of the Board on Directors’
Remuneration on pages 104 to 124.
Key management personnel remuneration, including directors, comprised:
2026 2025
£m £m
Salaries and fees (including pension compensation)
5.6
5.4
Social security
1.8
1.5
Taxable benefits
0.4
0.4
Annual cash bonus
3.8
5.1
Pension costs
0.3
0.3
Share-based payments
2.3
2.5
14.2
15.2
Key management personnel, as disclosed under IAS 24 ‘Related party disclosures’,
comprises the Directors and other senior operational management.
Bellway p.l.c. Annual Report and Accounts 2026 167GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
22. Retirement benefit asset
Employee benefits – retirement benefit costs
The net defined benefit scheme asset or liability is the fair value of scheme assets
less the present value of the defined benefit obligation at the balance sheet date.
The calculation is performed by a qualified actuary using the projected unit credit
method. All remeasurement gains and losses are recognised immediately in the
Statement of Comprehensive Income (SOCI). Net interest income/(cost) is calculated
on the defined benefit asset/(liability) for the period by applying the discount rate used
to measure the defined benefit liability at the start of the year. Return on plan assets
in excess of the amounts included in the net interest cost are recognised in the SOCI.
A net pension asset for the refund of a surplus is recognised as the company has an
unconditional right to a refund of a surplus, such as when all member benefits have
been paid.
Defined contribution pension costs are charged to the income statement in the period
for which contributions are payable.
(a) Retirement benefit assets
The Group sponsors the Bellway plc 1972 Pension Scheme (the Scheme) which has a funded
final salary defined benefit arrangement which is closed to new members and to future
service accrual. The Group also sponsors the Bellway plc 2008 Group Self Invested Personal
Pension Plan (GSIPP) which is a defined contribution contract-based arrangement.
Contributions of £9.7 million (2025: £9.1 million) were charged to the income statement for
the GSIPP.
(b) Role of Trustees
The Scheme is managed by the Trustees, who are appointed by either the Company or the
members. The role of the Trustees is to manage the Scheme in line with the Scheme trust
deed and rules, to act prudently, responsibly and honestly, impartially and in the interests
of all beneficiaries. The main responsibilities of the Trustees are to agree with the employer
the level of contributions to the Scheme and to make sure these are paid, to decide how the
Scheme’s assets are invested so the Scheme is able to meet its liabilities, and to oversee
that the payment of benefits, record keeping and administration of the Scheme complies
with the Scheme trust deed and rules and legislation.
(c) Funding
UK legislation requires that pension schemes are funded prudently (i.e. to a level in excess
of the current expected cost of providing benefits). The last full actuarial valuation of the
Scheme was carried out by a qualified independent actuary as at 31 July 2023 and updated
on an approximate basis to 31 July 2026.
With regard to the Scheme, regular contributions made by the employer over the financial
year were £nil (2025: £nil). The employer paid no special contributions (2025: £nil) and
reimbursed the pension fund £nil (2025: £nil) for expenses incurred by the fund.
The Group is expected to make no regular contributions during the year ending 31 July 2027.
(d) Regulation
The UK pensions market is regulated by the Pensions Regulator whose key statutory
objectives in relation to UK defined benefit plans are:
– to protect the benefits of members of occupational pension schemes;
– to promote, and to improve understanding of the good administration of work-based
pension schemes;
– to reduce the risk of situations arising which may lead to compensation being payable
from the Pension Protection Fund, and
– to maximise employer compliance with employer duties and the employment safeguards
introduced by the Pensions Act 2008.
(e) Risk
The Scheme exposes the Group to a number of risks, the most significant are:
Risk
Description
Asset The Scheme’s defined benefit obligation is calculated using a discount rate
volatility set with reference to corporate bond yields. However, a significant proportion
of the Scheme’s assets are invested in growth assets, such as equities, that
would be expected to outperform corporate bonds in the long-term but
create volatility and risk in the short-term. This scheme mitigates this
volatility risk through the use of diversified growth funds and liability
driven instruments.
Inflation A significant proportion of the Scheme’s defined benefit obligation is linked
risk to inflation, with higher inflation increasing the liabilities. However, there are
caps of either a 3% (CPI) or 5% p.a. (RPI) increase in place to limit the effect
of higher inflation.
Life The majority of the Scheme’s liabilities are to provide a pension for the life of
expectancy the member, with any increase in life expectancy also increasing the Scheme’s
defined benefit obligation.
The Group and Trustees have agreed a long-term strategy for reducing investment risk as
and when appropriate. This includes liability driven investment funds which invest in assets
such as gilts, swaps and repurchase agreements. The purpose of the liability driven
investment funds is to significantly reduce the volatility of the Plan’s funding level by
mitigating inflation and interest rate risks, as the liability driven investment funds match
the movements in interest rates and inflation closely.
Bellway p.l.c. Annual Report and Accounts 2026 168GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
22. Retirement benefit asset (continued)
High Court rules on amendments to contracted out defined benefit schemes
The Group is monitoring recent legal developments that may have implications for the
governance and historical amendments of its defined benefit pension scheme.
In June 2023, the High Court handed down a decision (Virgin Media Limited v NTL Pension
Trustees II Limited and others) which potentially has implications for the validity of
amendments made by pension schemes, including the Scheme, which were contracted-out
on a salary-related basis between 6 April 1997 and the abolition of contracting-out in 2016.
The Pension Schemes Act 2026, which received Royal Assent on 29 April 2026 helps to
address issues potentially arising from the case. The provisions set out how retrospective
validation may be obtained so trustees who want to take action can assess whether to
search for historical confirmations or obtain retrospective confirmations.
In a 2023 High Court ruling (BBC v BBC Pension Trustee Limited and Christina Burns),
the judge found a rule in the trust deed which forbids alterations that adversely affect
members’ ‘interests’ would prevent any modifications that reduce future benefits.
In 2025 the Court of Appeal subsequently confirmed the High Court ruling.
In response to these two cases, the Scheme Trustees are in the process of conducting
a thorough legal review and investigation of the scheme rules, amendments, and wider
documents. Once that review has been completed, the Group will be in a position to
consider what, if any, effect there will be on the Scheme.
Movements in net defined benefit assets
Defined benefit Fair value of Net defined
obligation Scheme assets benefit asset
2026 2025 2026 2025 2026 2025
£m £m £m £m £m £m
Balance at 1 August
(38.9)
(42.3)
39.8
43.2
0.9
0.9
Included in the income statement
Interest (expense)
/income
(2.1)
(2.1)
2.2
2.1
0.1
–
(2.1)
(2.1)
2.2
2.1
0.1
–
Included in other comprehensive income/(expense)
Remeasurement
gain arising from:
– Change in
demographic and
financial
assumptions
2.6
3.1
–
–
2.6
3.1
– Experience
adjustments
(0.4)
0.2
–
–
(0.4)
0.2
Return on plan
assets excluding
interest income
–
–
(0.7)
(3.3)
(0.7)
(3.3)
2.2
3.3
(0.7)
(3.3)
1.5
–
Other
Benefits paid
2.3
2.2
(2.3)
(2.2)
–
–
2.3
2.2
(2.3)
(2.2)
–
–
Balance at 31 July
(36.5)
(38.9)
39.0
39.8
2.5
0.9
The weighted average duration of the defined benefit obligation at the end of the reporting
period is 11 years (2025: 11 years).
Bellway p.l.c. Annual Report and Accounts 2026 169GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
22. Retirement benefit asset (continued)
Scheme assets
The fair value of the Scheme assets is:
2026 2025
£m £m
Diversified growth fund
12.9
13.0
Corporate bonds
4.5
5.1
Liability driven instruments
16.5
16.7
Insurance policies annuities
4.4
4.5
Cash and cash equivalents
0.7
0.5
Total
39.0
39.8
Diversified growth funds are pooled funds invested across a diversified range of assets with
the aim of giving long-term investment growth with lower short-term volatility than equities.
Liability driven instruments are a portfolio of funds designed to hedge the majority of the
interest rate and inflation risks associated with the schemes’ obligations.
Actuarial assumptions
The following are the principal actuarial assumptions at the reporting date:
2026 2025
% per % per
annum annum
Discount rate
6.40
5.60
Future salary increases
3.50
3.40
Allowance for pension in payment increases of RPI or 5% p.a. if less
2.80
2.70
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
The mortality assumptions adopted at 31 July 2026 are based on the S3PxA tables and allow
for future improvement in mortality. The tables used imply the following life expectancies at
age 65:
Male retiring in 2026
22.9 years
Female retiring in 2026
24.6 years
Male retiring in 2046
24.2 years
Female retiring in 2046
26.1 years
The mortality assumptions adopted at 31 July 2025 were based on the S3PxA tables and allow
for future improvement in mortality. The tables used imply the following life expectancies at
age 65:
Male retiring in 2025
22.7 years
Female retiring in 2025
24.4 years
Male retiring in 2045
24.0 years
Female retiring in 2045
25.9 years
Sensitivities
The calculation of the defined benefit obligation is sensitive to the assumptions set out
above. The following table summarises the effect on the defined benefit obligation at the
end of the reporting period if different assumptions were used:
Assumption
Change in assumption
Change in liabilities (%)
Discount rate
+0.10% p.a.
Decrease by 1.0%
Inflation
+0.10% p.a.
Increase by 0.8%
Mortality
+1 year life expectancy
Increase by 3.1%
The calculations for the sensitivity analysis are not as accurate as a full valuation carried
out using these assumptions. Each assumption change is considered in isolation, which in
practice is unlikely to occur, as changes in some of the assumptions are correlated.
Bellway p.l.c. Annual Report and Accounts 2026 170GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
23. Share based payments
Employee benefits – share-based payments
The fair value of equity settled share options granted is recognised as an employee
expense with a corresponding increase in equity. The fair value is measured as at the
date the options are granted and the charge is only amended if vesting does not take
place due to non-market conditions not being met. Various option pricing models are
used according to the terms of the option scheme under which the options were
granted. The fair value is spread over the period during which the employees become
unconditionally entitled to the options. At the balance sheet date, if it is expected that
non-market conditions will not be satisfied, the cumulative expense recognised in
relation to the relevant options is reversed.
With respect to share-based payments, a deferred tax asset is recognised on the
relevant tax base. The tax base is then compared to the cumulative share-based
payment expense recognised in the income statement. Deferred tax arising on the
excess of the tax base over the cumulative share-based payment expense recognised
in the income statement has been recognised directly in equity outside the SOCI as
share-based payments are considered to be transactions with shareholders.
The Group operates a long-term incentive plan (LTIP), a deferred bonus plan (DBP), an
employee share option scheme and Savings Related Share Option Schemes (SRSOS),
all of which are detailed below.
Awards under the LTIP have been made to Executive Directors and senior employees,
with awards under the DBP also made to senior employees. The awards take the form
of ordinary shares in the Company.
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 110 to 115F 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
2026 2025
Weighted Weighted
average 2026 average 2025
exercise Number of exercise Number of
price options price options
p No. p No.
Outstanding at the beginning of the year
–
596,715
–
597,279
Granted during the year
–
615,185
–
159,958
Lapsed during the year
–
(126,117)
–
(159,522)
Exercised during the year
–
(115,542)
–
(1,000)
Outstanding at the end of the year
–
970,241
–
596,715
Exercisable at the end of the year
–
–
–
–
The options outstanding at 31 July 2026 have a weighted average contractual life of 1.7 years
(2025: 1.2 years). The weighted average share price at the date of exercise for share options
exercised during the year was 2,810.5p (2025: 2,666.0p).
SRSOS
2026 2025
Weighted Weighted
average 2026 average 2025
exercise Number of exercise Number of
price options price options
p No. p No.
Outstanding at the beginning of the year
1,702.1
754,811
1,625.5
770,162
Granted during the year
1,781.0
772,826
2,513.0
96,317
Forfeited during the year
2,125.3
(349,170)
1,813.0
(100,206)
Exercised during the year
1,556.9
(316,825)
2,397.0
(11,462)
Outstanding at the end of the year
1,654.8
861,642
1,702.1
754,811
Exercisable at the end of the year
1,664.9
11,899
2,534.0
17,157
The options outstanding at 31 July 2026 have an exercise price in the range of 1,550p to
2,535p (2025: 1,550.0p to 2,535.0p) and have a weighted average contractual life of 2.9 years
(2025: 1.9 years). The weighted average share price at the date of exercise for share options
exercised during the year was 2,608.0p (2025: 2,659.8p).
Bellway p.l.c. Annual Report and Accounts 2026 171GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
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:
November November November January May May May May May May
2025 2025 2025 2026 2026 2026 2026 2026 2026 2026
3 Year 2024 5 Year 2024 3 Year 2025 5 Year 2025
SRSOS SRSOS SRSOS SRSOS
Scheme description
LTIP
3 Year SRSOS
5 Year SRSOS
LTIP
3 Year SRSOS
5 Year SRSOS
modified* modified* modified* modified*
Valuation model
n/a
Black Scholes
Black Scholes
n/a
Black Scholes
Black Scholes
Black Scholes
Black Scholes
Black Scholes
Black Scholes
Grant date
27-Nov-25
28-Nov-25
28-Nov-25
27-Jan-26
13-May-26
13-May-26
13-May-26
13-May-26
13-May-26
13-May-26
Risk free
interest rate
0.0%
3.71%
3.94%
0.0%
4.42%
4.59%
4.36%
4.46%
4.40%
4.54%
Exercise price
–
2,108p
2,108p
–
1,598p
1,598p
2,513p
2,513p
2,108p
2,108p
Share price at
date of grant
2,808p
2,858p
2,858p
2,720p
1,917p
1,917p
1,917p
1,917p
1,917p
1,917p
Expected
dividend yield
0.0%
2.47%
2.47%
0.0%
3.76%
3.76%
3.76%
3.76%
3.76%
3.76%
3 years 2 5 years 2 3 years 2 5 years 2 3 years 2 5 years 2 3 years 2 5 years 2
Expected life
3 years
months
months
3 years
months months months months months months
Vesting date
27-Nov-28
01-Feb-29
01-Feb-31
27-Jan-29
01-Jul-29
01-Jul-31
01-Jul-29
01-Jul-31
01-Jul-29
01-Jul-31
Expected volatility
N/A
31%
31%
N/A
32%
32%
32%
32%
32%
32%
Fair value of option
2,808p
973p
1,062p
2,808p
527p
579p
153p
269p
318p
406p
Incremental fair
value of option
–
–
–
–
–
–
374p
310p
209p
173p
* In the current year, there has been a modification to the SRSOS schemes relating to employees cancelling awards from December 2024 and November 2025 in substitution for awards granted under an additional
scheme in May 2026. Employees were invited to invest in a new grant with the option to cancel their contributions to the 2024 and 2025 grants to maximise their investment in the replacement grant. Options cancelled
and reinvested into the replacement grant within the investment window to the grant date were accounted for on a modification basis. Shares cancelled but not replaced were treated as cancellations. The incremental
fair value is the difference between the fair value of the May 2026 options and the fair value of the repriced previous awards, estimated at the date of modification. The fair value of the original modified award will be
recognised over the remainder of the original vesting period, whilst the incremental fair value is recognised over the new vesting period.
Bellway p.l.c. Annual Report and Accounts 2026 172GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
23. Share based payments (continued)
2025
October December November December December
2024 2024 2024 2024 2024
Scheme description
LTIP
LTIP
DBP
3 Year SRSOS
5 Year SRSOS
Valuation model
n/a
n/a
n/a
Black Scholes
Black Scholes
Grant date
25-Oct-24
16-Dec-24
18-Dec-24
15-Nov-24
15-Nov-24
Risk free interest rate
0.0%
0.0%
0.0%
4.2%
4.2%
Exercise price
–
–
–
2,513p
2,513p
Share price at date of grant
3,050p
2,426p
2,424p
2,548p
2,548p
Expected dividend yield
0.0%
0.0%
2.2%
2.1%
2.1%
Expected life
3 years
3 years
3 years
3 years 2 months
5 years 2 months
Vesting date
25-Oct-27
16-Dec-27
18-Dec-27
01-Feb-28
01-Feb-30
Expected volatility
35%
35%
35%
35%
35%
Fair value of option
3,040p
2,147p
2,267p
677p
816p
In the case of the DBP and LTIP awards, 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.
For the LTIP scheme, participants are entitled to dividend equivalents and as such the fair value has not been discounted and is therefore equal to the share price at the date of the grant.
As dividends are not reinvested in the DBP scheme, the fair value of these awards is equal to the share price at the date of the grant, discounted for the fair value of dividends.
The valuations of both schemes 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 a total expense of £5.7 million (2025: £4.6 million) in relation to equity-settled share-based payment transactions.
Bellway p.l.c. Annual Report and Accounts 2026 173GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
Contingencies, related parties and subsidiaries
24. Contingent liabilities
Contingent liabilities
Contingent liabilities of the Group are disclosed unless the possibility of an outflow
in settlement is remote.
On 30 October 2025 the Competition and Markets Authority (CMA) made a decision to
close its investigation into information sharing practices in the sector following binding
commitments from certain housebuilders and a requirement for the housebuilders to work
with industry bodies to develop and publish industry-wide UK competition law guidance for
the wider sector. The CMA did not find that the Competition Act 1998 had been infringed,
and the acceptance of commitments did not involve any admission of wrongdoing by
the housebuilders.
An application to commence a proposed collective class action was filed in the Competition
Appeal Tribunal on 24 June 2026 against seven major housebuilders, including Bellway.
The application alleges that exchanges of competitively sensitive information breached
competition law, affected competition and resulted in higher prices for certain purchasers
of new-build homes. The application states it is informed by the CMA decision referred to
above. The proposed collective action remains at a very early stage and, as a result, it is not
yet possible to assess the likely outcome. Accordingly, no provision has been recognised in
respect of the proposed action.
25. Related party transactions
The Board and certain members of senior management are related parties within the
definition of IAS 24 ‘Related Party Disclosures’. Summary information of the transactions
with key management personnel is provided in note 21. Detailed disclosure of individual
remuneration of Board members is included in the Remuneration Report on pages 104
to 124.
Transactions between fellow subsidiaries, which are related parties, have been eliminated
on consolidation and are not disclosed.
During the year the Group entered into the following related party transactions with its
joint arrangements:
2026 2025
£m £m
Invoiced to joint arrangements in respect of accounting,
management fees, interest on loans, land purchases and
infrastructure works
49.4
33.3
Amounts owed to joint arrangements in respect of land
purchases and management fees at the year end
(3.1)
(3.1)
Amounts owed by joint arrangements in respect of
accounting, management fees, interest, land purchases
and infrastructure works
67.9
71.1
Other information
26. 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. They may not be directly comparable with other
companies’ alternative performance measures, and are not intended to be a substitute
for any IFRS measures of performance, but are considered to be key measures used for
assessing the performance of the business. The Directors use a combination of APMs
and IFRS measures when reviewing the performance, position and cash of the Group.
Certain APMs previously presented by the Group have been removed as they are no longer
used by the Directors when reviewing the performance of the Group. The APMs that have
not been continued are: Capital invested in land, net of land creditors, and work-in-progress;
Total growth in value per ordinary share (over 3 years); Annualised accounting return in NAV
and dividends paid since 31 July 2022 (3-year return); Annualised accounting return in NAV
and dividends paid since 31 July 2015 (10-year return); Underlying capital growth in the
period; Capital growth in the period; and, Cash generated from operations before
investment in land, net of land creditors, and work-in-progress.
The APMs used by the Group are defined below:
– Underlying – Underlying refers to any performance measure before net legacy building
safety expense and other exceptional items. The Directors consider that the removal
of the net legacy building safety expense and other exceptional items provides a useful
understanding of the underlying performance of the Group when reviewed alongside
statutory measures.
– 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.
– 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.
– 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.
Bellway p.l.c. Annual Report and Accounts 2026 174GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
26. 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.
– Return on capital employed (RoCE) – This is calculated as operating profit divided by the
average capital employed. Capital employed is defined as the total of equity plus net debt
or less net cash. Average capital employed is calculated based on opening, half year and
closing capital employed. RoCE is also calculated using capital employed including land
creditors. 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. 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.
2026 2025
Capital Capital
employed employed
2026 2026 including 2025 2025 including
Capital Land land Capital Land land
employed creditors creditors employed creditors creditors
£m £m £m £m £m £m
Underlying
operating profit
320.6
320.6
303.5
303.5
Operating
profit
299.1
299.1
250.7
250.7
Capital
employed/land
creditors:
Opening
3,514.4
337.6
3,852.0
3,475.9
225.3
3,701.2
Half year
3,594.9
289.6
3,884.5
3,530.4
289.7
3,820.1
Closing
3,363.1
265.0
3,628.1
3,514.4
33 7.6
3,852.0
Average
3,490.8
297.4
3,788.2
3,506.9
284.2
3,791.1
Underlying
return on
capital
employed
9.2%
8.5%
8.7%
8.0%
Return
on capital
employed
8.6%
7.9%
7.1%
6.6%
– 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.
2026 2025
£m £m
Revenue
3,162.2
2,782.8
Average capital employed
3,490.8
3,506.9
Asset turn
0.91
0.79
– Pre-tax return on equity (RoE) – This is calculated as profit before taxation 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.
2026 2025
£m £m
Underlying profit before taxation
305.7
289.1
Profit before taxation
270.2
221.9
Net assets:
Opening
3,556.2
3,465.4
Half year
3,522.9
3,522.4
Closing
3,520.8
3,556.2
Average
3,533.3
3,514.7
Underlying pre-tax return on equity
8.7%
8.2%
Pre-tax return on equity
7.6%
6.3%
– 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.
2026 2025
£m £m
Underlying profit for the year
218.7
209.7
Profit for the year
193.4
157.5
Net assets:
Opening
3,556.2
3,465.4
Half year
3,522.9
3,522.4
Closing
3,520.8
3,556.2
Average
3,533.3
3,514.7
Underlying post-tax return on equity
6.2%
6.0%
Post-tax return on equity
5.5%
4.5%
Bellway p.l.c. Annual Report and Accounts 2026 175GovernanceStrategic Report Accounts Other Information
Notes to the Group Financial Statements (continued)
26. Alternative performance measures (continued)
– 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.
– Adjusted operating cashflow (before land spend, legacy building safety spend,
shareholder returns and changes in debt borrowings) – This is calculated as the net
change in cash and cash equivalents, adding back cashflows relating to land spend,
the utilisation of the legacy building safety provision, net of reimbursement asset,
shareholder returns and changes in debt borrowings. Land spend is cashflows related
to the acquisition of land in the period. Shareholder returns include payments to
shareholders through dividends and share buyback programmes. The Directors consider
this as an indicator of how effective the Group is at generating cash to invest in future
growth and drive long term value creation for shareholders.
2026 2025
£m £m
Net increase/(decrease) in cash and cash equivalents
115.9
52.3
Add back:
Land spend
496.0
472.0
Utilisation of total legacy building safety improvements provision
33.0
44.6
Dividends paid
83.9
70.0
Share buyback programme
139.8
–
Adjusted operating cashflow (before land spend, legacy building
safety spend, shareholder returns and changes in debt borrowings)
868.6
638.9
– 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.
2026 2025
£m £m
Net cash/(debt)
157.7
41.8
Land creditors
(265.0)
(337.6)
(107.3)
(295.8)
Total equity
(3,520.8)
(3,556.2)
Adjusted gearing
3.0%
8.3%
– 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.
2026 2025
£m £m
Net cash/(debt)
157.7
41.8
Total equity
(3,520.8)
(3,556.2)
Gearing
–
–
– 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.
27. Post balance sheet events
Share buyback
The Board has approved a return of £75 million surplus capital to shareholders, through
the initial tranche of the Second Share Buyback Programme, with contract terms agreed on
1 September 2026 and amended solely to increase the size from £50 million to £75 million,
on 12 October 2026. As set out in the Chair’s Statement, the full value of the Second Share
Buyback Programme, which will cover FY27, is £150 million..
Acquisition of Llanmoor Development Co. Limited
The Group acquired 100% of both the ordinary and preference share capital of Llanmoor
Development Co. Limited on 30 September 2026 for consideration of £40.4 million, payable
over 3 years. As this transaction was very recent the acquisition accounting has not yet
been completed. In line with IFRS 3 ‘Business Combinations’, the acquisition accounting
will be finalised within 12 months of the acquisition date.
Bellway p.l.c. Annual Report and Accounts 2026 176GovernanceStrategic Report Accounts Other Information
Company Balance Sheet Parent Company Income Statement
Note
2026
£m
2025
£m
ASSETS
Non-current assets
Investments in subsidiaries 2 57.7 54.5
Trade and other receivables 3 402.5 419.4
460.2 473.9
Current assets
Trade and other receivables 3 88.2 85.6
Cash and cash equivalents 99.3 86.7
187.5 172.3
Total assets 647.7 646.2
LIABILITIES
Current liabilities
Corporation tax payable 0.4 6.1
Trade and other payables 4 18.0 20.9
18.4 27.0
Total liabilities 18.4 27.0
Net assets 629.3 619.2
EQUITY
Issued capital 6 14.0 14.8
Share premium 7 188.4 183.5
Capital redemption reserve 7 21.4 20.6
Other reserves 2.1 2.1
Retained earnings 403.4 398.2
Total equity 629.3 619.2
Approved by the Board of Directors on 12 October 2026 and signed on its behalf by:
John Tutte Shane Doherty
Director Director
Registered number 1372603
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 £240.0 million (2025: £68.0 million).
Bellway p.l.c. Annual Report and Accounts 2026 177GovernanceStrategic Report Accounts Other Information
Company Statement of Changes in Equity
Note
Issued
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Other
reserves
£m
Retained
earnings
£m
Total
equity
£m
Company
Balance at 1 August 2024 14.8 183.2 20.6 2.1 396.6 617.3
Total comprehensive income for the year
Profit for the year – – – – 68.0 68.0
Total comprehensive income for the year – – – – 68.0 68.0
Transactions with shareholders recorded directly in equity:
Dividends on equity shares 8 – – – – (70.0) (70.0)
Purchase of own shares – – – – (1.0) (1.0)
Shares issued – 0.3 – – – 0.3
Credit in relation to share options 6 – – – – 4.6 4.6
Total contributions by and distributions to shareholders – 0.3 – – (66.4) (66.1)
Balance at 31 July 2025 14.8 183.5 20.6 2.1 398.2 619.2
Total comprehensive income for the year
Profit for the year – – – – 240.0 240.0
Total comprehensive income for the year – – – – 240.0 240.0
Transactions with shareholders recorded directly in equity:
Dividends on equity shares 8 – – – – (83.9) (83.9)
Purchase of own shares – – – – (5.7) (5.7)
Shares issued 6 – 4.9 – – – 4.9
Credit in relation to share options and tax thereon – – – – 5.7 5.7
Share buyback programme and cancellation of shares 6,7 (0.8) – 0.8 – (150.9) (150.9)
Total contributions by and distributions to shareholders (0.8) 4.9 0.8 – (234.8) (229.9)
Balance at 31 July 2026 14.0 188.4 21.4 2.1 403.4 629.3
Bellway p.l.c. Annual Report and Accounts 2026 178GovernanceStrategic Report Accounts Other Information
Notes to the Company Financial Statements
Accounting Policies
Basis of preparation
The separate company financial statements are prepared in accordance with Financial
Reporting Standard 101, ‘Reduced Disclosure Framework’ (FRS 101). The financial
statements have been prepared under the historical cost convention, as modified by
the revaluation of certain assets and liabilities, and in accordance with the Companies
Act 2006.
In preparing these financial statements, the Company applies the recognition,
measurement and disclosure requirements of International Financial Reporting
Standards as adopted by the UK (UK-adopted international accounting standards)
butmakes amendments where necessary in order to comply with the Companies Act
2006 and to take advantage of FRS 101 disclosure exemptions.
The following exemptions from the requirements of IFRS have been applied in the
preparation of these financial statements, in accordance with FRS 101:
– Paragraphs 45(b) and 46 to 52 of IFRS 2, ‘Share-based payment’ (details of the
number and weighted-average exercise prices of share options, and how the fair
value of goods or services received was determined).
– IFRS 7, ‘Financial Instruments: Disclosures’.
– Paragraph 91 to 99 of IFRS 13, ‘Fair value measurement’ (disclosure of valuation
techniques and inputs used for fair value measurement of assets and liabilities).
– The following paragraphs of IAS 1, ‘Presentation of financial statements’:
• 10(d) (statement of cash flows),
• 16 (statement of compliance with all IFRS),
• 38A (requirement for minimum of two primary statements, including cash
flow statements),
• 38B-D (additional comparative information),
• 40A-D (requirements for a third statement of financial position).
• 111 (statement of cash flows information), and
• 134-136 (capital management disclosures).
– IAS 7, ‘Statement of cash flows’.
– Paragraph 30 and 31 of IAS 8, ‘Accounting policies, changes in accounting estimates
and errors’ (requirement for the disclosure of information when an entity has not
applied a new IFRS that has been issued but is not yet effective).
– The requirements in IAS 24, ‘Related party disclosures’ to disclose related party
transactions entered into between two or more members of a group.
– The requirements in IAS 36, ‘Impairment of asset’ to disclose valuation technique
and assumptions used in determining recoverable amount.
On publishing the Company financial statements here together with the Group
financial statements, which were approved for issue on 12 October 2026, the Company
is taking advantage of the exemption in section 408 of the Companies Act 2006 not to
present its individual income statement and related notes that form a part of these
financial statements.
Other financial statement considerations
In preparing the Company financial statements, management has considered the
impact of climate change, and the possible impact of climate-related and other
emerging business risks. A rigorous assessment of the impact of climate-related
riskshas been performed, and disclosed in the Strategic Report, in accordance with
the recommendations of the Task Force on Climate-related Financial Disclosures.
No issues were identified that would materially impact the carrying values of either
theCompany’s assets or liabilities, or have any other material impact on the
financial statements.
The preparation of financial statements requires management to make judgements,
estimates and assumptions that affect the application of policies and reported
amounts of assets and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that are
believed to be reasonable under the circumstances, the results of which form the basis
of making the judgements about the carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from
these estimates.
The accounting policies set out within the notes to the financial statements have been
applied consistently to all periods presented in these financial statements, unless
otherwise stated.
Critical accounting judgements and key sources of estimation uncertainty
Management has not made any individual accounting judgements that are material to
the Company and does not consider there to be any key sources of material
estimation uncertainty.
Going concern
The Group, which the Company heads, has prepared forecasts, including certain
sensitivities, on pages 170. Having considered these forecasts, the Directors consider
that the Group the Company heads is well placed to manage business and financial
risks in the current economic environment. Consequently, the Directors are confident
that the Group and Company will have sufficient funds to continue to meet its liabilities
as they fall due for the period to 31 July 2028, and have therefore prepared the
financial statements on a going concern basis.
Bellway p.l.c. Annual Report and Accounts 2026 179GovernanceStrategic Report Accounts Other Information
Notes to the Company Financial Statements (continued)
1. Employee information
Employee benefits – share-based payments
The fair value of equity settled share options granted is recognised as an employee
expense with a corresponding increase in equity. The fair value is measured as at the
date the options are granted and the charge is only amended if vesting does not take
place due to non-market conditions not being met. Various option pricing models are
used according to the terms of the option scheme under which the options were
granted. The fair value is spread over the period during which the employees become
unconditionally entitled to the options. At the balance sheet date, if it is expected that
non-market conditions will not be satisfied, the cumulative expense recognised in
relation to the relevant options is reversed.
With respect to share-based payments, a deferred tax asset is recognised on the
relevant tax base. The tax base is then compared to the cumulative share-based
payment expense recognised in the income statement. Deferred tax arising on the
excess of the tax base over the cumulative share-based payment expense recognised
in the income statement has been recognised directly in equity outside the SOCI as
share-based payments are considered to be transactions with shareholders.
Where the Company grants options over its own shares to employees of its
subsidiaries it recognises, in its individual financial statements, an increase in the cost
of investment in its subsidiaries equivalent to the equity settled share-based payment
charge recognised in its consolidated financial statements, with the corresponding
credit being recognised in equity.
Employment costs, including directors, comprised:
2026
£m
2025
£m
Wages and salaries 13.5 11.0
Social security 1.4 1.4
Pension costs 0.4 0.3
Share-based payments 2.4 2.4
17.7 15.1
The average number of persons employed, including Directors, during the year was:
2026
Number
2025
Number
Administrative 52 38
52 38
The majority of the costs of the Company’s employees are charged to the other
Group companies.
2. Investments in subsidiaries
Investments in subsidiaries
Interests in subsidiary undertakings are valued in the Company financial statements
at cost less impairment, which is reviewed annually.
The subsidiary undertakings in which the Company has interests are incorporated
inEngland and Wales. In each case their principal activity is related to housebuilding.
Further details are included in Subsidiaries, associates and joint ventures.
Where Bellway owns 100% of the voting rights of a business, the company is considered
tobe controlled by Bellway and is treated as a subsidiary.
The Company had the following investments in subsidiaries at 31 July:
2026
£m
2025
£m
Subsidiary undertakings
Interest in subsidiary undertakings’ shares at cost 57.7 54.5
57.7 54.5
The increase in interest in subsidiary undertakings in the year is related to share-based
payments. The Directors believe that the carrying value of the investments is supported
bytheir underlying net assets.
At the balance sheet date, the Company had no interests in joint ventures.
3. Trade and other receivables
Trade and other receivables
Trade and other receivables are stated at their fair value at the date of initial
recognition and subsequently at amortised cost less allowances for impairment.
The loss allowance for amounts owed by subsidiary undertakings is equal to the
12-month expected credit loss unless there has been a significant increase in credit
risk since the date of initial recognition, in which case the loss allowance is equal
tothelifetime expected credit loss. A significant increase in credit risk is deemed
tohave occurred if a review of available information indicates an increased probability
of default.
Non-current receivables
2026
£m
2025
£m
Amounts due from subsidiary undertakings 402.5 419.4
402.5 419.4
Bellway p.l.c. Annual Report and Accounts 2026 180GovernanceStrategic Report Accounts Other Information
Notes to the Company Financial Statements (continued)
3. Trade and other receivables (continued)
Current receivables
2026
£m
2025
£m
Amounts due from subsidiary undertakings 87.2 84.8
Prepayments and accrued income 1.0 0.8
88.2 85.6
Amounts due from Group undertakings are unsecured, repayable on demand and are
interest bearing. Amounts expected to be repaid within the next 12 months are shown
as current.
The Company has assessed expected credit losses and the loss allowance for amounts
duefrom subsidiary undertakings as immaterial.
4. Trade and other payables
Trade and other payables
Trade and other payables on normal terms are not interest-bearing and are stated
attheir nominal value.
Current liabilities
2026
£m
2025
£m
Social security and other taxes 0.7 0.8
Other payables 0.2 0.3
Accruals 6.0 19.8
Share buyback obligation 11.1 –
18.0 20.9
On 2 April 2026, the Company entered into a share buyback programme to purchase up
to£75.0 million of shares as part of Tranche 2 of the initial share buyback programme.
The remaining share buyback of £11.1 million outstanding at 31 July 2026 was recognised
asafinancial liability as the agreement was irrevocable at the year end. The share buyback
obligation was fully satisfied by 28 August 2026.
5. Contingent liabilities and commitments
Contingent liabilities of the Company are disclosed unless the possibility of an outflow
in settlement is remote.
Where the Company enters into financial guarantee contracts to guarantee the
indebtedness of joint arrangements and other companies within the Group,
theCompany has elected to account for these by applying IFRS 9.
On 30 October 2025 the Competition and Markets Authority (CMA) made a decision to
close its investigation into information sharing practices in the sector following binding
commitments from certain housebuilders and a requirement for the housebuilders to work
with industry bodies to develop and publish industry-wide UK competition law guidance for
the wider sector. The CMA did not find that the Competition Act 1998 had been infringed,
andtheacceptance of commitments did not involve any admission of wrongdoing by
the housebuilders.
An application to commence a proposed collective class action was filed in the Competition
Appeal Tribunal on 24 June 2026 against seven major housebuilders, including Bellway.
The application alleges that exchanges of competitively sensitive information breached
competition law, affected competition and resulted in higher prices for certain purchasers
ofnew-build homes. The application states it is informed by the CMA decision referred
toabove. The proposed collective action remains at a very early stage and, as a result,
itisnot yet possible to assess the likely outcome. Accordingly, no provision has been
recognised in respect of the proposed action.
Guarantees 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 2026 is immaterial (2025: immaterial).
Subsidiary audit exemption
For the year ended 31 July 2026, the Group has chosen to take advantage of the audit
exemption for the following subsidiary undertakings by virtue of a parent company
guarantee under Section 479A of the Companies Act 2006.
Subsidiary Company number
Bellway Properties Limited 01781361
Bellway Joint Ventures Limited 16299911
Litrose Investments Limited 00897216
The subsidiaries are 100% owned, either directly or indirectly, by Bellway p.l.c.
which hasprovided a statutory guarantee under Section 479C of the Companies Act 2006,
guaranteeing all outstanding liabilities to which the subsidiary is subject at the end of the
financial year until they are satisfied in full.
Commitments
The Company has no outstanding commitments.
Bellway p.l.c. Annual Report and Accounts 2026 181GovernanceStrategic Report Accounts Other Information
Notes to the Company Financial Statements (continued)
6. Issued capital
Classification of equity instruments and financial
liabilities issued by the Company
Equity instruments issued by the Company are treated as equity only to the extent
that they meet the following two conditions:
(a) they include no contractual obligations upon the Company to deliver cash or other
financial assets or to exchange financial assets or financial liabilities with another
party under conditions that are potentially unfavourable to the Company; and
(b) where the instrument will or may be settled in the Company’s own equity
instruments, it is either a non-derivative that includes no obligation to deliver a
variable number of the Company’s own equity instruments or is a derivative that will
be settled by the Company’s exchanging a fixed amount of cash or other financial
assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as
afinancial liability. Where the instrument so classified takes the legal form of the
Company’s own shares, the amounts presented in these financial statements for called
up share capital and share premium exclude amounts in relation to those shares.
2026
Number
000
2026
£m
2025
Number
000
2025
£m
Allotted, called up and fully paid
12.5pordinary shares
At start of year 118,992 14.8 118,980 14.8
Issued on exercise of options 316 – 12 –
Buyback and cancellation of shares (6,334) (0.8) – –
At end of year 112,974 14.0 118,992 14.8
The holders of ordinary shares are entitled to receive dividends as declared from time
totime and are entitled to one vote per share at meetings of the Company.
During the year, the Company purchased 6,334,139 of its own ordinary shares for a total
consideration of £139.8 million, including transaction costs of £0.9 million, as part of the
£150.0 million initial share buyback programme entered into on 14 October 2025 and
completed on 28 August 2026. During the year 6,334,139 shares were cancelled and nil
wereheld in treasury by the Company. As the programme was irrevocable at 31 July 2026,
£11.1 million of the remaining total consideration was recognised as a financial liability.
7. Reserves
Own shares held by ESOP trust
The purchase of shares in the Company by the trust are charged directly to equity.
Share premium
This reserve is not distributable.
Own shares held
The Company holds shares within the Bellway Employee Share Trust (1992) (the Trust),
onwhich dividends have been waived, for participants of certain share-based payment
schemes as outlined in note 23 in the Group financial statements. The cost of these is
charged to retained earnings.
2026
Number
2025
Number
At start of year 370,097 326,114
Transferred to employees or Directors (124,993) (1,000)
Shares purchased 218,893 44,983
At end of year 463,997 370,097
2026
£m
2025
£m
Cost of shares held in the Trust 12.0 9.8
Market value of shares held in the Trust 9.2 9.2
Capital redemption reserve
On 7 April 2014 the Company redeemed 20,000,000 £1 preference shares, being all of the
preference shares in issue. An amount of £20.0 million, equivalent to the nominal value of
the shares redeemed, was transferred to a capital redemption reserve on the same date.
Over the course of the calendar year 2023 the Company purchased 4,560,057 of its own
shares which it cancelled. On cancellation of the shares, the aggregate nominal value of
£0.6 million was transferred from issued capital to the capital redemption reserve.
During FY26, the Company purchased 6,334,139 of its own shares as part of the initial share
buyback programme, which were cancelled. On cancellation of the shares, the aggregate
nominal value of £0.8 million was transferred from issued share capital to the capital
redemption reserve.
This reserve is not distributable.
2026
£m
2025
£m
At start of year 20.6 20.6
Amounts transferred in respect of own shares purchased
andcancelled during the year 0.8 –
At end of year 21.4 20.6
Bellway p.l.c. Annual Report and Accounts 2026 182GovernanceStrategic Report Accounts Other Information
8. Dividends on equity shares
Dividends
Dividends on equity shares are recognised as a liability in the period in which they are
approved by the shareholders. Interim dividends are recognised when paid.
2026
£m
2025
£m
Amounts recognised as distributions to equity holders
in the year:
Final dividend for the year ended 31 July 2025 of 49.0p
per share (2024: 38.0p) 57.6 45.1
Interim dividend for the year ended 31 July 2026 of 23.0p
per share (2025: 21.0p) 26.3 24.9
83.9 70.0
Proposed final dividend for the year ended 31 July 2026 of 52.0p
per share (2025: 49.0p) 58.5 58.1
The 2026 proposed final dividend is subject to approval by shareholders at the Annual
General Meeting on 26 November 2026 and, in accordance with IAS 10 ‘Events after the
Reporting Period’, has not been included as a liability in these financial statements.
In relation to shares held by the Bellway Employee Share Trust (1992) (the Trust) dividends
have been waived (see note 7).
The level of distributable reserves are sufficient in comparison to the proposed dividend.
Notes to the Company Financial Statements (continued)
9. Post balance sheet events
Share buyback
The Board has approved a return of £75 million surplus capital to shareholders, through
theinitial tranche of the Second Share Buyback Programme, with contract terms agreed
on1 September 2026 and amended solely to increase the size from £50 million to £75 million,
on 12 October 2026. As set out in the Chair’s Statement, the full value of the Second Share
Buyback Programme, which will cover FY27, is £150 million.
Acquisition of Llanmoor Development Co. Limited
The Group acquired 100% of both the ordinary and preference share capital of Llanmoor
Development Co. Limited on 30 September 2026 for consideration of £40.4 million, payableover
3 years. As this transaction was very recent the acquisition accounting has not yet been
completed. In line with IFRS 3 ‘Business Combinations’, the acquisition accounting willbe
finalised within 12 months of the acquisition date.
Bellway p.l.c. Annual Report and Accounts 2026 183GovernanceStrategic Report Accounts Other Information
Subsidiaries, associates and joint ventures
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
Other entities
Artex Axcell (Guernsey) PCC Limited (formerly Artex Insurance (Guernsey) PCC Limited)
c
Notes:
* Dormant
** These shares are held indirectly.
a Registered address is Persimmon House, Fulford, York, YO19 4FE
b Registered address is One Eleven, Edmund Street, Birmingham, B3 2HJ
c Registered address is PO Box 230, Heritage Hall, Le Marchant Street, St Peter Port, Guernsey, GY1 4JH
Group undertakings
The Directors set out below information relating to the Group undertakings (excluding
resident management companies) as at 31 July 2026. All of these Group undertakings are
registered in England and Wales unless otherwise stated. They are engaged in housebuilding
and associated activities, have coterminous year ends with the Group, 100% of their ordinary
share capital is held by the Company and the registered address is the same as the
Company (unless otherwise stated).
Where Bellway owns 100% of the voting rights of a business, the company is considered
to be controlled by Bellway and is treated as a subsidiary.
Subsidiaries – trading
Bellway Homes Limited
Bellway Housing Trust Limited
Bellway Properties Limited
Bellway (Services) Limited
Litrose Investments Limited
Bellway Home Space Limited
Woolsington One Limited**
Ashberry Strategic Land Limited**
Bellway Joint Ventures Limited**
Fradley Residential LLP**
Joint arrangements
Cramlington Developments Limited (50% owned, year end of 30 June)**
a
Leebell Developments Limited (50% owned, year end of 30 June)**
a
Ponton Road LLP (50% owned)**
Lambeth Regeneration LLP (50% owned)**
Bellway Latimer Cherry Hinton LLP (50% owned)**
Langley Sustainable Urban Extension Limited (33% owned)**
b
Bellway p.l.c. Annual Report and Accounts 2026 184GovernanceStrategic Report Accounts Other Information
Subsidiaries, associates and joint ventures (continued)
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 2026.
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.
For each address listed below the following resident management companies are registered at said address.
Cheviot House, Beaminster Way East,
Newcastle Upon Tyne, England, NE3 2ER
– Meadow Rise (Heighington) Management Company Limited
– Wellfield Rise Residents Management Company Limited
– Abbey Heights Residents Management Company Limited
– Burdon Rise Residents Management Company Limited
– St Mary’s Stannington Management Company Limited
– The Grange (Fenham) Resident Management Company Limited
– Woodgreen (Blyth) Residents Management Company Limited
– Modello Residents Management Company Limited
– Whitworth View Residents Management Company Limited
– Barton Meadows Residents Management Company Limited
– Clarence Gate Residents Management Company Limited
– East Middle Callerton Residents Management Company Limited
– Jameson Manor Residents Management Company Limited
– The Avenue (Medburn) Residents Management Company Limited
– Falcon Grove Management Company Limited
– Castlegate (Skelton) Management Company Limited
1 Bow Churchyard, London,
United Kingdom, EC4M 9DQ
– Broadleaf Management Company Limited
– Broadleaf Ashby Management Company Limited
– Waltham Heights Resident’s Management Company Limited
– Clavering Park Management Company Limited
1 Cunard Square, Chelmsford,
Essex CM1 1AQ
– Larks Place Apartments Management Company Limited
– Maplewood Grove (Dunmow) Management Company Limited
10 Queen Street Place, London,
United Kingdom, EC4R 1AG
– The Green (Solihull) Management Company Limited
137 Newhall Street, Birmingham,
England, B3 1SF
– Lakeside Park Management Company Limited
– Foxmill Gardens (Willand) Management Company Limited
13a, Building Two, Canonbury Yard, 190 New North Road,
London, England, N1 7BJ
– Redlands Grove Management Limited
– Lavender Rise Management Company Limited
– Libbets Grange Management Company Limited
– Flowers Hill (Brislington) Management Company Limited
19 Highfield Road, Edgbaston, Birmingham,
England, B15 3BH
– Meridian South Block E Management Limited
1st Floor, 2540 The Quadrant Aztec West, Almondsbury,
Bristol, England, BS32 4AQ
– Mead Fields (Phase 2) Weston Parklands Management Company Limited
– Berwick Green Bristol Management Company Limited
Bellway p.l.c. Annual Report and Accounts 2026 185GovernanceStrategic Report Accounts Other Information
Subsidiaries, associates and joint ventures (continued)
Resident management companies (continued)
2 Centro Place, Pride Park, Derby, Derbyshire,
United Kingdom, DE24 8RF
– Hartside View (Hartlepool) Residents Management Company Limited
– Hazelrigg Residents Management Company Limited
– Roman Fields (Corbridge) Management Company Limited
– Forster Park (Stevenage) Residents Management Company Ltd
– Boorley Gardens Residents Management Company Limited
23 Mark Road, Hemel Hempstead,
Hertfordshire, England, HP2 7DN
– Ebbsfleet Cross (Phase 2) Management Company Limited
25 Carfax, Horsham,
West Sussex, RH12 1EE
– Solomon’s Seal (Horsham) Management Company Limited
3 Romulus Court Meridian Business Park, Braunstone Town,
Leicester, United Kingdom, LE19 1YG
– The Foresters Management Company Limited
30 Tower View, Kings Hill, West Malling,
Kent, ME19 4UY
– Navigators Walk Management Company Limited
– Wakeley Meadow (Rainham) Residents Management Company Limited
– Wodbury Manor Management Company Limited
– De Havilland Place (Kings Hill) Management Company Limited
– Porters Grove (St. Leonards) Management Company Limited
– Willowbrook (Iwade) Management Company Limited
33 Station Road, Rainham,
Gillingham, England, ME8 7RS
– Sixty Three Management Company Limited
406a Birmingham Road,
Sutton Coldfield, England, B72 1YJ
Chalfont Drive Residents Management Company Limited
506 Premier Block Management Centennial Avenue,
Elstree, Borehamwood, England, WD6 3FG
The Foundry (Hemel Hempstead) Management Company Limited
59 Coton Road, Nuneaton,
England, CV11 5TS
– Forest Oak Management Company Limited
7 Bohemia Place, Fordham,
Cambridgeshire, CB7 5XJ
– Bassingbourn Fields Management Company Limited
8 Hemmells, Basildon, Essex,
England, SS15 6ED
– Dunton Fields (Laindon) Management Company Limited
– Renovo (West Thurrock) Management Company Limited
80 Mount Street, Nottingham,
Nottinghamshire, England, NG1 6HH
– The Coppice Heights & Amber Rise Management Company Limited
– Roman Gate (Melton Mowbray) Management Company Limited
– The Abbey Fields Grange Management Company Limited
– The Gateford Quarter Management Company Limited
8th Floor Holborn Tower, 137–144 High Holborn,
London, United Kingdom, WC1V 6PL
– Fielders Quarter Phase 3 (209A) Management Company Limited
– Fielders Quarter Phase 4 (209B) Management Company Limited
– Fielders Quarter Phase 5 (208A) Management Company Limited
– Marconi (Chelmsford) Management Company Limited
– Fielders Crescent Management Company Limited
– Beckton Parkside Management Company Limited
– Copperhouse Green Management Company Limited
– Crossways Quarter Management Company Limited
– Eastside Quarter Management Company Limited
– Legacy Wharf Management Company Limited
– The Residence (Phase 2) Management Company Limited
– Maybrey Works Management Company Limited
– The Residence (Nine Elms) Management Company Limited
– Eastbrook Village East Phase 2 (Site H) Management Company Limited
For each address listed below the following resident management companies are registered at said address.
Bellway p.l.c. Annual Report and Accounts 2026 186GovernanceStrategic Report Accounts Other Information
Subsidiaries, associates and joint ventures (continued)
Resident management companies (continued)
95 London Road, Croydon,
Surrey, England, CR0 2RF
– Ladden Garden Village Pl 24–27 (Leasehold Apartments) Management Company Limited
– Digby Court (Birmingham) Management Company Limited
– Meridian South Blocks A & B Management Limited
– Mulberry Park Apartments (Management Company) Limited
– Weavers Meadow (Trowbridge) Management Company Limited
A5 Optimum Business Park, Unit A5, Swadlincote,
Derbyshire, United Kingdom, DE11 0WT
– Empress Gardens (Tiverton) Management Company Limited
Bellway Homes Limited (East Midlands) Romulus Court,
Meridian East, Leicester, United Kingdom, LE19 1YG
– Willow Rise Management Company Limited
– Hugglescote Grange Management Company Limited
– The Wickets Management Company Limited
– Ashlands and Brierley View Management Company Limited
– Swinfen Vale Management Company Limited
– Echelon Management Company Limited
– Treetops, Cossington Management Company Limited
Bellway Homes Limited (South West), First Floor,
2540 Aztec West, Bristol, United Kingdom, BS32 4AQ
– Malvern Chase (Tewkesbury) Management Company Limited
– Tigermoth Fields Management Company Limited
– Lock Keeper Gardens Management Company Limited
– Celtic Gardens Management Company Limited
Bellway Homes Limited (North East) Bellway House, Kings Park,
Kingsway North, Gateshead, Tyne And Wear, United Kingdom, NE11 0JH
– DH1 Resident Management Company Limited
– Western Grange Residents Management Company Limited
– Autumn Ford Management Company Limited
Bellway Homes Limited Alexander House, Rainton Bridge Business Park,
Houghton Le Spring, United Kingdom, DH4 5RA
– Baydale Village Residents Management Company Limited
– The Old Foundry Residents Management Company Limited
Bellway Homes Limited (Thames Valley) Imperium, Imperial Way,
Reading, United Kingdom, RG2 0TD
– Montem Square Management Company Limited
Bellway Homes Limited (West Midlands) 1 Centurion Court, Centurion Way, Wilnecote,
Tamworth, Staffordshire, United Kingdom, B77 5PN
– Astley Management Company Limited
– Arden Glade Residents Management Company Limited
Bellway Homes Limited (Yorkshire Division) First Floor, Unit 2150,
Century Way, Leeds, United Kingdom, LS15 8ZB
– Woodland Walk Hoyland Management Company Limited
Building 5 Caldecotte Lake, Caldecotte,
Milton Keynes, United Kingdom, MK7 8LE
– Brook Meadows Wixams Residents Management Company Limited
C/O Bellway Homes Limited (South London) 1st Floor, Regent House,
1–3 Queensway, Redhill, Surrey, United Kingdom, RH1 1QT
– Fallow Wood View (Burgess Hill) Residents Management Company Limited
– Elizabeth Square (Durrington) Residents Management Company Limited
– Perceval Grange Management Company Limited
C/O Gateway Property Management Limited Gateway House, 10 Coopers Way,
Southend-On-Sea, Essex, United Kingdom, SS2 5TE
– Bluebell Walk (Harrietsham) Management Company Ltd
– Crown Fields (Chatham) Management Company Ltd
– West End Quarter (Folkestone) Management Company Limited
– Gloster Chase Management Company Limited
– Westland Place Management Company Limited
– Lion Wharf (Isleworth) Management Company Limited
– Millworks, K Langley Management Company Limited
– St James Park (Parcels B and C) Management Company Limited
– St James Park (Parcel G) Management Company Limited
For each address listed below the following resident management companies are registered at said address.
Bellway p.l.c. Annual Report and Accounts 2026 187GovernanceStrategic Report Accounts Other Information
Subsidiaries, associates and joint ventures (continued)
Resident management companies (continued)
C/O Mlm Property Management 2nd Floor, Premiere House, Elstree Way,
Borehamwood, United Kingdom, WD6 1JH
– Whitehill Gardens Residential Management Company Limited
– The Vickers (Witchford) Residents Management Company Limited
– Cortlands Management Company Limited
– Stilton Gate Management Company Limited
– Pinewood Grange (Stowmarket) Management Company Limited
– Elder Brook Residential Management Company Limited
– Ivy Hill Residential Management Company Limited
– Primrose Grove Management Company Limited
– Pinchbeck Fields Management Company Limited
– The Willows Residential Management Company Limited
– Barleywoods Residential Management Limited
C/O Rmg House, Essex Road,
Hoddesdon, United Kingdom, EN11 0DR
– Barton Quarter (Horwich) Residents Management Company Limited
– Old Brook View Residents Management Company Limited
– Royal Bowland Park Residents Management Company Limited
– The Brackens Residents Management Company Limited
– Trilogy Residents Management Company Limited
– Alderstone Park And Oakview Quarter (Great Ecclestone) Management Company Limited
– Dalesway (Harrogate) Management Company Limited
– Tranby Park Residential Management Company Limited
Unit 7 Portal Business Park, Eaton Lane,
Tarporley, England, CW6 9DL
– Heathlands Rmc Limited
– Snelsmoor Village Management Company Limited
– Greystone Meadows (Undy) Management Company Limited
– Mill Fields (Wingerworth) Management Company Limited
– Blenheim Green Management Company Limited
– Hopwood Meadows Residents Management Company Limited
– Harvino Residents Management Company Limited
– Kingsfleet Park (Trimley St. Martin) Management Company Limited
– Bicknor Wood Ltd
Unit 7 Portal Business Park, Eaton Lane,
Tarporley, England, CW6 9DL
– Parsonage Place (Otham) Management Company Limited
– Oxenden Park (Thornden Wood) Management Company Limited
– Pirton Fields (Churchdown) Management Company Limited
– Phase 1A Parc Mawr (Penllergaer) Management Company Limited
– Coed Derw Management Company Limited
– Forest Walk (Lydney) Management Company Limited
– Hawthorn Park (Hempsted) Management Company Limited
– Northdene Residents Management Company Limited
– Centurion Chase Management Company Limited
– Elemore Resident Management Company Limited
– Brackley Village Residents Management Company Limited
– Park Gate Village Residents Management Company Limited
– Weaver Green Residents Management Company Limited
– Maes Y Rhedyn Fern Meadow Residents Management Company Limited
– Rose Meadow (Northwich) Residents Management Company Limited
– Cotton Woods (Preston) Residents Management Company Limited
– St Wilfrid’s Place (Litherland) Residents Management Company Limited
– Somerford Gate (Congleton) Residents Management Company Limited
– Arrowe Brook Park (Greasby) Residents Management Company Limited
– Jellicoe Gardens (Moreton) Residents Management Company Limited
– Plummers Meadow (Halewood) Residents Management Company Limited
– Summers Bridge (SAB) Management Limited
– Summers Bridge Residents Management Company Limited
– Lydiate Gate Residents Management Company Limited
– Halewood Oaks Resident Management Company Limited
– Lathom Pastures Residents Management Company Limited
– Imperial Gardens (Howden) Management Company Limited
– Millstone Park Residents Management Company Limited
– Lancaster Gardens Boroughbridge management Company Limited
For each address listed below the following resident management companies are registered at said address.
Bellway p.l.c. Annual Report and Accounts 2026 188GovernanceStrategic Report Accounts Other Information
Subsidiaries, associates and joint ventures (continued)
Resident management companies (continued)
Fisher House, 84 Fisherton Street,
Salisbury, England, SP2 7QY
– Bower Place Management Company Limited
– The Furrows (Warboys) Residents Management Company Limited
– Eve Meadows (Haughley) Management Company Limited
– The Oaks (Witham) Management Company Limited
– New Gimsons Place (Witham) Management Company Limited
– Ridleys Orchard (Whitton) Management Company Limited
– Lockwood Place (Bramford) Management Company Limited
– Sapphire Fields & Beaumont Park Management Company Limited
– Great Dunmow Grange Management Company Limited
– Francis Gardens (Silver End) Management Company Limited
– Rectory Fields (Witham) Management Company Limited
– Fonnereau (Estate) Management Company Limited
– Westerfield Grove Management Company Limited
– Liberty Quarter Management Company Limited
– Abbotswood Park Management Company Limited
– Amen Corner (Binfield) Management Company Limited
– Rosedale Park Management Company Limited
– Kingsreach (Slough) Management Company Limited
– Bridleway Grange Residents Management Company Limited
– Copperfields Residents Management Company Limited
– Hazel Fold Residents Management Company Limited
– High Point Residents Management Company Limited
– Westminster Road Management Company Limited
– Neptune Residents Management Company Limited
– St Oswald’s Place Residents Management Company Limited
– The Academy Residents Management Company Limited
– The Mount Prestwich Residents Management Company Limited
– Rainbow Fields (Waddicar) Management Company Limited
– Earlsfield Park (Knowsley) Management Company Limited
– New Cardington Hangars Block Residents Management Company Limited
– New Cardington Hangars Estate Residents Management Company Limited
– Chestnut Vale Residents Management Company Limited
– Elmfield Green (Billingshurst) Management Company Limited
– Renaissance (Reading) Management Company Limited
– Huntercombe Walk (Taplow) Management Company Limited
– Belmont Park (Maidenhead) Management Company Limited
– Sky Plaza (Farnborough) Management Company Limited
– Bellway at Rosewood Management Company Limited
– Cathedral Park (Chichester) Management Company Limited
– Windgreen Gardens Management Company Limited
– St Mary’s Hill (Blandford) Management Company Limited
– Rookery Park Management Company Limited
– Barley Fields (Tamworth) Management Company Limited
– Baswich Grange Management Company Limited
– The Spinney (Oteley Road) Management Company Limited
One Eleven, Edmund Street,
Birmingham, United Kingdom, B3 2HJ
– Mousley Park Hilton Management Company Limited
– Curzon Park (Residents) Management Company Limited
– Cuttle Brook Management Company Ltd
– The Vale (Bottesford) Management Company Limited
– Stoughton Park Management Company Limited
– Elements Residents Management Company Limited
– Grey Gables Farm Residents Management Company Limited
– Sandstone Brook Residents Management Company Limited
For each address listed below the following resident management companies are registered at said address.
Bellway p.l.c. Annual Report and Accounts 2026 189GovernanceStrategic Report Accounts Other Information
Subsidiaries, associates and joint ventures (continued)
Resident management companies (continued)
Queensway House, 11 Queensway, New Milton,
Hampshire, England, BH25 5NR
– Kingswood Heath (Colchester) Management Company Limited
– Aspen Apartments (Colchester) Management Company Limited
– Buckland Rise (Peters Village) Management Company Ltd
– Lysander Fields Management Company Limited
– Oakley Park (Edenbridge) Management Company Limited
– Kingfisher Green (Rainham) Management Company Limited
– Dacres Wood Court Management Company Limited
– St. James Mews (Charfield) Management Company Limited
– Wavendon View Residents Management Company Limited
– Helliers Lane (Cheddar) Management Company Limited
– Quantock Heights (Banwell) Management Company Limited
– Mead Fields Phase 2 (Leasehold Apartments) Management Company Limited
– Marlborough Road Wroughton (Swindon) Management Company Limited
– Brambleside Management Company Limited
– Foxlow Grange Berryfields Management Company Limited
– Walton Park Management Company Limited
– Kingsland Gate Management Company Limited
– Chestnut Grove (Ash Green) Management Company Limited
– Woodcroft Park Management Company Limited
– Sovereign Place (Horley) Management Company Limited
– Ebbsfleet Cross Management Company Limited
– Victoria Gardens (Peters Village) Management Company Limited
– The Alders (Wolverhampton) Management Company Limited
– Dove Manor Management Company Limited
– Mallard Walk Management Company Limited
– The Oaks (Parsons Hill) Management Company Limited
– The Pastures (Telford) Management Company Limited
– The Long Shoot Management Company Limited
Unit 14 Portal Business Park, Eaton Lane,
Tarporley, Cheshire, United Kingdom, CW6 9DL
– Old R Chace Management Company Limited
– K George’s Vale (Cuffley) Management Company Limited
– Euxton Heights Residents Management Company Limited
– The Landings Residents Management Company Limited
– Q Gate and Jubilee Place Management Company Limited
– Staverton Lodge Residents Management Company Limited
– Barleycorn Way Residents Management Company Limited
– Parsons Croft Management Company Limited
– Penny Way Snaith Management Company Limited
Vantage Point, 23 Mark Road, Hemel Hempstead,
Hertfordshire, England, HP2 7DN
– The Orchards (Colchester) Management Company Limited
– The Furlongs (Gt/ Leighs) Management Company Limited
– Henderson Park (Thorpe le Soken) Management Company Limited
– Saxon Heath (Marham Park) Management Company Limited
– Willow Park (Halstead) Management Company Limited
– Aspen Walk (Eight Ash Green) Management Company Limited
– Oakfields Park (Halstead) Management Company Limited
– Hollytree Walk (Colchester) Management Company Limited
– Beaulieu Grange (Chelmsford) Management Company Limited
– Alkerden Heights (Parcel 5a) Management Company Limited
– Whitehouse Park Residents Management Company Limited
– Badbury Reach Management Company Limited
– Brookvale Management Company Limited
– Hawthorne Rise Management Company Limited
– Poppy View (Saffron Walden) Management Company Limited
– Helios Park Management Company Limited
– Linmere Management Company Limited
– Tattenhoe Park (Parcel 4) Management Company Limited
– Linmere Gateway Management Company Limited
For each address listed below the following resident management companies are registered at said address.
Bellway p.l.c. Annual Report and Accounts 2026 190GovernanceStrategic Report Accounts Other Information
Subsidiaries, associates and joint ventures (continued)
Resident management companies (continued)
Vantage Point, 23 Mark Road, Hemel Hempstead,
Hertfordshire, England, HP2 7DN
– Moreton Fields (Buckingham) Residents Management Company Limited
– Wellington Gardens (Aldershot) Management Company Limited
– The Ridgeway (Chinnor) Management Company Limited**
– Hampden Gardens (Thame) Management Company Limited
– Langford Park Management Company Limited
– Keephatch Gardens (Wokingham) Management Company Limited
– Chailey Gardens Management Limited
– Fairfields (Calcot) Management Company Limited
– Forest Chase Management Company Ltd
– Greensands Management Company Limited
– Old Forest Road (Winnersh) Management Company Limited
– Yew Tree Gardens (Cholsey) Management Company Limited
– The Printworks (Reading) Residents Management Company Limited
– Long Acre (Shinfield) Management Company Limited
– Poppy Fields (Cholsey) Management Company Limited
– Wildflower Meadow Limited
– Silkmakers Court Management Company Limited
– Phoenix Park (Thame) Management Company Limited
– Yellowfields Phase 3B Management Company Limited
– Cooper Square (Maidenhead) Management Company Limited
– Poppy Fields (Cholsey) Flats Management Company Limited
– Chilsey Grange Phase 2 Management Company Limited
– Spires View (Old Marston) Management Company Limited
– Carters Caversham Management Company Reading Limited
– Watchman’s Place Management Company Limited
– The Atrium Residents Management Company Limited
– Devonshire Place (Grays) Management Company Limited
– Harbour Village (Ebbsfleet) Management Company Limited
– Highlands Grange Management Company Limited
– Maple Creek Management Company Limited
– Roe Wood Park Management Company Limited
– St. George’s Park Management Company Limited
– St. George’s Park (Phase 2) Management Company Limited
– Westcombe Park (Heybridge) Management Company Limited
– Azalea (Medstead) Management Company Limited
– Cornelia Gardens Management Limited
– Fellows Gardens Management Limited
– Halyards Residents Limited
– Holmwood Residents Limited
– Latitude Residents Limited
– Longwood Copse Residents Limited
– Montague Green (Rowland’s Castle) Management Company Limited
– Pipits Residents Limited
– Roman Walk Residents Limited
– The Chase Residents Limited
– The Haven (Emsworth) Management Company Limited
– Harnham Park Management Company Limited
– Longfield Place (Sherfield) Management Company Limited
– Corallian Heights Management Company Limited
– Spindrift Park (Pagham) Residents Management Company Limited
– Kingsmere Park (West Parley) Management Company Limited
– Spirewood Grange (Rowbarrow) Management Company Limited
Woolsington House International Drive, Woolsington,
Newcastle Upon Tyne, England, NE13 8BF
– Summerhill View Management Company Limited
– The Withers (Netherton) Residents Management Company Limited
– Narrowboat View Residents Management Company Limited
For each address listed below the following resident management companies are registered at said address.
Bellway p.l.c. Annual Report and Accounts 2026 191GovernanceStrategic Report Accounts Other Information
Resident management companies (continued)
Subsidiaries, associates and joint ventures (continued)
North Point Stafford Drive, Battlefield Enterprise Park,
Shrewsbury, Shropshire, UK, SY1 3BF
– Merchants Gate Cottingham Limited
– Rowley Fields Residents Management Company Limited
– Wellington Grange (Pocklington) Management Limited
– Goodsyard (No 1) Management Company Limited
– Waterside At Riverwell (Block E) Management Company Limited
– Furlong Park Residents Management Company Limited
– St John’s View (Menston) Management Company Limited
– Longholme Park Residents Management Company Limited
– Poppy Field Residents Management Company Limited
– Wolds View Residents Management Company Limited
– Long Lane (Beverley) Management Company Limited
– Clifford Gardens (Skipton) Management Company Limited
– Buttercross Meadows (Brigg) Management Company Limited
Cumberland Court, 80 Mount Street, Nottingham
Nottinghamshire, United Kingdom, NG1 6HH
– Darwins Edge Management Company Limited
– Victoria Gate and Place Management Company Limited
– Yew Tree Park Management Company Limited
– Penmire Rise Management Company Limited
– Rolleston Manor Management Company Limited
– Sheasby Park Management Company Limited
– Tidbury Heights Management Company Limited
– Cecilly Mills Management Company Limited
– Copthorne Keep Management Company Limited
– Lucas Green Management Company Limited
– Hardintone Court Management Company Limited
– Barton Manor (Barton) Management Company Limited
– Cherry Orchard (Bevere) Management Company Limited
– Sandwell College Management Company Limited
– Dickens Manor Management Company Limited
– Chamberlains Bridge Management Company Limited
– Farriers Court Residents Management Company Limited
– Sharnbrook Park Residents Management Company Limited
– Hartshorne Residents Management Company Limited
– Hawksley Grange Management Company Limited
– Chamberlains Heath Residents Management Company Limited
– Linmere Mews Residents Management Company Limited
One, Station Approach, Harlow,
Essex, England, CM20 2FB
– Scholars Place Management Company Limited
– Linkside (Burton) Management Company Limited
– North Abingdon Management Company Limited
– Cherry Meadow & Hatton Court Management Company Limited
– Steeple Chase (Frisby) Management Company Limited
– Lockharts Rmc Limited
– The Woodlands (Watnall) Management Company Limited
C/O Pod Group Services Limited First Floor, Unit 1, Elstree Gate, Elstree Way,
Borehamwood, Hertfordshire, United Kingdom, WD6 1JD
– Hatfield Grove (Hatfield Peverel) Management Company Limited
– QE2 (Welwyn Garden City) Management Company Limited
– Hellingly (Hailsham) Management Company Limited
– Priory Grange (Hatfield Peverel) Management Company Limited
– Hall Road (Rochford) Management Company Limited
– Novello Management Company Limited
Address: Castleman Business Centre, Embankment Way,
Ringwood, England, BH24 1EU
– Pasture Walk Management Company Limited
– Meridian South Blocks C and D Management Limited
– Meridian South Block H Management Limited
Regent House, 1–3 Queensway,
Redhill, United Kingdom, RH1 1QT
– Oakhill Meadow Management Company Limited
– Highwoods View Management Company Ltd
For each address listed below the following resident management companies are registered at said address.
Bellway p.l.c. Annual Report and Accounts 2026 192GovernanceStrategic Report Accounts Other Information
Subsidiaries, associates and joint ventures (continued)
Dulce Domum Alma Road, Eton Wick, Windsor,
Berkshire, United Kingdom, SL4 6JZ
– Cavendish Grove (Raynes Park) Residents Management Company Limited
– Riverbrook Place (Crawley) Management Company Limited
– Indigo Park (Chichester) Management Company Limited
– Abingworth Meadows Management Company Limited
The Estate Office, 5 Brunel Business Court,
Bury St. Edmunds, Suffolk, England, IP32 7AJ
– Bluebells (Witham) Management Company Limited
– Bourne View (Ipswich) Management Company Limited
C/O Rendall & Rittner Limited, 13b St. George Wharf,
London, England, SW8 2LE
– Nightingale Rise (Hoo) Management Company Limited
The Walbrook Building, 25 Walbrook,
London, United Kingdom, EC4N 8AF
– Cornfield’s Residents Management Company Limited
Citygate, St. James Boulevard,
Newcastle Upon Tyne, NE1 4JE
– Wellesley Residents Trust Limited
Homer House, 8 Homer Road, Solihull,
West Midlands, England, B91 3QQ
– Amblehurst Green (Billingshurst) Management Company Limited
Imperium, Imperial Way, Reading,
Berkshire, United Kingdom, RG2 0TD
– Chilsey Grange Management Company Limited
– The Meadows Residents Management Company Limited
Gateway House, 10 Coopers Way,
Southend-On-Sea, Essex, England, SS2 5TE
– Bluenote Apartments Management Company Limited
– Westbrook Moorings Management Company Limited
New Kings Court Tollgate, Chandler’s Ford, Eastleigh,
Hampshire, United Kingdom, SO53 3LG
– Latitude Residents No 3 Limited
– Oxlease Residents Limited
C/O Green Agent Management, Bartle House, 9 Oxford Court,
Manchester, England, M2 3WQ
– Holtvale Residents Management Company Limited
– Mountain View Residents Management Company Limited
Woodland Place Wickford Business Park, Hurricane Way,
Wickford, England, SS11 8YB
– Seaford Grange (Newlands) Management Company Limited
Iv Property Management Ltd 3rd Floor, 86–90 Paul Street,
London, England, EC2A 4NE
– Tylman Place (Faversham) Management Company Limited
Jfm Block Management Limited, College Road, Harrow,
Greater London, England, HA1 1BQ
– Eastbrook Village East Phase 1 (Site H) Management Company Limited
– Wickfields (Longwick) Management Company Limited
Sutherland House, 1759 London Road, Leigh On Sea,
Essex, United Kingdom, SwS9 2RZ
– Ikon (Croydon) Management Company Limited
– Sandstone Court (Merstham) Management Company Limited
Rh Seel & Co Limited, 8, Cathedral Road,
Cardiff, South Glamorgan,
– St Lythans Park (Culverhouse Cross) Management Company Limited
C/O Realty Management Ground Floor, Discovery House,
Crossley Road, Stockport, United Kingdom, SK4 5BH
– Langmead Place (Angmering) Management Company Limited
* Company is a 50/50 joint venture
** Company limited by shares wholly owned by Bellway Homes
*** Company limited by shares.
For each address listed below the following resident management companies are registered at said address.
Bellway p.l.c. Annual Report and Accounts 2026 193GovernanceStrategic Report Accounts Other Information
Other
Information
In this section
Five Year Record 195
Non-Financial and Sustainability
Information Statement 196
Glossary 197
Advisers and Company Secretary 199
Financial Calendar 200
Bellway p.l.c. Annual Report and Accounts 2026
194GovernanceStrategic Report Accounts Other Information
2022
£m
2023
£m
2024
£m
2025
£m
2026
£m
Income statement
Revenue 3,536.8 3,406.6 2,380.2 2,782.8 3,162.2
Operating profit1
1,2
653.2 543.9 238.1 303.5 320.6
Net finance expenses
1,2
(12.1) (9.9) (9.7) (12.9) (15.1)
Share of results of
joint ventures
1,2
9.3 (1.4) (2.3) (1.5) 0.2
Profit before
taxation
1,2
650.4 532.6 226.1 289.1 305.7
Income tax expense
2
(131.9) (130.4) (65.5) (79.4) (87.0)
Profit for the year*
1,2
518.5 402.2 160.6 209.7 218.7
Balance sheet
ASSETS
Non-current assets 71.6 79.4 88.6 103.2 101.7
Current assets 4,913.5 5,034.7 4,911.1 5,091.3 4,992.4
LIABILITIES
Non-current liabilities (646.3) (647.0) (600.8) (571.0) (590.1)
Current liabilities (971.0) (1,005.5) (933.5) (1,067.3) (983.2)
EQUITY
Total equity 3,367.8 3,461.6 3,465.4 3,556.2 3,520.8
2022
£m
2023
£m
2024
£m
2025
£m
2026
£m
Statistics
Number of homes sold 11,198 10,945 7,654 8,749 9,695
Average price of
newhomes £314.4k £310.3k £307.9k £316.4k £324.4k
Underlying
grossmargin
1,2
22.3% 20.2% 16.0% 16.4% 15.7%
Gross margin 12.5% 19.0% 15.2% 15.1% 15.1%
Underlying
operatingmargin
1,2
18.5% 16.0% 10.0% 10.9% 10.1%
Operating margin 8.7% 14.8% 8.9% 9.0% 9.5%
Basic earnings per
ordinary share 196.9p 297.7p 109.8p 132.8p 166.1p
Total dividend per
ordinary share 140.0p 140.0p 54.0p 70.0p 75.0p
a
Underlying return on
capital employed
1,2
21.0% 17.1% 7.1% 8.7% 9.2%
Return on capital
employed
1
10.0% 15.9% 6.3% 7.1% 8.6%
Gearing
1
– – 0.3% – –
Net asset value per
ordinary share
1
2,727p 2,871p 2,913p 2,989p 3,116p
Land portfolio
–plotswith
implementableDPP 32,344 32,229 30,787 30,544 27,092
Weighted average
number of
ordinaryshares 123,227,544 122,593,350 118,830,821 118,644,063 116,447,219
Number of ordinary
shares in issue at
endof year 123,486,260 120,558,573 118,980,237 118,991,699 112,974,385
Notes:
* All attributable to equity holders of the parent
a. The total dividend for 2026 includes the proposed final dividend of 52.0p.
Restated in 2025
Bellway p.l.c. Annual Report and Accounts 2026 195GovernanceStrategic Report Accounts Other Information
Five Year Record
The table below constitutes Bellway p.l.c.’s non-financial and sustainability information statement as required by sections 414CA and 414CB of the Companies Act 2006. In addition,
ourwebsite www.bellway.co.uk contains a wide range of non-financial information, includingactions we take to manage our environmental and social impact. The due diligencecarried
outfor each policy is contained within each respective policy’s documentation. Policies are available on our website.
Reporting
requirement
Relevant policies
anddocuments that
govern our approach
Where to find more
informationandoutcomes
Starting
on page
Environmental
matters
Responsible
Business strategy
Climate Change Policy
Carbon
Reduction Strategy
Waste
Management Strategy
Future Homes Standard
Responsible Business strategy:
– Nature
– Climate Change
– TNFD
– TCFD
Responsible Business strategy:
– Building sustainable homes
32
37
32
37
36
Employees Equality, Diversity and
Inclusion Policy
Safeguarding Policy
Agile Working Policy
Health and Safety Policy
Responsible Business strategy:
– Employer of choice
– Health and safety
– Training and skills development
Engaging with key stakeholders:
– Employees
49
49
49
74
Social matters Volunteering Policy
Responsible
Business strategy
Business model
The Marketplace
Chief Executive’s market and
operational review
Responsible Business strategy
Engaging with key stakeholders
24
21
11
29
72
Reporting
requirement
Relevant policies
anddocuments that
govern our approach
Where to find more
informationandoutcomes
Starting
on page
Respect for
human rights
Data protection policy
Maternity and Paternity
leave policies
Anti-slavery and human
rights policy
Responsible Business strategy:
– Employer of choice
Engaging with key stakeholders
49
72
Anti-corruption
and anti-bribery
Anti-fraud, bribery
andcorruption policy
andprocedure
Audit Committee report 90
How we
manage risk
Risk management 50
Principal risks 53
Business model Business Model 24
Non-financial
key performance
indicators
KPIs 6
TCFD 37
TNFD 32
Non-Financial and Sustainability Information Statement
Bellway p.l.c. Annual Report and Accounts 2026 196GovernanceStrategic Report Accounts Other Information
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.
Articles of Association (Articles)
The Company’s Articles of Association adopted on 11 December 2020 and as revised from
time to time.
Average selling price
Calculated by dividing the total price of homes sold 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 Group or Bellway Employee Trust (1992) 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 currently have a positive planning status and are typically held under option.
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 for Housing, Communities and Local Government formerly Department for
Levelling up, Housing and Communities (‘DLUHC’).
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 the 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 Housebuilding 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 constructed homes.
Net legacy building safety expense
This contains the income statement movements in relation to the legacy building safety
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.
Glossary
Bellway p.l.c. Annual Report and Accounts 2026 197GovernanceStrategic Report Accounts Other Information
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.
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 between a landowner
and a local planning authority. These arrangements are a way of delivering or addressing
matters that are necessary to make a development acceptable in planning terms.
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.
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.
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 currently have a positive planning status and are typically held
under option.
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.
Taskforce on Nature-related Financial Disclosures (TNFD)
A market-led, science-based and government-backed initiative providing organisations
withthe tools to act on evolving nature-related issues.
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 five 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 other 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 174–176.
United Nations Sustainable Development Goals (UN 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.
Glossary (continued)
Bellway p.l.c. Annual Report and Accounts 2026 198GovernanceStrategic Report Accounts Other Information
Group Finance Director and Company Secretary
andRegisteredOffice
Phil Hope
Bellway p.l.c.
Woolsington House
Woolsington
Newcastle Upon
Tyne NE13 8BF
Registered number 1372603
Registrars, Transfer Office and Shareholder Queries
MUFG Corporate Markets,
Central Square
29 Wellington Street
Leeds
LS1 4DL
Email: shareholderenquiries@cm.mpms.mufg.com
Investor Centre: uk.investorcentre.mpms.mufg.com
Tel +44(0)3716640300 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
Deutsche Bank AG
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
Advisers and Company Secretary
Bellway p.l.c. Annual Report and Accounts 2026 199GovernanceStrategic Report Accounts Other Information
AGM 26 November 2026
Final 2025/26 dividend – ex-dividend date 03 December 2026
Final 2025/26 dividend – Record date 04 December 2026
Final 2025/26 dividend – DRIP election date 18 December 2026
Final 2025/26 dividend – payment date 13 January 2027
Announcement of 2026/27 interim results 23 March 2027
Financial Calendar
Bellway p.l.c. Annual Report and Accounts 2026 200GovernanceStrategic Report Accounts Other Information
Designed and produced by
Radley Yeldar www.ry.com
Bellway p.l.c. are committed to caring for the environment and
looking for sustainable ways to minimise our impact on it.
Printed by Park Communications who are a certified ISO company.
Manufactured in accordance with ISO certified standards
forenvironmental, quality andenergy management.
Carbon Balanced.
ISO 14001. A pattern of control for an environmental management
systemagainst which anorganisation can be accredited by
athird party.
This report is printed on Revive Coated,
an FSC
®
certified recycled paper.
The FSC
®
label on this report ensures responsible
useof the world’s forest resources.
Bellway p.l.c.
Woolsington House, Woolsington
Newcastle upon Tyne, NE13 8BF
Tel: (0191) 217 0717
www.bellwayplc.co.uk