Bellway Annual Report 2022

FY2022 Annual Report · Bellway

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Bellway p.l.c.
Annual Report and Accounts 2022

Building homes to be proud of by
putting customers at the heart of
everything we do. Bellway is committed
to being a responsible homebuilder,
operating our business in an ethical
and sustainable manner whilst creating
long-term value for the benefit of
our customers, people, suppliers,
shareholders and the wider community.

In This Report

About Us
Financial and Strategic Highlights

Who We Are

Strategic Report
Principal KPIs

Investment Case

Our Strategy

Our Business Model

Our Marketplace

Chairman’s Statement

Chief Executive’s Market and Operational Review

Group Finance Director’s Review

Better with Bellway Overview

Better with Bellway Strategy and Priorities

Key Stakeholder Relationships

Risk Management

Principal Risks

Governance
Board of Directors and Group General Counsel
and Company Secretary

Chairman’s Statement on Corporate Governance

Board Leadership

Division of Responsibilities

Nomination Committee Report

Audit Committee Report

Remuneration Report

Directors’ Report

Independent Auditor’s Report

Accounts
Group Income Statement

Group Statement of Comprehensive Income

Statements of Changes in Equity

Balance Sheets

Cash Flow Statements

Accounting Policies

Notes to the Financial Statements

Five Year Record

External Reporting Frameworks
Sustainability Accounting Standards Board (SASB)

Global Reporting Initiative (GRI)

UN Sustainable Development Goals (SDGs)

Other Information
Glossary

Advisers and Group General Counsel and Company Secretary

Shareholder Analysis and Financial Calendar

106

126

130

142

143

144

146

147

148

150

187

189

194

199

201

203

204

Bellway p.l.c. Annual Report and Accounts 2022

W E ’ R E D R I V I N G
G R O W T H T H R O U G H
D I S C I P L I N E D
L A N D I N V E S T M E N T

Disciplined land investment is supporting our growth plans, with
19,089 plots4 contracted at an attractive rate of return, for a total
contract value of £1,300.3 million4.

Category

Identified climate risk

Actual and financial impact

Acute

Increased frequency and
intensity of heatwaves
leading to adverse on-site
working conditions.

• Increased expenditure as a result of
implementing measures to maintain
comfortable working conditions on
construction sites.

Financial score

Cautions Scenario
(short-term
time-horizons)

Worst Case
Scenario (short-
term time-horizons)

Score 1

Score 2

Increased frequency and
intensity of extreme rainfall
events leading to increased
river, coastal and surface
water flooding.

Chronic

Sustained increase in
temperatures leading to poor
thermal comfort/overheating
in homes.

Sea and tidal river levels rise
may put some site locations
in the coastal regions and
near flood plains up-river at
risk of flooding.

• Reduced revenue and increased costs

as a result of build delays caused
by labour disruption and decreased
production capacity.

• Increased costs of repair and loss of

Score 1

Score 2

useable materials during construction.

• Reduced availability of future

developable land.

• Increased operating costs due to the need
for additional drainage, or amendments
to existing drainage, both during
development and upon completion.

• Increased costs due to adapting and

Score 1

Score 2

redesigning new homes.

• Reduced sales revenue and investment
if buyers and investors perceive that
the design of Bellway’s homes are not
adequate for mitigating against the effects
of climate change.

• Increased costs due to prolonged planning

Score 1

Score 2

and construction times for at-risk sites.

• Loss of revenue due to reduced availability

of future useable land and inability to
include planned units on at-risk sites.
• Increased insurance premiums and

reduced availability of insurance on assets
at high-risk locations.

Bellway p.l.c. Annual Report and Accounts 2022

Transition risk

Category

Identified climate risk

Actual and financial impact

Financial score

Cautions Scenario
(short-term
time-horizons)

Worst Case
Scenario (short-
term time-horizons)

Policy
and legal

Many local authorities
have declared climate
emergencies, aligned to the
Environment Act and the
Planning and Energy Act,
and have set expectations
of developers to address
associated impacts.

Failure to comply with the
Future Homes Standard for
England which is planned
to be introduced by 2025 –
requiring new build homes
to be future-proofed with
low carbon heating and
a very high standard of
energy efficiency.

Failure to report and
disclosure both mandatory
and voluntary climate-
related information to a
credible standard.

• Increased operating costs as a result

Score 1

of planning delays or rejections
by local authorities and the
associated resubmissions.

• Reduced revenue due to negative
perception of stakeholders arising
from an insufficient response to local
authority requirements.

• Constrained land supply leading to inflated

land costs.

• Loss of revenue if stakeholders perceive

that Bellway is not responding appropriately
to local authority climate agendas.

• Financial penalties and a fall in demand
and investment if new local authority
requirements are not met.

• Reduced sales revenue and investment
if buyers and investors perceive that
the design of Bellway’s homes are not
adequate for mitigating against the effects
of climate change.

• Financial penalties and a fall in demand

and investment if new regulatory
requirements are not met.

• Reduced demand and investment
if partners, customers and potential
investors perceive Bellway has had a
delayed response to the climate-related
reporting landscape.

• Increased costs from fines and judgments

arising from non-compliance and with new
reporting requirements.

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Score 3

Score 4

Score 1

Technology Insufficient development and

• Increased costs due to investment in

Score 3

availability of more efficient
products and technologies
to deliver climate-
resilient homes.

research and development.

• Increased costs from extended build
time and effort to deliver homes and
developments resilient to climate change.

• Loss of revenue if buyers perceive

that Bellway is unable to offer climate-
resilient homes.

• Constrained supply of more efficient

products and technologies leading to
inflated prices.

• Increased costs due to higher input prices
of ‘renewable’ resources and equipment.
• Reduced demand and sales revenue as a

result of negative feedback from buyers on
the costs of running a Bellway home or if
buyers favour older properties as opposed
to new builds.

The Government has now
recognised that low carbon
homes may be more
expensive for customers than
existing (e.g., gas boiler) homes.

Score 2

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Better with Bellway Strategy and Priorities continued

Task Force on Climate-related Financial Disclosures (TCFD) continued

Transition risk continued

Category

Identified climate risk

Actual and financial impact

Financial score

Cautions Scenario
(short-term
time-horizons)

Worst Case
Scenario (short-
term time-horizons)

Market

Supply chain challenges
resulting in exhausting
of resources leading to
decreased availability of
building materials.

Failure to improve Bellway's
carbon footprint by
meeting the Science Based
Targets, whereby scope 1,
2 and 3 carbon emissions
are reduced.

Reputation Customers and communities
do not perceive that Bellway
has responded/contributed
appropriately or sufficiently
to the transition to a low-
carbon economy.

Failure to embed
sustainability in the business
(including within staff
training and development
processes) may lead to
the business becoming
unattractive to staff, potential
investors and existing
shareholders as sustainability
and ESG performance are
increasingly incorporated
into employment and
investment decisions.

• Increased costs due to inflated input prices

Score 3

and delays in construction activity.
• Reduced revenue from a reduction in

completed homes.

• Increased operating costs due to
construction and wider business
disruptions resulting from the transition to a
low-carbon economy.

• Damage to share price owing to a

perception of potential and existing
investors that Bellway has not met its net-
zero commitments.

• Increased expenditure and costs resulting
from the actions and initiatives required to
meet Science Based Targets.

• Loss of competitive advantage resulting in
reduced demand for Bellway homes and a
fall in sales revenue.

• Damage to share price if potential and

existing investors perceive that Bellway’s
response to transitioning to a low-carbon
economy has been inadequate.

Score 2

Score 3

• Increased costs due to recruitment/

Score 1

inductions and associated construction
and business disruptions.

• Reduced revenues due to the impact of

workforce issues on completions.

• Damage to share price if the business is
not seen as an attractive investment due
to perceived poor performance regarding
sustainability and ESG.

• Increased staff turnover resulting in loss of

knowledge and inefficiency.

TCFD opportunity

Category

Identified climate opportunity

Business impact

Operational savings and reduced expenditure
for materials and waste management.

Potential
value

Score 2

Resource
efficiency

Achieving savings from optimising resources
consumption and adopting circular economy
measures, reintegrating fit-out materials to
productive cycles, reducing waste costs and buying
less materials.

Technology Harnessing significant operational savings
by investing in energy-efficient equipment,
sustainable materials and implementing sustainable
building practices.

Market and
reputation

Increase in demand for housing due to the
impact of climate change (more people in need of
homes due to forced displacement and migration,
for example).

Bellway p.l.c. Annual Report and Accounts 2022

Operational savings, more efficient building
processes, more efficient technology
and equipment.

Score 2

Increase in demand, sales and market share
resulting in enhanced revenue.

Score 1

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In line with our legal obligation under the Companies
(Directors’ Report) and Limited Liability Partnerships (Energy
and Carbon Report) Regulations 2018 and the Greenhouse
Gas Protocol, we have continued to measure our scope 1 and
2 greenhouse gas (GHG) emissions and are pleased to report
a 5.5% reduction from 2021. This progress is critical to our
business as we continue on our journey towards net zero by
2050. For Bellway, we define net zero as reducing our scope 1,
2 and 3 emissions to zero, consistent with achieving net-zero
emissions in line with the Paris Agreement. Our definition
accounts for neutralising any residual emissions at the net-
zero target year and any GHG emissions released into the
atmosphere thereafter with appropriate initiatives, measures
and technologies.

For more information on our carbon footprint, please see
pages 42-45.

We are proud of our performance to date and have set
ourselves stretching targets, which will manage our climate-
related risks, realise our climate-related opportunities, and
achieve net zero by 2050. Our targets include:

• 46% reduction of absolute scope 1 and scope 2 (tonnes of

CO2e) emissions against our 2019 baseline by 2030.

• 55% reduction of our scope 3 emissions (tonnes CO2e per

m2 floor area) against our 2019 baseline by 2030.

• 100% electric or hybrid company car fleet by July 2025.
• 100% of purchased energy to be from renewable sources,

and REGO-certified, by December 2023.

• 20% reduction in waste per completed unit by July 2025.

• Reduction in construction site water usage against the
baseline of FY21 by July 2025 (m3 of water per 1000m2
of completed homes).

These targets will help strengthen our resilience against
climate change, increase our investors’ trust and enable us
to play a full and active role within the construction industry
to drive innovative change around carbon reduction.
In addition, targets around reducing scope 1 and scope 2
emissions and waste have been added as a performance
criteria for the Group’s long-term incentive remuneration,
see pages 115 for further information.

For more information, please see our Better with Bellway
page on our website.

Better with Bellway is regularly reviewed by the Board, the
Better with Bellway Committee and the Better with Bellway
Leadership Team, against our identified scenarios, to monitor
and further identify climate risks, opportunities and financial
impacts and how these will affect Bellway as a business.

Risk management
At Bellway, climate-related risks have been integrated into
our established company-wide Risk Management Framework.
This framework is overseen by our Audit Committee, and
we utilise our Risk Management Policy to identify the current
climate-related risks and opportunities. This process considers
internal and external uncertainties which, if they occur, will
have a significant impact on our business. Once we identify
our risks, we then categorise each of them as follows:

• Strategic risks.
• Operational risks.
• Financial risks.
• Compliance risks.
• Reputational risks.

A full summary of our climate-related risks and opportunities,
and their associated business and financial impacts, is
captured within our internal TCFD Risk and Opportunities
Register. The register provides a coherent framework to
identify, assess, manage and monitor the impacts of climate
change on our business. We identify current or future
mitigation measures and controls for the risks to reduce the
impact and likelihood of each arising. We follow the same
method to identify our climate-related opportunities.

Following the quantification of the most significant risks and
opportunities for our business, we then integrate these into
our company-wide strategic Risk Register. This Risk Register
is reviewed on an annual basis by the Board, with risks
deemed high or significant then monitored on a quarterly
basis by the Audit Committee, to prevent the actualisation of
a risk event.

Metrics and targets
We understand that further and more tangible steps
need to be taken to mitigate our climate-related risks and
realise opportunities, both for the future of our planet and
our business.

The most significant climate-related risk to the business
identified through the scenario analysis is the failure to
comply with the Future Homes Standard.

Our scope 3 target goes beyond the emission reductions that
will be required to meet the Future Homes Standard in 2025.

The Group monitors carbon emissions through the
metrics and targets that form part of Better with Bellway
strategy. These targes outline our commitment to drive
down emissions throughout our operations and our value
chain. We have set targets which are aligned to the SBTi
1.5°C ambition.

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Better with Bellway Strategy and Priorities continued

Building Quality Homes, Safely
Quality and safety first for everyone

Target

Progress

Performance

Headline
Reduce the average RIDDOR rate (measured
over a three-year period) to <305 by July 2024.

Headline
>80% of applicable employees trained on the
Group’s Fire Safety Policy and the Building Safety
Bill by July 2022.

The RIDDOR rolling average (FY19, FY21 & FY22) is currently at
359.98

As at 31 July 2022 69% of applicable staff have been trained.

Reduce accident rates from identified reporting
areas to below previous FY levels on an
annual basis.

Accidents involving slips/trips/falls, third parties have fallen
compared to FY21. Manual Handling saw a slight increase and
we continue to focus on making improvements in this area.

50% of identified target roles will have received
health and safety training by July 2022 (95% by
July 2023).

Implement new safety induction across Bellway
and 100% of new recruits to have completed
induction by July 2023.

Training courses have been created but roll-out has been
delayed until FY23.

Programme created and will be launched in FY23.

Increase the ratio of mental health first aiders
(‘MHFA’) to 1 in 10 by July 2024.

Ratio decreased to 1:34 (2021 - 1:31) as there have been some
MHFA leavers in the year.

Increase employees receiving mental health
awareness training to 1 in 5 by July 2024.

New mental health awareness training was rolled out during
the year which was received by 1:19 employees.

Achieve ISO 14001 certification for the whole
business by July 2024.

We are in the process of working towards certification.

The health, safety, and wellbeing of our
colleagues and subcontractors is our highest
priority. This is an area which has always
demanded our full focus, but there is still room
to improve. By setting ambitious goals for our
organisation, we will raise the quality and safety
of our work to even higher levels.

Encouraging safety and transparency
We actively promote safe working on all our sites, using
training, toolbox talks, informal and formal inspections, and
best practice forums. We encourage our colleagues and
subcontractors to talk to us about any areas of concern
regarding health and safety and have set new KPI safety
measurements for Site Managers this year, with performance
linked to their annual bonus.

New health and safety training modules have been
developed for Site Managers, Assistant Site Managers and
Construction Managers covering, amongst other issues, safety
procedures, accident investigation, temporary works, near
miss reporting and scaffolding standards. These modules are
included in the induction process. The training was due to
be delivered to at least 50% of relevant roles this year (with

the remaining 50% in FY23), but due to delay of the launch of
our new on-line training platform has resulted in the training
being delayed until FY23. For new roles, training will be
undertaken within three months of starting with Bellway, and
for all relevant staff, training will be repeated every three years.

Investigating and preventing
We are placing even greater focus on health and safety by
measuring our RIDDOR seven-day reportable incident rate on
a rolling average basis, not just an annual snapshot. We have
already made progress towards our target of an average
three-year RIDDOR rate of less than 305 by FY24, with the
period covering FY19, FY21 and FY22 standing at 340.5
incidents per 100,000 site operatives. FY20 has been excluded
due to COVID-19 and site closures.

As part of our strategy to improve safety and reduce our
RIDDOR rate, we have undertaken a preventative programme
to reduce accidents from identified reporting areas year-
on-year. Slips, trips and falls fell to 78 (2021 – 129), a decrease
of 39.5%. Third party reported accidents fell by eight when
compared to 2021, with manual handling injuries saw a slight
change with 80 incidents this year (2021 – 78).

Bellway p.l.c. Annual Report and Accounts 2022

Mental health
The mental health of our colleagues is vitally important to
Bellway, and we are targeting an increase in the ratio of
mental health first aiders to 1 in 10 by FY24 (2021 – 1 in 31).
Over the next two years we plan to train 140 employees
per year which will deliver the 1:10 ratio while allowing
for staff turnover.

In addition, this year saw the roll-out of our mental health
awareness training. We aim to increase the number of
employees receiving this training to 1 in 5 staff by July
2024. So far, 160 employees (1:19) have been provided with
awareness training. We plan to provide awareness training
to 230 employees per year in FY23 and FY24, delivering the
1:5 ratio while allowing for staff turnover.

Proactive remediation
Following the Grenfell tragedy in June 2017, we proactively
instigated a full review of our high-rise portfolio and identified
buildings with aluminium composite material (ACM) cladding.
In April 2022, the Group, as part of the Building Safety Pledge,
announced a commitment to resolve any historical fire
remedial work on buildings completed since 5 April 1992,
as a result the Group increased its provision for legacy safety
improvements further. In addition, while the Pledge only
relates to England, we have taken the responsible approach,
and provided for the limited number of apartment buildings
built by the Group in Scotland and Wales.

We are currently engaged in a complete programme
of works to remediate those buildings. In addition, we
have implemented a programme to ensure all applicable
employees receive training on the principles of the Group Fire
Safety Policy and Building Safety Bill. The target was to train
80% (908 individuals) of applicable staff by July 2022, and our
year-end performance was 69%. Around 350 additional
individuals have now been identified for training (additional
staff and new starters) and these individuals will be trained
in FY23.

Headline KPIs

Reduce the average RIDDOR
rate (measured over a three-year
period) to <305 by July 2024

>80% of applicable employees
trained on Group Fire Safety
Policy and Building Safety Bill by
July 2022

2022

340.5

2021

355.1

(FY19, FY21 &
FY22)

(FY18, FY19 &
FY21)

69%

–

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Bellway Health and Safety Awards

This year saw the introduction of our Health and Safety
Awards, with the purpose of recognising the site teams
across the Group going above and beyond to raise
standards in Health and Safety, and acknowledging their
hard work and roll out of best practices. Each of our 22
divisions will have two nominations, totalling 44 across
the Group.

They will be assessed using 39 categories including:
work equipment, waste management and fire.
Each category is scored between 0 (non-compliant)
and 6 (exceptional).

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Better with Bellway Strategy and Priorities continued

Sustainable Supply Chain
Driving sustainability through long-term partnerships

Target

Progress

Performance

Headline
75% of top 100 suppliers with GOLD Supply Chain
Sustainability School (SCSS) membership by
July 2023.

Deliver a material reduction in single use plastic
packaging in our top ten suppliers of 25% by
July 2023.

Complete modern slavery compliance audit of a
sample of large subcontractors by July 2022 and
address any non-compliance issues.

Review and trial new waste reduction procedures
in supply chain by FY23.

63 of our suppliers are members of SCSS, 25% of which are
GOLD members.

Supply chain partners already moving away from plastic.
Figures to be reported in FY23.

Five modern slavery audits at site level have been undertaken.

Work on-going with our supply chain partners with best
practice guidance being prepared along with a new waste
awareness campaign.

We aim to source all of our products and services
in an ethical, sustainable, and socially conscious
way. The initiatives and goals formulated as
part of Better with Bellway will ensure that we
continue, and improve upon, our efforts to date.

Developing long-term relationships
Developing long-term partnerships with our subcontractors
and suppliers is an integral part of what makes Bellway a
success, and we ensure that all of our supply-chain partners
and subcontractors are treated with dignity and respect.
As part of this we are a signatory to the Prompt Payment
Code, and we pay our suppliers and subcontractors within
agreed terms.

For our 2022 financial year, our supply chain spend was
£1.8 billion (2021 – £1.8 billion), delivering a £1.6 billion
investment in the UK economy (based on the HBF estimating
that 90% of housebuilders’ supply chain spend remains in
the UKa).

Encouraging opportunities to learn
Bellway is a member of the Supply Chain Sustainability School
(SCSS) and sit on several working groups within the school.
As part of our commitment to lifelong learning and continual
improvement, from 2022 we will be rolling out SCSS training
modules for all of the colleagues in our Procurement team.
We also encourage our supply chain partners to sign up to
SCSS and through Bellway’s membership they are able to
access, free of charge, a wide range of training and resources
to help their businesses become more sustainable. Of our
top 100 suppliers, 63 are now members of the SCSS, of which
25% hold GOLD membership, we aim to increase this to 75%
by FY23.

We have engaged with our top-ten suppliers on a wide range
of sustainability issues, with a two-way sharing process aimed
at delivering benefits across both Bellway and our supply
chain. This will continue and we aim to engage with our top
50 suppliers by FY24.

Responsible sourcing
As part of plans to introduce a Sustainable Procurement
Policy in FY23, we have been working with our supply chain
to reduce single use plastics in the packaging we receive.
Many suppliers are now moving to recycled cardboard as an
alternative and switching to higher recycled content plastics
where there are no current alternatives. We requested all
of our suppliers to ensure that, from April 2022, they use a
minimum of 30% recycled content in any plastic packaging
they provide to us. We plan to report on the quantity
of plastics removed from the supply chain in our FY23
annual report.

For a number of years, we have required all our timber
suppliers to ensure we are only provided with sustainable
timber. We plan to now audit compliance and ask all
suppliers to provide evidence of sustainability certification
for either Forest Stewardship Council (FSC), Programme for
the Endorsement of Forest Certification (PEFC) or Category
B standard.

Within our office environment we have been working
with our stationery provider to switch to more sustainable
products. All photocopier/printer paper and letterhead are
now on fully recycled paper stock, and we are investigating
whether our envelopes and compliment slips can be
switched. The remainder of our stationery items have been
switched to ‘products with purpose’ through our central office
supply company – ‘products with purpose’ are office products
that have been assessed as both sustainable and ethical.

a The Economic Footprint of House Building in England and Wales (July 2018), prepared for

the HBF by Lichfield’s.

Bellway p.l.c. Annual Report and Accounts 2022

Ethics
We use our Responsible Sourcing Policy to select partners
and to monitor their performance and compliance with
agreed standards. As well as this, we work with partners to
address any issues of non-compliance identified and reserve
the right to end relationships as a last resort. We do not
tolerate any form of slavery, servitude and forced compulsory
labour or human trafficking in our supply chain or in any
part of our business. Our Anti-Slavery Policy reflects this
commitment and is available to view on our website, along
with our latest Slavery and Human Trafficking Statement
which sets out the actions we have taken.

We require all applicable suppliers and subcontractors to
confirm that they either have their own modern slavery
policies in place or that they adopt Bellway’s policy.
Relevant staff receive training to help them identify signs of
slavery and compliance activity is monitored throughout
the year. Through internal reviews we deem that our
subcontracted supply chain contains the greatest potential
risks of modern slavery and this year we have begun a series
of site based audits focused on our subcontracted workers
and compliance with our modern slavery procedures.
The decision was made to focus audits at a site level to
target the geographic regions deemed most likely to be
affected by modern slavery and reach a greatest number
of subcontractors.

Bellway’s zero tolerance approach to bribery and corruption
has been adopted by the Board. It extends to all the
Group’s business dealings and transactions and our policy
and procedures set out the standards expected of all
of our employees. Those who work for and with Group
management are responsible for enforcing compliance and
carrying out additional checks when required.

Our whistleblowing procedure enables concerns of any
wrongdoing to be reported in confidence. There were a
small number of reports made during the year where sadly
the behaviour of a few employees fell short of the expected
standards. Appropriate investigations were conducted, and
disciplinary action was taken where necessary.

Headline KPIs

75% of top 100 key suppliers
will be GOLD members of the
Supply Chain Sustainability
School (SCSS) by July 2023

2022

63 of our suppliers are
members of SCSS, 25% of
which are GOLD member

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Supply chain case study

Bellway actively support our supply chain to become
more sustainable. Through supply chain meetings
we have discovered what our suppliers are doing to
achieve their own targets to become more sustainable,
which will reduce our carbon footprint.

We also encourage our supply chain partners to
engage with the Supply Chain Sustainability School
who provide workshops, seminars, and various learning
materials to improve and share best practice on
sustainable and environmental issues.

One of our suppliers has reduced plastic packaging by
6.4 tonnes (equivalent of 500,000 plastic bottles and
19.2 tonnes of CO2). They now package their products
in cardboard and eco-friendly paper tape, while trialling
paper bag packaging.

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Better with Bellway Strategy and Priorities continued

Resource Efficiency
Designing out waste by building better

Target

Progress

Performance

Headline
Reduce waste per completed unit by 20% by
July 2025 (achieving 7.1 tonnes of waste per
completed unit).

Achieve landfill diversion rate above 99% year-
on-year.

Reduce construction site water usage (measured
in m3 of water per 1000 m2 of completed homes)
against a base year of FY21 by July 2025.

FY22 performance is at 8.3 tonnes.

FY22 performance at 99.5%.

Research and review of multiple solution options is ongoing.
FY21 baseline set as 301.8 m3/10000 m2 of completed homes.

20% of homes commenced by July 2024 to be
in timber frame.

Timber frame expanded to our North East division – in FY22
8% of plots were completed in timber frame (2021 – 7%).

100% new homes meeting the ‘115 litres per
person per day’ standard by July 2022.

All homes and apartments now meet and exceed our 115 litres
per person per day standard.

We have an environmental and fiscal
responsibility to manage our resources
effectively and efficiently. In all areas of the
company, we aim to minimise waste (measured
in tonnes per home built) and, where waste
is unavoidable, reuse and recycle as much as
possible. Our new Better with Bellway strategy
will help us to achieve or surpass our waste
reduction goals in the years to come.

Reducing and reusing
We are undertaking work with our supply chain partners
to reduce packaging and have asked them to investigate
reusable alternatives to single-use packaging as well as
ensuring where plastic packaging is unavoidable, they use
a minimum of 30% recycled content. We have sustained
our drive on reuse, recycling and diversion processes on
our sites, and have again improved our waste diversion rate
for the eighth year, reaching 99.5% in 2022 (2021 – 99.4%).
Our partnership with Community Wood Recycling, a network
of social enterprises that collects and reuses waste wood,
rescued 854 tonnes of wood from the waste stream.

We have continued our focus on reducing waste generated
on our construction sites. After successfully reducing waste
per unit to 8.9 tonnes last year, further improvement has
slowed, reaching 8.3 tonnes per unit in 2022 and renewed
focus will be given to reusing rubble waste on site in 2023
to drive improvements towards our 7.1 tonnes per unit target.
Waste is now to be included as part of the procurement visits
to divisions and a new waste awareness guide and onsite
training will be rolled out to all sites in FY23.

Water
Bellway is not a large user of water, either in our offices or in
the construction process. However, with the emerging climate
change trends in the UK placing more regions under water
stress, as a sustainable builder we are looking at ways in
which we can reduce usage, both in our own operation and
for our customers.

We have determined our FY21 baseline water consumption
as 301.8m3 per 1000m2 of completed homes and we are
investigating ways in which we can reduce this usage (against
FY21) by 2025. We have continued to adapt the designs of
our homes to be more water efficient and have successfully
delivered on our target to build 100% of new homes to the 115
litres per person per day water standard in 2022.

Timber frame
We are continuing to expand our use of timber frame
construction methods. Five sites are already under
construction in the North East division with a total of 543
plots, and in FY23 we aim to have 100% of new sites in that
division switched to timber frame. Not only does timber frame
bring embodied carbon benefits, but it also reduced reliance
on traditional brick and block construction methods, with a
resulting saving in materials .

Headline KPIs

Reduce waste per completed
unit by 20% by July 2025
(achieving 7.1 tonnes of waste
per completed unit).

2022

2021

8.3 tonnes

8.9 tonnes

Bellway p.l.c. Annual Report and Accounts 2022

Brick & block
waste

Plasterboard
waste

Timber
waste

General/mixed
waste

Blue tipping skips

Red tipping skips

Green tipping skips

Orange tipping skips

per site

Bricklayer to utilise 1T
bulk bags on scaffold for
lightweight waste such
as insulation etc.

per site

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Waste Diversion from landfill – Bellway Wales

Bellway Wales division, who were previously using 8 – 14
yard skips, now put their main waste streams into four
main categories: brick and block, timber, plasterboard and
mixed use.

99.5%

Diversion rate from landfill

100%

of timber and plasterboards recycled

The team then worked on how they could separate
materials at source, prior to placing it into skips. A colour-
coded skip policy for each of the waste streams was
introduced for each waste stream category to maximise
diversional potential and reduce costs.

Brick and block are crushed and reprocessed on-site,
avoiding any disposal costs and achieving 100% recycling.
They are now able to achieve 100% recycling of timber
and plasterboards – timber is collected by Community
Wood Recycling Services. Drylining contractors are now
responsible for removing their own waste into a closed top
plasterboard skip. The only skip that is now supplied is for
mixed use/ light waste and this generally achieves 99.5%
diversion from landfill.

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Better with Bellway Strategy and Priorities continued

Biodiversity
Protecting and preserving nature

Target

Progress

Performance

Headline
Achieve 10% biodiversity ‘net gain’ (BNG)
in all new sites submitted for planning from
FY23 onwards.

Our central land team are taking the lead and progress is
detailed below.

Establish 1 Tiny Forest site by July 2022.

Tiny Forest planted Ponteland (Northumberland).

All new development sites to incorporate
hedgehog highways by July 2022.

Divisions to install on all new developments from 1st
August 2022.

Investigate a tree planting programme for every
home sold by July 2023.

Working with consultants and third party organisations to
understand the best way to deliver this in conjunction with net
gain requirements.

On each of our developments, we aim to mitigate
our impact on the environment through a range
of actions, including flood impact assessments,
ecology surveys, biodiversity mitigation, and
environmental impact assessments.

Sustainability
Our communities are built with the intention of maintaining
and protecting the local environment as much as possible.
As the availability of suitable land changes over the years,
the proportion of greenfield sites has increased, but we still
developed 39.3% of our new homes in 2022 on brownfield
sites (2021 – 36.8%), helping to regenerate local areas.
No matter the development, we want to offset the effect
we have on the environment. To do this, we carry out a
comprehensive range of risk assessments and surveys,
covering local ecology, flood impact, and much more.

Biodiversity
Bellway already addresses biodiversity needs in our new
developments, with Sustainable Drainage Systems (‘SuDS’)
implemented on 255 of our developments (2021 – 255),
mimicking natural drainage processes to reduce flooding
and pollution and providing an additional habitat for wildlife.
In addition, 137 developments included a biodiversity plan
(2021 – 147) and we planted over 15,800 trees (2021 – 17,200).

Biodiversity net gain (BNG) is a new obligation that will
require housebuilders to improve the biodiversity of land by
at least 10% compared to the baseline prior to development.
This requirement is likely to come into effect for planning
applications from November 2023, and at Bellway we are
aiming to ensure that all planning applications submitted from
July 2023 onwards are BNG compliant.

This is a significant development for Bellway and our strategic
land teams have already been formulating our strategies to
meet this requirement. We have established a biodiversity
baseline for all existing Bellway owned land and we have
appointed a new role of Group Head of Biodiversity who
will lead on all BNG activity. BNG champions have been
appointed in each division and we have established BNG
protocols for site acquisitions and management, with a
BNG section added to land packs. We aim to deliver on the
BNG requirements through a combination of on-site and
off-site enhancements, with the potential to add purchased
biodiversity credits.

Bellway p.l.c. Annual Report and Accounts 2022

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Helping our customers
As part of the drive to improve our sustainability offering
to customers, we have developed a green welcome pack.
New homeowners will now receive a pack that includes a
bird box, bee bomb and garden trowel, along with advice
on how they can cultivate a nature friendly garden. The pack
also contains tea, coffee and biscuits, and families with
children will have the addition of a colouring story book
encouraging children to understand how they can be more
environmentally aware in a fun way.

We will also incorporate hedgehog highways into all new
developments from 1st August 2022. One of the main reasons
why hedgehogs are declining in Britain is because our
fences and walls are blocking their natural foraging paths,
often forcing them onto roads where they are often killed.
The ‘highways’ allow hedgehogs to safely travel across our
developments (from garden to garden) as they search for
food and a mate, and the presence of hedgehogs helps
maintain a healthy ecosystem as they work to control insect
populations – including keeping gardens healthy.

Partnership working
Towards the end of this year, we started working on
establishing a partnership with The Rivers Trust, conservation
experts who work with members to preserve wild, healthy,
natural rivers, which work as part of an integrated ecosystem.
Our initial work with The Rivers Trust will be around
volunteering opportunities, with Bellway staff across our 22
divisions supporting the work of the local trusts around the
country. As the partnership develops in the future, we plan
to expand our work to include engagement on Bellway’s
sustainability objectives, and selected national policy
processes in England and to explore the development of an
approach to BNG and nutrient balancing.

Headline KPIs
Biodiversity is a key component of our sustainable approach,
and we continue to work to minimise our impact on
biodiversity. We aim to achieve a 10% biodiversity net gain on
all new sites submitted for planning from FY23, we will start
reporting on this KPI from FY23.

Creating habitats for over 500 animal and
plant species with Tiny Forests

This year, volunteers from the Group Office teamed up
with Earthwatch to create a ‘Tiny Forest’ on land we
own in Ponteland. A Tiny Forest is a dense, fast growing,
native woodland about the size of a tennis court.
They are not only an attractive location for wildlife, but
for people as well, and can provide a range of benefits
in the fight against climate change.

The Tiny Forest is planted using a technique developed
by Japanese botanist Akira Miyawaki. It consists of a
dense mix of 600 trees and shrubs native to this area of
the UK. When mature, the Tiny Forest has the potential
to provide natural habitat to over 500 animal and plant
species within the first three years.

It is one of many environmental and sustainability
projects Bellway is undertaking across the UK to help
fight global climate change.

600

trees and shrubs

500

potential new natural habitats

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Better with Bellway Strategy and Priorities continued

Charitable Engagement
Giving, to build better lives

Target

Progress

Performance

Headline
Raise £3m for Cancer Research UK by the end of
December 2023.

All office based staff to be given the opportunity
to complete a volunteering day by July
2023, with 1 day per FTE per year donated to
volunteering activities by July 2027.

Establish at least 1 partnership with a charity
supporting disability/disadvantaged individuals
with a view of providing work placements by
July 2023.

£607,898 raised and donated in 2022, bringing our total to-date
to £2.56 million.

Volunteering policy is being finalised for FY23 launch.

Preferred charity partner identified. Partnership to be launched
in FY23.

Implement a programme of employee benefits
roadshows and increase payroll giving donations
against FY21 by December 2022.

Benefits roadshows planned for FY23 which will
incorporate payroll giving. FY22 payroll giving total
of £104.4K (2021 – £16.6K).

Charitable engagement is a key part of the
Bellway ethos, going back to our initial charitable
partnerships in 2015, and we are proud of our
work so far. Our commitment to helping others
is only going to grow and we are dedicated to
widening the range of our charitable activities as
well as increasing our fundraising totals.

Maintaining key partnerships
2020 and 2021 have been difficult periods for the charitable
sector, with COVID-19 restrictions severely impacting on
donation revenue whilst demand for their services was
increasing. We are proud that throughout this difficult period
we have continued to increase charitable donations year-
on-year.

Cancer Research UK (CRUK) has been Bellway’s national
charity partner since 2016 and our relationship with this
key charity continues to go from strength to strength.
We extended the partnership in August 2021 for a further
two and a half years as part of our ‘3 4 23’ campaign with the
aim of increasing our fundraising and donations to CRUK to
£3 million by the end of 2023.

Engagement with employees, subcontractors and suppliers
has remained strong while large scale fundraising activities
were difficult in 2020 and early 2021 due to COVID-19
restrictions. However, since August 2021 everyone connected
with Bellway has embraced the new ‘3 4 23’ campaign and
restarted fundraising with great energy and determination.
In total FY22 has seen £607,898 (2021 – £351,157) raised and
donated to CRUK, the highest annual total so far of our six-
year partnership. £130,829 has been raised by employees
(2021 – £70,323), with another £168,442 from subcontractors
and suppliers (2021 - £23,380), Bellway’s double matching
of employee fundraising added a further £308,848
(2021 – £145,650). This brings our six-year total to
£2.56 million, well on our way to our £3 million target with
18 months remaining.

CRUK is not the sole focus of our charitable activity, and we
continue to support a range of local charities, causes and
community groups in the areas where we develop, including
corporate donations as well as employee fundraising for
causes close to their heart. Non-CRUK employee fundraising
came to £123,435 this year, with Bellway ‘matching’
employees’ fundraising efforts. This includes payroll giving
for which we introduced matching for this year. In total,
across all our charitable activities, Bellway, our employees,
subcontractors, and suppliers have raised and donated a total
of £899,467 (2021 - £520,413) of which £422,816 was raised
by our employees, subcontractors, and suppliers, (2021 -
£128,413).

Bellway p.l.c. Annual Report and Accounts 2022

Help raise £3million for 2023

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National Charity Day

In support of our Better with Bellway target to raise
£3 million for Cancer Research UK by the end of 2023,
we held our first ever National Charity Day on 16 June.

Teams from across our 22 divisions and Head Office
took part in virtual escape rooms, sports days and
sponsored walks, as well as raffles with amazing prizes
and plenty more activities, to raise as much cash as
possible. The total raised across the Group was an
incredible £24,658 – with Bellway’s double matching
taking the grand total to just over £72,500.

Our divisions were also given the opportunity to take
part in a day of volunteering throughout the month of
June. A team from Bellway North East spent some time
with 4Louis in Sunderland, a charity which supports
families through miscarriage, stillbirth and child loss.

Homelessness support
We continue to investigate new opportunities to give
something back to communities where we develop.
One example of this is a burgeoning partnership with Great
Change, a non-profit organisation who help individuals to
break the cycle of homelessness, providing additional support
that would fall outside the remit of social services. In total,
15 Bellway divisions made donations to Greater Change,
matched by Bellway Head Office, to provide direct support
to at least one individual who was homeless per division.
The partnership with Greater Change is in its early stages, but
the donations have already brought real, tangible benefits to
people’s lives. In Leicester, a man who had been homeless
for years has been provided with appliances for his temporary
flat so his children can visit. In Essex, the money has helped
a woman secure a social housing tenancy.

In addition to the Greater Change partnership, our Yorkshire
division have supported The Hull Homeless Community
Project which provides a support network for rough sleepers
in Hull. Our South West division has supported the Help
Bristol’s Homeless charity to assist its work to get people into
safe and stable accommodation, and from there to improve
their lives and reach their potential.

New partnerships
While Bellway staff have often undertaken volunteering
on an informal ad hoc basis, we have decided to formalise
arrangements and introduce a Staff Volunteering Policy and
scheme in the coming year. The aim is to have all office-
based staff given the opportunity to volunteer a day of their
time in FY23 and reach 1 volunteering day per FTE by FY27.

As part of our emerging partnership with The Rivers Trust,
we aim to have at least one volunteering event per division
across the various local rivers trusts organisations in England,
Scotland and Wales. Not only will this deliver a much needed
resource for The Rivers Trust, it will also provide extensive
team building opportunities for Bellway divisions.

As part of our Better with Bellway strategy, we are
investigating opportunities to partner with charities that
support disabled and disadvantaged individuals. The aim will
be to initially offer work placements within Bellway, with the
view of progressing to offers of permanent employment as
the partnership progresses.

Headline KPIs

Raise £3m for Cancer Research
UK by December 2023

2022

£2.56m

2021

£1.95m

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Better with Bellway Strategy and Priorities continued

D E S I G N I N G T H E H O U S E
O F T H E F U T U R E

We have started building an experimental eco house called ‘The Future Home’
as part of a research project which could influence how we use our homes
in the future.

Bellway’s ‘The Future Home’ is being
built at The University of Salford’s leading
net-zero research facility Energy House
2.0 that has been part funded by the
European Regional Development Fund.

The house will test innovations in
building materials, the effects of double
and triple glazing, storing solar energy,
recovering heat from wastewater, and
how to make most efficient use of air
source heat pumps.

Each of these elements will be
monitored in both regular and extreme
temperatures, with varying weather
conditions simulated inside the specially
built chamber.

The results of this project have the
potential to change how Bellway build
homes and how our customers live
in them.

Bellway p.l.c. Annual Report and Accounts 2022

Key Stakeholder Relationships

Maintaining good relationships with our stakeholders is important to what we do.
The Board of Directors confirm that during the year under review, it has acted to promote the long-term success of the
Company for the benefit of shareholders, whilst having due regard to the matters set out in section 172(1)(a) to (f) of the
Companies Act 2006, being:

(a) the likely consequences of any decision in the long-term,

(b) the interests of the Group’s employees,

(d) the impact of the Group’s operations on the community and the environment,

(e) the desirability of the Group maintaining a reputation for high standards of business conduct, and

(f) the need to act fairly between members of the Group.

On pages 65 to 74 we set out how we have engaged with various stakeholders during the year, the key issues raised
and outcomes

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Customers

How we engage
Bellway has always had a strong reputation for excellent
customer service, with our face-to-face sales approach
helping thousands of our customers to purchase their
dream home every year. This approach has served us well
throughout the years, but our customers expect more from
Bellway, so we have extended our traditional approach to
improve the digital and telephony offerings to complement
what we do well. Our Customer First initiative is designed to
support this improvement and we have implemented several
new processes to support this throughout the year.

Our digital channels – website and social media – are
designed to engage homebuyers early in the customer
journey and provide them with all the information they
require to help them make an informed decision when
deciding on the location and property type that meets their
needs. This helps customers have the knowledge before they
visit the sales office.

We recognise that the customer journey, from first visiting a
site to moving into their new home, can be a long process
and our dedicated and highly trained sales advisors help
make the process of buying and moving into a new house as
smooth as possible and a positive experience.

Our face-to-face sale approach helping
thousands of our customers to purchase their
dream home every year.

Once in their new home, our dedicated Customer Care team
will deal with any post completion issues and questions
customers may have, to maintain that positive experience
throughout the early years of Bellway home ownership.

To continue the high standard of customer service our
customers expect, we encourage feedback throughout
the sales process via Trustpilot and HBF Customer
Satisfaction surveys.

Through our marketing activities, we assess and review
collected data to ensure we are engaging with our customers
and responding to their needs effectively.

Our use of social media channels involves us engaging with
customers by generating aspirational content that showcases
Bellway’s products and uses customer case studies and
testimonials to bring this to life.

Our new Better with Bellway strategy will help customers
by building new homes to Future Homes Standards, and
will develop desirable communities with sustainability at the
heart of what we build. This will bring benefit to customers by
providing energy efficient homes meeting, or where possible
exceeding, the standards required. Bellway is undertaking
customer trials across the country to inform this strategy and
we will be using customer feedback to help us identify the
technologies and innovations that best meet our customer
needs as a result.

For customers who live in legacy Bellway built properties
which do not meet new standards for fire safety, Bellway
have introduced a dedicated Building Safety Division that
communicates directly with building owners, managing
agents, customers and other key stakeholders in helping to
remediate life-critical fire safety issues in high, and medium-
rise buildings. The team also ensures compliance with our
new fire policy. The Executive Management Team provide
oversight of this division.

Key issues raised
• Customer service
• Digital adoption
• Sustainability and efficiency of homes
• Build quality
• Innovation
• Legacy building safety improvements

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Key Stakeholder Relationships continued

Outcomes
We have retained our 5-star6 homebuilder status in the
national HBF awards for the sixth consecutive year, reflecting
our commitment to delivering exceptional quality and service
as standard to our customers, throughout their whole journey
with Bellway.

Nine out of 10 customers would recommend Bellway to
a friend. Our score of 93.6% in the Recommend a Friend
category was the highest score achieved by Bellway since
commencement of the HBF Survey scheme in 2007.

HBF Survey scheme:
‘Recommend a Friend’ category

93.6%

We have recognised that customer satisfaction in the
9-month survey has historically been lower in this survey
period and our Customer First initiative has been addressing
this directly. Our current Recommend a Friend score of 82.1%
reflects our efforts in this regard, delivering a year-on-year
improvement of 2.2 ppt when compared to our 9-month
Recommend a Friend score of 79.9% in 2021.

We continue to build on this improvement to achieve our
aspiration of achieving 90% customer satisfaction in the
9 month Recommend a Friend category by 2026.

Customer First is designed to help achieve this aspiration
with a focus on improvements to planning, build, sales, post-
completion customer care, training and communications
processes to provide a better level of service. Our aim is to
deliver a 5-star service, combined with a 5-star build quality,
putting the customer at the heart of everything we do. To help
us achieve this, the Group appointed a Customer Experience
Director who has worked with some of the UKs largest brands
and whose role is to help deliver the improvements through
our Customer First initiative.

Driving our Artisan Collection of standard house types
through our divisional businesses helps us to work
consistently across the Group, allowing for standardised build
processes and procedure, and the sharing of best practice.

Our Watchmaker house type which is part of the Artisan Collection.

Bellway p.l.c. Annual Report and Accounts 2022

We have introduced several initiatives to help our customers
understand the complex processes undertaken. ‘Meet the
Builder’ allows our customers to meet the construction teams
who are building their homes, while our ‘pre-plaster visits’
provides customers with an opportunity to visit their new
homes during construction, so they understand how their
home is built. This allows customers to ask questions of the
construction teams and gain a greater knowledge of the
processes involved in building their home. Feedback from
customers has been extremely positive as it provides
reassurance and builds excitement during the process.

We have maintained our appointment system for sales centre
visits, which was first introduced due to COVID-19 restrictions.
This was positively received by customers as it allows us to
provide a dedicated one-to-one service as a result.

Enhancements to our customer care procedures and quality
assurance inspections have improved the build quality of our
new homes, and the aftercare we provide to our customers
following completion. We introduced unaccompanied
inspections for customers prior to their home demonstrations,
this allows them the opportunity to inspect their home in their
own time and report any defects or issues prior to moving
in. In addition, a 12-week defect period has been introduced,
where construction teams remain responsible for defect
rectification in all new homes. Our dedicated Customer
Care teams manage any issues throughout the remaining
warranty period.

We have introduced new core hours for our Customer Care
teams in line with the roll-out of a new telephony system
which has been introduced into most divisions with complete
implementation towards the end of the year. We are also
introducing tablets and digital solution for on-site teams to
report and manage customer care issues which will provide
a greater level of control and reporting for our Customer
Care teams.

Our new sustainability strategy operating under the
banner of Better with Bellway was launched in early 2022.
This strategy consists of eight business priority areas, one
being Customers and Communities. Outcomes from
this strategy are already being seen by our customers,
with sustainability initiatives taking place on ‘exemplar’
developments across the country and homes being built
to Future Homes Standards.

This strategy has also seen the launch of a ‘green’
welcome pack for new homeowners, consisting of more
environmentally focused items such as bird boxes, bee
bombs and fairtrade tea and coffee. Our sustainability
message is also being rolled out to households with
children, with the inclusion of a children’s activity story book
highlighting the benefits of sustainable living using characters
Belle and Brickle to bring the message to life.

As part of our Customer First initiative, we began the roll-out
of the digitalisation of our sales process with the launch of
the ‘Your Bellway’ customer portal.

The portal has been launched on a trial basis across
two divisions and we expect to roll this out over the next
12 months. ‘Your Bellway’ will provide an improved level
of service to our customers, giving them another way
of interacting with us and allowing them to download
key documentation.

The second phase of the portal will allow customers to
choose additions from the comfort of their own home.

‘Your Bellway’ will provide an improved level
of service to our customers, giving them a further
way of interacting with us.

We have also enhanced our digital customer experience with
the launch of websites for our Bellway London and Ashberry
Homes brands. In addition, Bellway has also responded
to customer needs with the launch of a lifestyle website
‘Your Nest’ which provides guides and information to help
customers turn their new house into a home.

The Board fully consider our customers, through regular
oversight in board meetings, with key customer initiatives and
ongoing customer care and satisfaction scores being reported
on a regular basis. A report from the Group Customer Care
Director is a standing agenda item for all Board meetings.

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As part of our continued commitment to building safety,
in April 2022, Bellway agreed a voluntary pledge with the
Department for Levelling Up, Housing and Communities
(DLUHC) in relation to historical fire safety issues on buildings
where Bellway has played a role in their development.

Bellway agrees with Government that leaseholders should
not have to pay for any costs associated with necessary life-
critical fire safety remediation work arising from the design
or construction of buildings they live in. We have entered
into a pledge with DLUHC that we will fund, undertake or
procure at our own cost as quickly as reasonably possible
all necessary remediation or mitigation work to address
life-critical fire safety issues arising from design, construction
or refurbishment defects on buildings above 11 metres
in England which Bellway played a role in developing
or refurbishing that have been built by the Group since
5 April 1992.

The standard of remediation will be assessed proportionately
to the standard as articulated in the PAS methodology and
other relevant industry standards to ensure that affected
buildings meet a life-critical safety standard. We will:

• Withdraw any buildings that we have played a role in
constructing from the Building Safety Fund and ACM
Funds, and reimburse any costs incurred to date by those
funds; and

• Publish the pledge on our website, and agree a process
with DLUHC for contacting building owners of buildings
falling within scope of the Pledge to agree the steps
required to meet its objectives.

In October 2022, the Group signed up to the Developers’ Pact
with the Welsh Government. Similar to the Pledge, this is a
commitment to remediate buildings over 11 metres in heights
with life-critical fire safety issues, which were constructed in
Wales since April 1992.

Our dedicated Building Safety team communicate with
customers through our Building Safety helpline, and we have
launched a dedicated Building Safety website for customers
providing guidance on what Bellway is doing to address
the issue. Our Building Safety team meet with leaseholders
and other key stakeholders in order to maintain effective
communications, and we provide regular communications
on sites where we are undertaking remediation.

From August 2022, Bellway has launched a dedicated
Building Safety Division which will operate solely to address
fire safety issues across the group and will deliver remediation
to buildings identified as part of the pledge.

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Key Stakeholder Relationships continued

Colleagues

How we engage
Becoming an Employer of Choice is one of Bellway’s main
business priorities and to be able to do this we need to
ensure that our colleagues are fully engaged in our business,
so they have the knowledge and understanding of how we
operate successfully for the benefit of all our stakeholders.
In the UK, there have been changes to working practices
following the COVID-19 pandemic, with a greater focus on
work life balance, which has meant we have had to adapt
to meet the evolving needs and demands of our colleagues.

We measure the success of our engagement through our
annual Employee Engagement Survey, the latest ones being
in August 2021, and again in June 2022, providing us with vital
data and colleague feedback on the things that matter most
to them. The survey was conducted by external consultants,
ETS. Colleagues were asked to confidentially share their
views on all aspects of working for Bellway, and this was
used to shape our employee strategy for the year. We placed
significant importance on the survey for all employees across
the Group to ensure that the results reflected the diverse
nature of the roles that are undertaken by our employees
whether office based or on our construction sites.

The Employee Engagement Survey gives us an annual
overview of colleague views on Bellway, but we continued
to run quarterly Employee Listening Groups with a
cross-section of colleagues from across the business.
The Employee Listening Groups allow us to present key
initiatives to colleagues and gain real time feedback on the
views of colleague representatives. The Groups also allow
senior management to gain feedback on issues raised by
colleagues. The importance of this activity is demonstrated by
the active involvement from Board level, with non-executive
directors attending some of the listening group sessions, and
the outcomes from these meetings being reported to the
Board through regular updates.

The attraction, development and retention of talent across
the business, and improving the diversity of our workforce,
remains a key priority for our Group HR team, especially at
a time when pressures are being faced across the wider
industry by the lack of skilled workforce across the sector.
We have upskilled our senior leadership team with the
introduction of the Senior Leaders Development Programme,
with external consultants, Mosaic Partners. This bespoke
programme is aimed at developing personal leadership skills
and management capacity to better lead high performing and
efficient teams. We are extending this skills training with the
launch of the CMI accredited Middle Managers Development
Programme in September 2022 to extend these capabilities
beyond the senior leadership team.

The onboarding of new colleagues who join the business
remains a priority as we ensure they have a positive
experience when joining the Group so they can be successful
in their roles and we continue to gain feedback from those
who leave in order improve where necessary.

Our focus on diversity and inclusion is another key area
under our ‘Employer of Choice’ strategic priority and we have
been working with external consultants in developing a new
Diversity and Inclusion strategy which we aim to roll-out later
in the year.

Our ‘Balance’ network group, which was launched in
May 2021 and provides an open forum to discuss matters
relating to diversity, equality and inclusion across the Group,
continues to be successful with a diverse group of colleagues
from across the business being actively involved. The network
discusses diversity issues being encountered both in Bellway
and in the wider industry, and seeks to find solutions to
improve accessibility to the industry and Bellway for minority
groups. The network is sponsored and chaired by senior
leaders within the Group.

We commit to having at least 5% of our
workforce employed in ‘earn and learn’ roles.

As an active member of ‘The 5% Club’, we commit to having
at least 5% of our workforce employed in ‘earn and learn’
roles, including apprenticeships, student placements, and
graduate roles. As part of our new strategy, we aim to have
at least 12% of our workforce in ‘earn and learn’ roles by
July 2024.

Bellway employees at the Brook View sales office in Wixam.

Bellway p.l.c. Annual Report and Accounts 2022

We are placing even greater focus on health and safety by
measuring our RIDDOR rate to cover all members of staff, not
just those on our sites. Furthermore, we are using technology
to improve the reporting and analysis of any health and safety
incidents – this allows for more timely investigations and
ensures that preventative measures are introduced.

The mental health of our colleagues is also vitally important,
which is why we are increasing the ratio of mental health
first-aiders and implementing mental health wellbeing training
to raise awareness.

Our internal communications strategy remains an area of
focus for the business. Although improvements have been
made over the past two years, we are focusing on how
we can improve communication to our harder to reach
site-based colleagues and ensure our Better with Bellway
strategic priorities are clearly articulated to colleagues.

Key issues raised
• Health, safety and wellbeing
• Flexible and agile working
• Diversity and inclusion
• Pay and benefits
• Training and development
• Career progression
• Work life balance

Outcomes
The latest Employee Engagement Survey undertaken in
June 2022 received a 74% response rate, which is 2 ppt
higher than our August 2021 survey. The engagement rate
from employees was very high at 96% and represents an
improvement on the 2020 and 2021 surveys which were
both at 89%.

The survey results showed that there was a strong customer
focus among Bellway employees and that there were high
levels of trust and empowerment for colleagues to do their
jobs. Our colleagues told us that they know what is expected
of them in their roles and they are clear in the part they
play in helping Bellway achieve its goals. More importantly,
Bellway colleagues told us they were prepared to go the extra
mile in doing their roles, demonstrating their commitment to
the organisation.

Overall, 95% of colleagues would recommend Bellway as
‘a great place to work’.

Employee Engagement
Survey response rate

74%

(2021 – 72%)

Colleagues who would
recommend Bellway as
‘a great place to work’

95%

(2021 – 89%)

Areas for improvement identified in the 2021 survey have led
to us enhancing our training and development programme.
A Senior Leadership Management Programme was launched
last year, with two cohorts of senior leaders undertaking this
programme. Further to this, we are introducing a new Middle-
Managers Management Programme with the first cohort
beginning in Autumn 2022.

We have launched a monthly Health & Safety newsletter for
all staff to provide advice and guidance on key health and
safety issues and have used this to demonstrate the success
of our new Near Miss Reporting Policy by highlighting near
misses on a monthly basis to educate colleagues.

Following the full reopening of our offices after the end
of COVID-19 restrictions, we have introduced our new
permanent Agile Working Policy and Flexible Working Policy
which have been introduced across the Group to support
colleagues in balancing their work and personal lives.
Further enhancements to this policy are being considered
as part of the feedback from our latest survey, where work-life
balance remained a key area of concern for our colleagues.

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We introduced our new permanent Agile
Working Policy and Flexible Working Policy
which have been introduced across the Group
to support colleagues in balancing their work
and personal lives.

Bellway has been voted a Top 100 Apprenticeship Employer
for 2022 by the Department for Education. Our Apprenticeship
Programme currently has 154 apprentices working across
the business in a range of different roles, so this accolade
demonstrates our commitment to employing apprentices
across the business.

Ben Elliot, Apprentice Plumber at Houlton Meadows in Rugby.

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Key Stakeholder Relationships continued

Investors

How we engage
As a FTSE 250 publicly listed company, we have a duty to
provide our equity and debt investors with fair, transparent
and balanced information on the performance, strategy and
direction of the business in order to provide confidence and
trust which allows informed investment decisions to be made.

As part of reporting on our performance, through interim
results, preliminary results and regular trading updates,
our Executive Management Team regularly meets and
communicates with major shareholders and analysts,
including at formal presentations at least twice a year.
This ensures that investors have access to the progress of
the business.

As well as providing regular marketing updates to our
investors, we also use traditional media channels and hold
calls with key journalists to ensure our principal messages are
understood by the wider market, prospective shareholders
and investors. At key points around interim and preliminary
results, we also communicate directly with our colleagues as
many are also investors in the business.

Our relationships with institutional investors, prospective
investors and market analysts allow them to raise issues with
us or seek information, primarily when we are issuing results
to the City.

Following financial announcements, our Board of Directors
receive updates from our brokers and PR consultancies,
providing feedback from investors and analysts which can
be used to help us understand how our strategy is being
received by investors and analysts.

We respond to investor communications whenever possible
to build upon their understanding of our business strategy,
or to address any concerns they may have raised.

We have engaged with key stakeholders, and took investor
views on board, in developing our new Better with Bellway
sustainability strategy while working with external sustainability
consultants to ensure the strategy is aligned with industry best
practices and to meet expectations for Environment, Social
and Governance (ESG) reporting.

In addition, over the past 12 months, we engaged with
institutional investors, analysts and shareholders in relation
to legal building safety, particularly the voluntary Pledge
undertaken to remediate buildings dating back to April 1992
which Bellway built, where life-critical fire safety issues have
been identified.

Our Chair and Senior Independent Director are both available
to attend meetings with major shareholders and we regularly
update our corporate website whenever any updates have
been announced to the City.

Shareholders are given the opportunity to ask questions
ahead of, or at, our AGM and are provided with the
opportunity to listen to the AGM live through a web-link.

Bellway p.l.c. Annual Report and Accounts 2022

Key issues raised
• Environment, social and governance (ESG)
• Remuneration policies
• Market conditions e.g. mortgage market, supply and
labour supply chain, impact of conflict in Ukraine,
affordability of homes, and land market

• Dividend Policy
• Customer care and build quality
• Building safety voluntary ‘pledge’ with Government
• Future Homes Standards

Outcomes
Investor and media engagement around interim and
preliminary results and regular trading updates allows us
to provide additional information and clarity on the key
points raised during those updates. Where necessary, we
ensure that where greater clarity is required, it is adopted
for future updates in order to make sure we are meeting
shareholder needs.

We have proactively communicated our Better with Bellway
sustainability strategy to investors as part of our interim
and preliminary results announcements and had ongoing
dialogue with interested investors. Feedback on the strategy
has been positive as investors see our ambitions not only to
fulfil our ESG obligations, but also to become industry leaders
in the three flagship priorities: Customers and Communities;
Carbon Reductions and Employer of Choice. The strategy
was launched with a dedicated website which provides a
high level overview of the strategy, our priorities and our key
targets for measuring success.

We use investor feedback on our Annual Report and
Accounts to provide greater transparency and clarity on the
performance of our business.

We have proactively communicated with major shareholders
on our response to legacy building safety to provide oversight
of Bellway’s proactive and responsible response to the issue.

Bellway has appointed a Group IR Director to enhance the
relationship with investors. Following the end of COVID-19
restrictions we plan to undertake more in-person activities.

Gavin Jago – Group IR Director.

Partners

How we engage
Bellway’s partners are a key part of our success. Due to our
size and scale we must proactively engage with our partners
– our suppliers and subcontractors – in order to achieve
our goals. Without a positive approach to partnerships, we
wouldn’t be able to produce the thousands of homes we
build every year.

Our dedicated Group Commercial relationship management
team provide ongoing communications with our partners,
and this is also supported at a divisional level. Bellway is
proud that many of our suppliers and subcontractors have
been working with us for a long-time and it is these long-term
relationships that have contributed to the success of both
Bellway and our partners.

Bellway’s scale and size means we can react to some of
the challenges that face the construction sector, with price
inflation, supply chain management and labour issues all
placing strain on the industry. These are exacerbated by
the ongoing worldwide impact of the COVID-19 pandemic,
Brexit and the war in Ukraine.

It is during challenging times that our partnership
engagement approach comes to fruition as we can flex our
approach to mutually address the challenges being faced
by all parties to find a suitable outcome. By working together,
we have been able to successfully manage any issues that
have arisen.

Our long-term working relationships with reputable
subcontractors ensure that we can maintain the availability
and quality of materials and labour. We work closely with
subcontractors to ensure health and safety on construction
sites is a priority and any risks are identified and managed
effectively. Where health and safety standards are not being
maintained, we move quickly to address the issue, removing
subcontractors from site or addressing the issue through
educational means, such as toolbox talks.

Having effective partnerships with a range of public bodies
and national and regional agencies is essential to the success
of our business. These relationships allow us to deliver benefit
to the communities in which we build.

Our long-established relationships with housing association
partners across the country, ranging from large national and
regional organisations to smaller providers, helps us deliver
affordable homes in the communities where we build, giving
access to new homes to more people as a result.

Bellway’s Group Strategic Land and Divisional Land teams
work with landowners, commercial vendors, and the public
sector to secure land opportunities in areas where we can
provide desirable homes. Sites are considered at all levels of
current planning status and funding is made available to allow
our teams to move quickly, with offers to purchase subject to
our well-established approval process and hurdle rates.

Our divisional teams have significant expertise and
knowledge of local planning policies and frameworks, this
expertise is essential in guiding challenging sites through
the local planning process.

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We also engage with Government and private agency
partners in joint venture and partnership agreements.

We are working with key partners in the execution of our new
sustainability strategy Better with Bellway by identifying new
technologies and innovations to deliver houses that meet
Future Homes Standards from 2025.

We are partner members of the Supply Chain Sustainability
School and encourage all our materials suppliers and
manufacturers to engage with the school to promote
understanding of what they can do to reduce carbon, waste
and improve the environment.

On legacy building safety, we work with key fire safety
engineers and specialist subcontractors to ensure we are able
to identify and manage remediation projects that fall within
the government ‘Pledge’ on building safety.

Key issues raised
• Supply chain demand and price inflation
• Labour shortage
• Health and safety
• Land and planning
• Sustainability

Outcomes
Bellway’s strong personal relationships with key suppliers
and subcontractors have helped us effectively manage
the challenges being faced by the industry including post-
Brexit issues and the war in Ukraine, which is causing
global shortages in supply chains and labour. Our Group
Commercial team has worked closely with our supply chain
partners to overcome most supply issues through more
effective planning and discussion.

Our long-term relationships and commitment to our partners
and sub-contractors has allowed flexibility to adapt to
the challenges being faced by all parties. The continued
deployment across our divisions of the standard Artisan
house type range is bringing efficiencies for our suppliers and
subcontractors. This helps with longer-term forecasting and
planning, allowing us to agree longer lead times for products
or be more flexible in distribution options.

Respect for our long-term relationships within our supply
chain means we can help our suppliers and manufacturers
address any short-term issues in the knowledge that they will
continue to support us beyond the current market challenges.

Our continued focus on health and safety on our
construction sites is vitally important for the health and
wellbeing of all our partners and subcontractors. Our ongoing
education and enforcement activity means that our RIDDOR
levels remain consistent with pre-COVID-19 levels.

Our land and planning expertise continues to be important
in delivering new land opportunities and successful planning
applications for new sites. Our work with agencies such as
Homes England has led to joint ventures and partnerships on
key regeneration and infrastructure projects, bringing wider
economic benefits to the communities in which they are
being built.

On legacy building safety, we are working closely with
specialist fire safety experts on remediation projects.

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Key Stakeholder Relationships continued

Communities

How we engage
Building homes to be proud of and creating new
developments which create attractive and desirable
communities is a vital part of our strategy. Our community
involvement extends far beyond the sites in which we
develop. The investment we make into local communities
creates skilled jobs, providing employment to the thousands
of subcontractors who work with us. It also provides
infrastructure improvements, regeneration, and wider
economic benefits that new homes deliver.

During our engagement in the planning process for new
developments, we undertake consultation with local
communities as part of the public engagement policies of
local authorities. By doing this, through direct and indirect
communications, holding public meetings and exhibitions,
we can share our proposals with communities, and where
possible, we will amend proposals if there is a need to
address concerns.

Our local PR and digital marketing strategies help us
showcase the benefit of our developments to all stakeholders
and we use these channels to also highlight the work we
do with local communities, for local charities, schools and
other organisations.

School children with their safety posters at Wellfield Rise, Wingate.

Through Section 106 (England and Wales) and Section 75
(Scotland) contributions, Community Infrastructure Levies,
and affordable housing contributions, we invest significant
resources into the communities where we develop. This is
an important contribution to improve education, healthcare
and sports facilities and improve local transport networks.
In addition, our contribution to improving recreational space
for communities through our funding and through the design
of our sites provides additional benefit to the community, as
well as to homebuyers on our developments.

We operate the Considerate Construction Scheme on sites
where appropriate as we understand the impact construction
has on communities. Despite our best endeavours,
construction is disruptive, noisy and often dirty but we make
every effort to limit the impact on local communities and
we work with local stakeholders to address concerns when
they arise.

As part of our new Better with Bellway sustainability strategy,
we are enhancing our work with local communities by
increasing our involvement in sustainability activities
with them, and we will continue to work with national,
regional and local charities and community organisations.
Our colleagues fundraise for local events but also provide
benefit in kind to organisations, through the donation
of supplies or labour. The Group matches donations,
recognising the charitable contributions of our colleagues.

Our national charity partnership with Cancer Research UK
(CRUK) is now in its sixth year, with fundraising taking place
across our 22 divisions and Group, involving colleagues,
suppliers, subcontractors, and professional advisors. Our aim
is to raise £3m for the charity by the end of 2023 and we are
well on the way to achieving this ambition.

We also run local programmes involving schools and
other community organisations, which demonstrates our
commitment to local communities. This year we have
launched our schools programme, with divisions working
with local schools to promote construction as a career.

Key issues raised
• Affordability and the supply of housing
• Planning and community engagement
• Jobs and skills
• Biodiversity
• Home efficiency and sustainability
• Environmental issues
• Impact on existing communities and infrastructure
• Charitable and community giving

Bellway p.l.c. Annual Report and Accounts 2022

Outcomes
Our Artisan house type range has provided a range of house
types which can be used to meet community needs, with
many being designed for affordable housing use.

Of the 11,198 housing completions this year, 18% (2021 – 22%)
were sold to affordable housing providers, providing much
needed affordable homes in communities throughout the UK.

We sold 13% (2021 – 7%) of our new homes to unassisted
first-time buyers while 22% (2021 – 39%) were purchased
by customers using Help-to-Buy. Overall, 34% (2021 – 28%)
of our homes were sold to first-time buyers. The creation of
new homes on our developments also impacts the wider
community with people moving into new homes from the
second-hand market, thereby releasing housing stock.

Homes sold to affordable
housing providers

Houses purchased by
unassisted first-time buyers

18%

(2021: 22%)

Homes purchased by
customers using
Help-to-Buy schemes

22%

(2021: 39%)

13%

(2021: 7%)

Homes purchased by
first-time buyers

34%

(2021: 28%)

We have a proven track record of responding to local
community queries relating to planning applications
and meeting community needs in the process. In 2022
we contributed £117.2 million (2021 – £71.3 million) to local
communities through Section 106 (England and Wales)
and Section 75 (Scotland) contributions, which has brought
significant benefits and investment to local communities
throughout the UK.

Our construction activities also deliver employment
opportunities across the country and we estimate that
between 29,300 and 34,800 direct and indirect jobs were
supported by Bellway in the past year.

Direct and indirect jobs supported by Bellway

29,300 – 34,800

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The Goldsmith show home at Woodland Rise, Hartshorne.

Following COVID-19, our fundraising activities have increased,
with us holding our first national charity day across the Group
where all colleagues helped raise money for CRUK.

Our relationship with Cancer Research UK has raised a
total of £2.56 million for the charity over the lifetime of our
partnership, well on the way to achieving our target of
£3 million by the end of 2023.

During the year, our divisions have continued to work with
local charitable and community organisations. A further
£123,435 has been raised for these organisations but our
contribution goes much further than financial assistance.
Utilising our staff expertise across a range of disciplines, we
can offer advice and practical help to organisations, as well
as donate items such as appliances and building materials
where they are needed.

Total raised for Cancer
Research UK

Raised for local charitable and
community organisations

£2.56m £123k

Our new schools engagement programme was rolled out
in 2022 as part of our new Better with Bellway sustainability
programme. So far, our 22 divisions have linked up with over
500 schools to run programmes designed to attract young
people to consider a career in construction.

As part of our sustainability strategy, Bellway has teamed
up with the environmental charity Earthwatch to trial Tiny
Forests, on and near developments. The first of these trials
started near to Bellway’s Head Office in Newcastle-upon-
Tyne. Volunteers from Head Office came along to the first
Tiny Forest Tree Planting Day, along with groups from local
schools, to plant 600 saplings using 18 different species of
trees, creating a natural habitat for wildlife which is open for
the enjoyment of the public.

Tiny Forest biodiversity trial

600

saplings planted

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Key Stakeholder Relationships continued

Government and regulators

How we engage
Bellway is apolitical as it has no political affiliations and makes
no donations to any political party, causes or campaigns.
However, our relationship with central and local government
is an important one, given the UK’s housing requirements and
the part we play in delivering this.

The Government’s ‘levelling-up agenda’ and the importance
of housing development in the health of the economy means
it is vitally important we engage with key stakeholders in
central and local government. Bellway often engages through
industry representative bodies on key issues facing the
housebuilding sector, for example, building safety. It is through
these groups where collective industry positioning is agreed.

Central, devolved, and local government policy in England,
Scotland and Wales has a significant impact on the operation
of our business, with planning and monetary policy all
impacting the supply and demand for housing in the UK.

We work collaboratively with local authorities and other key
statutory bodies to ensure developments are brought forward
to meet the local housing need. Our contributions to the
public purse, through Section 106 (England and Wales) and
Section 75 (Scotland) payments help address the wider needs
of local communities. These contributions are used for key
infrastructure projects to reflect the increase in demand
as a result of new homes being built, with roads, schools,
doctors and other schemes bringing additional benefits to
the communities in which we build.

Bellway engages at a strategic level with senior officials within
the Department for Levelling Up, Housing and Communities
(DLUHC), HM Treasury and The Cabinet Office to address
the pressing issues of accelerating housing delivery, building
safety, widening home ownership opportunities and the
regeneration of communities.

In London, we work closely with the Greater London Authority
and London Borough Councils and engage at a senior level
with the Welsh Assembly and the Scottish Parliament where
necessary. We also regularly communicate with MPs, MSPs
and Welsh Assembly members in dealing with local issues
relating to constituency matters.

Homes England, the Government’s housing accelerator
body, is an important partner as we work with them to
meet the housing needs. We work closely on their public
land and housing investment agendas. We remain one of
the main housebuilders to access the equity loan Help-to-
Buy programme, which closes at the end of October 2022,
and participate in other forums in order to progress major
policy initiatives.

At an industry body level, Bellway is an active member of
the Home Builders’ Federation (HBF) and uses this trade
organisation to provide industry level intelligence and
overview of the changing regulatory and Government
agenda. We contribute to the positioning of the HBF through
our active engagement with the wider industry. We engage
and respond to Government directly and through our
membership of industry trade organisations.

Bellway p.l.c. Annual Report and Accounts 2022

Since 2010, the Consumer Code for Home Builders has set
mandatory requirements that housebuilders must meet in the
marketing and selling of new homes, as well as in their after-
sales customer service. However, a new independent body,
The New Homes Quality Board (NHQB), recently published
the New Homes Quality Code (NHQC), which will become
the industry code of practice for all registered builders.

Bellway registered with the NHQB in February 2022, and
activated our membership in October 2022. Post October,
customers who reserve a new home will benefit from the
protection of the NHQC and the New Homes Ombudsman
Service (NHOS). All others will remain subject to the terms of
the current Consumer Code for Home Builders.

Key issues raised
• Building safety and the industry voluntary pledge to

remediate buildings
• Local planning issues
• Sustainability and environment
• Leasehold reform
• Health and safety
• Access to housing
• Acceleration of housing supply

Outcomes
We respond to national, regional and local government
policies, regulatory changes and provide developments,
which meet local needs by creating new sustainable
communities in attractive and desirable places which
integrate within existing neighbourhoods. Our developments
also contribute to the local economy, with the creation
of jobs, Council Tax income and an increase in local
economic contributions, often providing a catalyst for
wider regeneration.

We work with relevant Government departments and
agencies in delivering programmes such as Help-to-Buy
which supports first-time buyers purchasing their new home.

Through our trade organisation membership, we are able to
respond to key Government and regulatory changes.

Our centralised MP and key stakeholders communications
ensure we address concerns at a Government and
constituent level. Constituent issues raised through local MPs
are managed centrally to ensure we provide a consistent
response as a business.

We have strengthened our governance around engagement
with all MP, MSPs and Welsh Assembly communications and
meetings being reported to the Board. Through this approach,
we have proactively met and engaged with MPs and other
key stakeholders on a number of key topics, including legacy
building safety and planning and construction matters, as
well as dealing with ongoing constituency matters relating
to our developments.

A New Homes Quality Code internal working group has
implemented the required changes to our policies and
practices to ensure that the business was compliant prior
to activation of our registration. Members of this group
liaised regularly with representatives from the NHQB, the
NHOS, and the HBF, to ensure our compliance with the
new requirements.

Risk Management

Our established framework for managing risks has continued to be in place across
the business throughout this financial year, with responsibility to implement the
Board’s policies on risk management and internal control sitting with management.

Our risk management objectives continue to be:

• Assessing emerging and principal risks against an agreed

appetite for risk, which is regularly reviewed.

• 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, control, monitoring, follow-up
and reporting of risks.

Risk management framework

• Developing and implementing action plans to ensure that
risks are mitigated where required, are within our agreed
risk appetite and that improvements are made to our
control environment.

• Ensuring the approach to risk management meets the
needs of the business, senior management and all
key stakeholders.

The Board

Audit Committee

• Overall responsibility for risk management.
• Review, challenge and approve the risk management
framework and corresponding policy, processes and
annual risk plan.

• Review and agree risk appetite.
• Conduct a robust assessment of the emerging and

principal risks facing the Group.
• Review and challenge risk reports.

• 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 risk mitigating actions

and recommendations.

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Executive Management

Group Risk Director

• Review, challenge and approve the risk management
framework and corresponding policy and processes.
• Review and challenge risk information against stated

business objectives.

• Approve risk treatments and actions.
• Approve risk reports for the Board.
• Review and agree risk appetite.

Key

Reports to

Directs and monitors

• Design and implement the risk management

framework and corresponding policy and processes.

• Facilitate and implement the risk management

framework, policy and processes.

• Undertake risk management activities and produce
reports in accordance with risk management policy.

Risk management roles and responsibilities
In all businesses, responsibility for managing risk sits with every employee. In undertaking their roles, employees are assisting in
identifying, assessing and managing risks. Specific roles and responsibilities, as defined in our risk management framework and
corresponding policy, are set out in the diagram below:

Risk management process

Identify

all business
areas

Evaluate

severity of
risks

Treat

to bring within
risk appetite

Action

mitigate risks
(where needed)

Report

monitor risks and
report progress
of mitigation

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Risk Management continued

Risk management process
A 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 including any specialist business areas.

The risk register is reviewed as part of our management
reporting processes, resulting in the regular assessment of
risk, severity and any required mitigating actions. The severity
of risk is determined based on a defined scoring system
assessing risk impact and likelihood.

A summary of risks is reported to management, the
Audit Committee and the Board, which is mainly, but not
exclusively, comprised of risks considered to be outside
of our risk appetite after mitigation. 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
97 to 105.

Financial risk management
The Group’s financial instruments comprise cash and
overdrafts, 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 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 2.3 times(2,3) (2021 – 2.7 times).

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 below.

Bellway p.l.c. Annual Report and Accounts 2022

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. There is no specific concentration of
credit risk in respect of home sales as the exposure is spread
over a number of customers.

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 accounts). 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. Trade and other receivables
includes £18.9 million (2021 – £5.9 million) due from Homes
England relating to the Help-to-Buy scheme. As Homes
England is a UK Government agency, the Group considers
the risk of default to be minimal. Furthermore, the Group
had £20.9 million (2021 – £39.6 million) of financial assets
relating to loans made by Bellway to equity accounted joint
arrangements (note 12). The counterparties to these loans
are expected to make a profit and therefore repay the loans
in full. The Group therefore considers the risk of default 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 overdraft facilities, 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 outlined in note 17 to the accounts are
considered to be adequate in terms of flexibility and liquidity
for its medium-term cash flow needs. Relationships with
banks, fixed rate sterling USPP noteholders and overall
cash management are co-ordinated centrally. The Group is
operating well within its financial covenants and available
debt facilities.

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 accounts).
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, amongst other things,
the term and whether a fixed or floating interest rate
is obtained.

During the year ended 31 July 2022, it is estimated that
an increase of 1% in interest rates applying to the full year
would have increased the Group’s profit before taxation
by £2.2 million (2021 – £2.7 million).

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.

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 2024, aligning with
the first year-end after the minimum 12 month assessment
period. For this reason, they continue to adopt the going
concern basis in preparing the financial statements as
discussed further on pages 129 and 148.

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 2026, 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.

Factors considered in assessing the long-term viability

In assessing the Group’s forecasts and long-term viability,
the following factors are considered:

Factor

Consideration

Group’s latest
performance

Group’s current
financial position

Group’s strategy

Principal risks

This considers the trading performance
in both the year ended 31 July 2022
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.

This considers the latest net cash 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 2022.

Whether the base forecast is consistent
with the Group’s strategy, both financial
and non-financial.

Whether the principal 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.

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Group forecast methodology

The Group’s bottom-up forecasts are updated on at least a
monthly basis by the 22 operating divisions, and are subject
to review by the divisional management team, Regional
Chairmen and Group management.

The forecasts consider the profitability, cash flows, 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.

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Risk Management continued

The main assumptions used in preparing the forecasts are:

• 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 Building Safety Pledge.
• Working capital requirements.
• Dividend payments.

• Corporation 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 79 to 83.
The principal risk that has been identified as the most severe
and plausible scenario is:

Risk

Relevance to scenarios

External environment:
Including housing demand,
mortgage availability and
government housing policy.

A reduction in private
completions and private ASP
due to a decline in demand.

The most severe but plausible downside scenario is a severe
recession. It includes the following principal assumptions:

• Private completions in H1 FY23 are supported by the strong
forward order book, but marginally reduce compared to
that achieved in H1 of FY22. In the 12 months to 31 January
2024, 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.

• Private average selling price in H1 FY23 remains in line with
internal forecasts due to the strong order book position.
In the 12 months to 31 January 2024, 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 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 is reduced in line with

housing revenue.

• Dividends were reduced in line with earnings.

None of the mitigating actions included within the scenario
would permanently hamper the long-term growth aspirations
of the Group.

In addition, several further 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 existing substantial
land holdings and further reducing construction spend in
recognition of the strong carried forward work-in-progress
position at 31 July 2022.

The output of this review considered the profitability, cash
flows and funding requirements of the Group over the period
to 31 July 2026. The assessment included an assumption that
existing debt facilities remained in place, but, very cautiously,
were not renewed at the end of their term.

In the most 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. Based on the results of this review, 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 2026.

Bellway p.l.c. Annual Report and Accounts 2022

Principal Risks

The Board has completed its assessment of the Group’s emerging and principal
risks. The following nine principal risks to our business have been identified:

Strategic relevance

KPIs

Mitigation

Risk and description
Construction resources
Shortages of building
materials and
appropriately skilled
subcontractors at
competitive prices.

• Failure to secure the

required quantity and quality
of resources causes delays
in construction, impacting
the ability to deliver volume
growth targets.

• Pricing pressures / increased

costs impact returns.

• Number of
homes sold.
• Operating profit.
• Operating margin.
• EPS.
• Gross margin.
• Customer

satisfaction score.

Economy and market
Changes in the
external environment
(including, but not
limited to, house price
inflation, interest rates,
mortgage availability,
unemployment,
Government housing
policy and post-Brexit
trade agreements)
reduce the affordability
of new homes.

• Reduced affordability has
a negative impact on
customer demand for new
homes and consequently
our ability to generate sales
at good returns.

• Number of
homes sold.
• Operating profit.
• Operating margin.
• RoCE.
• EPS.
• Gross margin.
• Customer

Satisfaction score.
• Reservation rate.
• Order book value.

• Robust forecasting and

forward planning of labour and
materials requirements.

• Processes are in place to select,

appoint, manage, and build long-
term relationships with subcontractors
and suppliers.

• Review of subcontractor and

supplier performance, with regular
communications to understand their
position and any potential issues with
their own supply chain.
• Competitive rates and

prompt payment.

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• Board level monitoring of the housing
market and economic environment
alongside key business metrics,
leading to development of action
plans as necessary.

• Disciplined operating framework,
strong balance sheet and low
financial gearing.

• Product range and pricing strategy

based on regional market conditions.

• Regular engagement with industry
peers, representative bodies, and
new build mortgage lenders.
• Use of sales incentives such as

part-exchange, and Government-
backed schemes to encourage the
selling process.

• Quarterly site valuations and monthly

budget reviews based on latest
market data.

Bellway p.l.c. Annual Report and Accounts 2022

Strategic Report

Principal Risks continued

Strategic relevance

Risk and description
Environment and climate change
Failure to evolve
sustainable business
practices and operations
in response to climate
change, including
physical environmental
impacts and transition
risks associated
with new regulation,
reporting requirements,
and increased social /
market expectations.

• There is an increased focus
on the actions taken by
businesses in response to
climate change and the
disclosures made. Failure to
improve policies, reporting
and performance in line
with new Government
regulations and
heightened social / market
expectations could lead
to financial penalties and
reputational damage.
• The physical impacts of
climate change (such as
extreme weather) could
lead to disruptions within
the supply chain and
build programmes.

Health and safety
A serious health and
safety breach and/or
incident occurs.

• Failure to maintain safe
working conditions
would impact employee
wellbeing and the
creation of a positive
working environment.

KPIs

Mitigation

• Tonnes of carbon
emissions per
legal completion.

• Percentage

of renewable
electricity.

• Tonnes of waste
per home built
• Percentage of
waste diverted
from landfill.

• Continual monitoring of new and

evolving requirements as part of our
legal and regulatory compliance
framework, including TCFD, the
Future Homes Standard and the
Environment Act.

• Climate change and carbon

reduction is a key priority under
the Group’s Better with Bellway
sustainability strategy.

• Dedicated sustainability, innovations
and biodiversity resource in place
to assess risks relating to climate
change, monitor performance and
drive improvement.

• Consultation with specialist external
advisors and subject matter experts
(e.g. sustainability consultants).
• Regular review of the design and

features of new homes, along with
construction methods and the
sustainability of materials, to increase
energy efficiency and reduce waste.

• Investment in energy-saving
measures for offices and sites,
including transition to REGO
certified electricity.

• Development of science-based

carbon reduction targets.

• Number of

• Health and safety policy and

RIDDOR seven-day
reportable incidents
per 100,000
site operatives.
• Health and safety

procedures in place, supported by
Group-wide 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
against health and safety policies
and legislation.

• The Board considers health and
safety matters at each meeting.

• Injury to an individual whilst

incident rate.

at one of our business
locations could delay
construction and result
in criminal prosecution,
civil litigation, and
reputational damage.

• Number of NHBC

Pride in the
Job Awards.

Bellway p.l.c. Annual Report and Accounts 2022

Risk and description
Human resources
Inability to attract,
recruit and retain high
quality people.

Strategic relevance

KPIs

Mitigation

• Failure to attract and retain
people with appropriate
skills would affect our ability
to perform and deliver
our strategy and volume
growth targets.

• Employee turnover.
• Number of

graduates, trainees,
and apprentices.
• Employees who

have worked for the
Group for 10 years
or more.

• Training days
per employee.

• Senior

management
gender split.

• Percentage of staff
in earning and
learning roles.

• Employee

engagement survey
response rate.

IT and security
Failure to have suitable
IT systems in place
that are appropriately
supported and secured.

• Poor performance of our
systems would disrupt
operational activity and
impact the delivery of
our strategy.

• An IT security breach could

result in the loss of data, with
significant potential fines
and reputational damage.

• Operating profit.
• Operating margin.
• RoCE.
• EPS.
• Gross margin.
• Customer

Satisfaction score.

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• Continued development
of our Group HR function
and implementation of our
people strategy.

• Established human resources
programme for apprentices,
graduates, and site management.

• Monitoring of staff turnover

and analysis of 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.

• Succession plans in place and key
person dependencies identified
and mitigated.

• Robust programme of training

provided to employees which is
regularly updated and refreshed.

• Senior Leaders Development

Programme completed, with Middle
Managers Programme currently
being developed.

• Continued investment in
infrastructure and systems.

• Group-wide systems in operation

which are centrally controlled by an
in-house IT function, supported by 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.

• Security Committee in place.

Bellway p.l.c. Annual Report and Accounts 2022

Strategic relevance

KPIs

Mitigation

Strategic Report

Principal Risks continued

Risk and description
Land and planning
Inability to source
suitable land at
appropriate gross
margins and return on
capital employed.

Delays and complexity in
the planning process.

• Insufficient land at

appropriate margins,
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.

• Number of
homes sold.
• Operating profit.
• Operating margin.
• RoCE.
• EPS.
• Gross margin.
• Number of plots
in owned and
controlled land
bank with DPP.

• Number of plots in

‘pipeline’.

• Number of plots
in strategic land
bank – positive
planning status.
• Number of plots
in strategic land
bank – longer-
term interests.
• Number of plots

acquired with DPP.

• Number of plots
converted from
medium-term
‘pipeline’.

• Number of
homes sold.
• Operating profit.
• Operating margin.
• RoCE.
• EPS.
• Gross margin.

• Continued development of our

Group Strategic Land function and
implementation of our land strategy.

• Increased investment in land and
more sites with detailed planning
permission (DPP).

• Regular review by both 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.

• In-house expertise from Group
functions such as Company
Secretariat, Legal, Health and Safety
and Technical / Design, who advise
and support divisions on legal
compliance and regulatory matters.

• Consultation with Government

agencies, specialist external legal
advisors and subject matter experts,
(e.g., fire safety engineers).
• Strengthened Group-wide

policies, guidance, and training
in place supported by externally
facilitated whistleblowing and
reporting procedures.

• Continual monitoring and review
of changes to legislation and
regulation, including Government
guidance, advice notes and sector
specific updates.

• Regular liaison with industry peers

and the HBF on compliance
requirements and matters.

Legal and regulatory compliance
Failure to comply
with legislation and
regulatory requirements.

• Lack of an appropriate

compliance framework and/
or compliance breaches
could incur fines, delay
business operations and
lead to re-work across
sites, which will impact our
reputation and profitability.

Bellway p.l.c. Annual Report and Accounts 2022

Strategic relevance

Risk and description
Unforeseen significant event
An unforeseen significant
national or global
event occurs.

• The economic uncertainty

brought about by an
unforeseen significant
event, such as the COVID-19
pandemic, could materially
impact the Group’s operations
and liquidity.

• Damage to reputation
if the Group is not
perceived to be following
Government guidelines and
acting responsibly.

• We are also mindful of the
continuing conflict and
humanitarian crisis in Ukraine.
We continue to monitor the
situation, acknowledging
the potential impact on the
UK economy, supply chains
and inflation.

KPIs

Mitigation

• NAV.
• Operating profit.
• Operating margin.
• RoCE.
• EPS.
• Total dividend per
ordinary share.

• Gross margin.
• Reservation rate.
• Order book value.
• Employee turnover.

• Strong balance sheet, low financial

gearing, committed bank loan facilities
and USPP debt which would help
ensure resilience during a recession.
• Maintenance of business resilience and
continuity plans covering offices, sites,
and IT.

• Experienced and well-established

senior management team.

• Continued investment in systems

and infrastructure to enable robust
home working.

• Monitoring of Government guidelines
(including Public Health England and
the Construction Leadership Council).

• Regular communications with

subcontractors and suppliers to
understand their position and any
potential issues with their own
supply chain.

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The Group also considers any emerging risks that have the potential to impact the achievement of our strategy, but which
cannot yet be fully defined and assessed. These uncertainties are reviewed as part of our established risk management
framework, discussed regularly by management, the Audit Committee and the Board, and elevated to principal risks (either as
new risks or an extension of existing risks) when warranted.

Bellway p.l.c. Annual Report and Accounts 2022

Investing in People

Bellway wouldn’t exist without the talent and
commitment of our colleagues. We invest in our
people to ensure that they have the training and
ongoing development necessary to develop
their careers and produce work they can be
proud of.

W E ’ R E M A K I N G
B E T T E R C H O I C E S
F O R O U R C O L L E A G U E S

Creating a safe, diverse, and inclusive environment,
as well as investing in and upskilling our workforce,
are just some of the ways we can ensure that Bellway
is an employer of choice.

Read more on page 40.

Diversity, Inclusion
and Belonging

As a responsible employer, we are committed
to being an inclusive organisation that strives
to create a working environment that is open,
diverse, and free from all forms of prejudice
and discrimination.

Bellway p.l.c. Annual Report and Accounts 2022

The Future of Bellway

As an active member of ‘The 5% Club’, we commit
to having at least 5% of our workforce employed in
‘earn and learn’ roles, including apprenticeships,
student placements, and graduate roles.

At least 5%

of our workforce employed in ‘earn and learn’ roles

Governance

Board of Directors and Group General
Counsel and Company Secretary

Chairman’s Statement on
Corporate Governance

Board Leadership

Division of Responsibilities

Nomination Committee Report

Audit Committee Report

Remuneration Report

Director’s Report

Independent Auditor’s Report

106

126

130

Bellway p.l.c. Annual Report and Accounts 2022

Governance

Board of Directors and Group General Counsel and Company Secretary

John Tutte
Chairman

Appointed 1 March 2022

Jason Honeyman
Group Chief Executive

Appointed 1 September 2017

NR*

Background and experience
John was appointed to the Board on 1 March 2022 as
Non-Executive Chairman Designate, and succeeded Paul
Hampden Smith as Non-Executive Chairman and Chair of
the Nomination Committee on 1 April. He is qualified in civil
engineering and has over 40 years experience within the
industry through various senior roles at Redrow plc, including
Group Chief Executive, Executive Chairman and then Non-
executive Chairman, prior to him retiring from the Board
in 2021.

Other appointments
• Home Builders Federation – Non-executive director.

Background and experience
Jason commenced employment with the Group in January
2005 as Managing Director of the Thames Gateway division,
becoming Southern Regional Chairman in December 2011.
Jason joined the Board as Chief Operating Officer and was
promoted to Group Chief Executive on 1 August 2018.

Denise Jagger
Senior Independent
Non‑Executive Director

Appointed 1 August 2013

Jill Caseberry
Independent
Non‑Executive Director

Appointed 1 October 2017

Background and experience

Denise, a solicitor, was appointed as a Non-Executive
Director on 1 August 2013 and became senior independent
non-executive director on 1 November 2018. Until 30 April
2020, Denise was a consultant at Eversheds-Sutherland LLP,
having been a partner from 2004 to April 2019. Previously she
was Company Secretary and General Counsel at ASDA
Group plc, and prior to this she worked in corporate finance
with Slaughter and May. Denise’s previous non-executive
directorships include Redrow plc and SCS Upholstery plc.

Other appointments
• CLS Holdings plc – non-executive director, Chair of
the Remuneration Committee and a member of the
Audit Committee.

• Pool Reinsurance Limited – non-executive director and

Chair of Remuneration Committee and Nominations and
Conflicts Committee.

• University of York – Chairman and pro Chancellor,

Member of the Finance Committee, and Member of the
Remuneration Committee

• The National Trust – Trustee, Member of Remuneration

Committee, and Member of Audit Committee

Background and experience
Jill was appointed to the Board as a Non-Executive Director
on 1 October 2017. Jill has extensive sales, marketing and
general management experience across a number of blue-
chip companies including Mars, PepsiCo and Premier Foods.

Other appointments
• Halfords Group plc – non-executive director, Remuneration
Committee Chair and a member of the Audit, Nominations
and ESG Committees.

• C&C Group plc – non-executive director and a member of

the Remuneration and ESG Committees.

• St. Austell Brewery Company Limited – Senior Independent

Director. Chair of the Remuneration Committee and a
member of the Audit and Nomination Committees.

• Bakkavor Group plc – non-executive director, a member of

the Remuneration Committee, a member of the Nomination
Committee and designated workforce engagement Non-
executive Director.

Bellway p.l.c. Annual Report and Accounts 2022

Keith Adey
Group Finance Director

Appointed 1 February 2012

Simon Scougall
Group General Counsel
and Company Secretary

Appointed 1 February 2016

Background and experience
Keith, a Chartered Accountant, joined Bellway in December
2008 as Group Chief Accountant, becoming Group Finance
Director on 1 February 2012. Prior to joining Bellway he
worked at KPMG and Grainger plc.

Background and experience
Simon, a solicitor, was appointed Group General Counsel and
Company Secretary in February 2016. Simon joined Bellway
in March 2011 and has held senior positions within the Group
including that of Group Commercial Director. He has over 20
years’ experience in the housebuilding sector, working either
in-house or for clients in private practice.

Sarah Whitney
Independent
Non‑Executive Director

Appointed 1 September 2022

Ian McHoul
Independent
Non‑Executive Director

Appointed 1 February 2018

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Background and experience

Sarah, a chartered accountant, was appointed to the Board as
a Non-Executive Director on 1 September 2022.

She was formerly a partner at PricewaterhouseCoopers and
held roles as Head of the Consulting & Research business
at DTZ Holdings (now Cushman & Wakefield), and then at
CBRE as an Executive Director heading the Government &
Infrastructure team.

Previously Sarah has held a Non-executive Director role at
St Modwen Properties PLC and was Chair of the Audit & Risk
Committee of The Land Restoration Trust.

Other appointments
• A non-executive director and Chair of the Audit and

Management Engagement Committees at JP Morgan Global
Growth & Income plc.

• Chair of the Supervisory Board of BBGI Global Infrastructure

S.A. and Chairman of the Nomination Committee.

• A non-executive director and member of the Audit and

Management Engagement Committees of Tritax EuroBox plc.
• Trustee and Chair of the Investment Committee of The Canal

& River Trust.

Key:

Audit
Committee

Board Committee on Non-Executive
Directors’ Remuneration

Nomination
Committee

Remuneration
Committee

Denotes
Committee Chair

Background and experience
Ian, a Chartered Accountant, was appointed to the Board as
a Non-Executive Director on 1 February 2018, and appointed
as Chairman 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.
He was also a non-executive director of Premier Foods plc
from July 2004 to April 2013.

Other appointments
• Videndum plc – Chairman.
• Young & Co’s Brewery, P.L.C. – non-executive director and
Chairman of the Audit Committee and member of the
Remuneration Committee.

Paul Hampden Smith
Chairman

Appointed 1 August 2013
Resigned 31 March 2022

Bellway p.l.c. Annual Report and Accounts 2022

Governance

Chairman’s Statement on Corporate Governance

The UK construction sector has historically been a male
dominated environment and tangible change will take some
time to accomplish. We are committed to increasing the
number of females in the business, especially in senior roles,
and we continue to invest in our apprentice and graduate
schemes to bring new diverse talent into the business.

Sustainability
The Board has worked hard to set an ambitious ESG agenda,
and I am pleased to update you on the significant efforts that
have been made in this area during the year.

During the year we launched our new Better with Bellway
strategy which has sustainability at its heart and reinforces
our commitment to operating in a responsible and
ethical manner.

In 2017, the Financial Stability Board released its report on
the recommendations of the TCFD. We acknowledge the
importance of these disclosures and we are committed to
implementing the recommendations in full. This is our second
year of making TCFD disclosures, and we will continue to
refine and develop our approach. More information on TCFD
reporting can be found on page 46 to 53.

In addition, as part of our Better with Bellway strategy, we
have chosen to report against GRI, SASB and SDGs reporting
frameworks as these were identified as being most relevant
to our investors.

GRI reporting standards enable organisations to report on
their impact on the economy, environment and people.
We have chosen to report against the core option of the 2016
GRI standards, this is the first time we have reported against
the GRI standards (more detail on page 194 to 198).

SASB have produced standards to focus companies
disclosing performance on the most financially material
sustainability topics for the benefit of investors. We have
reported against the standards applicable for our industry
for the first time this year (more detail on page 189 to 193).

There are 17 SDGs in total, and Bellway have mapped the
goals which are applicable against the new Better with
Bellway strategy (more detail on page 199).

Board effectiveness and evaluation
In line with the UK Corporate Governance Code, we
undertake a formal and rigorous annual evaluation of our
own performance and that of our Committees and individual
directors. We operate a three-year cycle of internal and
externally facilitated reviews. Bellway’s last externally facilitated
evaluation took place in 2020. The 2022 evaluation was
conducted internally with the support of the Group General
Counsel and Company Secretary.

Each Director and the Group General Counsel and
Company Secretary completed a questionnaire in relation
to the performance of the Board and any Committees on
which they were a member. This was followed by individual
discussions with each Director and the Group General
Counsel and Company Secretary on the points raised.

My performance was assessed by the Senior Independent
Non-Executive Director, who considered the views of
the other Directors and the Group General Counsel and
Company Secretary as part of the process.

We have strong foundations and
a strategic plan in place to improve
the diversity of the Board and the Group
as a whole.

John Tutte
Chairman

Dear Shareholder
I am delighted to have joined Bellway as Chairman and I
have been impressed with the Company’s commitment
to corporate governance which is embedded within the
business. I do however recognise we can build on these
strong foundations and we have a strategic plan to improve
corporate governance, sustainability and diversity at all levels
of the organisation.

Diversity
The Board is naturally committed to achieving long-term
success for the Group through the delivery of its strategy.
We believe a highly qualified board with directors from a
diverse background will improve corporate governance
and decision-making. The Board is therefore committed to
making appointments on merit, against objective criteria and
strongly supports boardroom diversity in all its characteristics,
including but not limited to, age, gender, race, education,
professional background and experience. As part of Board
succession planning, the Nomination Committee has been
actively working on promoting diversity with the objective of
aligning Board composition with the Parker Review and The
FTSE Women’s Leaders Review recommendations. During the
year, Sarah Whitney has been appointed as Non-Executive
Director, I am therefore pleased to report that women now
make up 43% of our Board. The Board recognises that
increased ethnic diversity is necessary and continues to
actively work towards this. Our Board Diversity Policy is
available to view on our website.

Diversity extends beyond the boardroom and the Board
values diversity across the workforce. Becoming an Employer
of Choice is a flagship pillar of our Better with Bellway strategy.
(more details on pages 40 & 41). and this objective includes
becoming a more open, diverse and inclusive organisation.
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 our business. We want to ensure that equality,
diversity and inclusion is embedded in our culture, and
reflected in our people and behaviours.

Bellway p.l.c. Annual Report and Accounts 2022

I evaluated the performance and effectiveness of each of
the Directors and the Group General Counsel and Company
Secretary. Each Committee Chairperson reviewed the
responses to the Committee questionnaires before reaching
their conclusions on how the Committees had performed
during the year. The Board, led by myself, evaluated its
own performance.

These evaluations concluded that the Board and Committees
were well run and continued to be operating effectively.

In September 2022 myself, and the Executive Directors hosted
an in person, meet the team event at our development in
Great Dunmow, attended by institutional investors, analysts
and shareholders, with other members of the senior
management team present.

We also consulted with a number of shareholders on our
plans for Executive Director remuneration. The Board receives
regular updates from our advisers on investors’ and analysts’
feedback on the Group.

The main areas highlighted for further development or
improvement were:

• The Board should give consideration to its formal objectives

and regularly appraise itself against them.

• To further consider Board and Committee membership in

line with the Parker Review recommendations.

• Further promote greater interactions between senior

managers and the Board to better understand
current challenges.

The areas highlighted for improvement in last year’s internally
facilitated Board evaluation and the progress made are set out
in the table below.

Compliance with the UK Corporate Governance
Code (the ‘Code’)
I am pleased to confirm that the Board considers that it has
complied throughout the year with the detailed provisions of
the Code published in July 2018. The Code is available, free
of charge, from the Financial Reporting Council, online at
www.frc.org.uk or by telephoning 020 7492 2300.

Shareholder engagement
The Group encourages active dialogue with its private and
institutional shareholders, and the Directors communicate
with both existing and prospective institutional shareholders
on a regular basis and as requested. During the year a
Group IR Director has been appointed to further enhance
this engagement.

Shareholders are also kept up-to-date with our progress
throughout the year through the Annual Report and
Accounts, and announcements to the London Stock
Exchange for the full year and half year results and
trading updates.

The whole Board is available for questions at the AGM,
to which institutional and private investors are invited to
attend. I am pleased to report that at the last AGM, over 98%
of total votes cast were in favour of the resolutions put to
shareholders by the Board.

The Senior Independent Non-Executive Director and I
are always available to discuss issues with current and
prospective shareholders and institutions. In addition, the
whole Board is regularly updated at Board meetings on
shareholder and investor views and activities by the Group
Chief Executive, Group Finance Director and Group General
Counsel and Company Secretary.

Further information for shareholders is available on our
website at www.bellwayplc.co.uk.

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John Tutte
Chairman

17 October 2022

Board evaluation 2020/21 update

Action point

Progress

Annual review of the crisis management protocol with a
focus on learnings.

The crisis management protocol was reviewed during
the year and has been scheduled for annual review
going forward.

Have clarity of board objectives based on the evaluation
feedback and identify tangible actions for what will be
done differently.

The feedback has recognised progress but given the
recent change in board composition there is further work
to undertake.

ESG progression.

The Better with Bellway strategy has been launched
during the year which includes ambitious ESG targets.

Following COVID-19, the reintroduction of Chairman
dinners and divisional visits by Non-Executive Directors.

Chairman dinners and divisional visits by Non-Executive
Directors have been reintroduced.

Chairman and Senior Independent Director
succession planning.

A new Chairman was appointed during the year and a
new Senior Independent Director will be announced
ahead of the AGM.

Bellway p.l.c. Annual Report and Accounts 2022

Governance
Governance

Board Leadership

Left to Right: Keith Adey Denise Jagger John Tutte Sarah Whitney

Ian McHoul Jason Honeyman Jill Caseberry Simon Scougall

Board of Directors

Audit
Committee

Nomination
Committee

Remuneration
Committee

Board Committee on
Non-Executive Directors’
Remuneration

See pages 97 to 105.

See pages 95 to 96.

See pages 106 to 125.

See page 94.

Executive Directors

Group General Counsel
and Company Secretary

Head Office Senior
Management Team

Better with Bellway
Leadership Committee

Regional Chairmen

Divisional Boards

Bellway p.l.c. Annual Report and Accounts 2022

Division of Responsibilities

Statement about applying the principles
of good governance
The Board acknowledges the importance of, and is
committed to the principle of, achieving and maintaining
a high standard of corporate governance and in promoting
a positive culture within the Group.

Group Chief Executive
• Implementing the strategy agreed by the Board.
• Leading the Executive Directors, the Group General
Counsel and Company Secretary and the senior
management team in the day-to-day running of the
Group’s business.

We have applied the principles of good governance, including
both the Main Principles and the Supporting Principles, by
complying with the Code. Further explanations of how the
Main Principles and Supporting Principles have been applied
are set out below and in the Remuneration Report.

Leadership
The Board is the principal decision-making body of the Group
and is collectively responsible to shareholders for promoting
the long-term success of the Group.

At the date of this report, the Board consists of seven directors
whose names, responsibilities and other details appear on
pages 86 to 87. Currently two of the directors are executive
and five are non-executive.

The Board sets the strategic aims, ensures that the necessary
resources (including finances, people and materials) are in
place for the Group to meet these objectives and also reviews
management performance. It defines the Group’s values and
standards and ensures that its obligations to its shareholders
are understood and met.

The Board has put in place the following structure which
allows it to provide entrepreneurial leadership of the Group
and to delegate authority for operational matters through a
framework of prudent and effective controls, which enable
risk to be assessed and managed.

Chairman
• Promoting the highest standards of integrity, probity

and corporate governance throughout the Group and
particularly at Board level including ensuring that the
correct cultural tone is set from the top.

• Ensuring that the Group complies with the requirements

of the UK Corporate Governance Code and adheres to the
highest standards of governance.

• Leading the Board and ensuring its effectiveness.
• Setting the Board’s agenda.
• Ensuring the Directors receive accurate, timely and

clear information.

• Ensuring effective communication with shareholders.
• Ensuring the effective conduct of Board meetings and
facilitating the effective contribution of all directors and
the Group General Counsel and Company Secretary.
• Leading the evaluation of the performance of the Board,
its Committees, individual directors and Group General
Counsel and Company Secretary.

• Overseeing the induction of any new Board Directors and

the development of existing Directors.

• Ensuring that 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 General
Counsel and Company Secretary.

• Approving land purchases over specified limits in

conjunction with the wider Board.

• Ensuring the effective implementation of Board decisions.
• Reviewing the Group’s organisational structure and

recommending changes as appropriate.

• Supervising the activities of the Regional Chairmen

and divisional senior management, overseeing their
development and succession planning.

• Overseeing Group operations.
• Overseeing the activities of subsidiary companies.
• Approving land purchases, within specified limits.
• Overseeing divisional expansion plans.
• Together with the Chairman, 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 Chairman informed of all important matters.

• Overseeing the health and safety, sales and marketing,

public relations, and technical departments.

Group Finance Director
• Devising and implementing the financial strategy and

policies of the Group, including treasury and tax.

• Developing budgets and financial plans.
• Responsible for the Group’s investor relations activities.
• Responsible for delivering the Board agreed sustainability

and ESG strategy.

• Overseeing the sustainability, finance, IT and

risk departments.

Senior Independent Non-Executive Director
• Acting as a sounding board for the Chairman, Executive

Directors and the Group General Counsel and
Company Secretary.

• Being available to shareholders.
• Leading the annual appraisal of the Chairman.

• Holding meetings with the Non-Executive Directors without

the Chairman present.

Non-Executive Directors
• Constructively challenging management.
• Contributing to the development of strategy.
• Scrutinising the performance of management.
• Ensuring integrity of financial information and financial
controls and ensuring systems of risk management
are robust.

• Determining appropriate levels of Executive Director,
Group General Counsel and Company Secretary and
Regional Chairman remuneration.

• Appointing and removing Executive Directors and

succession planning.

• Serving on Board committees.

Bellway p.l.c. Annual Report and Accounts 2022

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Governance

Division of Responsibilities continued

Group General Counsel and Company Secretary
• Supporting the Chairman and Group Chief Executive in

fulfilling their duties.

• Keeping the Board regularly updated on corporate
governance, legal, commercial and HR matters.

• Responsible for legal compliance throughout the Group

including ensuring policies and procedures are maintained
and updated on a regular basis.

• Providing support to the Board and Committees.
• Overseeing the legal, company secretarial, HR, land,

strategic land and planning departments.

• Supporting the Group Finance Director on the sustainability

and ESG agenda.

• Managing the Group’s external legal panel.

Better with Bellway Leadership Committee
• The Better with Bellway Leadership Committee is comprised

of Group Finance Director, Group General Counsel and
Company Secretary, Group Production Managing Director
and Group Head of Sustainability.

• Oversees the continued development of the Better with

Bellway strategy, objectives, and targets.

• Engages with the Board and key external stakeholders.

• Works with senior management across the business
to embed the Better with Bellway strategy into day to
day activities.

Board effectiveness
All Directors have access to the advice and services of
the Group General Counsel and Company Secretary and
his department. All of the 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 of the Directors will retire
from the Board and offer themselves for re-election or
election at the forthcoming AGM. None of the Executive
Directors hold external directorships.

The Board, its Committees and the individual Directors
are subject to annual performance evaluation and all
Directors are subject to annual re-election by shareholders.
The Board regularly reviews the Directors’ other interests and
appointments to ensure that there are no conflicts of interest.

The Chairman 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, this will be taken into
careful consideration when addressing Board succession.

Bellway p.l.c. Annual Report and Accounts 2022

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 these procedures have
operated throughout the year.

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 way forward and ensures
that the necessary financial, human, land and other resources
are in place to meet its objectives. Areas focused on during
the strategy day were the following strategic priorities of:

1. Delivering volume growth.
2. Better with Bellway.
3. Value creation.

Each year we hold separate annual conferences for
the divisional Managing, Finance, Sales, Technical and
Commercial Directors and our Planning Managers which are
attended by Executive Directors or members of the Group
Office senior management team.

We also host informal Board dinners where senior
management meet members of the Board. The Chairman
meets with Executive Management and individual Directors
on a regular basis outside of Board meetings. This process
allows for two-way discussion, enabling the Chairman
to act as necessary to deal with any issues relating to
Board effectiveness.

Membership and meeting attendance

Director

John Tutte
(Chairman)

Paul Hampden Smith
(Chairman)

Date appointed
to the Board

1 March 2022, appointed
Chairman 1 April 2022

1 August 2013, appointed
Chairman on 12
December 2018
Resigned 31 March 2022

Denise Jagger

1 August 2013

Jill Caseberry

Ian McHoul

1 October 2017

1 February 2018

Jason Honeyman

1 September 2017

Keith Adey

1 February 2012

Sarah Whitney

1 September 2022

Number of
meetings
attended during
the year

4/4

5/5

8/8

0/0

The number of Committee meetings are set out in each
Committee report. There were no absences from any Board
or Committee meetings.

The Executive Directors and Group General Counsel and
Company Secretary regularly met with the divisions during
the year. The Board also received presentations from the
Regional Chairs and certain Group Functional Heads, with an
update on their operating area including the opportunities
and challenges they face, and from external advisors.

Each Non-Executive Director separately visits at least one
division during the year, independent of the Executive
Directors, and reports their key findings and observations
at the next Board meeting.

Meetings with operational management ensured that the
Board’s standards and values for integrity and honesty are
disseminated. Each of our divisions 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. In this way we create a culture that motivates and
rewards our colleagues. 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,
Board dinners and the employee awards. The Board has
concluded that the corporate culture of the Group is of a
high standard.

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, it has a series of matters that are dealt with at
regular Board meetings including both an operational and
strategic review, a financial review, major land acquisitions,
major projects, risk, health and safety, sales and customer
care, HR, reporting requirements, corporate governance and
internal control, including any whistleblowing issues.

The Board also takes a report from the Group General
Counsel and Company Secretary on legal, HR, commercial
and corporate governance matters at each Board meeting.

In between Board meetings, the Directors receive updates
from the Chairman or the Group General Counsel and
Company Secretary to advise them of any significant matters
affecting the Group or its performance.

During the year the work carried out by the Board included:

• Strategy.
• Considering regular reports on KPIs from the Group

Chief Executive.

• A review of risk and internal control.
• Consideration of recommendations from the

Board Committees.

• Scrutiny of reports from the Group Chief Executive, Group
Finance Director, Group General Counsel and Company
Secretary and senior management at each Board meeting.

• Considering regular reports on health and safety matters

from the Group Chief Executive and approval of the health
and safety targets for FY23.

• Approval of major land purchases.
• Board evaluation.
• Approval of debt facility agreements.
• Receiving presentations from the four Regional

Chairmen on the performance of the divisions under
their responsibility.

• Receiving presentations from Finance, HR, IT, Procurement,

Sales and Marketing, Commercial and Technical Head
Office departments.

• Receiving presentations on sustainability and approval of

corporate responsibility targets for FY23 from the Better with
Bellway Leadership Team.

• Approval of the Better with Bellway strategy.
• Approval of signing up to the Building Safety Pledge.
• Approval of the Group’s tax strategy.
• Approval of major IT expenditure.
• Approval of the Group’s insurance programme.
• Approval of the Group’s Slavery and Human Trafficking

Statement for 2021.

• Approval of the Annual Report and Accounts for 2020/21.
• Approval of the preliminary announcement, interim results

and trading updates.

• Recommending the final dividend for 2020/21 to be

approved by shareholders.

• Approval of the interim dividend for 2021/22.
• Defence document review and meeting with

corporate advisors.
• Crisis protocol review.
• Approval of HR (including Equality, Diversity and Inclusion)

KPIs.

• Receiving regular updates on legacy apartment schemes
where fire safety improvements may be required or where
works are planned or underway.

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Bellway p.l.c. Annual Report and Accounts 2022

Governance

Division of Responsibilities continued

Training and development
The Board receives appropriate training and updates on various
matters relevant to its role and responsibilities. Training needs
are reviewed as part of the performance evaluation process
through the Board’s skills matrix and on an ongoing basis.

Due to the recent appointment of John Tutte as Chairman,
the annual board evaluation was moved to the September
board meeting. Following this year’s evaluation no specific
training needs were identified.

Non-Executive Directors attend external training sessions
designed specifically for non-executives and members of
Board Committees as and when required.

Board balance and independence
The roles of Chairman and Group Chief Executive are separate,
with a clear division of responsibilities, ensuring a balance of
responsibility and authority at the head of the Group.

The Company considers all of its Non-Executive Directors,
including the Chairman, to be independent, as defined in the
Code. Each of the Independent Non-Executive Directors has,
at all times, acted independently of management and has no
relationship that would materially affect the exercise of his or
her independent judgement and decision-making.

The Senior Independent Director is Denise Jagger, with
whom shareholders may raise any queries or concerns they
may have.

Whenever any Director considers that he or she is interested
in any contract or arrangement to which the Group is or
may be a party, due notice is given to the Board. No such
instances have arisen during the year.

The Board Committees
The Board has formally constituted Audit, Nomination and
Remuneration Committees. The terms of reference for these
Committees are available either on request from the Group
General Counsel and Company Secretary, at the AGM or on
our website: www.bellwayplc.co.uk.

Other Committees of the Board are formed to perform certain
specific functions as and when required.

The work carried out by each of the Board Committees
during the year is described in the reports of the Committee
Chairs which follow.

Board Committee on Non-Executive
Directors’ Remuneration
The Board Committee on Non-Executive Directors’
Remuneration comprises the Executive Directors and is
chaired by the Group Chief Executive.

This Committee meets at least once a year. Last year it met
on one occasion to review the fees and terms of appointment
of the Non-Executive Directors (excluding the Chairman)
and received advice from the Group General Counsel and
Company Secretary and external remuneration consultants
when required.

Bellway p.l.c. Annual Report and Accounts 2022

Nomination Committee Report
Composition, Succession and Evaluation

The Committee’s continued focus during

the year has been on the action plan to
improve engagement and diversity within
the Group.

John Tutte
Chairman of the Nomination Committee

Membership and meeting attendance

Director

John Tutte
(Chairman)

Paul Hampden
Smith (Chairman)

Date appointed to
the Committee

1 March 2022, appointed
Committee Chairman on
1 April 2022

1 August 2013, appointed
Committee Chairman
on 1 November 2018,
resigned 31 March 2022

Denise Jagger

Jill Caseberry

Ian McHoul

1 August 2013

1 October 2017

1 February 2018

Sarah Whitney

1 September 2022

Number of
meetings
attended during
the year

1/1

2/2

0/0

Focus areas for 2021/22
• To focus on Board succession, in particular for the

Chairman and a Non-Executive Director, taking into
account the recommendations from the Parker Review and
the FTSE Women’s Leaders Review.

• To continue our work to improve diversity across the Group.
• With support from the Executive Management Team and
Group HR, to continue to develop the succession plan for
those immediately below Board level.

Focus areas for 2022/23
• To focus on Board succession, in particular for the

Senior Independent Director, taking into account the
recommendations of the FTSE Women’s Leaders Review.

• To consider expanding the number of Non-Executive

Directors appointed to the Board.

• To continue our work to improve diversity across the Group.

• With support from the Executive Management Team and
Group HR, to continue to develop the succession plan for
those immediately below Board level.

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Responsibilities and terms of reference
The main areas of the Nomination Committee’s
(the ‘Committee’) responsibilities are:

• To review the structure, size and composition of the

Board, in accordance with the Board’s Diversity Policy,
and recommend to the Board any changes it considers
appropriate. This encompasses membership of the Board
Committees and the reappointment, if appropriate, of
Non-Executive Directors at the end of their term of office.

• To consider succession planning not only within the

Board but also immediately below Board level and ensure
appropriate plans are in place.

• To identify candidates to fill Board vacancies and nominate
these to the Board for approval. Appointments to the Board
are made on merit using a formal, rigorous and transparent
process against objective criteria recommended by
the Committee. These criteria take into account the
skills, knowledge and experience of existing members
of the Board and the importance of diversity, in all its
aspects, within the Board. The Committee is aware of the
recommendations of the Parker Review and will continue
to take these into consideration when making future
Board appointments. The appointment of a Non-Executive
Director is for a specified term and reappointment is not
automatic, rather it is made on the recommendation
of the Committee.

• To consider diversity and inclusion targets for the Group.

• To carry out an annual performance evaluation of
the Committee and review the results of the Board
performance evaluation in relation to the composition
of the Board.

The Committee meets at least twice a year and operates
under its own terms of reference. These have been agreed
by the Board and are available at www.bellwayplc.co.uk/
investor-centre/governance/committees.

The members of the Committee are shown in the table to
the left.

Activities in 2021/22
• Appointment of the Chairman. Following a rigorous
appointment process, I was appointed as Chairman
of the Board, bringing with me over 40 years of
housebuilding experience.

• The preparation for the appointment of a Non-Executive
Director to the Board in September 2022. The Committee
recognised the importance of gender and ethnic diversity
as part of the succession plan, and worked with an agency
to identify a diverse pool of candidates. The Committee will
continue to work towards increasing the diversity of the
current Board.

• Continued our work to improve diversity across the Group,
taking into account the recommendations from the Parker
Review and the FTSE Women’s Leaders Review.

• The Committee’s continued focus during the year has been
on the action plan to improve engagement and diversity
within the Group. Building on the success of the 2021
Bellway Graduate Recruitment Programme, we continue to
look for the opportunities to recruit female candidates and
candidates from an ethic minority where possible, which
helps drive diversity within Bellway and provides possible
leaders of the future.

Bellway p.l.c. Annual Report and Accounts 2022

Governance

Nomination Committee Report continued

• Planning for Board succession with regard to the

• Rolling out talent and succession planning training to

recommendations of the FCA and the Parker Review.
• Presentation from the Group HR Director on equality,

diversity and inclusion across the Group and the proposed
action plan for further improvement.

• Also during the year, the Committee continued to develop,

with support from the Executive Management Team
and Group HR Director, the succession plan for those
immediately below Board level. This exercise will look to
promote diversity and inclusion where possible.

The Committee had oversight of the following activities
undertaken by the Group General Counsel and Company
Secretary with support from the Group HR Director.

• Equality, diversity and inclusion e-learning continues to

be issued to employees and forms part of the mandatory
training a new employee must undertake. 86% of
employees have completed this training within three
months of joining Bellway.

• Introduction and implementation of a new Recruitment
Policy, to help promote diversity and inclusion across
the group.

• Supporting the development of the company’s network
‘Balance’, which was launched in May 2021 with a focus
on gender diversity and with targeted areas for progress
relating to increasing awareness around agile and
flexible working and core hours, reviewing family friendly
provisions/policies to ensure that they are competitive,
including reviewing the range of PPE to suit all genders.

• Partnering with external charities and organisations to

promote diversity and inclusion.

senior leaders and line-managers, focused on developing
graduates as part of our three-year talent strategy.

• Continuing to work with the Regional Chairs and Managing
Directors to develop progression and retention plans for
key employees within each division, promoting diversity
where possible.

Focus in 2022/23
• Finalising the succession of the Senior Independent

Director whose nine year tenure ended on 31 July 2022.
A successor will be appointed in advance of the AGM.

• To continue our work to improve diversity across the Group,
taking into account the recommendations from the Parker
Review, the FCA Diversity and Inclusion Policy Statement,
and updated The FTSE Women’s Leaders Review.

Director and employee profile
The following tables show the gender and ethnicity split in the
Group as at 31 July 2022. Ethnic diversity was reported for the
first time in 2021, more detail on the Group’s efforts to improve
diversity can be found on page 40:

Male
No.

Male
%

Female
No.

Female
%

Total
No.

Board of Directors

Total
%

Executive
Committee and
direct reports

Senior managers

Other employees

Total

131

1,967

2,114

884

928

168

31 2,851

31 3,042

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

Not
specified

2,222

625

2,869

Board of Directors

Executive Committee and
direct reports

Monthly paid employees

Weekly paid employees

Total

John Tutte
Chairman

17 October 2022

Bellway p.l.c. Annual Report and Accounts 2022

Audit Committee Report
Audit, Risk and Internal Control

The Committee supports the Board in
achieving the objectives of the corporate
governance framework.

Ian McHoul
Chairman of the Audit Committee

Membership and meeting attendance

Director

Ian McHoul
(Chairman)

Date appointed to
the Committee

1 February 2018,
appointed Committee
Chairman on 12
December 2018

Denise Jagger

1 August 2013

Jill Caseberry

1 October 2017

Sarah Whitney

1 September 2022

Number of
meetings
attended during
the year

3/3

0/0

Main focus in 2021/22
• Reviewed the performance of the external auditor following

their first audit cycle.

• Reviewed internal controls and risk management.
• Ensured that the Group has appropriate disclosures as

required by the TCFD.

• Considered the assessment and disclosure of significant risk
and profit items, including legacy building safety expense.

Focus areas for 2022/23
• Ensuring the Group has appropriate internal audit resource.
• Continue to assess significant risk and profit items for

the Group.

• Ensuring that the Group continues to have the appropriate
disclosures as required by the TCFD in the 2023 Annual
Report and Accounts.

I am pleased to present our Audit Committee Report and
to provide you with an update of the work undertaken
by the Audit Committee (the ‘Committee’) during the
period. The update sets out how we have discharged our
responsibilities and provided assurance on the integrity of the
2022 Annual Report and Accounts, alongside an insight into
key areas considered.

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The Committee supports the Board in achieving the
objectives of the corporate governance framework,
with its principal activities focused on:

• the integrity of financial reporting;
• the quality of narrative reporting;
• the quality and effectiveness of internal controls and

risk management systems;

• procedures relating to the prevention and detection

of fraud and bribery;

• risk and internal audit; and

• external audit.

Committee governance
During the year the Committee comprised three independent
non-executive directors, who have significant and diverse
experience. I believe that between us we have an appropriate
and relevant combination of experience and knowledge.
Sarah Whitney joined the Committee on 1 September 2022.

I am a Chartered Accountant, currently Chairman of
Vindenum P.L.C. and Chair the Audit Committee of Youngs
& Co.’s Brewery P.L.C. Previously I served Scottish & Newcastle
plc from 1998 to 2008, first as Finance Director of Scottish
Courage and later as Group Finance Director of Scottish
& Newcastle plc, before becoming Chief Financial Officer of
Amec Foster Wheeler plc until 2017. The Board considers that
I have recent and relevant financial experience as required
by the Corporate Governance Code (the ‘Code’). 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.

Further information on the experience and knowledge of the
Committee members is included in the Directors’ biographies
on pages 86 and 87.

In line with the terms of reference, there were three meetings
of the Committee during the year, scheduled in line with the
Group’s financial reporting timetable, and all members of the
Committee attended each meeting.

The Chairman, Group Chief Executive, Group Finance
Director, Group General Counsel and Company Secretary,
Group Financial Controller and Group Risk Director attend
meetings by invitation. In addition, the Group IT Director and
Head of Infrastructure presented at one meeting in the period.
The Committee is supported by the Deputy Group Company
Secretary who acts as Secretary to the Committee.

Representatives of Ernst & Young LLP (“EY”) attended all
meetings during the year where they also met with the
Committee independently of management. No significant
concerns were raised during the discussions between the
external auditors and the Committee. I also had further
discussions, independently of each other, with the Group
Finance Director, 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.

Bellway p.l.c. Annual Report and Accounts 2022

Governance

Audit Committee Report continued

Responsibilities and terms of reference
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.

A review of the terms of reference during the period
determined that they remain appropriate and in line with best
practice, reflecting the Committee’s responsibilities in line with
both the Code and other regulations.

Main activities during the year
The activities undertaken at the October 2022 meeting
concluded the Committee’s activities in relation to the Group’s
financial reporting for the year ended 31 July 2022.

The main activities performed by the Committee at these
meetings are described below:

Meeting date

Activities

October 2021

The Committee:

• Reviewed the final draft of the 2021 Annual Report
and Accounts, together with a report produced by
EY which detailed their findings both on areas of
key financial reporting matters and other areas of
audit focus.

• Concluded that the 2021 Annual Report and
Accounts presented a fair, balanced and
understandable assessment of the Group’s
position and prospects after considering reports
from both internal audit and the external auditor.
The Committee recommended the 2021 Annual
Report and Accounts to the Board for approval.
• Reviewed the draft viability statement to appear

in the 2021 Annual Report and Accounts,
together with the supporting assumptions and
financial forecasts.

• Received a paper on significant judgemental areas
prepared by management, including the controls,
and provided appropriate challenge.

• Reviewed a paper which analysed notable one-off
items, both those separately disclosed on the face
of the income statement or otherwise, that affected
profit during the year and provided challenge of
the treatment of these.

• Considered and challenged management

about the use of APMs and whether they were
appropriate or whether GAAP measures would be
more relevant.

• Considered a paper produced by management

setting out management’s assessment in relation to
potential risks associated with legacy building safety
improvements and work that will be performed and
whether appropriate provisions and disclosures were
included in the financial statements of the Group,
including the contingent liability note.

• Reviewed a paper produced by management setting

out which improvements suggested by the FRC
had been incorporated into the 2021 Annual Report
and Accounts, and the rationale for those that had
not been.

• Reviewed and approved the Slavery and Human

Trafficking Statement 2021.

• Reviewed a paper produced by management

setting out the main controls for preventing and
detecting fraud.

• Reviewed and challenged a Risk and Internal

Audit update.

• Considered whether the interaction between the

internal audit and risk function and external auditor
during the period had been appropriate.

• Reviewed and considered the effectiveness of the

internal audit function.

• Considered the findings of the performance

evaluation of the Committee.

• Held a private meeting with EY and the Group

Risk Director.

January 2022

The Committee:

• Received and challenged a risk management

update from the Group Risk Director and reviewed
the Risk Management Policy.

• Reviewed the Group’s policies and procedures
in relation to Whistleblowing, Anti-Bribery and
Corruption, Anti-Slavery and Data Protection.

• Received and challenged an update on internal
audit activities undertaken, reviewed the Internal
Audit Charter and provided feedback on the
proposed 2022 Internal Audit plan.

• 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.

• Assessed the performance of the external auditor,
including obtaining an explanation from EY in
relation to the firmwide annual Audit Quality
Inspection findings compared to their peers and
understanding the effect, if any, these had on the
Bellway audit.

• Held a private meeting with EY and the Group

Risk Director.

Bellway p.l.c. Annual Report and Accounts 2022

Meeting date

Activities

March 2022

The Committee:

• Considered a paper produced by management

setting out management’s assessment of significant
risk and profit items, including legacy building
safety improvements and incremental site
related COVID-19 costs, and whether appropriate
provisions, disclosures and narrative were included
in the Interim Announcement.

• Reviewed, discussed, and challenged a paper

produced by management setting out the rationale
for preparing the Interim Announcement on a
going concern basis. The paper incorporated
a sensitivity analysis based on the Group’s
internal forecasts.

• Reviewed the final draft of the 2022

Interim Announcement.

• Challenged EY’s audit plan, including the proposed
Group, subsidiary, and divisional materiality for the
2022 audit.

• Reviewed the Independent Auditor Policy.
• Reviewed and challenged a risk management and

internal audit update.

• Reviewed and approved the Group’s Corporate

Criminal Offence Policy.

• Reviewed compliance with the Group policies for

half year ended 31 January 2022.

• Reviewed the Group’s response to the Investment

Association priorities for 2022 annual reports.
• Held a private meeting with EY and the Group

Risk Director.

October 2022

The Committee:

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• Considered and challenged management about the
use of APMs and whether they were appropriate or
whether GAAP measures would be more relevant.
• Reviewed a paper setting out the TCFD disclosure
requirements and how they have been satisfied
by Bellway.

• Reviewed and approved the Slavery and Human

Trafficking Statement 2022.

• Reviewed a paper produced by management

setting out the main controls for preventing and
detecting fraud.

• Reviewed and challenged a risk management and

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.

• Considered the findings of the performance

evaluation of the Committee.

• Held a private meeting with EY and the Group

Risk Director.

• Reviewed the final draft of the 2022 Annual Report
and Accounts, together with a report produced by
EY which detailed their findings both on areas of
key financial reporting matters and other areas of
audit focus.

• Concluded that the 2022 Annual Report and
Accounts presented a fair, balanced and
understandable assessment of the Group’s
position and prospects after considering reports
from both internal audit and the external auditor.
The Committee recommended the 2022 Annual
Report and Accounts to the Board for approval.
• Reviewed the draft viability statement to appear

in the 2022 Annual Report and Accounts,
together with the supporting assumptions and
financial forecasts.

• Received a paper on significant judgemental areas
prepared by management, including the controls,
and provided appropriate challenge.

• Considered and challenged a paper produced by
management setting out the accounting approach
used for the legacy building safety provision
and related expense following the signing of the
Building Safety Pledge in April 2022. This consisted
of understanding the approach taken in identifying
apartment blocks dating back to April 1992 that
could fall within the scope of the Pledge, cost
estimates applied, inflation and discounting
assumptions along with ensuring the associated
disclosures are clear and understandable.
The Committee challenged managements’ cost
and inflation assumptions, including considering
a sensitivity paper, and believed managements
proposed assumptions to be appropriate.

Bellway p.l.c. Annual Report and Accounts 2022

Governance

Audit Committee Report continued

Integrity of financial reporting
Significant financial reporting matters

In carrying out its duties, the Committee is required to assess
whether suitable accounting policies have been adopted and
to challenge the robustness of significant financial matters that
affect the Annual Report and Accounts. This process includes
reviewing and challenging papers produced by management
and confirming whether the policies and judgements remain
appropriate for the Group.

The Committee consider the following to be the most
significant financial reporting matters based on their potential
effect on the Group’s financial statements:

• Revenue recognition;
• Cost of sales recognition;
• Carrying amount of land and work in progress;
• Going concern;
• Legacy building safety improvement provision; and

• Net legacy building safety expense disclosure.

The table below sets out the matters considered and the
action performed by the Committee during the year in
relation to these significant financial reporting matters of
the Group.

Key financial matters
Revenue recognition

Matter considered

Revenue of £3,536.8 million has been recognised
in the period. The majority of housing revenue
is recognised on a point in time basis either i)
when the completed dwelling is 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.

Action performed by the Committee

Conclusion

The Committee understood the Group’s revenue
recognition policy.

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 they had assessed the design effectiveness
of key controls surrounding revenue recognition,
summarised the output of data analytics
in identifying unusual trends and provided
an explanation of the detailed substantive
testing performed.

The Committee also reviewed a summary
prepared by EY explaining the findings from their
work testing 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

Matter considered

Cost of sales (before net legacy building safety
expense) of £2,749.8 million has been recognised
on housing and other revenue. 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.

The Committee understood the Group’s gross
profit recognition policy.

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 they had assessed the design effectiveness of
key controls surrounding gross profit recognition
and the valuation process, summarised the
output of data analytics in identifying unusual
trends and provided an explanation of the
detailed substantive testing performed.

The Committee also reviewed a summary
prepared by EY explaining the findings from their
work testing 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
profit recognition
policy is appropriate
and has been properly
applied in these
financial statements.

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Key financial matters
Carrying amount of land and work-in-progress

Action performed by the Committee

Conclusion

Matter considered

Land and work-in-progress are the most
significant assets on the Group’s balance sheet
and at 31 July 2022 had a book value of £4,311.2
million. The carrying value of land and work-
in-progress is affected by both the revenue
recognition and 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 forecast
negative whole site/phase margin have an
appropriate provision, and this has been
re-assessed at regular intervals during the year.

Going concern

Matter considered

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 balance sheet.

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.
Management provided a summary of the
work undertaken which was considered by
the Committee.

The external auditor explained to the Committee
the work they performed in relation to the
carrying value of the Group’s land and work-in-
progress. This included the procedures identified
in relation to profit recognition and a review of
the latest site/phase valuation for all sites/phases
active during the year and those that are yet to
commence production.

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.

The Committee reviewed a paper produced by
management 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 and
to determine whether the Group could continue
to meet its liabilities as they fall due.

Further details in relation to the Group’s going
concern and viability assessment can be found
on pages 77 and 78.

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.

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Legacy building safety improvement provision

Matter considered

Legacy building and safety improvement
provisions totalling £441.5 million were recognised
in the balance sheet as at 31 July 2022.

The Committee reviewed a paper setting out the
IAS 37 requirements for recognising a provision,
and how this applies following the signing of the
Building Safety Pledge in April 2022.

The paper set out the approach taken in
identifying apartment blocks dating back to April
1992 that could fall within the scope of the Pledge,
cost estimates applied, inflation and discounting
assumptions along with ensuring the associated
disclosures are clear and understandable.
The Committee challenged management’s cost
and inflation assumptions, and after considering
a sensitivity paper concluded management’s
proposed assumptions to be appropriate.

Following a review of
this paper and challenge
of management and
the external auditor, the
Committee concluded
that the legacy building
safety improvement
provision held in the
balance sheet and the
associated disclosures
are appropriate.

Bellway p.l.c. Annual Report and Accounts 2022

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Audit Committee Report continued

Key financial matters
Net legacy building safety expense disclosure

Action performed by the Committee

Conclusion

Matter considered

A net legacy building safety expense of
£346.2 million has been recognised in the year.
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.

Following enquiries
with management
and the external
auditor, the Committee
concluded that the
net legacy building
safety expense is
appropriately presented
and disclosed in the
financial statements.

The Committee reviewed and understood 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.

The Committee reviewed a paper produced by
management using the above framework, which
set out the treatment of whether the net legacy
building safety expense should be disclosed
separately. The Committee ensured consistent
principles were established and applied, and
that the external auditor agreed with the
conclusions reached prior to the approval of the
Interim Statements.

The Committee provided careful consideration
to the judgements made in the presentation
and disclosure of the net legacy building safety
expense, ensuring the Annual Report and
Accounts as a whole provides a balanced view,
including the presentation of GAAP measures
and APMs.

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.

A paper by management was considered by the Committee
which set out the resilience of the Group to the emerging
and principal risks and uncertainties to various adverse
sensitivities. The base case and scenarios incorporated
the anticipated costs arising from adopting the Future
Homes Standard. 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
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 is appropriate. This was then
recommended to the Board for approval.

Quality of narrative reporting
2022 Annual Report and Accounts: fair, balanced and
understandable

Group Risk and Audit provided a paper to the Committee
to assist them in concluding whether the 2022 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 2021
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:

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Fair

Balanced

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 entity, with both significant
positive and negative points disclosed.

The narrative section is both consistent
throughout and also with the financial
results and performance.

The key accounting judgements considered
by the Committee are appropriately
disclosed and are consistent with those
considered by EY.

Market conditions are clearly described,
and the emerging and principal risks and
uncertainties are both accurate and complete.

All material transactions and issues faced by
the Group are included within the financial
statements and disclosed where required.

Understandable

The Annual Report
and Accounts are clear
and understandable
and have consistent
messaging throughout.

There are clear links between
the strategy and KPIs.

The KPIs and APMs have
remained consistent and
there has been no change
in the methodology.

The Committee concluded that the 2022 Annual Report
and Accounts, when taken as a whole, are fair, balanced
and understandable.

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.

ESG and climate risk considerations

The key areas of control are as follows:

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 road map for climate risk disclosures relating to its
Annual Report and Accounts. This, along with regular updates
from EY since October 2021, has enabled the Committee
to review and assess the additional disclosures included
in the 2022 Annual Report and Accounts, when The Task
Force on Climate-related Financial Disclosures (‘TCFD’)
became mandatory.

Quality and effectiveness of internal controls
and risk management systems
The Committee is responsible for reviewing and assessing
the Group’s internal controls and risk management systems
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, their impact, and the effectiveness
of the control environment to mitigate the risks.

Risk is considered by the Board, with a full review of the risk
register taking place throughout the business 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
79 to 83, are regularly reviewed and cover all aspects of
Bellway’s operations including land acquisition, planning,
construction, health and safety, sales, HR, IT, and legal and
regulatory compliance.

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

• The Board has agreed a list of key risks which affect the
Group, that are reviewed throughout the year and has
considered the extent to which the measures taken by the
Group mitigate those risks.

• The acquisition of land and land interests is initiated by

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divisional management and reviewed by the appropriate
Regional Chair prior to submission to Head Office for
approval. All land acquisitions must achieve minimum
financial acquisition criteria and are subject to approval
by the executive directors and in certain circumstances,
approval by the Board.

• 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 by the Regional Chairmen and functional
heads at Head Office. Summaries are also provided to the
Executive Directors.

• Monthly divisional board meetings are held to review

divisional performance, which are attended by the Regional
Chairmen. The Executive Directors attend certain divisional
board meetings on a regular basis during the year, and this
is supplemented with Regional Chairman visits to divisions.
• 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 management team and
Head Office team.

• Regular visits to sites by in-house health and safety teams
and external consultants to monitor health and safety
standards and performance.

• A central treasury function operates at Head Office ensuring
the appropriate financing is obtained for the Group as a whole.

• 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 2022

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Audit Committee Report continued

Throughout the year, the Committee received reports from the Group Risk and Audit team on the following areas of focus:

Review

Focus and outcomes

Legal completions
(half-year and year-end)
2 reviews

Divisional compliance
13 reviews

Building safety
risk assessment
1 review

GDPR compliance
risk assessment
22 site visits

IT security
1 review

Journals
(half-year and year-end)
2 reviews

Modern slavery – subcontractors
1 review (plus 5 site visits)

Testing of legal completions is undertaken on a bi-annual basis to check that transactions
have been recorded and recognised in the correct period, with appropriate supporting
documentation. For FY22, this work provided positive assurance that the processes operate
effectively and prevent the occurrence of cut-off issues.

These reviews assess whether the design and operation of accounting and commercial
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.

This risk assessment offered a number of recommendations to further strengthen the
Group’s policies, training and audit arrangements over fire safety.

This risk assessment focused on the paper-based records held within sales offices and
site compounds, including the need to collate such information, and storage and disposal
processes. No material recommendations were raised.

This review assessed the Group’s cyber controls using methodology based on Center for
Internet Security best practices for securing systems and data. Recommendations were
made allowing the Group to further strengthen its robust IT infrastructure and security
controls.

Testing of journals is undertaken on a bi-annual basis to check the validity and accuracy of
a sample of transactions and confirm that appropriate journal reviews are being undertaken
by the trading divisions. For FY22, only administrative improvement opportunities were
identified.

This review included a risk assessment of the Group’s subcontractor population,
considering factors that may pose a greater threat of modern slavery, followed by an
audit of trades at five sites. The work provided positive assurance that the Group takes its
responsibilities surrounding modern slavery seriously and raised minor recommendations
which have further enhanced third-party onboarding and induction processes.

Where any control recommendations are made by the external auditors, these are considered, and where relevant are
implemented to further strengthen the control environment.

Internal audit

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.

Risk and internal audit
The Group has a risk and audit function which, in part,
performs internal audit reviews. The Group Risk Director has
a direct reporting line into both the Group Finance Director
and myself. During the year the Group risk and audit function
undertook a number of internal audit reviews, utilising
specialists from within relevant functions. 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.

Procedures relating to the prevention and
detection of fraud and bribery
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 General Counsel and Company Secretary, Deputy
Group Company Secretary 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 minor changes
to 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.

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The ratio of non-audit fees for the year to the external audit
fee was 0:1. 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.

Audit Committee evaluation and effectiveness
During the year the Committee assessed both the
performance of the Committee as a whole and that of
its individual members utilising a questionnaire that was
internally facilitated. No major areas of improvement
were identified.

Following a review of these results, I consider the Committee
to be effective and it provides a robust and independent
oversight over the financial reporting, narrative reporting,
internal control and risk management, fraud and bribery
prevention and detection, internal audit, and external audit
activities of the Group. The Committee has an appropriate
and complementary set of skills and experience that enables
it to deliver the aforementioned activities.

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Ian McHoul
Chair of the Audit Committee

17 October 2022

External audit
Audit performance and effectiveness

The external auditor of the Group is EY. Their 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
2020/21 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 Audit Quality

Inspection (‘AQI’) results that were published by the FRC
on 23 July 2021, following their inspection of audit firms
including EY. This included understanding whether any
of the fundings 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, Mark Morritt.

• Considering EY’s independence, objectivity, and

professional scepticism.

• Reviewing the performance of EY against their audit

strategy for the 2020/21 financial year, the most recent
completed audit cycle, and their interaction with the
Committee during the process.

• 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 re-appointed as auditor of the Group.

Auditor rotation

The Committee acknowledges the provisions contained in
the Code in respect of audit tendering. In conformance with
these requirements, Bellway will be required to tender the
external audit no later than for the 2030 financial year end.

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 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.

Bellway p.l.c. Annual Report and Accounts 2022

105

Governance

Remuneration Report

The Committee continues to operate a
remuneration structure… which it considers
closely aligns management interests with
those of stakeholders.

Jill Caseberry
Chair of the Remuneration Committee

Annual Statement
Dear Shareholder

I am pleased to present the Report of the Remuneration
Committee (the ‘Committee’). This report consists of this
Annual Statement and the Annual Report on Remuneration
for the 2021/22 financial year, which will be subject to a single
advisory shareholder vote at the forthcoming AGM.

Performance and reward in 2021/22

The Committee continues to operate a remuneration
structure based on the three core elements of basic salary,
annual cash bonus, subject to the deferral policy, and a share-
based long-term incentive plan, which it considers closely
aligns management interests with those of stakeholders.

The Group has delivered a positive set of results, consistent
with its growth strategy. The number of housing completions
rose by 10.5% to 11,198 (2021 – 10,138), underlying operating
profit rose to £653.2 million(2,3) (2021 – £531.5 million).
Underlying earnings per share increased by 19.9% to 420.8p(2,3)
per share (2021 – 350.9p) and underlying RoCE increased to
19.4%(2,3) (2021 – 16.9%).

To reflect a material increase in our Group Finance Director’s
responsibilities his salary was increased by 5% on 1 February
2022. Keith took on responsibility for delivering the Board
agreed sustainability and ESG strategy through our new Better
with Bellway sustainability strategy and we are very satisfied
that these responsibilities are being well managed.

Better with Bellway addresses the key sustainability risks
and opportunities unique to Bellway, ensuring that the
Group is aligned to national and international standards and
responding to the views of our stakeholders. It enables the
Board to set suitably ambitious goals and KPIs, set Science
Based Targets, increase our reporting transparency, further
improve the overall quality of disclosure, and continue to
build stakeholder trust.

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Bellway p.l.c. Annual Report and Accounts 2022

The Company has awarded the Executive Directors a bonus
payment of 118.32% of basic salary, however, the long-term
incentive plan awarded in November 2019 will not vest based
on performance over the three financial years to 31 July
2022. The Committee considers that the bonus outcome is
reflective of the strong performance of the Group and the
Executive Directors during the 12-month period to 31 July
2022. The Committee also recognises that the long-term
incentive plan (LTIP) not vesting is reflective of the challenging
regulatory environment over the period. The Committee
determined that there was no reason to exercise its powers
of discretion in relation to either the bonus or LTIP outcomes,
which were considered to be in line with individual
contribution and the overall Company performance during
the respective performance periods.

As we disclosed last year, whilst not a requirement of the
policy at the time, the Group Chief Executive voluntarily
agreed to invest all of the FY21 bonus he would receive
above 90% of salary (after paying tax and national insurance)
in Bellway shares which would be kept for a minimum of
three years.

During the year, the Committee approved the grant of PSP
Awards to the Executive Directors which will vest to the extent
TSR and EPS performance conditions are met over the period
to 31 July 2024, with any shares delivered being subject to a
further two-year holding period. Details of these awards are
set out on pages 112 and 113.

How we will implement the Remuneration Policy in 2022/23

At our AGM last year, shareholders approved the renewal
of our Directors’ Remuneration Policy. The Committee
consider the current policy to be operating effectively,
providing a balance between fixed pay and the short and
long-term incentives which provide a robust link between
pay and performance. The Committee has however been
reviewing how the Policy should operate for the year ahead
and is proposing to make the changes described below.
As disclosed in the 2021 Report, the Policy and its operation
are considered to be in line with the principles set out in
Provision 40 of the UK Corporate Governance Code 2018.

There will be a 4% increase to the Executive Directors’ salaries
in 2022/23 which is lower than the level of average increase
to the workforce in general, given the challenging inflationary
environment. As previously noted, the pension rates for the
Directors will be aligned with those of the workforce at the
end of 2022, at 10% of salary, with the workforce pension rates
having recently been increased to this level. All other benefits
remain unchanged.

We plan to retain the overall weighting of the profit, land bank
and ESG measures for the annual bonus. Within the ESG
measures we plan on marginally increasing the weighting
on achievement of 5-star(6) homebuilder. The small increase
will come from a reduction in the weighting on employee
engagement from 7.5% to 5%.

Health and safety performance will be taken into account
as part of the Committee’s overall assessment of the
bonus payment, which it does every year before making a
final determination.

Mandatory deferral of any bonus earned above 100% of salary
into Bellway shares for three years was introduced by the 2021
Remuneration Policy. This structure for deferral recognises
that the bonus opportunity for Executive Directors is below
the mid-market level for both housebuilding companies and
UK listed companies of similar size to Bellway. However, if an
Executive Director’s shareholding is below the target of 200%
of salary, then they are encouraged to build that holding
through share purchases as well as retaining shares they earn
through our incentive plans. Our policy also normally requires
this level of shareholding to be retained for two full years after
leaving Bellway for whatever reason.

The Committee believes that the manner in which it sets
and operates this policy is clear to executives and is aligned
to our corporate culture. We operate it with regard to risks
inherent in the business and marketplace, providing the
opportunity for executives to earn rewards in a manner which
is proportionate to the value delivered against clear targets.

The Committee has been reviewing both the performance
measures and opportunity under the long-term incentive
plan, to ensure they are aligned to our future strategy and
provide appropriate levels of opportunity respectively.

Having operated with only relative TSR for a number of years,
we introduced underlying EPS as a performance measure this
financial year and advised shareholders that we would plan
to also introduce a three-year environmental target for carbon
reduction in our supply chain. Having looked at the other
possible measures and listened to shareholder feedback we
feel that it would be appropriate to also include return on
capital employed (RoCE) to increase the focus on the efficient
use of capital over the longer-term.

Environmental

We are working on reducing the carbon generated within the
business and have identified that 99% of our carbon footprint
is within the supply chain for housebuilding. Actions required
to reduce this will take a number of years and go out beyond
the end of the next three-year LTIP performance cycle. We do
not feel this is therefore the most suitable measure this year.
In the interim, we propose to use two measures which directly
have an important impact on the environmental sustainability
of the business. The Committee feels these measures are
more suitable for the longer-term than the annual incentive
as their achievement requires actions to be planned and
achieved over multiple years.

• Scope 1 and 2 emissions - We have set our goal for 2030 of
reducing these by 46% from the 2019 level of 25,715 tonnes.
As this target has an eight-year delivery period we propose
to set a threshold target that equals 3/8th of the 46%
reduction (17.3% reduction by 2025). This creates a straight
line between now and 2030 for the achievement of our
goal. A stretch target of a 25% reduction will also be set to
incentivise earlier delivery of the total 46% reduction.

• Waste reduction - We have set our goal for reducing waste
in each housing unit built by 20% by 2025 from a starting
point of 8.90 tonnes (measured in July 2021). We propose
to set a threshold to stretch range of reducing by 17.5% to
22.5% (1.56 to 2.0 tonnes) per housing unit in FY25.

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RoCE

Efficient use of capital is important for Bellway to maintain
a balanced focus on both profitability and land bank
investment. This has not been a feature of incentives at
Bellway, but we now feel that it should be. The Committee
plans to set a target range of 14% to 19% for FY25 and disclose
a reconciliation for the definition of adjusted RoCE in our
annual report. Adjusted RoCE for the current financial year on
a consistent basis of calculation is 16.4%.

Increase in opportunity

When we introduced the higher LTIP limit of 200% of salary
in the Policy last year, we undertook to consult with leading
shareholders before implementing any increase. Our intention
is now to make that increase for the Chief Executive and
Group Finance Director, having consulted with shareholders
on the proposals and who were generally supportive of the
changes. We have been aware for a number of years that
total incentive opportunity at Bellway has lagged behind
the housebuilding and UK listed market generally. We last
increased the annual grant level from 130% to 150% of
salary in 2017/18, and whilst the Committee does not adjust
remuneration packages at Board level to slavishly follow the
market, we feel now that the gap in incentive opportunity is
unhealthy. We believe that the targets that we have set are
more challenging to achieve than those set in recent prior
years. We will also assess whether a scale back in the normal
grant level is appropriate based on the share price at the
time of grant, compared to recent years’ prices, or whether to
impose a windfall gain test after the grant instead.

The Committee engaged with shareholders and employees
with regards to executive remuneration during the year.
We engaged with the largest shareholders and advisory
bodies with respect to the changes to the implementation
of the Policy including with respect to (i) the change to the
metrics and weightings under the bonus and LTIP; (ii) the
salary increase for the Group Finance Director and (iii) the
increase in LTIP opportunity for both Executive Directors.
Shareholders were overall supportive of the changes.

The Committee also engaged with employees through
Employee Listening Groups where the governance of
executive remuneration at Bellway was explained along with
how the arrangements align with the workforce pay policies.
Employee feedback was, in particular, positive in respect of
the introduction of ESG metrics into the LTIP.

Concluding remarks

The Committee continues to monitor changes in best
practice and corporate governance to ensure the policy,
how it is operated, and our disclosures remain appropriate.
We are grateful for the support from our shareholders at
the 2021 AGM with c.97% support for the Policy and c.98%
support for the Annual Report on Remuneration and we hope
you are supportive of the approach we have taken during
these unprecedented times and will support the resolutions
approving this report at the 2022 AGM.

Jill Caseberry
Chair of the Remuneration Committee

17 October 2022

Bellway p.l.c. Annual Report and Accounts 2022

107

Governance

Remuneration Report continued

Remuneration at a glance
How remuneration links to our strategy (see pages 14 and 15 for details of our performance).

Strategic objective

Link to remuneration

Metric

Performance against metric

Earnings growth and
driving down costs

Volume growth and focus
on RoCE

Annual bonus and future long-
term incentive plan awards

Annual bonus

Customer First

Annual bonus

Customer First

Annual bonus

Employee Engagement

Annual bonus

Customer First and responsible
employer/developer

Value creation through capital
and dividend growth

Underpin to annual bonus

Long-term incentive plan

How our Executive Directors were paid during 2021/22

Underlying operating profit

Achieved

Sufficient land bank of plots
with DPP
Retain 5-star6 homebuilder
status

Overall customer satisfaction
score

Results of Employee
Engagement Survey

Overall health and safety
performance

Relative TSR against two
comparator groups

Achieved

Partly Achieved

Achieved

Not achieved

Chief
Executive

Finance
Director

52%

48%

£1,738

52%

48%

£1,044

£500

£1,000

£000

£1,500

£2,000

Fixed pay total

Other items

Annual bonus

Long-term share awards

Impact of share price fall on LTIP

Bonus outcomes – see page 110

The 2021/22 bonus was based on financial and strategic targets.

Strategic objective

Weighting
(% of salary)

Threshold
(25% pays out)

Maximum value
(100% pays out)

Actual(a)

Payment
(% of maximum)

Payment
(% of salary)

Operating profit (underlying)

80.0%

£555.0
million

£600.0
million

£662.5
million

100%

80.0%

Strategic objectives and performance against target

Land bank

Customer
First

The land bank of plots with DPP (available for completion in the following
financial year) exceeded the maximum target and an award of 20% of
salary was achieved.
We retained our 5-star6 homebuilder status.

The Group’s 9-month customer satisfaction score in 2022 was 82.1%
compared with the base of 79.4%.

Threshold
(25% pays out)

Achieved in full – 20% of salary
awarded.

Achieved in full – 5% of salary
awarded.

Achieved – 5% of salary awarded.

The Group’s overall customer satisfaction score in 2022 was 86.9%
compared with the base of 86.8%.

Partly achieved – 0.82% of salary
awarded.

The Group’s employee engagement score, relating to Customer First, in
2022 was 96.0% compared with the base of 94.0%.

Achieved – 2.5% of salary awarded.

Employee
Engagement

The Group’s employee engagement score in 2022 was 96% compared
with the base of 87%.

Achieved – 5% of salary awarded.

Note:
a. For underlying operating profit and land bank bonus purposes, targets and outcomes include our share of joint ventures.
b. Underlying profit excludes exceptional items of income and expenditure, for example costs and recoveries associated with legacy building safety expense. This removes any incentive to

delay or reduce spending on life-critical fire safety remedial works.

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Bellway p.l.c. Annual Report and Accounts 2022

LTIP outcomes – see page 111

The PSP awards granted in 2019/20 were based on a three-year TSR performance for the period to 31 July 2022.

Metric

Performance condition

Threshold target

Stretch target

Actual % Vesting

50% of
awards

Relative TSR against an index of peer
housebuilders

50% of
awards

Relative TSR against the FTSE 250
(excluding financial services companies
and investment trusts)

Total

Annual Report on Remuneration
Committee membership and activity

-5.2% TSR
(median)

17.3% TSR
(median +22.5%)

-11.6%
Bellway TSR

Rank 71 (median)

Rank 36
(upper quartile)

Rank 83
Bellway

The Committee met seven times during the year and details of the Committee members and their attendance are set out in the
table below.

Membership and meeting attendance

Director

Date appointed to the Committee

Number of meetings
attended during the year

Jill Caseberry (Chair)

1 October 2017 (appointed as Committee Chair on 13 December 2017)

John Tutte

Paul Hampden Smith

Denise Jagger

Ian McHoul

Sarah Whitney

1 March 2022

1 August 2013
(resigned on 31 March 2022)

1 August 2013

1 February 2018

1 September 2022

The operation of the Committee is conducted by reference to its terms of reference which have been prepared to
comply with relevant statutory, regulatory and corporate governance requirements and best practice and are available at
www.bellwayplc.co.uk/investor-centre/governance/committees.

7/7

3/3

5/5

7/7

0/0

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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 do 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 committees during the year was £40,963 (2021 – £68,616) which was charged on a time and material basis.
The Committee also benefited from advice received from the Group General Counsel and Company Secretary on issues other
than those relating to his own remuneration.

The remuneration of the Non-Executive Directors (apart from the Chairman) is determined by the Board Committee on Non-
Executive Directors’ Remuneration, which comprises the Executive Directors. It also receives advice from the Group General
Counsel and Company Secretary, and Korn Ferry.

Main focus in 2021/22
• Approved the long-term incentive awards vesting levels for the 2021/22 financial year.
• Approved the 2020/21 Remuneration Report.
• Approved the 2020/21 financial year bonus payments for the Executive Directors and the Group General Counsel and

Company Secretary.

• Set the bonus targets for the 2021/22 year.
• Engaged with employees on executive remuneration through the Employee Listening Groups.
• Made awards under the long-term incentive scheme.
• Reviewed and determined the remuneration packages for the Executive Directors and the Group General Counsel and

Company Secretary, and the first tier of management below Board level.

• Reviewed remuneration policies for senior management below Board level and the wider workforce.

Bellway p.l.c. Annual Report and Accounts 2022

109

Governance

Remuneration Report continued

Focus areas for 2022/23
• Approve the long-term incentive awards vesting levels for the 2021/22 year for the Executive Directors and the Group General

Counsel and Company Secretary.

• Approve the 2021/22 Remuneration Report.
• Set the bonus targets for the 2022/23 year.
• Approve the 2021/22 financial year bonus payments for the Executive Directors and the Group General Counsel and

Company Secretary.

• Engage with employees on executive remuneration through the Employee Listening Groups.
• Make awards under the long-term incentive scheme.
• Review and determine the remuneration packages for the Executive Directors and the Group General Counsel and Company

Secretary, and the first tier of management below Board level.

• Review remuneration policies for senior management below Board level and the wider workforce.

Implementation of Remuneration Policy in 2021/22
The auditor is required to report on the information contained in the following part of this report, as noted on the relevant
sections.

Salary and fees for the year ended 31 July 2022
For 2021/22, Jason Honeyman received a salary of £711,048 and Keith Adey received a salary of £423,572.

Annual bonus for the year ended 31 July 2022
The annual bonus is payable in November 2022 for performance during the year ended 31 July 2022. The performance targets
for the 2021/22 bonus comprised of underlying operating profit and three strategic targets. Any bonus earned above 100% of
salary will be deferred into shares which cannot be sold for three years.

The actual bonus payment against underlying operating profit was determined on the following basis:

Strategic objective

Weighting
(% of salary)

Threshold
(25% pays out)

Maximum value
(100% pays out)

Actual(a)

Payment
(% of maximum)

Payment
(% of salary)

Operating profit (underlying)

80.0%

£555.0
million

£600.0
million

£662.5
million

100%

80.0%

Underlying operating profit including our share of joint ventures grew by 22.3% to £662.5 million which is above the
maximum threshold.

The basis for payment of the actual bonus against the three strategic measures is set out below:

Strategic pillar

Objectives and performance against target

Land bank

Level of land bank plots with detailed planning permission (‘DPP’) (available for
completion in the following financial year) to ensure our growth aspirations are not
frustrated by land shortages in future years. A threshold payment of 5% of salary
would be triggered for a threshold number of plots with DPP, with an additional 1%
payment for further improved performance, up to a maximum of 20% of salary. The
land bank targets are commercially sensitive and will be disclosed one year in arrears.
(b)

Opportunity and score

Maximum –
20% of salary

The land bank of plots with DPP (available for completion in the following financial
year) exceeded the maximum target and an award of 20% of salary was achieved.

Achieved in full –
20% of salary awarded.

Customer
First

Retention of 5-star6 homebuilder status (as measured by the HBF).

We retained our 5-star6 homebuilder status.

9-month customer satisfaction score (as measured by NHBC): A threshold payment
of 1.25% of salary would be triggered for a threshold score of 79.4%, with an additional
bonus opportunity on a straight-line basis for further improvement in the score, up to
a maximum of 5% of salary for a score of at least 81.0%.

Maximum –
5% of salary

Achieved in full –
5% of salary awarded.

Maximum –
5% of salary

The Group’s customer satisfaction score in 2022 was 82.1% compared with the base
of 79.4%.

Achieved in full –
5% of salary awarded.

Overall customer satisfaction score (as measured by NHBC): A threshold payment of
0.63% of salary would be triggered for a threshold score of 86.8%, with an additional
bonus opportunity on a straight-line basis for further improvement in the score, up to
a maximum of 2.5% of salary for a score of at least 87.8%.

Maximum –
2.5% of salary

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Bellway p.l.c. Annual Report and Accounts 2022

Strategic pillar

Objectives and performance against target

The Group’s customer satisfaction score in 2022 was 86.9% compared with the base
of 86.8%.

Employee
Engagement

The Group’s employee engagement score relating to Customer First: A threshold
payment of 0.63% of salary would be triggered for a threshold score of 94.0% with an
additional bonus opportunity on a straight-line basis for further improvement in the
score up to a maximum of 2.5% of salary for a score of at least 95.5%.

Opportunity and score

Partially achieved
– 0.82% of salary
awarded.

Maximum – 2.5% of
salary

The Group’s employee engagement score relating to Customer First in 2022
was 96.0% compared with the base of 94.0%.

Employee engagement scores (as measured by the June 2022 employee survey):
A threshold payment of 1.25% of salary would be triggered for a threshold score
of 87.0%, with an additional bonus opportunity on a straight-line basis for further
improvement in score, up to a maximum of 5% of salary for a scores of at least 89.5%.

Achieved in full – 2.5%
of salary awarded

Maximum – 5% of salary

The Group’s employee engagement score in 2022 was 96.0% compared with the
base of target 87.0%.

Maximum – 5% of salary

Notes:
a. For underlying operating profit and land bank bonus purposes, targets and outcomes includes our share of joint ventures.
b. The 2020/21 base target was set at 10,000 plots with a maximum target of 10,500 plots. The actual performance achieved was 11,715 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 over the year.

Long-term incentives vesting in respect of performance period ended 31 July 2022
The PSP awards granted in 2019/20 were based on a three-year TSR performance for the period to 31 July 2022. In line with the
2021 Remuneration Policy, any bonus earned above 100% of salary will be deferred into shares which cannot be sold for three
years. The applicable vesting percentages will be as follows:

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Metric

Performance condition

Threshold target

Stretch target

Actual % Vesting

Relative TSR against an index of peer
housebuilders comprising Barratt Developments
PLC, The Berkeley Group plc, Crest Nicholson
Holdings plc, Persimmon plc, Redrow plc, Taylor
Wimpey plc and Vistry Group plc (‘Index’): 25%
of this part of an award vests at the median,
increasing pro-rata, to full vesting at median
+22.5% (+7.5% p.a.).

Relative TSR against the FTSE 250 (excluding
financial services companies and investment
trusts): 25% of this part of an award vests at
median, increasing pro-rata, to full vesting at the
upper quartile.

50% of
awards

Total

-5.2% TSR
(median)

17.3% TSR
(median +22.5%)

-11.6%
Bellway TSR

Rank 71
(median)

Rank 36
(upper quartile)

Rank 83
Bellway

Regardless of TSR performance, 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.

As the TSR performance thresholds have not been met, the Committee agreed there were no circumstances that warranted the
exercise of discretion. As a result, no awards will vest in November 2022.

Bellway p.l.c. Annual Report and Accounts 2022

111

Governance

Remuneration Report continued

Single figure of total remuneration (audited)

Salary and
fees (a)
£

Taxable
benefits(b)
£

Pension(c)
£

Annual
bonus
£

Sub-total
£

Long-term
incentives(d)
£

Other
items(e)
£

Total

Total fixed
remuneration
£

Total variable
remuneration
£

Non-executive Chairman

John Tutte

2022 108,333

Paul Hampden
Smith

2021

–

2022 152,282

2021

221,340

Executive directors

–

108,333

–

152,282

221,340

Jason Honeyman 2022

711,048 43,797 142,210

841,312 1,738,367

–

108,333

–

152,282

221,340

–

– 1,738,367

897,055

841,312

2021 689,000 49,293 137,800

822,804 1,698,897

294,780 4,495

1,998,172

876,093

1,122,079

Keith Adey

2022 423,572 34,410 84,714

501,170 1,043,866

–

– 1,043,866

542,696

501,170

2021

400,427

33,311 80,085

478,190

992,013

218,317

Non-executive directors

Denise Jagger

Jill Caseberry

Ian McHoul

2022

2021

2022

2021

2022

2021

71,776

69,550

71,776

69,550

71,776

69,550

–

71,776

69,550

71,776

69,550

71,776

69,550

Total

2022 1,610,563 78,207 226,924 1,342,482 3,258,176

–

1,210,330

513,823

696,507

71,776

69,550

71,776

69,550

71,776

69,550

71,776

69,550

71,776

69,550

71,776

69,550

–

– 3,258,176

1,915,694 1,342,482

2021

1,519,417 82,604 217,885 1,300,994 3,120,900

513,097 4,495 3,638,492

1,819,906

1,818,586

Notes:
a. Paul Hampden-Smith retired as Chairman on 1 April 2022, John Tutte was appointed to the Board on 1 March 2022 and took over as Chairman upon Paul’s retirement. Their fees reflect their

service during the financial year.

b. Taxable benefits include car allowance and health insurance and £9,387 for Jason Honeyman which relates to hotel and travel costs.
c. Pension includes both payments in lieu of pension of £221,591 and contributions to a defined contribution scheme of £5,333. None of the directors are members of the Group’s defined

benefit scheme and only Keith Adey was a member of the defined contribution scheme for part of the year.

d. The value of long-term incentives in 2022 is nil as the threshold performance targets for the 2019 PSP awards were not met and as a result the awards lapsed in full. The 2021 figures for Jason

Honeyman and Keith Adey 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.

e. Other items refer to the discount on the awards, during the year stated, under the Group’s all-employee savings-related share option scheme.

Directors’ share-based rewards and options (audited)
Details of all directors’ interests in the Company share-based reward schemes are shown.

Jason Honeyman

Scheme

PSP(a)
PSP(b)
PSP(c)
2013 SRSOS(f)
PSP(d)
Totals

Awards/
options held at
1 August 2021

Granted/
awarded during
the year

Exercised
during the year

Lapsed during
the year

Awards/
options held at
31 July 2022

Exercise price/
market price
at date of
award (p)

Date of grant/
award

Exercisable/
capable of
vesting from

28,909

30,667

39,005

771

–

99,352

–

33,216

(9,264)

(19,645)

–

30,667

39,005

2,750.0

3,370.0

22.10.2018

22.10.2021

16.10.2019

16.10.2022

2,317.0

27.10.2020

27.10.2023

771

2,333.0

04.12.2020

01.02.2024

33,216

3,211.0

26.10.2021

26.10.2024

(9,264)

(19,645)

103,659

112

Bellway p.l.c. Annual Report and Accounts 2022

Keith Adey

Scheme

PSP(a)
PSP(b)
2013 SRSOS(f)
2013 SRSOS(f)
PSP(c)
PSP(d)
Totals

Awards/
options held at
1 August 2021

Granted/
awarded during
the year

Exercised
during the year

Lapsed during
the year

Awards/
options held at
31 July 2022

Exercise price/
market price
at date of
award (p)

Date of grant/
award

Exercisable/
capable of
vesting from

21,413

17,823

621

356

22,668

–

62,881

–

19,304

(6,862)

(14,551)

–

(6,862)

(14,551)

–

17,823

621

356

22,668

19,304

60,772

2,750.0

3,370.0

2,414.4

2,528.0

2,317.0

3,211.0

22.10.2018

22.10.2021

16.10.2019

16.10.2022

03.12.2018

01.02.2024

03.12.2019

01.02.2023

27.10.2020

27.10.2023

26.10.2021

26.10.2024

Notes:
a. The performance period was 1 August 2018 – 31 July 2021. The TSR performance condition was in two parts. Half was measured by reference to the median of a group of UK housebuilders
comprising Barratt Developments PLC, The Berkeley Group plc, Crest Nicholson Holdings plc, Persimmon plc, Redrow plc, Taylor Wimpey plc and Vistry Group (‘Housebuilders’ Index’).
If Bellway’s TSR matched that of the median of the companies in that group, 25% of the awards would vest. Full vesting would be achieved for at least a 7.5% per annum outperformance of
the median (22.5% in total). The other half was measured by reference to the companies in the FTSE 250 Index (excluding financial services companies and investment trusts). Awards would
start to vest at 25% if Bellway’s TSR matches the median of the companies in the group, increasing on a straight-line basis so that full vesting would be achieved if Bellway’s TSR reached the
upper quartile. Regardless of TSR performance, no part of an award will vest unless the Committee is satisfied that there has been an improvement in the underlying financial performance
of the Company over the performance period. The first part of the performance condition was vested at 0% and the second at 57.4%, so 28.72% of these awards vested. Dividend equivalent
shares were also delivered to the participants in respect of the shares vesting (J Honeyman: 963 shares / K Adey: 713 shares).

b. The performance period for the awards granted in October 2019 finished on 31 July 2022. Details of the vesting of these awards which will take place after this Report is published are set out

in full under the heading ‘Long-term incentives vesting in respect of performance period ended 31 July 2022’ above.

c. The performance period is 1 August 2020 – 31 July 2023. The awards are subject to the same TSR performance condition set out in note a above, and these awards are also subject to

clawback provisions.

d. On 26 October 2021, awards of performance shares under the PSP were made to Jason Honeyman and Keith Adey, equal to 150% of their respective salaries at the date of grant. The face
values on grant of these awards were therefore £1,066,566 and £619,851 respectively. The performance period is 1 August 2021 – 31 July 2024. The performance condition was in three
equal parts. The first part is measured by reference to the median of a group of UK housebuilders comprising Housebuilders’ group (33% weighting) comprising Barratt Developments,
The Berkeley Group, Crest Nicholson Holdings, Persimmon, Redrow, Taylor Wimpey and Vistry Group (‘Housebuilders’ Index’). If Bellway’s TSR matches that of the median of the companies
in that group, 25% of the awards would vest. Full vesting would be achieved for at least a 7.5% per annum outperformance of the median (22.5% in total). The second part is measured by
reference to the companies in the FTSE 350 Index (excluding financial services companies and investment trusts). Awards would start to vest at 25% if Bellway’s TSR matches the median of
the companies in the group, increasing on a straight-line basis so that full vesting would be achieved if Bellway’s TSR reaches the upper quartile. The third part is measured by reference to
EPS. Awards would start to vest at 25% if Bellway’s EPS reaches a threshold of 383.5p, increasing on a straight-line basis so that full vesting would be achieved if Bellway’s EPS reaches 435.9p.
Regardless of TSR performance, 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. These awards are also subject to clawback provisions.

G
o
v
e
r
n
a
n
c
e

e. All of the above awards set out in notes a-d were granted for nil consideration.
f. Further details of the 2013 SRSOS are shown in the summary of outstanding share options in note 23 to the accounts.
g. The value of long-term incentive plan awards for the executive directors which were exercised in the year and those which will become exercisable in 2022/23 are shown in the single

figure of total remuneration table on page 112.

h. The market price of the ordinary shares at 31 July 2022 was 2,446p and the closing range during the year was 2,070p to 3,526p.

Payments to past directors (audited)
No past director received any payments from the Company during the year.

Payments for loss of office (audited)
No payments have been made in respect of loss of office during the 2021/22 financial year.

Statement of directors’ shareholdings and share interests (audited)
The directors’ interests (including family interests) in the ordinary share capital of the Company as at 31 July 2022 are set
out below:

Scheme

Jason Honeyman

Keith Adey

John Tutte

Denise Jagger

Jill Caseberry

Ian McHoul

Beneficially
owned at
31 July 2022(c)

% basic
salary held
by executive
directors in
shares(a)(b)

Shareholding
target of 200% of
basic salary met?

Beneficially
owned at
31 July 2021

Outstanding
and unvested
PSP awards

Outstanding
and unvested
share options

Share options
exercised in
the year

34,777

78,188

20,000

2,462

470

2,000

141

532

N/A

In progress

Yes

N/A

26,503

74,558

–

2,462

470

–

102,888

59,795

N/A

771

977

N/A

9,264

6,862

N/A

Notes:
a. Executive Directors are 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 PSP, after allowance for paying tax, until the requisite number
of shares has been accumulated. Jason Honeyman joined the Board in September 2017 so has not yet had sufficient time to build the target shareholding from vesting share awards.
Jason agreed to invest all bonus he received in FY22 above 90% of salary (after paying tax and national insurance) in Bellway shares.

b. The % shareholding is based on salaries as at 31 July 2022 using the average share price for the year.
c. Includes shares owned by partner.
d. There has been no change in any of the above interests between 31 July 2022 and the date of this report.

Bellway p.l.c. Annual Report and Accounts 2022

113

Governance

Remuneration Report continued

The following section of this report is not required to be audited.

Implementation of Remuneration Policy in 2022/23
This section sets out how the Company will implement the Remuneration Policy for the 2022/23 financial year. Full details
of how each element will operate are set out in the Remuneration Policy table later in this report.

The Committee has taken into account the remuneration and related policies for the rest of the workforce generally
and engaged with the workforce through the Employee Listening Groups when setting the 2022/23 targets for the
Executive Directors.

Basic salaries
The Committee has awarded Jason Honeyman and Keith Adey salary increases of 4.0% which are below the level of the
average for 2022/23. Therefore, from 1 August 2022, Jason’s salary was increased to £739,490 p.a., and Keith’s salary was
increased to £451,259 p.a.

Annual bonus
For the 2022/23 financial year, the bonus opportunity will continue to be limited to 120% of basic salary. The performance
conditions relate to a stretching target of underlying operating profit, including Bellway’s share of joint ventures (with a
maximum payment of 80% of basic salary achievable) and the following strategic performance measures which provide
a maximum bonus opportunity of 40% of basic salary.

Strategic
measure

Land bank

Objectives

Increase in the land bank of plots with DPP (available for completion in the following
financial year) in the year to 31 July 2022 to ensure our growth aspirations are not
frustrated by land shortages in future years.

Sustainability
Customer
First

This will be in four parts:
• 7.5% of salary for retaining 5-star6 homebuilder status (as measured by the HBF).
• 7.5% of salary linked to 9-month post completion customer satisfaction score (as

measured by the HBF).

The nine-month customer satisfaction score element is assessed based on the question
‘would you recommend Bellway to a friend?’. This measure is used as it reflects a metric
by which the performance of each division is managed by the Executive Directors.

Targets relating to the annual employee engagement survey.

Sustainability
Employee
Engagement

Score

Maximum –
20% of salary

Maximum –
15% of salary

Maximum –
5% of salary

In the event that the threshold profit criterion is not met, no bonus will be payable under the strategic targets. Health and safety
performance will be taken into account as part of the Committee’s overall assessment of the bonus payment.

The Committee would have discretion if, for example, health and safety standards have been unsatisfactory, or there has been
a major safety failure, to reduce the overall bonus payment and could, in exceptional cases, reduce the overall bonus payment
to nil. Maintaining a strong health and safety record remains a critical objective and this bonus structure allows for health and
safety to have a greater influence on annual bonus outcomes.

In line with the 2021 Remuneration Policy, any bonus earned above 100% of salary is required to be deferred into shares which
cannot be sold for three years.

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.

114

Bellway p.l.c. Annual Report and Accounts 2022

Long-term incentives
In line with the rationale set out in the Statement from the Committee Chair, the Company anticipates making a grant under
the PSP in October 2022 with a face value equivalent 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.

The performance conditions for the 2022/23 Awards will be based on (i) underlying EPS2,3, (ii) TSR versus a group of peer
housebuilders, (iii) TSR versus the FTSE 350 constituents and, for the first time, (iv) Adjusted RoCE and (v) ESG, with a 20%
weighting on each metric.

The targets for Adjusted EPS and adjusted RoCE measure performance in 2024/25. In setting the targets the Committee
considered analysts consensus figures, internal forecasts and the impacts expected from the new Residential Property
Developer Tax (RPDT) from April 2022 and the end of Help-to-Buy.

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.

Metric

Performance condition (25% to 100% straight line vesting)

20% of
opportunity

10% of
opportunity

Underlying EPS in 2024/25. (Calculated using underlying profit and the current
tax rates.)

Relative TSR against a group of peer housebuilders comprising Barratt
Developments PLC, The Berkeley Group plc, Crest Nicholson Holdings plc,
Persimmon plc, Redrow plc, Taylor Wimpey plc and Vistry Group PLC.

Relative TSR against the FTSE 350. (Excluding financial services companies
and investment trusts.)

Underlying Return on Adjusted Capital Employed. (Adding back land creditors
and legacy building safety provisions to Capital Employed.)

Reduction in scope 1 and 2 emissions. 25% of this part of an award vests at
a reduction in tonnes by 17.3%, increasing pro-rata, to full vesting at a reduction
in tonnes by 25% measured by emissions for 2024/25.

Reduction in waste per completed unit. 25% of this part of an award vests at
a reduction in tonnes by 17.5%, increasing pro-rata, to full vesting at a reduction
in tonnes by 22.5% for 2024/25 compared to 2021/22.

Chairman and Non-Executive Director fees from 1 August 2022

Threshold target

Stretch target

409.7p

463.8p

Median

Median
+7.5% p.a.

Median

14%

Upper
Quartile

19%

4,436 tonnes
reduction

6,429 tonnes
reduction

1.56 tonnes
reduction

2.01 tonnes
reduction

G
o
v
e
r
n
a
n
c
e

Director

Non-Executive Chairman fee

Non-Executive Director fee

Senior Independent Non-Executive Director,

Audit and Remuneration Committee Chair fees

Fee from
1 August 2021
£

%
increase

Fee from
1 August 2022
£

228,423

60,063

11,713

13.82%

4.06%

0.32%

15.26%

260,000

62,500

11,750

13,500

The Company’s Articles of Association specify an annual limit on Non-Executive Director fees of £500,000. This excludes the
fees for the Chairman and additional fees payable to the Senior Independent Non-Executive Director and to Committee Chairs.
Shareholder approval is required to amend this limit. A benchmarking exercise was performed during the year to align fees to
the wider FTSE 250.

Bellway p.l.c. Annual Report and Accounts 2022

115

Governance

Remuneration Report continued

Performance graph and table
The graph below 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 2022, of £100 invested in Bellway on 31 July 2012 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.

Total shareholder return

700

600

500

400

300

200

100

)

d
e
s
a
b
e
r
(

£
n
r
u
e
r

r
e
d
o
h
e
r
a
h
s

a
t
o
T

31 July
2012

387

324

177

312

291

176

463
463

453

440

206

223

473
472

212

417

415

180

211

176

140

224

197

150

628

553

257

474

431

228

31 July
2013

31 July
2014

31 July
2015

31 July
2016

31 July
2017

31 July
2018

31 July
2019

31 July
2020

31 July
2021

31 July
2022

Source: Datastream (Refinitiv Datastream)

Bellway

Housebuilder’s Index

FTSE 250 Index

Group Chief Executive total remuneration
The table below sets out the total remuneration for the Group 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).

Total remuneration
(£000)

Annual bonus paid
(as % of maximum)

PSP vesting (as a %
of maximum)

2013

1,243(a)

2014

1,450

2015

1,960

2016

2,785

2017

3,468

2018(c)

1,737

2019(d)

1,220

2020

1,110

2021

1,998(b)

2022

1,738

100.0%

91.6%

88.8%

95.8%

93.8%

0.0%

76.7%

0.0%

99.5%

98.6%

0.0%

50.0%

100.0%

99.8%

30.6%

47.7%

28.7%

Notes:
a. John Watson held the role of Group Chief Executive up until 31 January 2013 and Ted Ayres was Group Chief Executive for the remainder of the financial year from 1 February 2013 to 31 July

2013. The total remuneration for the period as Group Chief Executive was £714,053 for John Watson and £528,500 for Ted Ayres.

b. Restated as per footnote d to the table on page 112.
c. 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.
d. Jason Honeyman was appointed as Group Chief Executive on 1 August 2018.

116

Bellway p.l.c. Annual Report and Accounts 2022

Percentage change in remuneration of directors compared to workforce
The table below shows the annual percentage change in base salary, benefits and bonus between FY19 and FY22 in respect
of the Directors of the Company and the average for all other employees. Over time, the percentage change over five years will
eventually be disclosed.

All other employees(b)
J Honeyman
(Group Chief Executive)(c)
K Adey
(Group Finance Director)
J Tutte (Chair)(d)
P Hampden Smith
(Chair)(e)
D Jagger (INED)

J Caseberry (INED)

I McHoul (INED)

% Change in
salary/ fees
FY21–FY22(a)

% Change
in benefits
FY21–FY22

% Change
in bonus
FY21–FY22

% Change in
salary/ fees
FY20–FY21

% Change
in benefits
FY20–FY21

% Change
in bonus
FY20–FY21

% Change in
salary/ fees
FY19–FY20

% Change
in benefits
FY19–FY20

% Change
in bonus
FY19–FY20

+6.0

+3.2

+8.4

-11.2

+83.2

+2.6

+1.6

+3.4

+8.3

+9.8

-79.9

+100

+2.6

+25.6

+8.7

+38.5

+17.8

-100

+5.6

+3.3

+100

-31.2

+3.2

n/a

+3.4

+0.3

+100

-1.4

+2.4

-100

n/a

+3.4

n/a

+31.4

+2.3

-1.4

+4.4

n/a

Notes:
a. The comparative figures used for the Board are the actual salary and fees paid as per the Single figure of remuneration table on page 112.
b. All other employee figures are calculated on a cash basis.
c. Upon appointment as Group Chief Executive, the Board had agreed a salary increase for Jason Honeyman to be implemented for the financial year beginning August 2019. Details of

Jason’s benefits are included in note b page 112.

d. John Tutte was appointed as Non Executive Chairman during the financial year, having joined Bellway on the 1 March 2022.
e. Paul Hampden Smith resigned as Non Executive Chairman on the 31 March 2022.

CEO pay ratio
We are publishing our CEO pay ratio figures for the financial years 2018/19, to 2021/22. Over time, ten-year ratios will eventually
be disclosed.

G
o
v
e
r
n
a
n
c
e

Financial year

Method

2018/19

2019/20

2020/21

2021/22

Upper quartile

Median

Lower quartile

Pay
ratio

Total pay and
benefits
£

Salary
component
£

19:1

18:1

31:1

25:1

62,168

60,675

65,866

70,036

50,200

24,400

52,279

62,311

Pay
ratio

Total pay
and benefits
£

Salary
component
£

28:1

27:1

45:1

42,845

40,415

44,864

22,647

22,000

40,556

36:1

48,662

29,438

Pay
ratio

Total pay
and benefits
£

Salary
component
£

40:1

43:1

68:1

54:1

29,858

25,580

29,886

32,148

23,305

25,200

24,750

24,561

The pay ratios have been calculated as at 31 July 2022 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 for the Group Chief Executive. The annual bonus earned during the 2021/22 financial year, which is expected
to be paid in November 2022, has been approved for the Group Chief Executive, there is not an accurate estimate for all
other staff, therefore cash bonus paid during the year (relating to the 2020/21 financial year) has been used in the calculations.
The decrease in the CEO pay ratio in the current year is driven by the current year LTIP opportunity not vesting.

Jason Honeyman was appointed as Group Chief Executive on 1 August 2018, with a phased increase to his salary implemented
in the 2019/20 financial year, this resulted in a lower CEO pay ratio in 2018/19. Due to COVID-19 no bonuses were paid in the
2019/20 financial year, this led to a further fall in the CEO pay ratio.

Bellway p.l.c. Annual Report and Accounts 2022

117

Governance

Remuneration Report continued

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 2021 and 31 July 2022.
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

Employee costs(a)
Dividends(b)
Section 106 and CIL payments(c)

2022
£m

167.0

172.4

117.2

2021
£m

159.9

144.9

71.3

% change

4.4

19.0

64.4

Notes:
a. Employee costs are calculated as wages and salaries, bonus and taxable benefits (including the directors).
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 accounts).
c. The section 106 and CIL payments figures are calculated from invoices received for these payments.

Dilution limits/shares held in Trust to satisfy awards
The Bellway Employee Share Trust (1992) (the ‘Trust’) holds market-purchased shares to satisfy awards made under some of
the Company’s executive and employee share schemes. As at 31 July 2022 the Trust held 331,115 shares. It is the Company’s
current intention to use new issue shares to satisfy awards made under the PSP. Awards made under the deferred bonus plans
(to which the executive directors are not eligible) must be satisfied using market-purchased shares. The SRSOS uses new issued
shares. The Company’s share plans comply with the IA guidance on dilution limits and the position as at 31 July 2022 was:

Limit of 5% in any ten years under all executive share plans

Limit of 10% in any ten years under all share plans

Actual 0.92 %

Actual 0.86 %

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:

For

Against

Total votes cast (excluding votes withheld)

Votes withheld

Directors’ Remuneration Policy
(binding vote at AGM
on 6 December 2021)

Remuneration Report
(advisory vote at AGM
on 6 December 2021)

Number
of votes

% of
votes cast

Number
of votes

% of
votes cast

89,540,335

2,815,436

92,355,771

206,210

96.95

3.05

91,041,126

1,505,145

100.00

92,546,271

15,710

98.37

1.63

100.00

At the AGM on 16 December 2022, the Company’s shareholders will have an advisory vote on the Remuneration Report.

On behalf of the Board

Jill Caseberry
Chair of the Remuneration Committee

17 October 2022

118

Bellway p.l.c. Annual Report and Accounts 2022

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 6 December 2021. 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 2021
on the Company’s website.

Policy principles
The Directors’ Remuneration Policy is aligned with the principles within the 2018 UK Corporate Governance Code and these
principles are taken into account in its implementation:

Principles

Considerations within the Policy

Clarity: remuneration arrangements
should be transparent and promote
effective engagement with
shareholders and the workforce.

We clearly communicate our approach to remuneration in this report and in all
communications with shareholders whilst providing transparency in our rationale.
This also allows straightforward engagement with the wider workforce.

Simplicity: remuneration structures
should avoid complexity and their
rationale and operation should be
easy to understand.

We have structured the Remuneration Policy to be as simple as possible, within the
confines of ensuring arrangements are in line with the business strategy, have a
robust link between pay and performance and are designed with consideration of
investor expectations.

Risk: remuneration arrangements
should ensure reputational and
other risks from excessive rewards,
and behavioural risks that can arise
from target-based incentive plans,
are identified and mitigated.

Predictability: the range of possible
values of rewards to individual
directors and any other limits or
discretions should be identified and
explained at the time of approving
the policy.

Proportionality: the link between
individual awards, the delivery
of strategy and the long-term
performance of the Company
should be clear. Outcomes should
not reward poor performance.

Alignment to culture: incentive
schemes should drive behaviours
consistent with Company purpose,
values and strategy.

We mitigate against these risks through a carefully designed policy which includes a
balance between financial and non-financial bonus metrics, a Performance Share Plan
which is based on long-term performance, deferral of a portion of the annual bonus
into shares, and shareholding requirements. The Committee also has the ability to apply
discretion and clawback provisions if incentive payment levels are inappropriate.

We carefully consider the range of likely performance outcomes for incentive plans
when setting performance target ranges and at the time of assessment would use
discretion where necessary if the formulaic result is considered inappropriate.

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The opportunity under incentive plans is determined based on a proportion of salary
with the quantum determined to ensure that there is an appropriate link between pay
and performance.

The performance conditions applying to the incentives are aligned with the
Company’s strategy and are reviewed on an annual basis to consider whether they are
working effectively.

There are provisions to override the formula-driven outcome of incentive plans and
clawback provisions to ensure that there is not reward for poor performance.

The annual bonus is based on both financial and non-financial metrics aligned with the
strategy incentivising the profitability of the Company whilst maintaining a focus on our
customers and the quality of our service.

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 at 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 comparators, 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 (annual
bonus and long-term incentives) constitute a significant proportion of an executive’s potential total remuneration package, but
are only receivable if stretching performance targets are achieved.

The structure of the performance conditions for annual bonus and long-term incentives 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.

Bellway p.l.c. Annual Report and Accounts 2022

119

Governance

Remuneration Report continued

Decision-making process
The Committee is responsible for the determination of the Directors’ 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 judgement 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.

Consideration of employment conditions elsewhere in the Group
We have commenced using our Employee Listening Groups to provide an opportunity to engage with the workforce on
executive remuneration and for employees to raise issues which are reported to the Board. This is one of the UK Corporate
Governance Code’s requirements. In determining the elements of remuneration for the Executive Directors, the Committee
takes into consideration the pay and conditions of employees throughout the Group as a whole, paying particular attention to
the levels of basic pay increase awarded to the workforce generally.

All eligible employees, including the Executive Directors, can join the Group’s savings-related share option scheme, have
life assurance benefits and have access to pension arrangements. A significant proportion of employees benefit from health
insurance, a company car or car allowance and are eligible to participate in a discretionary bonus scheme.

The Committee is regularly updated of any significant policy changes for the workforce generally and management below
Board level in particular.

Clawback/malus
The time period over which clawback/malus will apply to bonuses in respect of bonus years commencing and PSP awards
granted after 1 August 2018 is at any time before the third anniversary of payment of bonus or vesting of PSP award, as relevant.

Incentive plan discretions
The Committee will operate the annual bonus plan and PSP in accordance with their respective rules. As part of the rules the
Committee holds certain discretions which are required for both an efficient operation and administration of these plans, and
are consistent with standard market practice. Any use of the discretions would, where relevant, be explained in the Annual
Report on Remuneration and may, as appropriate, be the subject of consultation with the Company’s major shareholders.

Policy table
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
Salary
To be market
competitive and
therefore assist
in recruiting,
retaining and
motivating high-
quality executives.
Reflects
individual role
and experience.

Operation

Maximum opportunity

Framework to assess performance

In addition to the reviews by the
Chairman, as part of the annual
Board evaluation, the performance
of the executives and the Company
is kept under continuous review by
the Board.

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.

120

Bellway p.l.c. Annual Report and Accounts 2022

Component and
link to strategy
Pension
To provide a
structure and value
that is market
competitive.

Benefits
To provide a
range and value
that is market
competitive.

Annual bonus
To reward
achievement with
a combination
of financial and
non-financial
operational-based
performance
targets in
accordance with
Group KPIs.

Operation

Maximum opportunity

Framework to assess performance

Pension contributions into the
Company’s Group Self Invested
Personal Pension Plan and/or
a salary supplement in lieu of
pension contributions.

Up to 20% of salary.

Not applicable.

The rate for current
Directors will be aligned
with that of the workforce
at the end of 2022.

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.

Annual bonuses are normally
payable in cash in November
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.

Any bonus over 100% of base salary
will be deferred into shares which
will have to be held for three years.

Not applicable.

Not applicable

120% of basic
salary maximum

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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 40% 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.

Bellway p.l.c. Annual Report and Accounts 2022

121

Maximum opportunity

Framework to assess performance

Not applicable.

200% of basic salary.

PSP awards are subject to stretching
three-year targets.

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
performance period.

Further details of the performance
metrics applying to the awards
are set out in the Annual Report
on Remuneration.

Governance

Remuneration Report continued

Operation

Component and
link to strategy
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 200%
of basic salary. This level, or if
lower the actual shareholding on
departure, must be maintained for at
least two years post departure.

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 awarded under the PSP,
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.

Long-term incentives (‘PSP’)
To encourage
long-term
value creation,
aid retention,
encourage
shareholding and
promote alignment
of interests with
shareholders.

The Company operates a PSP as its
primary long-term incentive.

Annual awards of nil-cost options or
conditional awards may be made
under the PSP 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 (in cash or
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) gross 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.

122

Bellway p.l.c. Annual Report and Accounts 2022

Maximum opportunity

Framework to assess performance

Subject to prevailing
HMRC limits.

Not applicable.

The aggregate of NED
fees is set out in the
Articles of Association
and is currently
£500,000 p.a.

The performance of the Non-
Executive Directors is assessed by
the Chairman.

The Senior Independent Non-
Executive Director reviews the
performance of the Chairman
in conjunction with the Directors.

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The Executive Directors can
participate in any HMRC approved
all-employee plans operated by
the Company.

Operation

Component and
link to strategy
All-employee share schemes
To encourage
employees to
build a stake
in the future of
the Company.
Chairman and Non-Executive Directors
To set appropriate
fees in light of the
time commitment,
responsibilities,
wider market and
best practice.

The Chairman’s fee is determined
by the Remuneration Committee.

The remuneration of the Non-
Executive Directors 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.

For the avoidance of doubt, under this Directors’ Remuneration Policy, authority is given to the Company to honour any
commitments entered into with current or former directors that is consistent with the approved remuneration policy in force at
the time the commitment was made (or, if made before the current policy was approved, as have been disclosed previously
to shareholders), or was made at the time when the relevant individual was not a director of the Company. Details of any
payments made to former directors will be set out in the Annual Report on Remuneration as they arise.

Bellway p.l.c. Annual Report and Accounts 2022

123

Governance

Remuneration Report continued

Approach to recruitment remuneration
In arriving at a total package and in considering the quantum for each element of the package, the Committee will take into
account the skills and experience of the candidate and the market rate for a candidate of that experience, as well as the
importance of securing the preferred candidate.

Element

Salary

General policy

Detail

At a level required to attract the
most appropriate candidate.

Pension and benefits

In accordance with
Company policies.

Bonus

In accordance with
existing schemes.

Long-term
incentives (PSP)

In accordance with Company
policies and maximum limits in the
PSP rules.

Buyout of forfeited
remuneration

The Committee may make an
award in cash or shares to replace
deferred or incentive pay forfeited
by an executive leaving a previous
employer (and, if required, by
relying on the flexibility provided
in the Listing Rules to grant such
replacement awards).

Discretion to pay lower basic salary with incremental increases,
potentially higher than for the general workforce, as new
appointee becomes established in the role.

Additional benefits in relation to recruitment may be provided
where considered appropriate, for example, relocation
expenses or allowances, legal fees and other recruitment-
related costs may be payable.

Any new director’s pension contributions will be in line with the
wider workforce. The current employer pension contribution
rate is between 5% and 10% of salary.

Depending on the timing of recruitment, bespoke targets could
be introduced for an individual within the maximum individual
limits of the annual bonus plan applicable at the time.

Pro-rating would be applied as appropriate for intra-year joiners.

An award may be made in the year of joining or, alternatively,
the award can be delayed until the following year.

Targets would normally be the same as for other directors and
grant levels consistent within the permitted individual maximum
under the rules of the plan and this policy.

Awards would, where possible, be consistent with the awards
forfeited in terms of the vehicle, structure, vesting periods,
expected value and performance conditions.

Service contracts and loss of office payment policy
The details of the executive directors’ service contracts are as follows:

Executive Director

Jason Honeyman

Keith Adey

First appointed as
a Director

Current contract
commencement date

1 September 2017

1 August 2018

1 February 2012

Notice period
from employer

6 months

12 months

Notice period
from executive

6 months

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. Neither of the Executive Directors currently holds 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
Chairman whose notice period may extend to six months.

Currently, all Non-Executive Directors 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 Chairman
and Non-Executive Directors provide that no compensation is payable on termination, other than fees accrued and expenses.

124

Bellway p.l.c. Annual Report and Accounts 2022

Executive Director

John Tutte

Denise Jagger

Sarah Whitney

Jill Caseberry

Ian McHoul

First appointed as
a Director

1 March 2022

1 August 2013

Current letter
of appointment
commencement date

Current letter of
appointment
end date

1 March 2022

28 February 2025

1 August 2019

31 July 2022

1 September 2022

31 August 2025

1 October 2017

1 October 2017 30 September 2023

1 February 2018

1 February 2021

31 January 2024

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)

Nil.

Salary, pension
and benefits
(after cessation
of employment)

Annual bonus

No bonus payable.

PSP (and SMP
awards granted
in 2014 or before)

All awards, including
those which have
vested but are
unexercised will
lapse immediately
upon cessation
of employment.

Other payments Nil.

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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.

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 Company may pay in lieu of notice
an amount equivalent to 12 months’ salary,
pension and benefits.

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.

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 have been satisfied.

The level of vested award will be
reduced, pro-rata, based upon the
period of time after the grant date
and ending on the date of cessation
of employment, relative to the three-
year performance period unless the
Committee, acting fairly and reasonably,
decides that such a scaling back is
inappropriate in any particular case.

Depending upon circumstances,
the Committee may consider payments
in respect of an unfair dismissal award,
outplacement support and assistance
with legal fees.

For the proportion of the financial year
worked, bonus may be payable pro-rata,
subject to performance, at the discretion of
the Committee.

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 have been satisfied.

The level of vested award will be reduced,
pro-rata, based upon the period of time
after the grant date and ending on the date
of cessation of employment, relative to the
three-year performance period unless the
Committee, acting fairly and reasonably,
decides that such a scaling back is
inappropriate in any particular case.

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.

Bellway p.l.c. Annual Report and Accounts 2022

125

Results and Dividends
The profit for the year attributable to equity holders of
the parent company amounts to £242.6 million (2021 –
£390.7 million).

The Directors have proposed a final ordinary dividend for
the year ended 31 July 2022 of 95.0 per share (2021 – 82.5p).
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 11 January 2023 to shareholders on
the Register of Members at the close of business on Friday
2 December 2022.

Dividends paid during the year comprise the final dividend
of 82.5p per share in respect of the year ended 31 July 2021,
together with an interim dividend in respect of the year ended
31 July 2022 of 45.0p 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
provision remains in force as at the date of this report.

Major interests in shares
As at 31 July 2022 and as at the date of this report, the
Company had been notified under DTR 5 of the following
interests, amounting to 3% or more of the voting rights in the
issued ordinary share capital of the Company:

Topic

As at 31 July 2022

As at 17 October 2022

Number of
shares with
voting rights

% total
voting
rights

Number of
shares with
voting rights

Below 5% 6,631,353

3,890,282

3.38

3,890,282

% total
voting
rights

5.36

3.38

6,148,373

4.99

6,148,373

4.99

5,053,537

4.09

5,053,537

4.09

BlackRock Inc

Credit Suisse
Securities (Europe)
Ltd

Dimensional Fund
Advisors LP

Polaris Capital
Management

Governance

Directors’ Report

The Directors have proposed a final

ordinary dividend for the year ended
31 July 2022 of 95.0p per share.

Simon Scougall
Group General Counsel and Company Secretary

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
note 26 to the accounts.

The following table 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 simply cross-referenced here to
avoid repetition.

Topic

Directors

Appointment and
replacement of directors

Page number

86 to 87

92 and in the Articles

Directors’ interests

113

Future developments

29 of the Strategic Report

Group undertakings

173

Environmental issues

42 to 61 of the Strategic Report

s172 statement/reporting

65 of the Strategic Report

Greenhouse gas emissions 44 of the Strategic Report

Whistleblowing

104

Financial risk management

75 to 78 of the Strategic Report

Going concern

77 of the Strategic Report

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Bellway p.l.c. Annual Report and Accounts 2022

Post balance sheet events
The Company acquired 100% of the ordinary share capital
of Rosconn Strategic Land Limited on 12 October 2022 for
£24.8 million cash consideration.

Earlier this month, the Group also signed up to
the Developers’ Pact with the Welsh Government.
Similar to the Pledge, this is a commitment to remediate
buildings over 11 metres in height with life critical fire
safety issues, which were constructed in Wales since 1992.
Reflecting our ongoing and responsible UK-wide approach
to legacy building safety, the expected cost of the remediation
works in Wales was probable at the year end and is included
in our provision at 31 July 2022.

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 banking 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 2022,
consisted of 123,486,260 ordinary shares of 12.5p each.
Further details of the issued capital of the Company can be
found in note 18 to the accounts. The rights and obligations
attaching to the ordinary shares in the Company are set out in
the Articles of Association (the ‘Articles’). Copies of the Articles
can be obtained from Companies House or by writing to
the Group General Counsel 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 has 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, 89,838 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 of the AGM,
to be held on Friday 16 December 2022.

Purchase of the Company’s own shares
The Company was given authority at the AGM on
6 December 2021 to purchase its own ordinary shares. As at
the date of this report, no market purchases have been made
by the Company. This authority will expire at the end of the
forthcoming AGM. Details of the renewal of this authority,
including the resolution which seeks to renew this authority
for a further year, are set out in the Notice of Meeting of
the AGM.

Listing Rules
There are no disclosures required by LR9.8.4 that apply to
the Company.

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 77, 91
and 92 respectively.

The Audit Committee, whose role is detailed on page 97 and
98, has meetings at least twice a year with the Company’s
auditor, Ernst & Young LLP.

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127

Governance

Directors’ Report continued

People
The important role that our people perform is described
throughout the Strategic Report. In addition, following
the introduction of Better with Bellway, which is our new
responsible and sustainable approach to our business,
we aim to be an employer of choice, with a safe, diverse,
and inclusive environment. More details are included with
the Better with Bellway section.

The following disclosures provide additional information
on how we treat our people and how we engage with them.

We are an equal opportunities employer. It is our policy
to develop and apply, throughout the Group, procedures
and practices which are designed to ensure that equal
opportunities are provided to all of our employees, or
those who seek employment with the Group, irrespective
of their age, colour, disability, ethnic origin, gender, marital
status, nationality, parental status, race, religion, belief or
sexual orientation.

All employees, whether part-time, full-time or temporary,
are treated fairly and equally. Selection for employment,
promotion, training or other matters affecting their
employment is on the basis of aptitude and ability.
All employees are supported and encouraged to develop
to their full potential and the talents and resources of the
workforce are fully utilised to maximise the efficiency of
the organisation. Training at each division is planned and
monitored through an annual training plan.

It is our policy to give full and fair consideration to the
employment needs of disabled persons (and persons
who become disabled whilst employed by the Group)
and to comply with any current legislation with regard to
disabled persons.

The importance of good communications with employees
is recognised by the Directors and senior management team.
Employee Listening Groups are held on a regular basis to
engage in open communication and a newsletter is issued to
all of our employees. Each division maintains good employee
relations using a variety of means appropriate to its own
particular needs, with guidance when necessary from Group
Head Office.

All new employees, when eligible, are automatically
entered into the Group’s pension arrangements. In addition,
we operate a savings-related share option scheme and
have discretionary bonus arrangements in place. We also
provide life assurance cover to all of our employees, offer a
private medical scheme (depending on seniority) and offer
childcare vouchers.

Health and safety at work
We promote all aspects of health and safety throughout our
operations in the interests of employees, subcontractors,
suppliers, customers and visitors to our sites and premises.
This is now further supported by our new sustainable
approach, Better with Bellway, and the ‘Building Quality
Homes, Safely’ pillar. More details can be found within the
Better with Bellway section.

Health and safety issues are considered at each Board
meeting and are addressed in the Strategic Report, and on
our website at www.bellwayplc.co.uk/corporate-responsibility.
The Board receives external advice and training from
specialist advisers on both the Directors’ and the Company’s
regulatory obligations.

Auditor
In accordance with section 489 of the Companies Act
2006, a resolution for the re-appointment of Ernst & Young
LLP as auditor of the Company is to be proposed at the
forthcoming AGM.

AGM – special business
Five resolutions will be proposed as special business
at the AGM to be held on Friday 16 December 2022.
Explanatory notes on these resolutions are set out in the
Notice of Meeting of the AGM.

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 he or she
ought to have taken as a Director to make himself or herself
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 and parent
company Financial Statements in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006. 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.

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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; and

• That 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

Simon Scougall
Group General Counsel and Company Secretary

17 October 2022

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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 judgements 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 parent company Financial Statements,
state whether UK adopted international accounting
standards in conformity with the requirements of the
Companies Act 2006 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.

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129

Governance

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 2022 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 UK adopted
international accounting standards as applied in
accordance with section 408 of the Companies Act
2006; 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 2022 which comprise:

Group

Parent Company

Consolidated balance sheet as
at 31 July 2022

Balance sheet as at
31 July 2022

Statement of changes
in equity for the year
then ended

Statement of cash flows for
the year then ended

Related notes 1 to 29 to
the financial statements
including a summary of
significant accounting
policies

Consolidated income statement
for the year then ended

Consolidated statement of
comprehensive income for the
year then ended

Consolidated statement of
changes in equity for the year
then ended

Consolidated statement of cash
flows for the year then ended

Related notes 1 to 29 to the
financial statements, including
a summary of significant
accounting policies

The financial reporting framework that has been applied
in their preparation is applicable law and UK adopted
international accounting standards and as regards the parent
Company financial statements, as applied in accordance with
section 408 of the Companies Act 2006.

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.

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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, we obtained an understanding
of management’s going concern assessment process
and challenged management to ensure key factors
were considered in their assessment. We obtained an
understanding of each of management’s modelled
scenarios, including the base case, the reasonable
downside case and the reverse stress test case. The reverse
stress test case has been prepared to illustrate severe and
unrealistic assumptions which achieve or nearly achieve
a break case i.e. where the Group runs out of cash or
breaches a debt covenant.

• We assessed the appropriateness of the duration of the
going concern assessment period to 31 July 2024 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.

• We obtained management’s going concern calculations,
including the cashflow forecast for the going concern
period through to 31 July 2024 and tested these for
arithmetical accuracy.

• We assessed the historical accuracy of the forecasting and
challenged the appropriateness of the 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 appropriately sophisticated to be
able to make an appropriate assessment of going concern.

• We verified inputs into the cash flow forecasts and debt
facility terms and reconciled the liquidity position as at
31 July 2022. We further reviewed borrowing facilities to
confirm both their availability to the Group and the forecast
debt repayments through the going concern assessment
period and to validate that there are only three financial
covenants in relation to the available facilities.

• We obtained the reverse stress testing and downside cases
prepared by management and assessed the plausibility of
these. We did this by challenging the assumptions made
and considering indicators of contradictory evidence.
• We considered any mitigating factors included in the

downside case scenarios that are within control of the
Group. This includes assessment of the Group’s operating
and non-operating cash outflows relating to discretionary
bonus payments and dividend payments and evaluating
the Group’s ability to control these outflows as mitigating
actions if required.

• We subjected the reasonable downside model to additional

stress testing to confirm management has considered
a balanced range of outcomes in their assessment of
going concern.

• We assessed management’s considerations related to any
material climate change impacts in the going concern
period, including incorporation of the expected costs of
applying the Future Homes Standard during the period of
going concern assessment.

• We reviewed the Group’s going concern disclosures

included in the annual report and accounts in order to
assess whether the disclosures were appropriate and
appropriately described the assessment management
performed and the key judgements taken.

Our key observations:

• The directors’ assessment forecasts that the Group

will maintain sufficient liquidity throughout the going
concern assessment period in the base case scenario.
Under management’s reverse stress test scenario (which
includes a significant investment in land, increasing land
creditors to £800m, followed by a reduction in private
homes completions of 50% and average selling prices on
private homes reducing by 20% in following 12 months),
liquidity headroom is nearly eliminated in June 2024.

• Other than the impact of the Future Homes Standard,

we have not identified any material climate-related risks
that should be incorporated into the Group’s forecasts to
31 July 2024.

Based on the work we 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 a period to 31 July 2024 from when the financial
statements are authorised for issue.

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.

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Overview of our audit approach

Audit scope

Key audit matters

• 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 99% of profit before tax, adjusted
for the estimated one-off impact of the
£300.0 million Building Safety Pledge
recorded in the year, 99% of Revenue
and 99% of Total assets.

• Inappropriate revenue recognition;
• Inappropriate cost of sales recognition
and valuation of work-in-progress and
land on sites under development; and

• Inappropriate recognition of legacy

building safety improvement provisions.

Materiality

• Overall Group materiality of £30.7 million

represents 5% of profit before tax,
adjusted for the estimated one-off
impact of the £300.0 million Building
Safety Pledge recorded in the year.

An overview of the scope of the parent company
and group audits
Tailoring the scope

Our assessment of audit risk, our evaluation of materiality and
our allocation of performance materiality determine our audit
scope for each Company within the Group. Taken together,
this enables us to form an opinion on the consolidated
financial statements.

We take into account size, risk profile, the organisation of
the Group, changes in the business environment and other
factors such as recent internal audit results when assessing
the level of work to be performed at each component.

In assessing the risk of material misstatement to the Group
financial statements, and to ensure we had adequate
quantitative coverage of significant accounts in the financial
statements, of the 11 reporting components of the Group, we
selected 2 components covering entities which represent the
principal business units within the Group.

For the 2 components selected (“full scope components”)
which were selected based on their size or risk characteristics,
we performed an audit of the complete financial information.

The full scope components accounted for 99% (2021: 99%)
of the Group’s profit before tax, adjusted for the estimated
one-off impact of the £300.0 million Building Safety Pledge
recorded in the year, 99% (2021: 99%) of the Group’s Revenue
and 99% (2021: 99%) of the Group’s Total assets.

The remaining 9 components together represent 1% of
the Group’s profit before tax, adjusted for the estimated
one-off impact of the £300.0 million Building Safety Pledge
recorded in the year. For these components, we performed
other procedures, including analytical review, testing of
consolidation journals and intercompany eliminations to
respond to any potential risks of material misstatement
to the Group financial statements. The statutory audits of
these 8 components were performed concurrently with the
Group audit

Bellway p.l.c. Annual Report and Accounts 2022

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Governance

Independent Auditor’s report to the members of Bellway p.l.c. continued

appropriately reflected in asset values and associated
disclosures where values are determined through modelling
future cash flows. Specifically, we considered this in 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 updated Part L building regulations
for units without foundations constructed prior to June
2023, and applying the Future Homes Standard for units
without foundations constructed prior to June 2025 (for
full compliance). Details of our procedures and findings on
cost of sales recognition and valuation of work-in-progress
and land on sites under development are included in our
key audit matters below. We also challenged the Directors’
considerations of climate change in their assessment of going
concern and viability and associated disclosures.

We have read the climate related information within the
Annual Report, which included the Group’s adoption
of climate related disclosures as recommended by the
Task Force for Climate related Financial Disclosures and
considered consistency with the financial statements and our
audit knowledge.

Whilst the Group have stated their commitment to the
aspirations of the Paris Agreement to achieve net zero
emissions by 2050, the Group are currently unable to
determine the full future economic impact on their business
model beyond the viability assessment period, operational
plans and customers to achieve this and therefore as set
out above the potential impacts are not fully incorporated in
these financial statements.

Key audit matters
Key audit matters are those matters that, in our professional
judgment, 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.

Changes from the prior year

There are no changes to our scoping from the prior year.

Involvement with component teams

All audit work performed for the purposes of the audit was
undertaken by the Group audit team.

Climate change

There has been increasing interest from stakeholders as to
how climate change will impact Bellway p.l.c. The Group has
determined that the most significant future risks from climate
change on their operations will be from evolving legal and
regulatory requirements (e.g. Updated Part L requirements
within building regulations, the Future Homes Standard and
the Environment Act), market pressures over supply chain
resource shortages and insufficient development of more
efficient products and technologies to deliver climate-resilient
homes. These are explained on pages 34–64 in the Better
with Bellway section, and specifically within pages 46–53
in the required Task Force for Climate related Financial
Disclosures, which form part of the “Other information” rather
than the audited financial statements. Our procedures on
these 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.

As explained on page 148 in the Basis of Preparation note,
governmental and societal responses to climate change
risks are still developing, and are interdependent upon each
other, and consequently financial statements cannot capture
all possible future outcomes as these are not yet known.
The degree of certainty of these changes may also mean
that they cannot be taken into account when determining
asset and liability valuations and the timing of future cash
flows under the requirements of UK adopted international
accounting standards. In the Task Force for Climate related
Financial Disclosures on pages 50–52 supplementary
narrative explanation of the impact of reasonably possible
changes in key assumptions have been provided.

As part of our audit, we have made enquiries of management
to understand the extent of the potential impact of climate
change risk on the Group’s financial statements. We have
performed a risk assessment of how climate risks facing the
Group, particularly with the requirements to meet evolving
legal and regulatory requirements (e.g. Updated Part L
requirements within building regulations and the Future
Homes Standard) on the valuation of land and work in
progress under development, and understood the Group’s
strategy to address these risks that may affect the financial
statements and our audit. We also held discussions with
our own climate change professionals to challenge our
risk assessment.

On the basis of our risk assessment, our audit effort in
considering climate change was focused on evaluating
management’s assessment of the impact of climate risk,
physical and transition, and ensuring that the effects of
material climate risks disclosed on pages 50-52 have been

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Key observations communicated
to the Audit Committee

We did not identify any
evidence of material
misstatement in the
revenue of £3,536.8 million
recognised in the year as
a result of inappropriate
revenue recognition,
application of cut-off or
management override.

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Risk

Inappropriate
revenue recognition

Refer to the Audit Committee
Report (page 97); Accounting
policies and Notes 1 and 8 of the
Consolidated Financial Statements
(pages 148, 150 and 158)

The Group has reported:

• Revenues of £3,536.8 million

(2021: £3,122.5 million)

• Trade receivables of

£47.5 million (2021: £17.0 million).

We identified a specific risk
of fraud and error in respect
of inappropriate revenue
recognition arising from sales
transactions being recorded
ahead of performance obligations
being satisfied, being legal or
practical completion.

There is a risk that management
may recognise revenue in
advance of legal or practical
completion of plot sale through
inappropriate application of cut
off or manual postings recording
revenue in an earlier period
than appropriate.

We focused our procedures on
the occurrence of revenue and
existence of trade receivables.

There is no change in our risk
assessment from the prior year.

Our response to the risk

Walkthrough and controls

• We performed walkthroughs of each significant class of
revenue transactions which consists of private sales and
housing association sales, and other income relating to part
exchange sales and assessed the design effectiveness of key
transaction controls.

Timing of revenue recognition

• We applied a data analytics approach which allowed us to
interrogate full populations of revenue transactions across
all divisions 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 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 reviewed the output of the work performed by internal
audit in respect of revenue recognised on plot completions
2 weeks prior and 2 weeks post the year end. We do not
rely on the work performed by internal audit, therefore in
line with our identified audit risk, we tested items classified as
higher risk and agreed these items to completion statements
to confirm the performance obligation was satisfied in
advance of year end.

• 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 or practical completion statements or
evidence of cash receipts. 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 practical
completion takes place.

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 Group General Counsel and Company
Secretary, Regional Chairs 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.
Examples of items reviewed were part exchange and Help-
to-Buy transactions.

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Key observations communicated
to the Audit Committee

We are satisfied the cost of
sales margin and valuation
of WIP and land on sites
under development
is appropriate.

Risk

Inappropriate recognition of cost
of sales margin and valuation of
work in progress and land on
sites under development

Refer to the Audit Committee
Report (pages 100 and 101);
Accounting policies and Notes
3 and 7 of the Consolidated
Financial Statements (pages 153
and 156 to 157)

The Group has reported:

• Cost of sales before net
legacy building safety
expense of £2,749.8 million
(2021: £2,470.6 million)
• Land £2,786.4 million
(2021: £2,483.9 million)

• Work-in-progress
of £1,524.8 million
(2021: £1,431.4 million)

• Showhomes £107.0 million

(2021: £115.1 million)

The site margin applied to plot
sales includes assumptions
regarding forecast revenue
and costs 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.

There is no change in our risk
assessment from the prior year.

Our response to the risk

Walkthrough and controls

• We performed a walkthrough of management’s transaction
controls in place covering the monitoring and updating of
certain site valuations to assess design effectiveness.
• We attended and observed the valuation meeting at

12 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 assumption 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 trends in house price inflation.
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 a detailed review of the
cost estimate and sampling key elements to supporting
documentation including sub-contractor orders, quotations,
tender documentation and invoices. We also obtained
supporting correspondence with suppliers in respect of price
increases and variations where relevant.

• 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, we selected a sample of sites with construction
phases beyond FY23, to assess for those sites impacted
by the Future Homes Standard and/or Part L of updated
building regulations, that the application of future homes
cost assumptions were appropriately reflected within
the valuations.

• We performed specific procedures to assess whether there

were material movements recorded in the final stages of site
adjustments, the net impact of this was not material.

• We tested a sample of developments where the last plot was
sold during FY22 and compared the final site margin to the
previous quarterly valuation.

• 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,
the net impact of this was not material.

• We performed inquiries of Regional Chairmen and the

Divisional Director teams to further understand any other
specific risks.

134

Bellway p.l.c. Annual Report and Accounts 2022

Key observations communicated
to the Audit Committee

Based on the procedures
performed, including
testing of key movements,
direct inquiry of
management’s expert and
engaging EY Insurance
Risk and Actuarial
specialists in the audit of
assumptions underpinning
management’s provision
calculation, we are satisfied
that the resultant year end
net provision of £441.5m is
fairly stated.

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Risk

Inappropriate recognition
of legacy building safety
improvement provisions

Refer to the Audit Committee
Report (pages 98); Accounting
policies and Notes 2 and 10 of the
Consolidated Financial Statements
(pages 151 and 159)

The Group has reported:

• Net legacy building safety

provision of £441.5m
(2021: £115.5m)

• Net legacy building safety
expense of £346.2 million
(2021: £51.8 million)

There is estimation uncertainty
and subjectivity in determining
the most likely costs which will
be required in order to remediate
affected properties based on the
latest legal interpretation and
government guidance.

The risk has increased in the
current year due to changes
in government guidance and
a significant increase in the
quantum of the Group’s provision.

Our response to the risk

Walkthrough and controls

• We performed a walkthrough of management’s transaction

controls in place over monitoring and updating the
legacy building safety improvement provision to assess
design effectiveness.

• We attended the fire panel meeting closest to year end

for divisions identified with actual or potential remediation
obligations. 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, including estimates provided by third party
consultants. underpinning the amounts recognised relating
to live projects within management’s provision calculation.

Understanding basis for recognition of provision

• We read and understood the relevant laws and regulations

including recently published government guidance.

• We reviewed management’s fire project accounting paper
to understand management’s rationale which supports the
recognition of a provision. We obtained an understanding
of management’s commitment through the Building Safety
Pledge, to fund, undertake or procure, at its own cost, all
necessary remediation or mitigation work to address life-
critical fire safety arising from the design, construction or
refurbishment defects on buildings above 11 metres which
Bellway played a role in developing or refurbishing that have
been built over the last 30 years.

• We challenged management’s assessment against the
requirements of IAS 37, agreed assumptions to third
party support such as correspondence with external fire
consultants, where applicable

Testing the basis of management’s provision calculation

• We obtained management’s fire provision schedule showing

the brought forward fire provision, amounts spent and
recovered, amounts further provided or released, new sites,
additional amounts recognised in respect of the Building
Safety Pledge and final year end provision, and understood
significant movements.

• 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 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 the methodology of
valuation reports, through discussion with external
consultants. This was in order to understand and challenge
the basis of estimates made and to discuss the status of
the most material provisions. We assessed the scope of
the consultants work in accordance with government
guidance. As part of our procedures, we assessed the
objectivity, experience and competency of management’s
external specialist.

Bellway p.l.c. Annual Report and Accounts 2022

135

Governance

Independent Auditor’s report to the members of Bellway p.l.c. continued

Risk

Our response to the risk

Key observations communicated
to the Audit Committee

Testing the basis of management’s provision
calculation continued

• We performed testing on management’s assumptions, with
support from EY Insurance Risk and Actuarial specialists,
regarding the costs of remediation per plot, the number
of plots to be remediated, the time period for the work
to be completed and the discount factor applied to the
overall provision.

• We performed sensitivity analysis on the provision in order to
establish whether these could give rise to material variances.
• In order to assess the completeness of properties identified

within management’s calculation, we reconciled the
number of legally completed plots in the last 30 years to
management records. For a sample of completions, we
performed audit testing to external sources to corroborate
that these properties are appropriately included.

• We further performed divisional inquiries with all Regional

Chairs and Divisional Finance teams to understand
latest obligations. 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
and contingent liabilities, including the disclosure of the
assumptions and associated sensitivities in relation to the key
sources of estimation uncertainty.

We determined materiality for the parent Company to be
£2.2 million (2021: £2.6 million), which is 0.5% (2021: 0.5%) of
Total assets.

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%
(2021: 50% due to first year audit) of our planning materiality,
namely £23.0 million (2021: £11.6 million).

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 £4.6 million to £21.9 million (2021: £1.3 million
to £8.7 million).

In the current year we included a new key audit matter in
relation to risk in respect of inappropriate recognition of the
legacy building safety improvement provision. As a result of
evolving government legislation/guidance and the significant
increase in the quantum of the Group’s provision, we have
introduced this as 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 final materiality for the Group to be
£30.7 million (2021: £23.1 million), which is 5% of profit
before tax, adjusted for the estimated one-off impact of the
£300.0 million Building Safety Pledge recorded in the year
(2021: 5% of Profit before tax). We believe that profit before
tax, adjusted for the impact of the estimated £300.0 million
Building Safety Pledge recorded in the year, provides us
with an appropriate basis of materiality that is appropriately
focused on the users of the financial statements. The basis for
materiality has changed year on year to adjust for the current
year one-off impact of the Building Safety Pledge.

136

Bellway p.l.c. Annual Report and Accounts 2022

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 £1.5 million
(2021: £1.1 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 129, including the
Strategic Report, the Directors’ Report, the Remuneration
Committee Report and Corporate Governance reporting,
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

• the strategic report and the directors’ report have been

prepared in accordance with applicable legal requirements.

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.

• 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

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
Listing Rules.

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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 77;

• 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 77;

• Director’s 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 pages 128
and 129;

• Directors’ statement on fair, balanced and understandable

set out on page 129;

• Board’s confirmation that it has carried out a robust

assessment of the emerging and principal risks set out on
pages 79 to 83;

• The section of the annual report that describes the review
of effectiveness of risk management and internal control
systems set out on page 103; and;

• The section describing the work of the audit committee set

out on pages 97 to 105.

Bellway p.l.c. Annual Report and Accounts 2022

137

Governance

Independent Auditor’s report to the members of Bellway p.l.c. continued

Responsibilities of directors
As explained more fully in the directors’ responsibilities
statement set out on page 128, 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, employment law, health and safety
legislation, fire and building safety legislation including
Building Safety Pledge.

• We understood how the Group is complying with those

frameworks by making inquiries with management, internal
audit and those responsible for legal and compliance
procedures and the Group General Counsel and Company
Secretary. We corroborated our enquiries through our
review of Board minutes and review of Group compliance
with policies and processes. We obtained and reviewed
legal correspondence to support our audit procedures and
to assess management positions reported in respect of
legacy building safety improvements.

• We assessed the susceptibility of the Group 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 2018.

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 2 years.

• The audit opinion is consistent with the additional report to

the Audit Committee.

138

Bellway p.l.c. Annual Report and Accounts 2022

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..

Mark Morritt (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor

Newcastle upon Tyne
17 October 2022

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Bellway p.l.c. Annual Report and Accounts 2022

139

Accounts

Primary statements

Group Income Statement

Group Statement of Comprehensive Income

Statements of Changes in Equity

Balance Sheets

Parent Company Income Statement

Cash Flow Statements

Accounting Policies

Basis of preparation

Going concern

Effect of new standards and interpretations effective
for the first time

Standards and interpretations in issue but not
yet effective

Notes to the Financial Statements

142

143

144

146

147

148

149

Taxation

6a.

Income tax recognised in the income statement

6b.

Tax recognised in equity and other
comprehensive income

6c. Deferred taxation

Working capital

Inventories

Trade and other receivables

Trade and other payables

10.

Provisions and reimbursement assets

Investing activities

11.

Property, plant and equipment

12.

Financial assets and equity accounted joint
arrangements, and investments in subsidiaries

Notes to the Financial Statements

150

13.

Joint arrangements

Performance for the year

Revenue

2. Net legacy building safety expense

Cost of sales recognition

4. Operating profit

4a. Part-exchange properties

4b. Operating profit is stated after charging/(crediting)

4c. Auditor’s remuneration

Earnings per ordinary share

150

151

153

154

14. Commitments

Financing

15. Net cash

15a. Reconciliation of net cash flow to net cash

15b. Analysis of net cash

16.

Finance income and expenses

17.

Financial instruments

Shareholder capital

18.

Issued capital

19. Reserves

20. Dividends on equity shares

154

155

156

158

159

161

162

163

164

165

167

168

140

Bellway p.l.c. Annual Report and Accounts 2022

Directors and employees

21. Employee information

22. Retirement benefit asset

23. Share based payments

Contingencies, related parties
and subsidiaries

24. Contingent liabilities

25. Related party transactions

26. Group undertakings

27. Resident management companies

Other information

28. Alternative performance measures

29. Post balance sheet events

Five year record

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.

169

172

174

175

176

183

186

187

Bellway p.l.c. Annual Report and Accounts 2022

141

Accounts

Group Income Statement
for the year ended 31 July 2022

Revenue

Cost of sales

Analysed as:

Underlying cost of sales

Adjusting item: net legacy building safety expense

Gross profit

Other operating income

Other operating expenses

Administrative expenses

Operating profit

Finance income

Finance expenses

Analysed as:

Underlying finance expenses

Adjusting item: unwinding of discount on the legacy building safety provision

Share of result of joint ventures

Profit before taxation

Income tax expense

Profit for the year*

Earnings per ordinary share – Basic

Earnings per ordinary share – Diluted

* All attributable to equity holders of the parent.

Adjusting items

Gross profit

Gross profit per the Group Income Statement

Adjusting item: net legacy building safety expense

Underlying gross profit

Operating profit

Operating profit per the Group Income Statement

Adjusting item: net legacy building safety expense

Underlying operating profit

Profit before taxation

Profit before taxation per the Group Income Statement

Adjusting item: net legacy building safety expense

Underlying profit before taxation

Profit for the year

Profit for the year per the Group Income Statement

Adjusting item: net legacy building safety expense

Adjusting item: tax on net legacy building safety expense

Underlying profit for the year

142

Bellway p.l.c. Annual Report and Accounts 2022

Note

2022
£m

3,536.8

(3,094.0)

2021
£m

3,122.5

(2,522.4)

(2,749.8)

(2,470.6)

(344.2)

(51.8)

442.8

25.3

(25.1)

(134.0)

309.0

1.6

(15.7)

(13.7)

(2.0)

9.3

304.2

(61.6)

242.6

600.1

54.6

(54.9)

(120.1)

479.7

0.6

(11.7)

–

10.4

479.0

(88.3)

390.7

196.9p

196.2p

316.9p

315.8p

2022
£m

442.8

344.2

787.0

309.0

344.2

653.2

304.2

346.2

650.4

242.6

346.2

(70.3)

518.5

2021
£m

600.1

51.8

651.9

479.7

51.8

531.5

479.0

51.8

530.8

390.7

51.8

(9.8)

432.7

Group Statement of Comprehensive Income
for the year ended 31 July 2022

Profit for the period

Other comprehensive (expense)/income

Items that will not be recycled to the income statement:

Remeasurement (losses)/gains on defined benefit pension plans

Income tax on other comprehensive expense/(income)

Other comprehensive (expense)/income for the period, net of income tax
Total comprehensive income for the period*

* All attributable to equity holders of the parent.

Note

2022
£m

242.6

2021
£m

390.7

(3.5)

0.5

(3.0)

8.5

(2.2)

6.3

239.6

397.0

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Bellway p.l.c. Annual Report and Accounts 2022

143

Accounts

Statements of Changes in Equity
at 31 July 2022

Group

Note

Balance at 1 August 2020

Total comprehensive income
for the period

Profit for the period
Other comprehensive income*
Total comprehensive income
for the period

Transactions with shareholders
recorded directly in equity:

Dividends on equity shares

Purchase of own shares

Shares issued

Credit in relation to share options
and tax thereon

6, 23

Total contributions by and
distributions to shareholders

Issued
capital

£m

15.4

Share
premium

£m

178.4

Capital
redemption
reserve
£m

20.0

Other
reserves

Retained
earnings

£m

1.5

£m

2,778.7

Total
equity

£m

2,994.0

–

1.4

–

1.4

–

390.7

6.3

397.0

(104.7)

(2.5)

–

2.6

390.7

6.3

397.0

(104.7)

(2.5)

1.4

2.6

(104.6)

(103.2)

Balance at 31 July 2021

15.4

179.8

20.0

1.5

3,071.1

3,287.8

Total comprehensive income for
the period

Profit for the period
Other comprehensive expense*
Total comprehensive income
for the period

Transactions with shareholders
recorded directly in equity:

Dividends on equity shares

Purchase of own shares

Shares issued

Credit in relation to share
options and tax thereon

Total contributions by and
distributions to shareholders

6, 23

–

2.2

–

2.2

–

242.6

(3.0)

242.6

(3.0)

239.6

(157.2)

(7.4)

–

2.8

(7.4)

2.2

2.8

(161.8)

(159.6)

Balance at 31 July 2022

15.4

182.0

20.0

1.5

3,148.9

3,367.8

* An additional breakdown is provided in the Group Statement of Comprehensive Income.

144

Bellway p.l.c. Annual Report and Accounts 2022

Company

Note

Balance at 1 August 2020

Issued
capital

£m

15.4

Share
premium

£m

178.4

Capital
redemption
reserve
£m

20.0

Total comprehensive income
for the period

Profit for the period

Other comprehensive income

Total comprehensive income
for the period

Transactions with shareholders
recorded directly in equity:

Dividends on equity shares

Purchase of own shares

Shares issued

Credit in relation to share options

Total contributions by and
distributions to shareholders

–

1.4

–

1.4

–

Other
reserves

Retained
earnings

Total
equity

£m

523.0

185.5

–

185.5

(104.7)

(2.5)

1.4

2.6

£m

307.1

185.5

–

185.5

(104.7)

(2.5)

–

2.6

(104.6)

(103.2)

£m

2.1

–

Balance at 31 July 2021

15.4

179.8

20.0

2.1

388.0

605.3

Total comprehensive income for
the period

Profit for the period

Other comprehensive income

Total comprehensive income
for the period

Transactions with shareholders
recorded directly in equity:

Dividends on equity shares

Purchase of own shares

Shares issued

Credit in relation to share options

Total contributions by and
distributions to shareholders

–

2.2

–

2.2

–

159.9

–

159.9

(157.2)

(7.4)

–

3.1

159.9

–

159.9

(157.2)

(7.4)

2.2

3.1

A
c
c
o
u
n
t
s

(161.5)

(159.3)

Balance at 31 July 2022

15.4

182.0

20.0

2.1

386.4

605.9

Bellway p.l.c. Annual Report and Accounts 2022

145

Accounts

Balance Sheets
at 31 July 2022

ASSETS

Non-current assets

Property, plant and equipment

Investments in subsidiaries

Financial assets

Equity accounted joint arrangements

Deferred tax assets

Retirement benefit assets

Current assets

Inventories

Trade and other receivables

Cash and cash equivalents

Total assets

LIABILITIES

Non-current liabilities

Interest-bearing loans and borrowings

Trade and other payables

Deferred tax liabilities

Provisions

Current liabilities

Corporation tax payable

Trade and other payables

Provisions

Total liabilities

Net assets

EQUITY

Issued capital

Share premium

Capital redemption reserve

Other reserves

Retained earnings

Total equity

Note

Group
2022
£m

Group
2021
£m

Company
2022
£m

Company
2021
£m

34.2

–

20.9

9.3

0.1

7.1

71.6

4,423.6

114.6

375.3

4,913.5

4,985.1

130.0

106.6

8.9

400.8

646.3

0.1

930.2

40.7

971.0

1,617.3

3,367.8

15.4

182.0

20.0

1.5

3,148.9

3,367.8

35.7

–

39.6

15.7

0.9

10.2

102.1

4,032.2

82.2

460.3

4,574.7

4,676.8

130.0

89.7

8.2

89.0

316.9

4.0

1,041.1

27.0

1,072.1

1,389.0

3,287.8

15.4

179.8

20.0

1.5

3,071.1

3,287.8

–

43.5

–

40.4

–

43.5

40.4

–

509.7

52.8

562.5

606.0

–

512.3

52.8

565.1

605.5

–

0.1

–

0.1

–

0.2

–

0.2

605.9

605.3

15.4

182.0

20.0

2.1

386.4

605.9

15.4

179.8

20.0

2.1

388.0

605.3

Approved by the Board of Directors on 17 October 2022 and signed on its behalf by:

John Tutte
Director

Keith Adey
Director

Registered number 1372603

Parent Company Income Statement
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 £159.9 million (2021 – £185.5 million).

146

Bellway p.l.c. Annual Report and Accounts 2022

Cash Flow Statements
for the year ended 31 July 2022

Cash flows from operating activities

Profit for the year

Depreciation charge

Profit on sale of property, plant and equipment

Finance income

Finance expenses

Share-based payment expense

Share of post tax result of joint ventures

Income tax expense

Increase in inventories

(Increase)/decrease in trade and other receivables

(Decrease)/increase in trade and other payables

Increase in provisions

Cash from operations

Interest paid

Income tax paid

Net cash inflow from operating activities

Cash flows from investing activities

Acquisition of property, plant and equipment

Proceeds from sale of property, plant and equipment

Increase in loans to joint ventures

Repayment of loans by joint ventures

Dividends from joint ventures

Acquisition of joint operation

Interest received

Net cash inflow from investing activities

Cash flows from financing activities

Decrease in bank borrowings

Increase in fixed rate sterling USPP notes

Payment of lease liabilities

Proceeds from the issue of share capital on exercise of
share options

Purchase of own shares

Dividends paid

Net cash outflow from financing activities

Net (decrease)/increase in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

Note

Group
2022
£m

Group
2021
£m

Company
2022
£m

Company
2021
£m

242.6

390.7

159.9

185.5

6.1

–

(1.6)

15.7

3.1

(9.3)

61.6

(391.4)

(33.2)

(104.5)

325.5

114.6

(5.8)

(63.8)

45.0

(0.5)

0.1

(2.1)

21.6

15.7

–

0.5

35.3

–

(2.9)

2.2

(7.4)

(157.2)

(165.3)

(85.0)

460.3

375.3

6.5

(0.7)

(0.6)

11.7

2.6

(10.4)

88.3

(160.3)

(12.0)

158.1

45.7

519.6

(3.0)

(84.1)

432.5

(3.3)

1.5

(17.1)

33.0

–

(8.9)

0.4

5.6

(50.0)

130.0

(3.4)

1.4

(2.5)

(104.7)

(29.2)

408.9

51.4

460.3

–

2.6

(0.1)

–

162.4

–

(79.5)

(0.1)

–

105.9

–

162.4

105.9

–

A
c
c
o
u
n
t
s

2.2

(7.4)

(157.2)

(162.4)

–

52.8

1.4

(2.5)

(104.7)

(105.8)

0.1

52.7

52.8

Bellway p.l.c. Annual Report and Accounts 2022

147

Accounts

Accounting Policies

Basis of preparation

Bellway p.l.c. (the ‘Company’) is a company incorporated in England and Wales.

Basis of consolidation

The consolidated 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 consolidated 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 consolidated 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.

The parent company financial statements are prepared in accordance with International Accounting Standards in
conformity with the requirements of the Companies Act 2006. On publishing the Company financial statements here
together with the Group financial statements, which were approved for issue on 17 October 2022, 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.

In preparing the Group and 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, 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 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 26 to 29. The financial position
of the Group, its cash flows, liquidity position and borrowing facilities are described in the Group Finance Director’s
Review on pages 30 to 33 and the Directors’ Report on pages 126 to 129. The Risk Management section on pages
75 to 78 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 2022, Bellway had net cash of £245.3 million2 (note 15), having utilised cash of £85.0 million (note 15) during
the year, including £114.6 million of cash generated from operations.

The Group has operated within all its debt covenants throughout the year, and covenant compliance was
considered as part of the going concern assessment. In addition, the Group had bank facilities of £400.0 million at
31 July 2022, expiring in tranches up to December 2025. Furthermore, in February 2021 the Group entered into a
contractual arrangement to issue a 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 £530.0 million at 31 July 2022.

Including committed debt lines and cash, Bellway had access to total funds of £775.3 million, along with net current
assets (excluding cash) of £3,567.2 million at 31 July 2022, providing the Group with appropriate liquidity to meet its
current liabilities as they fall due.

148

Bellway p.l.c. Annual Report and Accounts 2022

Going concern continued

The Group’s internal forecasts have been regularly updated, incorporating our actual experience along with our
expected future outturn. 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. The sensitivity includes a recession
due to economic uncertainty and a deterioration in customer confidence. This could lead to a reduction in both the
total number of legal completions and private average selling price, with overheads, land spend and construction
spend reducing accordingly.

This sensitivity includes the following principal assumptions:

• Private completions in H1 FY23 are supported by the strong forward order book, but still fall to 84% of that achieved

in H1 of FY22. In the 12 months to 31 January 2024, 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.

• Private average selling price in H1 FY23 remains in line with internal forecasts due to the strong order book position.

In the 12 months to 31 January 2024, 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.

• Dividends reducing in line with earnings.

The sensitivity analysis was modelled over the period to 31 July 2024 for the going concern assessment, but
extended to the 31 July 2026 for the Directors’ viability assessment. 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.

In the 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 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 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 2024, 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.

A
c
c
o
u
n
t
s

Effect of new standards and interpretations effective for the first time
On 31 December 2020, IFRS as adopted by the European Union at that date was brought into UK law and became UK adopted
international accounting standards, with future changes being subject to endorsement by the UK Endorsement Board.
The Group transitioned to UK adopted international accounting standards in its consolidated financial statements on 1 August
2021, with this change constituting a change in accounting framework. There was no impact on recognition, measurement or
disclosure in the period reported as a result of the change in framework, or changes in accounting policies from the transition.

The Group adopted and applied the following amendments in the year, which are relevant to its operations, none of which had
a material impact on the financial statements:

• Interest Rate Benchmark Reform – Phase 2 – amendments to IFRS 9 ‘Financial Instruments’, IAS 39 ‘Financial Instruments:

Recognition and Measurement’, IFRS 7 ‘Financial Instruments: Disclosures’, IFRS 4 ‘Insurance Contracts’ and IFRS 16 ‘Leases’.

Standards and interpretations in issue but not yet effective
At the date of authorisation of these financial statements there were a number of standards and interpretations 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.

Bellway p.l.c. Annual Report and Accounts 2022

149

Accounts

Notes to the Financial Statements

Performance for the year
1. Revenue

Revenue recognition

Revenue is measured at the fair value of consideration received or receivable, net of incentives.

Private 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.

Social housing

The Group reviews social housing contracts on a contract by contract basis and determines the appropriate revenue
recognition based on the specific terms of each contract.

Where a contract with a housing association transfers both land and social housing on legal completion (“turnkey
and plot sale contracts” which typically represents around one third of social housing revenue), 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 with a housing association transfers legal title of land once foundations are in place (“design and
build” contracts’ which typically represents around two thirds of social housing revenue) and separately transfers
the social 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 social housing 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.

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 assess performance and
allocates resources at this level. All of the divisions have been aggregated into 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 north, south, private and social has
been included in the Group Finance Director’s Review on pages 30 to 33. 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.

150

Bellway p.l.c. Annual Report and Accounts 2022

1. Revenue continued
Revenue from contracts with customers
An analysis of the Group’s revenue is as follows:

Housing revenue

Non-housing revenue

Total revenue

The Group’s housing revenue can be analysed as follows:

(a) Private/social

Private

Social

Total housing revenue

(b) North/South

North

South

Total housing revenue

2022
£m

3,520.6

16.2

3,536.8

2022
£m

3,190.9

329.7

3,520.6

2022
£m

1,543.9

1,976.7

3,520.6

2021
£m

3,107.1

15.4

3,122.5

2021
£m

2,737.3

369.8

3,107.1

2021
£m

1,295.7

1,811.4

3,107.1

2. Net legacy building safety expense

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

While preparing these financial statements, 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 exceptional or not, the value of such items is not considered to be an area of judgement. 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.

A
c
c
o
u
n
t
s

For the years ended 31 July 2022 and 31 July 2021, the Directors considered that the net legacy building safety
expense satisfied the requirements to be separately disclosed on the face of the income statement.

Profit before taxation for the years ended 31 July 2022 and 31 July 2021 has been arrived at after recognising the following items
in the income statement:

Net legacy building safety expense (note 10) - cost of sales

Net legacy building safety expense (note 10, 16) – finance expenses

Total net legacy building safety expense

2022
£m

344.2

2.0

346.2

2021
£m

51.8

–

51.8

The income tax rate applied to the total net legacy building safety expense in the income statement is the Group’s standard rate
of corporation tax, 20.3% (2021 – 19.0%).

Bellway p.l.c. Annual Report and Accounts 2022

151

Accounts

Notes to the Financial Statements continued

2. Net legacy building safety expense continued
Bellway’s continued commitment to act responsibly with regards to fire safety is reflected by the level of our prudent provisions
and the actions the Group has taken since the tragic events at Grenfell in 2017. Government guidance and regulations in relation
to legacy building safety have evolved since 2017 and apartment blocks are now to be assessed in accordance with the Publicly
Available Specification (‘PAS’) 9980:2022, produced by the British Standards Institute.

In the first half of the year ended 31 July 2022 the Group set aside £19.6 million, net of recoveries, for legacy safety improvements,
bringing the total provided in the period between 2017 and up to 31 January 2022 to £186.8 million. These are in relation to
apartment buildings over 11 metres in height, which were generally built within our 10-to-12 year warranty period.

On 7 April 2022, as part of the Building Safety Pledge (the ‘Pledge’), we announced that this commitment would be extended
to a 30-year period to include buildings constructed by the Group since 5 April 1992 and to reimburse the Building Safety
Fund and the ACM Fund in accordance with the principles set out in the Pledge. The Group entered into this commitment
acknowledging that resident safety is of paramount importance and an additional £326.6 million, net of recoveries, was set aside
in the second half of financial year 2022.

In total, for the year ended 31 July 2022 Bellway set aside a net exceptional expense of £346.2 million, in relation to legacy
building safety improvements. The net charge comprises a gross expense of £347.0 million, less recoveries of £2.8 million, and
an adjusting finance expense of £2.0 million in relation to the unwinding of the discount of the provision to present value.

While the Pledge relates to developments in England-only, Bellway has taken a responsible, UK-wide approach to also provide
for works in relation to the small number of apartment buildings the Group has developed in Scotland and Wales, where
remediation is required. Taking this into consideration, the total amount Bellway has set aside for UK legacy building safety since
2017 is £513.7 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.

Although the application of the PAS is still under consideration by both the Group and the wider industry, the Board
nevertheless believes that the level of provision is robust. It has been calculated using cost estimates based on our extensive
experience to date, using analysis of previously tendered works and prudent, professional estimates based on knowledge of
known issues. In addition, on developments where full investigations have not yet been undertaken or cost reports obtained,
costs to date on similar developments have been used to estimate the likely cost. We have also made assumptions with regards
to the likely cost of resolving potential issues, that we have not yet been made aware of, on schemes covered by the extended
30-year period.

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 PAS, liaison and negotiations with building owners, and appointment
of contractors.

Notwithstanding these complexities the Group has made good progress with work now completed on 6 developments,
underway on 15 developments and works due to commence on a further 3 developments by the end of the calendar year.

Total recoveries recognised since 2017 are £30.0 million. Reimbursement assets of £nil (2021 – £0.5 million) remain outstanding at
the period end.

152

Bellway p.l.c. Annual Report and Accounts 2022

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 2.6%.

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/(crediting)

Staff costs (note 21)

Depreciation of property, plant and equipment (note 11)

Hire of plant and machinery

Profit on sale of property, plant and equipment

4c. Auditor’s remuneration

Audit of these financial statements

Amounts receivable by the auditor and its associates in respect of:

Audit of financial statements of subsidiaries pursuant to legislation

Pension scheme audit

2022
£m

193.1

6.1

17.1

–

2022
£000

370

A
c
c
o
u
n
t
s

2021
£m

184.4

6.5

15.2

(0.7)

2021
£000

333

Amounts paid to the Company’s auditor and their associates in respect of services to the Company, other than the audit of
the Company’s financial statements, have not been disclosed as the information is required instead to be disclosed on a
consolidated basis. The relevant amount paid to the auditor for the audit of financial statements of joint ventures is £0.020 million
(2021 – £0.015 million).

Bellway p.l.c. Annual Report and Accounts 2022

153

Accounts

Notes to the Financial Statements continued

5. Earnings per ordinary share
Basic earnings per ordinary share is calculated by dividing earnings by the weighted average number of ordinary shares in issue
during the year (excluding the weighted average number of ordinary shares held by the Trust which are treated as cancelled).

Diluted earnings per ordinary share uses the same earnings 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 earnings by the
diluted weighted average number of ordinary shares.

Reconciliations of the earnings and weighted average number of shares used in the calculations are outlined below:

Earnings

2022
£m

Weighted
average
number of
ordinary
shares
2022
No.

For basic earnings per ordinary share

242.6 123,227,544

Dilutive effect of options and awards

416,029

For diluted earnings per ordinary share

242.6 123,643,573

Taxation
6. Taxation

Taxation

Earnings
per share

Earnings

Weighted
average
number of
ordinary
shares
2021
No.

2021
£m

390.7

123,306,035

411,633

390.7

123,717,668

Earnings per
share

2021
p

316.9

(1.1)

315.8

2022
p

196.9

(0.7)

196.2

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 in which case it is recognised in other
comprehensive income.

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.

6a. Income tax recognised in the income statement

Current tax expense:

UK corporation tax

Residential property developer tax for the year

Adjustments in respect of prior years

Deferred tax expense:

Origination and reversal of temporary differences

Effect of introduction of residential property developer tax

Increase in tax rate

Adjustments in respect of prior years

Total income tax expense in income statement

154

Bellway p.l.c. Annual Report and Accounts 2022

2022
£m

56.8

3.5

(0.4)

59.9

0.8

–

0.1

1.7

61.6

2021
£m

89.8

–

(2.8)

87.0

0.1

–

1.1

0.1

1.3

88.3

6. Taxation continued

Reconciliation of effective tax rate:

Profit before taxation

Tax calculated at UK corporation tax rate

Non-taxable income and enhanced deductions

Remeasurement of deferred tax due to the increase in tax rate

Adjustments in respect of prior years – current tax

Effect of residential property developer tax – deferred tax

Effective tax rate and tax expense for the year

– deferred tax

2022
%

20.3

(0.2)

–

(0.1)

–

0.2

20.2

2022
£m

304.2

61.8

(0.7)

–

(0.4)

0.1

0.8

61.6

2021
%

19.0

(0.2)

0.2

(0.6)

–

18.4

2021
£m

479.0

91.0

(1.1)

1.1

(2.8)

0.1

–

88.3

The effective tax expense is 20.2% of profit before taxation (2021 – 18.4%).

The Finance Act 2022 received Royal Assent in February 2022 introducing a new residential property developer tax (‘RPDT’)
which was effective from 1 April 2022 and is chargeable at 4% of profits generated from residential property development in
excess of an annual threshold. RPDT was introduced by HM Treasury to obtain a contribution from the UK’s largest residential
property developers towards the cost of remediating defective cladding in the UK’s high-rise housing stock and is expected to
remain in force for up to ten years. RPDT will apply to the majority of the Group’s profits. Both the standard tax rate and effective
tax rate include RPDT.

It is expected that the Group’s standard rate of tax, including RPDT, for the year ending 31 July 2023 will be around 25%.

6b. Tax recognised in equity and other comprehensive income

Deferred tax recognised directly in equity and other comprehensive income:

Credit/(charge) relating to remeasurements on the defined benefit pension scheme

Charge relating to equity-settled transactions

6c. Deferred taxation

2022
£m

0.5

(0.3)

2021
£m

(2.2)

–

The following are the deferred tax assets/(liabilities) recognised by the Group and the movements thereon during the current
and prior year:

Group

At 1 August 2020

Arising on acquisition of joint operation

Income statement (charge)/credit

Charge to statement of comprehensive income

At 31 July 2021

Income statement charge

Credit to statement of comprehensive income

Charge to equity

At 31 July 2022

Capital
allowances
£m

Retirement
benefit assets
£m

Share-based
payments
£m

(0.5)

–

(0.6)

–

(1.1)

(0.5)

–

(1.6)

(0.3)

–

(0.1)

(2.2)

(2.6)

–

0.5

–

(2.1)

0.5

–

0.4

–

0.9

(0.5)

–

(0.3)

0.1

Inventory

£m

(1.8)

(1.7)

(1.0)

–

(4.5)

(0.7)

–

(5.2)

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Total

£m

(2.1)

(1.7)

(1.3)

(2.2)

(7.3)

(1.7)

0.5

(0.3)

(8.8)

Bellway p.l.c. Annual Report and Accounts 2022

155

Accounts

Notes to the Financial Statements continued

6. Taxation continued
The following is an analysis of the deferred tax balances for financial reporting purposes:

Share-based payments

Deferred tax assets

Capital allowances

Retirement benefit assets

Inventory

Deferred tax liabilities

Net deferred tax liability

2022
£m

0.1

(1.6)

(2.1)

(5.2)

(8.9)

(8.8)

2021
£m

0.9

(1.1)

(2.6)

(4.5)

(8.2)

(7.3)

The carrying amount of the deferred tax asset is reviewed at each balance sheet date and is 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 at the start of the current year have been revalued at the substantively
enacted corporation tax rate that will be effective when they are expected to be realised. The deferred tax assets/(liabilities) have
been revalued at 29% following the introduction of RPDT on 1 April 2022. The deferred tax assets/(liabilities) were previously
recognised at 25% to take into account the increase in the UK corporation tax rate from 1 April 2023 that was substantively
enacted in May 2021.

It is expected that the Group’s standard rate of tax, including RPDT, for the year ending 31 July 2023 will be around 25%.

There are no deferred tax balances in respect of the Company.

Working capital
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. Net realisable value represents the estimated selling price less all estimated costs of
completion and overheads.

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.

156

Bellway p.l.c. Annual Report and Accounts 2022

7. Inventories continued

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 2022 and 31 July 2021, 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.

Group

Land

Work-in-progress

Showhomes

Part-exchange properties

2022
£m

2,786.4

1,524.8

107.0

5.4

2021
£m

2,483.9

1,431.4

115.1

1.8

4,423.6

4,032.2

Inventories of £2,693.7 million were expensed in the year (2021 – £2,421.1 million).

In the ordinary course of business, inventories have been written off by a net £4.8 million in the year (2021 – £1.5 million).

Land with a carrying value of £295.6 million (2021 – £278.9 million) was used as security for land payables (note 9).

Land includes £1,812.3 million (2021 – £1,808.4 million) which is owned or unconditionally contracted by the Group and where
there is an implementable detailed planning permission.

During the current year, the Group acquired 100% of the share capital of a private limited company to access land interests of
£8.4 million. During the prior year, the Group acquired 100% of the share capital of two private limited companies to access
land interests of £19.8 million. These acquisitions did not satisfy the requirements of a business combination, therefore the land
relating to these amounts are included in ‘land’ in the above table.

The adoption of the Future Homes Standard in 2025, and the interim standard in 2023, is not considered to have a material
effect on the carrying value of inventories as at 31 July 2022.

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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.

The Company has no inventory.

Bellway p.l.c. Annual Report and Accounts 2022

157

Accounts

Notes to the 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.

The loss allowance for amounts owed by Group undertakings is equal to the 12-month expected credit losses
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.

Current receivables

Trade receivables

Other receivables

Amounts owed by Group undertakings

Prepayments and accrued income

Group
2022
£m

47.5

59.2

–

7.9

114.6

Group
2021
£m

17.0

58.1

–

7.1

82.2

Company
2022
£m

Company
2021
£m

–

509.7

–

509.7

–

512.3

–

512.3

The Group assesses the ageing of trade receivables in accordance with the policy on page 148. None of the trade receivables
are past their due dates (2021 – £nil), and are therefore all rated as low risk.

Other receivables includes £43.7 million (2021 – £38.6 million) in relation to VAT recoverable and £nil (2021 – £0.5 million) of
reimbursement assets (note 10).

Included within prepayments and accrued income are non-current prepayments of £0.5 million (2021 – £nil).

The Group has assessed expected credit losses and the loss allowance for trade and other receivables as immaterial.

The Company has assessed expected credit losses and the loss allowance for amounts owed by Group undertakings
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.

158

Bellway p.l.c. Annual Report and Accounts 2022

9. Trade and other payables continued

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.

Non-current liabilities

Land payables

Lease liabilities

Group
2022
£m

92.3

14.3

106.6

Group
2021
£m

75.4

14.3

89.7

Company
2022
£m

Company
2021
£m

–

Land payables of £60.8 million (2021 – £48.7 million) are secured on the land to which they relate.

The carrying value of the land used for security is £59.9 million (2021 – £48.1 million).

Current liabilities

Trade payables

Land payables

Social security and other taxes

Other payables

Lease liabilities

Accrued expenses

Payments on account

Group
2022
£m

284.0

301.1

7.2

9.2

2.9

147.6

178.2

930.2

Group
2021
£m

324.3

380.4

5.6

9.8

2.9

133.1

185.0

1,041.1

Company
2022
£m

Company
2021
£m

–

0.1

–

0.1

–

0.2

–

0.2

Land payables of £240.1 million (2021 – £234.4 million) are secured on the land to which they relate.

The carrying value of the land used for security is £235.7 million (2021 – £230.8 million).

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 the contract liabilities as at 31 July 2021 have been recognised as revenue in the current year. The approximate
transaction value allocated to the performance obligations that are unsatisfied at 31 July 2022 is £2,114.3 million2 (2021 – £2,022.3 million),
the majority of which is expected to be recognised as revenue during the next financial year.

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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.

Legacy building safety improvements

The Directors consider that their assessment and judgement of the legacy building safety improvements 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,
has 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 Bellway is the responsible person for the site or if the building was
constructed within a specified time period. 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 legacy building safety improvement provision and the provision could be extended should the latest
interpretation of Government guidance further evolve (note 24).

Bellway p.l.c. Annual Report and Accounts 2022

159

Accounts

Notes to the Financial Statements continued

10. Provisions and reimbursement assets continued

Legacy building safety improvements

The legacy building safety improvements 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 the improvement works are at an early or investigative stage on most affected
sites. These estimates may change over time as further information is assessed, building works progress and the
interpretation of the scope of the Pledge or fire safety regulations further evolve. If:

• cost estimates increase by 5%, the provision at 31 July 2022 would increase by around £22 million.
• the discount rate increases by 100 bps, the provision at 31 July 2022 would decrease by around £12 million.

Group

At 1 August 2021

Additions (note 2)

Released (note 2)

Utilised/(recovered)

Unwinding of discount (note 2)

At 31 July 2022

The provision is classified as follows:

Current

Non-current

Total

Legacy
building safety
improvements
provision
£m

(116.0)

(349.5)

2.5

23.5

(2.0)

(441.5)

Reimbursement
assets

Total

£m

0.5

2.8

–

(3.3)

–

£m

(115.5)

(346.7)

2.5

20.2

(2.0)

(441.5)

Legacy building
safety
improvements
provision
£m

(40.7)

(400.8)

(441.5)

The Group has established a provision for the cost of performing fire remedial works on a number of legacy developments
(note 2).

The Company has no provisions.

160

Bellway p.l.c. Annual Report and Accounts 2022

Investing activities
11. Property, plant and equipment

Property, plant and equipment

Items are stated at cost less accumulated depreciation and impairment losses. 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 10 years.

• Freehold buildings – 40 years.

Freehold land is not depreciated.

Right-of-use assets

The accounting policy for leases is included in note 9.

Group

Cost

At 1 August 2020

Additions

Disposals

At 1 August 2021

Additions

Disposals

At 31 July 2022

Depreciation

At 1 August 2020

Charge for year

On disposals

At 1 August 2021

Charge for year

On disposals

At 31 July 2022

Net book value

At 31 July 2022

At 31 July 2021

At 31 July 2020

The Company has no property, plant and equipment.

Land and
property

£m

17.5

0.3

(1.2)

16.6

0.3

–

16.9

3.0

0.4

(0.5)

2.9

0.4

–

3.3

13.6

13.7

14.5

Plant,
fixtures
and fittings
£m

18.1

3.0

(3.8)

17.3

1.9

(3.2)

16.0

11.8

2.6

(3.7)

10.7

2.4

(2.4)

10.7

5.3

6.6

6.3

Right-of-use
assets

£m

22.0

3.2

(1.5)

23.7

3.2

(1.7)

25.2

6.1

3.5

(1.3)

8.3

3.3

(1.7)

9.9

15.3

15.4

15.9

Total

£m

57.6

6.5

(6.5)

57.6

5.4

(4.9)

58.1

20.9

6.5

(5.5)

21.9

6.1

(4.1)

23.9

34.2

35.7

36.7

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161

Accounts

Notes to the Financial Statements continued

12. Financial assets and equity accounted joint arrangements, and investments in subsidiaries

Investments in subsidiaries

Interests in subsidiary undertakings are valued in the Company financial statements at cost less impairment.

The subsidiary undertakings and joint arrangements in which the Group has interests are incorporated in England and Wales.
In each case their principal activity is related to housebuilding. At 31 July 2022, the Group was made up of 23 subsidiaries and 7
joint arrangements. Further details are included in note 26.

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 Group and Company had the following investments or financial assets in subsidiaries and joint ventures at 31 July:

Subsidiary undertakings

Interest in subsidiary undertakings’ shares at cost

Financial assets and equity accounted joint arrangements

Financial assets – loan to joint ventures

Interest in joint ventures – equity

Group
2022
£m

–

20.9

9.3

30.2

Group
2021
£m

–

39.6

15.7

55.3

Company
2022
£m

43.5

Company
2021
£m

40.4

–

30.2

55.3

43.5

40.4

The movement on both the equity accounted joint ventures and related financial assets during the year is as follows:

At the start of the year

Increase in loans

Repayment of loans

Dividends received from equity accounted joint ventures

Share of result

At the end of the year

2022
£m

55.3

2.9

(21.6)

(15.7)

9.3

30.2

2021
£m

60.8

17.1

(33.0)

–

10.4

55.3

162

Bellway p.l.c. Annual Report and Accounts 2022

13. Joint arrangements
DFE TW Residential Limited, 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, Fradley Residential LLP, Lambeth Regeneration LLP and Bellway Latimer Cherry Hinton LLP are classified as
joint ventures as the Group has rights to the net assets of the arrangements rather than the individual assets and liabilities.

The Group’s share of the joint ventures’ net assets/(liabilities) and income/(expenses) are made up as follows:

Ponton
Road
LLP

Fradley
Residential
LLP

£m

4.7

(2.4)

–

£m

15.9

(1.8)

(5.4)

2022

Bellway
Latimer
Cherry
Hinton
LLP
£m

36.9

(26.6)

(12.0)

2.3

8.7

(1.7)

49.0

(40.2)

8.8

–

8.8

(15.7)

9.2

(7.2)

2.0

(0.1)

1.9

–

(1.4)

–

Current assets

Current liabilities

Non-current liabilities

Share of net assets/
(liabilities) of joint
ventures

Revenue

Costs

Operating profit

Interest

Share of result of
joint ventures

Share of dividends paid to
joint venture partners

£m

2.8

(2.8)

–

Other joint
ventures

Total

Ponton
Road
LLP

Fradley
Residential
LLP

£m

60.3

(33.6)

(17.4)

£m

36.6

(27.4)

–

£m

10.0

(2.5)

(0.7)

2021

Bellway
Latimer
Cherry
Hinton
LLP
£m

41.7

(23.2)

(18.8)

Other joint
ventures

Total

£m

1.9

(1.9)

–

£m

90.2

(55.0)

(19.5)

9.3

9.2

6.8

(0.3)

–

15.7

58.2

(47.4)

10.8

(1.5)

9.3

(15.7)

54.9

(45.7)

9.2

–

9.2

–

7.7

(6.1)

1.6

(0.1)

1.5

–

(0.3)

–

Guarantees relating to the overdrafts of the joint arrangements have been given by the Company (see note 24).

The Group has assessed expected credit losses and the loss allowance for joint venture financial assets as immaterial.

14. Commitments
Capital commitments

Group

Contracted not provided

Authorised not contracted

Company

The commitments of the Company were £nil (2021 – £nil).

2022
£m

–

1.5

62.6

(51.8)

10.8

(0.4)

10.4

–

2021
£m

0.5

–

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163

Accounts

Notes to the Financial Statements continued

Financing
15. Net cash

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 utilises 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.

2022
£m

(85.0)

–

(85.0)

330.3

245.3

2022
£m

–

52.8

Cash
flows
£m

(85.0)

–

(85.0)

Cash
flows
£m

–

2021
£m

408.9

50.0

(130.0)

328.9

1.4

330.3

2021
£m

0.1

52.7

52.8

At 31 July
2022
£m

375.3

(130.0)

245.3

At 31 July
2022
£m

52.8

At 1 August
2021
£m

460.3

(130.0)

330.3

At 1 August
2021
£m

52.8

15a. Reconciliation of net cash flow to net cash

Group

(Decrease)/increase in net cash and cash equivalents

Decrease in bank borrowings

Increase in fixed rate sterling USPP notes

(Decrease)/increase in net cash from cash flows

Net cash at 1 August

Net cash at 31 July

Company

Increase in net cash and cash equivalents

Increase in net cash from cash flows

Net cash at 1 August

Net cash at 31 July

15b. Analysis of net cash

Group

Cash and cash equivalents

Fixed rate sterling USPP notes

Net cash

Company

Cash and cash equivalents

Net cash

164

Bellway p.l.c. Annual Report and Accounts 2022

16. Finance income and expenses

Finance income and expenses

Finance income includes interest receivable on bank deposits.

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.

Interest receivable on bank deposits

Net interest on defined benefit asset

Other interest receivable

Finance income

Interest payable on bank loans and overdrafts

Interest payable on fixed rate sterling USPP notes

Interest on deferred term land payables

Unwinding of the discount on the legacy building safety provision

Interest payable on leases

Finance expenses

2022
£m

0.5

0.1

1.0

1.6

2022
£m

2.5

3.4

7.3

2.0

0.5

15.7

2021
£m

–

0.6

2021
£m

3.1

1.6

6.5

–

0.5

11.7

The unwinding of the discount on the legacy building safety provision is an adjusting item (note 2).

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:

At 31 July 2022

At 31 July 2021

Balance at
31 July
£m

Total contracted
cash payment
£m

Within 1 year or
on demand
£m

393.4

455.8

401.5

459.7

304.6

382.3

1–2
years
£m

72.2

67.0

2–5
years
£m

18.7

10.4

More than
5 years
£m

6.0

–

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Bellway p.l.c. Annual Report and Accounts 2022

165

Accounts

Notes to the Financial Statements continued

17. Financial instruments continued
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:

Trade and other payables (excluding
lease liabilities)

Fixed rate sterling USPP notes

Lease liabilities

At 31 July 2022

Trade and other payables (excluding
lease liabilities)

Fixed rate sterling USPP notes

Lease liabilities

At 31 July 2021

Balance at
31 July
£m

Total contracted
cash payment
£m

Within 1 year or
on demand
£m

293.2

130.0

17.2

440.4

334.1

130.0

17.2

481.3

153.2

18.9

465.3

3.4

3.3

299.9

334.1

156.6

19.1

509.8

3.4

340.9

1–2
years
£m

–

3.4

3.3

6.7

–

3.4

2.9

6.3

2–5
years
£m

–

10.3

7.1

17.4

–

10.3

7.2

17.5

More than
5 years
£m

–

136.1

5.2

141.3

–

139.5

5.6

145.1

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 million (2021 – £420.0 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 2022 and 31 July 2021 for both the Group and the
Company are shown in note 15.

At 31 July 2022 the average interest rate earned on the temporary closing cash balance, excluding joint ventures, was 0.43%
(2021 – 0.02%).

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 and the Company are as follows:

Loans and receivables

Cash and cash equivalents

Financial liabilities at amortised cost

Reconciliation of liabilities arising from financing activities

Group
2022
£m

127.6

375.3

(833.8)

(330.9)

Group
2021
£m

114.7

460.3

(937.1)

(362.1)

Company
2022
£m

Company
2021
£m

509.7

52.8

(0.1)

562.4

512.3

52.8

(0.2)

564.9

Group

Fixed rate sterling USPP notes

Lease liabilities

At 31 July 2022

Bank borrowings

Fixed rate sterling USPP notes

Lease liabilities

At 31 July 2021

At 1 August
£m

Net cash flows
£m

New leases
£m

Disposals
£m

Interest
£m

At 31 July
£m

130.0

17.2

147.2

50.0

–

17.1

67.1

(3.4)

(2.9)

(6.3)

(50.0)

130.0

(3.4)

76.6

–

3.2

–

3.2

–

(0.8)

–

(0.2)

3.4

0.5

3.9

–

0.5

130.0

17.2

147.2

–

130.0

17.2

147.2

Cash flows relating to interest are included within interest paid in cash flows from operating activities, within the cash
flow statement.

There were no liabilities arising from financing activities within the Company.

166

Bellway p.l.c. Annual Report and Accounts 2022

17. Financial instruments continued
Bank facilities

The Group had bank facilities of £400.0 million as at 31 July 2022 (2021 – £420.0 million) which expire during the course of the
following financial years:

By 31 July 2022

By 31 July 2023

By 31 July 2024

By 31 July 2025

By 31 July 2026

Group
2022
£m

–

50.0

245.0

30.0

75.0

400.0

Group
2021
£m

125.0

50.0

245.0

–

420.0

Company
2022
£m

Company
2021
£m

–

Fixed rate sterling USPP notes

During the prior year 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:

By 31 July 2028

By 31 July 2031

Capital management

Group
2022
£m

80.0

50.0

130.0

Group
2021
£m

80.0

50.0

130.0

Company
2022
£m

Company
2021
£m

–

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:

Equity

Net debt

Capital employed

Risks

Group
2022
£m

Group
2021
£m

3,367.8

3,287.8

–

3,367.8

3,287.8

Company
2022
£m

605.9

–

605.9

Company
2021
£m

605.3

–

605.3

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Details of the risks relating to financial instruments are set out in the Risk Management section on page 76.

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.

Bellway p.l.c. Annual Report and Accounts 2022

167

Accounts

Notes to the Financial Statements continued

18. Issued capital continued
Group and Company

Allotted, called up and fully paid 12.5p ordinary shares

At start of year

Issued on exercise of options

At end of year

2022
Number
000

123,396

123,486

2022

£m

15.4

–

15.4

2021
Number
000

123,346

123,396

2021

£m

15.4

–

15.4

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.

19. Reserves

Own shares held by ESOP trust

Transactions of the Company-sponsored ESOP trust are included in both the Group financial statements and the
Company’s own financial statements. 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 Group and Company holds shares within the Bellway Employee Share Trust (1992) (the ‘Trust’) for participants of certain
share-based payment schemes as outlined in note 23. The cost of these is charged to retained earnings. During the period
268,240 (2021 – 105,967) shares were purchased by the Trust and the Trust transferred 38,978 (2021 – 47,923) shares to employees
and Directors. The number of shares held within the Trust and on which dividends have been waived, at 31 July 2022 was
331,115 (2021 – 101,853). These shares are held within the financial statements at a cost of £8.9 million (2021 – £2.4 million).
The market value of these shares at 31 July 2022 was £8.1 million (2021 – £3.3 million).

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. This reserve is not distributable.

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.

Amounts recognised as distributions to equity holders in the year:

Final dividend for the year ended 31 July 2021 of 82.5p per share (2020 – 50.0p)

Interim dividend for the year ended 31 July 2022 of 45.0p per share (2021 – 35.0p per share)

Proposed final dividend for the year ended 31 July 2022 of 95.0p per share (2021 – 82.5p)

2022
£m

101.8

55.4

157.2

117.0

2021
£m

61.6

43.1

104.7

101.7

The 2022 proposed final dividend is subject to approval by shareholders at the Annual General Meeting on 16 December
2022 and, in accordance with IAS 10 ‘Events after the Reporting Period’, has not been included as a liability in these financial
statements. At the record date for the final dividend for the year ended 31 July 2021, shares were held by the Bellway Employee
Share Trust (1992) (the ‘Trust’) on which dividends had been waived (see note 19).

The level of distributable reserves are sufficient in comparison to the proposed dividend.

168

Bellway p.l.c. Annual Report and Accounts 2022

Directors and employees
21. Employee information
Group employment costs, including directors, comprised:

Wages and salaries

Social security

Pension costs (note 22)

Share-based payments (note 23)

2022
£m

167.0

16.2

6.8

3.1

193.1

2021
£m

159.9

15.9

6.0

2.6

184.4

The average number of persons employed by the Group during the year was 2,978 (2021 – 2,934) comprising 1,116 (2021 – 1,063)
administrative and 1,862 (2021 – 1,871) production and others employed in housebuilding and associated trading activities.

The Executive Directors and the Group General Counsel and Company Secretary are the only employees of the Company and
the emoluments of the Executive Directors are disclosed in the Report of the Board on Directors’ Remuneration on pages 106
to 118.

Key management personnel remuneration, including directors, comprised:

Salaries and fees

Taxable benefits

Annual cash bonus

Pension costs

Share-based payments

2022
£m

3.1

0.2

2.7

0.1

1.6

7.7

2021
£m

2.9

0.2

2.5

0.1

1.2

6.9

Key management personnel, as disclosed under IAS 24 ‘Related party disclosures’, comprises the Directors and other senior
operational management.

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.

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 £6.8 million (2021 – £6.0 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.

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Bellway p.l.c. Annual Report and Accounts 2022

169

Accounts

Notes to the Financial Statements continued

22. Retirement benefit asset continued
(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 2020 and updated on an approximate basis to 31 July 2022.

With regard to the Scheme, regular contributions made by the employer over the financial year were £nil (2021 – £nil).
The employer paid no special contributions (2021 – £nil) and reimbursed the pension fund £0.3 million (2021 – £0.4 million)
for expenses incurred by the fund.

The Group is expected to make no regular contributions during the year ending 31 July 2023.

(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 volatility

Inflation risk

The Scheme’s defined benefit obligation is calculated using a discount rate 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.

A significant proportion of the Scheme’s defined benefit obligation is linked 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 expectancy

The majority of the Scheme’s liabilities are to provide a pension for the life of 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.

Movements in net defined benefit assets

Defined benefit obligation

Fair value of Scheme assets

Net defined benefit asset

Balance at 1 August

Included in the income statement

Interest (expense)/income

Included in other comprehensive
income/(expense)

Remeasurement gain arising from:

– Change in demographic and

financial assumptions

– Experience adjustments

Return on plan assets excluding
interest income

Other

Contributions paid by the employer

Benefits paid

2022
£m

(63.6)

(1.1)

14.5

(0.6)

–

13.9

–

1.9

2021
£m

(66.6)

(1.1)

2.6

–

2.6

–

1.5

Balance at 31 July

(48.9)

(63.6)

170

Bellway p.l.c. Annual Report and Accounts 2022

2022
£m

73.8

1.2

–

(17.4)

0.3

(1.9)

(1.6)

56.0

2021
£m

67.9

1.1

–

5.9

0.4

(1.5)

(1.1)

73.8

2022
£m

10.2

0.1

14.5

(0.6)

(17.4)

(3.5)

0.3

–

0.3

7.1

2021
£m

1.3

–

2.6

–

5.9

8.5

0.4

–

0.4

10.2

22. Retirement benefit asset continued
The weighted average duration of the defined benefit obligation at the end of the reporting period is 14 years (2021 – 17 years).

Scheme assets

The fair value of the Scheme assets is:

Diversified growth fund

Equity instruments

Government bonds

Corporate bonds

Liability driven instruments

Insurance policies annuities

Cash and cash equivalents

Total

2022
£m

21.5

–

8.9

7.8

11.3

6.0

0.5

56.0

2021
£m

25.7

2.4

11.6

5.7

20.3

7.8

0.3

73.8

None of the assets have a quoted market price in an active market.

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:

Discount rate

Future salary increases

Allowance for pension in payment increases of RPI or 5% p.a. if less

Allowance for deferred pension increases of CPI or 3% p.a. if less

2022
% per annum

2021
% per annum

3.50

2.80

2.00

1.70

3.60

3.00

2.10

Allowance for commutation of pension for cash at retirement

15% of pension

The mortality assumptions adopted at 31 July 2022 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 2022

Female retiring in 2022

Male retiring in 2042

Female retiring in 2042

22.8 years

24.6 years

24.1 years

26.1 years

A
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The mortality assumptions adopted at 31 July 2021 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 2021

Female retiring in 2021

Male retiring in 2041

Female retiring in 2041

Sensitivities

22.7 years

24.5 years

24.0 years

26.0 years

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

Discount rate

Inflation – RPI

Mortality

Change in assumption

Change in liabilities (%)

+0.10% p.a.

Decrease by 1.3%

Increase by 1.1%

+1 year life expectancy

Increase by 3.5%

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 2022

171

Accounts

Notes to the 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.

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.

The Group operates a long-term incentive plan (‘LTIP’), a deferred bonus plans (‘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, the Group General Counsel and Company Secretary, and
senior employees, with awards under the DBP also made to senior employees. The awards take the form of ordinary shares in
the Company.

The Bellway p.l.c. (2014) Employee Share Option Scheme (‘2014 ESOS’) is an approved discretionary scheme which provides
for the grant of options over ordinary shares to employees and Executive Directors. It is, however, the current intention that no
Executive Directors of the Company should be granted options under this scheme. Awards will be available to vest after three
years, subject to objective performance targets. As at 31 July 2022 no options had been granted under this scheme.

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
page 115 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

Outstanding at the beginning of the year

Granted during the year

Lapsed during the year

Exercised during the year

Outstanding at the end of the year

Exercisable at the end of the year

2022
Weighted
average
exercise price
p

–

2022
Number of
options

No.

316,427

121,569

(69,742)

(38,975)

329,279

451

2021
Weighted
average
exercise price
p

–

2021
Number of
options

No.

269,690

123,822

(29,162)

(47,923)

316,427

7,120

The options outstanding at 31 July 2022 have a weighted average contractual life of 1.4 years (2021 – 1.3 years). The weighted
average share price at the date of exercise for share options exercised during the year was 3,148.4p (2021 – 2,931.5p).

172

Bellway p.l.c. Annual Report and Accounts 2022

23. Share based payments continued
SRSOS

Outstanding at the beginning of the year

Granted during the year

Forfeited during the year

Exercised during the year

Outstanding at the end of the year

2022
Weighted
average
exercise price
p

2,404.8

2,535.0

2,450.3

2,357.3

2,445.4

2022
Number of
options

No.

525,421

158,154

(151,655)

(89,838)

442,082

2021
Weighted
average
exercise price
p

2,519.7

2,333.0

2,504.0

2,690.7

2,404.8

2021
Number of
options

No.

438,360

289,517

(151,525)

(50,931)

525,421

Exercisable at the end of the year

2,185.5

2,522

2,934.4

14,252

The options outstanding at 31 July 2022 have an exercise price in the range of 1,892.8p to 2,934.4p (2021 – 1,892.8p to 2,934.4p)
and have a weighted average contractual life of 2.4 years (2021 – 2.5 years). The weighted average share price at the date of
exercise for share options exercised during the year was 2,825.1p (2021 – 3,291.5p).

Valuation methodology

For LTIP options granted prior to October 2021, half of the performance criteria is based on TSR against comparator companies
with the other half based on TSR measured against the FTSE 250 Index (excluding investment trusts and financial service
companies). For LTIP options granted from October 2021, one third of the performance criteria is based on the achievement of
a level of EPS, one third of the performance criteria is based on TSR against comparator companies with the other third based
on TSR measured against the FTSE 250 Index (excluding investment trusts and financial service companies). A simplified Monte
Carlo simulation method has been used to determine the Group’s TSR performance against the FTSE 250 Index (excluding
investment trusts and financial service companies). In the case of the DBP, 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. As dividends are not reinvested, the
fair value of these awards is equal to the share price at the date of the grant. The Black Scholes method is used for the SRSOS
due to the relatively short exercise window of six months.

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:

2022

2021

October
2021

November
2021

December
2021

October
2020

November
2020

December
2020

LTIP

DBP

3 year
SRSOS

5 year
SRSOS

LTIP

DBP

3 Year
SRSOS

5 Year
SRSOS

26-Oct-
21

11-Nov-
21

02-Dec-
21

27-Oct-
20

10-Nov-
20

04-Dec-
20

0.0%

0.5%

0.6%

0.0%

0.05%

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–

– 2,535.0p 2,535.0p

–

– 2,333.0p 2,333.0p

3,319.0p 3,220.0p 3,220.0p 3,220.0p

3,130.0p 3,130.0p 2,317.0p 2,902.0p 2,902.0p 2,980.0p 2,980.0p

0.0%

5.0%

Scheme
description

Grant date

Risk free
interest rate

Exercise price

Share price at
date of grant

Expected
dividend yield

Expected life

3 years

3 years 4 years

3 years
2 months

5 years 2
months

3 years

3 years
2 months

5 years
2 months

26-Oct-
24

11-Nov-
24

11-Nov-
25

01-Feb-25

01-Feb-
27

27-Oct-
23

10-Nov-
23

01-Feb-
24

01-Feb-
26

35%

30%

35%

2,124.3p 1,867.0p 2,474.0p 2,350.0p

734.0p

638.0p

796.0p 1,041.0p 2,230.0p

715.0p

710.0p

Vesting date

Expected
volatility

Fair value
of option

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 total expenses of £3.1 million (2021 – £2.6 million) in relation to equity-settled share-based
payment transactions.

Bellway p.l.c. Annual Report and Accounts 2022

173

Accounts

Notes to the 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.

Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies
within the Group, the Company considers these to be insurance arrangements and accounts for them as such.
In this respect, the Company treats the guarantee contract as a contingent liability until such time as it becomes
probable that the Company will be required to make a payment under the guarantee.

Legacy building safety improvements

We continue to take a proactive approach to nationwide concerns with regards to fire safety in high-rise buildings across the
UK. Bellway recognises its responsibilities in its legacy apartment portfolio and continues to review combustion risks, in external
wall systems, on past high-rise developments.

As detailed in note 2, Bellway has identified a number of developments, which obtained building regulation approval at the time
of construction, where the building materials used may not fully comply with the most recent government guidance or where
remedial works may need to be performed in line with the Pledge. For these developments we have established that the cost
of the remedial works satisfies the accounting requirements of a provision at the balance sheet date. While a prudent approach
has been taken, the extent of the provision could increase or reduce, in line with normal accounting practice if new issues are
identified or if estimates change, as Bellway and building owners continue to undertake their own investigative works on these
and other schemes within the legacy portfolio. Furthermore, the finer details of the government contract underlying the Pledge
are to be agreed with the sector as a whole, and the scope could change until this is finally agreed.

Relating to subsidiaries

The Company is liable, jointly and severally with other members of the Group, under guarantees given to the Group’s bankers
in respect of overdrawn balances on certain Group bank accounts and in respect of other overdrafts, loans and guarantees
given by the banks to or on behalf of other Group undertakings. At 31 July 2022 there were bank overdrafts of £7.6 million (2021
– £7.5 million). Furthermore, the Company is jointly and severally liable with Bellway Homes Limited in relation to the fixed rate
sterling USPP notes of £130.0 million (2021 – £130.0 million). It is the Directors’ expectation that the possibility of cash outflow on
these liabilities is considered minimal and no provision is required.

Relating to joint arrangements

The Company has guaranteed the overdrafts of joint arrangements up to a maximum of £0.3 million (2021 – £0.3 million). It is the
Directors’ expectation that the possibility of cash outflow on these liabilities is considered minimal and no provision is required.

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 page 112.

Transactions between fellow subsidiaries, which are related parties, have been eliminated on consolidation and are
not disclosed.

Group

During the year the Group entered into the following related party transactions with its joint arrangements:

Invoiced to joint arrangements in respect of accounting, management fees, interest on loans,
land purchases and infrastructure works

Amounts owed to joint arrangements in respect of land purchases and management fees at the
year end

Amounts owed by joint arrangements in respect of accounting, management fees, interest, land
purchases and infrastructure works

2022
£m

31.6

(4.5)

27.0

2021
£m

23.5

(4.5)

49.4

174

Bellway p.l.c. Annual Report and Accounts 2022

25. Related party transactions continued
Company

During the year the Company entered into the following related party transactions with its subsidiaries and joint arrangements:

Amounts received in the year from subsidiaries for share options exercised by subsidiary company
employees and dividends received

Amounts paid in the year by subsidiaries on behalf of the Company in respect of dividends,
finance expenses and share purchases, and receivable from subsidiaries on disposal of investments

Amounts owed by subsidiaries in respect of dividends and shares issued net of amounts paid on
behalf of the Company

Investments in subsidiaries and joint ventures

2022
£m

162.1

2021
£m

186.7

(164.7)

(107.2)

509.7

43.5

512.3

40.4

26. Group undertakings
The Directors set out below information relating to the Group undertakings (excluding resident management companies
presented in note 27) as at 31 July 2022. 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).

Subsidiaries – trading

Bellway Homes Limited

Bellway Housing Trust Limited

Bellway Properties Limited

Bellway (Services) Limited

Litrose Investments Limited
Southern and Regional Developments Limited ^^
Joint arrangements
Cramlington Developments Limited (50% owned, year end of 30 June) ^^ a
Fradley Residential LLP (50% owned) ^^
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) ^^
DFE TW Residential Limited (50% owned) ^^ c
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

Other entities
HBF Insurance PCC Limited b
MI New Home Insurance PCC Limited b
Artex Insurance (Guernsey) PCC Limited d

Notes:
^ Dormant
^^ These shares are held indirectly.

a Registered address is Persimmon House, Fulford, York, YO19 4FE
b Registered address is PO Box 155, Mill Court, La Charroterie, St Peter Port, Guernsey, GY1 4ET
c Registered address is 5 Temple Square, Temple Street, Liverpool, L2 5RH
d Registered address is PO Box 230, Heritage Hall, Le Marchant Street, St Peter Port, Guernsey, GY1 4JH

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J. T. B. Estates Limited

John T. Bell & Sons (1976) Limited

Nixons Kitchens Limited

Seaton GR SPV 12 Limited

Seaton GR SPV 13 Limited

Seaton GR SPV 14 Limited

Seaton Thirteen Limited

Seaton Eleven Limited

Bellway p.l.c. Annual Report and Accounts 2022

175

Accounts

Notes to the Financial Statements continued

27. 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 2022.

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.

Company Name

Registered Office

1811 (Tonbridge) Management Company Limited

Gateway House, 10 Coopers Way, Southend-On-Sea, Essex, SS2 5TE

27 The Vale Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Abbey Heights Residents Management Company Limited

Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER

Abbotswood Park Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

Amen Corner (Binfield) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

Apsley Quay Management Company Limited

3rd Floor, 86–90 Paul Street, London, United Kingdom, EC2A 4NE

Area F1 (Kings Hill) Management Company Limited

Gateway House, 10 Coopers Way, Southend-On-Sea, Essex, SS2 5TE

Arrowe Brook Park (Greasby) Residents Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL

Aspects Management Company Limited

100 Avebury Boulevard, Milton Keynes, MK9 1FH*/**

Aspen Apartments (Colchester) Management Company Limited

Queensway House, 11 Queensway, New Milton, Hampshire, United Kingdom, BH25 5NR

Aspen Walk (Eight Ash Green) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Astley Fields Management Company Limited

1 Centurion Court, Centurion Way, Wilnecote, Tamworth, Staffordshire, United Kingdom,
B77 5PN

Avondale (Cressing) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Awel Y Mor Management Company Limited

11 Little Park Farm Road, Fareham, Hampshire, PO15 5SN

Azalea (Medstead) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, HP2 7DN

Badbury Reach Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, HP2 7DN

Barley Fields (Tamworth) Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Barleycorn Way Residents Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, CW6 9DL

Bartley Square Management Company Limited

3rd Floor 86–90 Paul Street, London, England, EC2A 4NE

Barton Manor (Barton) Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Bassingbourn Fields Management Company Limited

Elstree Way, Borehamwood, England, WD6 1JH

Baswich Grange Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY

Battalion Court Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, United
Kingdom, SS11 8YB

Beckton Parkside Management Company Limited

8th Floor Holborn Tower, 137-144 High Holborn, London, England, WC1V 6PL

Beechcroft (Sunninghill) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY

Belmont Park (Maidenhead) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY

Bentall Place (Heybridge) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Bicknor Wood Ltd

Woodland Place, Hurricane Way, Wickford, Essex, England, SS11 8YB

Blackthorn Meadows Residents Management Company Limited

298 Regents Park Road, London, N3 2UU

Bluebell Walk (Harrietsham) Management Company Limited

10 Coopers Way, Temple Farm Industrial Estate, Southend-On-Sea, England, SS2 5TE

Bluebells (Witham) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

Bluecoats Management Company Limited

North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, SY1 3BF

Bluenote Apartments Management Company Limited

395 Centennial Park Centennial Avenue, Elstree, Borehamwood, England, WD6 3TJ

Bourne View (Ipswich) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

Bower Place Management Company Limited

Marlborough House, 298 Regents Park Road, London, N3 2UU

Bowood View (Melksham) Management Company Limited

1st Floor, 2540 The Quadrant Aztec West, Almondsbury, Bristol, England, BS32 4AQ

Brambleside Management Company Limited

Brampton Gate Management Company Limited

5 Caldecotte Lake Business Park, Caldecotte Lake Dri, Caldecotte, Milton Keynes,
Buckinghamshire, England, MK7 8LE

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom,
NG1 6HH

Bramshall Green Management Company Limited

Whittingham Hall, Whittington Road, Whittington, Worcester, WR5 2ZX

Bridleway Grange Residents Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, United Kingdom, SP2 7QY

Broadleaf Ashby Management Company Limited

100 Avebury Boulevard, Milton Keynes, MK9 1FH

Broadleaf Management Company Limited

Brookvale Management Company Limited

100 Avebury Boulevard, Milton Keynes, MK9 1FH

Trinity Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom,
HP2 7DN

176

Bellway p.l.c. Annual Report and Accounts 2022

27. Resident management companies continued
Company Name

Registered Office

Buckland Rise (Peters Village) Management Company Ltd

Woodland Place, Hurricane Way, Wickford, United Kingdom, SS11 8YB

Buckthorn Grange Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, SS11 8YB

Burdon Rise Residents Management Company Limited

Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER

Byron Heights Residents Management Company Limited

Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER

Castlegate (Skelton) Management Company Limited

Alexander House 1 Mandarin Road, Houghton Le Spring, Sunderland, United Kingdom,
DH4 5RA

Cathedral Park (Chichester) Management Company Limited

Fisherton House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY

Cecilly Mills Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Chailey Gardens Management Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Chalfont Drive Residents Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

Chamberlains Bridge Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Charlton Hayes Management Company Limited

Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR

Charters Hill Residents Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Cherry Meadow and Hatton Court Management Company Limited

2nd Floor, 154–155 Great Charles Street, Queensway, Birmingham, England, B3 3LP

Cherry Orchard (Bevere) Management Company Limited

Chestnut Grove (Ash Green) Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom,
NG1 6HH

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, United
Kingdom, SS11 8YB

Chestnut Vale Residents Management Company Limited

Marlborough House, 298 Regents Park Road, London, N3 2UU

Copperfields Resident Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, United Kingdom, SP2 7QY

Copperhouse Green Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, United
Kingdom, SS11 8YB

Copperhouse Green Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, SS11 8YB

Copthorne Keep Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Cornelia Gardens Management Limited

Cornfield’s Residents Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom,
HP2 7DN

Romulus Court Meridian East, Meridian Business Park, Leicester, Leicestershire, United
Kingdom, LE19 1YG

Cortlands Management Company Limited

Elstree Way, Borehamwood, England, WD6 1JH

Cotswold Chase Management Company (Gloucester) Limited

Alexander Faulkner Partnerships , 2nd Floor, 154–155 Great Charles Street Queensway,
Birmingham, England, B3 3LP

Cotswold Gate (Chipping Norton) Management Company Limited

Marlborough House, 298 Regents Park Road, London, N3 2UU

Cotton Woods (Preston) Residents Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL

Crown Fields (Chatham) Management Company Limited

Gateway House, 10 Coopers Way, Southend-On-Sea, SS2 5TE

Curzon Park (Residents) Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

Cuttle Brook Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

Dacres Wood Court Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex,
United Kingdom, SS11 8YB

Dalesway (Harrogate) Management Company Limited

Rmg House, Essex Road, Hoddesdon, Hertfordshire, United Kingdom, EN11 0DR

Devonshire Place (Grays) Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Dickens Gate (Rudloe) Management Company Limited

11 Little Park Farm Road, Fareham, England, PO15 5SN

Dickens Manor Management Company Limited

Digby Court (Birmingham) Management Company Limited

Dove Manor Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom,
NG1 6HH

Dunton Fields (Laindon) Management Company Limited

8 Hemmells, Basildon, Essex, England, SS15 6ED

Earlsfield Park (Knowsley) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

East Middle Callerton Residents Management Company Limited

Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER

Eastbrook Village East Phase 1 (Site H) Management Company Limited

8th Floor Holborn Tower, 137–144 High Holborn, London, United Kingdom, WC1V 6PL

Eastside Quarter Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Ebbsfleet Cross (Phase 2) Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Ebbsfleet Cross Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Elements Residents Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

Elmington Parcel 1 Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Elmington Parcel 2 Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Elmington Parcel 3 Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Essendene Residential Management Company Limited

Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER**

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Bellway p.l.c. Annual Report and Accounts 2022

177

Accounts

Notes to the Financial Statements continued

27. Resident management companies continued
Company Name

Registered Office

Estone Grange Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY

Eve Meadows (Haughley) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY

Fairfields (Calcot) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Farriers Court Residents Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Fellows Gardens Management Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Fielders Crescent Management Company Limited

Pinnacle Housing Ltd, 8th Floor Holborn Tower, 137–144 High Holborn, London, England,
WC1V 6PL

Fielders Crescent Phase 3 (209A) Management Company Limited

8th Floor Holborn Tower, 137–144 High Holborn, London, England, WC1V 6PL

Fifers Lane (Orchard Place) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Finchale Drive Residents Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, CW6 9DL

Forest Chase Management Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN

Forest Oak Management Company Limited

Faulker & Company, 1a, George Street, Hinckley, Leicestershire, England, LE10 0AL

Four Oaks (Oxted) Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, United
Kingdom, SS11 8YB

Foxhill (Brackley) Management Company Limited

Marlborough House, 298 Regents Park Road, London, N3 2UU

Foxlow Grange Berryfields Management Company Limited

Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR

Frobisher Court (Finningley) Management Limited

Furlong Park Residents Management Company Limited

North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, United Kingdom,
SY1 3BF

Fusion (Harlow) Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Goodsyard (No 1) Management Company Limited

11 Little Park Farm Road, Fareham, Hampshire, UK, PO15 5SN

Grammar School Gardens Management Company Limited

North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England,
SY1 3BF

Greensands Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Grey Gables Farm Residents Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

Greystone Meadows (Undy) Management Company Limited

7 Portal Business Park, Eaton Lane, Tarporley, England, CW6 9DL

Grove Meadows Management Company Limited

Marlborough House, 298 Regents Park Road, London, N3 2UU

Hall Road (Rochford) Management Company Limited

Halyards Residents Limited

First Floor, Unit 1, Elstree Gate, Elstree Way, Borehamwood, Hertfordshire, United
Kingdom, WD6 1JD

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom,
HP2 7DN

Hampden Gardens (Thame) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Hampton Trove Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom,
NG1 6HH

Hanwell View Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN

Hardintone Court Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Harnham Park Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN

Hartshorne Residents Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Harvard Place (Earls Colne) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Hatfield Grove (Hatfield Peveral) Management Company Limited

Unit 1, Elstree Gate, Elstree Way, Borehamwood, Hertfordshire, United Kingdom, WD6 1JD

Hathaway Gardens PH2 Residents Management Company Limited

100 Avebury Boulevard, Milton Keynes, MK9 1FH

Hawksview (Hawkhurst) Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, SS11 8YB

Hawthorne Rise Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN

Hazel Fold Residents Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, United Kingdom, SP2 7QY

Hazlemere Marina (Waltham Abbey) Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, United
Kingdom, SS11 8YB

Heatherley Wood Residents Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

Heathlands RMC Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Helios Park Management Company Limited

Imperium, Imperial Way, Reading, Berkshire, England, RG2 0TD

Helliers Lane (Cheddar) Management Company Limited

1st Floor 2540 The Quadrant Aztec West, Almondsbury, Bristol, United Kingdom,
BS32 4AQ

Hellingly (Hailsham) Management Company Limited

Woodland Place, Hurricane Way, Wickford, Essex, England, SS11 8YB

Henderson Park (Thorpe le Soken) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Hertsmere Mews (Borehamwood) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

High Point Residents Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY

Hinxhill Park (Ashford) Management Company Limited

Woodland Place, Hurricane Way, Wickford, Essex, United Kingdom, SS11 8YB

Hollytree Walk (Colchester) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Holmwood Residents Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, England, HP2 7DN

Honeytree Walk (Colchester) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

178

Bellway p.l.c. Annual Report and Accounts 2022

27. Resident management companies continued
Company Name

Registered Office

Huntercombe Walk (Taplow) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY

Ikon (Croydon) Management Company Limited

86–90 Paul Street, London, United Kingdom, EC2A 4NE

Imperial Gardens (Howden) Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, CW6 9DL

Imperial Park (Maidstone) Management Company Limited

Gateway House, 10 Coopers Way, Southend-On-Sea, Essex, SS2 5TE

Jameson Manor Residents Management Company Limited

Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER

Jellicoe Gardens (Moreton) Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL

Jubilee Park Residents Management Company Limited

North Port Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, SY1 3BF

Keephatch Chase Management Limited

Pacific House, Imperial Way, Reading, Berkshire, RG2 0TD

Keephatch Gardens (Wokingham) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Kenavon Drive (Reading) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Kent Wharf Management Company Limited

Concierge Office Kent Wharf, Creekside, London, SE8 3GP

Kingfisher Green (Rainham) Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Kingsland Gate Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, SS11 8YB

Kingsreach (Slough) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

Kingswood (High Wycombe) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

Kingswood Heath (Colchester) Management Company Limited

Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR

Ladden Garden Village PL 24–27 (Leasehold Apartments) Management
Company Limited

1st Floor 2540 The Quadrant, Aztec West, Almondsbury, Bristol, United Kingdom,
BS32 4AQ

Lakeside Park Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, England, NG1 6HH

Lancaster House Residents Management Company Limited

RMG House, Essex Road, Hoddesdon, Hertfordshire, EN11 0DR

Langford Park Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Latitude Residents Limited

Latitude Residents No 3 Limited

Latitude Residents No 5 Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

New Kings Court, Tollgate, Chandlers Ford, SO53 3LG

Legacy Wharf (Phase 2) Management Company Limited

Woodland Place, Hurricane Way, Wickford, England, SS11 8YB

Legacy Wharf Management Company Limited

Woodland Place, Hurricane Way, Wickford, England, SS11 8YB

Lestone Mews Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom,
NG1 6HH

Liberty Quarter Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY

Limehouse Basin (London) Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Linkside (Burton) Management Company Limited

Unit 7, Astra Centre, Edinburgh Way, Harlow, Essex, United Kingdom, CM20 2BN

Linmere Gateway Management Company Limited

Linmere Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom,
NG1 6HH

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Lion Wharf (Isleworth) Management Company Limited

395 Centennial Park, Centennial Avenue, Elstree, Borehamwood, England, WD6 3TJ

Little Acres Residents Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, England, SP2 7QY

Little Meadows (Cranleigh) Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, United
Kingdom, SS11 8YB

Littlebrook (Cutbush Lane) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Lockharts RMC Limited

Unit 7 Astra Centre, Harlow, Essex, England, CM20 2BN

Long Acre (Shinfield) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Longfield Place (Sherfield) Management Company Limited

Longholme Park Residents Management Company Limited

Longwood Copse Residents Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom,
HP2 7DN

North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, United
Kingdom, SY2 6LG

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom,
HP2 7DN

Lucas Green Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Lyde Green Management Company Limited

2540 The Quadrant Bellway Homes, Aztec West, Almondsbury, Bristol, England,
BS32 4AQ

Lysander Fields Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Maes Y Rhedyn Fern Meadow Residents Management Company Limited Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL*

Mallard Walk Management Company Limited

2nd Floor, 154 Great Charles Street Queensway, Birmingham, England, B3 3HN

Malvern Chase (Tewkesbury) Management Company Limited

2540 The Quadrant, Aztec West, Bristol, BS32 4AQ

Manor Chase (Gloucester Road) Tutshill Management Company Limited

2nd Floor, 154–155 Great Charles Street Queensway, Birmingham, England, B3 3LP

Maple Creek Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Marconi (Chelmsford) Management Company Limited

8th Floor Holborn Tower, 137–144 High Holborn, London, England, WC1V 6PL

Bellway p.l.c. Annual Report and Accounts 2022

179

Accounts

Notes to the Financial Statements continued

27. Resident management companies continued
Company Name

Registered Office

Marlborough Road Wroughton (Swindon) Management Company Ltd

1st Floor, 2540 The Quadrant Aztec West, Almondsbury, Bristol, United Kingdom,
BS32 4AQ

Maybrey Works Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Mead Fields (Phase 2) Weston Parklands Management Company Limited

1st Floor, 2540 The Quadrant Aztec West, Almondsbury, Bristol, United Kingdom,
BS32 4AQ

Mead Fields Phase 2 (Leasehold Apartments) Management
Company Limited

1st Floor, 2540 The Quadrant Aztec West, Almondsbury, Bristol, United Kingdom,
BS32 4AQ

Meadow Rise (Heighington) Management Company Limited

Cheviot House, Beaminster Way East, Newcastle – Upon- Tyne, NE3 2ER

Meadow View (Romsey) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY

Merchants Gate Cottingham Limited

North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England,
SY1 3BF

Mill Fields (Wingerworth) Management Company Limited

Unit 7, Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL

Milldown Residents Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom,
HP2 7DN

Millstone Park Residents Management Company Limited

Unit 7, Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL

Montague Green (Rowland’s Castle) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom,
HP2 7DN

Mousley Park Hilton Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

Mulberry Park Apartments (Management Company) Limited

2540 The Quadrant Aztec West, Almondsbury, Bristol, BS32 4AQ

New Cardington Estate Management Company Limited

Rmg House, Essex Road, Hoddesdon, EN11 0DR

New Cardington Hangars Block Residents Management Company Limited Marlborough House, 298 Regents Park Road, London, N3 2UU

Nightingale Rise (Hoo) Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Northdene Residents Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL

Novello Management Company Limited

First Floor, Unit 1, Elstree Gate, Elstree Way, Borehamwood, Hertfordshire, United
Kingdom, WD6 1JD

Oak Hill Park (Chinnor) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Oakes Park (Dartford) Management Company Limited

The Base, Dartford Business Park, Victoria Road, Dartford, England, DA1 5FS

Oakley Park (Edenbridge) Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Old Forest Road (Winnersh) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Old School Gardens Residents Management Company Limited

Cheviot House, Beaminster Way East, Newcastle – Upon- Tyne, NE3 2ER

Oxlease Residents Limited

P.R.P. Management Company Limited

New Kings Court Tollgate, Chandler’s Ford, Eastleigh, Hampshire, England, SO53 3LG

North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England,
SY1 3BF

Park Gate Village Residents Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, England, CW6 9DL

Pasture Walk Management Company Limited

Castleman Business Centre, Embankment Way, Ringwood, England, BH24 1EU

Penmire Rise Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Phase 1A Parc Mawr (Penllergaer) Management Company Limited

Building 1 Eastern Business Park, St Mellons, Cardiff, United Kingdom, CF3 5EA

Pinchbeck Fields (EC) Residents Management Company Limited

2nd Floor, Premier House, Elstree Way, Borehamwood, WD6 1JH

Pine Walk Guisborough Management Company Limited

Pinewood Grange (Stowmarket) Management Company Limited

Pipits Residents Limited

North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England,
SY1 3BF

2nd, Premier House, Elstree Way, Borehamwood, Hertfordshire, United Kingdom, WD6
1JH

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom,
HP2 7DN

Pirton Fields (Churchdown) Management Company Limited

Building 1 Eastern Business Park, St Mellons, Cardiff, United Kingdom, CF3 5EA

Platts Meadow (Winsford) Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL

Plummers Meadow (Halewood) Residents Management Company Limited Unit 7 Portal Business Park, Tarporley, England, CW9 6DL

Poppy Field Residents Management Company Limited

North Point Stafford Drive Battlefield Enterprise, Shrewsbury, Shropshire, England,
SY2 6LG

Poppy Fields (Cholsey) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Poppy View (Saffron Walden) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Portland Gardens (Wouldham) Management Company Limited

Gateway House, 10 Coopers Way, Southend-On-Sea, Essex, SS2 5TE

Priory Grange (Hatfield Peverel) Management Company Limited

First Floor, Unit 1, Elstree Gate, Elstree Way, Borehamwood, Hertfordshire, United
Kingdom, WD6 1JD

QE2 (Welwyn Garden City) Management Company Limited

3rd Floor, 86–90 Paul Street, London, United Kingdom, EC2A 4NE

Quakers Walk (Devizes) Management Company Limited

1st Floor 2540 The Quadrant, Aztec West, Bristol, United Kingdom, BS32 4AQ

Quantock Heights (Banwell) Management Company Limited

1st Floor 2540 The Quadrant, Aztec West, Bristol, United Kingdom, BS32 4AQ

Queenshead Park Management Company Limited

North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England,
SY1 3BF

Rainbow Fields (Waddicar) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, England, SP2 7QY

Reflections Residents Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

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Bellway p.l.c. Annual Report and Accounts 2022

27. Resident management companies continued
Company Name

Registered Office

Renaissance (Reading) Management Company Limited

Pacific House, Imperial Way, Reading, Berkshire, England, RG2 0TD

Renovo (West Thurrock) Management Company Limited

First Floor, Unit 1, Elstree Gate, Elstree Way, Borehamwood, Hertfordshire, United
Kingdom, WD6 1JD

Ridleys Orchard (Whitton) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

Rolleston Manor Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Roman Gate (Melton Mowbray) Management Company Limited

3 Romulus Court, Meridian Business Park, Leicester, United Kingdom, LE19 1YG

Roman Walk Residents Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Rookerey Park Management Company Limited

Fisherton House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY

Rose Meadow (Northwich) Residents Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL

Rosedale Park Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

Rowley Fields Residents Management Company Limited

North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, England, SY1 3BF

Sandstone Brook Residents Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

Sandwell College Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH**

Sapphire Fields & Beaumont Park Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

Saxon Heath (Marham Park) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Scholars Place Management Company Limited

Unit 7, Astra Centre, Edinburgh Way, Harlow, Essex, United Kingdom, CM20 2BN

Seaford Grange (Newlands) Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Sheasby Park Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Sixty Three Management Company Limited

Gateway House, 10 Coopers Way, Temple Farm Industrial Estate, Southend-On-Sea,
England, SS2 5TE

Sky Plaza (Farnborough) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

Solomon’s Seal (Horsham) Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, SS11 8YB

Somerford Gate (Congleton) Residents Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL

Sovereign Place (Horley) Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, United
Kingdom, SS11 8YB

Spofforth Park Management Company Limited

Rmg House, Essex Road, Hoddesdon, Hertfordshire, United Kingdom, EN11 0DR

St Edmunds Management Limited

8 Cumbrian House, 217 Marsh Wall, London, E14 9FJ**

St George’s Walk Residential Management Company Limited

St John’s View (Menston) Management Company Limited

North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England,
SY1 3BF

St Lythans Park (Culverhouse Cross) Management Company Limited

11 Little Park Farm Road, Fareham, Hampshire, UK, PO15 5SN

St Mary’s Hill (Blandford) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY

St Mary’s Stannington Management Company Limited

Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom,
NE3 2ER****

St Wilfrid’s Place (Litherland) Residents Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL

St. George’s Park (Phase 2) Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

St. George’s Park Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

St. James Mews (Charfield) Management Company Limited

11 Little Park Farm Road, Fareham, Hampshire, UK, PO15 5SN

Steeds Farm (Fern Hill Gardens) Management Co Limited

2540 The Quadrant, Aztec West, Bristol, BS32 4AQ

Steeple Chase (Frisby) Management Company Limited

7 Astra Centre, Edinburgh Way, Harlow, Essex, England, CM20 2BN

Sterling Square (Bracknell) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, United Kingdom, SP2 7QY

Stilton Gate Management Company Limited

Premier House, Elstree Way, Borehamwood, WD6 1JH

Stonebridge View Residents Management Company Limited

North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England,
SY1 3BF

Stoughton Park Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

Summerhill View Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, United Kingdom, CW6 9DL

Swanland Grange Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, Cheshire, CW6 9DL

Tattenhoe Park (Parcel 4) Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

The Abbey Fields Grange Management Company Limited

3 Romulus Court, Meridian Business Park, Leicester, Leicestershire, United Kingdom,
LE19 1YG

The Alders (Wolverhampton) Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

The Avenue (Medburn) Residents Management Company Limited

Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER

The Beeches (Stanton Cross) Management Company Limited

Marlborough House, 298 Regents Park Road, London, N3 2UU

The Brackens Residents Management Company Limited

RMG House, Essex Road, Hoddesdon, England , EN11 0DR

The Bridles Residential Management Company Limited

2540 The Quadrant, Aztec West, Bristol, BS32 4AQ

The Chase Residents Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, United Kingdom,
HP2 7DN

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Accounts

Notes to the Financial Statements continued

27. Resident management companies continued
Company Name

Registered Office

The Cherry Meadow and Hatton Court Management Company Limited

2nd Floor, 154–155 Great Charles Street, Queensway, Birmingham, England, B3 3LP

The Coppice Heights & Amber Rise Management Company Limited

3 Romulus Court, Meridian Business Park, Leicester, LE19 1YG

The Croft (Ash Green) Management Company Limited

Gateway House, 10 Coopers Way, Southend-On-Sea, Essex, SS2 5TE

The Fairways (Basingstoke) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

The Foundry (Hemel Hempstead) Management Company Limited

395 Centennial Park Centennial Avenue, Elstree, WD6 3TJ

The Furlongs (Gt. Leighs) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

The Furrows (Warboys) Residents Management Company Limited

Marlborough House, 298 Regents Park Road, London, N3 2UU

The Gateford Quarter Management Company Limited

3 Romulus Court, Meridian Business Park, Leicester, United Kingdom, LE19 1YG

The Grange (Eldesborough) Management Company Limited

Marlborough House, 298 Regents Park Road, London, N3 2UU

The Grange (Fenham) Resident Management Company Limited

Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER

The Green (Solihull) Management Company Limited

10 Queen Street Place, London, United Kingdom, EC4R 1AG**

The Haven (Emsworth) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

The Hedgrows (Scots Lane) Residents Management Company Limited

4335 Park Approach, Leeds, LS15 8GB

The Long Shoot Management Company Limited

2nd Floor, 154 Great Charles Street Queensway, Birmingham, England, B3 3HN

The Mount Prestwich Residents Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, United Kingdom, SP2 7QY

The Oaks (Parsons Hill) Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, United Kingdom,
NG1 6HH

The Oaks (Witham) Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY

The Orchards (Colchester) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

The Pastures (Telford) Management Company Limited

80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

The Pastures (Wilstead) Management Company Limited

Marlborough House, 298 Regents Park Road, London, N3 2UU

The Printworks (Reading) Residents Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

The Residence (Nine Elms) Management Park Company Limited

8th Floor Holborn Tower, 137–144 High Holborn, London, England, WC1V 6PL

The Residence (Phase 2) Management Company Limited

8th Floor Holborn Tower, 137–144 High Holborn, London, England, WC1V 6PL

The Ridgeway (Chinnor) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN***

The Rosehips (Lower Howsell Road) Residents Management
Company Limited

Mainstay Residential Limited Whittington Hall, Whittington Road, Worcester, WR5 2ZX

The Spinney (Oteley Road) Management company Limited

Fisher House, 84 Fisherton Street, Salisbury, Wiltshire, SP2 7QY

The Vale (Bottesford) Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

The Vickers (Witchford) Residents Management Company Limited

Elstree Way, Borehamwood, WD6 1JH

The Willows (Swallowfield) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

The Woodlands (Adel) Management Company Limited

North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, United Kingdom,
SY1 3BF

The Woodlands (Watnall) Management Company Limited

Unit 7, Astra Centre, Edinburgh Way, Harlow, Essex, United Kingdom, CM20 2BN

Thomas Road Management Company Limited

8th Floor Holborn Tower, 137–144 High Holborn, London, England, WC1V 6PL

Tidbury Heights Management Company Limited

Cumberland Court, 80 Mount Street, Nottingham, Nottinghamshire, NG1 6HH

Tindale Reach (Wickwar) Management Company Limited

11 Little Park Farm Road, Fareham, England, PO15 5SN

Tranby Park Residential Management Company Limited

Rmg House, Essex Road, Hoddesdon, Hertfordshire, United Kingdom, EN11 0DR

Turnberry Quay Management Company Limited

8th Floor Holborn Tower, 137–144 High Holborn, London, England, WC1V 6PL

Tylman Place (Faversham) Management Company Limited

Hurricane Way, Wickford, Essex, England, SS11 8YB

Vicarage Gardens (South Marston Swindon) Management
Company Limited

1st Floor, 2540 The Quadrant Aztec West, Almondsbury, Bristol, United Kingdom,
BS32 4AQ

Victoria Gardens (Peters Village) Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Waltham Heights Resident’s Management Company Limited

100 Avebury Boulevard, Milton Keynes, United Kingdom, MK9 1FH

Walton Park Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Waterhouse Mill Residents Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

Waterside At Riverwell (Block E) Management Company Limited

86–90 Paul Street, London, United Kingdom, EC2A 4NE

Wavendon Chase Management Company Limited

Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR

Wavendon View Residents Management Company Limited

Queensway House, 11 Queensway, New Milton, Hampshire, England, BH25 5NR

Weaver Green Residents Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, United Kingdom, CW6 9DL

Wellfield Rise Residents Management Company Limited

Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER

Wellington Gardens (Aldershot) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Wellington Grange (Pocklington) Management Limited

North Point Stafford Drive, Battlefield Enterprise Park, Shrewsbury, United Kingdom,
SY1 3BF

West End Quarter (Folkestone) Management Company Limited

Gateway House, 10 Coopers Way, Southend-On-Sea, Essex, United Kingdom, SS2 5TE

Westbrook Moorings Management Company Limited

86–90 Paul Street, London, United Kingdom, EC2A 4NE

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27. Resident management companies continued
Company Name

Registered Office

Westland Place (Rainham) Management Company Limited

Woodland Place. Wickford Business Park, Hurricane Way, Wickford, SS11 8YB

Westminster Road Management Company Limited

One Eleven, Edmund Street, Birmingham, B3 2HJ

Weycorner (Guildford) Management Company Limited

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, United
Kingdom, SS11 8YB

Wharf Farm (Rugby) Residents Management Company Limited

Unit 7 Portal Business Park, Eaton Lane, Tarporley, United Kingdom, CW6 9DL

Wickfields (Longwick) Management Company Limited

86–90 Paul Street, London, United Kingdom, EC2A 4NE

Wildflower Meadow Limited

100 Avebury Boulevard, Milton Keynes, MK9 1FH

Willow Park (Halstead) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Willow Rise Management Company Limited

Romulus Court, Meridian Business Park, Leicester, LE19 1YG

Windgreen Gardens Management Company Limited

Fisher House, 84 Fisherton Street, Salisbury, England, SP2 7QY

Wolds View Residents Management Company Limited

Woodcroft Park Management Company Limited

North Point, Stafford Drive, Battlefield Enterprise Park, Shrewsbury, Shropshire, England,
SY1 3BF

Woodland Place Wickford Business Park, Hurricane Way, Wickford, Essex, United
Kingdom, SS11 8YB

Woodgreen (Blyth) Residents Management Company Limited

Cheviot House, Beaminster Way East, Newcastle Upon Tyne, United Kingdom, NE3 2ER

Wyvern Grange Management Company Limited

154–155 Great Charles Street Queensway, Birmingham, England, B3 3LP

Yew Tree Gardens (Cholsey) Management Company Limited

Vantage Point, 23 Mark Road, Hemel Hempstead, Hertfordshire, HP2 7DN

Company is a 50/50 Joint venture

*
** Company limited by shares wholly owned by Bellway Homes
*** Company limited by shares wholly owned by an employee of Bellway Homes Limited
**** Company limited by shares.

Other information
28. 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. The Directors use a combination of
APMs and IFRS measures when reviewing the performance, position and cash of the Group.

The APMs used by the Group are defined below:

• Underlying gross profit and underlying operating profit – Both of these measures are stated before net legacy building
safety expense and exceptional items, and are reconciled to total gross profit and total operating profit on the face of the
consolidated income statement. The Directors consider that the removal of the net legacy building safety expense provides a
better understanding of the underlying performance of the Group.

• Underlying gross margin – This is gross profit before net legacy building safety expense and exceptional items, divided by
total revenue. The Directors consider this to be an important indicator of the underlying trading performance of the Group.

• Administrative expenses as a percentage of revenue – This is calculated as the total administrative overheads divided
by total revenue. The Directors consider this to be an important indicator of how efficiently the Group is managing its
administrative overhead base.

• Underlying operating margin – This is operating profit before net legacy building safety expense and exceptional items

divided by total revenue. The Directors consider this to be an important indicator of the operating performance of the Group.
• 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.

• Underlying profit before taxation – This is the profit before taxation before net legacy building safety expense and

exceptional items. The Directors consider this to be an important indicator of the profitability of the Group before taxation.

• Underlying profit for the year – This is the profit for the year before net legacy building safety expense and exceptional items.

The Directors consider this to be an important indicator of the profitability of the Group.

• Underlying earnings per share – This is calculated as underlying profit for the year divided by the weighted average number

of ordinary shares in issue during the year (excluding the weighted average number of ordinary shares held by the Trust
which are treated as cancelled).

• 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.

• Underlying dividend cover – This is calculated as underlying profit for the year 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 underlying earnings paid to shareholders and reinvested in the business.

• Capital invested in land, net of land creditors, and work-in-progress – This is calculated as shown in the table below.
The Directors consider this as an indicator of the net investment by the Group in the period to achieve future growth.

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Accounts

Notes to the Financial Statements continued

28. Alternative performance measures continued

Per balance sheet

Land

Work-in-progress

Increase in capital invested in land
and work-in-progress in the year

2022
£m

2,786.4

1,524.8

2021
£m

2,483.9

1,431.4

Land creditors

(393.4)

(455.8)

Increase in capital invested in land,
net of land creditors, and work-in-
progress in the year

2021
£m

2,483.9

1,431.4

2020
£m

2,216.2

1,496.1

(455.8)

(343.6)

Mvt
£m

302.5

93.4

395.9

62.4

458.3

Mvt
£m

267.7

(64.7)

203.0

(112.2)

90.8

• 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.

• Capital employed – Capital employed is defined as the total of equity and net debt. Equity is not adjusted where the Group

has net cash. The Directors consider this to be an important indicator of the operating efficiency and performance of
the Group.

• Underlying return on capital employed (‘underlying RoCE’) – This is calculated as operating profit before net legacy building

safety expense and exceptional items divided by the average capital employed. Average capital employed is calculated
based on opening, half year and closing capital employed. 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.

Underlying operating profit

Capital employed/land creditors:

Opening

Half year

Closing

Average

2022
Capital
employed

2022
Land
creditors

£m

653.2

3,287.8

3,429.8

3,367.8

3,361.8

£m

455.8

349.0

393.4

399.4

2022
Capital
employed
including land
creditors
£m

653.2

3,743.6

3,778.8

3,761.2

2021
Capital
employed

£m

531.5

2,994.0

3,162.4

3,287.8

3,148.1

Underlying return on capital employed

19.4%

17.4%

16.9%

2021
Land
creditors

£m

2021
Capital
employed
including land
creditors
£m

531.5

343.6

371.7

455.8

390.4

3,337.6

3,534.1

3,743.6

3,538.4

15.0%

• Return on capital employed (‘RoCE’) – This is calculated as operating profit divided by the average capital employed.

Average capital employed is calculated based on opening, half year and closing capital employed. 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.

Operating profit

Capital employed/land creditors:

Opening

Half year

Closing

Average

Return on capital employed

2022
Capital
employed

2022
Land
creditors

£m

455.8

349.0

393.4

399.4

£m

309.0

3,287.8

3,429.8

3,367.8

3,361.8

9.2%

2022
Capital
employed
including land
creditors
£m

309.0

3,743.6

3,778.8

3,761.2

2021
Capital
employed

£m

479.7

2,994.0

3,162.4

3,287.8

3,148.1

8.2%

15.2%

2021
Land
creditors

£m

2021
Capital
employed
including land
creditors
£m

479.7

343.6

371.7

455.8

390.4

3,337.6

3,534.1

3,743.6

3,538.4

13.6%

184

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• 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.

Profit for the year

Net assets:

Opening

Half year

Closing

Average

Post tax return on equity

2022
£m

242.6

3,287.8

3,429.8

3,367.8

3,361.8

2021
£m

390.7

2,994.0

3,162.4

3,287.8

3,148.1

7.2%

12.4%

• Underlying post tax return on equity – This is calculated as profit for the year before net legacy building safety expense and
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 the operating efficiency of the Group.

Underlying profit for the year

Net assets:

Opening

Half year

Closing

Average

2022
£m

518.5

3,287.8

3,429.8

3,367.8

3,361.8

2021
£m

432.7

2,994.0

3,162.4

3,287.8

3,148.1

Underlying post tax return on equity

15.4%

13.7%

• Total growth in value per ordinary share – The Directors use this as a proxy for the increase in shareholder value since 31 July

2019. A period of 3 years is used to reflect medium-term growth.

Net asset value per ordinary share:

At 31 July 2022

At 31 July 2019

Net asset value growth per ordinary share

Dividend paid per ordinary share:

Year ended 31 July 2022

Year ended 31 July 2021

Year ended 31 July 2020

Cumulative dividends paid per ordinary share

Total growth in value per ordinary share

2,727p

2,372p

127.5p

85.0p

100.0p

355p

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t
s

312.5p

667.5p

• Annualised accounting return in NAV and dividends paid since 31 July 2019 – This is calculated as the annualised increase

in net asset value per ordinary share plus cumulative ordinary dividends paid per ordinary share since 31 July 2019 (as
detailed above) divided by the net asset value per ordinary share at 31 July 2019. The Directors use this as a proxy for the
increase in shareholder value since 31 July 2019.

Net asset value growth per ordinary share

Cumulative dividends paid per ordinary share

Total growth in value per ordinary share

Net asset value per ordinary share at 31 July 2019

Total value per ordinary share

Annualised accounting return =

(

3,039.5
2,372.0

)

^(1/3) –1

355p

312.5p

667.5p

2,372p

3,039.5p

8.6%

Bellway p.l.c. Annual Report and Accounts 2022

185

Accounts

Notes to the Financial Statements continued

28. Alternative performance measures continued
• Capital growth in the period – This is calculated as the increase in NAV in the period combined with the ordinary dividend

paid in the year.

Net asset value per ordinary share:

At 31 July 2022

At 31 July 2021

Net asset value growth per ordinary share

Dividend paid per ordinary share:

Year ended 31 July 2022

Capital growth in the period

2,727p

2,664p

63p

127.5p

190.5p

• Underlying capital growth in the period – This is calculated as capital growth in the period before net legacy building safety

expense and exceptional items per share.

Capital growth in the period

Net legacy building safety expense per share

Underlying capital growth in the period

Net asset value at 31 July 2021

Underlying capital growth

( 414.4p

2,664p

)

190.5p

223.9p

414.4p

2,664p

15.6%

• 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 debt/cash 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.

• Cash generated from operations before investment in land, net of land creditors, and work-in-progress – This is calculated

as shown in the table below. The Directors consider this as an indicator of whether the Group is generating cash before
investing in land and work-in-progress to achieve future growth.

Cash from operations

Add: increase in capital invested in land, net of land creditors, and work-in-progress
(as described above)

Cash generated from operations before investment in land, net of land creditors,
and work-in-progress

2022
£m

114.6

458.3

572.9

2021
£m

519.6

90.8

610.4

• 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.

• Adjusted gearing – This is calculated as the total of net debt/cash 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.

• 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.

29. Post balance sheet events
The Group acquired 100% of the ordinary share capital of Rosconn Strategic Land Limited on 12 October 2022 for £24.8m
cash consideration.

Earlier this month, the Group also signed up to the Developers’ Pact with the Welsh Government. Similar to the Pledge, this
is a commitment to remediate buildings over 11 metres in height with life critical fire safety issues, which were constructed in
Wales since 1992. Reflecting our ongoing and responsible UK-wide approach to legacy building safety, the expected cost of the
remediation works in Wales was probable at the year end and is included in our provision at 31 July 2022.

186

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Five Year Record

Income statement

Revenue

Operating profit

Net finance expenses

Share of results of joint ventures

Profit before taxation

Income tax expense

Profit for the year (all attributable to equity holders of
the parent)

Balance sheet

ASSETS

Non-current assets

Current assets

LIABILITIES

Non-current liabilities

Current liabilities

EQUITY

Total equity

Statistics

Number of homes sold

Average price of new homes
Underlying gross margin2
Gross margin
Underlying operating margin2
Operating margin

Basic earnings per ordinary share

Dividend per ordinary share
Underlying return on capital employed2
Return on capital employed2
Gearing2
Net asset value per ordinary share2
Land portfolio – plots with implementable DPP

2018
£m

2,957.7

652.9

(13.6)

1.8

641.1

(121.2)

519.9

59.0

3,485.5

(84.9)

(902.5)

2019
£m

2020
£m

2021
£m

2022
£m

3,213.2

674.9

(14.4)

2.1

662.6

(124.0)

538.6

2,225.4
321.73
(13.4)

1.0
309.33
(57.6)3
251.73

3,122.5
531.53
(11.1)

10.4
530.83
(98.1)3
432.73

3,536.8
653.23
(12.1)3
9.3
650.43
(131.9)3
518.53

83.2

3,806.7

99.3

3,984.3

(99.4)

(869.3)

(133.8)

(955.8)

102.1

4,574.7

(316.9)

(1,072.1)

71.6

4,913.5

(646.3)

(971.0)

2,557.1

2,921.2

2,994.0

3,287.8

3,367.8

10,307

£284.9k

25.6%**
25.6%**
22.1%

22.1%

423.4p

143.0p

27.2%

–

2,079p

26,877

10,892

£292.0k

24.6%

21.0%

437.8p

150.4p

24.7%

–

2,372p

26,421

7,522

£293.1k
19.0%3
15.7%
14.5%3
11.2%

156.6p

50.0p
10.8%3
8.3%

–

2,427p

28,289

10,138

£306.5k
20.9%3
19.2%
17.0%3
15.4%

316.9p

117.5p
16.9%3
15.2%

–

2,664p

30,933

11,198

£314.4k
22.3%3
12.5%
18.5%3
8.7%

196.9p

140.0p
19.4%3
9.2%

–

2,727p

32,344

A
c
c
o
u
n
t
s

Weighted average number of ordinary shares

122,779,199

123,012,723

123,205,211

123,306,035 123,227,544

Number of ordinary shares in issue at end of year

122,980,266

123,167,828

123,345,834

123,396,422 123,486,260

Notes:
** Restated due to the adoption of IFRS 15 ‘Revenue from contracts with customers’.

Bellway p.l.c. Annual Report and Accounts 2022

187

External
Reporting
Frameworks

Sustainability Accounting
Standards Board (SASB)

Global Reporting Initiative (GRI)

United Nations Sustainable
Development Goals (SDGs)

189

194

199

188

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Sustainability Accounting Standards Board (SASB)

The Sustainability Accounting Standards Board (SASB) is an independent not
for profit organisation which sets standards to guide the disclosure of financially
material sustainability information of companies.
Terminology used in the SASB is different from the UK marketplace, therefore we have used equivalent data where
requirements are different from established building and sustainability related standards and measures for the UK.

The following table discloses our performance against the criteria set by the SASB for the Home Builders sector. Data relates to
the period 1 August 2021 – 31 July 2022.

Throughout this section, ‘Plots’ are homes prior to completion which are equivalent to ‘Lots’.

Code
SASB criteria
Land use and ecological impacts
IF-HB-16A.1 Number of (1) lots and

(2) homes delivered on
redevelopment sites

IF-HB-160a.2 Number of (1) lots and
(2) homes delivered in
regions with High or
Extremely High Baseline
Water Stress

IF-HB-160a.3 Total amount of monetary

losses as a result of
legal proceedings
associated with
environmental regulations

Our approach

34.7% of our owned and controlled land bank plots were on brownfield land,
as at the 31st July 2022.

39.3% of completions (excluding joint ventures).

Data is currently unavailable.

Working towards reporting targets for the financial year ending 31st July 2023.

There have been no material instances of monetary losses as a result of legal
proceedings associated with the environment.

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189

External Reporting Frameworks

Sustainability Accounting Standards Board (SASB) continued

Our approach

SASB criteria

Code
Land use and ecological impacts continued
IF-HB-160a.4 Discussion of process to
integrate environmental
considerations into site
selection, site design,
and site development
and construction

For all developments, we aim to mitigate our impact through a range of
actions, including flood impact assessments, risk assessments, ecology surveys,
environmental impact assessments, and, in agreement with local planning
authorities, biodiversity mitigation, enhancement and offsetting.

We have appointed a Head of Biodiversity who will be working closely
with our Commercial and Land teams to ensure that we further integrate
environmental considerations into our developments and achieve our Better with
Bellway objectives.

Site selection:
• At acquisition stage, we carry out detailed due diligence on sites with regard
to flood risk and mitigation, land contamination, air quality, landscape and
biodiversity assessments.

• We consider connectivity to transport links, and potential nitrate and

phosphate issues.

• All land purchases are scrutinised by senior divisional management, prior to being

reviewed by our Group Head Office.

• Flood risk authorities specify that new developments must survive a one in one
hundred year storm with an additional risk tolerance of 30%. Our developments
meet or exceed this specification.

• We have committed to demonstrating a minimum biodiversity net gain of 10%

across all development designs submitted for planning from July 2023 onwards.
Our Land teams utilise their knowledge received from training resources and
models, as well as external ecologists, to assess biodiversity constraints and
opportunities. This is performed at the earliest stage of site selection and they are
supported by our Head of Biodiversity and Head Office teams.

Site design:
• Our Artisan house type design standards exceed statutory requirements for

energy efficiency.

• Environmental considerations are driven through our new Better with

Bellway approach.

• We are working towards a partnership with The Rivers Trust, a national
environmental NGO, to strengthen our long-term shared objectives for
sustainable, climate-resilient developments in the UK.

• In 2022, we planted 15,869 tree saplings across our developments.

Site development and construction:
• We identify and mitigate environmental impact during the development and

construction phase through the application of Group Standards.

• Our divisions are working towards being certified to IS0 14001 Environmental
Management System Standards by the financial year ended 31st July 2024.

• Our Regional Health and Safety Managers conducted 734 monitoring visits of sites
in FY22 to assess compliance with our health, safety and environmental policies.

• Over the past year, we’ve installed sustainable drainage systems on 255 of

our developments.

• We’ve implemented biodiversity plans on 137 of our developments across the UK.
• 100% of our sites have individual site waste management plans.

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SASB criteria

Code
Workforce health and safety
(1) Total recordable
IF-HB-320a.1
incident rate (TRIR) and
(2) fatality rate for a)
direct employees and (b)
contract employees

Design for resource efficiency
IF-HB-320a.1 Number of homes that

obtained a certified HERS
Index Score and (2)
average score

IF-HB-410a.2 Percentage of installed

water fixtures certified to
WaterSense® specifications

IF-HB-410a.3 Number of homes

delivered certified to a
third-party multi-attribute
green building standard

IF-HB-410a.4 Description of risks and
opportunities related to
incorporating resource
efficiency into home
design, and how benefits
are communicated
to customers

Our approach

We measure H&S performance using an Annual Injury Incidence Rate (AIIR) metric
which is per 100,000 employees. Our overall AIIR is 360.

There were no fatalities.

The health, safety, and wellbeing of our colleagues and subcontractors is our
highest priority.

Reportable injuries are those covered by the UK’s Reporting of Injuries, Diseases
and Dangerous Occurrences Regulations (RIDDOR).

The Energy Performance Certificate (EPC) is a UK equivalent to the HERS Index.
Properties are assessed by an accredited assessor.

97% of our homes achieve an energy efficiency rating of either A or B, this
significantly exceeds the new build industry average of 84%. This statistic is
based on analysis of actual final EPC data from 1st August 2021 to 31st July
2022. The sample analysed covered 6,242 homes accounting for 55% of the
completions in the period.

The construction specification of every Bellway home includes high levels of
thermal insulation, the detailed house type designs incorporate calculated thermal
bridging thereby reducing a significant source of heat loss. Our homes also feature
highly efficient services and appliances. Solar PV arrays and mechanical ventilation
systems with heat recovery feature in a growing number of our homes.

100% of total home completions in FY22 were designed to a flow of less than 115
litres per person per day.

Bellway Homes incorporate low flow outlets & sanitary ware to achieve a low
water consumption rate, this strategy permanently reduces water consumption.

The UK does not currently have an established third party multi-attribute green
building standard for homes.

All our homes are subject to UK building regulations.

We continuously review risks and opportunities in relation to resource efficiency in
our Artisan collection house designs.

We do this through internal workshops, working directly with our supply chain
partners, collaborating in sector forums and testing through customer research.

It is recognised that the low carbon home of the future is not necessarily a low
running cost home. We are conducting research projects that include energy
monitoring and reporting to identify the prime configuration of fabric, services
and renewable energy generation to ensure affordable running costs for
our customers.

These benefits will be communicated to the customer via improved EPC ratings.

The greater use of timber products increases construction efficiency and reduces
the amount of embodied carbon in a home we build.

As part of Customer First we communicate with our customers throughout their
customer journey, utilising various channels to keep them informed about all
aspects of their new home.

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191

External Reporting Frameworks

Sustainability Accounting Standards Board (SASB) continued

SASB criteria

Code
Community impacts of new developments
IF-HB-410b.1 Description of how

Our approach

proximity and access to
infrastructure, services,
and economic centres
affect site selection and
development decisions

IF-HB-410b.2 Number of (1) lots and

(2) homes delivered on
infill sites

IF-HB-410b.3 (1) Number of homes
delivered in compact
developments and (2)
average density

Climate change adaptation
IF-HB-420a.1 Number of lots located in

100-year flood zones

IF-HB-420a.2 Description of climate
change risk exposure
analysis, degree of
systematic portfolio
exposure, and strategies
for mitigating risks

Proximity and access to infrastructure, services, and economic centres influence
site selection and development decisions.

For each site, we assess the current level of facilities and services to see if they
are sufficient to support the scale of proposed development. We aim for future
residents to have convenient access to local facilities and services.

Where it is deemed the current level of facilities or services are not adequate to
support the development, we contribute to improve local facilities.

The UK’s NPPF also requires consideration of the opportunities presented by
existing or planned investment in infrastructure.

During 2022, we contributed £117.2 million to local communities via planning
obligations (2021: £71.3 million) to fund infrastructure and facilities.

Around 85% of our completions were within 400m of a public transport node.

This data is not currently collected. However, the majority of brownfield land in the
UK would meet the definition of an infill site.

11,361 (34.7%) of our owned and controlled land bank plots at 31 July 2022 were on
brownfield land.

4,404 (39.3%) home completions (excluding joint ventures) were on
brownfield land.

According to SASB definitions, all our schemes meet the criteria for
compact development.

For all developments, and specifically where we develop greenfield sites,
we aim to mitigate our impact through a range of actions, including flood
impact assessments, risk assessments, ecology surveys, environmental impact
assessments, and in agreement with local planning authorities, biodiversity
mitigation, enhancement and offsetting.

Flood risk authorities specify that new developments must survive a one in
hundred year storm plus 30%.

We ensure our developments meet and very often exceed this specification.

We recognise climate change as a principal risk to our business and are
committed to reducing our own emissions through the setting of Science-Based
Targets (SBTs).

The assessment of, and response to climate risk is a key consideration in the
Group’s future strategy.

The identification of new and emerging climate-related risks, assessment and
prioritisation of those risks, and our risk management approach will be key to
integrate climate change mitigation into our overall approach to sustainability.
Over the next year, we will undertake scenario planning to identify the risks related
to the increasing frequency and severity of acute weather events or increasing
water scarcity that could impact our operating environment. Once identified,
we will work towards obtaining a better understanding of the potential financial
impacts using our established scoring criteria, and our resilience with regards to
different scenarios.

We have clear governance to allow the business to oversee climate risks, along
with the Group’s progress on compliance with the Taskforce for Climate-related
Financial Disclosures (TCFD).

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SASB criteria

Code
Activity metrics
IF-HB-000.A Number of controlled lots As at 31 July 2022, our short-term land bank stood at 32,344 plots.

Our approach

IF-HB-000.B Number of

homes delivered

We delivered 11,292 home completions, 11,198 from wholly owned operations
along with 94 from joint ventures.

IF-HB-000.C Number of active

selling communities

We sold from 244 average active sales outlets, 242 in our wholly owned
operations and 2 in our joint ventures.

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193

External Reporting Frameworks

Global Reporting Initiative (GRI)

The Global Reporting Initiative (GRI) is a leading organisation used for global
sustainability reporting. This Report has been prepared in accordance with the
GRI Standards 2016: Core option.
Bellway has adopted the GRI Standards to drive forwards sustainable performance in line with our Better with Bellway strategy,
which was launched in March 2022, and embodies our approach to responsible and sustainable business practices. This is
our first time reporting against these standards and we are continuing to develop and refine our approach, therefore these
disclosures do not meet the reporting requirements in full.

For our next reporting period, we will align with the GRI Universal Standards 2021.

Description

Disclosure
1 Organisational Profile
102-1

Name of the organisation

Cross-Reference/Direct Answer

Bellway p.l.c.

102-2

102-3

102-4

102-5

Activities, brands, products, and services

About us section: Who We Are – Pages 6 and 7

Location of headquarters

Location of operations

Ownership and legal form

Back cover of the Annual Report.

About us section: Who We Are – Pages 6 and 7

Shareholder analysis – Page 205

Bellway is a limited liability public company listed on the
London stock exchange.

102-6

Markets served

About us section: Who We Are – Pages 6 and 7

102-7

Scale of the Organisation

About us section: Who We Are – Pages 6 and 7

Key Stakeholder Relationships – Pages 65 to 74

Nomination Report – Pages 95 and 96

Chief Executive’s Market and Operational Review:
Market – Pages 26 to 29

Financial and Strategic Highlights – Pages 4 and 5

Financial Statements – Page 144

102-8

Information on employees and other workers Nomination Report – Pages 95 and 96

Key Stakeholder Relationships – Pages 65 to 74

As of the end of FY22, our employee and worker data is per the
table below:

Male

Female

Male

Female

Casual

Fixed-term contract

Permanent

Temporary

Full time

2,098

787

2,101

917

Part time

141

Total

2,114

928

2,114

928

102-9

Supply chain

Key Stakeholder Relationships – Pages 65 to 74

Chief Executive’s Market and Operational Review
– Pages 26 to 29

Better with Bellway section – Pages 34 to 64

102-10

102-11

102-12

102-13

Significant changes to the Organisation
and its supply chain

There have been no significant changes during
the Financial Year.

Precautionary principle or approach

Risk Management section – Pages 75 to 78

External initiatives

Better with Bellway – Pages 34 to 64

Membership of associations

Key Stakeholder Relationships – Pages 65 to 74

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Bellway p.l.c. Annual Report and Accounts 2022

Disclosure
2 Strategy
102-14

Description

Cross-Reference/Direct Answer

Statement from senior decision-maker

Chairman’s statement – Pages 24 and 25

Key impacts, risks, and opportunities

102-15
3 Ethics and Integrity
102-16

Values, principles, standards, and norms
of behaviour

4 Governance
102-18
5 Stakeholder Engagement
102-40

Governance structure

List of stakeholder groups

Chief Executive’s Market and Operational Review
– Pages 26 to 29

Risk Management section – Pages 75 to 78

Better with Bellway section – Pages 46 to 53

Division of Responsibilities – Pages 92 to 94

Key Stakeholder Relationships – Pages 65 to 74

102-41

102-42

102-43

Collective bargaining agreements

The number of collective bargaining agreements is zero.

Identifying and selecting stakeholders

Key Stakeholder Relationships – Pages 65 to 74

Approach to stakeholder engagement

Key Stakeholder Relationships – Pages 65 to 74

Key topics and concerns raised

102-44
6 Reporting Practice
102-45

Entities included in the consolidated
financial statements

Key Stakeholder Relationships – Pages 65 to 74

Financial Statements – Page 175

102-46

102-47

102-48

102-49

102-50

102-51

102-52

102-53

102-54

102-55

102-56

Defining report content and topic boundaries

Better with Bellway – Pages 34 to 64

List of material topics

Table at the end of this document.

Restatements of information

No restatements of information.

Changes in reporting

Reporting period

Date of most recent report

Reporting cycle

Contact point for questions regarding
the report

No changes in reporting.

Year ended 31 July 2022.

04 November 2021.

Annual.

investor.relations@bellway.co.uk

Claims of reporting in accordance with the
GRI Standards

This report has been prepared in accordance with the GRI
Standards: Core option

GRI content index

External assurance

This index serves as the GRI content index

Independent Auditor Report – Pages 130 to 139

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195

External Reporting Frameworks

Global Reporting Initiative (GRI) continued

Disclosure
Description
GRI 103: Management Approach
103-1

Explanation of the material topic and
its Boundary

103-2

The Management approach and
its components

Evaluation of the Management approach

103-3
GRI 201: Economic Performance 2016
1.1

Management approach disclosures

201-1

Direct economic value generated
and distributed

GRI 301: Materials
1.1

Management approach disclosures

Cross-Reference/Direct Answer

Better with Bellway – Pages 34 to 64

We conducted a full review of our corporate responsibility
activities, engaging with Key Stakeholders, to help shape
our new Better with Bellway sustainability strategy, this
was launched earlier in 2022. The objective was to create
an integrated strategy that would go above and beyond
the traditional Environmental, Social & Governance (‘ESG’)
and corporate responsibility topics to align itself with our
commercial strategy. The new strategy addresses the key
sustainability risks and opportunities for Bellway.

Better with Bellway strategy was assessed by an external
provider against the GRI standard’s to identify the appropriate
material topics which best match our strategic pillars within the
new strategy.

Better with Bellway – Pages 34 to 64

Risk Management – Pages 75 to 78

Better with Bellway – Pages 34 to 64

Financial Statements Pages 142 to 188

Our Strategy – Pages 14 and 15

Better with Bellway – Pages 34 to 64

Risk Management – Pages 75 to 78

301-1

Materials used by weight or volume

Better with Bellway – Pages 34 to 64

301-3

Reclaimed products and their
packaging materials

GRI 302: Energy
1.1

Management approach disclosures

Information is currently unavailable as we are working
towards this.

Better with Bellway – Pages 56 and 57

Better with Bellway – Pages 34 to 64

302-1

Energy consumption within the Organisation

Better with Bellway – Pages 42 to 45

Energy intensity

302-3
GRI 304: Biodiversity
1.1

Management approach disclosures

Better with Bellway – Pages 42 to 45

Better with Bellway – Pages 34 to 64

304-3

Habitats protected or restored

Better with Bellway – Pages 34 to 64

196

Bellway p.l.c. Annual Report and Accounts 2022

Description

Disclosure
GRI 305: Emissions
1.1

Management approach disclosures

Cross-Reference/Direct Answer

Better with Bellway – Pages 34 to 64

Risk Management – Pages 75 to 78

Management approach disclosures

Better with Bellway – Pages 34 to 64

Direct (scope 1) GHG emissions

Better with Bellway – Pages 42 to 45

Energy indirect (scope 2) GHG emissions

Better with Bellway – Pages 42 to 45

Other indirect (scope 3) GHG emissions

Better with Bellway – Pages 42 to 45

305-5
GRI 306: Waste
1.1

GHG emissions intensity

Reduction of GHG emissions

Management approach disclosures

306-3
Waste generated
GRI 403: Occupational Health and Safety
Management approach disclosures
1.1

Hazard identification, risk assessment and
incident investigation

Better with Bellway – Pages 42 to 45

Better with Bellway – Pages 34 to 64

Risk Management – Pages 75 to 78

Better with Bellway – Pages 58 and 59

Better with Bellway – Pages 34 to 64

Better with Bellway – Pages 54 and 55

Occupational health services

Better with Bellway – Pages 54 and 55

Worker participation, consultation, and
communication on occupational health
and safety

Worker training on occupational health
and safety

Better with Bellway – Pages 54 and 55

Promotion of worker health

Better with Bellway – Pages 54 and 55

Work related injuries

Better with Bellway – Pages 54 and 55

1.2

305-1

305-2

305-3

305-4

403-2

403-3

403-4

403-5

403-6

403.9

GRI 405: Diversity and Equal Opportunity
Management approach disclosures
1.1

405-1

405-2

Diversity of governance bodies
and employees

Ratio of basic salary and remuneration of
women to men

Information is incomplete as we are unable to split information
by employees and subcontractors.

Nomination Report – Pages 95 and 96

With the Introduction of a new HR processes we aim to be able
further expand our diversity reporting, including age.

Gender Pay Reporting – www.bellwayplc.co.uk/investor-
centre/governance/statements/statements/gender-pay-gap-
report-2021

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External Reporting Frameworks

Global Reporting Initiative (GRI) continued

Cross-Reference/Direct Answer

Risk Management – Pages 75 to 78

Better with Bellway – Pages 56 and 57

We have assessed the overall risk of modern slavery to be
low, however we recognise that the risk associated with
subcontractors and suppliers is higher than that for our
employees given a number of mitigations sit outside of our
direct control. The risk of Modern Slavery occurring in any of
these areas is being proactively managed through site audits,
welfare checks, and toolbox talks in order to raise awareness of
the signs amongst staff.

Better with Bellway – Pages 34 to 64

Better with Bellway – Pages 38 and 39

Description

Disclosure
GRI 409: Forced or Compulsory Labour
1.1

Management approach disclosures

409-1

Operations and suppliers at significant risk for
incidents of forced or compulsory labour

GRI 413: Local Communities
1.1

Management approach disclosures

413-1

Operations with local community
engagement, impact assessments,
and development programs

198

Bellway p.l.c. Annual Report and Accounts 2022

UN Sustainable Development Goals (SDGs)

Sustainability is at the heart of our new Better with Bellway strategy, as part of the
work establishing our this strategy, we have benchmarked where it aligns with the
United Nations Sustainable Development Goals (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 planet, now and into the future”. With a 2030 deadline set for the SDGs, we recognise that our new sustainability
strategy needs to contribute to rapid action and improvement.

Our eight strategic business priorities included within Better with Bellway, which cover every aspect of our business from land
purchases through to how we interact with our customers, are designed to put our long-term commitment to responsible
and sustainable practice at the core of our operational strategy, please see the Better with Bellway section for more details,
pages 34 to 64.

As part of our sustainability strategy, we aim to support progress on the SDGs, and all of the external targets that form Better with
Bellway’s eight business priorities were mapped against the 17 SDGs and the 169 targets that sit within them.

Our strongest alignment to the SDGs are outlined below:

We build energy-efficient
homes for our customers
which reduces running
costs and cuts carbon
emissions. We also aim to
reduce energy use in our
business, including the use
renewable electricity.

We contribute to UK GDP
through our construction
activities and we are a
significant employer,
investing in skills and training
for young people.

We build developments and
infrastructure that benefit
our customers and the
surrounding communities.

We aim to improve diversity
within our business and
work with our suppliers to
improve standards in our
supply chain and address
modern slavery risks.

Aligns to the Better
with Bellway Carbon
Reductions priority.

Aligns to the Better with
Bellway Employer of
Choice priority.

Aligns to the Better with
Bellway Building Quality
Homes, Safely priority.

Aligns to the Better with
Bellway Employer of
Choice priority.