Bellway pulls Crest Nicholson takeover
Previously lined up for a £720m deal, the Newcastle-headquartered housebuilder has confirmed that it will not make a firm offer for its rival.
The parties have been in discussions for some months, with an offer of £650m being rejected by Surrey-headquartered Crest Nicholson in May. The target company’s directors were then thought to be keen to accept an improved offer.
Crest Nicholson has issued a series of profit warnings, the most recent in June, when it said its annual profit would fall by at least a third. Chief executive Peter Truscott announced his retirement, and has now been replaced by Martyn Clark, ex-chief commercial officer of Persimmon.
In a brief statement issued yesterday, Bellway said that it “remains confident that its robust balance sheet and operational strength, combined with the depth and quality of its land bank, will enable Bellway to deliver volume growth in the years ahead and support ongoing value creation for shareholders”.
In a trading update issued last week ahead of its annual results, Bellway reported 7,654 housing completions. Although this was down from the 10,000+ reported in 2023, it was ahead of the 7,500 homes expected in previously issued guidance.
Pricing also held up, said the firm. Housing revenue was £2.3bn, down from £3.3bn.
Bellway’s financial year runs August-July, with the full results to be announced for 2023-24 in October.
The forward order book had increased to 5,144 homes from 4,411 homes, with a value of £1.4bn.
Chief executive Jason Honeyman said: “The improving trading backdrop, combined with the strength of our outlet opening programme, has generated healthy growth in the year-end order book. As a result, we are in a strong position to return to growth in financial year 2025, as previously guided.
“We are encouraged by the new government’s plans to increase the supply of new homes across the country and welcome its plans to reform the planning system.
“Overall, the long-term housing market fundamentals are positive, and we remain confident that our robust balance sheet and operational strength, combined with the depth and quality of our land bank, will enable Bellway to successfully capitalise on future growth opportunities.”
On its home patch, Bellway remains busy. Plans were lodged by its strategic land arm for 600 homes at Stainton Vale Farm, Middlesbrough in July, while a deal with land promoter Banks, finalised recently, will see around the same number of homes delivered at Killingworth Moor.
Approval has now been secured from Sunderland City Council for 135 homes in the village of Easington Lane, where the Forest estate once stood.
