Bellway’s Return of Capital To Aid Share Price and Signal Fiscal Strength Amid Glum Housing Conditions

No-moat Bellway's first half fiscal 2023 result provided us with little in the way of surprises, having been effectively signaled in its recent profit warning trading update in early February 2023. Bellway delivered 5,695 homes in the first half, a flat year-on-year outcome. The average selling price, or ASP, rose 1.6% and reflected buoyant housing market conditions that prevailed into late 2022. In turn, ASP growth helped to partly offset searing build cost inflation during the period. Still, operating margin eased 110 basis points year-on-year to 18.7%.