Bellway profits, revenue grows on 'strong' demand for new housing

Writer, Stock Market Wire
Tuesday, October 16, 2018 - 07:59

Bellway said Tuesday annual profits and revenue grew double digits on strong demand for new housing, though margins were pressured by falling house prices.

For the 12 months to 31 July, profit before tax rose 14.3% to £641.1m and revenue increased 15.6% to almost £2.96bn, well above the £2.56bn from a year earlier. This was in line with the company's guidance released in August.

The gross margin fell to 25.5% for the year, from 25.9% compared to the prior financial year, driven by the reduced income following the sale of freehold reversion interests.

The company's sales were also boosted by the Help-to-Buy scheme, particularly in London, where affordability was most constrained, the company said. Help-to-Buy accounted for 39% of completions.

Bellway sold 10,307 new residential dwellings, an increase of 6.9% from 9,644 homes sold last year.

Robust demand for affordably priced homes supported a 2.9% increase in the reservation to 176 a week in the period, up from 171 a week from a year earlier.

Forward sales were strong as the value of the order book was 7.9% ahead at £1.47bn, compared with £1.36bn last year.

'The Board are mindful that the forthcoming exit from the EU in March could pose a threat to consumer confidence during the busy spring selling season,' said Jason Honeyman, CEO.

'Assuming that market conditions remain unchanged, however, this healthy position should enable Bellway to further increase output in the year ahead.'

Related content

The investment trust on a quest for growth and value


One of the largest and most liquid UK smaller company trusts, yet trading at a 10.2% discount to net asset value (NAV) that suggests value...

Thu, 22/08/2019 - 00:00

The DNA of the FTSE 350


If you are new to stock market investing you may still have heard of the FTSE 100. It frequently appears on TV news bulletins and...

Thu, 15/08/2019 - 00:00

Bellway expects annual profits to meet market expectations

Bellway said annual pre-tax profits were expected to be in line with market expectations thanks to a pickup in housing demand during the spring selling...

Thu, 08/08/2019 - 07:43

Reckitt and Indivior soar on US settlement and shares in housebuilders lifted by property market data

“UK and Asian stocks followed the upwards trend seen last night in the US after the Fed signalled an interest rate cut. The FTSE 100...

Thu, 11/07/2019 - 11:20

Berkeley’s bumper cash returns fail to reassure investors over housing market worries

“Worries over the housing market and state of the UK economy more generally appear to be trumping the feel-good factor generated by better-than-expected profits and...

Wed, 19/06/2019 - 14:23