Bellway profit rises on record number of home sales; warns of 'more pronounced' margin drop

Writer,

Bellway reported a rise in profit as the homebuilder sold a record number of homes in the year. The homebuilder warned, however, that the fall in margin would be 'more pronounced' as costs rise.

For the year ended 31 July, pre-tax profit rose by 3.4% to £662.6m and revenue climbed 8.6% to £3.2bn.

The total number of homes sold rose by 5.7% to 10,892 at an average selling price of £291,968, up 2.5% on last year.

In addition to delivering volume growth of 5.7%, the company ended the financial year with a sizeable forward order book of 4,878 homes, up from 4,841 a year earlier, with a value of £1.2bn, up from £1.3m. 'In the new financial year, the one-off benefit to the operating margin from Nine Elms will not be repeated and in addition, in the absence of house price inflation, industrywide build cost pressures will continue to have a moderating effect,' the company said.

'As a result of these combined influences, the reduction to a consistent, underlying operating margin will be more pronounced,' it added.


Related content

Broker Forecast - HSBC issues a broker note on Bellway PLC

HSBC today reaffirms its buy investment rating on Bellway PLC (LON:BWY) and raised its price target to 5470p (from 4300p).

Broker Forecasts data provided by...

Thu, 20/02/2020 - 08:10


Bellway says margins will continue to normalise amid sluggish house prices growth

Bellway reported record first-half volume output for the year, with the completion rising 6.3%, but the home builder said margins would continue to normalised amid...

Fri, 07/02/2020 - 07:56


Broker Forecast - Jefferies International issues a broker note on Bellway PLC

Jefferies International today reaffirms its hold investment rating on Bellway PLC (LON:BWY) and raised its price target to 4256p (from 3743p).

Broker Forecasts data provided...

Wed, 05/02/2020 - 11:30


Broker Forecast - Credit Suisse issues a broker note on Bellway PLC

Credit Suisse today initiates coverage of Bellway PLC (LON:BWY) with a outperform investment rating and price target of 4650p.

Broker Forecasts data provided by ...

Tue, 04/02/2020 - 14:10


Broker Forecast - UBS issues a broker note on Bellway PLC

UBS today reaffirms its buy investment rating on Bellway PLC (LON:BWY) and raised its price target to 4620p (from 3700p).

Broker Forecasts data provided by...

Tue, 04/02/2020 - 10:50