Housebuilder reports strong demand in second half of year
Bellway has said it will report higher completions for its current financial year than it previously expected.
The housebuilder, in an unaudited trading update today, said it now expects output to be between 8,600 and 8,700 homes for the year to 31 July. This is up from the 8,500-home forecast the housebuilder told the markets in March.
Bellway put the better-than-expected figure down to ‘robust trading through the spring selling season” with reservation rates picking up in the last few months compared to the first half of its reporting year. It said this was due to “good levels of customer demand and improved affordability” and single-digit build cost inflation.
Bellway’s average selling price is now anticipated to be around £315,000, higher than its previous guidance of £310,000, which it said is due to changes in its product mix.
Jason Honeyman, group chief executive, said: “”Bellway has delivered a solid trading performance, and we are on track to deliver strong growth in volume output and profits in the full financial year. “We have a healthy forward order book and outlet opening programme, which will serve as a platform for further growth in FY26.”
Bellway said it is focused on increasing its return on capital employed and “running a more efficient balance sheet” and will provide a fuller update later in the year.
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The firm’s forecast underlying operating margin remains unchanged at 11%, up from 10% last year.
The groups private reservation per outlet per week was 0.67, up from 0.51 for the first half of the year and 0.62 in the same period last year. Its forward order book rose as of 1 June rose by 7.7% year-on-year to 5,759 units and it said it expects to report a year-on-year increase at its year end of 31 July which will “serve as a platform for further volume growth” next year.
The group’s next scheduled trading update, covering the financial year ending 31 July, is on 12 August.
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