Bellway looks to build on order book strength

HOUSEBUILDER Bellway has posted record results for the 12 months ending 31 July, exceeding analysts’ profit expectations, and says its forward order book puts it on track to achieve volume growth of up to 10 per cent in the current financial year.

Bellway chairman John Watson said the firm has achieved another outstanding set of results, completing a record number of new homes. Picture: PA

The company generated revenue of £1.77 billion, up 18.9 per cent from the prior year, while pre-tax profit grew by 44 per cent to £354.2 million.

Excluding an exceptional item of £6.9m, the one-off profit generated by offloading all of its historic shared-equity assets, this amounted to £347.3m, which analyst Robin Hardy at Shore Capital Markets said exceeded the £343m expected by his team and the consensus.

Bellway chairman John Watson said the firm has achieved “another outstanding set of results, completing a record number of new homes, whilst simultaneously making a record investment in land and opening a further two new divisions in the last 12 months”.

The firm – a key player in Scotland – sold a record 7,752 homes, up from 6,851 in the prior year, and grew its investment in land and land creditors by £160m to reach a record spend of £620m. Its divisions now number 17 after adding sites in Bristol and Kent. It started the current financial year with a “healthy” order book of 4,568 homes, up from 4,363 last year.

Watson said the outlook was positive, stating: “Bellway is well-positioned to continue delivering its strategy for growth, investing in high-quality locations and delivering further sustainable returns for shareholders.”