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Bellway PLC on Tuesday reported an annual revenue rise, and it continues to expect good things from the UK housing market, supported by a recent relaxing of stamp duty.
The Newcastle-based housebuilder said revenue in the financial year that ended July 31 rose 13% to £3.54 billion from £3.12 billion a year earlier.
Housing completions grew by 11% to a record 11,198 homes ahead of Bellway's expectations, it said, compared to 10,138 homes in 2021.
Pretax profit, however, shrunk 37% to £304.2 million from £479.0 million a year ago.
Bellway's bottom line took a £346.2 million hit from legacy building safety improvements provisions. Bellway said it has "continued commitment to act responsibly with regards to fire safety" following the Greenfell fire in west London in 2017.
Without the provisions, underlying pretax profit rose 23% to £650.4 million from £530.8 million, as underlying operating profit increased by 23% to £653.2 million from £531.5 million a year earlier.
Chief Executive Jason Honeyman said: "Bellway has delivered another strong performance. Bellway's growth will continue to be disciplined as we maintain a clear focus on the high standard of our product, margin, quality of profit and value creation."
Bellway lifted its dividend by 19% to 140.0 pence per share from 117.5p the year prior.
"While the sector faces a number of near-term headwinds, including rising interest rates and the expiry of Help-to-Buy, unemployment levels remain low and the recent positive changes to stamp duty thresholds offer additional support for housing demand. The combined strength of our balance sheet, land bank and order book support our ability to grow outlets in the year ahead, but also provide strategic flexibility to respond to changes in the housing market," Bellway explained.
Looking ahead, Bellway said it has entered the new financial year with a "strong forward order book", and it retains a strong forward sales position with a value of £2.09 billion as at October 2, compared to £1.97 billion on October 3 a year ago.
It added that it expects to deliver volume at a similar level to the prior year, given the backdrop of rising interest rates and wider economic uncertainty.
Bellway shares were down 0.3% at 1,821.48 pence each on Tuesday morning in London.
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