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Bellway PLC on Tuesday predicted further growth in the financial year ahead, despite ‘softer’ market conditions in recent months, as it reported new home production ahead of guidance. Chief Executive Jason Honeyman said: ‘Bellway has delivered a solid performance despite ongoing headwinds for our industry. There was good growth in volume output and an improvement in underlying margin which are set to drive a strong increase in profits for FY25.’ In response, shares in the Newcastle upon Tyne housebuilder rose 1.7% to 2,480.00 pence each in London on Tuesday morning. Bellway said total housing completions increased by 14% to 8,749 homes in the financial year that ended July 31 from 7,654 a year prior, at an overall average selling price of around £316,000, up year-on-year from £307,909, both slightly ahead of previous guidance. In June, the FTSE 250 listing had said it expected volume output in financial 2025 to be between 8,600 and 8,700 homes, raised from ’at least 8,500’ before. Average selling prices were anticipated at £315,000. Housing revenue rose by 17% to £2.76 billion from £2.36 billion and the underlying operating margin is expected to approach 11%, compared to 10% a year ago, Bellway said. The private reservation rate per outlet per week, including bulk sales, of 0.57 was 12% higher than 0.51 a year ago and the private reservation rate excluding bulk sales increased by 6.1% to 0.52 from 0.49. Bellway said customer demand was supported by good availability of mortgage finance and relative stability in mortgage interest rates during the year and overall, headline pricing has remained stable. Driven by the higher level of private reservations during the year, the forward order book at July 31 increased by 3.2% to 5,307 homes from 5,144 homes a year ago, with a value of £1.52 billion, rising 7.8% from £1.41 billion. Year-end net cash was £42 million, which Bellway said was in line with its expectations, and compared to net debt of £10.5 million a year prior. The firm continues to expect underlying dividend cover for the full financial year will be around 2.5 times, and said the strong growth in earnings will drive increased in dividend payments. Bellway added it will provide a detailed update on its capital allocation framework and targets alongside full-year results on October 14. The company said it has entered the new financial year with a healthy order book, despite ‘softer’ market conditions in recent months. For financial 2026, Bellway said it is ‘well-positioned’ to deliver further growth in volume output to around 9,200 homes ‘if market conditions remain stable’, and increase cash generation for shareholder returns. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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