Bellway delivers 'another strong trading performance'

Housebuilder Bellway said on Tuesday that it had delivered "another strong trading performance" between 1 February and 5 June, with solid sales demand and ongoing positive price momentum continuing to offset cost inflation.

Bellway stated it had made an average of 253 reservations per week during the period, up 5.9% from 239 at the same time a year earlier, and also said it had made further investments into high-quality land opportunities, with 13,496 plots contracted since 1 August, a slight reduction from the 16,582 plots contracted in 2021 but up from the 10,079 plots contracted in 2020.

Bellway also highlighted its "strong" balance sheet and net cash position of £160.0m, stating it provided the group with "financial resilience" and the capacity to invest for further growth.

The FTSE 250-listed group also said it was in a "substantial forward sales position", with the value of its order book rising by 27.3% to £2.40bn and comprising 8,152 homes, up from 6,763 homes at the same time a year prior.

Consistent with previous guidance, housing completions for the full year were still expected to grow by around 10% to more than 11,100 homes at an anticipated average selling price in excess of £305,000. Bellway's underlying operating margin was expected to be around 18.5%, up from 17.0% on 31 July 2021.

Chief executive Jason Honeyman said: "Bellway has delivered another strong trading performance and despite the wider macroeconomic uncertainty, the group continues to perform well. Demand is strong, reservations are ahead of last year and our order book remains substantial. Customer satisfaction is high and we enjoy continued success as a five-star homebuilder, as recognised in the HBF's Customer Satisfaction survey.

"The positive sales market and the further investment we have made in land provides a strong platform to enable the group to continue its growth strategy in the years ahead."

As of 0935 BST, Bellway shares were up 3.12% at 2,278.0p.

Reporting by Iain Gilbert at Sharecast.com