Bellway plans further 'disciplined growth' for coming year

Housebuilder Bellway expects to increase revenues 13% and on slightly stronger profits margins for the 12 months to 31 July.

The FTSE 250 group completed the sale of 9,644 new homes, an increase of 10.6%, and achieved an average selling price up 2.9% to a record £260,000.

This was diluted by a higher proportion of lower value social housing completions, which represented almost 22% of the total, up from 16% the year before.

As previously flagged by the company, operating margins for the full year are expected to rise to slightly in excess of 22% from 22.0% the previous year.

Bellway maintained a solid forward sales position, with its year-end order book of 4,749 homes up from 4,644 a year ago and valued at £1.3bn, an increase of 16%.

Chief executive Ted Ayres said the company was focusing on delivering growth and acknowledged that it was benefiting from favourable market conditions.

"This excellent trading performance, together with additional investment in attractive land opportunities, ensures that Bellway is well placed to continue its disciplined growth strategy.”

Looking forward, Ayres and the board feel Bellway has "significant capacity for further volume growth" within its current structure and its ability to open new divisions in areas of strong demand.

"This capacity, together with a strong balance sheet, is enabling the group to continue its disciplined growth strategy and deliver further value for shareholders."