Bellway sees FY housing revenue up 27%

Home builder Bellway said it expected full year housing revenue to increase by around 27% to £2.2bn with a 12.5% increase in the number of housing completions to 8,721.

In a trading statement, the company said it also a record pre-exceptional operating margin, which is expected to rise by around 150 basis points to approach 22%.

The forward order book also looks positive, with 4,644 homes with a value of £1.1bn compared with 4,568 homes valued at 1.08bn last year.

“It is still too early to assess the effect of the EU referendum result, however trading in recent weeks has been encouraging and Bellway, with its strong balance sheet and robust land bank, can be flexible and respond opportunistically to any changes in market conditions,” said chief executive Ted Ayres.

“Customer confidence and trading conditions have remained strong throughout the year, notwithstanding the wider economic uncertainty in the weeks preceding and following the EU referendum, in late June. This has been supported by an environment of low interest rates and the continued presence of Help to Buy, contributing to good availability of affordable mortgages.”

“The group has taken an average of 169 reservations per week (2015 – 153 per week), an increase of over 10% compared to last year. Since the result of the EU referendum, there has been some modest caution from a small number of visitors to our developments at the higher value end of the London market, where Bellway has only limited exposure. Overall, visitor numbers are still strong and the cancellation rate remains at a historic low.”