Results round-up

FTSE 250 housebuilder Bellway reported a rise in full-year profit as it lifted its dividend and said demand has remained solid despite the Brexit vote.

In the year to the end of July, pre-tax profit rose 40.6% to £497.9m on revenue of £2.24bn, up from £1.77bn. Earnings per share increased to 328.7p from 231.5p the year before.

The number of homes sold rose by 12.5% to 8,721, which was a new record and the group’s seventh successive year of volume growth. Meanwhile, the average selling price was up 12.9% to £252,793.

The company lifted its total dividend per share to 108p from 77p the year before.

Bellway said demand for new homes remained robust throughout the year, with an average of 169 reservations per week, up 10% compared to last year. In addition, it said interest in new sites has been encouraging, with overall visitor numbers ahead of the prior financial year, while 'hits' to the company’s website continued to grow.

The group said that although the Brexit vote has cast some uncertainty with regards to the wider economic outlook, reservations net of cancellations since the referendum until the end of July were 13% higher than the same period a year ago.

Bellway said the Bank of England's monetary policy response should help to maintain the favourable conditions in which customers are able to purchase a new home.

It also said the Help to Buy scheme remains an important government stimulus and has been used in 32% of reservations, up from 27% in 2015.

Chairman John Watson said: “The long term outlook continues to be positive, supported by strong customer demand, a substantial forward order book and favourable trading conditions across all areas of the country where Bellway operates.

“Whilst there is some uncertainty following the result of the EU referendum, trading since that date has remained resilient. Bellway has invested significantly in high quality land opportunities and infrastructure over recent years. As a result, with its strong balance sheet and structure of nineteen operating divisions, the group is well placed to deliver additional value for shareholders through further disciplined volume growth in the current financial year."

Brokerage Numis said the results were strong and slightly above its estimates.

In a strong finish to the year, online fashion retailer Asos reported a bigger full year profit than the market expected and announced it would accelerate its growth investment plans.

Revenues in the year to 31 August of £1.45bn and retail sales of £1.4bn were both up 26% on the previous year and beat analyst forecasts thanks to fourth quarter retail sales growth of 33%, up from the 25% in the previous nine months.

Sales momentum accelerated the fastest in the US, which management said followed its decision to invest in both price and proposition improvements, using the resources freed up from its exit from China in May.

Although the sales mix benefitted from more full price items this year, the price investments in the US, Europe and RoW saw gross retail margin decrease by 30 basis points to 48.5%.

Nevertheless, underlying profit before tax rose 37% to £63.7m, beating the consensus of £62.3m, with earnings per share from continuing operations up 42% to 61.8p.

Taking account of the exit from its Chinese operations, which incurred an operating loss before tax of £3.6m and one-off exceptional closure costs before tax of £6.5m, EPS fell 34% to 29.3p.

Asos had £173.3m of cash in the bank, up 45% on a year ago.

"Given the increasing momentum within the business, we have decided to accelerate investment in both logistics and technology capabilities to ensure we capture the growth opportunities available to us," the company said, guiding to capital expenditure of £120-140m in the new financial year up from £87m.

This included technology, such as new systems, finance, and global fulfilment, a head office refurbishment, and better logistics at Barnsley and its Eurohub 2 warehouse.

Growth in sales is expected to remain in the previously guided range of 20-25%, with margins remaining broadly stable as it reinvests.