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Bellway hits record sales in ‘favourable’ market
House builder Bellway has hailed “favourable” conditions as it revealed record numbers of home sales.
The Newcastle-headquartered firm said in a trading update that it had reached agreement on 10,307 residential units in the year to 31 July 2018.
This represented a 7% rise from the prior 12 months – and is the first time the house builder has got into five-digit annual sales.
Revenue was up 16% to £3bn according to the update, while operating margin remained broadly flat at 22%.
Jason Honeyman, chief executive at Bellway, said: “Bellway has responded positively to the favourable market conditions, completing the sale of over 10,000 new homes for the first time in its history, while retaining a clear focus on quality and customer care.
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“In doing so, the group has set a new earnings record and yet, having invested significantly in land, has ended the year with a strong net cash position.
“Trading has been robust and notwithstanding wider political and economic uncertainty in the UK, Bellway has both the financial and operational strength to respond opportunistically to future changes in market conditions.”
The firm said that despite the recent hike by the Bank of England, interest rates remained at low levels, while the Help to Buy subsidy scheme continued to boost demand.
“There remains an underlying requirement for additional, good quality and affordably priced new housing,” said the statement.
Bellway said it remained “selective and disciplined” in its approach to land buying.
“The group has contracted to purchase 12,962 plots across 100 sites with a focus on acquiring land in desirable locations with high demand, where the product is affordable in the context of localised market conditions,” the company said.
Bellway will release its full results for the year on 16 October.
