Bellway profit £641m on revenue of £2.96bn

Newcastle-based house building giant Bellway said its profit before tax rose 14.3% to £641.1 million and revenue increased 15.6% to £2.96 billion in the year ended July 31, 2018.

Proposed total dividend per share will rise 17.2% to 143p.

The company’s shares edged 2% higher to around 2,888p to give the firm a current stock market value of roughly £3.5 billion, according to Bloomberg data.

Bellway completed the sale of 10,307 new homes, up from 9,644.

The firm said it had a strong order book with a value of £1.47 billion at September 30, up from £1.36 billion at the same time last year.

Bellway continued to expand its workforce, employing an average of 2,808 employees, an increase of 10.4%.

The company estimates that it supports 27,000 to 32,000 jobs directly and indirectly through subcontractors and the group’s supply chain.

Bellway CEO Jason Honeyman said: “This strong order book, together with a net cash position at 31 July, ensures that the group is in a position to respond positively to opportunities as they arise.

“The board are mindful that the forthcoming exit from the EU in March could pose a threat to consumer confidence during the busy spring selling season.

“Assuming that market conditions remain unchanged, however, this healthy position should enable Bellway to further increase output in the year ahead.

“Thereafter, the board still see opportunities for growth in areas of high demand.

“Our new Eastern Counties and London Partnerships divisions provide the platform to increase the group’s capacity to some 13,000 homes per annum.

“Taken together with our positive initiatives to help protect the margin in the future, Bellway’s ongoing strategy for growth should deliver further sustainable, long term returns for shareholders.”