Bellway profit falls 64%, but orders surge to £1.8bn

Newcastle-based house building giant Bellway said on Tuesday its revenue fell 30.7% to £2.2 billion in the year to July 31 and profit before tax fell 64.3% to £236.7 million amid exceptional costs of £72.6 million.

However, Bellway gave investors a strong outlook and has resumed dividend payments.

The Newcastle firm reported “an encouragingly strong start to trading in the new financial year, with overall reservations up by 30.6% to 239 per week in the nine weeks since 1 August.”

Bellway reported a record forward order book at October 4 with a value of £1.8 billion compared to £1.3 billion at September 29, 2019.

Proposed total dividend per share is 50p compared to 150.4p in the previous year.

Bellway shares fell about 4% to around £25.20 to give the firm a current stock market value of just over £3 billion.

“Productivity levels are improving and are currently between 85% and 90% of those achieved in the year ended 31 July 2019,” said Bellway.

“Aside from the risk of a further, widespread national ‘lockdown’, this should help the group complete the sale of around 9,000 homes at an expected average selling price of around £290,000 for the year ending 31 July 2021.”

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