Newcastle-based housebuilder Bellway plc reported lower revenue and profit for the year as it completed fewer homes for lower average selling prices as the UK housing market struggled.
The company completed 7,654 homes in the latest 12-month period, down from 10,945 last year, at an overall average selling price of £307,909, down from £310,306 last year.
As a result, total revenue reduced by 30% to £2.38 billion, down from £3.4 billion last year, which the company said was “due to the lower starting forward order book and challenging trading conditions, particularly in the first half of the financial year.”
Underlying profit before taxation was £226.1 million, down from £532.6 million last year.
Jason Honeyman, Group Chief Executive, said: “Bellway has delivered another resilient performance despite the challenging operating conditions during the year. While a lower order book at the beginning of the financial year drove the reduction in the number of housing completions, customer demand through the second half benefitted from a moderation in mortgage interest rates which has eased affordability pressures and supported an increase in reservations.”
“The combination of these improving trading conditions and our strong outlet opening programme has generated a healthy increase in the year end order book. As a result, we are well-placed to deliver a material increase in volume output in financial year 2025.”
If market conditions remain stable, Bellway said it is targeting completions of at least 8,500 homes in the current financial year, with volume output expected to be weighted towards the first half.
Richard Hunter, Head of Markets at interactive investor, said: “Bellway will be glad to see the back of this trading period and consign the numbers to history, although current trading seems to show a marked turn for the better.”
“The current path of interest rates and mortgage affordability are both potential positives, although the measures emanating from the impending Budget seem to have had a detrimental effect on consumer confidence in advance. The group is also edging towards a quieter time of year for house buying, although it expects its revenue in the current trading period to be skewed towards the first half as the current momentum continues.”