National house builder publishes "strong" annual performance

Bellway has issued a Trading Update for the six months ended January 31 2022 ahead of its Interim Results announcement in March 2022.

The Group is benefitting from ongoing investment in land to facilitate further growth in the years ahead, with 8,660 plots contracted (2021 - 8,848 plots), across 45 sites (2021 - 54 sites), at attractive rates of return.

The average selling price rose by 2.8 per cent to £311,800 (2021 - £303,206) and is now expected to be over £300k for the full financial year (July 31 2021 - £306,479), an improvement compared to previous guidance, driven by mix and pricing benefits.

Market conditions and customer confidence are strong. Our substantial order book and land bank provide a solid platform for volume growth and improving margin in the current financial year and beyond.

Bellway remains on track to increase output by around 10 per cent this financial year, with further growth in financial year 2023 to around 12,200 homes.

Jason Honeyman, chief executive, commented: “Bellway has delivered a strong first half performance, achieving record volume output and housing revenue, notwithstanding the wider economic challenges presented by labour, material and fuel shortages and COVID-19 related absenteeism.

“We have continued our disciplined investment in land and enter the second half of the financial year with a strong order book and a backdrop of ongoing, positive trading conditions.

“Going forward, Bellway is on track to deliver its target volume growth of around 10 per cent this financial year and further growth to around 12,200 homes in financial year 2023. Thereafter, our strong balance sheet and capacity to invest positions the Group well to continue its long-term and disciplined growth strategy.”