Bellway cheers sales boost - but warns on Middle East

A housebuilder has hailed its resilience in a “challenging” market after notching higher sales – but warned the Middle East conflict could yet knock its progress.

Bellway saw completions rise 2.7 per cent to 4702 homes in the six months to January 31.

Bosses say the uptick defied pre-Budget jitters, with the firm chalking up a “notable increase” in buyer demand across January that helped nudge underlying operating profit 1.5 per cent higher to £159 million.

They add the clamour – allied to a 5311-home forward order book – leaves the Newcastle-headquartered builder primed to record annual underlying operating profit of between £320 million and £330 million, with annual output now expected to exceed previous guidance and reach as many as 9500 homes.

However, the business, which has developments across England, Scotland and Wales, warned clashes in the Middle East risk choking buyer interest and adding inflationary cost pressures to its balance sheet.

Jason Honeyman, chief executive, said: “We have delivered a robust first half performance in a challenging market.

“Customer demand was impacted by a prolonged period of uncertainty ahead of the Budget in late November (and) while we did not experience a typical seasonal step-up in reservations during the autumn, trading was stable and followed by a notable increase in January.

“At this stage, the situation in the Middle East has not had a material impact on trading, (but) the ongoing conflict heightens the risk of both inflationary cost pressures and an impact to customer demand.

“The business has a strong balance sheet and land bank and, under stable market conditions, is well-positioned to continue delivering volume growth and much-needed new homes in the years ahead.”

Bellway’s developments include Meadowcroft, in Longframlington, Northumberland, and The Old Foundry, in Wolsingham, County Durham.

Its national portfolio also comprises estates such as Dalmore Grange, in Midlothian; Bishops Gate, in Beverley, East Yorkshire; Lucas Green, in Solihull; Tattenhoe Meadows, in Milton Keynes; and Parc Mawr, in Swansea.

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