Bellway has completion boost
A record number of housing completions was delivered by Bellway in the year ending July 31 2019 with 10,892 homes completed, 5.7% rise from 10,307 last year.
Pre-tax profit rose 3.4% to £662.6 million from £641.1 million on revenue of £3,213.2 million (2018: £2957.7 million). Operating margins saw a slip to 21% from 22.1%. Bellway said it expected margin to reduce next year due to the absence of the one off benefit of the Nine Elms scheme in London plus the absence of house price inflation combined with build cost pressures.
The Nine Elms scheme this year contributed 214 completions compared to 132 in 2018 at an average selling price of £820,467 compared to £705,567 in 2018. “Notwithstanding the reducing proportion of revenue generated in London, the group should achieve an average selling price in the year ahead in excess of £285,000 (2019 – £291,968),” said the Bellway statement.
Bellway reported an all time record reservation rate in the year of 210, 5% up, following investment in new outlets.
The housebuilder has had a positive start to the new financial year with the weekly reservation rate in the nine weeks to September 29 increasing 4% to 183 from 176 last year.
Bellway says it has the capacity to deliver up to 13,000 homes per annum over the medium term from the current 22 operating divisions “and a longer term ability to expand beyond this”.