Housebuilder, Bellway, has announced that it has delivered a “record” number of housing completions during its financial year, but with margins set to be lower.
Ahead of its full year results due to be announced on October 15, the housebuilder said that during the year to July 31 2019, its housing completions rose 5.7% to 10,892 against the equivalent period in 2018.
The housebuilder saw “substantial growth” in housing revenue, increasing by more than 8% to almost £3.2bn, mainly driven by volume growth and also by a 2.5% rise in its average selling price to £292,000, due to “further changes in product and geographical mix”.
Bellway said it expected pre-tax profit to be in line with current market estimates. But its operating margin would see “further moderation” from the 21.5% reported at its half year. This is against the 22.1% reported for FY 2018.
Bellway explained: “As previously reported, whilst the pricing environment remained firm, the margin enhancing benefit of house price inflation continues to diminish.”
During its full year, the firm opened an additional 110 new sales outlets, trading from an average of 268 active sites against 2018’s 247. Accordingly, its average weekly reservation rate lifted 5% to 210 per week (2018 – 200 per week).
Jason Honeyman, Bellway’s CEO said, “Bellway has concluded another successful year, further increasing the supply of much needed new homes and delivering a record number of housing completions.
“Quality and customer care remain a priority for the business and this has helped the group achieve recognition as a five-star homebuilder for the third year in succession. Trading conditions remain stable and customer confidence is resilient. This, together with a strong forward order book and a healthy balance sheet, ensures that Bellway is well placed to continue its long term growth strategy.”