Bellway builds record revenue after delivering 9,600 homes

HOUSEBUILDER Bellway has said any economic uncertainty is having no impact on demand for its homes as it reported record-breaking revenues.

Revenue rose 13pc to £2.5bn in the year to July 31, as it completed 9,644 homes, up 10.6pc on last year’s total.

The FTSE 250 company said that “customers’ appetite to purchase a new home [was] so far unaffected by any uncertainty in the wider economy”.

It has been boosted by broad availability of mortgages and the government scheme Help to Buy, which allows home hunters to buy with a 5pc deposit.

Bellway has also been snapping up land in what it described as an “attractive” market, replacing land it has used at a rate of 120pc. The average selling price of its homes rose by just 2.9pc – lower than the UK growth rate – to £260,000, due to completions of more social housing. Shares rose 19p to end at £32.19 yesterday.

Ted Ayres, the company’s chief executive, said: “A focus on delivering growth, set against a backdrop of favourable market conditions, has helped Bellway to surpass last year’s record in respect of both volume and operating margin, and further increases the group’s contribution to the supply of much-needed new homes.

“This excellent trading performance, together with additional investment in attractive land opportunities, ensures that Bellway is well placed to continue its disciplined growth strategy.”

Anthony Codling, an analyst at Jefferies, said: “Bellway’s trading update was an update of managed growth, delivering expectations and doing its bit to solve the UK housing crisis.”

‘This excellent trading performance ensures that Bellway is well placed to continue its growth strategy’