Bellway revenue up by 12%
The FTSE 250 housebuilder Bellway built a record number of homes in the first half of the year, with its output up 6.3% to 5,321 new homes.
The company’s revenue also shot up by more than 12% to £1.72bn over the same period, up from £1.52bn the year before.
Bellway’s trading update outlined a “robust forward sales position” of 5,889 homes valued at £1.63bn. This figure is up from £1.16bn a year prior.
Bellway shares opened over 3% higher on Tuesday morning as the company’s positive trading update was reflected on the FTSE 250.
John Honeyman, chief executive of Bellway, put the company’s strong performance during the first half of the year down to strong underlying demand, despite a challenging economic environment.
“While uncertainty remains in the wider economy, the underlying demand for quality new homes remains robust and we have therefore made further, disciplined investments in attractive land opportunities,” said Honeyman.
Honeyman’s outlook for the second half of the year was positive on account of Bellway’s forward order book numbers.
“Looking forward, we have a sizable forward order book, which provides a solid platform for the second half of the financial year and beyond. In addition, our balance sheet is strong, with significant cash resources and this provides the Group with the necessary resilience and flexibility to respond positively to the evolving economic environment,” Honeyman said.
Bellway’s update comes on the back of news emerging that house prices in the UK fell in January for the first time in seven months as the government discontinued its stamp duty relief.