Bellway revenues expected to rise, attempt to cut affordable homes rejected

UK residential property developer Bellway plc (LON: BWY) issued its update for the full-year today, and it is expected that both revenue and profits will rise on a year-on-year basis.

The Company said that its growth strategy for FY19 had yielded strong results, with full-year revenue expected to rise 8% on-year to £3.2 billion, and profits expected grow in line with market estimates.

Bellway also noted volume growth, with completions rising 5.7% to a record level of 10,892. It said its margin continued to moderate towards a ‘more normalised’ level.

The Company boasted a strong order book of 4,878 homes and in turn potential to deliver further volume growth. They also stressed their commitment to build quality and customer care, despite having attempted – and failed – to reduce the proportion of affordable homes by 10% at the Shepherds Walk development

Bellway comments

Jason Honeyman, Chief Executive, commented,

“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 homebuilder2 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.”

Investor notes

After a slight recovery, the Company’s shares are down 2.91% or 84.00p to 2,798.00p 08/08/19 12:53 BST. Peel Hunt analysts retained their ‘Add’ stance, while Liberum Capital analysts reiterated their ‘Buy’ rating on Bellway stock. The Group’s p/e ratio stands at 6.81 and their dividend yield is 5.11%.

Elsewhere in property development and estate agency news, there have been updates from; Tritax Big Box REIT PLC (LON: BBOX), Belvoir Group PLC (AIM: BLV), Intu Properties plc (LON: INTU), LSL Property Services plc (LON: LSL) and Countryside Properties PLC (LON: CSP).