Housebuilder Bellway (LON:BWY) today released a trading statement that pointed to record revenue but cautioned a slowing housing market would impact margins.
The group completed on a record 10,307 homes during the year to 31st July as the government Help to Buy scheme drove sales of affordable housing.
The boost in sales figures helped increase revenue by 16% to just under £3 billion but margins fell from 22.3% to 22%.
CEO Jason Honeyman commented on the results:
“Bellway has responded positively to the favourable market conditions, completing the sale of over 10,000 new homes for the first time in its history, whilst retaining a clear focus on quality and customer care. In doing so, the Group has set a new earnings record and yet, having invested significantly in land, has ended the year with a strong net cash position. Trading has been robust and notwithstanding wider political and economic uncertainty in the UK, Bellway has both the financial and operational strength to respond opportunistically to future changes in market conditions”
In reaction to the update, shares in Bellway fell by over 4% in Wednesday morning trade.