10th Aug 2021 10:07
(Alliance News) - Bellway PLC on Tuesday reported strong growth in revenue for its recently ended financial year, as strong demand allowed for a rise in home completions, leading to double digit growth in revenue.
For the year ended July 31, the Newcastle-based residential property developer said the number of housing completions rose 31% to 10,138 from 7,522 the year before. However, this number reflected a % drop from 10,892 for the 2019 financial year.
As a result, total revenue grew 41% year-on-year to around GBP3.1 billion from GBP2.20 billion the prior year, but down 2.5% from GBP3.18 billion from the 2019 financial year.
The revenue growth was driven by a recovery in volumes output, while the overall average selling price rose 4.4% to GBP306,000 from GBP293,054. Looking ahead, Bellway expects the average selling price to moderate to around GBP290,000 for the year ending July 31, 2022.
Bellway also noted a private reservation rate of 169 per week, a 20% rise compared to 141 the year before, and up 5.6% from 160 for the 2019 financial year.
Looking ahead, as at July 31, Bellway has a forward order book with a record value of GBP2.02 billion, up 15% from GBP1,760 billion the prior year, equating to 7,082 homes.
"Bellway has delivered a strong performance, with volume output once again above 10,000 homes and housing revenue approaching 2019 levels," said Chief Executive Jason Honeyman.
"Going forward, we are in an excellent position to continue our long-term growth strategy. The Group benefits from a substantial order book and a robust balance sheet. In addition, our record investment in land and the resultant strengthened land bank provides a strong platform for both volume growth and further margin recovery in the years ahead," Honeyman added.
Shares in Bellway were down 0.2% at 3,305.00 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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