8th Aug 2019 10:19
(Alliance News) - Bellway PLC said on Thursday it expects profit for its recently ended financial year to be in line with market estimates, and it also forecasts a rise in revenue.
In the year ended July 31, revenue is expected to rise by over 8% to GBP3.20 billion following the property developer's "successful delivery" of its growth strategy.
The company expects a pretax profit of GBP644.0 million, in line with market forecasts, which would be 0.5% higher than the GBP641.1 million it achieved in financial 2018.
The group added 585 new homes, representing the tenth successive year of increased output, it said. The average weekly reservation rate rose by 5% to 210 from 200 after the company invested in 110 new sales outlets. The company now trades from 268 active sites, up from 247 in 2018.
Bellway said the trading environment was favourable, with low-interest rates and the government's help to buy scheme ensuring "strong underlying demand for good quality new homes".
Looking ahead, the company said the forward order book, which comprises of 4,878 homes at a total value of GBP1.22 billion, will ensure further growth in financial 2020.
Chief Executive Jason Honeyman said: "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 homebuilder 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."
Shares in the company were down 3.0% at 2,795.00 pence each in London on Thursday morning.
Related Shares:
Bellway