9th Feb 2023 09:20
(Alliance News) - Bellway PLC on Thursday said it completed a "record" number of homes in the six months to January 31, but it now has imposed a freeze on new recruitment due to near-term uncertainty.
The Newcastle-based housebuilder's home completions rose by just one home to 5,695 from 5,694 a year prior. The average selling price rose by 1.6% to GBP316,900 from GBP311,849.
However, Bellway blamed higher mortgage rates and the end of the UK government's Help-To-Buy programme for a 44% contraction in the private reservation rate to 91 per week from 162. The company expects its output of homes in financial year 2023 to fall by 1.8% to 11,000 from 11,198 in financial year 2022, which ended on July 31.
Looking ahead, Bellway said it has imposed a freeze on hiring new people to preserve its balance sheet, citing an uncertain near-term economic outlook. Net cash as at January 31 climbed 49% to GBP292 million from GBP195.8 million a year prior.
However, Bellway argued that "there is a shortage of high-quality, energy efficient and affordable homes across the country and Bellway will continue to play an important role in increasing housing supply in the years ahead."
Addressing rising costs, the company said: "Build cost inflation persists across the sector, particularly where energy forms a large component of the cost base, although, Bellway's strong commercial disciplines and renegotiation of terms with its supply chain partners have helped to offset some of these pressures."
The company will release its interim results on March 28.
Bellway shares were down 0.3% at 2,186.00 pence each in London on Thursday morning.
By Tom Budszus, Alliance News reporter
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