13th Oct 2026 09:28
(Alliance News) - Bellway PLC on Tuesday reported full-year results in line with guidance but cautioned customer demand remains constrained by economic uncertainty and higher mortgage rates.
The Newcastle upon Tyne, England-based housebuilder reported pretax profit of GBP270.2 million in the financial year that ended July 31, up 22% when compared to GBP221.9 million the year prior.
Operating profit increased 5.6% to GBP320.6 million from GBP303.5 million, in line with guidance provided in August.
Revenue rose 14% to GBP3.16 billion from GBP2.78 billion. Housing completions grew 11% to 9,695 from 8,749 as per August's guidance.
Underlying operating margin shrank to 10.1% from 10.9%.
Basic earnings per share increased 25% to 166.1 pence from 132.8p.
Chief Executive Jason Honeyman said it was a "robust performance, growing both volume output and profits despite ongoing challenges across the housing market".
Shares in Bellway were up 2.1% at 2,026.00 pence each in London on Tuesday.
Honeyman welcomed the UK government's proposed 'Your First Home' scheme, which he said has the potential to provide "significant" support for first-time buyers.
Chancellor of the Exchequer John Healey is expected to provide further details on the scheme in the UK government budget on October 28.
For the recent financial year, the private reservation rate per outlet per week, including bulk sales, was 0.55, down on-year from 0.57.
In the nine weeks since August 1, Bellway said the private reservation rate per outlet per week, including bulk sales, was 0.50 compared to 0.51 for the same period a year ago.
Bellway traded from an average of 238 outlets, down from 246 in the prior year, in line with expectations.
The dividend was boosted 7.1% to 75.0p per share from 70.0p. This includes a final payout of 52.0p per share, up from 49.0p.
In addition to the dividend, Bellway also intends to return GBP150 million to shareholders through a share buyback programme during financial 2027. On Tuesday, it increased the size of the first tranche of this buyback, which started in September, to GBP75 million from GBP50 million.
Looking ahead, Bellway said customer demand remains constrained by economic uncertainty and affordability pressures, with mortgage interest rates above prior-year levels.
It is targeting total completions of between 9,000 and 9,400 in FY27, at best down 3.0%, and expects the underlying operating margin to reduce further.
Bellway currently expects the overall average selling price for FY27 to be similar to the FY26 level at around GBP325,000.
By Jeremy Cutler, Alliance News reporter
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