The firm has seen strong demand for private homes, with an 11% rise in the private reservation rate to 151 per week (2019 – 136) and a 6% increase in the overall reservation rate to 194 per week (2019 – 183). It reports a “robust” forward sales position, with an order book comprising 4,598 homes (2019 – 4,587 homes) and a value of £1,163.1 million (2019 – £1,171.3 million).
Housing revenue rose by almost 4% to around £1,525 million (2019 – £1,471.2 million), mainly driven by the growth in housing completions. This was partially offset by a moderation in the average selling price, which decreased by 2.5% to around £286,500 (2019 – £293,832), reflecting mix changes in accordance with previous guidance. The firm saw a 4.6% increase in the average number of active outlets to 274 (2019 – 262).
Profit before tax for the full year is expected to be in line with market estimates (IRO £622 million).
The firm said that despite the political uncertainty in the latter half of 2019, customer interest remained resilient throughout the trading period. This interest has increased since the start of the calendar year, with renewed consumer optimism benefitting the housing market.
Paul Hampden Smith, Bellway chairman, comments on the figures: “Bellway continues to increase the supply of affordably priced, good value new homes, following another successful trading period in which it has achieved further volume growth.
Constructing quality homes and maintaining high standards of customer service remains a priority for the group. I am therefore delighted that Bellway continues to maintain its five-star homebuilder rating. Looking forward, a robust balance sheet, operational capacity for expansion and a strong order book should ensure that the group is well placed to deliver additional, long term volume growth, thereby continuing our disciplined growth strategy.”
