Pre-tax profit rose 3.4% to £662.6 million from £641.1 million on revenue of £3,213.2 million (2018: £2957.7 million). Operating margin slipped to 21% from 22.1%, “moderating to a more normalised level” said the firm. Bellway said it expected margin to reduce next year due to the absence of the one off benefit of the Nine Elms scheme in London plus the absence of house price inflation combined with build cost pressures.
The Nine Elms scheme, said Bellway, this year contributed 214 completions (2018: 132) at an average selling price of £820,467 (2018: £705,567).
The firm said in a statement: “Notwithstanding the reducing proportion of revenue generated in London, the group should achieve an average selling price in the year ahead in excess of £285,000 (2019 - £291,968)."
Bellway also said it saw an all time record reservation rate in the year of 210, 5% up, following investment in new outlets.
Looking ahead, the firm has had a positive start to the new financial year with the weekly reservation rate in the nine weeks to September 29 increasing 4% to 183 (2018: 176).
Bellway says it has the capacity to deliver up to 13,000 homes per annum over the medium term from the current 22 operating divisions “and a longer term ability to expand beyond this”.
