When house-builder Bellway reports its annual results later this year, it will show a 27% rise in sales with a mouth-watering 22% operating margin.
For the year to 31st July 2016 Bellway generated revenue of £2.2bn (2015: £1.73bn). Housing completions were up 12.5% to 8,721 (2015: 7,752), with the average selling price up 13% to £252,700.
When full results are published in October, we can expect to see operating profit topping £480m, the board indicated today in a trading update. This excludes an aextra £17.3m exceptional profit arising on the disposal of Bellway’s interest in Barking Riverside.
Chief executive Ted Ayres said: “The group has delivered an outstanding trading performance, achieving new records for Bellway in respect of both volume and operating margin. We have invested in high quality land and have maintained a significant forward order book, thereby ensuring that the group is well placed to continue its sizeable contribution to meeting the UK’s requirement for new homes in the year ahead. It is still too early to assess the effect of the EU referendum result, however trading in recent weeks has been encouraging and Bellway, with its strong balance sheet and robust land bank, can be flexible and respond opportunistically to any changes in market conditions.”
Only at the most expensive London developments have some customers shown post-Brexit anxiety and this is not a big market for Bellway. Overall, visitor numbers are still strong and the cancellation rate remains at a historic low, the company said.
On 1st August Bellway opened a 19th trading division in Durham.
This article was published on 5 Aug 2016 (last updated on 5 Aug 2016).