Bellway has said it is “encouraged” by signs of recovery in trading, after posting reduced profits and housing completions for the first half of its financial year.
The housebuilder recorded a 29.6% fall in revenue in the six months to 31 January 2024, in line with a trading update issued in February.
Home completions for the period fell to 4,092 from 5,695 homes, while underlying pretax profit plunged by more than half to £134m.
It is aiming to deliver 7,500 homes in the full financial year, compared with 10,945 homes delivered in 2023.
Its land bank comprised a total of 94,492 plots during the period, falling from 100,367 plots in the previous year.
The housebuilder said its revenue decline was driven primarily by “the lower level of private reservations”.
However, it noted that this is already shifting in the first half of its current financial year, pointing to a 15.4% rise in its private reservation rate to 105 per week.
Jason Honeyman, group chief executive of Bellway, said the housebuilder delivered a resilient performance while facing challenging trading conditions.
Honeyman noted that a “gradual reduction” in mortgage interest rates throughout the first half has “helped to ease affordability constraints”. He added that the housebuilder has been “encouraged” by the improvement in reservations.
Honeyman said: “Overall, the long-term fundamentals of the UK housebuilding industry remain attractive, given the shortage of energy efficient and affordable homes across the country.
“We remain confident that the group’s robust balance sheet and operational strength, combined with the depth and quality of our land bank, will enable Bellway to successfully navigate changing market conditions and capitalise on future growth opportunities.”
Photo © Bellway
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