Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Bellway housing revenue tops £1.25bn in first half

(Sharecast News) - Bellway said in a trading update on Friday that its half-year housing revenue topped £1.25bn, consistent with its projections. The FTSE 250 housebuilder said that despite a decrease in total housing completions to 4,092 homes, the average selling price held firm at £309,300.

It said it had strategically maintained headline pricing while leveraging targeted sales incentives to attract customers and secure reservations, navigating challenges posed by build cost inflation, which moderated during the period.

A notable surge in private reservations, with a 15.4% increase to 105 per week, underscored growing customer interest, further buoyed by a reduction in mortgage interest rates.

The company said it was capitalising on that momentum, opening 34 new outlets during the period and planning over 40 additional outlets in the latter half of the financial year.

Despite a decrease in the forward order book, attributed to a higher expected weighting of housing completions in the first half of the fiscal year, Bellway remains optimistic about volume recovery.

Its net cash position fell to £77m from £292.5m, but its said it had a low adjusted gearing, including land creations, of 5%.

"Bellway has delivered another resilient performance in a period of challenging trading conditions," said group chief executive officer Jason Honeyman.

"While the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates through the first half has eased affordability constraints and we are encouraged by the seasonal pick-up in customer leads and an improvement in reservations since the start of the new calendar year.

"We have maintained balance sheet resilience and, supported by the strength of our land bank, Bellway remains well-placed to capitalise on future growth opportunities and will continue to play an important role in increasing housing supply in the years ahead."

At 0816 GMT, shares in Bellway were flat at 2,180p.

Reporting by Josh White for Sharecast.com.

Share this article

Related Sharecast Articles

Billionaire Issa nearing deal to sell Asda stake to TDR Capital - report
(Sharecast News) - US private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
Billionaire Issa nearing deal to sell Asda stake to TDR Capital
(Sharecast News) - Private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
DS Smith tumbles as Mondi abandons pursuit
(Sharecast News) - DS Smith tanked on Friday after Mondi said it would not be making an offer for the rival packaging group, clearing the path for a takeover by International Paper.
Eqtec agrees amendment to Verde subscription
(Sharecast News) - Waste-to-energy technology developer Eqtec updated the market on the Verde Corporation subscription on Friday, confirming that an amendment to the subscription letter had been agreed upon with Verde.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.