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Bellway says 'consumer confidence has returned' as housebuilder hits targets

Published 09/08/2024, 09:10
© Reuters Bellway says 'consumer confidence has returned' as housebuilder hits targets
BWY
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Proactive Investors - Bellway PLC (LON:BWY) slightly exceeded its housebuilding targets in its 2024 financial year, completing 7,654 homes against a previously set target of 7,500.

The average house sold for £308,000 in the year, which was also slightly above guidance, leading to total group revenues of £2.35 billion.

Bellway noted sequential improvements over the year as mortgage rates began to moderate and the prospect of central bank interest rate cuts began to emerge.

Jason Honeyman, Group Chief Executive, said: “While a lower starting forward order book drove a reduction in volume output, customer demand during the year has benefitted from a moderation in mortgage interest rates which has helped to ease affordability constraints and supported an increase in reservations.

“The improving trading backdrop, combined with the strength of our outlet opening programme, has generated healthy growth in the year-end order book. As a result, we are in a strong position to return to growth in financial year 2025, as previously guided.”

Honeyman said “we are encouraged” by Labour’s plans and planning reforms, which are intended to deliver 1.5 million new homes within five years.

Bellway did not make mention of its proposed merger with Crest Nicholson (LON:CRST) in today’s full-year trading update, having extended the deadline for negotiations on Thursday.

Read more on Proactive Investors UK

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