Bellway in house price warning as it passes 10,000 sales milestone
In a trading update ahead of its full results, the FTSE-250 builder said it has sold 10,307 homes during the year ended July 31, the first time the company has sold more than 10,000.
Total revenues grew 16%, year-on-year, to a record of almost £3 billion, while the value of the company’s forward order book, or home sales which have been agreed off-plan, also nudged higher, from £1.29bn to £1.3bn.
However, the company, which this week launched a new division in the East of Scotland, warned that there would be “more moderate” growth in house prices in the year ahead.
Bellway’s shares fell by 38p on the announcement to 2939p.
Jason Honeyman, Bellway’s newly-appointed chief executive, said: “Bellway has responded positively to the favourable market conditions, completing the sale of over 10,000 new homes for the first time in its history, whilst retaining a clear focus on quality and customer care.
“In doing so, the group has set a new earnings record and yet, having invested significantly in land, has ended the year with a strong net cash position.
“Trading has been robust and notwithstanding wider political and economic uncertainty in the UK, Bellway has both the financial and operational strength to respond opportunistically to future changes in market conditions.”