Bellway warns of slowing demand for housing
Bellway has warned of slowing demand for housing as a result of “rising interest rates and wider economic uncertainty”.
The UK housebuilder today published its preliminary financial results for the year ending 31 July 2022, showing revenue up by 13 per cent to a record £3.5 billion and gross profit up by 21 per cent to £787 million.
Housing completions grew by 10.5 per cent to a record 11,198 homes, up from 10,138 in 2021 and 7,522 during the height of the pandemic in 2020.
The housebuilder said: “While Bellway entered the year with a strong forward order book, given the backdrop of rising interest rates and wider economic uncertainty, the board currently expects to deliver volume at a similar level to the prior year.
“The final outturn will be dependent on the autumn and spring selling seasons and the group will prioritise its strong disciplines in relation to both margin and quality of profit.”
Commenting on the results, Jason Honeyman, Bellway’s chief executive, said: “Bellway has delivered another strong performance.
“Our strengthened land bank and resilient balance sheet provide a platform for long-term growth and, importantly, during a period of economic uncertainty, they enable the Group to take a more cautious approach to land investment in the year ahead.
“Our long-term model is our strength and is supported by an underlying demand for new homes. Bellway’s growth will continue to be disciplined as we maintain a clear focus on the high standard of our product, margin, quality of profit and value creation.”