UK homebuilder reports positive results
By Sarah Ann McCay15 October 2013
Bellway announced increases across the board with its preliminary results for the financial year ended 31 July, 2013, citing new government Help to Buy schemes and improved consumer confidence as central to its success.
The UK homebuilder saw profit jump 34% to £140.9 million (€167 million), compared to £105.3 million (€125 million) in 2012.
The group delivered a 31.8% increase in operating profit to £151.1 million (€178 million), up from £114.6 million (€135 million) for the year before, while its operating margin sat at 13.6%, compared with 11.4% in 2012.
Bellway chairman John Watson said, "More favourable mortgage conditions, a gradual improvement in consumer confidence, together with a continuing programme of site openings, have allowed the group to deliver its fourth consecutive year of earnings growth."
The builder sold 5,652 houses in 2013, compared to 5,226 the previous year, an increase of 8.2%
Average selling price also increased to £193,025 (€228,000), up 3.4% on 2012’s average price of £186,648 (€220,000).
Housing revenue in the year also rose by 12% to £1,091 million (€1.3 billion), up from £975.4 million (€1.15 billion) in 2012. The company reported a total revenue of £1,110.7 million (€1.3 billion), up 11% on 2012’s figure of £1,004.2 million (€1.18 billion).
Looking ahead, the company expects reservations to remain ahead of last year, as demand remains strong in most areas of the country.
Bellway has since opened two new divisions, in Manchester and in the Thames Valley, with effect from 1 August, 2013. Watson said this increased operational capacity coupled with an order book of over £1,004.2 million (€760 million) at 29 September 2013 meant that, subject to construction delivery, Bellway was well placed to increase the rate of volume growth in the year ahead further.