October 15, 2019 @ 16:05 by Steven Hugill
A North East-headquartered housebuilder says it has solid foundations to deliver future success after smashing a sales record.
Bellway says it is “well placed to deliver long-term volume growth” following a strong year that delivered best-ever revenue and profit on the back of increased demand.
Latest results, released today (Tuesday, October 15), show the company chalked up sales of 10,892 homes in the year to July 31.
Bosses at the firm, headquartered in Seaton Burn, Newcastle, say the figure was 5.7 per cent higher than the previous year’s 10,307 and reflective of favourable market conditions, wherein strong demand was maintained by the Government’s Help to Buy scheme and low interest rates.
Furthermore, the company says it has been buoyed by a strong start to its new financial year, with its weekly reservation rate in the nine weeks to September 29 increasing by four per cent to 183.
According to Bellway’s annual results, revenue was 8.6 per cent better off at £3.2 billion, with gross profit 4.3 per cent higher at £790.2 million.
Pre-tax profit increased 3.4 per cent to £662.6 million.
Reflecting on its progress and future ambitions, chairman Paul Hampden-Smith said the builder was in a strong position.
He said: “The group delivered another positive set of results, consistent with its long-term growth strategy and in doing so, achieved record volume, revenue and profit.
“In this tenth consecutive year of volume growth, we completed the sale of 10,892 homes, thereby making another substantial contribution to addressing the housing shortage in the UK.
“Importantly, growth was achieved alongside a continued prioritisation of both build quality and customer care. For the third year in succession, the group was recognised as a five-star homebuilder, which is a testament to our significant and continued efforts in this crucial aspect of the business.
“The ongoing imbalance between supply and demand for affordably priced, good-quality housing remains across many parts of the country.
“Additionally, strong demand for new homes has continued to be supported by the ongoing availability of Help to Buy, together with an environment of low interest rates.
“We continue to draw upon these favourable market conditions, retaining our clear strategy to deliver long-term and disciplined volume growth.”
Bellway has developments across the UK, with its North East estates including Moorfields, in Killingworth; Arcot Manor, in Cramlington; and Byron Heights, on the outskirts of Seaham, County Durham.