Bellway has seen its revenue fall by over £1billion in the face of “challenging operating conditions” that continue to impact the group.
In its trading update for the year ending July 30, the developer reported revenue of £2.35billion, down from £3.396 the previous year.
Its house completions also fell significantly year on year, down 30% from 10,945 in 2023 to 7,654. While the average sale price also decreased from £310,306 to £308,000, Bellway said that the figure was “slightly ahead of guidance”.
The developer did say that it had seen positivity returning to the market, as mortgage rates lowered and wages increased, which is reflected in an increase in its forward order book from 4,411 in 2023 to 5,144 this year. This represents a value of £1.42billion compared to £1.2billion the previous year.
Jason Honeyman, CEO of Bellway, commented: “Bellway has delivered another resilient performance despite the continuation of challenging operating conditions during the year. This result has been achieved due to the dedication of our colleagues, subcontractors and supply chain partners.
“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 the financial year 2025, as previously guided.
“We are encouraged by the new Government’s plans to increase the supply of new homes across the country and welcome its plans to reform the planning system. Overall, the long-term housing market fundamentals are positive, and we remain confident that our robust balance sheet and operational strength, combined with the depth and quality of our land bank, will enable Bellway to successfully capitalise on future growth opportunities.”
