Bellway reported a fall in revenue and housing completions in the financial year ended 31 July 2024 due to “challenging operating conditions”.
The housebuilder reported revenue of more than £2.35bn compared with £3,396.3m in 2023 and completed 7,654 homes compared with 10,945 homes in the previous financial year.
However, the company said the private reservation rate per outlet per week increased by 10.9% in 2024 and “reflecting the improvement in trading and growth in outlet numbers”, the forward order book at 31 July 2024 increased to 5,144 homes (2023 – 4,411 homes), with a value of £1,412.9m (2023 – £1,193.5m).
Bellway said its strong land bank and “outlet opening programme” coupled with its “healthy order book and work-in-progress position” supported its plans for volume growth in the financial year 2025 and beyond.
Jason Honeyman, group chief executive of Bellway, said: “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 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.”
Earlier this week, Bellway announced it had been given a deadline extension to make an offer to acquire rival housebuilder Crest Nicholson. The original deadline was 8 August, but Bellway now has until 20 August to make an offer for Crest Nicholson or announce that it does not intend to make an offer.
In a statement, Bellway said: “Good progress has been made on reciprocal due diligence with a number of elements satisfactorily completed by both parties. However, in order to allow further time for discussions between Bellway and Crest Nicholson, to fully conclude due diligence and the negotiation of definitive transaction documentation the board of Crest Nicholson has requested, and the Panel on Takeovers and Mergers has consented to, an extension to the PUSU deadline.”
