Bellway targeting “material increase” in output in 2025

Bellway is positioned to achieve a “material increase” in homes output in its 2025 financial year, following a year that has seen its profit, revenue and completions fall during the economic difficulties of 2022/23.

During the financial year ending July 31 2024, the housebuilder’s underlying pre-tax profit fell 57.5% against FY 2023 to £226.1 million, in line with expectations. Operating profit dropped 56.2% to £238.1 million.

Bellway’s total revenue decreased 30.1% to £2,380.2 million, due to a lower starting forward order book and “challenging trading conditions, particularly in the first half of the financial year”.

Its housing completions totalled 7,654 homes, significantly down on 2023’s 10,945, at an average selling price of £307,909 against 2023’s £310,306.

In line with previous guidance, the firm’s underlying operating margin was 10% during the financial year, compared to 2023’s 16%, reflecting lower volume output, cost inflation and the use of “targeted” sales incentives. These combined with higher site-based overheads in response to the slower sales market since summer 2022.

But Bellway said that if the now more stable market continued, it would be set to deliver at “least” 8,500 homes in the current financial year to July 31 2025.

This “material …