Record completions for Bellway

Bellway has issued a trading update for the six months ended January 31 2020 revealing a record first half volume output with the completion of 5,321 new homes (2019 – 5,007), a rise of 6.3%.

The firm has seen strong demand for private homes, with an 11% rise in the private reservation rate to 151 per week (2019 – 136) and a 6% increase in the overall reservation rate to 194 per week (2019 – 183). It reports a “robust” forward sales position, with an order book comprising 4,598 homes (2019 – 4,587 homes) and a value of £1,163.1 million (2019 – £1,171.3 million).

Housing revenue rose by almost 4% to around £1,525 million (2019 – £1,471.2 million), mainly driven by the growth in housing completions. This was partially offset by a moderation in the average selling price, which decreased by 2.5% to around £286,500 (2019 – £293,832), reflecting mix changes in accordance with previous guidance. The firm saw a 4.6% increase in the average number of active outlets to 274 (2019 – 262).

Profit before tax for the full year is expected to be in line with market estimates (IRO £622 million).

Bellway chairman Paul Hampden Smith said:

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