Bellway: Tough mortgage market sees profit before tax fall of 18 per cent
Property developer Bellway said profit before tax fell by 18.1 per cent to £532.6m, as the company continues to be impacted by tough mortgage rates which affect buyer demand.
The FTSE 250 housebuilder said revenues also dipped 3.7 per cent to £3.4bn and housing completion fell 2.3 per cent to 10, 954 new builds in the term.
As a result of the unruly buyer market Bellway said it expects the average selling price of a home in the next financial year to be around £295k down from £310k in 2023.
The company also said its was targeting the completion of around 7,500 homes down and plans to end the year with a “higher order book”.
Bellway also noted that it was continuing to trade in line with company expectations.
Jason Honeyman, group chief executive, said:”Bellway has delivered a resilient performance against a backdrop of rising mortgage interest rates and challenging market conditions.
“Looking ahead, our operational strength and experienced teams will enable the Group to successfully navigate a changing market, and we will maintain a clear focus on delivering high-quality homes to our customers and making further progress against the priorities set out in our ‘Better with Bellway’ sustainability strategy. “
He added: “The depth of our land bank and robust balance sheet provide ongoing strategic flexibility and scope for outlet growth in the year ahead.
“Notwithstanding the near-term market challenges, Bellway remains very well-placed to capitalise on future growth opportunities and to continue creating long-term value for all our stakeholders.”