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Housebuilder Bellway restarts dividend as new orders jump

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Big construction firms have today been warned that they risk choking smaller companies of essential building supplies amid the current global shortage of raw materials.
The group said it is “confident” that it has to platform to rake in revenue somewhere between £4bn and £4.5bn in the medium-term.

UK housebuilder Bellway has resumed the payment of its dividend after the recent surge in housing market activity helped push up forward orders by 43 per cent.

The group reported that pre-tax profit fell to £236.7 in the year ended July. That compared to £662.6 a year earlier.

However, the future is looking brighter amid pent-up demand for houses after the end of the coronavirus lockdowns of the spring.

Rising demand

Its forward order book increased 43% year-on-year. The company anticipates to increase the quantum of future dividend payments over time.

“Aside from the constraints to trading activity as a result of COVID-19, the market remained strong for good quality, affordably priced homes,” Bellway said in a statement.

It confirmed it expects to complete the sale of around 9,000 homes at an expected average selling price of around £290,000 pounds before the end of July next year.