Bellway forecasts revenue hike in wake of Brexit
In a trading update for the year to July 31, the housebuilder forecast revenue to reach £2.2 billion from £1.73bn in 2015.
The company built 12.5 per cent more homes in the year to July 2016 than over the previous 12 months, and the average selling price of those houses was 13 per cent higher.
Bellway said: “Customer confidence and trading conditions have remained strong throughout the year, notwithstanding the wider economic uncertainty in the weeks preceding and following the EU referendum, in late June.”
The firm added that an environment of low interest rates and the continued presence of Help to Buy has contributed to its positivity.
“Since the result of the EU referendum, there has been some modest caution from a small number of visitors to our developments at the higher value end of the London market, where Bellway has only limited exposure,” it said.
Bellway said it has built up a “healthy” forward order book comprising 4,644 homes (2015 - 4,568 homes) at a value of £1.11bn (2015 - £1.08bn), adding that the Group is well placed to continue its long term growth strategy, whilst maintaining a focus on return on capital employed.
Ted Ayres, chief executive, said: “The Group has delivered an outstanding trading performance, achieving new records for Bellway in respect of both volume and operating margin. We have invested in high quality land and have maintained a significant forward order book, thereby ensuring that the Group is well placed to continue its sizeable contribution to meeting the UK’s requirement for new homes in the year ahead.
“It is still too early to assess the effect of the EU referendum result, however trading in recent weeks has been encouraging and Bellway, with its strong balance sheet and robust land bank, can be flexible and respond opportunistically to any changes in market conditions.”
Bellway will announce its preliminary results on October 18.