Bellway buoyant despite Brexit knock to consumer confidence

Housebuilder Bellway has posted rising half-year sales and profits, even as buyer confidence takes a knock in the face of Brexit uncertainty.

The Newcastle-based firm booked a 12.4% rise in revenue to £1.49 billion in the 26 weeks to January 31, while profit leapt 8.7% to £313.9 million.

Bellway’s average selling price rose to £293,832 from £275,945 in the period.

However, the cancellation rate rose from 11% to 13%, which the group put down to a “slight moderation in customer confidence” as a result of the uncertainty relating to the UK’s exit from the EU.

But chairman Paul Hampden Smith struck an upbeat tone.

“A long-term approach to growth that benefits all of our stakeholders Bellway has delivered another positive set of financial results driven by a strong operational performance.

“The group has achieved substantial volume growth and following ten consecutive years of rising output, the number of homes sold by Bellway has risen by almost 150%.

“Bellway retains significant capacity for further growth, both from its existing divisional structure and through the continued investment in new sites and divisions, where land opportunities meet or exceed the Group’s minimum return requirements.”

The firm saw completions rise 5.6% to 5,007 homes, and said that recent trading is positive.

The forward order book stands at £1.49 billon and Bellway has capacity to deliver up to 13,000 homes per year.