Bellway’s completions ahead of guidance

Bellway’s full year completions are slightly ahead of guidance at 7,654 homes, with the housebuilder acknowledging the volume decline against 2023 but seeing trading “gradually improve”.

The housebuilder’s previous volume guidance for its year ending July 31 2024 was “around 7,500 homes”. In a trading update today (August 9) ahead of its full year results expected on October 15, the business said completions were still 30.1% lower than FY 2023.

The decrease, it explained, reflected its lower forward order book as it entered its 2024 financial year and “softer” trading conditions in the first half.

The overall average selling price fell marginally to around £308,000 (2023: £310,306).

Bellway’s housing revenue during the year was “over” £2.35 billion compared to last year’s £3,396.3 million.

It expects its underlying operating margin to lower, from 2023’s 16% to around 10%, driven by lower volumes and, as previously reported, an expected decrease in site profitability thanks to cost inflation, sales incentives and the costs of operating outlets for extended durations.

Meanwhile, Bellway’s private reservation rate per outlet per week during the financial year rose 10.9% to 0.51. This was delivered from an average of 245 outlets, higher than 2023’s 238.