Bellway FY completions, profits rise in challenging market

(Sharecast News) - Bellway said on Tuesday that it built more homes than expected in the year to the end of July, but also cautioned that the near-term outlook remained uncertain as it called on the government to introduce an immediate cut to stamp duty to boost demand. Total housing completions rose 10.8% to 9,695, coming in above the company's previously guided range of 9,300 to 9,500 homes, mainly driven by a strong conversion from its bulk sales pipeline.

The proportion of private completions was 79% of the total, in line with the previous year, and the average selling price rose to around £324,000 from £316,412. This was driven by geographic and mix changes, with no underlying house price inflation, Bellway said.

Adjusted operating cashflow improved to over £850m from £638.9m in 2025, above the group's previously guided range of £750m to £800m. Bellway ended the year with net cash of £157.7m, versus £41.8m a year earlier, and a low level of adjusted gearing of less than 5%, down from 8.3%.

Housing revenue ticked up 13% to £3.14bn and Bellway said it expects full-year operating profit of around £320m, at the lower end of the guided range but up from £303.5m a year earlier. However, the adjusted operating margin is expected to fall to around 10% from 10.9% due to the increased proportion of lower margin bulk sales in the year.

Bellway said the forward order book reduced to 4,206 homes at the end of July, from 5,307 a year earlier.

The housebuilder said customer demand throughout the autumn was hit by uncertainty ahead of the Budget. While there was an improvement in trading in the early part of the spring selling season, customer demand has moderated since April in response to rising mortgage rates.

Chief executive Jason Honeyman said: "Bellway has delivered a robust performance and growth in volume output, despite ongoing headwinds for our industry. Our sharp focus on operational improvement and drive for capital efficiency has provided resilience and supported a strong increase in cash generation and shareholder returns.

"The board remains confident that, with supportive market conditions, Bellway is in a strong position to capitalise on future growth opportunities. However, with the near-term outlook remaining uncertain, we call on the Government to act now to improve access to housing across all tenures, both by helping first-time buyers onto the property ladder and supporting the delivery of affordable and social housing for those who need it most.

"In order to ease affordability constraints and stimulate demand, an immediate reduction in Stamp Duty alongside a Government-backed deposit support scheme for first-time buyers would both drive economic growth and accelerate the delivery of much-needed new homes across the country."

See latest RNS on Investegate