Bellway has reported internet debt of £57m in its newest buying and selling replace for February-June, in contrast with £42m in internet money for a similar interval in 2023.
In a buying and selling replace, the housebuilder stated its debt worth – money and money equivalents, minus debt financing – mirrored regular working capital necessities to ship its development targets in the course of the present monetary yr ending 31 July.
Bellway additionally introduced it was on monitor to ship round a 3rd fewer houses than within the final monetary yr – focusing on 7,500 houses, down from 10,945.
Regardless of a tough short-term image, the housebuilder forecasted that it could return to development within the 2025 monetary yr as demand for housing creeps up from current lows.
Its ahead order guide elevated from 4,411 houses at first of the monetary yr to five,346 as of final Sunday (2 June). This nonetheless represents a fall from this time final yr, when Bellway reported an order guide of 6,172 houses.
Wage will increase and calming mortgage rates of interest and shopper worth inflation is bettering the affordability of housing, administrators wrote.
They stated: “The long-term housing market fundamentals stay optimistic, and we’re hopeful these will probably be bolstered by higher readability over planning and housing coverage past the upcoming normal election.”
The agency additionally reported good availability of constructing supplies and subcontractors, with value inflation on new tenders much less pronounced than lately.
Nevertheless, Bellway famous its revenue within the close to future will nonetheless be impacted by earlier value inflation on ongoing tasks.
It additionally predicted a short-term influence on buying and selling resulting from political campaigning forward of the 4 July normal election.
Bellway chief govt Jason Honeyman stated: “We reiterate our confidence that the group’s strong steadiness sheet and operational energy, mixed with the depth of our land financial institution, will allow Bellway to efficiently capitalise on future development alternatives.”
The agency’s full-year outcomes, protecting the monetary yr to 31 July 2024, are anticipated on 9 August.
