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Bellway posted a stronger-than-expected annual pre-tax profit of GBP 289.1 million, exceeding forecasts of GBP 282.04 million, driven by strong spring season demand. The company raised its ordinary dividend by nearly 30% to 70 pence per share and announced a GBP 150 million (USD 199.2 million) share buyback. Despite robust results, it flagged a slower start to the fiscal year due to affordability pressures, high borrowing costs, and potential stamp duty changes. Bellway remains on track to complete 9,200 homes, supported by a solid order book and multiple active sales outlets.
British homebuilder Bellway reported a strong annual performance, prompting the company to increase its dividend and launch a GBP 150 million (USD 199.2 million) share buyback. The firm's underlying pre-tax profit reached GBP 289.1 million for the year ending July, exceeding analysts' expectations of GBP 282.04 million. This growth was supported by strong demand during the spring selling season, reflecting continued interest in new homes despite broader market pressures. Advertisement
Bellway raised its ordinary dividend by 29.6%, taking it from 54 pence per share to 70 pence per share. While annual results were strong, the company noted a slower start to the new fiscal year. Affordability challenges, driven by rising inflation and high borrowing costs, have affected consumer sentiment. Bellway expects government initiatives, including multi-billion-pound investments to boost housing supply, to support home completions and profit growth in the coming months.
The company also highlighted potential challenges ahead due to the possibility of stamp duty changes in the upcoming UK budget, which could affect new-home sales. These concerns mirror warnings from other major homebuilders, including Taylor Wimpey, Barratt, Redrow, and Vistry, who have all flagged a challenging start to the autumn selling season. In the ten weeks since August, Bellway's private reservation rate per outlet, including bulk sales, dropped to 0.51 from 0.60 a year earlier.
Despite these pressures, Bellway reaffirmed its target to complete 9,200 homes in the fiscal year ending July 2026. The company's confidence is supported by a strong order book, multiple active sales outlets, and measures to maintain profitability.
Source Reuters
5th Jun, 2025
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