Bellway (BWY) Trading Update summary

Trading performance

• Housing completions fell to 7,654 homes, down 30.1% year-on-year, but slightly ahead of guidance.

• Average selling price was around £308,000, marginally lower due to geographic and mix changes.

• Housing revenue exceeded £2.35 billion, with underlying operating margin expected at around 10%.

• Private reservation rate per outlet per week rose 10.9% to 0.51, reflecting improved demand.

• Forward order book increased to 5,144 homes valued at £1,412.9 million, supporting growth plans.

Market conditions and outlook

• Customer confidence improved due to lower mortgage rates, stable inflation, and wage growth.

• Cancellation rate normalized to 14%, down from 18% last year.

• Outlet numbers grew to an average of 245, with 250 at year-end, aided by a strong land bank.

• Government plans to boost housing supply and reform planning are viewed positively.

• Stable market conditions and a strong order book position Bellway for volume growth in FY25.

Financial position and land investment

• Year-end net debt was £10 million, with low adjusted gearing, maintaining financial resilience.

• Contracted to purchase 4,621 plots across 27 sites, with further pipeline acquisitions in progress.

• Dividend cover expected to be around 2.5 times for the full year.

• Cost inflation on new tenders remains limited, with good supply chain availability.