Housebuilder reports 13% increase in turnover and increase in completions despite planning restricting outlet openings
Bellway said it has increased revenue to a record 拢3.5bn, despite the planning system remaining 鈥渟low鈥�.
The giant housebuilder, in a trading update for the year to 31 July, reported a 13% increase in revenue for the year from 拢3.1bn to 拢3.5bn.
It said it grew its housing completions by 10.5% to 11,198 homes, up from 10,138 the previous year, while its average selling price increased 2.6% to 拢314,400.
Bellway however said the planning system has restricted its opening of outlets, with the housebuilder operating from 235 sites as of 31 July, compared with 254 the previous year and 276 in 2020.
It said: 鈥淭he planning system remains slow, constrained by a covid-related backlog and increasing complexities around biodiversity and nutrient neutrality regulations. This has continued to restrict the pace of outlet openings across the wider sector鈥�.
However, the firm said its 鈥減roactive鈥� land investment means it should be able to grow its number of outlets in the year ahead. Bellway invested 拢1.3bn in 19,089 new plots in the year.
Bellway said the cost of meeting the fire safety developer pledge, under which it has said it would fix life-critical fire safety issues on its own blocks over 11m going back 30 years, remains unchanged at around 拢300m, which is on top of 拢186.8m already set aside for fire safety.
The housebuilder also said it increased its underlying operating margin from 17% to 18.5%. The short trading update gave no indication about pre tax profit for the year.
Bellway鈥檚 preliminary results will be published on 18 October.
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