Bellway Rises Following FY Statement, Warning Of Further Volume And Margin Drops
The post Bellway Rises Following FY Statement, Warning Of Further Volume And Margin Drops appeared on BitcoinEthereumNews.com. Photographer: Hollie Adams/Bloomberg © 2021 Bloomberg Finance LP Shares in homebuilder Bellway edged higher on Tuesday despite warnings that volumes and margins will continue to slide this year. At £21.80 per share, Bellway’s share price was 0.9% higher on the day. Bellway — which is one of the UK’s top five housebuilders – saw revenues drop 3.7% in the 12 months to July, to £3.4 billion. Completions fell to 10,945 homes from 11,198 a year earlier, while average selling prices dipped to £310,306 from £314,399 previously. The company’s underlying operating margin fell by 2.5% over the year to 16% due to higher build costs, extended site durations caused by slower reservation rates, and the increased use of selling incentives. These factors meant that underlying operating profit slipped 16.7% to £543.9 million. Underlying pre-tax profit dropped 18.1% year on year to £532.6 million. Sales across the housebuilding sector have slumped as the Bank of England has steadily raised interest rates to tame inflation. Property listings company Rightmove announced this week that total home sales in the UK have dropped 17% over the past year. Bellway finished the financial year with net cash of £232 million, down from £245.3 million. It kept the full-year dividend frozen at 140p per share. Volumes, Margins Tipped To Decline For the current financial year, the FTSE 250 builder said that continued tough conditions would result in “[a] material reduction in volume output.” It noted that “customer demand continues to be affected by mortgage affordability constraints, with reservations below the comparative rates in the prior year.” Overall weekly reservations at Bellway have dropped to 133 during the nine weeks from August 1 from 191 in the same 2022 period. Meanwhile, the private reservation rate has slipped to 99 per week from 136 previously. Forward sales as of…
The post Bellway Rises Following FY Statement, Warning Of Further Volume And Margin Drops appeared on BitcoinEthereumNews.com.
Photographer: Hollie Adams/Bloomberg © 2021 Bloomberg Finance LP Shares in homebuilder Bellway edged higher on Tuesday despite warnings that volumes and margins will continue to slide this year. At £21.80 per share, Bellway’s share price was 0.9% higher on the day. Bellway — which is one of the UK’s top five housebuilders – saw revenues drop 3.7% in the 12 months to July, to £3.4 billion. Completions fell to 10,945 homes from 11,198 a year earlier, while average selling prices dipped to £310,306 from £314,399 previously. The company’s underlying operating margin fell by 2.5% over the year to 16% due to higher build costs, extended site durations caused by slower reservation rates, and the increased use of selling incentives. These factors meant that underlying operating profit slipped 16.7% to £543.9 million. Underlying pre-tax profit dropped 18.1% year on year to £532.6 million. Sales across the housebuilding sector have slumped as the Bank of England has steadily raised interest rates to tame inflation. Property listings company Rightmove announced this week that total home sales in the UK have dropped 17% over the past year. Bellway finished the financial year with net cash of £232 million, down from £245.3 million. It kept the full-year dividend frozen at 140p per share. Volumes, Margins Tipped To Decline For the current financial year, the FTSE 250 builder said that continued tough conditions would result in “[a] material reduction in volume output.” It noted that “customer demand continues to be affected by mortgage affordability constraints, with reservations below the comparative rates in the prior year.” Overall weekly reservations at Bellway have dropped to 133 during the nine weeks from August 1 from 191 in the same 2022 period. Meanwhile, the private reservation rate has slipped to 99 per week from 136 previously. Forward sales as of…
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