Bellway PLC (LSE:BWY) has said improving housing market conditions over the coming year will lead to a “material increase” in volumes after firming up a slump in revenue and profit for 2024.
Revenue for the year to July fell 30% to £2.38 billion, in line with a 30% drop in completions to 7,654, Bellway reported on Tuesday.
Statutory pre-tax profit slumped 62% to £183.7 million, which was in part driven by legacy building safety bills of £37.0 million and absorbed transaction costs of £5.4 million.
A total dividend per share of 54p was proposed for the year, against 140p in 2023, as debt hit £10.5 million compared to a £232.0 million cash surplus previously.
Bellway noted trading since the year-end had improved as demand ticked up on the back of a fall in mortgage rates, with private reservations since August up 48.5% at 147.
Forward orders as of late September sat at 5,109 homes and £1.43 billion, against 4,636 and £1.23 billion a year earlier.
“Customer demand through the second half benefitted from a moderation in mortgage interest rates which has eased affordability pressures and supported an increase in reservations,” chief executive Jason Honeyman commented.
“The combination of these improving trading conditions and our strong outlet opening programme has generated a healthy increase in the year-end order book.
“As a result, we are well-placed to deliver a material increase in volume output in [...] 2025.”
Bellway added it aimed to complete 8,500 homes over the coming year at an average price of £310,000, leaving operating margins close to 11%, against 10% in 2023.
Honeyman also welcomed government plans to reform housing planning systems, noting these would help Bellway “deliver strong multi-year growth and [...] long-term value”.