Bellway PLC (LSE:BWY) shares rose 4.65 to 2,798p on Tuesday morning as the housebuilder upped its profit outlook for the current year, with a solid trading third-quarter update.
The FTSE 250 group said it expects to have sold around 8,600-8,700 in the year to 1 June at an average selling price of £315k, following a "robust" spring selling season. This selling price was £5,000 above prior guidance, primarily due to the sales mix.
With margins expected to be close to 11%, operating profit for the year is guided to come in at around £295-300 million, 2-3% ahead of the current consensus.
Bellway said it is fully sold for the current financial year, so is "well-positioned" to deliver its target of cumulative volume growth of 20% for the two years to July 2026, as long as market conditions remain stable.
CEO Jason Honeyman said it was a "solid trading performance" and the FTSE 250 group has a "healthy forward order book", which increased by 7.7% to comprise 5,759 homes at 1 June and "will serve as a platform for further growth".
He will update the market on Bellway's refreshed capital allocation plans at its final results in August.