(Alliance News) - Bellway PLC on Tuesday reported a half-year profit decline, but noted it has been active in the land market recently as it sees "house price stability".
The housebuilder said revenue in the six months to January 31 declined 30% to GBP1.27 billion from GBP1.81 billion a year earlier. Its pretax profit declined 62% to GBP117.4 million from GBP305.9 million.
It reduced its interim dividend payment by 64% to 16.0 pence per share from 45.0p a year earlier.
During the half-year period, housing completions fell 28% to 4,092 from 5,695.
It was a period mired by "challenging trading conditions", Chief Executive Officer Jason Honeyman said, though the outlook is slightly more positive for the housebuilding sector.
"Although the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates throughout the first half has helped to ease affordability constraints and we have been encouraged by the improvement in reservations since the start of the new calendar year," Honeyman added.
Bellway said it is on track to deliver volume output of around 7,500 homes for the year, down from 10,945.
The CEO added: "Overall, the long-term fundamentals of the UK housebuilding industry remain attractive, given the shortage of energy efficient and affordable homes across the country. We remain confident that the group's robust balance sheet and operational strength, combined with the depth and quality of our land bank, will enable Bellway to successfully navigate changing market conditions and capitalise on future growth opportunities."
Bellway said it has been "more active in the land market" since the start of the 2024 calendar year, noting an "improving outlook in terms of both lower interest rates and house price stability".
Bellway shares fell 0.3% to 2,624.00 pence each in London on Tuesday morning.
By Eric Cunha, Alliance News news editor
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Bellway (BWY)