(Alliance News) - Bellway PLC on Tuesday saw annual profit and revenue rise, but the housebuilder remained below its pre-pandemic performance.
In the financial year that ended July 31, revenue reached GBP3.12 billion, up 40% from GBP2.2 billion in financial 2020. Revenue remained 2.8% below the GBP3.21 billion reported two years earlier, prior to the pandemic.
Pretax profit jumped to GBP479.0 million from GBP236.7 million the year before but remained short of GBP662.6 million two years prior.
The Newcastle-based residential property developer proposed a total dividend of 117.5 pence per share in financial 2021, more than doubled from 50.0p last year. Before the pandemic, Bellway declared a 150.4p dividend for financial 2019.
Housing completions rose to 10,138, up 35% from 7,522 the year before but slightly below the 10,892 completed two years earlier.
Looking to the coming year, Bellway said its forward order book totalled GBP1.97 billion on October 3, compared to GBP1.87 billion a year before.
"Our substantial order book and our strengthened land bank provide a solid platform for both future volume growth and margin recovery in the years ahead," said Chief Executive Jason Honeyman.
The order book supports its target of increasing completions by 10% to over 11,100 in financial 2022, Bellway said. By financial 2023, the company is targeting a 20% increase in annual output to 12,200 homes.
Average selling prices, however, are expected to fall to around of GBP295,000 in the upcoming financial year, compared to GBP306,479 in financial 2021.
On the other hand, Bellway predicts that underlying operating margins will improve year-on-year to 18% in the coming year, compared to 17% and 15% in financial 2021 and financial 2020 respectively.
"Longer-term, the industry fundamentals remain strong. Bellway has significant cash holdings, providing resilience and strategic flexibility. Our strategy of volume growth, and our 'Better with Bellway' approach to sustainability, ensures we can continue to increase the supply of high-quality new homes, create long-term value for shareholders and make a positive contribution for all our stakeholders," CEO Honeyman said.
Shares in Bellway were trading up 2.1% at 3,422.82 pence each in London on Tuesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Bellway (BWY)