Update9 Aug 2023 07:59
Housing revenue of around £3.4 billion (2022 - £3,520.6 million), in line with previous guidance.
§ Total housing completions of 10,945 homes (2022 - 11,198), at an average selling price of £310,000 (2022 - £314,399).
§ The underlying operating margin is expected to be around 16%3 (2022 - 18.5%), with the reduction reflecting the effect of build cost and overhead inflation, extended site durations and the increased use of targeted sales incentives.
§ The Group's programme of accelerating the construction of social homes partially offset weaker private demand, which was impacted by higher mortgage rates and the end of Help-to-Buy.
§ The overall reservation rate reduced by 28.4% to 156 per week (2022 - 218) and the private reservation rate decreased by 35.9% to 109 per week (2022 - 170).
§ Robust balance sheet provides continued resilience and strategic flexibility, with year-end net cash of £232 million4 (2022 - £245.3 million) and low adjusted gearing, inclusive of land creditors, of only 3%5 (2022 - 4.4%).
§ The £100 million share buyback launched on 28 March 2023 is progressing well, with 2.9 million shares purchased at a cost of around £66 million.
§ The combination of strong volume output and the decrease in reservation rates resulted in a lower, yet still sizeable year-end order book, with a value of £1,193.5 million6 (2022 - £2,114.3 million), which comprises 4,411 homes (2022 - 7,223 homes).
§ Strong recognition from our customers and employees, having retained our status as a five-star7 homebuilder for the seventh consecutive year and 89% of our colleagues recommending Bellway as 'a great place to work'.
The Group has delivered housing revenue of around £3.4 billion (2022 - £3,520.6 million), a 3% reduction on the prior year and in line with previous guidance. Volume output was supported by the strong order book at the start of the financial year, and notwithstanding the reduction in underlying demand, completions reduced by only 2.3% to 10,945 (2022 - 11,198).
The overall average selling price decreased by over 1% to £310,000 (2022 - £314,399), primarily driven by a lower proportion of private completions, which reduced to 75% of the total (2022 - 82%). In the year ending 31 July 2024, the proportion of social completions will remain elevated and together with the ongoing disciplined use of incentives, we expect a further moderation in the average selling price.
The underlying operating margin for the 2023 financial year is expected to be around 16%3 (2022 - 18.5%), and the reduction reflects the effect of build cost and overhead inflation, together with extended site durations and the increased use of sales incentives during a more challenging trading period.
During the year, the Group has contracted to purchase 4,715 plots8 (2022 - 19,089 plots) across 35 sites8 (2022 - 107 sites) with a total contract value of £378.2 million8 (2022 - £1,300.3 million). We have als
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