Bellway shares rose 3.5 per cent in mid-morning trading as the UK housebuilder smashed expectations, reporting pre-tax profits soaring by 44 per cent year-on-year to hit £354.2m in the year to 31 July, comfortably ahead of analysts’ expectations of £343m.
The housebuilder, one of the UK's largest, sold 7,752 homes, up 13.2 per cent, at prices that rose by five per cent on average to £224,000.
The total dividend for the year will be 77p per share, against 52p last year.
Bellway's share price has risen nearly 24 per cent since the beginning of the year.
Why it’s interesting
The UK’s booming property market may have begun slowing, but this shows no signs of affecting Bellway yet, as the number of homes the company sold hit a record high and the average house price continues to rise.
Demand for new homes remains strong throughout the country, held aloft by record-low interest rates, and a housing shortage continues to keep prices high.
What they said
Bellway’s chairman John Watson said:
Bellway has produced another outstanding set of results, completing a record number of new homes, while simultaneously making a record investment in land and opening a further two new divisions in the last twelve months.
Bellway is well positioned to continue delivering its strategy for growth, investing in high quality locations and delivering further sustainable returns for shareholders.
Bellway’s winning streak continues as a cooling property market has had no impact on the housebuilder’s buoyant results.