Bellway has recorded yet another record revenue amidst the UK’s housing market boom, but rising inflation has significantly eaten into profits.
The FTSE housebuilder’s revenue grew 13.3 per cent to £3.53bn in the year to 31 July, up from £3.12bn a year prior.
However, Bellway’s pre-tax profit has plunged more than a third over the year, down from £479m to £304m.
Spiralling inflation in the UK has hiked costs across the board, but has hit the price of materials, labour and fuel particularly hard.
The housebuilder has been on a steamroll to reap the rewards of the UK’s house price surge in recent years.
The number of houses Bellway completed construction on over the 12-months was ahead of its already ambitious target, growing by 10.5 per cent to another record of 11,198 homes, more than 1,000 properties than last year.
In a statement today, chief executive Jason Honeyman said that the company’s land bank and balance sheet “provide a platform for long-term growth and, importantly, during a period of economic uncertainty, they enable the group to take a more cautious approach to land investment in the year ahead.
“Bellway’s growth will continue to be disciplined as we maintain a clear focus on the high standard of our product, margin, quality of profit and value creation.”