Bellway Builds Momentum
Bellway has reported robust trading during the spring selling season, with expected home completions for the year ending July 31, 2025, now forecast between 8,600 and 8,700. This represents a significant increase from FY24’s total of 7,654 homes and exceeds the company’s previous guidance of at least 8,500. The housebuilder is fully sold for the current financial year.
Reservation Rates
- Private reservation rate (excluding bulk sales): 0.61 per outlet per week (flat year-on-year)
- Including bulk sales: 0.67 (an 8.1% increase from 0.62 in FY24)
These figures reflect stable demand and improving customer confidence.
Financial Metrics
- Expected FY25 operating margin: ~11% (up from 10% in FY24)
- Average selling price: ~£315,000 (previous guidance: £310,000)
- The increase in selling price is primarily due to a higher-value product mix and selected premium completions in the final quarter.
Order Book
- Forward order book (units): 5,759 (up 7.7% year-on-year from 5,346)
- Order book value: £1.65 billion (up from £1.45 billion in 2024)
The strengthened order book supports confidence in near-term revenue visibility and continued growth momentum.
Strategic Outlook
- Volume growth target: 20% by July 31, 2026, reaffirming guidance issued in March
Management believes this is achievable, supported by a strong pipeline, active outlet programme, and stable market conditions. - Key focus areas:
- Improving return on capital employed (ROCE)
- Enhancing cash generation
- Operating a more efficient balance sheet
