Housebuilder Bellway has just posted record business revenue for the last year.
Bellway has recorded yet another record business sales 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.”
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