Bellway to build more homes than expected this year but warns on impact of Middle East war

Bellway said it is on track to build more homes than it previously expected this year.

The housebuilding giant, in its half-year results, said it built 4,702 homes in the six months to 31 January, up from 4,577 last time.

It said it now expects to deliver between 9,300 and 9,500 units in the full year, up from the 9,200 it outlined in previous guidance and the 8,749 built the previous year.

The group’s half-year turnover rose by 6.3% to £1.5bn with pre-tax profit largely flat at £140m.

Underlying pre-tax profit, which excludes building safety and other exceptional costs, rose £700,000 to £151m.

Bellway chief Jason Honeyman said the Iran war has “not yet had a material impact” on the group’s trading but added: “The ongoing conflict heightens the risk of both inflationary cost pressures and an impact to customer demand, and we have already seen volatility return to the mortgage market.

“Looking ahead, and given the ongoing conflict in the Middle East, there are heightened risks of supply chain disruption and rising cost inflation. In light of this, our experienced procurement teams continue to work closely with our wide range of supply chain partners, to ensure we are well-prepared for our targeted increase in volume output in the current financial year and to minimise the impact of any potential disruption to the supply chain.”

The group said it is on track to deliver underlying operating profit of between £320m and £330m in the year. It recognised a net adjusting expense of £10.7m in the half year in relation to legacy building safety.

Bellway has also updated its corporate branding with new signage appearing on sites from this August, the firm said.