Bellway sees profit jump to £650m but pays out £346m for Building Safety Levy
Bellway boosted profit by 22.5% to £650m, before handing £346m over for the Building Safety Levy.
The housebuilder’s revenues for the year to 31 July rose by 13.3% to a record of £3.54bn, with a record 11,198 homes sold.
However, underlying profits of £650m – a 22.5% increase on last year’s £531m – were slashed to just £304m after paying the levy.
Announcing its preliminary results this morning, the housebuilder said: “We have provided an additional net £346.2m in relation to legacy building safety, as an adjusting item.”
Bellway boosted profit by 22.5% to £650m, before handing £346m over for the Building Safety Levy.
The housebuilder’s revenues for the year to 31 July rose by 13.3% to a record of £3.54bn, with a record 11,198 homes sold.
However, underlying profits of £650m – a 22.5% increase on last year’s £531m – were slashed to just £304m after paying the levy.
Announcing its preliminary results this morning, the housebuilder said: “We have provided an additional net £346.2m in relation to legacy building safety, as an adjusting item.”
This was mainly as a result of Bellway’s commitment to the Building Safety Pledge in April 2022, as well as the Developers’ Pact with the Welsh government earlier this month. The total amount set aside by the builder is £513.7m.
The levy aside, Bellway had “delivered another strong performance”, chief executive Jason Honeyman said.
Housing completions were ahead of targets, with Bellway confirming its long-term commitment to deliver 16,000 homes each year.
To achieve this Bellway has spent a total of £1.3bn buying over 19,000 plots, up from £1bn last year and just £777m the year before. Its land bank now comprises 97,706 plots, a 13% increase on last year.
Honeyman said: “Our strengthened land bank and resilient 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.”
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
