Housebuilder Bellway Homes has said it expects full-year profits to rise by around 5.4%, with completions jumping 10.8%, as it gears up to launch another share buyback scheme.
In a trading update for the year to the end of July, Bellway said it expected underlying operating profits to stand at around £320m, up from £303.5m the year before. Revenue has also increased 13% from £2.78bn to £3.14bn.
Completions for the year stood at 9,695 homes, up on the previous year’s 8,749 completions, ahead of its previous guidance of 9,300 to 9,500 homes.
Bellway ended the year with net cash of £157.7m, compared with £41.8m in 2025. Its forward order book reduced to 4,206 homes, valued just shy of £1.2bn, compared with 5,307 homes the year before, valued at £1.52bn.
The company is set to launch an additional £50m share buyback programme later this month when it completes a £150m share buyback programme launched in October.
According to chief executive Jason Honeyman, the group is “confident that, with supportive market conditions, Bellway is in a strong position to capitalise on future growth opportunities”.
But he added: “With the near-term outlook remaining uncertain, we call on the government to act now to improve access to housing across all tenures, both by helping first-time buyers on to the property ladder and supporting the delivery of affordable and social housing for those who need it most.”
Honeyman also urged the government to introduce an immediate stamp duty cut to “drive economic growth and accelerate the delivery of much-needed new homes”.
Bellway said its land investment had remained “controlled and highly selective”, in common with other housebuilders, and it continued to prioritise locations supported by “relatively resilient underlying customer demand”.
Oli Creasey, head of property research at Quilter Cheviot, called Bellway’s rise in completions and profits positive, but warned that the “scale may not be enough for investors to really get excited about”.
He added: “The company’s operating profit has grown 5% to £320m, but the profit margin is expected to reduce by 90 basis points to around 10%. This is in keeping with other UK housebuilders, which are all experiencing margin pressure as build-cost inflation outruns house price increases, but some investors may be disappointed to see this measure fall this far.”
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