Bellway has stated that it has delivered a "robust performance" in the year to 31 July, as it beat its total housing completion expectations.

The housebuilder said it entered the year with a strong forward order book, and despite "subdued trading", its housing completions increased by 10.8% to 9,695 homes, beating its previous guidance range of 9,300 to 9,500 homes.

Its housing revenue rose by over 13% to £3.14bn, and it expects to report an operating profit of around £320m.

Despite this performance, Bellway said similar to the prior financial year, customer demand throughout the Autumn was impacted by uncertainty ahead of the government’s Budget. While there was an improvement in trading in the early part of the Spring selling season, this was dampened in response to increased mortgage rates.

Furthermore, its forward order book as of 31 July has fallen by 20% year-on-year to 4,206 homes, as a result of a strong increase in volume output and lower reservation rates during the year.

Chief executive at Bellway, Jason Honeyman, stated: "Bellway has delivered a robust performance and growth in volume output, despite ongoing headwinds for our industry. Our sharp focus on operational improvement and drive for capital efficiency has provided resilience and supported a strong increase in cash generation and shareholder returns.

"The board remains confident that, with supportive market conditions, Bellway is in a strong position to capitalise on future growth opportunities. However, 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 onto the property ladder and supporting the delivery of affordable and social housing for those who need it most."

Following the update, shares in Bellway increased by around 1.6%.

Head of markets at AJ Bell, Dan Coatsworth, stated that the firm’s full-year performance has been "overshadowed by recent trading", suggesting future performance may be on "shakier foundations".

He concluded: "The company is doing what it can in the face of difficult market conditions. Strong cash generation is enabling it to bolster its balance sheet while still returning funds to shareholders through buybacks.

"However, the company had to pursue lower-margin bulk sales to help deliver on its volume targets and there are clear signs of demand softening in recent months, with the forward order book shrinking substantially. Like the rest of the sector, Bellway could do with some relief in the form of lower mortgage rates and easing build cost inflation, but this looks a distant prospect.

"Management may pin their hopes on state-backed initiatives to provide some support, with some reports suggesting the Help to Buy scheme might be revived. Bellway and its industry peers will be closely watching October’s Budget for any news on this front."

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