Bellway Homes has issued a trading update for the six months to the end of January 2018, which has seen volume growth by way of a 6.3% rise in housing completions.
The Newcastle-based residential property developer saw the number of homes legally completed hit 4,741, which is up from the 4,462 recorded in the six months to January 2017.
In addition, Bellway announced that all geographic regions that the Group operates in performed well.
The Group is confident that housing revenue will increase too, with a rise of 14% to £1.3 billion expected, up from £1.1 billion at the same time last year.
Bellway Homes is continuing to make a “sizeable contribution” at a time when housing demand is high, with customers particularly favouring new homes.
With the government committing to ambitious housebuilding targets, the work undertaken by Bellway will be particularly pleasing.
The developer is also making significant investment in plots of land to build new homes, which also support the ambitious growth ambitions of Bellway.
Further opportunities are being explored, with Bellway already contracted to acquire 6,726 plots – up by the more than 400 recorded at the same point last year – across even more sites too.
The company’s net bank debt has decreased sharply, representing a strong balance sheet, and the operating margin for the first half of the year is expected to increase, with Bellway’s operating margin on target for 22% for the full financial year.
It continues strong performance by the residential developer, which saw profits in excess of 16% recorded in the last set of financial results.
John Watson, Executive Chairman at Bellway, commented on the latest trading update.
He said: “Bellway is continuing to make a sizeable contribution to the supply of much needed new homes and has delivered a further increase in both volume and average selling price in the six month trading period.
“Significant investment in land, together with ongoing plans to expand the divisional structure, should lead to a further increase in output and hence result in additional value creation for our shareholders.”