Bellway PLC on Wednesday reported a drop in its full-year revenue as the completion of homes is set to drop.

The Newcastle Upon Tyne-based housebuilder said housing revenue for the year ended July 31 fell by 38% to around £3.4 billion from £5.52 billion a year prior, but noted it remains in line with its guidance.

Housing completions were 2.3% lower at 10,945 homes compared to 11,198 the year before. The total homes average selling price also fell by 1.4% to £310,000 from £314,399.

Bellway said its programme of accelerating the construction of social homes was hurt by weaker private demand amid higher mortgage rates and the end of the Help-to-Buy scheme.

Looking ahead, the company expects underlying operating margin for financial 2023 to be around 16% compared to 19% a year ago, adding that the reduction reflects the ‘effect of build cost and overhead inflation, extended site durations and the increased use of targeted sales initiatives.’ Bellway added its legal completions are expected to fall ‘materially.’

Chief Executive Officer Jason Honeyman said: ‘Bellway has delivered a resilient performance, with volume output and housing revenue in line with expectations and supported by the strength of our order book at the start of the 2023 financial year.

‘Bellway’s operational strength and experienced teams will enable the group to successfully navigate changing market conditions and, supported by a strong balance sheet, it is well-placed to continue to deliver high quality homes to our customers and returns for shareholders.’

Shares in Bellway were down 1.4% at 2,186.00 each in London on Wednesday.

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