Housebuilder Bellway has reported record revenue of more than £3.5bn, driven by an increase in the number of properties built and helped by underlying house price rises.
The Newcastle-based plc also said it had improved its underlying operating margin to 18.5%, from 17%, despite upward pressure on build costs posed by international supply chain shortages, rising energy prices and increased wage costs. In a trading update for the year to the end of July, Bellway said it still expects to continue its growth next year with an annual record output of 12,200 homes in its sights.
The company's order book increased by 4.5% during the period to £2.1bn, representing 7,223 homes. And reservations rose by 6.9% - unhindered by cost of living pressures on customers - to about 218 homes per week. Bellway pointed to a healthy property market, supported by mortgage availability and low levels of unemployment.
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During the year, enough land to support 19,089 plots worth an estimated £1.3bn was acquired. The firm also complained of a slow planning system owing to Covid-related backlogs related backlog and complexities around biodiversity and nutrient neutrality regulations.
Jason Honeyman, chief executive, said: "Bellway has delivered another strong performance, with volume output and housing revenue reaching record levels for the group. This result has been achieved through our investment in land and the dedication of our colleagues, subcontractors and supply chain partners, against the backdrop of a challenging operating environment and macroeconomic uncertainty.
"I am delighted that Bellway has retained its status as a five-star homebuilder for the sixth consecutive year, reflecting our focus on build quality and customer satisfaction. As part of our 'Better with Bellway' sustainability strategy and as we aim for further volume growth in the years ahead, we remain dedicated to maintaining the high quality of our product, making further improvements in the service we offer our customers and setting ambitious targets in respect of carbon reduction.
"Looking ahead, our sizeable forward order book and continued strong investment in land puts the group in an excellent position to deliver another record year of volume output, notwithstanding the ongoing challenges in the planning system and upcoming end of the Help-to-Buy scheme. In addition, a robust balance sheet continues to provide strategic flexibility and a platform for our long-term strategic priorities of volume growth and value creation."
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