UK's Bellway FY revenue slightly beats estimates; announces buyback
UK's Bellway FY revenue slightly beats estimates; announces buyback
Overview
UK homebuilder's full-year revenue rose 13.6%, slightly beating analyst expectations
Underlying pre-tax profit for the year increased 5.7%
Company announced £150 mln FY27 share buyback, raising total returns to c.£450 mln
Outlook
Bellway targets FY27 housing completions between 9,000 and 9,400, down from 9,695 in FY26
Company expects FY27 average selling price to be similar to FY26 at around £325,000
Underlying operating margin is expected to reduce further in FY27 due to margin pressures
Result Drivers
VOLUME GROWTH - Higher housing completions, including increased bulk sales, contributed to revenue and profit growth
SALES INCENTIVES - Increased use of targeted incentives to support affordability amid subdued demand, leading to moderation in selling prices
COST CONTROL - Management actions underway to strengthen cost control and operational efficiency, including procurement savings and standardisation
Company press release: ID:nRSM6454Ya
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Slight Beat* | GBP 3.16 bln | GBP 3.13 bln (18 Analysts) |
FY Underlying Pretax Profit |
| GBP 305.70 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "buy"
Wall Street's median 12-month price target for Bellway PLC is GBp2,380.00, about 19.9% above its October 12 closing price of GBp1,985.00
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Oct 13 - UK's Whitbread H1 revenue rises on accommodation sales
Oct 12 - British recruiter Hays posts 14th straight net fee drop, shares fall
Oct 12 - UK's Farage pledges to suspend asylum claims for up to five years
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)