Bellway p l c : profits double despite supply chain woes slowing construction activities
October 19, 2021 at 03:01 am EDT
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Housebuilder Bellway said this morning that its annual profits more than doubled, but cautioned that supply chain woes are holding back construction activity.
The group posted a 102.4 per cent jump in pre-tax profits to £479m for the year to July 31 as revenues leaped 40.3 per cent to £3.12bn thanks to a booming property market.
Newcastle-based Bellway flagged the impact of ongoing supply chain disruption, which is pushing up prices of materials such as steel, timber and MDF, though it said there were some signs that recent soaring prices are “beginning to subside”.
It added that lorry driver shortages and the recent fuel crisis has also impacted materials availability while it is further battling amid wider labour shortages.
Bellway said: “In general, these constraints are manageable by adopting good procurement disciplines and forward planning.
“They will, however, mean that construction output in the first half of financial year 2022 is likely to remain similar to that achieved in the first half of financial year 2021.”
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Bellway p.l.c. is a United Kingdom-based home construction company engaged in the building and selling of homes, ranging from one-bedroom apartments up to six-bedroom family homes, as well as providing social housing-to-housing associations. The Company operates into approximately 21 divisions, covering centers across England, Scotland and Wales. The Company's brands include Bellway, Ashberry brand and Bellway London. Bellway brand is engaged in building quality homes in selected locations inspired by the needs of families. Ashberry brand is used on larger sites, where the site layout and market demand justify two selling outlets. The Bellway London brand covers all their developments in London boroughs and commuter towns. Its properties range from one-bedroom apartments to four-bedroom houses. The Company's subsidiaries include Bellway Homes Limited, Bellway Housing Trust Limited, Bellway Properties Limited, Bellway (Services) Limited and Litrose Investments Limited.