Bellway Warns of Near-Term Demand Uncertainty and Lower Profit Outlook
Bellway's Financial Outlook and Market Challenges
Uncertainty in Near-Term Demand
Aug 11 (Reuters) - British homebuilder Bellway on Tuesday flagged uncertainty in near-term demand from rising build costs and moderating consumer demand, and said it now expects annual underlying operating profit at the lower end of forecast range.
Factors Impacting the Housing Market
Rising Build Costs and Political Uncertainty
Higher building costs, driven by rising energy prices due to the Iran war, and political uncertainty have weighed on house builders already grappling with high mortgage rates and affordability constraints.
Company Response to Market Conditions
"We are continuing to exercise tight control over our cost base while maintaining a sharp focus on the monetisation of our well-invested land bank and work-in-progress position to support improvements in asset turn and cash generation," the company said.
Profit Outlook and Forecast
Updated Profit Expectations
Bellway said it now expects fiscal 2026 underlying operating profit of £320 million ($432.10 million), compared with £320 million to £330 million previously expected.
Currency Exchange Rate
($1 = 0.7406 pounds)
Reporting Credits
(Reporting by Simone Lobo in Bengaluru; Editing by Subhranshu Sahu)