Latest news with #JasonHoneyman
Reuters
12-08-2025
- Business
- Reuters
UK's Bellway expects to build more homes as profitability picks up
Aug 12 (Reuters) - Britain's Bellway (BWY.L), opens new tab expects to build more homes in its new financial year after higher completions and average selling prices helped to boost profit margins in the year ended July 31, the housebuilder said on Tuesday. The company's upbeat tone about Britain's housing market, which has been bogged down by elevated interest rates, sticky inflation and planning delays, sent its London-listed shares and those of its peers higher in early trade. Rivals Taylor Wimpey (TW.L), opens new tab, Barratt Redrow (BTRW.L), opens new tab and Berkeley (BKGH.L), opens new tab have sounded more downbeat in recent months. "We have entered the new financial year with a healthy forward order book and outlet opening programme and, if market conditions remain stable, we are well-positioned to deliver further growth in FY26," Bellway CEO Jason Honeyman said in a trading update. The company, which builds everything from social housing and one-bedroom apartments to six-bedroom family homes and luxury penthouses, said it completed 8,749 homes in the year ended July 31, up 14.3% year-on-year. The average selling price was around 316,000 pounds ($425,304), slightly ahead of its expectations. It expects to build around 9,200 homes in the year ending July 2026 and increase cash generation for shareholder returns. At 0730 GMT, Bellway's shares were up 1.9% at 2,484 pence, in a UK housing index (.FTNMX402020), opens new tab up 1.4%. "In our view the market will improve in the coming year, suggesting there are upside risks to company guidance" RBC Capital Markets analysts said in a note. UK home sales surged in early 2025 as first-time buyers rushed to complete purchases ahead of the March 31 expiry of temporary stamp duty relief. Bellway, which will publish full fiscal 2025 results on October 14, said its underlying operating margin was expected to approach 11%, compared with 10% the year before. Its forward order book stood at 5,307 homes on July 31, up from 5,144 a year earlier. ($1 = 0.7430 pounds)
Telegraph
17-06-2025
- Business
- Telegraph
This stock has served us well, but it's time to bank profits and move on
Last week's third-quarter update from Bellway reads well, and the Government seems determined to do what it can to galvanise the housing market. However, the housebuilder's shares now trade at slightly above historic net asset value (Nav) per share, which makes it feel as if the easy money is already in the bag, meaning it is time to bank profits and move on from the FTSE 250 firm. Bellway's completions and average selling prices for the year to July both look set to slightly exceed expectations, while an increase in reservation rates and the forward order book provides management with greater visibility for the next financial year, to July 2026. Chief executive, Jason Honeyman, and his team now expect a cumulative 20pc increase in completions across 2025 and 2026. Management is also hinting at share buybacks when the company completes a review of its capital allocation policies later this year. As a result, analysts are gently nudging up profit expectations for this year and next. Investors who feel that an upturn in demand is coming – and that planning deregulation will ease cost burdens – may feel this represents an opportunity. Others will fret about affordability, weak consumer confidence and how sticky inflation could crimp the rate at which interest rates, and thus mortgage rates, decline. What is clear for the moment, at least, is that analysts' forecasts for Bellway's housing completions still leave the forecast total for the year to July 2026 below the equivalent figure for the twelve months to July 2017. Higher house prices have therefore done much of the heavy lifting so far as sales and profits are concerned, and it hard to see why profits and margins will rapidly return to the levels seen during the go-go times of the late 2010s, when the Bank of England base rate was almost zero and Help-to-Buy was in full swing. We do not have a crystal ball and thus do not know what is coming next. Nor are we keen to rely blindly upon government policy given the scope for delay, error, or, at some stage, a change of administration and thus change of said policy. Our ultimate guide must therefore be valuation. Covid, higher interest rates, rising input costs, the end of Help to Buy in 2023 and regulatory levies have all weighed on Bellway and the housebuilders more generally, with the result that stocks have derated. Whereas multiples of toward two times historic Nav prevailed, the sector now trades on barely one times. We first looked at the Bellway in the immediate wake of the stock, bond and currency market gyrations that followed the Truss-Kwarteng mini-Budget of autumn 2022, when the housebuilder traded at a deep discount to Nav. Our capital gain is now nearly 40pc, while dividends received represent 310p a share, or a sixth of our entry price. As such, it feels prudent to crystallise our paper gains, especially as we still have exposure to the industry through Crest Nicholson, MJ Gleeson and Springfield Properties. These all still trade at a discount to historic Nav of at least 25pc, even if some would argue there are good reasons for them to do so, given their recent spotty operational and financial performance. Questor says: sell Ticker: BWY Share price: £28.76 Update: Assura Well, that did not take long. A fresh bid for Assura from KKR means we can continue to watch the takeover tussle for the healthcare real estate investment trust (Reit) develop, in the knowledge that some sort of deal looks assured. Investors can start to do their research on what may be suitable, replacement portfolio picks, either within the Reit sector, where lowly valuations relative to Nav still prevail or elsewhere. Private equity and investment giant KKR has upped its offer to 52.1p per share in cash and dividends for Assura, a slight premium to Assura's latest stated Nav of 50.4p. Rival suitor, Primary Health Properties, a UK-listed healthcare specialist Reit, has tabled a cash-and-stock offer, which also includes dividends, and is now worth 53p a share thanks to a plan to pull forward an additional dividend due for payment in the autumn. Assura has flip-flopped from recommending February's initial KKR offer, to doing due diligence on the PHP approach, and then returning to recommending KKR, a move which PHP has understandably contested.
Yahoo
11-06-2025
- Business
- Yahoo
Housebuilding and China trade hopes lift London stocks
Stocks in London ended higher on Tuesday, led by gains in housebuilders and amid signs of progress in US-China trade talks. The FTSE 100 index rose 20.80 points, 0.2%, to 8,853.08. It had earlier risen as high as 8,886.06. The FTSE 250 ended up 103.55 points, 0.5%, at 21,389.46, and the AIM All-Share climbed 2.43 points, 0.3%, to 766.32. In Paris, the Cac 40 rose 0.2%, while Frankfurt's Dax 40 ended 0.8% lower. In the UK, figures showed the unemployment rate rose slightly in the three months to April, as expected, while pay growth was more moderate than forecast. The Office for National Statistics said the rate increased to 4.6% in the period from February to April, in line with FXStreet-cited consensus, from 4.5% in the first three months of 2025. The last time the jobless rate was higher was in the period from April to June 2021, at 4.7%, according to the ONS. The ONS also said annual growth in average earnings was 5.2% for regular earnings, which exclude bonuses, and 5.3% for total earnings, which factor in bonuses. However, regular earnings growth of 5.4% was expected, and total earnings growth of 5.5% was predicted, according to FXStreet. Regular earnings growth eased from 5.5% in the three months to March, and total earnings growth ebbed from 5.6%. 'Today's data was soft across the board. Wage growth slowed in April and was revised lower in March. 'Unemployment rose while vacancies fell. Tax data for May suggests further easing to come. 'This doesn't change our June (Bank of England) call for a hold, but solidifies the case for easing,' analysts at Barclays said. Barclays added that the data 'gives us increased confidence in our forecast that the (Monetary Policy Committee) will cut in August'. Rate cut optimism was reflected in a weaker pound. Sterling was quoted at 1.3509 dollars late on Tuesday afternoon in London, lower compared to 1.3556 dollars at the equities close on Monday. The euro stood at 1.1418 dollars, little changed against 1.1419 dollars. Against the yen, the dollar rose to 144.93 yen compared to 144.42 yen. The data also gave a lift to rate-sensitive housebuilders, who took further encouragement from an upbeat trading statement from Bellway and a rumoured government announcement. Bellway, up 7.9%, said it is on track for 'strong growth in volume output and profits' in its financial year, and it predicted average selling prices will be above previous guidance. The housebuilder said it saw 'robust' trading through the spring selling period. 'Bellway has delivered a solid trading performance, and we are on track to deliver strong growth in volume output and profits in the full financial year. 'We have a healthy forward order book and outlet opening programme, which will serve as a platform for further growth in FY26,' chief executive Jason Honeyman said. Volume output for the year to July 31 is now expected between 8,600 and 8,700 homes, a rise from 7,654 homes in the prior financial year. In its March interim results, it predicted output of at least 8,500 homes. The overall average selling price is now expected to be around £315,000, up from its previous guidance of £310,000 and a rise from £307,909 last year. It put the guidance hike to 'changes in product mix'. 'Bellway's update should be well-received as there was a degree of caution in the market around slower trading after the stamp duty changes,' analysts at Stifel commented. The statement supported the housebuilding sector. On the FTSE 100, Persimmon rose 6.0%, Barratt Redrow climbed 5.6% and Taylor Wimpey advanced 4.6%. In addition, the Financial Times reported that Chancellor Rachel Reeves has drawn up plans for a housing bank, to be announced as early as Wednesday's spending review, alongside a potential long-term funding settlement for affordable homes of up to £25 billion. The plans would enable Homes England, the Government's housing agency, to more easily deliver cheaper financing to housebuilders by redesignating it as a public financial institution, according to FT sources. Analysts at RBC Capital Markets said this would provide 'a welcome lift to the sector'. In New York, the Dow Jones Industrial Average was up 0.1%, the S&P 500 was 0.3% higher, and the Nasdaq Composite 0.2% to the good at the time of the closing bell in London. The yield on the US 10-year Treasury was quoted at 4.48%, narrowing from 4.49% on Monday. The yield on the US 30-year Treasury was quoted at 4.95%, narrowing from 4.96%. Negotiations between US and Chinese officials in London stretched into a second day, with Washington sending positive signals that the two superpowers might resolve a bitter trade war dragging on the global economy. The talks were 'going well,' US commerce secretary Howard Lutnick told Bloomberg Television, adding he expected Tuesday's discussions to last 'all day'. US President Donald Trump told reporters at the White House on Monday: 'We are doing well with China. China's not easy.' He added: 'I'm only getting good reports.' Back in London, Marks & Spencer rose 3.8% after it reopened its website to shoppers, having been forced to halt internet orders in April following a damaging cyber attack. The retail giant said shoppers are now able to buy a selection of its best-selling fashion ranges and new products for home delivery to England, Scotland and Wales. Rival Next, a perceived beneficiary from the outage at M&S, fell back 2.7%. On the FTSE 250, Hochschild Mining plunged 23% after the London-based gold and silver miner in Argentina, Brazil and Peru said it expects to significantly reduce production guidance at its Mara Rose site in Brazil amid ongoing delays to the project. Hochschild Mining said it has suffered 'contractor performance issues', alongside unexpectedly heavy rainfall in the past few months. According to Hochschild, filtering problems and limited access to metal ore have exacerbated the impact of delayed waste removal, an issue which was carried over from previous years. Hochschild is planning to suspend operations at Mara Rose's processing plant for about six weeks in order to carry out repairs, but it insists that mining 'will continue as planned'. The biggest risers on the FTSE 100 were Persimmon, up 77.50 pence at 1,380.0p, Barratt Redrow, up 25.30p at 475.3p, Taylor Wimpey, up 5.35p at 121.7p, Marks & Spencer, up 13.60p at 373.4p and Shell, up 90.5p, at 2,595.5p. The biggest fallers on the FTSE 100 were Standard Chartered, down 34.0p at 1,148.0p, Barclays, down 9.1p at 323.3p, Next, down 345.0p at 12,495.0p, BAE Systems, down 50.5p at 1,872.0p, and Fresnillo, down 34.0p at 1,340.0p. Brent oil rose to 67.82 dollars a barrel late in London on Tuesday afternoon, from 66.88 dollars late on Monday. Gold was quoted lower at 3,325.36 dollars an ounce against 3,329.84 dollars on Monday. Wednesday's global economic calendar sees a US inflation reading. The UK corporate calendar on Wednesday has full-year results from pub operator Fuller, Smith & Turner. Contributed by AllianceNews Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
Housebuilding and China trade hopes lift London stocks
Stocks in London ended higher on Tuesday, led by gains in housebuilders and amid signs of progress in US-China trade talks. The FTSE 100 index rose 20.80 points, 0.2%, to 8,853.08. It had earlier risen as high as 8,886.06. The FTSE 250 ended up 103.55 points, 0.5%, at 21,389.46, and the AIM All-Share climbed 2.43 points, 0.3%, to 766.32. In Paris, the Cac 40 rose 0.2%, while Frankfurt's Dax 40 ended 0.8% lower. In the UK, figures showed the unemployment rate rose slightly in the three months to April, as expected, while pay growth was more moderate than forecast. The Office for National Statistics said the rate increased to 4.6% in the period from February to April, in line with FXStreet-cited consensus, from 4.5% in the first three months of 2025. The last time the jobless rate was higher was in the period from April to June 2021, at 4.7%, according to the ONS. The ONS also said annual growth in average earnings was 5.2% for regular earnings, which exclude bonuses, and 5.3% for total earnings, which factor in bonuses. However, regular earnings growth of 5.4% was expected, and total earnings growth of 5.5% was predicted, according to FXStreet. Regular earnings growth eased from 5.5% in the three months to March, and total earnings growth ebbed from 5.6%. 'Today's data was soft across the board. Wage growth slowed in April and was revised lower in March. 'Unemployment rose while vacancies fell. Tax data for May suggests further easing to come. 'This doesn't change our June (Bank of England) call for a hold, but solidifies the case for easing,' analysts at Barclays said. Barclays added that the data 'gives us increased confidence in our forecast that the (Monetary Policy Committee) will cut in August'. Rate cut optimism was reflected in a weaker pound. Sterling was quoted at 1.3509 dollars late on Tuesday afternoon in London, lower compared to 1.3556 dollars at the equities close on Monday. The euro stood at 1.1418 dollars, little changed against 1.1419 dollars. Against the yen, the dollar rose to 144.93 yen compared to 144.42 yen. The data also gave a lift to rate-sensitive housebuilders, who took further encouragement from an upbeat trading statement from Bellway and a rumoured government announcement. Bellway, up 7.9%, said it is on track for 'strong growth in volume output and profits' in its financial year, and it predicted average selling prices will be above previous guidance. The housebuilder said it saw 'robust' trading through the spring selling period. 'Bellway has delivered a solid trading performance, and we are on track to deliver strong growth in volume output and profits in the full financial year. 'We have a healthy forward order book and outlet opening programme, which will serve as a platform for further growth in FY26,' chief executive Jason Honeyman said. Volume output for the year to July 31 is now expected between 8,600 and 8,700 homes, a rise from 7,654 homes in the prior financial year. In its March interim results, it predicted output of at least 8,500 homes. The overall average selling price is now expected to be around £315,000, up from its previous guidance of £310,000 and a rise from £307,909 last year. It put the guidance hike to 'changes in product mix'. 'Bellway's update should be well-received as there was a degree of caution in the market around slower trading after the stamp duty changes,' analysts at Stifel commented. The statement supported the housebuilding sector. On the FTSE 100, Persimmon rose 6.0%, Barratt Redrow climbed 5.6% and Taylor Wimpey advanced 4.6%. In addition, the Financial Times reported that Chancellor Rachel Reeves has drawn up plans for a housing bank, to be announced as early as Wednesday's spending review, alongside a potential long-term funding settlement for affordable homes of up to £25 billion. The plans would enable Homes England, the Government's housing agency, to more easily deliver cheaper financing to housebuilders by redesignating it as a public financial institution, according to FT sources. Analysts at RBC Capital Markets said this would provide 'a welcome lift to the sector'. In New York, the Dow Jones Industrial Average was up 0.1%, the S&P 500 was 0.3% higher, and the Nasdaq Composite 0.2% to the good at the time of the closing bell in London. The yield on the US 10-year Treasury was quoted at 4.48%, narrowing from 4.49% on Monday. The yield on the US 30-year Treasury was quoted at 4.95%, narrowing from 4.96%. Negotiations between US and Chinese officials in London stretched into a second day, with Washington sending positive signals that the two superpowers might resolve a bitter trade war dragging on the global economy. The talks were 'going well,' US commerce secretary Howard Lutnick told Bloomberg Television, adding he expected Tuesday's discussions to last 'all day'. US President Donald Trump told reporters at the White House on Monday: 'We are doing well with China. China's not easy.' He added: 'I'm only getting good reports.' Back in London, Marks & Spencer rose 3.8% after it reopened its website to shoppers, having been forced to halt internet orders in April following a damaging cyber attack. The retail giant said shoppers are now able to buy a selection of its best-selling fashion ranges and new products for home delivery to England, Scotland and Wales. Rival Next, a perceived beneficiary from the outage at M&S, fell back 2.7%. On the FTSE 250, Hochschild Mining plunged 23% after the London-based gold and silver miner in Argentina, Brazil and Peru said it expects to significantly reduce production guidance at its Mara Rose site in Brazil amid ongoing delays to the project. Hochschild Mining said it has suffered 'contractor performance issues', alongside unexpectedly heavy rainfall in the past few months. According to Hochschild, filtering problems and limited access to metal ore have exacerbated the impact of delayed waste removal, an issue which was carried over from previous years. Hochschild is planning to suspend operations at Mara Rose's processing plant for about six weeks in order to carry out repairs, but it insists that mining 'will continue as planned'. The biggest risers on the FTSE 100 were Persimmon, up 77.50 pence at 1,380.0p, Barratt Redrow, up 25.30p at 475.3p, Taylor Wimpey, up 5.35p at 121.7p, Marks & Spencer, up 13.60p at 373.4p and Shell, up 90.5p, at 2,595.5p. The biggest fallers on the FTSE 100 were Standard Chartered, down 34.0p at 1,148.0p, Barclays, down 9.1p at 323.3p, Next, down 345.0p at 12,495.0p, BAE Systems, down 50.5p at 1,872.0p, and Fresnillo, down 34.0p at 1,340.0p. Brent oil rose to 67.82 dollars a barrel late in London on Tuesday afternoon, from 66.88 dollars late on Monday. Gold was quoted lower at 3,325.36 dollars an ounce against 3,329.84 dollars on Monday. Wednesday's global economic calendar sees a US inflation reading. The UK corporate calendar on Wednesday has full-year results from pub operator Fuller, Smith & Turner. Contributed by AllianceNews
Mint
10-06-2025
- Business
- Mint
Bellway Raises UK Home Sales Guidance After Rise in Deals
Bellway Plc lifted its guidance on home sales after a period of 'improved affordability' supported an uptick in deals over the past few months. The builder said it expected to sell between 8,600 and 8,700 homes in the year through July 2025, up from previous guidance of 'at least 8,500', according to a statement Tuesday. That would be an improvement on the roughly 7,600 homes delivered in the same period a year earlier, but still well below the 10,000-plus homes completed in its final financial year before Covid-19 struck. 'We are on track to deliver strong growth in volume output and profits,' Chief Executive Officer Jason Honeyman said in the statement. 'We have a healthy forward order book and outlet opening programme, which will serve as a platform for further growth.' Housebuilders have been under pressure from higher mortgage costs, which have impacted demand. UK Deputy Prime Minister Angela Rayner said last month that a government target to build 1.5 million homes over five years was 'stretching.' But Bellway's focus on mid-market homes has made it more accessible to a wider group of buyers during the downturn. The company's larger share of apartments compared with rival builders may prove advantageous as higher mortgage rates and the cost-of-living crisis push buyers toward smaller homes. Bellway's private reservation rate rose 5.9% to an average of 161 per week between Feb. 1 and June 1, compared with 152 in the same period a year earlier. The company said it expects the overall average selling price of its homes to be around £315,000 in the year through July, up from about £308,000 a year earlier.
