House builders are on shaky ground across UK stock markets after Bellway revealed it expects to build 31pc fewer homes next year.
Taylor Wimpey, Barratt Developments, and Berkeley Group are all trading in the red after Bellway said it expects to deliver about 7,500 completions in 2024, compared to 10,945 this year.
It also cut its expectations for its overall average selling price by 4.9pc to around £295,000.
Bellway said revenues fell 3.7pc to £3.4bn in 2023, while underlying pre-tax profits fell 18.1pc to £532.6m.
Its shares slumped as much as 4.2pc in early trading, extending a decline of more than 10pc in the past six months. The house building sector has slumped as much as 1.7pc today.
Bellway said it was a “resilient” performance, but added it is a “changing market”.
Group chief executive Jason Honeyman said: “The stubborn inflationary environment and resulting increase in mortgage interest rates over the last year continues to impact affordability and customer demand.
“While current trading is challenging, we have been encouraged by the more recent fall in UK consumer price inflation.
“If this trend continues, there are grounds for cautious optimism that this could lead to a moderation in mortgage interest rates and an improvement in customer demand.”
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https://news.google.com/rss/articles/CBMia2h0dHBzOi8vd3d3LnRlbGVncmFwaC5jby51ay9idXNpbmVzcy8yMDIzLzEwLzE3L2Z0c2UtMTAwLW1hcmtldHMtbmV3cy1saXZlLXdhZ2VzLWludGVyZXN0LXJhdGVzLXVrLWVjb25vbXkv0gEA?oc=5
2023-10-17 09:15:16Z
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