StockMarketWire.com - Bellway said Tuesday annual profits and revenue grew double digits on strong demand for new housing, though the company warned that Brexit could weigh on the busy spring selling season.

For the 12 months to 31 July, profit before tax rose 14.3% to £641.1m and revenue increased 15.6% to almost £2.96bn, well above the £2.56bn from a year earlier. This was in line with the company's guidance released in August.

The gross margin fell to 25.5% for the year, from 25.9% compared to the prior financial year, driven by the reduced income following the sale of freehold reversion interests.

The company's sales were also boosted by the Help-to-Buy scheme, particularly in London, where affordability was most constrained, the company said. Help-to-Buy accounted for 39% of completions.

Bellway sold 10,307 new residential dwellings, an increase of 6.9% from 9,644 homes sold last year.

Robust demand for affordably priced homes supported a 2.9% increase in the reservation to 176 a week in the period, up from 171 a week from a year earlier.

Forward sales were strong as the value of the order book was 7.9% ahead at £1.47bn, compared with £1.36bn last year.

'The Board are mindful that the forthcoming exit from the EU in March could pose a threat to consumer confidence during the busy spring selling season,' said Jason Honeyman, CEO.

'Assuming that market conditions remain unchanged, however, this healthy position should enable Bellway to further increase output in the year ahead.' Story provided by StockMarketWire.com