Bellway has put aside £30.5m to resolve a structural building-safety concern at a 12-year-old London housing block – and mentioned it’s investigating whether or not comparable points exist with different buildings.

Within the firm’s preliminary outcomes for the 12 months to 31 July, it put aside £49.6m for “legacy building-safety enhancements”. Bellway had whole distinctive prices of £99.6m, together with finance prices, however these had been countered by a £50m sum recovered in relation to “a number of websites”.

The prices embody a £30.5m provision to handle structural defects regarding an “remoted design concern recognized with the reinforced-concrete body of an residence scheme constructed 12 years in the past in Greenwich, London”.

The report from group finance director Keith Adey says: “We intend to hunt recoveries from the entities concerned within the improvement of the Greenwich residence scheme, nonetheless, given the complexity of this course of, these haven’t but been recognised as an asset.”

Adey provides: “The group is finishing up a assessment of different buildings constructed by, or on behalf of, Bellway, the place the identical third events chargeable for the design of the body within the Greenwich improvement have been concerned.

“To this point, no different comparable design points with reinforced-concrete frames have been recognized.”

Bellway signed the federal government’s developer remediation contract earlier this 12 months, to pay for building-safety fixes for legacy points recognized within the wake of the 2017 Grenfell Tower blaze. The entire quantity that the agency has put aside for legacy buildings in England, Scotland and Wales since 2013 is £613.3m, of which £508.2m remained on the finish of July.

The corporate anticipates spending between £60m and £80m on building-safety points within the present monetary 12 months.

Within the 12 months to the top of July, Bellway’s statutory pre-tax revenue rose by 58.8 per cent, from £304.2m to £483m. Nevertheless, this was because of the firm writing off £346m for legacy building-safety prices in its earlier monetary 12 months.

Bellway’s underlying pre-tax revenue fell by 18.1 per cent to £532.6m, from £650.4m in 2022. The agency, which in August warned of diminished earnings, mentioned the figures had been “in step with our expectations”.

Turnover for the previous monetary 12 months was £3.4bn, down 3.7 per cent from the earlier determine of £3.53bn.

The corporate famous that demand for housing “continues to be affected by mortgage-affordability constraints”, with reservations down on the earlier 12 months.

Adey mentioned the corporate had continued its freeze on recruitment and that the closure of two working divisions was anticipated to result in an total discount in employees headcount of 5 per cent.

However chair John Tutte mentioned the agency had delivered a “resilient efficiency” regardless of difficult buying and selling situations.

Bellway mentioned the “long-term fundamentals of the UK housebuilding trade stay engaging”. He added that “the group’s stability sheet and operational strengths, mixed with the depth of our land financial institution, present a superb platform for Bellway to capitalise on future progress alternatives once they come up”.

Group chief government Jason Honeyman commented: “The depth of our land financial institution and sturdy stability sheet present ongoing strategic flexibility and scope for outlet progress within the 12 months forward. However the near-term market challenges, Bellway stays very well-placed to capitalise on future progress alternatives and to proceed creating long-term worth for all our stakeholders.”