BUSINESS LIVE: TUI returns to profit

Bellway has warned it will build fewer homes in the current fiscal year as the housebuilder faces further margin pressures amid a slowing housing market.

The group built 10,945 homes in the fiscal year ended 31 July, slightly down from the guidance of 11,000 units.

Bellway said it expected its underlying operating margin for its last financial year to be around 16 per cent, down from 18.5 per cent in the year-ago period, hurt by high build costs and overhead inflation.

‘The backdrop of macroeconomic uncertainty and cost of living pressures affected consumer demand during the year and, given affordability remains constrained by higher mortgage interest rates, underlying trading conditions are likely to remain challenging in the near term,’ Bellway chief executive Jason Honeyman said.

Shares in Italy’s largest banks slumped after the country’s government slapped a surprise windfall tax on the industry.

US banks, meanwhile, were also knocked by a series of downgrades from Moody’s.

The credit rating agency warned the sector could find its profits under pressure from an economic slowdown and the effects of higher interest rates.

TUI has posted its first post-pandemic quarterly profit after the tour group cashed in on a rebound in travel demand, with its boss pledging to grow profitability ‘significantly’ going forward.

The tour group posted underlying earnings before interest and tax of €169million (£145.2million) for the quarter, as well as €5.3billion in revenue.

‘We are investing today to continue to significantly grow profitably in the future,’ said TUI chief executive Sebastian Ebel.