Bellway expects full year volume growth, increased profit

Housebuilder Bellway reported an increase in completed home sales and average selling price and said it is well placed to deliver further growth in profit.

Housebuilder Bellway reported an increase in completed home sales and average selling price and said it is well placed to deliver further growth in profit.

The group completed the sale of 2,597 homes the six months ended January 31st 2013 compared to 2,455 the same time a year earlier. The average selling price of homes sold increased by 2.3% to £187,000, following changes in product and geographic mix.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

Bellway said it expects that the average selling price will continue its upward trend for the remainder of this financial year.

Operating margins continue to improve, mostly due to the increasing proportion of completions from higher margin land, acquired since the downturn.

Advertisement - Article continues below

As a result, operating margins are expected to exceed 12.5% for the first six months of the year versus 10.1% before and will continue to improve throughout the rest of the financial year.

The house builder said demand for new homes remains resilient, with an average of 97 reservations per week since August 1st, up from 89 in 2012.

The order book at January 31st 2013 stood at 2,467 units compared to 2,359 in 2012, representing a value of £453m.

"With 82% of the full year target now secure, the board expects to achieve volume growth of around 5% in the current financial year, assuming reservations over the spring selling season follow their usual upward trend," said Bellway.

"The group is therefore well placed to deliver further growth in profit and shareholder return through its continuing strategy of growth in volume, average selling price and operating margin."




Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020

Most Popular

Global Economy

Helicopter money is coming very soon – but what form will it take?

We’re heading for a”new normal”, says John Stepek – fiscal stimulus, and lots of it. Here’s what that really means.
16 Mar 2020

The helicopters are being warmed up – we might be closer to a bottom than you think

Governments are starting to act to bolster their economies against coronavirus. But, asks John Stepek, will throwing money at the problem slow the mar…
17 Mar 2020
Investment trusts

Now could be a good time to bag an investment bargain

We like investment trusts here at MoneyWeek. And they can be even better during a market crash.
16 Mar 2020

Why investors shouldn’t overlook Europe

SPONSORED CONTENT - Ollie Beckett, manager of the TR European Growth Trust, tackles investor questions around Europe’s economic outlook and the conseq…
6 Nov 2019