Bellway stacks up half year profit, divi

Housebuilder Bellway nearly doubled half yearly profit as it increased the number of homes sold at a higher average price after a particularly strong performance from its southern divisions.

The Newcastle-based group said pre-tax profit rose surged to £40.6m in the half year ended 31 January compared to £24m for the same period a year earlier. Turnover climbed to £458.6m from £407.9m previously. Underlining its confidence in future growth, Bellway announced an interim dividend 6p, up from 3.7p in 2011.

Bellway completed the sale of 2,455 homes, up 5.3%, and achieved an average price of £182,753, up from £168,428 a year earlier following changes in geographical and product mix, it said. Its forward order book at 11 March stood at £498.5m compared to £479.2m a year before.

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Its southern divisions completed the sale of 1,282 homes compared to 1,146 in 2011 compared to completions from its northern divisions, which remained little changed at 1,173 homes from 1,186 before.

The housebuilder the average selling price in the north rose by 4.3% to £151,468m, primarily due to the increase in more traditional two-storey family housing in this region. In the south the average selling price climbed 9.8% to £211,378 with demand strongest within the Greater London boroughs.

Bellway said it continues to invest in higher value developments and, whilst these developments typically have an average selling price in excess of £250,000, they remain affordable in the context of the London market.

Commenting on the results, chairman Howard Dawe said, "Whilst uncertainties in the wider economy and the threat of unemployment continue, there remains an underlying demand for our homes and, as a consequence, visitor levels since the start of the calendar year have followed their usual upward seasonal trend."

cj