11th Dec 2015 07:37
LONDON (Alliance News) - Housebuilder Bellway PLC on Friday continued the positive newsflow from the sector as it said its reservation rate improved in the first months of its new financial year and that its total completions and average selling price are both set to rise in the full year.
The FTSE 250-listed group said its reservation rate in the 18 weeks from August 1 to December 6 has increased 12% year-on-year to 165 homes per week. The strong start to the year led the group to forecast its total completions for the full year to the end of July 2016 will rise around 10% year-on-year, from the 7,752 it completed in its 2015 financial year.
Bellway added the average price of those completions will also rise by around 10%, meaning it expects its operating margin for the current financial year to increase about 21%, contributing to another anticipated improvement in its return on capital employed.
"The group is committed to its strategy of creating shareholder value through disciplined volume growth and increasing the supply of much needed new homes," said Chief Executive Ted Ayres.
"The group continues to trade well and is favourably positioned to continue delivering volume growth, whilst maintaining a strong focus on return on capital employed," Ayres added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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