7th Feb 2020 09:11
(Alliance News) - Bellway PLC on Friday said it expects to report mid-single-digit revenue growth in the first half of its current financial year amid improved demand for private homes.
For the six months to January 31, the FTSE 250 housebuilder said it expects revenue to be GBP1.53 billion, up 4% from GBP1.47 billion reported the year prior, as housing completions rose 6.3% to 5,321 from 5,007 year-on-year.
The average selling price of houses fell marginally, however, to GBP286,500 from GBP292,832, reflecting a 2.5% decrease.
The Newcastle-upon-Tyne-headquartered company said it made a significant investment in land, with 7,0005 plots contracted on sites, compared to 5,980 plots a year before.
As at the end of January, Bellway said it had a "robust" forward sales position, with the value of its forward order book at GBP1.16 billion.
"Bellway continues to increase the supply of affordably priced, good value new homes, following another successful trading period in which it has achieved further volume growth," said Bellway Chair Paul Hampden-Smith.
"Looking forward, a robust balance sheet, operational capacity for expansion and a strong order book should ensure that the group is well placed to deliver additional, long term volume growth," added Hampden-Smith.
The company said it remained mindful of the introduction of the Help-to-Buy price caps and is therefore ensuring that new outlets are able to offer an affordable product mix to customers. The price caps for the Help-to-Buy scheme range from GBP186,100 in the north east of England to GBP600,000 in London.
The stock was trading 1.5% lower at 4,003.00 pence a share on Friday morning in London.
By Ife Taiwo; [email protected]
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