15th Jun 2021 11:32
(Alliance News) - Bellway PLC on Tuesday reported strong forward sales and record land investments as UK house prices soar.
The Newcastle, England-based housebuilder reported a "robust" forward sales position, with its order book rising by 21% from a year before to GBP1.89 billion as of early June, representing 6,763 homes - the highest number in at least two years. During the period from February 1 to June 6, an average of 239 reservations were made per week, up 51% from a year before.
Despite a reduced number of work-in-progress properties from January 31, Bellway still expects to complete around 10,000 homes this year, bringing the total back in line with pre-Covid levels.
Bellway continued to investments in land, contracting a record 15,982 plots worth GBP891 million between August 1, 2020 and June 6 this year, with an expected average gross margin of around 23%. In comparison, the company contracted for 10,079 plots financial 2020. Bellway said it plans to acquire a further 9,000 plots.
The company said it is in a resilient position with net cash of GBP408 million, swung from net debt of GBP157 million a year before and net debt of GBP261 million two years ago.
Chief Executive Jason Honeyman, said: "We have continued our front-footed approach to land acquisition, making a record investment in new sites, thereby enabling us to grow sales outlets and meet the ongoing demand for new homes in the years ahead. This disciplined investment approach, together with our strong balance sheet, ensures that Bellway is in a good position to continue its long-term growth strategy."
Bellway shares were trading down 0.2% at 3,473.00 pence each in London on Tuesday morning.
By Scarlett Butler; [email protected]
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